Stores Make Call on Selling Synthetic

20120611-NEWS--0001-NAT-CCI-CD_-- 6/8/2012 5:53 PM Page 1

www.crainsdetroit.com Vol. 28, No. 24 JUNE 11 – 17, 2012 $2 a copy; $59 a year

Page 3 Battery maker A123 has growth plan – and doubters Compuware CRAIN’S MICHIGAN BUSINESS Chicago design show readies IPO inspires West Michigan, Page 8 for Covisint GLENN TRIEST World Watch: Karam Bahnam makes sure his gas station customers in Novi know he decided not to sell products like K2 and Spice. Spotlight on Paul: Hot market is trigger Michigan biz in Taiwan, Page 12 BY TOM HENDERSON crazy. It’s a hot market for cloud- Stores make call on CRAIN’S DETROIT BUSINESS based IPOs, and Covisint was in the cloud before the cloud was Crain’s Lists Compuware Corp. has engaged ever a term,” said Compuware an underwriter for an initial pub- CEO Bob Paul. Covisint provides Largest Michigan banks, lic offering of its Covisint LLC busi- secure, Web- ness unit, marking the first based ex- Page 14 selling synthetic pot Southeast Michigan tech compa- change of data ny IPO planned since 1996. for large com- Largest auto dealers, The computer services compa- panies, health Some saw profits, others red flags ny hopes to raise $200 million by care organiza- Page 20 taking Covisint public by the end tions and units BY SHERRI WELCH could sell for $5 to $50. of the current fiscal year, which of government. CRAIN’S DETROIT BUSINESS But once he did some research ends March 31, and selling 20 per- “It’s really This Just In and talked with his store managers cent of its shares to the public. exciting for me Two years ago, Karam Bahnam and primary wholesaler, The H.T. While all the media attention to be able to do Mahle Industries to expand began to get a surge of customer Hackney Co. in Knoxville, Tenn., he for months has been on Face- Paul a tech IPO out requests at his four metro Detroit decided not to sell it. book’s ultimately disappointing of Detroit,” Paul said. “It’s great after deal for adjoining site gas stations for an “incense” called “The fact that national whole- IPO in May, other recent tech for the region. I can’t even think K2 or Spice. Germany-based Mahle In- IPOs have been far more success- of the last tech IPO here.” Seeing the potential for new See Synthetic pot, Page 22 dustries Inc. will expand its ful, particularly those in Web- An IPO by Covisint would be sales, Bahnam — whose gas station Farmington Hills research based or so-called cloud comput- the first by a tech company in minimarts in Commerce Township, and development center, fol- ing, which is Covisint’s forte. Southeast Michigan since Aug. Novi, New Hudson and Howell do lowing the purchase of the Those high-flying IPOs (See sto- 12, 1997, when Troy-based Syntel business as Gas 2 Go — began former Nailco Group Inc. oper- ry, Page 24) helped convince the Inc. went public, and the second checking into the product. ation next door. management at Compuware since Plymouth-based Rofin-Sinar At first, he was enticed by The acquisition of the site, (Nasdaq: CPWR) that the time is Technologies Inc. went public on the 400 percent to 500 percent at 23200 Haggerty Road, adds right to revive a spinoff of fast- Sept. 26, 1996, said David Sower- profit margin promised by dis- 50,000 square feet of office growing Covisint. tributors, who said the products See Covisint, Page 25 space to Mahle’s North NATHAN SKID/CDB “The IPO market has been American location, as well as additional warehouse space. Mahle will move its operations in Novi to the Farming- ton Hills location. By 2013, Rock Ventures, employees raise $1.2M for riverfront the company expects to have more than 350 employees on BY NANCY KAFFER “It clearly exceeded our expectations,” said velopmental and operational efforts. the fully occupied campus, a CRAIN’S DETROIT BUSINESS Cullen, who also is chair of “We did everything from having groups press release said. the conservancy’s board of come together to buy bricks and benches to auc- The company will invest A combined fundraising effort by Rock Ven- directors. tioning parking spaces, all kinds of creative $11 million in the move. tures LLC and its employees has resulted in a Donors bought bricks and things to get people engaged financially,” Mahle’s products include en- $1.2 million gift to the Detroit Riverfront Conser- benches that will be etched Cullen said. “But at the event itself, we expect gine components such as pis- vancy, Rock Ventures COO Matt Cullen told with their names and placed to have thousands of our folks down there to ton systems and cylinder Crain’s last week. along the riverfront. The connect to the riverfront. components. Rock Ventures — an umbrella organization etching will be complete by “It’s great to support things financially, but Mahle Industries is a sub- for companies owned by Dan Gilbert, including June 21, when the company the thing I think distinguishes it a lot is to con- sidiary of the Stuttgart, Ger- Quicken Loans Inc. — made a corporate gift of $1 will hold a pre-Detroit River nect people.” many-based Mahle Group. million. Employees of the companies donated Days event to celebrate the The event will be attended by employees and Cullen — Ryan Kelly $100,000 in about three weeks, an amount that fundraising effort. The mon- Rock matched, Cullen said. ey will be used as part of the conservancy’s de- See Riverfront, Page 22

“A non-MBA KEYNOTE SPEAKER Manoj Bhargava June 26 approach to DETROIT GOLF CLUB CEO of Living Essentials LLC To register, please visit growing a The creator of www.crainsdetroit.com/events business” Five-Hour Energy or call 313.446.0300 NEWSPAPER 20120611-NEWS--0001-NAT-CCI-CD_-- 6/8/2012 5:59 PM Page 1

CRAIN’S MICHIGAN BUSINESS A special edition of

Inside Michigan Chicago design Compuware show inspires West Michigan, Page 8 readies IPO

Averting layoffs: Bills would help firms keep employees, Page 11 for Covisint GLENN TRIEST World Watch: Karam Bahnam makes sure his gas station customers in Novi know he decided not to sell products like K2 and Spice. Spotlight on Paul: Hot market is trigger Michigan biz in Taiwan, Page 12 BY TOM HENDERSON crazy. It’s a hot market for cloud- Stores make call on CRAIN’S DETROIT BUSINESS based IPOs, and Covisint was in the cloud before the cloud was Crain’s Lists Compuware Corp. has engaged ever a term,” said Compuware an underwriter for an initial pub- CEO Bob Paul. Covisint provides Largest Michigan banks, lic offering of its Covisint LLC busi- secure, Web- ness unit, marking the first based ex- Page 14 selling synthetic pot Southeast Michigan tech compa- change of data ny IPO planned since 1996. for large com- Largest auto dealers, The computer services compa- panies, health Some saw profits, others red flags ny hopes to raise $200 million by care organiza- Page 20 taking Covisint public by the end tions and units BY SHERRI WELCH could sell for $5 to $50. of the current fiscal year, which of government. CRAIN’S DETROIT BUSINESS But once he did some research ends March 31, and selling 20 per- “It’s really This Just In and talked with his store managers cent of its shares to the public. exciting for me Two years ago, Karam Bahnam and primary wholesaler, The H.T. While all the media attention to be able to do Mahle Industries to expand began to get a surge of customer Hackney Co. in Knoxville, Tenn., he for months has been on Face- Paul a tech IPO out requests at his four metro Detroit decided not to sell it. book’s ultimately disappointing of Detroit,” Paul said. “It’s great after deal for adjoining site gas stations for an “incense” called “The fact that national whole- IPO in May, other recent tech for the region. I can’t even think K2 or Spice. Germany-based Mahle In- IPOs have been far more success- of the last tech IPO here.” Seeing the potential for new See Synthetic pot, Page 22 dustries Inc. will expand its ful, particularly those in Web- An IPO by Covisint would be sales, Bahnam — whose gas station Farmington Hills research based or so-called cloud comput- the first by a tech company in minimarts in Commerce Township, and development center, fol- ing, which is Covisint’s forte. Southeast Michigan since Aug. Novi, New Hudson and Howell do lowing the purchase of the Those high-flying IPOs (See sto- 12, 1997, when Troy-based Syntel business as Gas 2 Go — began former Nailco Group Inc. oper- ry, Page 24) helped convince the Inc. went public, and the second checking into the product. ation next door. management at Compuware since Plymouth-based Rofin-Sinar At first, he was enticed by The acquisition of the site, (Nasdaq: CPWR) that the time is Technologies Inc. went public on the 400 percent to 500 percent at 23200 Haggerty Road, adds right to revive a spinoff of fast- Sept. 26, 1996, said David Sower- profit margin promised by dis- 50,000 square feet of office growing Covisint. tributors, who said the products See Covisint, Page 25 space to Mahle’s North NATHAN SKID/CDB “The IPO market has been American location, as well as additional warehouse space. Mahle will move its operations in Novi to the Farming- ton Hills location. By 2013, Rock Ventures, employees raise $1.2M for riverfront the company expects to have more than 350 employees on BY NANCY KAFFER “It clearly exceeded our expectations,” said velopmental and operational efforts. the fully occupied campus, a CRAIN’S DETROIT BUSINESS Cullen, who also is chair of “We did everything from having groups press release said. the conservancy’s board of come together to buy bricks and benches to auc- The company will invest A combined fundraising effort by Rock Ven- directors. tioning parking spaces, all kinds of creative $11 million in the move. tures LLC and its employees has resulted in a Donors bought bricks and things to get people engaged financially,” Mahle’s products include en- $1.2 million gift to the Detroit Riverfront Conser- benches that will be etched Cullen said. “But at the event itself, we expect gine components such as pis- vancy, Rock Ventures COO Matt Cullen told with their names and placed to have thousands of our folks down there to ton systems and cylinder Crain’s last week. along the riverfront. The connect to the riverfront. components. Rock Ventures — an umbrella organization etching will be complete by “It’s great to support things financially, but Mahle Industries is a sub- for companies owned by Dan Gilbert, including June 21, when the company the thing I think distinguishes it a lot is to con- sidiary of the Stuttgart, Ger- Quicken Loans Inc. — made a corporate gift of $1 will hold a pre-Detroit River nect people.” many-based Mahle Group. million. Employees of the companies donated Days event to celebrate the The event will be attended by employees and Cullen — Ryan Kelly $100,000 in about three weeks, an amount that fundraising effort. The mon- Rock matched, Cullen said. ey will be used as part of the conservancy’s de- See Riverfront, Page 22

KEYNOTE SPEAKER 1 “A non-MBA Manoj Bhargava June 26 approach to DETROIT GOLF CLUB CEO of Living Essentials LLC To register, please visit growing a The creator of www.crainsdetroit.com/events business” Five-Hour Energy or call 313.446.0300 NEWSPAPER 71486 02858 0 20120611-NEWS--0002-NAT-CCI-CD_-- 6/8/2012 4:57 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS June 11, 2012

MICHIGAN BRIEFS CORRECTIONS A story on Page 3 of the DTE gives thumbs-up to growth May 28 issue, “DTE meter plan hits interference,” of wind-generated power Car ferry’s problem isn’t the waves, but EPA pothole should have said that 96 per- DTE Energy Co. plans to install cent of monthly bills were nearly 140 wind turbines in Michi- The S.S. Badger car ferry hadn’t even completed Environmental groups contend the ash contains read by meter readers until gan’s Thumb area by 2014, with the its first trip across Lake Michigan, from Ludington toxic chemicals that contaminate the water and two years ago, not that 96 first half going in by the end of to Manitowoc, Wis., on May 24 — its first day in op- threaten fish and, ultimately, humans. The trace percent of bills were esti- 2012. General Electric Co. said it re- eration for the season — when it ran into a sandbar. amounts of those chemicals are too small to harm mated. By installing more ceived contracts to supply the De- It took two hours for a tugboat to help the Badger the environment, responded Robert Manglitz, presi- than 760,000 wireless smart troit-based utility company with finish the crossing, making a four-hour trip seven dent and part owner of Lake Michigan Carferry. meters in Southeast Michi- 137 wind turbines for projects in hours for the 300 passengers. Each year, the Badger pumps about $25 million gan, the read rate has in- Huron and Sanilac counties. And did anyone mention that this might be the into the area economy and $15 million to $20 million creased to more than 99 per- The turbines’ capacity of 220 car ferry’s last season, if the U.S. Environmental Pro- into Manitowoc’s, Manglitz said. The ship employs cent, which lowers the megawatts is enough to supply tection Agency rules that the Badger no longer can about 200 in season and 30-40 in the off-season. It number of estimated bills. electricity to a city of about 100,000 dump coal ash into Lake Michigan? draws about 140,000 tourists each year and produces A story on Page 1 of the people, said DTE spokesman Scott Last month, Crain’s Michigan Business reported 500 indirect jobs in Mason County, a West Shore Com- June 4 edition should have Simons. DTE is spending about in its weekly email that the EPA has given the ship’s munity College study concluded in 2003. said Brembo SpA was invest- $500 million in the project. Resi- owners until Dec. 15 to stop dumping coal ash into Manglitz’s company is conducting an engineering ing 100 million euro ($125 dential customers have been pay- the lake. Lake Michigan Carferry, the Ludington com- study into converting the ship’s boilers to liquefied million in U.S. dollars) glob- ing a $3-per-month surcharge to pany that owns the ship, has asked the EPA for a natural gas. Conversion would cost about $8 mil- ally over the next few years support renewable energy projects. five-year extension to continue dumping coal ash. lion, Manglitz estimated. to expand the company. Commercial customers pay a high- A story on Page 1 of the er fee that depends on their size. Taj Malls and not mauls of America. provide a purchase price, MLive of a C in certain classes and an June 4 edition should have This isn’t DTE’s only wind pro- In West Michigan, the first en- reported. CBRE Vice President overall 2.5 GPA will be admitted to said Davis & Davis Interior De- ject in Michigan. Chicago-based In- closed mall was Rogers Plaza in Robert Lotzar told MLive that the Western’s bachelor of business ad- sign of Farmington Hills de- venergy LLC last week began com- the Grand Rapids suburb of new owners plan to improve the ministration program. signed a new headquarters mercial operations at Michigan’s Wyoming. When it opened in the mall rather than bulldoze it. The board of directors of the for Lee Steel. largest wind farm in Gratiot Coun- early 1960s, tenants included fa- U.S. Chamber of Commerce last week The incorrect Twitter ty. DTE owns 69 of the 133 turbines miliar names such as Montgomery elected Amway Corp. Steve Van An- handle was used with a and Invenergy the rest. DTE is Ward, Kresge, Kroger, S&H — re- MICH-CELLANEOUS del its vice chairman for a one- Devin Scillian tweet cited on buying the power under a 20-year member green stamps? Today, the Grand Rapids Community College year term. Van Andel served a Page M7 of the June 4 edi- contract. retailers have changed. And now, one-year term as chairman of the and Western Michigan University last tion. The correct handle is so has the owner. chamber in 2001-02. @DevinScillian. Last week, CBRE/Grand Rapids week completed work on a program A story about Gretchen Grand Rapids mall buys time said San Antonio-based Sun Valley that would allow students to trans- Find business news from Valade on Page M22 of the Ltd. purchased the 400,000-square- fer easily from GRCC to Western’s around the state at crainsdetroit to attempt return to heyday June 4 issue gave an incor- foot mall. CBRE, which has man- Haworth College of Business. GRCC .com/crainsmichiganbusiness. rect story credit. The story If you live in a community punc- aged what’s now called Rogers said the agreement guarantees that Sign up for Crain's Michigan was written by Nathan tuated by malls, it’s hard to imagine Plaza Town Center since it went into students of the school who earn an Business e-newsletter at crains Skid. a day when they were considered receivership in 2009, declined to associate’s degree with a minimum detroit.com/emailsignup.

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If SEC, FINRA or state regulatory agencies Southfield | Sterling Heights | Lansing ever keep you up at night, this blog’s for you. Grand Rapids | Holland | Muskegon ComplianceCorner.WNJ.com 20120611-NEWS--0003-NAT-CCI-CD_-- 6/8/20125:50PMPage1 team,” saidCamMcCausland,a the officetoday. LaSalle. Thebrokersstartworkin vice presidentatJonesLang Plante MoranCresa,formerlya ciate oftransactionmanagementat LaSalle; and markets brokerageatJonesLang president andco-leaderofMichigan Moran Cresa,formerlyseniorvice action managementatPlante Holton leader atJonesLangLaSalle; president andMichiganmarket Cresa andformerlyexecutivevice ner Plante MoranCresaare troit officeforSouthfield-based industry. Cresa LLC Jones LangLaSalleto investor DavidFriedman. from competitors. International and theSouthfieldofficeof ker teamhasleft the Detroitarea,awell-knownbro- changing companies. with morethantwodozenbrokers cal commercialrealestatefirms, gered aflurryofchangesamonglo- local recruitingeffortshavetrig- June 11,2012 Friedman seen asgoodsign switches Brokers’ on themove ‘chess pieces’ Real estate resolved qualitycontrolissues. automotive solutionsgroup,saidthecompanyhas Jason Forcier,vicepresidentofA123SystemsInc.’s WWW T “It’s agreatadditionforour Leaving JonesLangLaSalle’sDe- The seriesofbrokermovesfrom A Dallas-basedfirmwillenter A nationalbankruptcyandtwo , nowapartneratPlanteMoran I WEEK HIS , nowvicepresidentoftrans- CRAIN’S DETROITBUSINESS B Y . is makingwavesinthe N CRAINSDETROIT has courted12brokers ANCY See RealEstate,Page21 Mike Carl Jones LangLaSalle based realestate ington Hills- censed toFarm- Frank mark Knight a former associated with ing upbrokers Detroit bypick- Inc. Mohr Partners K @ AFFER Dallas-based , seniorasso- Plante Moran has entered Ronald Gant- office li- Colliers New- Erica , . KENNY CORBIN COM mutuel horseracingin1933. 1935. Michiganlegalizedpari- on liveraceswastheleastsince since 1966,andthe$7.9millionbet ing lastyearisthelowestamount bined liveandsimulcastwager- ized simulcastbettingattracks. reached ayearafterthestatelegal- million in1997,whichwas 70 percent,sincethepeakof$474 gering of$329.6million,oralmost Board the on simulcastraces,accordingto tracks lastyearand$137million live racingatMichigan’sfour and gamblerstowinmoney there arefewerchancestorace few nightsaweek—meaning live racingherehasdwindledtoa bettors canwininMichigan,and up tosixtimesaslargewhat co-owner of Carlo, operationsmanagerand place intwoyears,”saidMike don’t change,I’mclosingthe ger pursestokeepownersand fering newbettingoptions. tied itsfatetostatelegislationof- bling attracksinotherstates,has by casinosandslotmachinegam- in wageringthathasbeenfueled try, besetbyastaggeringdecline Page 23 in 2010-11, performance Racetrack T The peakoflive-racebetting The totalof$145millioncom- That representsadeclineinwa- Bettors wagered$7.9millionon Other stateshaveracepurses Without newrevenueandbig- Michigan’s horseracingindus- ENUMBERS HE CRAIN’S DETROITBUSINESS ’s annualreport. Michigan GamingControl B e-newsletter. Signupatcrainsdetroit.com/getemail. twice amonthfortheHealthCare Extra Crain’s roundsupnewsfromthe health careindustry Healthy delivery 400 employeesoverthenextfourmonthsatits new products. ing formorenonautomotivecustomersand plants andisembarkingonarecoveryplancall- its workforcetopeaklevelsatmetroDetroit saidthecompanyplanstoreturn A123 officials about itsabilitytocontinueasagoingconcern. rities andExchangeCommission A123’s growthplan hasitsdoubters Y Northville Downs B Last month, The lithium-ionbatterymakerplanstohire But inaninterviewwith ILL S close. tracks could four remaining all ofthestate’s where, someor moving else- riders from HEA “If things CRAIN’S DETROITBUSINESS B A123 SystemsInc. Y D . USTIN A bettorwatcheshisraceonamonitorinthegrandstandatHazelPark. Course inLivonia,closed1998. Downs, closedin2007. Raceway closed in2008. Mount PleasantMeadows near Flint,NorthvilleDownsand closed in2005. W claimed fourotherstatetracks: enough bettingtostayopen. 2010 becauseitdidn’tgenerate County’s HuronTownshipinlate Pinnacle RaceCourse decline stemsfromtheclosingof $170 millionin2010.Partofthe year to$145millionfromalmost wagering fell14.5percentlast $9.8 million. 19.4 percentto$7.9millionfrom 203 in2010,andwageringfelloff Michigan fellto161lastyearfrom was $443.1millionin1989. Still operatingare Ⅲ Ⅲ Ⅲ Ⅲ ALSH The downwardtrendhas Combined liveandsimulcast The numberofliveracedaysin Crain’s that ithaddoubts Saginaw HarnessRaceway, Jackson HarnessRaceway, told the RAIN Muskegon’s GreatLakes C Ladbroke DetroitRace , ’ Sports CreekRaceway S last week, D U.S. Secu- ETROIT horse tracksremaininginMichigan. Hazel ParkRacewayisoneoffour B USINESS Hazel Park . in Wayne product launcheswithfewerglitches. losses continuetogrowandcompetitorsexecute ability oftheWaltham,Mass.-basedcompanyas big question.Analystsquestionthelong-termvi- be tobecomeprofitable—orevensurviveisa customers willgetthecompanywhereitneedsto fore droppingtoitscurrent781. A123 employed1,020inSoutheastMichigan,be- transportation contracts.Atitspeaklastyear, landing strongpowergridandcommercial Livonia andRomulusplantsontheheelsof But whethertheplantoattractanewlineof Follow Crain’sstaffersbygrabbing Crain’s onTwitter week frombuyersinterestedin he recentlyhadthreecallsina ous equineorganizations. and localgovernmentsvari- would besplitamongthestate cent commission,andthemoney betting on. don’t knowwhichracethey’re pari-mutuel informationbut races inwhichbettorsgetcertain racing. It’sawaytowageronold gering onwhat’scalledinstant instant onlineorsmartphonewa- Horse RacingLawof1995toallow both houses,wouldamendthe in theagriculturecommitteesof ments wherethetracksare. purses andforthelocalgovern- would beearmarkedforlarger style games.Thenewrevenue slot machinesandothercasino- forms ofbettingattracks,butnot and Senatewouldlegalizenew Northville Downs’Carlosaid Tracks wouldcollecta15per- HB 5546andSB1075,currently Bills pendinginthestateHouse NATHAN SKID/CRAIN’SDETROITBUSINESS crainsdetroit.com/twitter. their handlesat See A123,Page24 See Racing,Page23

NATHAN SKID/CRAIN’S DETROIT BUSINESS odtc mk hp .22 Woodstock Smoke Shop . . 4 Sygnetics .5 Roncelli .1 Rock Ventures . 16 Residential Home Care .15, 17 Priority Health .3 Plante Moran Cresa .8 People Design .18 Oakwood Hospital and Medical Center .12 NSF International Northville Downs . 3 .21 Newmark Grubb Knight Frank .3 Mohr Partners . 11 Michigan Unemployment Insurance Agency .22 Michigan Food and Beverage Association .11 Michigan Chamber of Commerce . 18 Medical Imagineering . 1 Mahle Industries .25 Loomis Sayles Link Engineering . 4 Lasertec .13 .2 Lake Michigan Carferry .3 Jones Lang Lasalle Jems Technology .15 HoMedics . 12 .5 Hillside Productions . 15, Henry 18 Ford Health System .15 Henry Ford at Home .15 Health Net Connect .3 Hazel Park Raceway . .26 Guardian Alarm Great . 15 Lakes Caring .12 George P. Johnson Co. . . 12 General Motors .1 Gas 2 Go . 12 Ford Motor . 2 DTE Energy Dow . 12 Corning .12 Dow Chemical . 12 Domino’s Pizza .10 Diversified Data Services .1 Detroit Riverfront Conservancy Designvox .9 .8 Design West Michigan .15 Critical Signal Technologies .1 Covisint .1 Compuware .26 Comcast .3 Colliers International .21 CBRE .12 Belfor Holdings .22 Associated Food and Beverage Dealers . 12 Arden .12 Amway . 10 American Seating .22 A&B Liquor Store .3 A123 Systems week’s These companieshavesignificantmentioninthis EKO H E .26 WEEK ON THE WEB .26 RUMBLINGS .13 PEOPLE .7 OTHER VOICES . . 6 OPINION . .8 MARY KRAMER .6 LETTERS. .6 KEITH CRAIN. .21 CLASSIFIED ADS .19 CALENDAR .4 BANKRUPTCIES Company index Department index Page 15 reform, technology, its ownthrough Telemedicine comesinto Health CareExtra Crain’s DetroitBusiness : Page 3 20120611-NEWS--0004-NAT-CCI-CD_-- 6/8/2012 4:59 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS June 11, 2012 Cobo event aims to link vets with jobs

BY RYAN KELLY information you need to go win SPECIAL TO CRAIN’S DETROIT BUSINESS some,” Tarkowski said. “If you Many civilian work that information properly, Cobo Center will host a three-part “ you’re going to be successful.” event for veterans June 26 focused employers don’t Organizers expect the conference on jobs, small-business growth and to draw 6,000 to 10,000 people. About benefits. understand what 2,300 veterans have signed up. The event, which comprises the Veterans who can’t make it to National Veteran Small Business Con- these guys did in the Detroit can dial in from seven loca- ference and Expo, the VA for Vets Hir- tions outside Michigan, and the ing Fair and the VA Open House, will service ... being army will have an additional five be the first time the U.S. Department links from forts in New York, Ken- of Veterans Affairs holds a joint con- exactly what they’re tucky, Illinois, Missouri and ference. Kansas. The army locations were It is expected to bring up to 200 looking for. companies looking to fill 20,000 job ” picked based on future draw-down openings in a mix of private sector Mike Walcoff, VA coordinator expectations. and government positions. for Detroit The third feature of the confer- Detroit was chosen because of ence is an open house for veterans the region’s large population of un- ernment business. interested in knowing more about employed veterans, said Mary San- The event is set up to push inter- benefits such as the GI Bill, home tiago, director of the Veterans Em- action between small-business loan compensation and health ployment Services Office, a branch owners and procurement officers. treatments. of the VA. At last year’s conference, Organizers are stressing the im- Michigan has 30,000 unem- Rochester Hills-based Sygnetics portance of submitting résumés ployed veterans, and its 11.2 per- Inc. developed contacts at Dell Inc. early, so veterans can be paired cent veteran unemployment rate that led to installation contracts with companies at the beginning is 1.8 percentage points higher for 350,000 computers at VA cen- of the conference. Sign-up is at than the civilian population and ters across the U.S., CEO Tony vaforvets.va.gov. 2.9 percentage points higher than Tarkowski said. More information about the con- the national average, according to “They really teach you how to ference can be found at www.na- the Bureau of Labor and Statistics. go after contracts and give you the tionalveteransconference.com. Local companies participating include Link Engineering Co., Chrysler Group LLC, Campbell Ewald Co., DTE Energy Co. and Quicken Loans Inc. CATERING Link Engineering has openings in engineering and skilled trades, said Eva Schmidt, human re- “The Pig Roast was a big hit sources director at the company. and great end to the day. The overall national unemploy- Nothing but smiles from ment rate for veterans is down from last year by half a percentage ear to ear. Way beyond our point to 7.8 percent, although the expectations.” rate for Gulf War era two veterans, Bring morale up. which includes vets of - Philip Shelton - Tournament Director Afghanistan and Iraq, is up from About thirty stories. U.S. Amateur Disc Golf Championship 12.1 percent to 12.7 percent, or about 31,000 unemployed nation- Catering Food Service Management wide, according to the BLS. The conference includes inter- view and résumé coaching, which Celebrating more than 30 years of in part means translating military skills and vocabulary for employ- spectacular events. ers. “Many civilian employers don’t 248.608.0690 understand what these guys did in the service, despite what they did being exactly what they’re looking for,” said Mike Walcoff, the VA event coordinator for Detroit. Federal departments that plan to have a presence include the De- partment of Homeland Security, the THE MILLER LAW FIRM Internal Revenue Service, the Depart- a professional corporation ment of the Treasury and the Drug En- forcement Agency. Homeland Security, for example, wants to fill 800 border patrol positions with veterans, Santiago said. The procurement decision makers of the federal agencies also will be on site for small-business owners who want to learn to win gov- Thrills bring every group together. Your employees will all feel the exhilarating g-forces. The excitement of the water rides. And the powdered Our firm specializes in litigation: sugar of the funnel cakes. The very • Complex Commercial and Business BANKRUPTCIES things that make a group outing to • Shareholder and Partnership Cedar Point in Sandusky, Ohio unlike The following business filed for Chap- any other one. Visit cedarpoint.com/ • Automotive Supplier ter 11 protection in U.S. Bankruptcy group-sales or call 1-800-448-2428 • Class Actions Court in Detroit June 1-7. Under Chap- ter 11, a company files for reorganiza- to get your discounted tickets for • Employment tion. your corporate group outing today. • Family Law and Probate Litigation Downriver Athletic Club LLC, 14312 (248) 841-2200 Pennsylvania, Southgate, voluntary 950 West University Drive, Suite 300 Chapter 11. Assets and liabilities not available. millerlawpc.com Rochester, Michigan 48307 THRILLS CONNECT — Meghana Keshavan 20120611-NEWS--0005-NAT-CCI-CD_-- 6/8/2012 5:00 PM Page 1

June 11, 2012 CRAIN’S DETROIT BUSINESS Page 5 Settlement nears in Freedom Hill litigation; summer concerts in doubt

BY CHAD HALCOM timetable for the project and that it is not a CRAIN’S DETROIT BUSINESS prerequisite to reopening. Vicari, founder and CEO of Warren-based Hillside Productions Inc. and its owners Andiamo Restaurant Group and co-owner of could need to pony up about $1 million as Hillside, confirmed the company has reached soon as next week to get clear of the litiga- a settlement with Macomb County, but other tion surrounding Freedom Hill Amphithe- details about the new theater operation are atre in Sterling Heights and reopen it. still developing. Gary Roncelli, chairman of The Florine & J. Peter Ministrelli Cis Maisel Kellman Endowed Fund Macomb County Deputy Executive Mark Sterling Heights-based Roncelli Inc., was the Women’s Heart Center for Women’s Heart Health Deldin said Hillside co-owner Joseph Vicari other owner involved in the litigation. and some new investors “We are waiting on a last piece of the puz- Wayne & Joan Webber toured the shuttered con- zle, involving the ownership and lining up a Cardiac Progressive Care Center cert venue, which Hillside national promoter,” Vicari said. leases from the county, Vicari would not say whether that would last week to assess its con- involve renewing its licensing agreement dition and make the nec- with Live Nation or using another promot- essary preparations to re- er. The company will hold a meeting on open. those details this week. The tour came as a set- Hank Riberas, director of real estate and tlement neared in 2-year- business development for Roncelli, has said old litigation over pay- new investors have acquired a recent stake in Vicari ments due to concert Hillside and will be part of the revived theater promoter Live Nation Worldwide Inc. and Ma- operation, but he would not identify them. Suzanne & Herbert Tyner comb County. Hillside has said it would try Kevin Cassidy, vice president and secre- Center for Cardiovascular Interventions Dominic & Frances Moceri to assemble a partial 2012 summer concert tary of Fun Fest Productions Inc. and general Heart Rhythm Suite season for Freedom Hill, but Deldin said manager of Freedom Hill, said Vicari con- Debra & Max Ernst Cardiovascular that is unlikely. tinues as a co-owner of the concert manage- Center In Memory of Ellen Ernst Hillside was sued in U.S. District Court in ment company but Roncelli does not. Nei- Detroit in April 2010 by Live Nation for mon- ther Vicari nor Roncelli would comment on ey it said was owed for five concerts in 2009. Roncelli’s status with Hillside. Macomb County later joined the suit. Deldin said despite the impending settle- How can people In February, Live Nation was awarded ment, odds are long on even a limited summer $321,959 by U.S. District Judge Denise Page concert season coming together this year. Hood, who ruled the money needs to be paid “We knew it was going to be unrealistic to who never went when all the issues in the case are resolved. have a vibrant summer season here (this Macomb requested a default judgment of year),” he said. “Right now, we’re not real more than $1 million owed from past park- hopeful that there’s going to be a full or even ing fees and money paid to advertise at Free- a partial season. But that is not a condition to medical school dom Hill, but ended up agreeing to settle for of our agreement. And as long as they make $500,000. The settlement agreement needs to their payment and comply with the lease be signed off on by all parties by Monday or, terms, there is no minimum number of acts prevent heart attacks? attorneys said, the lawsuit resumes and a that are due us.” trial is set for July 24. Cassidy also said no new information is Hillside will also continue to operate Free- available yet on the summer season. Behind all of the innovations in heart care at Beaumont dom Hill under the terms of a previous lease Gerard Mantese, attorney for Scott Ron- and pay a minimum of $125,000 per year celli and president of Troy-based Mantese are people in our community. starting in 2013 out of parking fees, Deldin Honigman Rossman and Williamson PC, said said, along with a percentage of future ad- Gary Roncelli may be close to an agreement Their gifts allowed us to open the first women’s heart vertising revenue. with his brother Scott in negotiations on a center in Michigan. To pioneer a procedure – now used No concerts have been held at Freedom separate lawsuit over the management of around the world – to stop heart attacks while they are Hill since 2009, and Hillside announced it Roncelli Inc. that partly involves funds from was suspending concerts shortly after the a past Freedom Hill settlement. The Roncelli happening. Live Nation lawsuit was filed. brothers’ case awaits a settlement confer- The settlement calls for Hillside to pay for ence in Macomb County Circuit Court Through their generosity, we were able to purchase improvements to an electronic marquee at Thursday. leading-edge technology for earlier detection of heart the entrance — at an estimated cost of Chad Halcom: (313) 446-6796, problems. We are discovering minimally invasive pro- $100,000 — but Deldin said there is no [email protected]. Twitter: @chadhalcom cedures to repair and replace heart valves. And we are the only center in Michigan to treat atrial fi brillation robotically and treat aneurysms that were previously CRAIN’S EXPANDS COOL PLACES TO WORK inoperable. Crain’s Cool Places to Work awards return www.coolplacestoworkmi.com by June 15. Because of philanthropy, our Beaumont heart surgeons this year as Cool Places to Work in Michigan, Once registered, companies will be invited and cardiologists are able to provide all of us with the reflecting the expansion of the program from to participate in the surveys. Up to 400 covering businesses in Southeast Michigan to employees will be surveyed, depending on most advanced cardiovascular care in the world, so we businesses in the entire state. company size. never have to leave home. For the revamped program, The vetting process runs from Crain’s is working with Best June through August, with Most of all, these people prove that it doesn’t take a Companies Group of Harrisburg, honorees receiving notification at Pa., to manage the program. In the end of August. medical degree to save a life. All it takes is a heart. addition to the employer Businesses and nonprofits can questionnaire presented in the apply. Applicants must have a past, Best Companies will survey minimum of 15 employees working employees of participating companies. The combined, in Michigan and have been in weighted results of the two will business at least one year, among determine who qualifies for Cool other criteria. Places designation. Companies pay a fee based on A Not-for-Profi t Provider Best Companies supplies all company size to Best Companies to participating companies — cover survey costs. The cost ranges regardless of whether they win the Cool from $605 to $890 for online surveying, and Places recognition — with a Best Companies $735 to $1,630 for paper surveying. Group Employee Feedback Report based on Crain’s Detroit Business will feature the employee responses to the 72-question recognized companies in the Nov. 5 issue and survey. The report can help company recognize their success at a Dec. 4 event at Find out how you can save lives, too. If you would executives identify strengths and weaknesses Emagine Royal Oak. like to make a gift, please go to our website at in their company culture and practices. Program details and samples of the foundation.beaumont.edu or click on the code with To be considered for Cool Places to Work in employee surveys are available at Michigan, companies must register at www.coolplacestoworkmi.com. your phone. 20120611-NEWS--0006-NAT-CCI-CD_-- 6/8/2012 5:35 PM Page 1

Page 6 CRAIN’S DETROIT BUSINESS June 11, 2012 OPINION LETTERS Give vets, ex-cons Benefit corps give biz choice Editor: doms against free enterprise. Crain’s Detroit Business I have just read Sherri Welch’s Bob Lang welcomes letters to the editor. piece (“Bills’ implications worry Founder, All letters will be considered for Americans for Community Development business,” June 4) about opposi- publication, provided they are chance when hiring tion to the benefit corporation signed and do not defame bills in Michigan: House Bills 4615 individuals or organizations. FOIA doesn’t apply he push to hire military veterans, especially those from and Senate Bills 359 and 360. Letters may be edited for length Editor: recent U.S. wars in Afghanistan and Iraq, is growing, As the creator of the low-profit and clarity. with support from government agencies, Gov. Rick Sny- limited liability company, rele- Whether your recent editorial T Write: Editor, Crain’s Detroit “Claims association must release vant to which Michigan passed a der and private sector employers. Business, 1155 Gratiot Ave., data” (May 21) resulted from poor As Ryan Kelly reports on Page 4, law in 2009, I find the opposition to Detroit, MI 48207-2997. the benefit bill disturbing. The is- research or flawed logic, the re- Email: [email protected] TELL YOUR STORY governments and employers will sue is not one of need; the issue is grettable conclusions you reached present a hiring fair and small-busi- about choice. are inexcusable for any publica- On July 23, Crain’s will tion with the word “business” in publish a special report on ness expo for veterans June 26 at Like the L3C, the benefit options It gets to be a slippery slope its masthead. That article com- veterans in the workplace. Cobo Center. give those forming a business when you try to mandate some- If your business is veteran- thing that should reflect personal pletely miscasts the function of the Hiring veterans makes sense for more choices depending on their owned, has a specific plans. choice. “B Corp” status does not Michigan Catastrophic Claims As- program for hiring veterans employers; many vets gained valu- Corporate choice should not be really mandate good. It just says, sociation, Michigan’s Freedom of or you’re part of a nonprofit able skills during their tours of about legislating morality. I do from our perspective, here is what Information Act and the legitimate or government entity think we need to enforce the rules we consider the profile of a good business expectations of Michigan offering veteran-specific duty. But many veterans also have corporate citizen should look like. insurance companies and con- services, please send an disabilities acquired during ser- of the game — such as going after monopolies and oligopolies — but But if you disagree, don’t get B sumers. email with details to vice; some are among the homeless The MCCA neither directly bills Executive Editor Cindy that is strictly an economic issue. Corp certification, or don’t orga- consumers nor provides them ser- Goodaker at population, too. The “rules” of free enterprise say nize as a benefit corporation. [email protected]. At the same time, another seg- we should not permit monopolies It is up to the market to decide vice. Insurance companies are ment of the population deserves fo- or oligopolies, since they interfere how much value to place on the forced by law to pay for unlimited, lifetime personal injury protection cus: ex-offenders. JVS, the nonprofit devoted to employment with the economic freedom our certification or form of organization. L3Cs are very useful in some claims, and they bear the full and opportunities, honored businesspeople and clients last week at system supposedly embodies. En- forcing those rules means break- contexts, benefits in others. final responsibility for all such its annual Strictly Business luncheon. One honoree, a veteran ing up some companies that are It seems that we have forgotten claims. The MCCA provides rein- of both the military and the criminal justice system, got help doing a lot of good as part of the the basic premise of free enter- surance coverage for the upper from JVS in launching a successful catering business. As he need to keep the playing field lev- prise, which is about choice. layer of catastrophic loss, but then it also has the authority to assess and his wife attested, it was his second chance. el. But this is like any game: There Those that benefit from free enterprise are busy protecting their fief- See Letters, Page 7 Prisoner re-entry is a little-discussed but hugely important are rules. issue here, says Barbara Nurenberg, CEO of JVS. The population is concentrated from Pontiac south to Detroit, she said. Job training, counseling and family reunification support can help to reduce the chance of a parolee returning to prison. “It does pay off and makes a difference,” she said. It’s an is- TALK ON THE WEB sue — and an investment — for the private sector. From www.crainsdetroit.com Re: Weiser acquires Science Center is in such high demand for speak- Reader responses to stories and ing engagements. Really. bank debt to help reopen museum blogs that appeared on Crain’s What are racetracks’ odds? Beal website. Comments may be It would be nice if more schools edited for length and clarity. Horse racing has been fading in Michigan for more than a and more organizations would sup- Re: Fieger sued by ex-law partner decade. Should state government prop it up? port the Science Center — especially work is another story. I know of This should be a great spectator As a regulated business, horse racing will survive only if since we have so many industries many subcontractors who are in this state that require science- case. … People would pay to see it state rules change to give the state’s four remaining tracks struggling to get paid. Some are still based degrees. and the proceeds from the gate more options to legalize betting. The bills pending in Lansing waiting for work performed in could go to a charity that provides Andrea McIntire 2010. fall short of slot machines and casino-style games but would al- legal services to the poor. Peter Cavanaugh low online and smartphone betting on races. Timothy Dinan As with casino gaming, the state and local municipalities Re: Finding work on DPS program Re: Too much community service? Re: Tigers spend more on players where the tracks are located would also benefit. This is most impressive if the The rules apply to other people, Although casinos oppose expanding betting options at the numbers are true. I just have to but not to Kwame Kilpatrick. If the investment doesn’t work tracks, these additions seem to be an extension of the live bet- wonder how much (if any) of the Get Real Detroit out, it’s not this year where they’ll hurt in ticket sales. It’ll be next ting allowed now. $500 mil spent was legit versus doled out to cronies and friends. First he can’t make the $160 a year. Which could really hamstring But they may also simply prolong the inevitable. Four john md month and cried … when they the team for the next couple of tracks have already closed. Expanding the options seems a raised the monthly payment to years. gamble, too. Getting paid by the DPS for this $500. Now he is too busy because he padgettshcom KEITH CRAIN: Detroit seems to be spiraling downward I guess I don’t understand the of those entities. After grimmer picture than it No city this size has ever filed Meanwhile, Wayne County’s ex- city of Detroit. Elected officials — everyone agreed to the would have under ei- for bankruptcy. It’s bound to get a ecutive continues along as if there the mayor and City Council — consent resolution, why ther a consent resolu- lot of publicity that Southeast are no problems with his adminis- agreed to a consent agreement would you sue to get it tion or an emergency Michigan doesn’t need. tration, even after his own com- with the state. It looked as if things nullified? manager. Even the feds are reluctant to missioners voted to censure him. were going to be OK. It would appear that Bankruptcy is going hand over a check to Detroit. The Each day brings another embar- Then the city attorney gets into the city has a death to be ugly. But the federal transportation secretary rassing revelation. But he is obvi- ously hoping that other news will a bare-knuckle with the state, a wish. Or maybe some politicians seem to ig- showed up last week and snubbed dispute that threatens millions of people think bankrupt- nore the fact that this eclipse his problems to give him the business leadership of South- dollars in state aid to the city. cy is inevitable. train is running full cover so he can somehow survive east Michigan. Presented with a I haven’t looked at an org chart When there is no speed ahead toward a until the next election. Only time recently, but I can only assume more money, it elimi- very bad wreck. It looks great transit initiative, supported will tell. that the city’s top lawyer works for nates options and all the as if all the folks run- mainly by the private sector, the It sure is a fun time in Detroit. someone else — either the mayor grandstanding. That day is rapidly ning this city are quite content to feds still don’t trust Detroit and de- And you don’t have to worry that or the council. So the lawyer must approaching, and when it hap- simply rearrange the deck chairs mand a whole bunch of ridiculous it’s going to get worse. It’s just a be acting with the blessing of one pens, Detroit will be facing a much on the Titanic. documents. matter of time. 20120611-NEWS--0007-NAT-CCI-CD_-- 6/8/2012 5:01 PM Page 1

June 11, 2012 CRAIN’S DETROIT BUSINESS Page 7 OTHER VOICES: It’s time for renewed focus on fundraising

To celebrate their anniversary Ⅲ 90.8 percent said they expect- from their peers, yet peer-to-peer more likely than corporations and this year, GM Chairman Dan Ak- ed 2012 conditions for fundraising solicitation is the most effective foundations to continue giving erson and his wife, Karin, made a to be at least as good as in 2011, and fundraising tool; 77.01 percent re- year after to year. Those organiza- $1 million gift to Habitat for Hu- 50.57 percent said they expected ported that their organizations tions that shy away from seeking manity’s Leaders to ReBuild De- 2012 conditions to be “somewhat routinely used personal solicita- major gifts from individual donors troit initiative. A gift of that mag- better.” tion by staff members; and only — as 20 percent or more of our nitude could not have come at a However, another part of the 50.57 percent reported that their nonprofit organizations appear to more auspicious time, as it helps survey yielded a surprise: The organizations promoted planned be doing — may well be cutting build confidence and re-energize four fundraising tools most closely giving — estate gifts made by be- themselves off not only from local fundraising. associated with major individual quests and other means. much-needed funds but also, and Conditions for charitable donor giving had relatively low Major giving by individuals is perhaps more importantly, from a Julie Michael fundraising are improving, and use rates. critically important to a healthy source of financial sustainability. Montgomery Montgomery now may be the time for nonprof- Ⅲ 80.45 percent said their orga- and stable fundraising program. In Julie and Michael Montgomery its to become more aggressive percent said 2011 results were nizations sought annual personal many efforts, 60 percent to 70 per- are principals in Montgomery Con- about raising funds, judging from “about the same” as 2010. gifts from their board members; cent or more of total giving comes sulting Inc., a fundraising consult- the results of our survey of Ⅲ 62.07 percent said current con- 73.6 percent said their organiza- from the 10 percent or fewer of ing firm. Michael is also an adjunct fundraisers and other leaders from ditions for fundraising in their ar- tions’ board members and other donors who make major gifts. professor at Lawrence Technologi- nonprofit organizations across eas were “good” or “excellent.” volunteers personally solicit gifts Individual donors are also much cal University. Michigan. Among the highlights: Ⅲ 90.6 percent said their organizations’ 2011 fundraising results were at least as good as 2010, 54.6 percent described their organization’s 2011 results as “somewhat better” or “much better,” and 36 ͞nǇKǁho ǁants a LETTERS CONTINUED ■ From Page 6 healthieƌǁoƌŬfoƌce shoulĚ its member insurance companies (all companies providing automobile insurance in Michigan) with the ultimate costs for those losses. consiĚeƌ HealthPlus.͟ If the MCCA goes broke, insurance companies — not individual policy holders — are left holding the bag. If the Legislature had wanted a different system, it could have required the state of Michigan to put its full faith and credit behind the MCCA rather than the cumulative surplus of the private insurers serv- tĞǁĂŶƚĞĚĂŵŽƌĞŝŶƚĞƌĂĐƟǀĞŚĞĂůƚŚĐĂƌĞ ing Michigan consumers. ƉĂƌƚŶĞƌĨŽĐƵƐĞĚŽŶůŽŶŐͲƚĞƌŵǁĞůůŶĞƐƐ͕ The MCCA was created as a private nonprofit to fill the void that ĂŶĚ ,ĞĂůƚŚWůƵƐ Įƚ ƚŚĞ ďŝůů͘ was created by the legislative mandate for unlimited lifetime benefits In aĚĚiƟon to oīeƌing coŵƉeƟƟǀe Ɖƌicing anĚ a stƌong — a coverage no normal reinsur- net o of o i e s, HealthPlus eca e ou ellness ance company was willing to pro- ǁ ƌŬ Ɖƌ ǀ Ě ƌ ď ŵ ƌǁ vide because of the outlandish pric- chaŵƉion. dhe HealthPlus teaŵǁoƌŬs closelǇǁith us ing challenges attendant to such a unique coverage. While it’s true to ĚeǀeloƉ tools anĚƌesouƌces that helƉƉƌoŵote a that MCCA expenses find their way into insurers’ rates and consumers’ healthǇ lifestǇle foƌ ouƌ eŵƉloǇees anĚ theiƌ faŵilies. premiums, so do the costs for other then ƌeǀieǁing Ǉouƌ oƉƟons, consiĚeƌ HealthPlus. reinsurance, utilities and labor, etc. But nothing about the MCCA, its function or operation legally sub- zŽƵ ĐŽƵůĚ ĂĚĚ Ă ďŝŐ ƉůƵƐ ĨŽƌ ǇŽƵƌ ĞŵƉůŽǇĞĞƐ͘ jects it to the political process in the way called for in your editorial. It would be no less outrageous for Crain’s to call for GM to be subject to FOIA because of the “public interest” in that company. Your characterization of the MCCA’s claim that it is not subject to FOIA as “laughable” demon- strates a lack of understanding of the legal and public policy issues involved. The very fact that many (now including a leading business publication) have targeted the MCCA for political games has given rise to additional scrutiny by insurance company ratings agencies, which recognize that by subjecting a financial entity to politics, Michigan is affecting the security and viability of the MCCA. It is disappointing that the edi- tors of Crain’s have aligned with the usual enemies of business, en- Isn͛t it Ɵŵe Ǉou got the Plus͍ terprise and the rule of law. For Cathy Nash these reasons — and many more — 1-800-530-9071 your reckless article is particular- ǁǁǁ.healthƉlus.oƌg WƌĞsŝĚĞŶt aŶĚ CK͕ CŝƟǌĞŶs ZĞƉƵďůŝĐ aŶĐŽƌƉ ly galling. Kurt D. Gallinger Chairman, ©2012 HealthPlus of Michigan, Inc. Michigan Catastrophic Claims Association 20120611-NEWS--0008-NAT-CCI-CD_-- 6/8/2012 5:01 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS June 11, 2012

PUBLISHER’S NOTEBOOK

Contact Mary Kramer at mkramer @crain.com. CRAIN’S MICHIGAN BUSINESS Mary Kramer Right-to-work battle may be unavoidable Will Michigan be the next right-to- work battleground? The pro-union Protect Our Jobs coalition wants to pre-empt any possibility of Michigan’s enacting right-to-work legislation by adding collective-bargaining guarantees to the Michigan Constitution. If the group collects at least 322,609 signatures by July 9, the issue will be on the November ballot. But would Michigan voters support it? Last week’s failed attempt to recall Wisconsin Gov. Scott Walker was also a referendum on labor politics and collective bargaining. Walker had ended collective The annual NeoCon design show in bargaining with state employees, Chicago creates work for hundreds outraging union activists and of West Michigan designers. REX LARSEN Democratic lawmakers. But when it People Design Inc. President Kevin Budelmann (standing) works with Design Director Brian Hauch and designer came to an up-or-down vote, only 46 Emily Cowdrey on promoting textile products for Grand Rapids-based True Textiles. People Design in Grand Rapids did work for four companies for NeoCon 2012. percent of Wisconsin voters agreed with organized labor. Walker keeps his job. A lot of out-of-state money poured into Wisconsin to help Walker stave off recall. That kind of money might also pour into Michigan if Protect Our Jobs prevails. Let’s be clear: Right-to-work doesn’t outlaw unions. Workers have always Designs had the option of not joining a union. But right-to-work allows employees in unionized workplaces to opt out of paying union dues — even though on they benefit from the contracts Granddaddy of Chicago negotiated on their behalf. Right-to-work weakens unions financially. It would siphon off some of office furniture ers than other metro- the cash that eventually becomes the politan areas of its size. lifeblood of many Democratic political shows inspires John Berry, execu- campaigns. tive director of Design The strongest support for right-to- West Michigan, a non- work is in West Michigan, which is West Michigan profit that promotes de- less unionized than Southeast sign as an economic Michigan. In two successive policy BY MATTHEW GRYCZAN building block for the conferences staged in Grand Rapids CRAIN’S MICHIGAN BUSINESS region, said design in- since 2008, attendees came down dustry observers na- squarely in favor of making Michigan a ike kids who pace off the passage of the tionally are intrigued right-to-work state. The next West year by using major holidays such as by both the large size of Michigan Policy Conference will be in L the Fourth of July and Halloween, a his 850-member group September. small army of creative professionals in and its rapid growth Last month, more than 40 CEOs West Michigan has its own red-letter days since its creation about from West Michigan attended the to keep the calendar straight: Christmas Zeeland-based Herman Miller Inc. exhibits at NeoCon 2011. five years ago. Berry Detroit Regional Chamber’s policy and NeoCon. said they consider West conference on Mackinac Island — When the doors swing open this morn- Michigan a “petri dish” of what can hap- probably the most ever from that part Video: The race to NeoCon: Why ing at the Merchandise Mart in downtown pen when professionals from various dis- of the state. Some West Michigan creatives are exhausted, but happy. execs clearly believe now is the time Chicago, visitors to NeoCon will be greeted www.crainsdetroit.com/video ciplines — graphic arts, industrial design, to push right-to-work in Michigan and with a polished show that hawks the latest interior design — come together as one. were talking quietly about raising wares of the office furniture industry — sign in Grand Rapids, a 20-employee firm The single largest common denominator money to defeat any pro-union the result of work since winter by design- that has done NeoCon work every year among Design West Michigan members — proposal that lands on the November ers, exhibit fabricators, marketing execu- since its founding in other than that they all are designers — is ballot. tives and writers in metro Grand Rapids. 1997. their involvement in NeoCon, Berry said. In the past, the Detroit Regional To these creatives, saying NeoCon is a “And if they feel oblig- He pointed out that influential designer Chamber has said right-to-work three-day trade show is like saying the Su- ated to show up, they George Nelson — whose work is being legislation is too divisive and is taking per Bowl is another football game. While also feel the need to in- showcased at a four-month exhibition at a stance not unlike Gov. Rick Snyder. its former dominance in the industry now vest resources in having the Cranbrook Academy of Art in Bloomfield It’s just not on his agenda. is challenged by competing shows in Eu- something useful to Hills starting Friday — strongly promoted But if Protect Our Jobs succeeds in rope and Asia, NeoCon still is the party say,” Budelmann said. the idea that office furniture manufactur- getting a pro-union proposal on where you need to make an appearance if That need to put one’s ers must extend the creative design of November’s ballot, the Detroit you are a player. best foot — and products products to other forms of communication, chamber may have no choice but to such as brochures, catalogs and internal “It’s a moment in time where everyone Berry — forward has been a support a united business “just say in the industry has to show up — to give catalyst for the creative printed materials. no” campaign. the perception of being relevant,” said community in West Michigan, which ar- Kevin Budelmann, president of People De- guably has a higher percentage of design- See Show, Page 9 20120611-NEWS--0009-NAT-CCI-CD_-- 6/8/2012 10:37 AM Page 1

June 11, 2012 CRAIN’S DETROIT BUSINESS Page 9 CRAIN’S MICHIGAN BUSINESS Show: NeoCon inspires West Michigan design community ■ From Page 8 Nelson was a director of design companies outside Michigan, as Shepard, a 25-year veteran of the at Herman Miller Inc. in Zeeland well as local manufacturers: Inter- show, said NeoCon and other con- when he developed or supervised (NeoCon is) the big launch — face, an Atlanta-based manufac- tract furniture work accounts for the design of some of the 20th cen- “ turer of modular carpeting; True about half of her firm’s annual rev- tury’s most iconic modern furni- the Big Bang — and then we carry Textiles in Grand Rapids, with a enue. ture. brand called Guilford of Maine; The show itself provides signifi- One need look no further than that excitement and enthusiasm and The Gunlocke Co. in Rochester, cant business for small shops that the “picnic” posters created by through the rest of the year. N.Y. handle overflow work from larger Steve Frykholm as internal com- “About two-thirds of our team is firms, such as Designvox, and ” focused right now on NeoCon out- from the furniture companies munication pieces for Herman Amy Venn Shepard, Designvox Miller in the 1970s and 1980s — to- comes,” said Amy Venn Shepard, themselves. day fetching up to $500 on eBay — as vice president of strategy and examples of this interaction, Berry The big show revenue to West Michigan. brand experience at Designvox in “I’m sure that there is a greater East Grand Rapids, a full-service Sum is greater than the parts said. Frykholm, vice president and By extension, NeoCon has cre- creative director at Herman Miller concentration of firms, effort, time marketing and brand-development But aside from dollars and ated regular work for hundreds of and energy going into NeoCon pro- firm that employs 29 full-time cents, NeoCon acts as an impetus and a former student at Cranbrook people in metro Grand Rapids jects in West Michigan than any staffers. for out-of-the-box thinking by com- Academy, is quoted on the compa- who craft messages and develop other single place in the country,” “It’s the big launch — the Big panies great and small. ny website as saying, “Herman branding, design and build dis- said Budelmann, who estimated Bang — and then we carry that ex- “There is this beautiful synergy Miller trusted designers; that’s plays, put together news packets, that about half of his firm’s rev- citement and enthusiasm through of everyone coming together and why I’ve been able to do what I’ve and launch new or updated web- enue comes from accounts related the rest of the year,” Shepard said. creating work that none of us done.” sites. to office furniture. Many companies use NeoCon as alone could do,” Shepard said. Berry said: “You really have a West Michigan is home to at Over the years, People Design “a kickoff for the idea and also a “I think it’s one of the key bene- multitiered impact with NeoCon least 15 contract furniture manu- has serviced the industry’s largest testing ground for it,” Shepard fits of serving the office furniture because so many companies in the facturers that account for more players, such as Grand Rapids- said. Work introduced at NeoCon versus some other type of manufac- design field — graphic design, in- than half of the North American based Steelcase Inc., Herman is filtered to dealers, independent turing. There’s this demand for teractive media design, interior production of office furniture. Miller, Pennsylvania-based Knoll sales reps, and architecture and great design — and the appreciation design, product design — are busy About 25,000 people locally are em- Inc. and The HON Co. in Iowa. design firms throughout the year. of great design — from the office supporting the corporations that ployed in the industry, which This year, People Design is do- At the same time, it’s replicated at are exhibiting at it.” brings an estimated $5 billion of ing NeoCon work on behalf of shows around the world. See Show, Page 10 Old School

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Page 10 CRAIN’S DETROIT BUSINESS June 11, 2012 CRAIN’S MICHIGAN BUSINESS Show: NeoCon ‘a huge business boon’ for West Michigan ■ From Page 9 furniture manufacturers. It allows ufacture of educational, perform- sign and creative writing. creative firms like Designvox to ing arts, transportation and office “We are extremely busy trying shine with their very best creative It is a good, healthy time for seating, decided to launch the new to pull us all together and do it suc- work and have that be appreciated “ showroom in the Merchandise cessfully,” she said. and valued in perhaps a way that it West Michigan because everyone Mart, after a brief hiatus because “At other companies where I’ve wouldn’t be by another industry.” it is optimistic about potential worked, it was typical for some This year, Designvox is per- gets busy. sales and wants customers to be people to take a vacation after the forming work for izzy+, a business ” able to view products year-round. event. But since American Seating of JSJ Corp. in Grand Haven, and Deb McDermott, American Seating Co. McDermott said the company’s is heavily involved in the educa- the Nurture division of Steelcase. internal staff of about a dozen peo- tion seating market, summer is “Every vendor that I work with ple working as a cross-functional when all the installations take understands NeoCon,” said Deb time for West Michigan because it has worked on for more than a team have been preparing for Neo- place for major additions or reno- McDermott, vice president of mar- everyone gets busy.” year, but also a permanent show- Con, assisted by work from seven vations on campuses. keting and business development This year, American Seating is room in the Merchandise Mart. outside contractors in areas such “While we would like to have for Grand Rapids-based American launching not only a brand-new American Seating, which em- as public relations, giveaways, some vacation after NeoCon, that Seating Co. “It is a good, healthy product line called Us Chair, which ploys about 495 people in the man- printing, exhibit fabrication, de- doesn’t seem to happen for us — we may take a vacation — mental- ly,” she said with a laugh. Molly Klimas actually took that vacation three years ago after facing the juggernaut of NeoCon, treating herself to 18 holes at Arca- dia Bluffs Golf Club in Arcadia, over- looking Lake Michigan. Klimas, who owns Intent Public Relations LLC in Grand Rapids, does public relations and marketing communications for American Seating and Configura, a Swedish company that develops design and render- ing software geared toward office furniture manufacturers. “NeoCon time is crunch time,” said Klimas, a five-year veteran of the event. Work includes assem- bling press kits, pitching stories to the news media, preparing online NeoCon newsrooms and harness- ing social media. “If my experience is any indication, NeoCon is a huge business michigan.gov/mshda boon to companies like mine, ad agencies and printing companies based in West Michigan,” Klimas said. That’s also the experience of Pe- ter Houlihan, co-owner of Diversified Data Services Inc., a Grand Rapids- based digital printing and direct- mail company. Houlihan said his company has seen an uptick in demand for wide-format printing on sheets as big as 4 by 8 feet and nearly 2 inches thick, used for NeoCon displays and showrooms. You’ve got a partner. Your MSHDA. “I’ve personally been involved with NeoCon for the past 10 years, and this is the biggest NeoCon sea- Preventing foreclosure? son ever for our company — up about 20 percent over last year,” We help. Houlihan said. “Nearly half of the NeoCon-related work that we’re doing right now pertains to digital wide-format printing.” Resurrecting Main Streets? Like other firms, Diversified Data gets psychic value working We’re there. on the event that goes beyond strictly money. “Some of the most creative work that we will see over the course of a Fixing up the neighborhood? year is due to NeoCon,” Houlihan said. “It really enhances and ele- Call us. vates the creative energy in this area.” Said People Design’s Budel- Helping to build affordable housing? mann: “People start measuring years in, ‘Well, there is Christmas, and then there is NeoCon.’ It be- We’re on it. comes a high-water mark.” People Design has been working on event-related items since De- We’re working to make Michigan vibrant, by utilizing cutting edge housing andTTY 800.382.4568community programs cember, he said. and providing sound advice. If you’re interested in improving your home, neighborhood or community, “For North American furniture shows,” Budelmann said, “NeoCon you’ve got a partner. Your MSHDA. continues to be the granddaddy of them all.” TTY 800.382.4568 Equal Housing Employer/Lender Matthew Gryczan: (616) 916-8158; [email protected]; Twitter: @mattgryczan 20120611-NEWS--0011-NAT-CCI-CD_-- 6/8/2012 10:35 AM Page 1

June 11, 2012 CRAIN’S DETROIT BUSINESS Page 11 CRAIN’S MICHIGAN BUSINESS ‘Shared work’ bill designed to help firms Schechterize it keep employees it might have laid off

BY AMY LANE with federal requirements and re- plicable labor union. SPECIAL TO CRAIN’S MICHIGAN BUSINESS ceive full funding. Ⅲ Have paid wages for three The federal funding negates any years before applying for the Michigan employers faced with potential impact on the Michigan Un- shared-work plan. having to lay off valued employees employment Insurance Trust Fund, Ⅲ Include in the plan an esti- could have a new alternative to through which the state collects em- mate of the number of layoffs that help keep those workers. ployer UI taxes and pays benefits. would be avoided. Under a bill moving through the “We know that the net effect of Ⅲ Have at least two employees Legislature, employers suffering a these programs in most states is to in the affected unit participating downturn and seeking to avoid lay- increase benefit payout, and so that in the plan. offs could create “shared work” does have an effect on the trust Ⅲ Reduce workers’ hours no less plans — state-approved arrange- fund,” said than 15 percent and no more than 45 ments that would reduce workers’ Wendy Block, di- percent and apply the reduction to hours and allow them to receive rector of health all participating employees equally. {before} {after} limited unemployment benefits to policy and hu- The shared-work plan cannot af- help compensate for lost wages. man resources fect any employee’s fringe benefits, The arrangement can help em- for the Michigan like health insurance, retirement ployers retain skilled workers in Chamber of Com- benefits or paid time off. Our experts are the difference. whom they have invested — and merce. “If the fed- Employers would apply to the UI who might find other work in We have big thinkers that understand the complicated issues that eral government agency before layoffs, and the Michigan or out of state if they is willing to pay agency would have 15 days to ap- wealthy families and business owners face. Our team of CPAs, JDs, were laid off, said Steve Arwood, for the program, prove or deny applications. MBAs, CLUs, design life insurance strategies that have been coined director of the Michigan Unemploy- Block it wouldn’t have Benefit payment amounts would ment Insurance Agency and deputy “Schechterized” – a robust analysis and application of financial that same negative effect. be a percentage of the full weekly director of the Michigan Department tools that solve complex wealth transfer situations and can simply “Our members are somewhat UI benefit the worker would have of Licensing and Regulatory Affairs. save money with existing life insurance policies. mixed. On one hand, they’re con- received had he or she been laid off. “It comes across … as a talent re- cerned about trust fund solvency. For example, if a worker receives a tention/skill retention program,” 75 years of sophisticated planning with 100s of wealthy families But on the other hand, if there is a 25 percent reduction in hours, he or Arwood said. has made us a national leader in the life insurance arena. real threat to permanent layoff, she would get 25 percent of the un- Such programs exist in 23 states, this could actually help with trust employment benefit that would Arwood said. In his December leg- fund solvency.” have been paid if laid off. islative message on talent develop- Block said employers’ key con- The bill passed the Senate unan- ment, Gov. Rick Snyder called on cerns have been addressed. Those imously in May and is being dis- the Legislature to adopt such a include capping the duration of a measure. Sweetening the idea: fed- cussed the House Commerce Com- shared-work plan at 52 weeks and mittee, which on Tuesday adopted eral funding for the unemploy- allowing only “positive balance” ment benefits that would be paid. an amendment limiting the new employers — those who have paid state program’s legislative autho- BIRMINGHAM, MICHIGAN 248.731.9500 Provisions passed and signed more in unemployment taxes than rization to three years. The legisla- WWW.SCHECHTERWEALTH.COM into law in February as part of the have had benefit claims charged tion would take effect Jan. 1. federal Middle Class Tax Relief against them — to participate in and Job Creation Act of 2012 pro- the arrangement. vide for states to receive 100 per- Employers would have to meet cent federal funding of benefits several criteria, including certify- paid under the plans, provided ing that the plan would be in lieu of their work-share bills conform temporary layoffs affecting at least with federal requirements. 15 percent of the employees in a The benefits would not be unit and would result in a corre- charged to the employer’s unem- sponding reduction in work hours. ployment insurance account, so Arwood said a unit might be an the employer’s UI tax rate would entire business, in the case of a be unaffected by the increased ben- small firm, or, with larger compa- efit payouts. nies, might be a location, plant or Arwood said the full federal operating division. funding is available through Aug. Among the requirements, em- 22, 2015. He said he expects the ployers must: Michigan legislation will conform Ⅲ Obtain approval from any ap-

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Page 12 CRAIN’S DETROIT BUSINESS June 11, 2012

Monthly Taiwan WHERE MICHIGAN DOES BUSINESS

aiwan is America’s ninth-largest trading partner, according to Global Crain’s monthly World Watch report T Reach, the official blog of the U.S. showcases companies leading the way Census Bureau’s foreign trade division. in international business as well as Its 2011 GDP was $504.6 billion, ranking those expanding their global operations. 20th in the world, according to the CIA Each World Watch Monthly features World Factbook. a different country. If you know of a Taiwan’s main exports are electronics, Michigan company that exports, manu- machinery, textiles and plastics, and its factures abroad or has facilities abroad, main trading partners are China, Hong email Jennette Smith, managing editor, Kong and the U.S. It imports electronics, at [email protected]. crude petroleum, organic chemicals and metals from Japan, China and the U.S. COMING UP Trade occurs via five major ports, includ- Ⅲ July: France ing the Port of Taipei, which was finished Ⅲ August: Mexico Ford manufactures in 2011. vehicles at a plant in Taoyuan County.

Malaysia and Indonesia. More information: Dow Chemical Taiwan The company is wholly owned by GM. Employees: About 20 opened its first office in Taipei in 1968 and in Employees: 15 Business: Building restoration, document 2009 acquired Rohm and Haas Co. Products: AC Delco, GM and Opel after- and data recovery, machinery remediation market parts. and emergency stabilization of environmen- Top executive: Roger Chan, general sales tal conditions. Dow Corning Corp. manager Top executive: Brian Whitmore, managing Based: Midland More information: In 2005, GM entered the director of Belfor Asia Taiwan operations: A research and develop- Taiwan auto market with a partnership More information: Last year, Belfor Asia ment center in Taipei and a warehousing with Yulon Motor Co. to break into the then- was named Service Provider of the Year and distribution center in Taoyuan County. booming auto market. In 2008, after the mar- from Singapore-based trade publication Employees: 50 ket had contracted to half the size, GM sold Asia Insurance Review for its response to the Products: Silicone-based products for such its 49 percent stake in Yulon General Motors far-reaching fallout from the March 2011 industries as construction, electronics, so- Co. Ltd. for one New Taiwan dollar. Yulon tsunami and earthquakes in Japan. lar, health care and beauty care. Motor continues to distribute GM brands Top executive: Jeremy such as Cadillac, Buick and Opel in Taiwan. Domino’s Pizza Inc. Burks, president of Dow Corning Greater China Based: Ann Arbor More information: Dow George P. Johnson Co. Taiwan operations: 141 Corning has operated in Based: Auburn Hills stores throughout Tai- Taiwan for more than 30 Taiwan operations: The company’s Greater Distributors can try out products at Amway wan, with headquarters Taiwan’s Experience Center in Kaohsiung City. years. “The growth of the China division, George P. Johnson Event Mar- in Taipei. manufacturing industry keting Co. Ltd., has an office in Taipei. Amway Employees: About in the world is taking Employees: 10 2,000 place in Greater China, Business: Event and brand marketing for Based: Ada Products: Pizza and and Taiwan is an impor- companies such as Mercedes-Benz, Bayer Taiwan operations: Amway Taiwan Co. Ltd. other products, cus- tant engine for that and IBM. launched in 1982. Headquartered in Taipei, tomized to meet local growth,” Burks said in Top executive: Phyllis Teo, general manager Amway Taiwan has facilities in Taoyuan tastes. For instance, Taipei last year, accord- County, Taipei, Hsinchu, Taichung, Tainan, seafood toppings and ex- ing to the Taipei Times. Chiayi City and Kaohsiung City. tremely hot spices are HoMedics Inc. Employees: About 300 available. Based: Commerce Township Products: A variety of Amway brands, in- Top executive: Gary Ford Motor Co. Taiwan operations: The company’s Taipei cluding nutrition, wellness, beauty, skin Wang, managing direc- Based: Dearborn office coordinates all China orders for its in- and home care products. tor Taiwan operations: Ford ternational operating units and customers Top executive: Martin Liou, managing di- More information: Tai- Lio Ho Motor Co. Ltd. was worldwide. rector wan is one of the oldest formed as a joint venture Employees: 4 More information: Amway Taiwan has an international markets between Ford Motor Co. Products: HoMedics wellness and audio island-wide network of more than 280,000 for Domino’s, with the and Taiwan’s Lio Ho Group products, as well as Sharper Image electron- distributors. Its annual sales were $263 mil- first store opening there in 1972. Ford holds a 70 ics, Black & Decker document shredders lion for the 2010 fiscal year. in 1989. Domino’s Pizza Inc. has about 2,000 employees in Taiwan. percent share of FLH and and Marley-brand bags and watches. manufactures and dis- Top executive: Isabelle Chai, manager Arden Corp. Dow Chemical Co. tributes both Ford and Mazda brand vehi- Compiled by Ryan Kelly and Meghana cles. The plant and headquarters are in Keshavan Based: Southfield Based: Midland Taoyuan County. Taiwan operations: One office in Taipei. Operations: An office and plant in Taipei Employees: About 1,300 JAPAN Employees: 5 are both listed under Dow Chemical Taiwan Products: It manufactures the Ford Fiesta, Business: The Taiwan team oversees local Ltd. The Taoyuan Plant is part of Rohm and Focus, Mondeo, Escape and Econovan, as Haas Electronic Materials Taiwan Ltd.; the printing, weaving, dyeing and finishing well as the Mazda 3 and 5. The company also Hsinchu Plant, Rohm and Haas Electronic Ma- mills to ensure quality standards and dead- imports the Ford Fiesta, Ford Ranger and CHINA lines for production and also purchases fab- terials Asia-Pacific Co. Ltd.; the Min-Hsiung the Mazda 2, 6, CX-7 and CX-9. ric to be shipped to the U.S. for manufactur- plant, Rohm and Haas Taiwan Inc.; and the Top executive: Thomas Fann, president of ing. Pingtung center, Dow Agro-Sciences Taiwan, Ford Lio Ho Top executive: Fredy Granillo, vice presi- Ltd. More information: FLH also has the local dent and COO of Arden’s Asian operations Employees: About 600 Taipei product development capabilities to modify Products: It manufactures and distributes vehicle designs for local needs, and it im- Taoyuan County products for the semiconductor market; ar- Belfor Holdings Inc. ports specialized European and U.S.-made Hsinchu chitecture-related coating products; crop Taichung Ford vehicles. AIWAN Based: Birmingham protection; pest and vegetation manage- T Chiayi City Taiwan operations: The Taiwan branch of ment; seeds, traits and agricultural biotech- Tainan Belfor (Asia) Pte. Ltd. is in Taipei. Belfor Asia nology; and materials for printed circuit General Motors Co. Kaohsiung City has branches in Taiwan, Japan, Singapore boards, electronics finishes, industrial fin- and China — all of which provide ancillary ishes and photovoltaic industries. Based: Detroit disaster recovery services and mobile Top executive: J.R. Chen, lead general di- Taiwan operations: General Motors Taiwan Ltd. restoration workshops in Korea, Thailand, rector operates a sales and support office in Taipei. PHILIPPINES 20120611-NEWS--0013-NAT-CCI-CD_-- 6/8/2012 10:38 AM Page 1

June 11, 2012 CRAIN’S DETROIT BUSINESS Page 13

Visit crainsdetroit .com/jobfront to search for jobs, post a résumé or find talent. Job Front PEOPLE EDUCATION vices, Crestmark Bancorp Inc., Troy, from, president and CEO, Genesis Robert Heighes to chief of police and IN THE SPOTLIGHT Turnaround LLC, White Lake. executive director of public safety, Lasertec Inc., Eastern Michigan University, Ypsilan- Lisa Van Giesen to marketing leader, a national ti, from interim executive director of Automated Payment Highway Inc. dba public safety. Billhighway.com, Troy, from director of printing and marketing, Fisher Unitech Inc., Troy mailing Daryl Weinert to associate vice presi- company dent for research-sponsored projects, based in University of Michigan, Ann Arbor, LAW Sterling from executive director of the busi- Mark James to Heights, Reinventing ness engagement center. shareholder, Williams has named Bonnie Ellis to director of academic af- Wendy Lokken fairs, Detroit campus, University of Williams Rattner , president and Reinvesting Phoenix, Troy, from campus college & Plunkett PC CEO. Lokken chair, college of humanities, Troy. Birmingham, Lokken from associate. succeeds ENGINEERING Donn Schulte, who is retiring as Reforms championed last year by the Michigan Chamber MARKETING Lasertec’s CEO and chairman. Jeffrey Stone to vice president of oper- Schulte will remain chairman are saving job providers an estimated $3,984 per employee Greg Scott to se- ations, KC Jones Plating Co., Warren, emeritus. from compressor global product line nior creative di- each year, spurring new jobs and investment in our rector, The Quell Lokken, 46, was elected co-CEO purchasing manager, thermal and in- James terior systems, Delphi Corp., Troy. Group Inc., Troy, in 2010 and has served on the future. Michigan now leads the nation in job growth. from creative director, Pitney Bowes board of directors since 1999. FINANCE Marketing Solutions Group, Farming- She studied marketing, business ton Hills. and accounting practices at But there’s more work to do to reinvent our state. Call Susan Edwards to Elaine Jones to office manager, Identi- North Dakota State University, vice president Fargo, N.D. 517-371-2100 today and become a Michigan Chamber and commercial ty Marketing & Public Relations LLC, relationship man- Bingham Farms, from human re- Lasertec is a 100 percent woman- member to help move Michigan forward. ager, Citizens source coordinator, Plante & Moran owned business. Bank, Auburn PLLC, Auburn Hills. Hills, from Joel Cottrell to controller, West Coast County Family Center, Lutheran Social branch manager. operations, Daniel Brian & Associates , Westland, from Steven Guarini to Services of Michigan Inc., Rochester, from accounting man- manager of the Head Start program, president, God- ager and financial analyst, Michigan frey Hammel Dan- The Guidance Center, Southgate. Jewish Institute, Southfield. -PDBMt5PMM'SFF neels & Co., St. Anika Smith to national associate di- www.michamber.com Edwards Clair Shores, rector of Tour de Cure, American Dia- from partner. NONPROFITS betes Association, Milford, from man- Scot Lund to vice president, client ser- Angela Pilarski to director, Wayne ager, special events. 20120611-NEWS--0014-NAT-CCI-CD_-- 6/8/2012 10:02 AM Page 1

Page 14 CRAIN’S DETROIT BUSINESS June 11, 2012

CRAIN'S LIST: LARGEST OUTSTATE BANKS AND THRIFTS Ranked by 2011 deposits

Deposits outside Company Deposits inside market Number of offices inside market Number of offices outside Address ($000,000) market ($000,000) market Rank Phone; website Top executive(s) 2011/2010 2011 2011 2011 Fifth Third Bank David Girodat $8,884.8 176 $68,630.3 1,194 1. 1000 Town Center, Southfield 48075 president and CEO Eastern Michigan $9,676.1 (877) 579-5353; www.53.com J.P. Morgan Chase & Co. Sarah McClelland 4,766.2 130 738,501.8 5,301 2. 611 Woodward Ave., Detroit 48226 Michigan market president 4,465.9 (313) 256-8500; www.jpmorganchase.com Citizens Republic Bancorp Inc. Cathleen Nash 4,661.3 118 2,844.2 97 3. 328 S. Saginaw St., Flint 48502 president and CEO 5,421.3 (800) 676-6276; www.citizensbanking.com PNC Bank Richard DeVore 4,530.6 132 176,241.4 2,486 4. 755 W. Big Beaver Road, Troy 48084 regional president for Detroit and Southeast 4,683.3 (800) 243-7274; www.pnc.com Michigan Chemical Financial Corp. David Ramaker 4,251.2 143 0.0 0 5. 235 E. Main St., Midland 48640-0569 chairman, president and CEO 3,519.7 (989) 839-5350; www.chemicalbankmi.com Huntington National Bank James Dunlap 3,208.9 77 38,184.4 619 6. 801 W. Big Beaver Road Suite 500, Troy 48084-4724 senior executive vice president, director of regional 3,164.6 (248) 244-3541; www.huntington.com and commercial banking and West Michigan regional president Bank of America Brett Bernard 2,323.9 81 946,356.3 5,771 7. 2600 W. Big Beaver Road, Troy 48084 market president for Detroit and Michigan state 2,329.3 (800) 643-9600; www.bankofamerica.com president Wells Fargo & Co. Fred Bertoldo 2,322.7 18 758,831.3 6,364 8. 26677 W. 12 Mile Road, Southfield 48075 regional president 2,377.9 (248) 358-8352; www.wellsfargo.com Comerica Bank Thomas Ogden 2,010.0 54 38,998.0 388 9. 411 W. Lafayette, Detroit 48226 Michigan market president 1,779.3 (248) 371-5000; www.comerica.com Independent Bank Corp. Michael Magee 1,910.5 101 165.8 7 10. 230 W. Main St., Ionia 48846 chairman and CEO 2,232.7 (616) 527-5820; www.ibcp.com William Kessel president and COO

This list ranks banks and bank holding companies with a presence in Michigan by their deposits outside Wayne, Oakland, Macomb, Washtenaw and Livingston counties. It is not a complete listing but the most comprehensive available. Companies are listed with the address and top executive of their main Michigan office. Actual figures may vary. NA = not available.

LIST RESEARCHED BY FDIC ■ An expanded version of this list can be purchased at crainsdetroit.com/lists.

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June 11, 2012 CRAIN’S DETROIT BUSINESS Page 15 Extra

People

Ⅲ The Detroit Medical Center has appointed Brian Connection to savings O’Neil, M.D., as specialist-in-chief of emergency medicine. He succeeds Suzanne Telemedicine comes into its own through reform, technology White, M.D., who became DMC’s BY JAY GREENE chief medical CRAIN’S DETROIT BUSINESS O’Neil officer last year. or patients who are home- O’Neil will oversee and manage bound, seriously injured in emergency medicine services, F emergency departments, or resident training and operations for all DMC emergency departments. O’Neil under close observation in specializes in cardiac and cerebral hospital intensive care units resuscitation. He is interim chairman or other inpatient depart- for the department of emergency ments, does the use of telemed- medicine at Wayne State University icine cut health care costs? and chair of the National American Experts have debated the Heart Association’s advanced cardiac question for years. While life-saving committee. telemedicine in South- Ⅲ Michelle east Michigan has Bryant, R.N., has PATIENT grown, experts say it been appointed SENSORS falls far short of its po- director of quality tential to greatly re- management and FCC rule duce the number of patient safety for boosts avoidable hospital the Wayne State use, readmissions and im- University Physician Page 17 prove quality of care Group. Bryant for patients. previously served But with total health care as vice president of costs rising at 5 percent a Bryant regulatory year — a rate far outpacing compliance and wages and general inflation quality for Westside Regional Medical — telemedicine is being seen Center in Plantation, Fla.; director of as a real solution and a com- clinical quality improvement for South Fulton Medical Center in Atlanta, Ga.; plement to health insurance GLENN TRIEST and delivery reform under Medical Director Steve Shaya, M.D., says Health Net Connect’s Video Doc system could, for instance, help a and department director of education physician diagnose a stroke without seeing the patient in person. at Landstuhl Regional Medical Center the Patient Protection and Af- for the U.S. Army Nurse Corps in fordable Care Act of 2010. Kaiserslautern, Germany. A number of health care and Critical Signal Technologies, and Clinton Township offices. pating in projects to cut costly Ⅲ Joseph companies — hospitals, home Farmington Hills, are develop- “We are and unnecessary hospital Swedish, president health agencies, hospices, ing devices or applications. protecting readmissions by 30 percent. and CEO of Novi- health insurers — in Southeast As telemedicine has expand- Medicare National data show that based hospital Michigan are using telemedi- ed, many home health agen- trust funds, nearly 20 percent of Medicare system Trinity cine and finding good results. cies, insurance companies and and pa- patients are readmitted to hos- Health, has been They include Jackson- medical device makers now tients are pitals within 30 days, and 33 appointed based Great Lakes Caring, have data to show telemedi- getting bet- percent are readmitted within chairman of the Farmington Hills- and Grand cine can save thousands of dol- ter care by 90 days, costing Medicare Washington, D.C.- Rapids-based Priority Health, lars for each patient served keeping more than $17 billion, accord- based Catholic and Henry Ford at Home and its with current technology. them out of ing to a study in The New Eng- Health Association. Detroit-based parent, Henry “As a home health compa- the hospi- land Journal of Medicine. Deary Swedish The CHA is the Ford Health System. ny, our biggest contribution tal,” Deary “We estimate (telemedi- nation’s largest Several manufacturing and is keeping patients out of the said. cine) can cut the rate of hospi- group of nonprofit health systems that development companies, in- hospital,” said William To save money and improve tal readmissions by 70 per- collectively employ more than cluding Wixom-based Health Deary, CEO of Great Lakes quality, more than 40 hospitals cent, save money, provide 750,000. Swedish served as vice Net Connect Inc., Orion Town- Caring, a home health and and 15 physician organiza- chairman of the CHA in 2011-12 and ship-based Jems Technology LLC hospice agency with Brighton tions in Michigan are partici- See Telemedicine, Page 16 has been a trustee since 2006. Ⅲ Wei-Zen Wei, an oncology professor at the ABOUT TELEMEDICINE Barbara Ann Telemedicine is the use of telecommunication and medical devices for educational purposes or to monitor and diagnose Karmanos Cancer patients at home or in remote locations from medical professionals. It includes: Institute and Wayne Ⅲ Monitoring of patients’ vital signs in allows patients to talk directly with physicians can order medications State University a health care institution or at home. providers through live online video through computers connected to School of Medicine, Monitoring devices include wireless links. pharmacies. The software also tracks will serve as weight scales, blood pressure cuffs, Ⅲ Virtual hospital rounds, whereby patient use and alerts physicians chairwoman of the blood glucose meters, and video physicians “visit” their patients at and pharmacists to National Institutes monitors for patient observation and hospitals through Internet dangerous drug Wei of Health’s Cancer consultation. New technology allows videoconferencing systems, without interactions. Immunopathology wireless sensors on patients to leaving their offices. Ⅲ Physician and Immunotherapy Study Section transmit data to call centers through Ⅲ Specialist consultation, allowing a education, online Center for Scientific Review. Wei made the Internet or cellphones. primary care physician to consult with continuing medical headlines in 2008 when her lab Ⅲ Virtual physician office visits, with a specialist using Internet education courses. became the first to develop a DNA patients sending emails to doctors or videoconferencing. vaccine that prevented laboratory mice nurses using Web cameras. This also Ⅲ Electronic prescribing, whereby from succumbing to one of the most virulent forms of breast cancer. Source: David Ellis, former corporate director of planning and future studies at Detroit Medical Center, editor of Health Futures Digest and a consultant in Hawaii. 20120611-NEWS--0016-NAT-CCI-CD_-- 6/8/2012 10:56 AM Page 1

Page 16 CRAIN’S DETROIT BUSINESS June 11, 2012 Health Care Extra Telemedicine: Reform, technology boost doctoring at distance ■ From Page 15 higher quality of care, increase ner with very sophisticated readmissions to under 6 percent physician time with patients, and IN THE REAL WORLD providers of home health services” for a subgroup of 15,000 Medicare reduce travel time and costs for pa- to reduce readmissions. patients with congestive heart fail- Examples of telemedicine in Southeast Michigan: tients” because they won’t have to Over the past year, Great Lakes ure, heart attack and pneumonia go to physician offices as often, Ⅲ Great Lakes Caring, Jackson, Ⅲ Henry Ford at Home has used has been working with a growing in 2011 using Philips Healthcare said Steve Shaya, M.D., medical di- saved an estimated $2.1 million for telemedicine monitors to help cut number of hospitals on a pilot pro- telemedicine devices, said David rector with Health Net Connect. Medicare by lowering hospital hospital readmission rates for ject with 344 high-risk home health Curtis, Residential’s president. Health Net has sold or leased 200 readmission rates to 15 percent congestive heart failure patients to patients to demonstrate cost and The overall readmission rate for from the statewide average of 28 2 percent from the overall home of its VideoDoc telemedicine units, percent. The study provided health average of 9 percent. quality savings of Honeywell’s all 15,000 patients was 14 percent. which allow physicians to remote- HomMed Telehealth devices. John Geerer, manager of market- telemedicine devices to 344 home Ⅲ Residential Home Care, Madison ly examine patients and monitor health patients with congestive Heights, held hospital readmissions So far, only 15 percent of Great ing and business development at vital signs in homes and from hos- heart failure and chronic obstructive to under 6 percent for a subgroup of Lakes’ home health patients with Henry Ford at Home, said 1,000 of pitals, Shaya said. The units, pulmonary disease, or COPD. 15,000 Medicare patients suffering telemedicine devices have been its 2,500 home health patients use which come in 10-inch and 17-inch Ⅲ Priority Health, Farmington Hills from congestive heart failure, heart readmitted to hospitals for conges- Philips’ telemedicine equipment. models, are priced at $10,000 each and Grand Rapids, has cut hospital attack and pneumonia last year. tive heart failure, chronic obstruc- While private-pay patients are or can be leased for $300 a month costs by 39 percent and emergency The overall readmission rate for the tive pulmonary disease and other charged $40 to $150 per month for in a three-year contract. department costs by 14 percent group was 14 percent. high-risk conditions, saving an es- the devices, high-risk Medicare pa- Over the past year, Health Net over the past three years in a pilot Ⅲ Critical Signal Technologies, timated $2.1 million, Deary said. tients are not charged for their has added clients such as Henry program that provides home Farmington Hills, manufactures a But keeping patients out of hos- first 60 days, Geerer said. monitors for heart failure patients. Ford Health System, St. John Provi- number of in-home health monitoring pitals also can save lives by reduc- “We are saving money using The program has expanded to products, including a personal dence Health System and Molina patients with COPD. ing hospital-acquired infections, these devices,” Geerer said. “We emergency response system that know we have kept patients out of Healthcare of Michigan for a variety Ⅲ Health Net Connect Inc., Wixom, allows patients to wirelessly talk such as staphylococcus aureus and the ER and hospitals.” of clinical applications. has sold or leased more than 200 with a medical caregiver, family ventilator-associated pneumonia. “Telehealth can be used in the home health monitors that include member or neighbor, and a About 1.7 million people each For example, only 2 percent of home and hospital setting” to mon- high-definition video diagnostic and medication management system year are infected by bacteria in a telemedicine patients with conges- itor a variety of patients with conferencing features. The that sends out an alert and hospital, resulting in 99,000 deaths tive heart failure are readmitted to chronic conditions, said Shaya. company projects another 800 will automatically distributes pills from a and costing up to $10 billion annu- a hospital, compared with the For example, “someone comes be sold or leased this year. locked container. ally, said the Centers for Disease home health agency’s overall 9 into the emergency department at Control and Prevention. percent readmission rate, Geerer 11 p.m. with stroke-like condi- While reimbursement for are readmitted within 30 days for “The longer you are in the hos- said. Michigan’s hospital readmis- tions,” he said. “The neurologist is telemedicine services lags behind heart failure, pneumonia and pital, the greater the chance you sion average is about 28 percent. not in the hospital but by using use, hospitals have become big sup- heart attack (acute myocardial in- have of getting a hospital-based in- Henry Ford also is using 20 VideoDoc can virtually examine porters of telemedicine because it farction). fection,” Shaya said. “Telemedi- VideoDoc units from Health Care the patient from anywhere and get can save them money and improve “Hospitals used to make money cine has great promise to keep peo- Connect in its home health and in- the tests started. This speeds up customer satisfaction, Deary said. off readmissions, so they had no ple out of hospitals.” patient neurology areas, Geerer the whole process and adds to op- In October, Medicare will stop incentive to control them,” Deary Residential Home Care in Madi- said. erational efficiencies.” paying hospitals for patients who said. “Hospitals now want to part- son Heights also held hospital See Next Page

HEALTH CARE SERIES 11 TRANSFORMATION

An Educational Series on Optimizing Health Care Value

Research today leads to lower costs tomorrow.

Everyone wants a cure for cancer…and for arthritis, heart disease, diabetes, and a thousand other conditions that shorten and diminish human life. While much of the business and consumer focus during health care reform has been on delivery of value-based, cost-efﬁcient care, we in health care never forget that the new frontier of research and technology is also in our hands.

I’m proud to tell you that at St. John Providence Health System, our physician scientists are doing the research and using ground-breaking techniques today to lower costs tomorrow.

s 0ROVIDENCE WAS RECENTLY THE lRST HOSPITAL IN -ICHIGAN TO ENROLLAPATIENTINANATIONALCLINICALTRIALFOR treatment-resistant hypertension. Using medication and lifestyle changes for treatment of high blood pressure has become commonplace, but amazingly 50% of patients with hypertension remain uncontrolled and 15–20 percent of those are treatment-resistant. It is no exaggeration that this trial could result in a life-saving medical breakthrough for someone that you know. s/URNEUROSCIENCEEXPERTSACROSSOURSYSTEMARENOWUSINGAUNIQUEDEVICETHATISTAKINGSTROKETREATMENT to the next level and saving lives of people who otherwise would not survive. The device removes blood clots from blocked brain arteries, surpassing the traditional clot-busting drug that requires administration in a short period of time. s3T*OHN(OSPITALISCONDUCTINGATRIALTOEVALUATEAMINIMALLYINVASIVEOPTIONFORPATIENTSWITHSEVERE aortic stenosis who are not suitable candidates for open heart surgery. This procedure will enable treatment of the 30% of patients diagnosed with severe aortic stenosis each year who are considered too high-risk for traditional surgery.

At St. John Providence Health System, our Passion for Healing extends to future generations who will beneﬁt from this work.

Dr. Maryland would be happy to hear your PATRICIA A. MARYLAND, Dr.PH thoughts and questions about health care reform. President and CEO of St. John Providence Health System Write her at [email protected]. AND-INISTRY-ARKET,EADER !SCENSION(EALTH-ICHIGAN 20120611-NEWS--0017-NAT-CCI-CD_-- 6/8/2012 10:09 AM Page 1

June 11, 2012 CRAIN’S DETROIT BUSINESS Page 17 Health Care Extra FCC rule boosts use of patient sensors

BY JAY GREENE increase the number of telemedi- care have been pushing the FCC to CRAIN’S DETROIT BUSINESS cine applications. allow MBANs for several years. Mary Cooley, Priority Health’s di- Technologies could include a The new buzz word in telemedi- rector of care management, said heart rate/respiratory monitor the cine is medical body area net- advanced telemedicine technology size of a pack of matches, Coss said. works, or MBANs. It’s a phrase — like MBANs not only will cut costs “Once the bandwidth is ap- ultimately a federal rule — that and improve quality, but also will proved,” he said, “we are there in a could let hospitals, nursing homes, address coming year.” home health agencies, physicians shortages of If a patient has a respiratory prob- and other providers place wireless health care pro- lem like sleep apnea, a sensor can sensors on patients’ bodies to re- fessionals. recognize during the night if breath- motely monitor their health. “We will con- ing has stopped long enough to war- Crain’s Detroit Business has two Last month, the Federal Communi- tinue to use more rant an alert that wakes the patient. cations Commission voted unani- and more tech- Another possibility is alerting exciting statewide contests for you mously to allocate a wireless radio nology as it be- caregivers or nurses if a patient to brag about your wonderful spectrum between 2.36 and 2.40 gHz comes available, has fallen — or might fall. for medical body area networks. because this is “When a patient is getting ready employees and your workplace. MBANs are wireless sensors the future of to get out of bed, the sensor sends Cooley with low-power transmitters — medicine,” said out an alert to turn on the light in Enter the competitions today. about the size and shape of a Band- Cooley, a registered nurse. “We the room,” Coss said. “Or a voice Aid — that capture medical data. have a primary care (physician) comes on and says, ‘Don’t get out The data are then wirelessly shortage. This will augment deliv- of bed, we will come help.’ This transmitted to a patient monitoring ery of services, and people won’t cuts down on falls.” system and then on to a health care have to wait as long to receive care.” Experts estimate the use of dis- company that cares for patients. Paul Coss, director of marketing posable MBAN sensors could save MBAN devices are designed to for wireless technologies for about $2,000 to $12,000 per patient. monitor respiratory and heart Boston-based Philips Healthcare, Nearly 17 million people access rates, blood pressure, tempera- said his company and others are health data on their mobile phones ture, pulse and blood glucose lev- quickly moving to develop MBAN in the United States, a 125 percent els. The tiny devices could vastly technology. Philips and GE Health- increase since 2010, the FCC said.

From Previous Page partments, entering home health “If insurers have to pay for Cool Places—DEADLINE June 15. “We have four new high-defini- programs or whom physicians be- (telemedicine), providers’ appetite tion cameras (added to the lieve could benefit from daily mon- will increase and services will get Healthiest Employers—DEADLINE August 13. VideoDoc units) that allow physi- itoring could use smartphone ap- paid through appropriate use of cians to see every hair and fiber on plications, Cooley said. telemedicine,” Cooley said. “It is patients,” Geerer said. “We have “We are developing a home- the wave of the future and an effi- For details and to nominate your company, go to been waiting on the encryption based model of care for people not cient and effective way of helping products to be installed so the cam- adequately served by the inpatient to make decisions.” crainsdetroit.com/nominate. eras can record what is seen.” delivery system,” said Cooley. Jay Greene: (313) 446-0325, Jems Technology is one compa- But because one of the barriers [email protected]. Twitter: ny that has developed encryption to the expansion of telemedicine @jaybgreene software that allows telemedicine has been haphazard and inconsis- devices on iPads, smartphones or tent provider reimbursement, Rep. other devices to securely transmit Gail Haines, R-Lake Angelus, has video images or data on patients, sponsored House Bill 5408 to en- said Jems CEO Kevin Lasser. courage Blue Cross Blue Shield of “We also sell a full mobile Michigan to use telemedicine more (telemedicine) cart and a more often as a less costly alternative to rugged version for use in ambu- physician visits. lances through Michigan compa- Rep. Matt Lori, R-Constantine, nies,” Lasser said. also has sponsored HB 5421, which Jems has sold its software and does the same for other health in- telemedicine devices in Michigan surers in Michigan. Both bills to Sparrow Hospital in Lansing and were approved by the House and Project Healthy Living in Detroit, and Senate and are awaiting signature is negotiating with several other by Gov. Rick Snyder. hospital systems in metro Detroit Haines, chair of the Michigan and Michigan, Lasser said. House Health Policy Committee, said At Henry Ford, Geerer said new the bills will expand private cover- encryption software technology age of telemedicine services by has allowed physicians at one hos- prohibiting health insurers from pital to consult with other physi- requiring face-to-face contact for cians and patients at another hos- billing. pital without fear of violating “This is a win for consumers. It patients’ medical privacy. will reduce the costs of health “We can do virtual visits with care, address the physician short- patients at home or in the hospi- age issue that we have known is tal,” Geerer said. coming, and it will fit well with Mary Cooley, Priority Health’s di- Michigan’s geography” because of rector of care management, said remote locations where there are Priority and its parent group, few hospitals and doctors. Grand Rapids-based Spectrum So far, 12 states — California, Health, are coordinating a plan to Colorado, Georgia, Hawaii, Ken- provide medical mobile applica- tucky, Louisiana, Maine, New tions for smartphones to patients Hampshire, Oklahoma, Oregon, with heart failure and diabetes. Texas and Virginia — have enact- “We can shoot messages to help ed legislation requiring private- them self-manage their illness, and sector insurance companies to pay they can enter clinical data via for telemedicine services, al- their smartphones to monitor though rates may be lower than for their conditions,” Cooley said. office visits. “Not all patients want (home Cooley said health insurers al- monitoring) boxes in their homes. ready are expanding telemedicine They may be open to a handheld de- payments to providers, but new vice that is portable,” Cooley said. video technologies are challenging Hundreds of patients discharged existing payer reimbursement from hospitals and emergency de- models. 20120611-NEWS--0018-NAT-CCI-CD_-- 6/8/2012 10:11 AM Page 1

Page 18 CRAIN’S DETROIT BUSINESS June 11, 2012 Health Care Extra Healthy start for medical kiosks; Lions kick in $20K

BY JAY GREENE screen and is customized based on CRAIN’S DETROIT BUSINESS the type of company and users. More than 20 Medical Imagineering LLC, the medical condi- first company launched out of Hen- tions are ex- ry Ford Health System’s Innovation In- plained. stitute, is off to a quick start this Besides the year with several dozen sales of its kiosks, Medical healthy-living medical kiosks. Imagineering Last month, the Detroit Lions also sells a vari- Charities announced it awarded a ety of other $20,000 grant to Henry Ford’s health educa- Health Law Is Complex school-based and community tion products Dulchavsky health program to purchase nine through its web- of the interactive health kiosks for site. They include textbooks, and Understanding It Can Be Simple several elementary and middle software that teaches how to give schools in Detroit, including De- medical procedures. troit Edison Public School Academy In its first year of operation in and Ford High School, and in War- 2011, Medical Imagineering ren at Fitzgerald High School. grossed $40,000 in sales with five CEO Scott Dulchavsky, M.D., part-time employees, Dulchavsky who also is Henry Ford Hospital’s said. This year, he said, the compa- chairman of surgery, said more ny expects to generate $100,000 to than 50 kiosks have been sold to $150,000 in revenue. churches, companies and schools Medical Imagineering is partial- the past year. He projects more than ly funded by Henry Ford, Health Al- 100 sold by the end of the year. liance Plan of Michigan and the Troy- Gain insight and understanding Each kiosk has a 20-inch touch based William Davidson Foundation. at hallrender.com. 201 West Big Beaver Road | Suite 1200 | Troy, MI 48084 | (248) 740-7505 Oakwood plans $13.5M renovation Units will be renovated and change floors in an upcoming CON Roundup $13.5 million capital project at Dearborn’s Oakwood Hospital and Medical Center. that will hold 99 beds; $7.4 million. The plan, approved last month, Ⅲ Rochester Endoscopy and is part of a five-year initiative to Surgery Center, Rochester Hills: Re- upgrade the hospital and will like- locate surgical outpatient facility ly begin in January. The renova- and its operating rooms into a tion is expected to take 1½ years new, 14,000-square-foot space also and shift beds at the hospital. in Rochester Hills; $5.6 million. Among the changes is the con- Ⅲ Trilogy Healthcare of Oakland II Touching Lives and Leading version of the pediatrics unit’s LLC, Novi: Build and operate a 60- semi-private rooms that have a ca- bed, 34,459-square-foot nursing pacity for 30 beds to 15 private home; $4.8 million. With Results! rooms. Ⅲ Riverview Health and Rehab Cen- Other changes include the moth- ter, Detroit: Add 20 ventilator pool As pioneers in medical care financial recovery, Advomas® seeks to er-baby unit swapping floors with beds; $3.3 million. the antepartum unit: Patients in Ⅲ St. Mary’s Nursing and Rehab partner with healthcare providers to improve eligibility outcomes and labor that need critical care will be Center, St. Clair Shores: JDL Invest- eading with Results

L third party recovery efforts at bedside and to electronically deliver real moved from the fourth to the third ments-St. Mary LLC, a subsidiary of floor, closer to the operating and Southfield-based nursing and re- time notice of results with our in-house developed, web-based products. delivery rooms. All semi-private habilitation operator Ciena Health- rooms in the new fourth-floor care, is planning to add a wing to Since our inception, Advomas has recovered almost $3 billion mother-baby unit will be convert- the nursing center. The center pro- ed to private rooms, and additional poses to lease the new 15,000- of uncompensated care and helped nearly 265,000 patients computer stations will be placed square-foot wing from JDL Invest- secure coverage. throughout to make electronic ments for 15 years and replace 12 medical records more accessible. existing beds and add 28 beds; $3 An 18-bed private nursing unit million. And when you hire Advomas, your hospital is guaranteed the highest is also planned for the north and Ⅲ Vibra Transitional Care Center, return on investment possible from an eligibility services partner. east wings of the 10th floor. They Lincoln Park: Open a nursing will replace the current medical home with 20 special pool beds for To learn more, please visit advomas.com resident and physician sleeping those with spinal cord injuries or rooms, which are being relocated traumatic brain injuries; $2.7 mil- or call 248.989.4200. elsewhere in the hospital. lion. A portion of the eastern eighth Ⅲ Romeo Continuing Care Inc., floor will also be renovated to cre- Romeo: Relocate the 33-bed facility 335 East Big Beaver ate room for five new private beds. to the newly constructed, 25,000- Suite 100 The following are selected fil- square-foot facility and become Troy, MI 48083 ings and decisions from May 1-31: Romeo Nursing Center; $2.5 million. Letters of intent: Ⅲ Macomb Wellness Center, War- Filings approved: ren: Leasing and operating a 99- Ⅲ Eastwood Convalescent Center, bed skilled nursing facility that of- Detroit: Move to a new building fers rehabilitation therapy and and add 66 beds to create a 138-bed long-term care; $15 million. facility; $10.1 million. Ⅲ Lakeside Manor Nursing and Re- Ⅲ William Beaumont Hospital, habilitation Center LLC, Sterling Troy: Add one Elektra Infinity Heights: Construct a two-story, MRT unit; $5.9 million. 69,695-square-foot nursing facility — Meghana Keshavan 20120611-NEWS--0019-NAT-CCI-CD_-- 6/8/2012 9:54 AM Page 1

June 11, 2012 CRAIN’S DETROIT BUSINESS Page 19

CALENDAR members who preregister by June 13; site: www.detroitchamber.com. bers, $99 nonmembers, $158 to attend 6234; email: lauren.ayles@michigan- CRAIN’S HONORS $10 at the door. Contact: (313) 872-7850; and join ESD at a 50 percent discount diversitycouncil.org; website: www. website: www.adcraft.org. on first year’s membership, $10 off with michigandiversitycouncil.org. a group or multicourse registration. ENTREPRENEURS JUNE 26 Contact: Leslie Smith, (248) 353-0735, Unlocking the Potential of Women at FRIDAY DEC Annual Member Reception. 4:30-7 Join Crain’s Detroit Business and ext. 152; email: [email protected]; web- Work — and in Michigan. 11:30 a.m.- JUNE 15 site: www.esd.org. p.m. June 27. Detroit Economic Club. Fifth Third Bank, in partnership 1:30 p.m. Inforum. With Joanna Barsh, With Bill Ford, executive chairman, with the Entrepreneurs’ director, McKinsey & Co. Detroit Ath- Starting Your Own Business. 9 a.m.-4 Ford Motor Co. Rattlesnake Club, Organization and the Michigan Women’s Empowerment Forum: Detroit. $45 DEC members, $100 guests letic Club. $50 Inforum members, $70 p.m. Ann Arbor Spark, Ann Arbor Lessons Learned on the Way up the Economic Development Corp., as nonmembers, $700 table of 10 (re- State Bank, Michigan Small Business of members, $100 nonmembers. Con- Ladder. 8:30-11 a.m. June 21. Michigan they honor the winners of Crain’s served seating). Contact: (877) 633- & Technology Development Center, tact: (313) 963-8547; email: info@econ Diversity Council, Michigan First ninth annual Salute to 3500; website: www.inforum and others. Spark East, Ypsilanti. $25. club.org; website: www.econclub.org. Entrepreneurs, 7:30 a.m.- 1 p.m. Credit Union. With Heather Paquette, michigan.org. Contact: (734) 761-9317; website: office managing partner, Detroit, June 26 at the Detroit Golf Club. www.annarborusa.org. KPMG LLP; Lisa Webb Sharpe, senior ESD Annual Dinner. 5:30-9:30 p.m. June Manoj Bhargava, CEO of Living Membership Reception. 5:30-7:30 p.m. vice president for finance and admin- 27. Engineering Society of Detroit. Essentials LLC and creator of 5- Detroit Regional Chamber. Infinity istration, Lansing Community Col- Featuring the ESD C&D Awards, the Hour Energy, will share his “non- and Ovation Yacht Charters, lege; and Denise Yee Grim, executive ESD Alpha Awards and the ESD Lead- MBA approach to growing a Detroit Port Authority — Detroit COMING EVENTS director, Asian Pacific American ership Awards. The Fillmore, Detroit. business,” and award winners Riverfront. $15 chamber members; Master Series: Successful Reflective Chamber of Commerce. Michigan $125 ESD members, $150 nonmembers, will join a panel to discuss their preregistration required. Contact: Management. 8 a.m.-noon. June 19. En- First Credit Union, Lathrup Village. table of 10 $1,125. Contact: Leslie Smith, experiences. Lauren Rimmell, (313) 596-0384; email: gineering Society of Detroit. ESD head- MIDC members free, nonmembers (248) 353-0735, ext. 152; email: lsmith@ [email protected]; web- quarters, Southfield. $75 ESD mem- $25. Contact: Lauren Ayles, (248) 991- esd.org; website: www.esd.org. Tickets are $50 for current CDB subscribers, $45 for Small Business Association of Michigan members and groups of 10 or more, $75 for nonsubscribers and $74.50 with a special CDB subscription offer. For discounted group rates, call (313) 446- 0300. For more information, go to www.crainsdetroit.com/events. Entrepreneur winners will be MY STUDENTS DON’T announced in the June 18 issue of Crain’s Detroit Business. CALL ME MS. EPILEPSY. TUESDAY JUNE 12 Crain’s CFO of the Year Awards. 1:30-9 Ms. Bird is not deﬁned by her disease. p.m. Crain’s Detroit Business. Final- ists were featured in the May 28 issue She just wants her students to turn of Crain’s and are on the Web. The Inn their homework in on time. at St. John’s, Plymouth. $60 current CDB subscriber, $55 groups of 10 or Fortunately for Lori Bird, she has the more, $85 nonsubscriber, $84.50 special CDB subscription offer. Contact: experts at Henry Ford making sure her (313) 446-0300; website: www.crains detroit.com/events. epilepsy behaves inside and outside of

Marketing Roundtable: Creative Strat- the classroom. As the largest and most egy in Action. 5-7 p.m. Ann Arbor Spark. With Paul Koch, creative experienced epilepsy center in Michigan, strategist, Q LTD. Spark Central, Ann Arbor. Free. Contact: (731) 761-9317; the Comprehensive Epilepsy Center at website: www.annarborusa.org. Henry Ford has overseen more than 50,000 IP in Product Development. 8-11 a.m. patient visits and has performed more than Automation Alley Technology Com- mittee. With Azam Khan, deputy chief 1,000 epilepsy surgeries over the last 15 of staff, U.S. Patent and Trademark Of- fice, and others. Automation Alley years. By bringing together the latest clinical headquarters, Troy. Members preregistration $20, at the door $30; nonmem- trials, brain stimulation systems and surgical bers preregistration $40, at the door $50. Contact: (800) 427-5100; email: techniques, patients like Lori have found [email protected]; website: www.automationalley.com. hope for living complete, active lives.

Government Construction: Building Your Business. 8 a.m.-noon. The De- troit Regional Chamber’s Connection HENRY FORD NEUROLOGY AND Point program, Wayne State Procure- ment Technical Assistance Center, NEUROSURGERY. Detroit Economic Growth Corp. Inter- Michigan’s only program named act with representatives from federal, state and local agencies and prime “America’s Best” the past 13 consecutive contractors that perform on govern- & ment construction contracts. Detroit years by U.S.News World Report. Regional Chamber. Free. Contact: Kel- ly Donoughe, (313) 596-0316; email: kdonoughe@detroitchamber. To learn more or to schedule an com; website: www.connectionpoint detroit.com. appointment with a specialist within

Driverless Car Summit. 7 a.m.-6:30 p.m. 24 hours, visit henryford.com/epilepsy. June 12; 7 a.m.-6 p.m. June 13. Associ- ation for Unmanned Vehicle Systems International. With Gov. Rick Snyder and others. MotorCity Casino Hotel, Detroit. $735 AUVSI members, $835 nonmembers, $300 students. Contact: Lindsay Voss, (703) 845-9671; email: [email protected]; website: www.auvsi.org/dcs. THURSDAY JUNE 14 Beginning of Summer Party. 6-9 p.m. Adcraft PM. Arrive by 6:30 and receive two free drink tickets. Rosie O’Grady’s, Ferndale. Free for Adcraft 20120611-NEWS--0020-NAT-CCI-CD_-- 6/8/2012 9:55 AM Page 1

Page 20 CRAIN’S DETROIT BUSINESS June 11, 2012

CRAIN'S LIST: LARGEST AUTO DEALERS Ranked by 2011 revenue

Company Revenue Revenue Number of new Number of used Address ($000,000) ($000,000) Percent Number of vehicles sold/leased vehicles sold Rank Phone; website Top executive(s) 2011 2010 change dealerships 2011/2010 2011/2010 Penske Automotive Group Inc. Roger Penske $11,556.2 $10,328.4 B 12% 242 154,829 129,652 1. 2555 Telegraph Road, Bloomfield Hills 48302-0954 CEO 150,164 110,083 (248) 648-2500; www.penskeautomotive.com

The Suburban Collection David Fischer 1,221.3 1,054.8 16 32 22,900 14,263 2. 1795 Maplelawn Drive, Troy 48084 chairman and CEO 22,380 12,182 (877) 471-7100; www.suburbancollection.com

LaFontaine Automotive Group Michael LaFontaine 411.4 351.3 17 6 7,946 3,665 3. 2027 S. Telegraph Road, Dearborn 48124 owner and president 7,582 3,481 (313) 561-6600; www.thefamilydeal.com Maureen LaFontaine owner and vice president Prestige Automotive Gregory Jackson 409.7 524.2 -22 3 15,868 1,863 4. 20200 E. Nine Mile Road, St. Clair Shores 48080 chairman, president and CEO 23,367 1,600 (586) 773-2369; www.prestigeautomotive.com

Elder Automotive Group Irma Elder 309.4 376.6 -18 11 3,561 3,710 5. 777 John R Road, Troy 48083 CEO 3,355 4,089 (248) 585-4000; www.elderautogroup.com

Stewart Management Group Inc. Gordon Stewart 265.7 242.5 10 5 5,102 3,787 6. 20844 Harper Ave., Suite 100, Harper Woods 48225 president 4,714 3,954 (313) 432-6200; www.gordonchevrolet.com

Snethkamp Automotive Family Mark Snethkamp 200.0 157.0 27 4 6,150 NA 7. 16400 Woodward Ave., Highland Park 48203 president NA NA (313) 868-3300; www.snethkamp.com

Southfield Dodge Chrysler Jeep Ram Dan Frost 197.5 286.2 -31 NA NA NA 8. 28100 Telegraph Road, Southfield 48034 president 6,958 2,730 (248) 354-2950; southfieldchrysler.com Gary Wood CFO Jim Riehl's Friendly Automotive Group Inc. James Riehl Jr. 141.0 146.0 -3 3 NA NA 9. 32899 Van Dyke Ave., Warren 48093 president and CEO NA NA (586) 979-8700; www.jimriehl.com

Buff Whelan Chevrolet Kerry Whelan-Thieleke 138.2 121.6 14 1 3,721 1,102 10. 40445 Van Dyke Ave., Sterling Heights 48313 president 3,072 1,088 (586) 939-7300; www.buffwhelan.com

This list of auto dealers is an approximate compilation of the largest such businesses in Wayne, Oakland, Macomb, Washtenaw and Livingston counties. It is not a complete listing but the most comprehensive available. Crain's estimates are based on industry analysis and benchmarks, news reports and a wide range of other sources. Unless otherwise noted, information was provided by the companies. Actual revenue figures may vary. NA = not available. B Restated 2010 revenue from $10.7 billion due to discontinued operations. LIST RESEARCHED BY BRIANNA REILLY ■ An expanded version of this list can be purchased at crainsdetroit.com/lists.

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June 11, 2012 CRAIN’S DETROIT BUSINESS Page 21

Real Estate: Brokers on the move in good times NOMINATE HEALTH CARE HEROES Crain’s Detroit Business is seeking ■ From Page 3 nominations for Health Care Heroes, a special report on health care partner at Plante Moran Cresa Ellis brokers Randy Book, Patrich relationship by transferring all of tunities for advancement from professionals that will run Sept. 10. and director of transaction man- Jett, Bob Badgero and Steve Bad- the resources to Mohr. another firm. The program will honor top-notch agement. “Any time you can get a gero, along with their teams; and Lipton remains on the Fried- “One of the things that has his- medical innovators and patient team with the caliber of Ron, Eri- former Newmark Knight Frank man board but won’t take on ac- torically happened in improved advocates who bring new meaning to ca and Mike, it’s definitely going brokers Jeffrey Fenley and Brian tive brokerage listings because times is that firms are in a better “dedication” through their efforts to to benefit our transaction team.” Schwartz and their teams. he’s an exclusive Mohr broker. position to more aggressively re- save lives or improve access to care. McCausland said the company Changes at the corporate level Meanwhile, since BGC formed cruit,” he said. “People want to Winners in five categories will be is in expansion mode. stemming from Grubb & Ellis’ the Newmark Grubb Knight Frank take advantage of transactions honored at a Crain’s event. “We’re trying to track with Chapter 11 bankruptcy earlier brokerage, the brokers who acted and opportunities that are there, Ⅲ Corporate achievement in health what we feel is an improving real this year trickled down to the as independent contractors for they want to be armed with the care: Honors a company that has estate market,” he said. “We’re strategy for the licensing of local Grubb & Ellis need to sign con- most competitive prowess you created an innovative health benefits plan or has solved a problem in health trying to expand our transaction offices. tracts to become part of the com- can and offer the most competi- care administration. business. … Any time you can After Grubb & Ellis declared bined Newmark Grubb Knight tive services you can. So typically have high-quality, experienced bankruptcy, it was purchased by Ⅲ Advancements in health care: Frank Southfield office. when things get better, there’s Honors a company or individual people such as Ron and his team, BGC Partners Inc., owner of New- A source close to the situation movement.” you’re going to take advantage of mark Knight Frank, also based in responsible for a discovery or for said the brokers are expected to Expect more of it, Latessa said. developing a procedure, device or that and have them come to your New York. become part of the new firm with- “The only thing that is always service that saves lives or improve firm. … It is an indication that we The bankruptcy caused a local in the next week. The brokers true of our industry is that it does quality of life. are experiencing quite a bit of conflict because Friedman’s bro- have been reluctant to sign in continue to fluctuate,” he said. Ⅲ Physician: Honors a physician growth in our practice here, see- kers, operating under the New- “Someone now needs to replace whose performance is exemplary. ing increasing opportunities and mark name, couldn’t be merged hopes of reaching a deal that Ⅲ Allied health: Honors an person from the expansion of business … and with the former Grubb office in would provide larger commis- the market leader at Jones Lang sions on the deals they sign, and LaSalle. … Movement begets nursing or allied health fields deemed we need people here to facilitate Southfield because of licensing exemplary by patients and peers. that.” agreements. are also trying to be paid money more movement. You’re starting Ⅲ they did not receive during the to move chess pieces around; Trustee: Honors leadership and At Southfield-based Colliers In- Enter Mohr Partners, which is distinguished service by a health care there will definitely be more ac- ternational Inc., managing direc- retaining the local brokers asso- bankruptcy. trustee. tivity to follow.” tor Paul Choukourian is rebuild- ciated with Newmark. Mitchell CB Richard Ellis Managing Di- A panel of health care judges will ing the team with about a dozen Lipton is managing principal, and rector John Latessa Jr. said the Nancy Kaffer: (313) 446-0412, choose the winners. Submit a hires in the past year, doubling Randall Tarnow and Steve Morris combined broker movement [email protected]. Twitter: nomination at its broker count from 13 to 26. are managing partners. among firms is a product of in- @nancykaffer www.crainsdetroit.com/nominate by During the downturn, Colliers The local group is leasing space creased opportunities — both in Crain’s Deputy Managing Edi- June 11. Questions? Contact Bill lost about 30 brokers, he said. from Friedman, but he has other- the market and due to the appeal tor Daniel Duggan contributed to Shea, enterprise editor, at (313) 446- Hires include former Grubb & wise stepped out of the business of additional resources or oppor- this report. 1626. REAL ESTATE JOB FRONT

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Page 22 CRAIN’S DETROIT BUSINESS June 11, 2012 Synthetic pot: Some store owners say profits, others red flags ■ From Page 1 salers are not selling it to us, but Dangers for biz A&B Liquor Store in Shelby Town- only local vendors, with such high ship stopped selling K2 and Spice profit, raised a flag for us,” he said. Companies like BP North America in late May after selling it for Retailers face trouble for selling ‘cousins’ Inc. and Citgo Petroleum Corp. have “It was hard, because on the one about a year, said owner Wally Retailers who sell synthetic trolled substances. warned their independent dealers hand the product (seemed) legiti- Qarana. “It’s not really a big deal marijuana and other substances Synthetic marijuana is organ- that selling synthetic marijuana is a mate. But on the other hand we re- as far as revenue goes,” he said, es- that mimic illegal substances ic material consisting of differ- violation of their agreement since alized … it was being misused.” timating the store has lost less could be opening themselves up ent plants that are sprayed with the products have been banned by Such products are brand names than $100 a day since it stopped to prosecution. chemicals which mimic THC or the DEA, and they’ll lose the brand’s for synthetic marijuana, banned selling the product, which would In fact, it is illegal under the fed- tetrahydrocannabinol, the ac- banner if they sell it. Some trade by the U.S. Drug Enforcement add up to about $36,000 a year. eral Controlled Substances Act to tive ingredient in marijuana. groups are taking action, as well. Agency. (See story at right.) “We had a store policy of 18 and possess imitations, or “cousins,” When rolled and smoked, the Retailers selling synthetic mari- The decision not to sell them older to purchase it, … (and) I of controlled substances like mar- material produces a high, while juana are putting profit before may have saved Bahnam’s reputa- don’t think we had as much traffic ijuana, cocaine and LSD that meet spiking the user’s blood pres- reputation, and that hurts the in- tion, but it also cost him money. as some stores did.” certain criteria, said Rich Isaac- sure and heart rate. dustry as a whole, said Auday Gas station owners look for new Qarana said since the product son, special agent and public in- In September, the DEA also Arabo, president and CEO of the merchandise to sell because the was labeled as incense, “original- formation officer for the Detroit banned three synthetic stimu- West Bloomfield-based Associated profit margin on fuel is so low. ly, that’s what we thought it was — Field Division of the U.S. Drug En- lants or amphetamines that con- Food and Petroleum Dealers. The convenience store is where we never asked questions about forcement Administration. tain a class of chemicals that The association has set up a tip the profits are, said Bahnam, what people did with it. But it got “If the products that were be- mimic cocaine, LSD, MDMA line for consumers to report busi- whose stations sell gasoline under to a point it was pretty obvious ing distributed met (the) crite- and/or methamphetamine. The nesses that are selling K2 or Spice. the Sunoco, Shell and BP banners. what it was to be used for.” ria, certainly retailers could be synthetic products, popularly re- So far, none of those reported have But it’s still only pennies per item. His decision to sell K2 and Spice prosecuted,” Isaacson said. ferred to as “bath salts” or “plant been AFPD members, Arabo said. “When something is brought to was more about competition than There would be some debate food,” are marketed under names AFPD is visiting businesses re- you where you can make a quick profit, Qarana said: “Other stores because many K2 and Spice such as “Ivory Wave,” “Purple ported through the tip line to edu- $500 … the high profit margin is to were selling it. We were losing packages are labeled as not for Wave,” “Vanilla Sky” or “Bliss.” cate them on the dangers of selling entice people to carry it.” business.” human consumption, he said. Both classes of synthetic prod- the product and to ask them to stop. Bahnam said he has been offered Qarana said he never saw a prob- “But everybody selling and ucts are sold over the Internet, at “If they don’t pull what’s on the product at a cost of $6 with a lem with adults buying the product. everybody using them knows ex- gas stations, party stores, tobacco their shelves, we’ll report them suggested selling price of $30. Based “They seemed normal — didn’t actly what they’re for,” Isaacson or smoke shops and head shops. right away,” he said. on traffic in his store and standard seem shaky, weird or desperate.” said. In Southeast Michigan, syn- “And in another week or two, sales in the market, he estimates he But in the end, community con- The federal agency issued a thetic marijuana has so far we’re going to go revisit these sites could have sold at least 10 packets a cern outweighed competitive fac- temporary ban on five chemicals caused the most issues. to see if they have really pulled day for a profit of $87,600 per store tors, and he pulled it from his used to make synthetic marijua- Users of both synthetic pot and (the products).” each year. shelves. na in March 2011. It extended the synthetic amphetamines exhibit “I have a right to make a deci- David Dabish, owner of two other ban in February while the feder- paranoia, extreme agitation and sion regarding my stores, but I Public pressure Shelby Township businesses, Wood- al government moves to perma- aggression that have led to re- can’t force other stores to do stock Smoke Shop LLC and the near- nently include those chemicals ported cases of extreme violence. Many customers are steering what’s ethical,” he said. “Though by Citgo gas station, said he has on its list of Schedule 1 con- — Sherri Welch some chose to carry this product business from retailers that sell or pulled K2 off his shelves, but de- … a lot more took the same moral have sold the products, and some clined to elaborate on his reasons. ... It was like a marijuana, we Kluge said that she is not aware stand by refusing to sell it.” are picketing those stores. Dabish’s businesses were thought. When we ran out, we nev- of any association members sell- among the first to gain public er reordered it.” ing synthetic pot, but if the associ- scrutiny last month. Dabish had ation found out about any, it would previously sold the products to report them to the police. people of all ages, but once manu- Ethics are key “Everybody has to be account- Liquor License Experience facturers began printing age Issues around abuse of products able in the process, including the guidelines on the package, he like K2 or certain energy drinks store owner,” she said. “Diligence stopped selling it to teenagers, ac- are more complex than they look needs to be done — sometimes (re- cording to a May 24 report in the on the surface, said Jennifer tailers) think they’ve done it … but In Your Corner. online Shelby-Utica Patch. Kluge, president and CEO of the sometimes they’ve been misled.” At that time, Dabish said that he Warren-based Michigan Food and Retailers should have pulled the planned to continue selling K2 or Beverage Association. product as soon as they realized it Spice until it was illegal. But fol- “A lot of times, these products was harmful or that it was being lowing a rally against its sale at come out and it’s not well under- misused, said Frederick Hoffman, his Citgo on June 2, he agreed to stood what they are until there’s a special instructor of legal and ethi- pull the drugs from his gas station. problem.” cal studies at Oakland University’s Sylvan Valero in Sylvan Lake sold Usually, when products are put School of Business Administration. K2 and Spice for just three or four on the shelves and they’re pack- Businesses “have an ethical re- weeks about a year ago, said Nemo aged like incense or energy drinks, sponsibility to not be in the chain of Yaldoo, who owns the business “the average store owner is not an distribution of a product that they with his brother. expert on the products themselves. know can lead to harm,” he said. “Our wholesaler said you can They’re pitched it,” she said. There’s also the issue of poten- make money on this. … You In this case, the vendors them- tial liability. smoke it like regular tobacco. We selves might have provided a clue. “If someone misuses this prod- sell pouches of tobacco, (and) we Retailers interviewed by Crain’s uct, anyone in the chain of supply thought it was just another form said vendors sometimes called, but could be a potential defendant if of it.” sometimes they just showed up someone is injured or dies from But after just a few weeks, Yal- and were selling the products from the use of the product.” doo said he and his brother figured their vehicles. The retailers re- Sherri Welch: (313) 446-1694, out what it was. fused to name the vendors or said [email protected]. Twitter: “We didn’t know if it was legal. they didn’t know their names. @sherriwelch Riverfront: Rock raises $1.2 million ■ From Page 1 their families, he said, with hopes Gilbert are passionate about the nent endowment to maintain and it will prompt future engagement, riverfront. operate the space. volunteerism and interest in the “I had the opportunity to take The conservancy has raised $106 Chris Baker riverfront. Dan and our leadership team down million toward a $140 million goal, [email protected] Riverfront Conservancy Presi- there last year,” he said. “As much Nelson said. dent and CEO Faye Alexander Nel- as Dan is passionate about the city, The conservancy is responsible son said the fundraising was done he hadn’t seen the riverfront in the for developing public spaces on the creatively and quickly. “We ab- way we were able to show it to him.” Detroit riverfront, as well as solutely think that this is a won- The funds are raised under the amenities, programming and the derful example of how individuals conservancy’s capital campaign to Detroit RiverWalk. can come together to make a mean- fund construction and short-term Nancy Kaffer: (313) 446-0412, I Metro Detroit I Grand Rapids I Kalamazoo I Grand Haven I Lansing ingful difference,” she said. maintenance and operations on [email protected]. Twitter: Cullen said that both he and the riverfront and to fund a perma- @nancykaffer 20120611-NEWS--0023-NAT-CCI-CD_-- 6/8/2012 5:19 PM Page 1

June 11, 2012 CRAIN’S DETROIT BUSINESS Page 23 Racing: Horse tracks look for state help to get out of slump ■ From Page 3 his track’s land. Not the business, but the valuable acreage. RACE RESULTS He’s not selling, but if the legis- Here’s a look at how horse racing tracks in Michigan fared over the past two seasons: lation fails, he likely will. Hazel Mount Northville Sports “The minute we lose money, Park Pleasant Northville Racing Creek we’re on our way out. If we can get Raceway Meadows Downs Corp. Raceway Total these changes, we’re talking about 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 20 years more of business in Live race dates 62 50 10 30 30 48** 27 0** 32 33 203 161 Northville, of strong business Total dates* 361 361 256 258 211 361 148 0 361 360 1,632 1,340 in Hazel Park,” Live wagering $5M $4.1M $42,787 $146,504 $1.3M $2.4M $903,763 $0 $1.2M $1.3M $9.9M $7.9M he said. Simulcast Northville wagering $72.5M $64.2M $2M $1.6M $30.6M $53.5M $19.12M $0 $21.2M $17.8M $159.8M $137M Downs is still in Wagering total $77.4M $68.3M $2M $1.7M $32M $55.9M $20.02M $0 $22.4M $19M $169.6M $144.9M the black, but Winning tickets barely. The payout $59M $51.3M $1.6M $1.3M $24.7M $43.2M $15.44M $0 $17.1M $14.7M $129.8M $110.5M track has lost State racing tax $2.5M $2.3M $68,842 $55,223 $1M $1.9M $669,197 $0 $741,076 $621,340 $5.6M $4.8M customers to the Note: Figures rounded. Detroit and Indi- * Live and simulcast ** Northville Downs assumed the 2011 race meet license and simulcast race permit of Northville Racing Corp. when NRC opted not to conduct races. Carlo an casinos. Source: Michigan Gaming Control Board “They’ve taken 60 percent of my business. I’ve been able to main- Ohio and Pennsylvania and set up when the track last turned a profit. Gilbert. The joint venture oversees at $15.2 billion in 2003 and lingered tain a little profitability, but not shop and have the added bonus of Without the new bills, Adkins Gilbert’s new casinos in Cleveland around that mark until 2008, when much,” Carlo said, noting that the larger purses,” Atkins said. “Peo- gives Hazel Park another year be- and Cincinnati. it began a sharp three-year de- track made about a $225,000 profit ple have other options these days.” fore it’ll have to close. That might Pennsylvania has been a desti- cline, The Daily Racing Form re- last year. Horses used to run live races up go for all the Michigan tracks. nation for race horse owners in reported in January. “The city made more money to six nights a week, and more “If we don’t get something done, cent years, and collected $1.3 bil- Total wagering was $10.7 billion than I did,” he said. Northville’s than $1 million was often wagered there’s a very good chance the in- lion in slot revenue in 2011. Twelve for 2011, which was a 5.65 percent cut for the wagering was $230,232. on some of those nights. Now, dustry won’t survive another cents of each slot machine dollar is decline over 2011 and the lowest Hazel Park Raceway, which Hazel Park is down to live races year,” he said. “We’re not looking earmarked for the Pennsylvania level of wagering since 1995. three nights a week, and may not for a handout. We’re looking to use opened in 1949, has been losing Race Horse Development Fund. Purses nationally rose nearly 3 reach $1 million wagered over sev- our own products.” about $1 million annually since Purses were $3 million in 2006, percent in 2011 to $1.05 billion, the the mid-2000s, said Daniel Adkins, eral nights, Adkins said. The state also collects a small the year slot machines were legal- first annual increase since 2007. the track’s vice president. At its peak, Hazel Park em- tax off simulcast winnings, called ized, according to the annual re- The figures used by the newspa- “It’s crisis time,” he said. ployed up to 500 people. Today, it’s breakage, which is funneled back port compiled by the Pennsylvania per come from Lexington, Ky.- Other states are luring the fewer than 100, he said. Construc- to local municipalities to offset ser- Gaming Control Board. Last year, horsemen, and casinos are siphon- tion of a 50,000-square-foot casino vices such as police and fire pro- purses at the state’s six horse based Equibase Co. LLC, a national ing the gamblers. stopped $15 million into its $48 mil- tection. Last year, local govern- tracks totaled $181.3 million. database of industry statistics. “My horsemen and my farmers lion budget when the effort to le- ments got $597,473 in breakage, The horse racing industry na- Bill Shea: (313) 446-1626, are going to leave the state of galize slots at Michigan race down from $718,954 in 2010. tionally has been on the decline. [email protected]. Twitter: Michigan because they can go to tracks died in 2004, he said. That’s The city of Hazel Park, which U.S. horse race wagering peaked @bill_shea19 faces a $1.5 million budget deficit in the current fiscal year and is considering laying off 10 police officers and firefighters, saw its share from Hazel Park Raceway decline 14 percent last year to $287,345. The state collects a 3.5 percent tax on simulcast wagers but nothing on live races. That tax fell to $4.7 million in 2011 from $5.5 mil- AT KP - WE’RE A TEAM. WHEN WE PARTNER WITH lion in 2010. YOU ON A PROJECT YOU BECOME AN EQUAL PART OF Competition THE TEAM. WE WORK TOGETHER TO ENSURE A QUALITY The horsemen are as worried as PRODUCT IS DELIVERED ON TIME AND ON BUDGET. the track operators. The bills are “absolutely essential to keep the racing industry alive in BOB ROSE IS THE NEWEST MEMBER OF THE KP SALES Michigan,” said Brett Boyd, presi- & MARKETING TEAM. HIS ENERGY AND PASSION FOR dent of the Okemos-based Michigan Harness Horsemen’s Association, THE PRECAST INDUSTRY IS WHAT SETS BOB APART. which has about 1,000 members. BOB’S GUIDANCE IN THE DESIGN AND PLANNING “Without some change in the near future, those (horse) farms OF YOUR PROJECT WILL ENSURE AN EXCEPTIONAL probably will become inactive and PRECAST EXPERIENCE FROM THE START. CONTACT the horsemen will move.” He said the equine industry di- BOB TO LEARN HOW PRECAST COULD ENHANCE YOUR rectly supported about 24,000 jobs NEXT PROJECT! statewide seven years ago. Today, it’s half that. Michigan’s 24 commercial and tribal casinos have long opposed any expansion of gambling in the state, and they successfully lobbied against legislation that would have legalized horse track slots in 2004. Other competition is out of state. A new casino opened recently in Toledo, and Ohio recently legalized video slot machines at race tracks. Scioto Downs near Columbus added 2,000 slots, and Thistledown Race- course near Cleveland has a deal in which its operator, Rock Ohio Cae- sars LLC, will pay a $50 million fee to add slots, according to multiple Ohio media reports. Rock Ohio Caesars is a joint ven- WWW.KERKSTRA.COM ture of Las Vegas-based Caesars En- tertainment Corp. and Rock Gaming LLC, which is owned by Dan 20120611-NEWS--0024-NAT-CCI-CD_-- 6/8/2012 5:18 PM Page 1

Page 24 CRAIN’S DETROIT BUSINESS June 11, 2012 A123: Troubled battery company’s growth plan has doubters ■ From Page 3 There’s also speculation of a po- hirings, A123 filed a form stressing stock price, which hit its lowest brids could reach more than 39 mil- coming out of its Livonia plant tential sale if the company can’t its financial difficulties to the SEC. mark of 82 cents April 4. lion vehicles in 2017 and may create pushed back A123’s projections of raise enough cash to continue. Its troubles stem from failure of The problem was linked to an in- a $6.9 billion market for energy stor- turning a profit to the second half of A123 executives said that its busi- its lithium-ion batteries — a Fisker correct calibration of one automat- age devices, according to Boston- 2013, from later this year. ness model works; the plan is for Karma plug-in hybrid fitted with an ed welding machine in Livonia. The based research firm Lux Research Inc. To stop the bleeding, the compa- new contracts to trim its operating A123 battery failed in April during a flaw could cause an electrical short, A123 also manufactures batter- ny last month raised $50 million in costs, boosting company viability. test by Consumer Reports. Replacing leading to failure of the battery, the ies for the BMW hybrid 3-Series senior unsecured convertible notes the defective batteries is expected to company said. and 5-Series cars and GM’s all-elec- and warrants from institutional cost A123 $66.8 million, including a Despite manufacturing problems tric 2013 Chevy Spark, which A123 buyers. But the battery maker Contracts in lieu of problems $15 million inventory charge. The at its Livonia plant and slow electric will begin supplying in the last needs more cash to keep it afloat un- Days before it announced the announcement devastated A123’s vehicle sales, Jason Forcier, vice quarter of the year. til it’s able to become profitable, or president of A123’s automotive solu- “In automotive, I think we’re sale may be imminent, Lew said. tions group, said the company’s still doing very, very well,” Forci- A123 hired advisers last month to power grid and commercial trans- er said. evaluate the company’s financing portation businesses are “more A123 is also set this week to de- options, which could mean it is than offsetting” problems with elec- but a new nanophosphate lithium- evaluating potential buyers. The tric vehicle batteries. ion technology expected to operate company would not disclose the A123 gets nearly 40 percent of its under extreme temperatures — name of the advisory firm. revenue from grid energy storage which has been a shortfall of lithi- Lew said A123’s Livonia and Ro- projects and markets like medical um-ion batteries in automotive. mulus operations hold value to in- and communications, said Dan Bor- ternational battery makers looking gasano, A123’s public relations man- for North American manufactur- ager. Commercial transportation Turnaround or sell ing. The plants could be a good buy and passenger vehicles make up the But as it seeks to recover, A123 for South Korean battery makers remaining 60 percent. continues to mount losses in a slow like SK Holdings or another interna- The company anticipates the electric vehicle market. tional battery supplier, he said. business moving to 50 percent trans- A123 finished last quarter, which Forcier said the company will portation and 50 percent power grid ended March 31, with a $125 million take any offers seriously because it and other markets, Borgasano said. net loss. Its losses have grown each has a fiduciary responsibility to its A123 supplies lithium-ion batter- quarter since going public. shareholders, but he would not ies out of its Livonia plant to South- Nissan Motor Co. has only sold speculate on any possible deals. ern California Edison, Maui Electric Co., 12,000 of its electric Leaf cars in the It’s unclear whether the U.S. gov- Spain’s Red Eléctrica Corporación SA U.S. since December 2010, Wall ernment would weigh in on a deal. and others. Its commercial trans- Street Journal reported last month. A123 received a $249.1 million grant portation customers include FedEx Slow sales led GM to shut down from the U.S. Department of Energy in Corp and India-based Tata Motors Ltd. Volt production for five weeks dur- 2009. In April, the DOE extended its Maui Electric installed an A123 ing April and May, and the au- deadline until December 2014 to use battery at a substation in the resort tomaker plans a three-week shut- the funds, which were set to expire community of Wailea. The down this summer at the at the end of this year. $2 million battery and controls will Detroit-Hamtramck plant that as- A local financial advisory execu- supply 1 megawatt-hour of energy sembles the Volt. tive, who spoke on the condition of storage to reduce peak load by as Brett Smith, co-director of the anonymity, said turnaround com- much as 15 percent, according to a manufacturing, engineering and panies are scrambling to get in the report by Greentech Media Inc. technology group at Ann Arbor- door at A123 to “right-size the com- A123 has 10 commercial trans- based Center for Automotive Research, pany and fix its manufacturing portation projects set for production said the transition from “hype to re- processes.” What is your greatest later this year, Michael Lew, senior ality” presented a challenge that Forcier said A123 and its execu- analyst, energy creation and energy lithium-ion battery makers weren’t tives remain bullish on the compa- business challenge? efficiency for New York-based in- ready to face. ny’s future. vestment firm Needham & Co. LLC, “The realistic expectation for vol- “We seem to have created some We have the team for that. wrote in an analyst note last month. ume production remains un- interesting press, but the company “However, we believe all these known,” he said. “Getting to a point remains in good shape,” he said. “ I programs are at risk given A123’s where lithium-ion batteries are vi- do believe we’ll solve the funding is- Our client teams are focused on recent shortcomings, and we would able is going to be longer than we’ve sue, and A123 is in a good position be surprised if customers have not been led to believe, and that’s going for the future. We’ve taken a lot of providing insight for your greatest already begun to seek alternate bat- to be a real problem with a lot of heat over the years, but we’re fight- tery suppliers,” Lew wrote. these companies.” ers and we’ll keep moving for- business and legal challenges along The losses have A123 seeking ward.” with foresight for the Timetable a concern? more cash to continue to operate. Dustin Walsh: (313) 446-6042, The $68 million recall campaign [email protected]. Twitter: issues on the Analysts like Lew are also skep- linked to the defective batteries @dustinpwalsh tical of A123’s planned timetable to horizon. hit profitability by 2013. “If I’m an auto manufacturer and see the sorts of issues A123 is having, I may look to another com- DREAM CRUISE pany, one with more experience,” Lew said. “The (quality control) is- PREMIERE PARKING LOT AVAILABLE sues were surprising, and there are companies like Johnson Controls BEST LOCATION TO RENT FOR THE and LG Chem that have significant automotive experience coming to DREAM CRUISE WEEKEND. market.” Forcier said the company has re- DIRECTLY ON WOODWARD, solved its quality control issues BETWEEN 11 AND 12 MILE ROADS. and that its automotive unit also continues to grow. Available 8/18–8/19 In the midst of its manufacturing shortcomings, A123 announced new automotive contracts with HOLDS UP TO 50 CARS Chinese automaker Zhejiang Geely Holding Group, the parent company PLUS COVERED PARKING FOR 8-10 CARS McDonald Hopkins PLC of Volvo Car Corp. It also announced 39533 Woodward Ave., Suite 318, Bloomfield Hills, MI 48304 • 248.646.5070 contracts to supply 12V engine WHOLE LOT ONLY Stephen M. Gross start batteries for use in start-stop systems, or microhybrid vehicles, (NO INDIVIDUAL SPOTS - PLEASE DO NOT INQUIRE) Detroit Managing Member for three European automakers, in- $10,000 Chicago • Cleveland • Columbus • Detroit • Miami • West Palm Beach cluding McLaren Automotive and an unnamed German automaker that mcdonaldhopkins.com will use the battery in a 2013 model- PLEASE CONTACT [email protected] Carl J. Grassi, President year passenger vehicle. The global market for micro-hy- 20120611-NEWS--0025-NAT-CCI-CD_-- 6/8/2012 5:36 PM Page 1

June 11, 2012 CRAIN’S DETROIT BUSINESS Page 25 Covisint: Hot market is trigger, says CEO Paul www.crainsdetroit.com ■ EDITOR-IN-CHIEF Keith E. Crain From Page 1 PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] by, chief market analyst in the so far as to engage Morgan Stanley, EXECUTIVE EDITOR Cindy Goodaker, (313) 446- Bloomfield Hills office of Loomis the New York-based investment 0460 or [email protected] Fast starts serve IT-related IPOs well MANAGING EDITOR Jennette Smith, (313) 446- Sayles & Co. LP. banker, as the underwriter. But 1622 or [email protected] “It’s been a long time coming. Recent IT-related IPOs, partic- large and midsize companies, the imploding U.S. economy soon DEPUTY MANAGING EDITOR Daniel Duggan, (313) The IPO cupboard has been bare. put a halt to those plans. 446-0414 or [email protected] ularly inside the hot world of sold 6.3 million shares at $13 SENIOR EDITOR Bob Allen, (313) 446-0344 or The lack of IPOs here has been a cloud computing, have taken off. each, above the predicted pre-IPO Paul said last Thursday that he [email protected] reflection of Michigan’s troubles is restricted from discussing de- WEST MICHIGAN EDITOR Matt Gryczan, (616) 916- Cloud computing uses remote range of $10-$12. It closed the first 8158 or [email protected] the last 15 years,” said Sowerby, servers hosted on the Internet to day at $14.08 and opened the next tails about an IPO by a so-called SENIOR EDITOR Gary Piatek, (313) 446-0357 or who said the timing of an IPO store and manage data. day at $16.85. quiet period enforced by the [email protected] SENIOR DESIGNER Jeff Johnston, (313) 446-1608 now is helped “because the view Splunk Inc. Prior to its IPO on Bazaarvoice Inc. On Feb. 23, U.S. Securities and Exchange Com- or [email protected] from Wall Street of Michigan is April 19, San Francisco-based Austin, Texas-based Bazaarvoice mission that prohibits company DATA EDITOR Brianna Reilly, (313) 446-0418, more favorable, now, than it has Splunk (Nasdaq: SPLK) — which (NYSE: BV), which manages on- officials from talking about an [email protected] WEB EDITOR Gary Anglebrandt, (313) 446-1621, been.” uses the cloud to help companies line customer reviews and com- IPO from the time an underwriter [email protected] Paul can only hope Covisint analyze huge amounts of data munities for clients such as Wal- is engaged to 45 days after the EDITORIAL SUPPORT Robertta Reiff (313) 446- 0419, YahNica Crawford, (313) 446-0329 does as well as a public company generated by computers, machin- Mart Stores Inc., sold 9.5 million IPO. NEWSROOM (313) 446-0329, FAX (313) 446- as those two have. Syntel opened ery, sensors and social networks shares at $12, well up from the $8- Paul said he was even prohibit- 1687 TIP LINE (313) 446-6766 at $7.53 a share and was at $57 last — was expected to issue shares in $10 range the company predicted ed from saying who the under- REPORTERS week. Rofin-Sinar opened at $4.75 a range of $11-$14. Instead, it is- in the days leading up to the IPO. writer is but that the underwriter Daniel Duggan, deputy managing editor: Covers sued 13.5 million shares at $17 At the end of the first trading day, real estate. (313) 446-0414 or [email protected] and was at $19. was engaged “in the last two Jay Greene, senior reporter: Covers health care, J. Derrick Wood, a senior ana- each and by 11:16 a.m. they had they were trading at $16.51. weeks” and that he stands by past insurance, energy utilities and the environment. climbed to $31.75, about where Jive Software Inc. On Dec. 13, (313) 446-0325 or [email protected] lyst for San Francisco-based on-the-record comments made Chad Halcom: Covers litigation, higher education, Susquehanna Financial Group LLP, the share price remains today. Palo Alto, Calif.-based Jive (Nas- about the company’s plans for non-automotive manufacturing, defense Demandware Inc. On March daq: Jive), which helps compa- contracting and Oakland and Macomb counties. thinks a valuation of $1 billion for spinning off Covisint. (313) 446-6796 or [email protected] Covisint might be high. “That’s op- 14, Burlington, Mass.-based De- nies communicate by using social Last June, after being named Tom Henderson: Covers banking, finance, mandware (NYSE: DWRE), media, sold 13.4 million shares at technology and biotechnology. (313) 446-0337 or timistic,” he said. “I think some- Compuware’s CEO, replacing [email protected] thing more realistic would be which offers a cloud-based plat- $12 each, up from its pre-IPO founder Peter Karmanos Jr., Paul Nancy Kaffer: Covers commercial real estate, the form to allow enterprises to easi- guidance of 11.7 million shares at city of Detroit and Wayne County government. $800 million, but it depends on Co- told Crain’s that the company (313) 446-0412 or [email protected] visint’s growth rates at the time of ly launch e-commerce sites and $8-$10. The stock climbed to $15.05 would wait until Covisint had an Bill Shea, enterprise editor: Covers media, create mobile apps, issued 5.5 by the end of the day. advertising and marketing, the business of sports, the IPO.” approximate valuation of $1 bil- and transportation. (313) 446-1626 or Wood said he expected the IPO million shares of stock at $16 Brightcove Inc. On Feb. 17, lion before it would do an IPO. [email protected] each. The next morning, shares Boston-based Brightcove (Nas- Nathan Skid, multimedia editor. Also covers the to happen early in 2013 and that “The plan is to take it public, but food industry and entertainment. (313) 446-1654, based on recent IPOs for compa- hit $24.50. daq: BCOV), which markets an to retain 80 percent ownership,” [email protected] Proofpoint Inc. On April 19, online video streaming platform, Dustin Walsh: Covers the business of law, auto nies that do cloud computing, all he said. With a valuation of $1 bil- suppliers and steel. (313) 446-6042 or of which exceeded expectations, Sunnyvale, Calif.-based Proof- sold 5 million shares at an open- lion, “that would generate [email protected] point (Nasdaq: PFPT), which of- ing price of $11. The stock closed Sherri Welch: Covers nonprofits, services, retail $1 billion isn’t out of the question. $200 million in cash for Com- fers cloud-based data security that day at $14.30. and hospitality. (313) 446-1694 or “I think a $1 billion valuation puware. That would get everyone’s [email protected] and secure communications for — Tom Henderson could be optimistic, but the mar- eyes open to what the capabilities ADVERTISING ket will decide,” said Aaron are and would bring a new class of ADVERTISING DIRECTOR Marla Wise, (313) 446- 6032 or [email protected] Schwartz, an equity analyst for did a favor by killing the first makes it much more market ac- investors in.” SALES INQUIRIES: (313) 446-6052; FAX (313) New York-based Jefferies & Co. planned IPO for Covisint. cessible than it would have been,” In July 2010, Paul told Crain’s 393-0997 Inc., who said that the recession “The size of the company today he said. “It was too small then, that the rationale for a Covisint SENIOR ACCOUNT EXECUTIVES: Matthew J. Langan, Tamara Rokowski and an IPO didn’t make sense. But IPO was that “Compuware stock ADVERTISING SALES Christine Galasso, Lori the company will exceed $100 mil- gets no credit for Covisint’s suc- Tournay Liggett, Dale Smolinski lion in revenue this year. It’s a CLASSIFIED SALES (313)-446-0351 cess. An IPO creates a marketing EVENTS DIRECTOR Nicole LaPointe company that has event and a fo- EVENTS COORDINATOR Kacey Anderson differentiated itself cus for Covisint SENIOR PRODUCER FOR DIGITAL/ONLINE A WEEKEND OF BASEBALL. PRODUCTS Pierrette Dagg in the market, and and raises MARKETING ARTIST Sylvia Kolaski it has a lot of the It’s been a long funds to invest SALES SUPPORT Suzanne Janik, YahNica Crawford A LIFETIME OF DREAMS. traits in- “ in the Covisint AUDIENCE DEVELOPMENT MANAGER time coming. Candice Yopp vestors platform.” MARKETING COORDINATOR Jenny Griffith like.” The IPO Sowerby PRODUCTION MANAGER Wendy Kobylarz Detroit Tigers 20I2 Revenue said the strate- PRODUCTION SUPERVISOR Larry Williams growth for cupboard has gy makes CUSTOMER SERVICE Summer Fantasy Camp Covisint sense. “Tradi- MAIN NUMBER: Call (877) 824-9374 or write has been been bare. tionally, that’s [email protected] driven by SUBSCRIPTIONS $59 one year, $98 two years. at Comerica Park. ” been a very Out of state, $79 one year, $138 for two years. electronic good way for Outside U.S.A., add $48 per year to out-of-state David Sowerby, rate for surface mail. Call (313) 446-0450 or medical Loomis Sayles & Co. LP companies to (877) 824-9374. SEPTEMBER 7 – 9, 20I2 record keep- add value for SINGLE COPIES: (877) 824-9374 ing and patient management, REPRINTS: (800) 290-5460, ext. 125; investors,” he said. (717) 505-9701, ext. 125; or lindsay.wilson Ever dreamed of playing for the Tigers? which is expected to be a growth “We, along with management, @theygsgroup.com segment for years regardless of the TO FIND A DATE A STORY WAS PUBLISHED: We can make your dreams come true. think Covisint is being underval- (313) 446-0367 or e-mail [email protected] fate of health care reform, and the ued within the Compuware um- resurgent auto industry. CRAIN’S DETROIT BUSINESS IS PUBLISHED BY brella. An IPO helps them get a CRAIN COMMUNICATIONS INC. Clients include Ford Motor Co., more appropriate valuation,” said CHAIRMAN Keith E. Crain General Motors Co., Chrysler Group Wood. PRESIDENT Rance Crain LLC, Delphi Automotive PLC., Johnson SECRETARY Merrilee Crain Covisint was founded in 2000 as TREASURER Mary Kay Crain Controls Inc., the Baylor Health Care a joint effort by the Detroit 3 as an Executive Vice President/Operations System in Dallas, the Detroit Medical William A. Morrow online purchasing exchange to Group Vice President/Technology, Center, the Beaumont Health System, Manufacturing, Circulation transform the way parts were and the states of Indiana, Vermont Robert C. Adams bought in the auto supply chain. Vice President/Production & Manufacturing and Montana. Dave Kamis The company struggled, falling far Covisint’s technology allows Chief Information Officer short of revenue projections, but Paul Dalpiaz clients to use the Web to access then reorganized. Chief Human Resources Officer and share data. While auto compa- Margee Kaczmarek Paul was hired as president of Director of Audience Development Operations nies traditionally used Covisint as Covisint in 2003 and told to fix the Michelle Roth a way to improve the supply chain, G.D. Crain Jr. Founder (1885-1973) they are now trying to figure out company or kill it. At the time, it Mrs. G.D. Crain Jr. Chairman (1911-1996) was an unfocused company that of- EDITORIAL & BUSINESS OFFICES: ways to link customers’ cars with 1155 Gratiot Ave., Detroit MI 48207-2732; (313) such platforms as their smart- fered online auctions, inventory 446-6000 tracking, data messaging and oth- Cable address: TWX 248-221-5122 AUTNEW DET phones and tablets. CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 Covisint had revenue of $55 mil- er Web services. is published weekly, except for a special issue the third week of August, and no issue the third week lion in fiscal 2011 and grew 34 per- Paul sold the auction service, of December by Crain Communications Inc. at killed other business lines and en- 1155 Gratiot Ave., Detroit MI 48207-2732. cent to $73.7 million in fiscal 2012. Periodicals postage paid at Detroit, MI and Compuware has told analysts that gineered the sale of the company additional mailing offices. POSTMASTER: Send to Compuware for $7.1 million in address changes to CRAIN’S DETROIT BUSINESS, For more information or reservations it projects revenue growth for Cov- Circulation Department, P.O. Box 07925, Detroit, isint this year of the about 38 per- 2004. At the time it had revenue of MI 48207-9732. GST # 136760444. Printed in $11.2 million. U.S.A. cent to about $102 million. Entire contents copyright 2012 by Crain CALL 3I3-47I-2550 Compuware, which itself went Tom Henderson: (313) 446-0337, Communications Inc. All rights reserved. Reproduction or use of editorial content in any or visit detroittigersfantasycamp.com public in 1992, first announced an [email protected]. Twitter: manner without permission is strictly prohibited. IPO for Covisint in 2007 and went @tomhenderson2 20120611-NEWS--0026-NAT-CCI-CD_-- 6/8/2012 5:45 PM Page 1

Page 26 CRAIN’S DETROIT BUSINESS June 11, 2012 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF JUNE 2-8

ESD honors 5 projects Stockholm, Sweden-based The Detroit Science Cen- Detroit’s CFO, Autoliv Inc. agreed to pay ter has lined up a third par- Five local projects are be- Sides settle in $14.5 million and cooperate ty to acquire its $6.2 million ing honored by the Engi- with the investigation into in debt from Citizens Bank of neering Society of Detroit state urge end its pricing of seatbelts, Flint, eight months after in its annual Construction airbags and steering closing the museum. Ron & Design Awards. wheels it sold to Japanese Weiser, founder of McKinley for battle over The winners are: manufacturers. to consent suit Associates Inc. in Ann Ar- Wayne State University bor and former chairman Chemistry Building addi- etroit CFO Jack Mar- of the Michigan Republican tion and renovation; owner: tin said Friday the OURTS C Party and national finance Wayne State University; de- D city could run out of home security The Michigan Court of chairman for the Republican signer: Harley Ellis cash by June 15 if a lawsuit Appeals has ruled in favor National Committee, plans to Devereaux; contractor: De- omcast Corp. has of- bring innovation and value challenging a consent of certifying a petition by Maria Building Co. make the science center’s fered its Xfinity to our customers,” the com- agreement to fix the city’s the group Stand Up For Delta Dental of Michigan land, building and contents C Home security pro- pany said in a statement. finances isn’t dropped. Democracythat would sus- available to a new nonprof- Headquarters expansion Mayor Dave Bing said Fri- tection system for only a pend Michigan’s emer- it incorporated in April, and renovation; owner: day he wants the lawsuit month in Michigan, but the gency manager law pend- the Michigan Science Center. No need to wait for bus Delta Dental of Michigan; withdrawn and that he service has already re- ing a November repeal Credit unions in Michi- designer: Albert Khan Associ- plans to meet with City ceived plenty of local pub- The Detroit Bus Co. was set vote. But because the panel gan set a record in the first ates Inc.; contractor: Wal- Council on Monday to dis- licity. to make its inaugural run thinks the case law dictat- quarter by adding 29,566 bridge Aldinger Co. cuss the situation. From a competitor. Friday evening, moving ing the verdict was “wrong- new members for a total of Accident Fund Holdings This followed a Thursday Southfield-based Guardian thirsty bar-goers around ly decided,” it has stayed more than 4.5 million, ac- Inc. New National Head- letter to Martin from Deputy Alarm Co. took aim at Xfinity the city. its own decision pending cording to data released by quarters/Ottawa Street State Treasurer Thomas Sax- Home last month in its ra- The bus was set to take further review. the National Credit Union Ad- dio ads, advising people not off from the parking lot be- power station redevelop- ton, who wrote that unless China Metal Products Co. ministration. O’Blivions Corktown ment; owner: Accident the Detroit Law Department to pick a newcomer to the hind Ltd., which operates a North Starfish Family Services security game. Café, at 1800 Michigan Ave., Fund Holdings; designer: dismisses the lawsuit, the American office in Milford was awarded a $3.6 million Like Xfinity, Guardian is and circle a dozen hotspots HOK, Quinn Evans Architects; city will lose millions in under CMAI Industries LLC, federal grant to take Early also launching a home secu- until 2:30 a.m. contractor: The Christman state revenue sharing. agreed to pay Head Start programs to De- rity package, Guardian “We’re trying to create a Co. $6.3 million to settle with troit families, in collabora- Smart Home, that offers res- full solution for people who Oakland County Inter- the U.S. Department of Justice tion with other nonprofits. idential customers access to want to come down from national Airport General ON THE MOVE on claims it misclassified Wayne County commis- house lights, blinds, alarm the suburbs and from Ann Aviation Terminal (Honor- Lynn Orfgen is retiring parts made in China to sioners in a 14-1 vote have systems, streaming video Arbor and park, and not able Mention); owner: Oak- after 12 years as CEO of avoid $2.5 million in duties. censured County Executive from wireless cameras and have their car broken into,” land County; designer: Neu- Crittenton Hospital Medical Attorney Ven Johnson Robert Ficano, whose office is some control of thermostats said Andy Didorosi, founder mann/Smith Architecture; Center, and Chief Medical is suing his former partner under an FBI investigation, or climate control systems and president of Detroit Bus contractor: Frank Rewold and Officer Frank Sottile, M.D., Geoffrey Fieger, saying he’s AP reported. Ficano is elect- via digital access from a Co. Son Inc. has been named interim entitled to back wages and ed, and commissioners can’t smart phone, iPad, PC or The company has five Farmington Hills City president while a national a percentage of cash settle- force him out. other web-capable device. buses it plans to eventually Hall Revitalization Project search is conducted. ments from his old cases, Detroit Mayor Dave Guardian has been offering put into use, but is starting (Honorable Mention); own- LaForice Nealy, COO of The Detroit News reported. Bing’s office has asked home security since 1930. with one bus that holds 60 er: City of Farmington the American Red Cross of A $1.13 million judg- sheriff’s officials in Wayne, Talking last week to people. Hills; designer: Strategic En- Greater Chicago, will take the ment awarded to Calhoun Oakland and Macomb Crain’s, Guardian president The 12 destinations on ergy Solutions Inc.; contrac- helm of the American Red County over claims that counties and the Michigan David Goldstein continued to the route are either well- tor: Contracting Resources. Cross, Southeastern Michigan Blue Cross Blue Shield of State Police to assist during mix it up. known locations like Com- The winners will be rec- Region July 5, succeeding Michigan charged the coun- the annual fireworks dis- “We think they (Xfinity) erica Park, or late-night ognized at The ESD Annual James Laverty as regional ex- ty hidden fees has been play on the Detroit River to are eventually going to be- businesses like Pegasus Tav- Awards Dinner, set for ecutive officer. Laverty, 64, overturned in the Michigan help cut public safety costs. come competitive” with erna. Corktown, Midtown, June 27 at The Fillmore in plans to retire June 29, cap- Court of Appeals. The suit is The first annual report Guardian, he said. “ The Greektown, Woodbridge Detroit. See www.esd.org. ping 36 years with the Red the first of more than 30 in- on the sale of the Detroit Med- real ploy here, we think, is and Eastern Market are all Cross and a decade of lead- volving self-insured public ical Center to for-profit Van- to stop the attrition of their part of the route. ing the local chapter. BITS & PIECES and private employers su- guard Health Systems of cable users by offering a The bus will run on Fri- ing Blue Cross to go to oral Nashville shows the DMC new service.” days and Saturdays until An art director in the arguments in the appeals met most of its key commit- Comcast is ready for the 2:30 a.m., Sundays until 10 Detroit office of marketing COMPANY NEWS court. Blue Cross plans to ments mandated by the 2010 competition, said Patrick Pa- p.m., and on all Tigers game firm MRM will be represent- Blue Cross Blue Shield of appeal many of them. sale agreement but fell short terno, director of public re- nights two hours before and ing the agency June 17-23 at Michigan celebrated the com- of its obligation to spend $80 lations for the Plymouth- after the game. the Cannes Lions International pletion of its move of 3,000 million each year in capital based Heartland Region of Passengers get an all-day Festival of Creativity in employees into the Renais- ECONOMY France. Colleen Hill, who projects for the next five Philadelphia-based Com- wristband for $5 and pay- sance Center from the com- The Southeast Michigan also teaches at the College years, primarily due to lack cast. ments can be made by cash, pany’s Southfield campus. Purchasing Managers Index for Creative Studies, was cho- of physical space for con- “Competition is nothing credit or debit payments AGS Automotive Systems rebounded from a dip in sen for her creative iPhone struction projects on the new to us at Comcast. We upon boarding. See plans to invest $21 million April with a 3.7-point rise video. downtown medical campus. continue to look at ways to www.thedetroitbus.com. and add up to 90 local jobs in in May to 66.3, the highest Demolition of the 46- Sterling Heights in the next reading this year. Any val- year-old Novi Expo Center few years after acquiring ue above 50 indicates a fa- building, which has stood and renovating an idled vorable economy. vacant for seven years, is BorgWarner Inc. plant. Michigan’s gross do- set to begin today. Amerigon Inc. said it is mestic product last year en- Detroit-based Strategic changing its name to Gen- joyed the sixth-highest therm Inc. in the wake of its growth (2.3 percent) in the Staffing Solutions Inc. says it BEST FROM THE BLOGS has resolved its defamation acquisition last year of Ger- U.S., according to a report READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS many-based W.E.T. Automo- by the Bureau of Economic lawsuit against WJBK-TV2, tive Systems AG. Gentherm Analysis at the U.S. Depart- reporter Charlie LeDuff, New Window through a website Payroll vs. performance will change its Nasdaq ment of Commerce. In com- World Communications of De- symbol to THRM, effective parison, the overall U.S. troit Inc. in Southfield and The Detroit The Detroit Tigers’ Wednesday. GDP rose 1.5 percent in WJBK producer Douglas Historical“ Museum (has) Opening“ Day player Oakwood Healthcare Sys- 2011. McKenzie for a February re- closed its doors … for payroll was $133.4 tem and Wayne State Universi- port saying that County Ex- the next six months, but million … 15th-highest ty signed a 10-year extension ecutive Bob Ficano had in- patrons will still be able in the world, according OTHER NEWS volved himself with a to access its collections to rankings reported in of their medical education — including many never- ESPN the Magazine. … affiliation agreement. U.S. Transportation contract issue for the com- before-seen pieces — That spending, so far, The U.S. Department of Secretary Ray LaHood gave pany. WJBK agreed to re- on the Internet. has bought a subpar Justice’s Antitrust Division M1 Rail 60 more days to an- move the report from its season. brought its first set of crim- swer questions about the website, S3 said, and has ” inal charges against a non- project’s construction and agreed to have its anchors Reporter Sherri Begin Welch’s blog Reporter Bill Shea’s “Shea’s Stadium”” blog on the Japanese automotive sup- operational financing be- read a statement on news- about Southeast Michigan nonprofits can be found business of sports can be found plier in its expanding cast time slots on which the at www.crainsdetroit.com/welch at www.crainsdetroit.com/sheasstadium fore any federal funding price-fixing investigation. will be granted. original story aired. DBpageAD.qxp 6/8/2012 5:33 PM Page 1

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