20111212-NEWS--0001-NAT-CCI-CD_-- 12/9/20115:47PMPage1 ©Entire contentscopyright2011byCrainCommunicationsInc.Allrightsreserved (see below)Dec.26. following the tion ofCrain’swillbeJan.2, call (877)824-9374. $29.95. Formoreinformation, standalone printcopiesare yearlong onlinesubscription; tion cost$36andincludea purchases ofthedigitaledi- arrives Dec.26,anditalsois detroit.com 9374 customer serviceat problems orquestions,contact red navigationbar.Ifyouhave TER” linkdirectlybelowthe click the“LOGINorREGIS- can visit scribers whoneedtoregister receive ane-maillink.Sub- registered onourwebsitewill evening. troit.com beginningSunday ness tion of stories thisyear. website —consideredthetop you —throughclicksonour look backontheeventsthat n’t taketheholidayoffand in moneyforWayne State? Can winningWarriors bring with proposed10%paycut Detroit vendorswrestle NEWSPAPER www.crainsdetroit.com Vol.27,No.51 Book ofLists Digital edition Page 3 MICHIGAN BUSINESS The nextregularprintedi- Crain’s BookofLists Paid subscribersalready It’s allpartofadigitaledi- Catch uponnewsthatdid- , availableatcrainsde- or customerservice@crains- Crain’s DetroitBusi- CRAIN’S crainsdetroit.com . times, Page11 Reframing being made for changing bowling Book ofLists Standalone sions. digital ver- print and ceive both will re- scribers Print sub- form. in digital (877) 824- available and said MikeKillian,Beaumont’s many goodthingsaccomplished,” management. its oncologyprogrambyhospital and toprovidecloseroversightof zation, asacost-savingsmeasure for-profit medicalserviceorgani- Beaumont OncologyNetworkPC ed itscontractwith3-year-old management andclinicalservice gram throughexistinghospital physicians initsoncologypro- private practiceandemployed cided itcouldcontinuetosupport hospital,” Killiansaid. with administrationinsidethe major cancerprogramsintheU.S. have itrunningnowlikeallother volved (withtheinstitute),butwe breast surgery. surgery, colorectalsurgeryand gy, neurosurgery,thoracic oncology, medicalurolo- The specialtiesincludedradiation Beaumont, aspartofitsnetwork. cluding 18physiciansemployedby ing physiciansandsurgeons,in- cruited morethan140cancer-treat- ognized tient volumeatthenationallyrec- practice physicianstoincreasepa- quality andworkwithprivate manage clinicalservices,improve velop specialtyoncologyclinics, Oak-based Beaumontweretode- Killian said,thegoalsofRoyal Killian oversight sought Lower costs,closer oncology group with for-profit ends contract Beaumont “It wasanexperimentthatsaw Beaumont HealthSystem After threeyears,Beaumontde- “All thephysiciansarestillin- Beaumont OncologyNetworkre- CRAIN’S DETROITBUSINESS Beaumont CancerInstitute B Y J AY See Beaumont,Page34 G cology Network, Beaumont On- today.” still inexistence clinics thatare multidiscipline gether many “They putto- public affairs. marketing and vice presidentof REENE By forming has end- , a . DECEMBER 12–18,2011 affordable, high-endandsenior development with225-250unitsof viewed forthetaskofredevelop- sales offreshChristmastrees. a “checkoff”programtopromote partment ofAgriculture other year. ducer ofrealtreesinthenation. Michigan —thethird-largestpro- program toboostbusinessin were countingonanewfederal ficial kind,manytreefarmers ly losingsalesgroundtothearti- Anti-tax talktopplesprogram meanttohelpgrowers promote thesaleofrealChristmastreesbutwouldnothavebeenabletopasscostconsumers. Fred StempkyofNurseryinLivoniasaidhe’snotagainstanewfeethathadbeenintendedtohelp SPECIAL TOCRAIN’SMICHIGANBUSINESS Some well-known developers not on short list Some well-knowndevelopersnotonshort Capitol Park:3finalists Park, look aroundCapitol The buildings: C Among theplansisamixed-use Three groupsarebeinginter- In earlyNovember,the They’ll havetowaitatleastan- With realChristmastreesslow- OE LOOK LOSER P CRAIN’S DETROITBUSINESS B Page 37 AT Y D S ANIEL HELLENBARGER A D UGGAN of Detroit. Park district down Capitol the run- buildings in licly owned ing thepub- announced U.S. De- cluding but aren’tontheshortlist,in- opers whosubmittedproposals siders arethewell-knowndevel- tional retailers. housing pairedwithlocalandna- strengthen theChristmastree in- tion andinformationdesigned to of promotion,research,evalua- sentatives tooverseea“program appoint aboardofindustryrepre- year. TheUSDAhadplanned to farms thatsell500ormoretreesa cent-per-tree feecollectedfrom would havebeenfundedbya15 milk andotherfarmproducts— those promotingsalesofbeef, changed itsmind. show hosts,thefederalagency conservative bloggersandtalk Two dayslater,underattackby that existinthecityandwhowant vestors whoseetheopportunities did notsignalanyhardfeelings. founder DanGilbert. teamed with oper JohnFerchill,whohad Surprising somerealestatein- The program—similarto “We welcomeanyandallin- In anemailedcomment,Gilbert Westin BookCadillac Quicken LoansInc. devel- ANDREW TEMPLETON/CRAIN’SDETROITBUSINESS Karp andAssociatesLLC velopment Ltd. in Flint,Lansing-based velopers behindthe the list,sourcessaid,arede- ing todoiscreategreater de- program. Really,whatwe’re try- much insupportofthecheckoff years,” shesaid.“Wewerevery Michigan ChristmasTreeAssociation utive directoroftheHowell-based program, saidMarshaGray,exec- those inMichigan,favoredthe growers nationally,including the FederalRegister. place,” theagencyannouncedin dustry’s positioninthemarket- ver-based Inc. troit-based behind the of downtownDetroit,”hesaid. dynamic urbancoreintheheart what isbecominganexcitingand to getinonthegroundfloorof “We’ve workedonthisforfour A majorityofChristmastree Making thecutisdeveloper , inajointventurewithDen- Tryba Architects ..BealConstruction J.C. Broderick Tower $2 acopy;$59year See Trees,Page37 and Lansing-based See Park,Page37 Durant Hotel . Prater De- . Alsoon , De- ® . 20111212-NEWS--0002-NAT-CCI-CD_-- 12/9/2011 4:47 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS December 12, 2011

MICHIGAN BRIEFS Kalamazoo, Flint set to benefit Erik Nordman, a professor at Grand Valley State University who from WMU, MSU med school plans If your name is on every grate, is new name great idea? has studied offshore wind farms, presented his findings on the en- Two Michigan cities are set to vironmental and economic im- benefit from growth in the medical The next time you take a break, go outside, look in “the new shared identity will help in leveraging all pact, The Holland Sentinel report- education programs at two state the street for a manhole cover, then look at the name company resources to improve internal operations, ed. universities. on it. Then do the same thing to another manhole cov- as well as provide superior product offerings and Other topics included the poten- Ⅲ In Kalamazoo, Western Michi- er, and maybe a sewer grate or two services to customers.” tial effects of the wind farms on gan University announced that its … or 20. Chances are, you’ll see that The company, based in the north- fishing, the potential effects of new School of Medicine will be East Jordan Iron Works has cornered ern Michigan community of the winter weather on the wind farms housed in a downtown building the street corner market in this same current name, employs about and, in particular, the fact that off- that was once part of The Upjohn state and beyond. “Ubiquitous” 500 in East Jordan and about 2,000 shore wind energy is twice as ex- Co., the Kalamazoo Gazette report- doesn’t begin to describe this corporate moniker. worldwide. East Jordan Iron Works has been owned pensive as other carbon-free tech- ed. MPI Research, a scientific re- So how to explain this: The Petoskey News-Review by the Malpass family since 1883. nologies, according to the U.S. search firm headquartered in reported that starting Jan. 6, East Jordan’s owners Affiliates that also will be brought under the new Energy Information Administration. nearby Mattawan, is donating the plan to rebadge under a single name: “EJ.” The web- EJ label are Norinco in France, Cavanagh in Ireland, In a related development, on building. site Steel Guru reported that company leaders think McCoy in Canada and HaveStock in Australia. land up the shore near Muskegon, Ⅲ In Flint, the Michigan State Uni- Jackson-based Consumers Energy versity College of Human Medicine percent. It attributes the hit to companies that agreed to pay Euro- Michigan would be hard on the Co. is proceeding with a $235 mil- will open a community campus maintenance at one of its cus- pean Union antitrust fines for fixing eyes as well as tourism, the com- lion, 56-turbine wind farm, despite downtown, The Flint Journal re- tomer’s blast furnaces, Bloomberg prices of refrigerator compressors. munity decided to seek input from opponents who contend, among ported. The college will develop News reported. Bloomberg News reported that the the other Holland. other things, that the turbines are public health programs, recruit That may affect 600 workers in Whirlpool units were fined about During a teleconference last too close to homes. and house researchers and pro- Michigan beginning in the second $73 million. week, Adriana Stam of the North vide office and classroom space in quarter, the Cleveland-based com- Ann Arbor-based Tecumseh Prod- Holland Development Co. said two Find business news from a location to be determined. pany said. But it won’t alter a fore- ucts Co. wasn’t fined because it told wind farms near Amsterdam — in around the state at crainsdetroit cast that Cliffs’ U.S. iron ore busi- the EU about the cartel. her Holland, aka the Netherlands .com/crainsmichiganbusiness. Customer fix-up puts U.P. mine ness will sell and produce 23 Whirlpool’s Embraco unit last year — face little opposition “because of Sign up for Crain's Michigan million tons of ore next year. Cliffs paid $91.8 million to settle a simi- our history. People are very used Business e-newsletter at crains in a fix; output set to drop 41% didn’t identify the customer. Its lar U.S. Justice Department investi- to seeing them.” detroit.com/emailsignup. gation. Whirlpool and Tecumseh Manufacturers know that the biggest customers are also face U.S. lawsuits by cus- long-term value of maintenance is ArcelorMittal, Essar Steel Algoma Inc. tomers over alleged price fixing. CORRECTION worth the short-term hassle, but and OAO Severstal. how’s this for inconvenience: Cliffs Ⅲ A story on Page 1 of the Dec. 5 issue listed the wrong radio station Natural Resources Inc., the biggest Whirlpool units to pay price-fixing To learn more about wind employer for Jim Harper. He joined WMGC 105.1 FM in 2001. WMGC is North American iron ore produc- owned by Boston-based Greater Media Inc. An incorrect owner was list- er, said it will reduce output next fine after European Union inquiry energy, Holland asks Holland ed in the story. Also, the chart of top local radio stations by revenue ac- year at its mine in the Upper Two units of Benton Harbor- When the Holland area won- companying the story should have included WWJ 950 ($15.5 million) as Peninsula near Marquette by 41 based Whirlpool Corp. are among the dered whether wind farms in Lake first in the market and WJR 760 AM as second ($13.4 million).

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December 12, 2011 CRAIN’S DETROIT BUSINESS Page 3 Prentice, Health Care Extra Dickson try new recipe Company reorganized, new bistro planned BY NATHAN SKID Health plans compete – and CRAIN’S DETROIT BUSINESS

When Matt Prentice sold his restaurant collaborate, Page 19 group to Stanley Dickson Jr. in October 2009, it was the first of several steps taken to ensure JOHN SOBCZAK “The margins for doing business with the city are very, very low to begin with,” said Belinda Jefferson, the company’s success Company index Even in president of the Detroit-based janitorial supply vendor Hercules & Hercules Inc. “ and long-term viability, These organizations appear in this week’s Crain’s a down and Prentice says it’s be- Detroit Business: ginning to pay off. American Axle & Manufacturing Holdings ...... 28 Since the beginning of Andiamo Restaurant Group ...... 33 economy, the this year, Prentice and Arvina Group ...... 34 Dickson dissolved Trow- Beaumont Cancer Institute ...... 1 best will still Beaumont Health System ...... 1 bridge Restaurant Group, Detroit vendors wrestle Beaumont Oncology Network ...... 1 survive, and incorporated each of the Brunswick Bowling & Billiards ...... 11 restaurants indepen- Burtek ...... 4 I wasn’t dently, cut nearly Business Leaders for Michigan ...... 4, 16 $600,000 in overhead Canine to Five ...... 36 seeing to costs, are opening an Capitol Park Partners ...... 37 with proposed 10% cut Cauley Performance Automotive ...... 26 American bistro called Center for Automotive Research ...... 16 that. Gastronomy and are look- City Living Detroit ...... 36 ” ing at three other sites Cooper-Standard Holdings ...... 17 Matt Prentice in metro Detroit for po- Biz relationship already strained, some say Coupled Products ...... 34 tential restaurants. Detroit Department of Transportation ...... 3 Dickson continues to own the restaurants, BY NANCY KAFFER The city of Detroit awards about $250 mil- Detroit Medical Center ...... 23 Detroit Water & Sewerage Department ...... 3 CRAIN’S DETROIT BUSINESS lion in contracts annually. Bing’s plan pro- which are marketed as the Matt Prentice Restau- Domino’s Pizza ...... 17 rant Group. Prentice, who operates the group as jects a savings of $13 million in the current fis- For some city vendors, the idea of a 10 per- Dow Chemical ...... 17 See Prentice, Page 33 cal year and $25 million in fiscal 2012. Econ Marketing Services ...... 24 cent reduction in payments proposed by De- All departments — including the Detroit Wa- Emagine Entertainment ...... 11 troit Mayor Dave Bing ter and Sewerage Department and the Detroit De- Energy Conversion Devices ...... 17 is cause for alarm — partment of Transportation — will be affected, Li- Expedited Postal Logistics Group ...... 24 and a signal that doing EFM EFFECT jana said. Ford Motor ...... 17 business with the city, Fred Stempky Nursery ...... 37 Emergency manager: The city is barred from using funds from Freudenberg-NOK Sealing Technologies ...... 17 already notorious for Would appointing one revenue-producing agencies such as DDOT or FutureNet Group ...... 36 late payments, is about crimp Detroit’s the water department to balance the general General Motors ...... 17 to become even more creative momentum? Guardian Alarm ...... 17 Page 36 fund budget. DDOT receives a general fund challenging. subsidy of $80 million to $100 million from De- Health Plan of Michigan ...... 20, 21 HealthPlus of Michigan ...... 20, 22 The city is targeting troit’s general fund annually. Cutting costs in existing contracts, renewals and new con- Hercules & Hercules ...... 36 that department would improve the city’s gen- Iconma ...... 25 tracts, Dan Lijana, a communications manag- eral fund balance. But it’s unclear what im- J.C. Beal Construction ...... 1 er in Bing’s office, wrote in an email to pact cutting water department contracts Kellogg ...... 17 Crain’s. The city has saved $3.5 million in the would have on the city’s bottom line. Lear ...... 17 current fiscal year through cooperative pur- A letter dated Dec. 2 was distributed to ven- Marx Layne ...... 34 Matt Prentice Restaurant Group ...... 3 NATHAN SKID/CRAIN’S DETROIT BUSINESS chasing agreements, rebidding contracts and dors last Thursday, Lijana said. consolidating or eliminating contracts, he Meijer ...... 15 Jaime Jeffrey looks over the shoulder of catering “I’ve been wrestling with this for two or Meritor ...... 17 division cook Lynn Sokolosky as she roasts pears at wrote. The city will continue to use those tac- Michigan Association of Health Plans ...... 19, 21 the new site of Gastronomy. tics in the year ahead, he said. See Vendors, Page 36 Michigan Christmas Tree Association ...... 1 Michigan Department of Community Health ...... 19 Mid Michigan Innovation Center ...... 16 Miller, Canfield, Paddock & Stone ...... 17 Motor City Pipe & Supply ...... 36 OmniCare Health Plan ...... 19 COACHING RECORD On-Demand Mail Services ...... 24 Warrior success brings spotlight, not likely cash Priority Health ...... 21 Paul Winters, 47-42 overall in eight Resource Technologies ...... 25 seasons as WSU’s BY BILL SHEA said WSU Athletic Director Rob Rush Trucking ...... 28 CRAIN’S DETROIT BUSINESS Fournier. Slow’s Bar BQ ...... 36 head coach, has Soave Enterprises ...... 17 rebuilt the program “We’ll use this as a greeting card to go to people,” he said. The athletic de- Team Detroit ...... 36 over his tenure. This season has been the most suc- Vanguard Health Systems ...... 23 Conference records cessful ever for the Wayne State Universi- partment has been buying spots on the Wayne State University ...... 3 in parentheses. ty football team, but don’t look for the radio to appeal to alumni and donors. Ⅲ 2004: 1-9 (1-9) victories to translate into a windfall of That push will happen regardless of Ⅲ 2005: 3-7 (3-7) cash or a move up to Division I. this past weekend’s outcome. Department index Ⅲ 2006: 6-5 (6-4) That doesn’t mean the school isn’t The Warriors were to play third- BUSINESS DIARY ...... 29 Ⅲ 2007: 3-8 (2-8) seeking whatever financial help it can ranked Winston-Salem State University at Bowman Gray Stadium on Saturday Ⅲ 2008: 8-3 (7-3) get for its Division II football program CALENDAR ...... 32 for the chance to play in the Division II Ⅲ 2009: 6-5 (5-5) — which operates on a budget of just CAPITOL BRIEFINGS...... 6 $195,000. national championship Dec. 17. The ti- Ⅲ 2010: 9-2 (8-2) COURTESY OF WAYNE STATE UNIVERSITY JOB FRONT FORMERLY CAREERWORKS . . . 31 The team’s success will be used to tle game is held annually at 14,215-seat Ⅲ 2011: 11-3 (7-3) Senior running back Josh Renel (center) CLASSIFIED ADS ...... 33 cultivate WSU’s donor and corporate Tom Braly Municipal Stadium at the has been a key part of the most successful Ⅲ KEITH CRAIN...... 8 Total: 47-42 (39-41) base for both sports and academics, See Football, Page 35 football season in Wayne State’s history. MARY KRAMER ...... 11 OPINION ...... 8 Nonprofit news Crain’s is listening OTHER VOICES ...... 9 THIS WEEK @ Keep up with Crain’s weekly Help shape our coverage and get the chance PEOPLE ...... 31 Nonprofit News Report. Sign up for discounts on Crain’s products by taking a RUMBLINGS ...... 38 WWW.CRAINSDETROIT.COM at crainsdetroit.com/getmail. survey at crainsdetroit.com/readerpanel. WEEK ON THE WEB ...... 38 20111212-NEWS--0004-NAT-CCI-CD_-- 12/9/2011 5:29 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS December 12, 2011 Receiver confident about sale of contractor Burtek CEO group BY CHAD HALCOM Barry Lefkowitz, managing di- track to post revenue of $45 million Lefkowitz said the company’s releases report CRAIN’S DETROIT BUSINESS rector of Southfield-based BBK Ltd., this year. headcount has not changed sub- said the company will continue to Lefkowitz said in an October no- stantially from the 214 employees Chesterfield Township defense honor contracts, pay vendors and tice to the state Workforce Devel- it had when it entered receiver- contractor Burtek Inc. will remain keep employees even if a proposed opment Agency that the company ship Oct. 11. on ‘Road in business for as long as it takes sale to Wynnchurch Capital Partners expects to “terminate all (current) “I spoke to the employees to complete a sale and likely will LP isn’t completed by Dec. 21. employees no later than Wednes- Thanksgiving week and disclosed continue to operate under new Wynnchurch, a Rosemont, Ill.- day, Dec. 21,” but last week said he what I could to them. I thought a to Renaissance’ ownership, the court-appointed re- based private equity firm, has expects to seek an extension while sale would go forward,” he said. ceiver managing its assets said made a $14 million offer to buy the Wynnchurch deal is pending. “There are no guarantees in this BY SHERRI WELCH last week. debt-saddled Burtek, which is on “I will likely be filing (deadline) world, but it’s no different as of to- CRAIN’S DETROIT BUSINESS extensions as necessary to cover day, and I expect there will be a the period (before a sale). I ab- transaction.” Business Leaders for Michigan solutely have no intent of shutting Lefkowitz expects Wynnchurch was expected today to release its down by Dec. 21. It doesn’t look at will pay cash, and he will use the final report on the “Road to Re- this point that I’ll have to (oversee) sale proceeds as receiver to satisfy naissance” economic develop-

INTELLECTUAL PROPERTY ATTORNEYS any shutdown,” Lefkowitz said. its creditors in order of impor- ment plan its predecessor, Detroit “We fully ex- tance. Renaissance Inc., laid out five

pect a sale trans- Burtek makes military vehicle years ago. action will be components such as ambulance The plan identified six areas consummated, shelter cabins, mobile antennae that could be bolstered by build- They are not just “ and we expect and radar systems, ground vehi- ing on strengths and redirecting the purchasers cles and trailers. resources over a period of three will maintain Dan Raubinger, director of de- to five years, but only five turned “patent lawyers, but the business as- fense and manufacturing for Troy- out to be viable. sets, although I based Automation Alley, said last After establishing them and our trusted advisors. can’t speak for week he expects Burtek would leveraging over $100 million for Wynnchurch make an attractive buy and is like- the initiatives, Business Leaders and its (long- Lefkowitz ly part of a larger industry trend of moved each to a lead agency or JAMES SCAPA, CEO Altair Engineering term) strategy.” acquisitions targeting leveraged agencies. The company allegedly owes suppliers to defense contractors. The efforts, their lead agencies $13.9 million in remaining debt on Burtek is part of the Alley’s and results are: a $38 million financing deal dating database of 21,000 prospective sup- Ⅲ Developing an aerotropolis, led back to 2007. pliers and service companies for by the Detroit Region Aerotropolis YOUNG BASILE. Advisors to the world’s most innovative companies. The Wynnchurch deal is expect- the defense industries. The compa- Development Corp. ed to close in January. Terry ny is listed as a low financial risk, The public-private effort has Theodore, a director in the firm’s based on records of recent pay- attracted two companies that do Bloomfield Hills office, did not re- ments to creditors, Raubinger international business, GE Corp. ANN ARBOR • TROY • SILICON VALLEY turn two phone calls seeking com- said. and A123 Systems, to the region Chad Halcom: (313) 446-6796, and secured an incentive that led WWW.YOUNGBASILE.COM ment. The firm’s president and managing partner, John Hatherly, [email protected]. Twitter: Kalitta Charters to expand in Ypsi- also did not return a phone call. @chadhalcom lanti. Ⅲ Growing the creative economy, led by the Detroit Creative Corridor Center. The effort launched a business accelerator in Detroit’s creative corridor, a website to connect the creative community, and at- tracted over $40 million to the new Midtown arts district and College for Creative Studies Arg- onaut Campus. Ⅲ Expanding entrepreneurial ca- pacity, led by the Business Accelera- tor Network of Southeast Michigan You Deserve More Thought Per Square Foot and Renaissance Venture Capital Fund. The effort has attracted more than $10 million in federal ear- marks, funded the Macomb Oak- land University Incubator and es- tablished the $45 million Renaissance VC fund. Ⅲ Securing the future talent base, led by the Detroit Regional Chamber and University of Michi- gan-Dearborn. The effort established the In- tern in Michigan program; a sci- ence, technology, engineering and mathematics initiative in 45 schools; and leveraged a $20 mil- lion, federal grant to the Michigan College Access Network. Ⅲ Promoting globally while com- municating locally, led by the De- Real Estate Strategy troit Regional News Hub. The award-winning organiza- Tenant Representation tion puts out a weekly email with news story links and news tips Buyer Representation about the Detroit region and has launched an effective social me- Project Feasibility dia strategy for the region. Good real estate deals are at lower lease rates; great ones are The Road to Renaissance Construction Oversight progress report is available on- aligned to the needs of your organization. Let our experienced line at: www.businessleaders- real estate department for hire show you what to ask for. Incentives formichigan.com/research-re- ports. Lease Administration Sherri Welch: (313) 446-1694, pmcresa.com 248.223.3500 [email protected]. Twitter: @sherriwelch DBpageAD.qxp 12/1/2011 3:39 PM Page 1

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Page 6 CRAIN’S DETROIT BUSINESS December 12, 2011 Legislature passes economic development bills LANSING — Bills ce- opment Corp. and others licly disclose. governmental affairs at the MEDC, place the Michigan Economic Growth menting how Michigan’s was removed. HEADING NORTH The bill re- said that in addition to the bill’s re- Authority program. Other bills in the new $100 million in eco- Capitol Senate Bill 567, which quires annual porting requirements, the state also package are SB 566 and SB 644. Once nomic development in- creates a community revi- Crain’s Lansing online reports will post information online after the governor signs the bills, the Briefings correspondent centives will be handed talization program to re- Amy Lane will end to the Legisla- monthly Strategic Fund board meet- state will put out program guide- out have cleared the Leg- place brownfield and his- years of covering ture on items ings where incentives are approved. lines and application forms. islature. toric tax credits, no longer state government like private in- Eight lawmakers who are chairs The bill package creat- contains a $3 million cap full time, Page 38 vestment at- and vice-chairs of legislative com- ing new programs to re- on the maximum amount tracted and in- mittees will receive all information Workers’comp changes advance place Michigan’s expiring of grants, loans or other centives awarded; the amount of that goes to the Strategic Fund Wide-ranging changes to Michi- tax credits for economic assistance that a function- square footage or residential units board for its monthly meetings. gan workers’ compensation law saw development, historic ally obsolete property can revitalized or added by approved McBryde said there will be “un- further changes last week and preservation and brown- receive. projects; the increase in taxable val- precedented transparency.” The re- cleared the Senate. fields saw final approval Amy Lane Instead, all projects will ue of property; administrative costs; porting requirements are named Under the Senate-passed version last week and went to be subject to a maximum and taxpayer return on investment. only for the community revitaliza- of House Bill 5002, police and fire- Gov. Rick Snyder for his signature. $10 million in assistance. The fund will not publicly divulge tion program, but the MEDC plans fighters could not have their work- That’s after state requirements In Senate Bill 568, there’s new lan- sensitive or private financial infor- to follow the same practice for the ers’ comp benefits reduced based on were added and a provision of con- guage on project information the mation associated with an incen- new Michigan business develop- what some call theoretical wages — cern to the Michigan Economic Devel- Michigan Strategic Fund must pub- tive. Jim McBryde, vice president of ment program in SB 556 that will re- wages that the employee earns or is capable of earning at a job reason- ably available to them, whether or not the wages are actually earned. That wage language in the bill has drawn opposition from unions. The Senate-passed bill would exempt po- lice and firefighters, a change that ,ŝŐŚĞƌƌĂƟŶŐƐ͕ďĞƩĞƌƉůĂŶƐ helped the bill win votes. The Senate also narrowed lan- guage that allows workers’ comp Plus. benefits to be reduced by a pension ʹƚŚĂƚ͛ƐLJŽƵƌ that a retirement-eligible worker could receive — even if that worker has not retired and is not drawing a pension. Under the Senate change, pension or retirement payments will not reduce workers’ comp bene- fits unless a retirement-age person has suffered total and permanent disability. The Senate also further altered the length of time an employ- er can control the injured employ- ee’s medical care. Currently, for the first 10 days of medical care, the employer can choose who will provide treatment. HB 5002 initially set the period at 90 days, but the House-passed version specified 45; the Senate set 28 days. The bill now returns to the House. UI bills near finish line Bills that would allow Michigan to issue bonds to wipe out its $3.1 bil- lion federal unemployment insur- ance debt and make numerous changes to the unemployment in- surance system are likely to see fi- nal action this week. The bonding bills, SBs 483 and 484, would enable the state to elimi- nate the federal debt and associated dŚĞEĂƟŽŶĂůŽŵŵŝƩĞĞĨŽƌYƵĂůŝƚLJƐƐƵƌĂŶĐĞYƵĂůŝƚLJŽŵƉĂƐƐΠϮϬϭϭŚĂƐƌĂƚĞĚ,ĞĂůƚŚWůƵƐηϭŝŶ interest that’s accruing. DŝĐŚŝŐĂŶŝŶϰŝŵƉŽƌƚĂŶƚĂƌĞĂƐŽĨĐŽǀĞƌĂŐĞĂŶĚĐĂƌĞ͘ The bonds would be repaid by an assessment collected quarterly from employers. The assessment rate *† ηϭŝŶKǀĞƌĂůůZĂƟŶŐŽĨůů,ĞĂůƚŚĂƌĞ͕ϮϬϬϳʹϮϬϭϭ would be determined by the state treasurer and the director of the *† ηϭŝŶKǀĞƌĂůůZĂƟŶŐŽĨŽĐƚŽƌƐ͕ϮϬϭϬΘϮϬϭϭ Michigan Department of Licensing and Regulatory Affairs and it could take *† ηϭŝŶKǀĞƌĂůůZĂƟŶŐŽĨ^ƉĞĐŝĂůŝƐƚƐ͕ϮϬϭϬΘϮϬϭϭ into account an employer’s previ- ous-year “experience rating,” which † ηϭŝŶ^ŚĂƌĞĚĞĐŝƐŝŽŶDĂŬŝŶŐďĞƚǁĞĞŶĚŽĐƚŽƌƐĂŶĚŵĞŵďĞƌƐ reflects their layoff history. Companion Senate Bill 806 makes a host of UI reforms. They include: ■ Increasing the taxable wage /ƐŶ͛ƚŝƚƟŵĞLJŽƵŐŽƚƚŚĞWůƵƐ͍ base from the first $9,000 of an em- ployee’s wages to the first $9,500. ϭͲϴϬϬͲϯϯϮͲϵϭϲϭ ■ Shortening, from five years to three, the period in which an em- ǁǁǁ͘ŚĞĂůƚŚƉůƵƐ͘ŽƌŐ ployer’s layoff experience is consid- ered for their tax rate. ■ Changing the definition of a “suitable work” requirement to in- clude jobs outside of a claimant’s training or experience if the work ΞϮϬϭϭ,ĞĂůƚŚWůƵƐŽĨDŝĐŚŝŐĂŶ͕/ŶĐ͘ pays at least 120 percent of the week- ΏdŚĞƐŽƵƌĐĞĨŽƌĚĂƚĂĐŽŶƚĂŝŶĞĚŝŶƚŚŝƐƉƵďůŝĐĂƟŽŶŝƐYƵĂůŝƚLJŽŵƉĂƐƐΠϮϬϬϳʹϮϬϭϭĂŶĚŝƐƵƐĞĚǁŝƚŚƚŚĞƉĞƌŵŝƐƐŝŽŶŽĨƚŚĞEĂƟŽŶĂůŽŵŵŝƩĞĞĨŽƌYƵĂůŝƚLJƐƐƵƌĂŶĐĞ;EYͿ͘YƵĂůŝƚLJŽŵƉĂƐƐϮϬϭϭ ŝŶĐůƵĚĞƐĐĞƌƚĂŝŶ,W^ĚĂƚĂ͘ŶLJĚĂƚĂĚŝƐƉůĂLJ͕ĂŶĂůLJƐŝƐ͕ŝŶƚĞƌƉƌĞƚĂƟŽŶ͕ŽƌĐŽŶĐůƵƐŝŽŶďĂƐĞĚŽŶƚŚĞƐĞĚĂƚĂŝƐƐŽůĞůLJƚŚĂƚŽĨƚŚĞĂƵƚŚŽƌƐ͕ĂŶĚEYƐƉĞĐŝĮĐĂůůLJĚŝƐĐůĂŝŵƐƌĞƐƉŽŶƐŝďŝůŝƚLJĨŽƌĂŶLJƐƵĐŚ ly benefit amount. ĚŝƐƉůĂLJ͕ĂŶĂůLJƐŝƐ͕ŝŶƚĞƌƉƌĞƚĂƟŽŶ͕ŽƌĐŽŶĐůƵƐŝŽŶ͘YƵĂůŝƚLJŽŵƉĂƐƐŝƐĂƌĞŐŝƐƚĞƌĞĚƚƌĂĚĞŵĂƌŬŽĨEY͘,W^ΠŝƐĂƌĞŐŝƐƚĞƌĞĚƚƌĂĚĞŵĂƌŬŽĨƚŚĞŐĞŶĐLJĨŽƌ,ĞĂůƚŚĐĂƌĞZĞƐĞĂƌĐŚĂŶĚYƵĂůŝƚLJ;,ZYͿ͘ ■ Tightening benefit disqualifica- ΎηϭŝƐĐĂůĐƵůĂƚĞĚďĂƐĞĚŽŶƚŚĞ͞ƚŽƉƚǁŽďŽdž͟ŽĨйϵŽƌϭϬƚŚĂƚŝƐƵƐĞĚďLJEYŝŶƚŚĞŝƌŵĞƚŚŽĚŽůŽŐLJĨŽƌƚŚĞ,ĞĂůƚŚ/ŶƐƵƌĂŶĐĞWůĂŶZĂŶŬŝŶŐƐŝŶŽŶƐƵŵĞƌZĞƉŽƌƚƐ͕ĨŽƌƚŚĞKǀĞƌĂůůZĂƟŶŐƐ tion standards. ;WĞƌƐŽŶĂůŽĐƚŽƌ͕^ƉĞĐŝĂůŝƐƚ͕ĂŶĚůů,ĞĂůƚŚĂƌĞͿ Amy Lane: (517) 371-5355, [email protected]. Twitter: @alanecdb DBpageAD.qxp 12/6/2011 12:07 PM Page 1 20111212-NEWS--0008-NAT-CCI-CD_-- 12/9/2011 4:46 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS December 12, 2011 OPINION City shouldn’t keep vendors in the dark endors are understandably nervous about Detroit Mayor Dave Bing’s plan to cut contract payments by V 10 percent, and the administration hasn’t helped allay those fears. Bing made the proposal in a Nov. 16 speech, but as of last week, vendors were just starting to receive information about how they would be affected. (See story, Page 1.) Not that there’s total clarity yet. The city told Crain’s Nancy Kaffer last week that the cuts apply to all contracts, including those with the Detroit Water and Sewerage Department. However, the city is barred from using water department revenue to balance the general fund budget, so it isn’t clear how or if cuts in those contracts would help stave off an emergency financial manager, consent agree- ment or bankruptcy. Vendors were hit by contract cuts in the Kilpatrick admin- istration, and another round may be unavoidable given the city’s financial difficulties. But given that many, if not most, city vendor businesses also have offices in Detroit, it’s difficult to avoid the conclusion that they may suffer more than most — once from the cuts and again because of further reduced ser- TALK ON THE WEB vices. Many already pay for security and other services nor- mally provided by municipalities. From www.crainsdetroit.com It also isn’t clear how much the $25 million a year that the When the Troy Bally closed, the Re: Medigap rate freeze Reader responses to stories and cuts would save would help. Troy LA Fitness facility nearly To all group BCBSM non-Medi- blogs that appeared on Crain’s burst at the seams both Thursday Clearly, the seriousness of the city’s financial position is gap policyholders: Your premium website. Comments may be and Friday evenings. As typically beyond dispute. If anything, it’s actually being undersold. dollars are being used to take care edited for length and clarity. performed, neither clientele group of the $220 million shortfall. I won- But, frequent, timely and clear communication is needed had any notice. der how much that shortfall will frankly, a joke. Who, exactly, has so vendors can plan and perhaps help. The city needs vendors Ipnews be by 2016? Isn’t it nice to see BCB- been “running Detroit” for the last as partners, not simply as another group to tap for cash. SM (a nonprofit) use your premium 50 years? Detroiters! The better dollars to help them get an advantage question is, “Why does anyone out- Notification (about the Troy in the future Medicaid market? side of Detroit want any part of the fix transition) involved a piece of pa- Jump on Warrior bandwagon Unfair if ‘adult supervision’ is not ap- per taped to the door at the old plied, and NOW?” club. When I got to LA Fitness, William J With all the attention paid to the Lions, Wolverines and Re: Pistons tickets to go on sale they said that the company is only selectively honoring the Bally con- Spartans, it’s easy to forget about the Wayne State Warriors. Who cares? tracts. The new club seemed nice, AJ Re: Turkia Mullin files suit But as Bill Shea reports on Page 3, the Warriors, who were however it was very busy even for Who’s going to pay her lawyer still in contention for an NCAA Division II football champi- off-peak hours. I don’t know how Re: State review of Detroit finances bill if he doesn’t win this weak shot? onship over the weekend, are also attention-worthy. JackH they are going to combine two The team has been quietly rebuilding over the past several No to EFM and Jim Crow disen- clubs without eventually crowding franchisement. Broke is not broken. out half. seasons and was rewarded this year with a place in the play- suryan207 Re: LA Fitness absorbs Bally clubs Andrew15 offs, where it posted an unexpected victory over last year’s I hope LA Fitness will be able to champion, Minnesota Duluth. The statement “Detroiters need keep their current clientele satis- So regardless of whether the Warriors won or lost over the to continue to run Detroit” is, fied during the massive migration. See Talk, Page 9 weekend, mark next year’s season on your calendar and at- Send your letters: Crain’s Detroit Business will consider for publication all signed letters to the editor that do not tend a game or two. defame individuals or organizations. Letters may be edited for length and clarity. Email [email protected]

KEITH CRAIN: A simple solution for the state’s deficit Folks who have been long-time have a dramatic impact expanded globally, so Well, I have the solution, and Christmas holiday season. We’re readers of Crain’s know very well on the delivery times it’s been sort of a push. it’s so simple I really don’t know talking about millions of transac- of the theory of fruitcakes and why for your fruitcake. But I am not telling why someone hasn’t thought of it tions occurring at almost the speed we only have around seven fruit- So if I may bring anyone anything new. before. of light. cakes to take care of the entire everyone up to speed, so Any citizen who is able One dilemma that seems to be If each one of those transactions world. to speak: The reason we to vote knows all about polarizing our country is the ques- had even a modest sales tax com- I mention around seven because don’t need many fruit- re-gifting fruitcakes. tion of charging sales tax on items ponent, the total amount collected there is always some dispute about cakes is simply that no We also all know purchased online. Traditional re- during the holiday season would the precise number required to one eats a fruitcake. The about the looming tailers scream that they need a be nothing short of staggering. meet worldwide demand vs. the fruitcake is merely a to- deficits facing our “level playing field,” and Internet Up to now, I have always United States. ken of affection, re-gift- states and federal gov- retailers are crying foul. thought of fruitcake giving and re- There is also a rumor that one ed within seconds of re- ernments. They are I have done some simple calcula- ceiving as a simple expression of fruitcake was lost during the crash ceipt. With the advent of huge, getting bigger, tions. If we were to put sales tax on kindness. of an overseas flight somewhere in FedEx and its competitors, the and no one is willing to budge one each and every fruitcake transac- Little did I realize that it has the the Middle East in the past 12 need has actually been reduced; inch to solve this increasingly dif- tion, we would be able to eliminate potential of solving the state’s vex- months. Obviously, that would however, the geography has been ficult and vexing problem. any state deficit within a single ing financial problems. 20111212-NEWS--0009-NAT-CCI-CD_-- 12/9/2011 11:06 AM Page 1

December 12, 2011 CRAIN’S DETROIT BUSINESS Page 9 OTHER VOICES: State can regain lead in manufacturing

In a few shorts weeks, after the them; Michigan has been ground calls on leaders from industry, still make cars, and innovative holiday glitter fades away, another zero. But we also are better posi- academia and government. We ones at that. But we also will shiny package awaits Michigan- tioned than any other state to be have the tools to create and test stamp our mark on newly devel- ders: the North American Interna- the epicenter of manufacturing in- new materials and technologies, oped materials, nanotechnologies, tional Auto Show. novation and resurgence. educate the next leaders in engi- next-generation robotics, elec- It is here that consumers, ana- Michigan has long been home to neering and technology, and devel- tronics, energy-efficient process- lysts and critics first see the new giants of innovation — names that op policies favorable to both large es, and more. We are ready to re- cars, trucks and SUVs for 2012, embody the power of transforma- and small manufacturers. tool. along with futuristic concept vehi- tive ideas and manufacturing The Midwest is a bellwether for Andrew Liveris is chairman and cles. processes: Ford, Dodge, Kellogg, the nation’s economic health, and CEO of The Dow Chemical Co., and It is a showcase not only for De- Gerber, Upjohn and Dow. Thomas the state of Michigan has unique President Obama’s appointee to co- Andrew Liveris Mary Sue Coleman troit’s car companies, but the hun- Edison himself developed a love of opportunities to retool itself to chair the Advanced Manufacturing dreds of suppliers throughout our tinkering while growing up in help drive a knowledge-based Partnership. Mary Sue Coleman is region. any other sector. Michigan. economy. We must now capitalize president of the University of Michi- These vehicles are the fruits of Yet for all its muscle, manufac- There is no one solution to revi- on two strengths: manufacturing gan, one of six universities partici- our factories and laboratories, and turing is in trouble. As a nation, talizing an industry as historic heritage and our unlimited capaci- pating in the partnership. UM will this annual extravaganza should we are losing manufacturing jobs and diverse as American manufac- ty of talent and innovation. host a regional meeting of AMP on give us pause about the state of and the talented people who fill turing. The president’s initiative As a state and a nation, we will Dec. 12. American manufacturing and technology. More than ever, it is time to re- assert our leadership as the world’s greatest manufacturer of goods, products and, particularly important, innovations in both the automotive industry and be- yond. A LOAN WITH Earlier this summer, President Barack Obama unveiled the Ad- vanced Manufacturing Partner- ship, an important step in acceler- ating advanced manufacturing in America. It aims to retain and cre- ate well-paying manufacturing jobs — jobs that use science and technology to increase productivi- ty in both traditional and emerg- ing industries. The president rightly calls this “an all-hands-on-deck effort” from research universities, leading manufacturers and the govern- A CITIZENS BANK LOAN LETS YOU FOCUS ON THE FUTURE ... because the businesses ment agencies charged with sup- porting science and technology. It that will succeed tomorrow are the ones that make the right choices today. They are is a $500 million investment in our economic prosperity as a nation. led by individuals who see opportunity for growth and expansion, and take action with Advanced manufacturing mat- complete confidence. A loan from Citizens Bank will keep you moving forward and ters more to Michigan than to any other state. More than 10 percent never wondering, “What could have been?” of the state’s workforce is in ad- vanced manufacturing. A greater share of employees work in ad- Get the loan you deserve now. To make an appointment with a Citizens Banker, call vanced manufacturing in our state than in the Midwest or United 800-946-2264 or visit CITIZENSBANKING.COM/BUSINESS. States as a whole. It is an equally powerful, and critical, force in the national econ- omy. In fact, manufacturing is the bedrock, performing more R&D, driving more innovation, and ex- porting as much or contributing more to our nation’s economy than

TALK CONTINUED From Page 8 Re: Detroit burden: $19,000 a person Detroit’s Water and Sewerage Department spent unwisely bond money for combined sewer over- flow retention basins, which do not work, for upgrading incinera- tors, which are obsolete, for re- pairing aeration basins, which have been overbuilt — in short, for throwing good money after bad money instead for opting for mainstream technology, which everywhere works. Saulius Simoliunas

Re: Kilpatrick moves into new home This man is a true idiot if he thinks we need him back here to help out Detroit. He is part of the reason for some of the deficit. poppyd DBpageAD.qxp 11/7/2011 3:07 PM Page 1 GET DOWN TO BUSINESS

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December 12, 2011 CRAIN’S DETROIT BUSINESS Page 11

PUBLISHER’S NOTEBOOK

Contact Mary Kramer at mkramer @crain.com. CRAIN’S MICHIGAN BUSINESS Mary Kramer Vandenberg’s story still relevant How did you observe Dec. 7, the anniversary of Pearl Harbor? Hank Meijer, co-chairman of retailer Changing lanes Meijer Inc., and filmmaker Mike Grass spent the day kicking off the release of their documentary, “America’s Senator: The Unexpected Odyssey of As serious leagues fade away, ‘fun centers’ reframe bowling as entertainment Arthur Vandenberg.” BY MATTHEW GRYCZAN button up your satin bowling jacket, sidle — puts it like this: “The days of the top- The timing was perfect. CRAIN’S MICHIGAN BUSINESS into a fiberglass seat in a smoke-filled al- notch, serious scratch bowler are by the The Grand Rapids politician and ley and hoist a Stroh’s. Nearly 80 percent wayside now. You can’t just unlock your one-time newspaper publisher who owling may no longer be the of all bowlers are 44 or younger now. front door and have bowlers stream in died in 1951 was maybe second only king it once was in the days of They want to be entertained — and the like they used to in the 1960s and ’70s. to Charles Lindbergh as America’s Elvis, but it is still boss in best-known isolationist in the late industry is more than ready to oblige. The bottom line is that you have to make 1930s as war engulfed Europe. Michigan. Perhaps the most recent exhibition of it fun.” Along with having the most ten- the future of bowling can be found in Wengers plays its retro-throwback But as Vandenberg himself said, pin bowling lanes of any state, Michigan Royal Oak, where in August, Troy-based character to the hilt. Its offbeat reputa- “Pearl Harbor ended isolationism for boasts the world headquarters of any realist.” Emagine Entertainment opened a $20 mil- tion has made it a hangout for national Brunswick Bowling & Billiards in Muskegon. lion complex featuring 16 lanes of bowl- music acts when they play Grand Rapids Meijer, who says he turned to More than 340 bowling centers are sprin- ing and a 10-screen movie theater. The — among them Weezer, the Foo Fighters, biographies after realizing “I don’t kled throughout the state, from small entertainment complex received a Real Styx and Bette Midler. have the gifts to be a writer of fiction,” burgs to the largest city. Garden Bowl on has been writing a biography of Estate Excellence Award for Develop- “They will bring in their entourage Vandenberg for years. Working in the Woodward Avenue in Detroit is listed on ment/Redevelopment of the Year. The and will take over the whole upstairs and family business — a $13 billion retail the National Register of Historic Places awards are given out by Crain’s Detroit bowl,” Purdum said. giant — has a way of taking the front as the oldest operating bowling alley in Business and the Grand Rapids Business seat as a priority. Meijer says his the country. Journal during the University of Michi- Muskegon: Bowling mecca industry is one that never has Let’s face it. If you live in Michigan, gan/Urban Land Institute Real Estate Forum. featured sabbaticals. He told me last you either have a bowler in the family, After World War II, bowling became week: “As my middle daughter, who’s belong to the “I used to bowl” club or still A.J. Purdum, proprietor of Wengers enormously popular in the Midwest and 21, says, “Dad, you’ve been working fling a ball down the lane. Bowl in Grand Rapids — a bowling center on this my entire life!’” But fading are the days when you’d built when Herbert Hoover was president See Bowling, Page 12 Meijer hopes to have the book finally published in 2012. The In August, Troy-based Emagine Entertainment opened a $20 million documentary, based in part on the complex in Royal Oak that includes 16 lanes of bowling at Star Lanes. book, describes how this powerful Republican senator, often at odds with President Franklin Roosevelt for creating an “imperial presidency” and hatching secret aid deals with Winston Churchill before the U.S. entered World War II, became Roosevelt’s wartime ally. Vandenberg also went on to help shape postwar U.S. policy, through the creation of the United Nations, the CIA and the Marshall Plan. Vandenberg’s story — even in Michigan — had been largely forgotten. “I had people asking me, ‘Now, was that the jeweler?’ ” Meijer said, referring to a well-known local retailer. And Vandenberg, who had an elementary school named for him both in Grand Rapids and Detroit, See Mary Kramer, Page 16

COURTESY OF THE NATIONAL ARCHIVE COURTESY OF EMAGINE ENTERTAINMENT Arthur Vendenberg 20111212-NEWS--0012,0013-NAT-CCI-CD_-- 12/9/2011 10:39 AM Page 1

Page 12 CRAIN’S DETROIT BUSINESS December 12, 2011 CRAIN’S MICHIGAN BUSINESS

MATT GRYCZAN/CRAIN’S MICHIGAN BUSINESS “As an industry, you have to evolve,” said Gary Smith, director of marketing for capital equipment in Brunswick’s bowling division in Muskegon. Bowling: ‘Fun centers’ take different approach ■ From Page 11 Northeast. A current map of the it estimated in 1998, Smith said. United States on which bowling “Even with the leagues today, centers are colored in blue looks the majority are for fun — such as as if those sections of the country mixed leagues of men and women are under the Atlantic Ocean. bowling every other week,” he And arguably the bowling mec- said. “Parties — birthday parties, ca during that time was corporate parties — are huge for Muskegon, where Brunswick had us.” more than 600,000 square feet of So while Brunswick still fires manufacturing space for hard up Throbot — a mechanical rubber bowling balls, accessories kegler the size of a small car that and bowling center equipment. can mimic exactly how anyone Brunswick still maintains a hurls a bowling ball down a lane 250,000-square-foot facility there, — to refine mechanics of the where it employs about 200 people game, the company’s R&D in in administrative, research and Muskegon concentrates on mar- development, repair and ware- keting and novelty. housing activities. But it moved One recent patent protects a manufacturing of bowling balls to way to illuminate lanes with Reynosa, Mexico, and pinsetter black light, while other innova- equipment to Székesfehérvár, tions include new designs of Hungary. bowling center furniture and in- During this golden age, though, teriors. 12,000 sanctioned bowling centers “Even though Brunswick is a operated across the U.S., their manufacturer, we spend a lot of popularity stoked by the ease of time today talking with existing modern pinsetting equipment or potential center owners about and the advent of television. The demographics and how they mar- basements of some, like Airway ket their businesses,” Smith said. Lanes in Waterford Township, were declared fallout shelters during the Cold War. Bowling with the sharks But in the 1980s, it was clear One Brunswick-designed ocean that the sport was overbuilt and theme for bowling centers brings being outflanked by other forms to the realm of pins some of the of recreation. Adding to the pres- theatrics of pinball. At Uncle sure was the precipitous decline Buck’s Fishbowl and Grill — a 12-lane of league bowling and rising prop- center in, of all places, a Bass Pro erty values that made it attrac- Shop in East Peoria, Ill., a man- tive for center owners to sell their eating shark and an alligator spit prime, large acreage for other back bowling balls, after the balls business uses. have been rolled down lanes that “Back when I started with look like wooden docks above Brunswick, there were a little pools of luminous water. Floating over 8,000 bowling centers in the overhead is not a haze of smoke U.S.,” said Gary Smith, director of but fish and a mermaid. marketing for capital equipment Brunswick calls these boutique in the bowling division of centers, where 70 percent of the Brunswick, which, along with revenue comes from the food and competitor AMF, dominates the do- beverage side and the remainder mestic bowling industry. “Today from bowling. That’s almost the we have about 5,200, and more will reverse percentage of a tradition- close. That’s because as an indus- al bowling center that depends on try, you have to evolve, and a lot of the league play of serious bowlers. those facilities failed to evolve. Wengers in Grand Rapids also Brunswick now emphasizes to is a boutique center, but its main- its customers the entertainment stay is cheap beers and music rather than competitive side of that thumps so loud it may throw bowling. While league bowling has off a well-thrown ball. declined steadily over 30 years, the Because bowling centers offer a number of people who participate vast range of specials based on in bowling has risen steadily. time of day and day of the week, The industry estimates that prices can range from $1 a game about 70 million people bowl every year, up from the 50 million See Next Page 20111212-NEWS--0012,0013-NAT-CCI-CD_-- 12/9/2011 10:40 AM Page 2

December 12, 2011 CRAIN’S DETROIT BUSINESS Page 13 CRAIN’S MICHIGAN BUSINESS

From Previous Page over the past 10 years, we have products such as frames for spe- per person at Wengers on Monday probably built more centers cialized bowling center furniture afternoon to $24.99 to rent a lane There are more (entertainment) options around the Atlanta area than any- to local companies, Smith said. for an hour at Uncle Buck’s for up “ where,” Smith said. Southern And while he thinks that the to eight people during prime time for those people. ... All of that stuff takes bowlers often will hit the lanes United States always will be the on weekends. when summer weather becomes bowling capital of the world, “I probably market the hardest away from bowling. oppressively hot. Smith said, American-style bowl- to colleges because we have so ” Brunswick Bowling employs ing is catching on in the northern many of them in our area,” said A.J. Purdum, Wengers Bowl about 4,800 people at its manufac- European countries, Germany, Purdum, 37. He points to Grand Val- turing plants and at about 200 France, Russia and Poland. ley State University, Grand Rapids centers, an entertainment center ments in the 1925 Saturday bowling centers that it owns and And back in Grand Rapids, the Community College, Thomas M. Coo- that will have one area for families Evening Post talked about bowling operates worldwide. Its sales rep- proprietor of Wengers adapts to ley Law School, Calvin College and and a separate boutique section for as only one offering in recreation resent about 10 percent of the the new era of bowling — a form of small campuses of Western Michi- young adults. centers that had multiple uses. $3.5 billion in annual revenue of recreation that remains rooted in gan University and Michigan State While the emphasis on enter- Even a main reason for bowl- its parent company, Lake Forest, Michigan. But even Purdum con- University. There’s open bowling tainment may seem downright un- ing’s popularity in the northern Ill.-based Brunswick Corp. fesses that electronic dance music each day and specials for the American to bowling, the game ac- climes — recreation during winter The evolution of bowling has and dubstep takes some getting smallest wallet: sometimes $5 all- tually is returning to the roots of — is being reversed. “Bowling be- helped employment in West Michi- used to. you-can-bowl nights, $1 draft beers recreation. “Today it is coming came the September-to-April thing gan, because Brunswick has out- “I’ll be honest with you: I can’t and $2 well drinks. full circle,” Smith said. Advertise- because of the cold weather, but sourced the manufacturing of stand either style of music.” “We make it affordable to them because college kids are the brok- est kids on the planet,” Purdum said with a laugh. The Internet jukebox gets a workout with any type of music the students want, including electronic dance music during Electrobowl night and dub- step, a form of electronic music that originated in London. “They are different styles of mu- sic that have their own following of people,” said Purdum, who bought Wengers with his wife, Pat- ty, about two years ago. Purdum said he is making a go of the bowling business even though metro Grand Rapids has lost thousands of league bowlers over the past decade. “Part of the reason is there are more options for those people,” he said. “There’s the Griffins (farm club for the Detroit Red Wings of the National Hockey League); you have the (West Michigan) Whitecaps (the single-A minor-league baseball farm club for the Detroit Tigers); you have a 1 million-square-foot shopping mall in Grandville that wasn’t there before — all of that stuff takes away from the bowling industry.” Smith said Brunswick’s re- search on boutique centers backs up Purdum’s experience. AN ATTORNEY THE RIGHT ATTORNEY “A lot of people will describe them as bowling nightclubs,” he said. “They focus on the food and beverage, and the bowling is there as entertainment to keep people longer. “If you go to Wengers on a Fri- day night and the place is packed, you may see that a good percent- age of the people never pick up a ball. They are there with their friends, watching.” Demographic data show that more than two in five of all bowlers are 24 or younger, so Wengers and other smaller and older alleys with character can be- come trendy places. One big family On the other end of the spec- trum, sprawling, traditional bowl- ing centers fight for customers by Work with a legal team that’s built to do what’s right. While most law firms claim to offer you the converting themselves into indoor best attorney for the job, they’re simply not structured to do so. That’s where we’re different. We have entertainment malls, Smith said. the flexibility and resources to tailor our services precisely to your needs. That’s a better partnership. Prime examples in Michigan in- clude a former 40-lane center in Traverse City known as Timberlane that tore out seven lanes to evolve into a family fun center now called A BETTER PARTNERSHIP™ Lucky Jack’s. In addition to bowl- WNJ.com ing, space is now devoted to the “best laser tag in the north,” bumper cars, an arcade and bil- liards. Southfield Sterling Heights Lansing Grand Rapids Holland Muskegon And between the two formats are what Brunswick calls hybrid 20111212-NEWS--0014-NAT-CCI-CD_-- 12/9/2011 10:41 AM Page 1

Page 14 CRAIN’S DETROIT BUSINESS December 12, 2011 CRAIN’S MICHIGAN BUSINESS 5X5 Night: Like a show-and-tell for biz – with a cash prize

BY PAT SHELLENBARGER SPECIAL TO CRAIN’S DETROIT BUSINESS FEED MONEY We determined pretty quickly Molly Clauhs had an idea for a On the east side of the state, a more informal version of 5X5 “ new business to revive some old- similarly encourages that the event itself and having fashioned skills, such as home can- entrepreneurship: Detroit Soup ning, sewing and beekeeping. (detroitsoup.com). Five dollars that platform was as valuable or What she didn’t have was the mon- buys you a bowl of soup, salad, ey to launch the venture. bread and dessert, along with the more valuable than any dollar Likewise, Jerrad Matthew need- chance to vote on a variety of creative projects pitched over ed a little financial boost to create Clauhs Matthew amount. a website promoting Grand dinner. Scheduled for the second ” Sunday of the month at the Rapids’ fashion designers and bou- awarded a total of $35,000 to 11 con- Rick DeVos, Pomegranate Studios Mexicantown Bakery. The winner tiques. testants. takes home each night’s kitty, Thus, one evening late last Originally, the staff at Pome- which can reach $1,000. “All good ideas, very creative.” money, DeVos said. Contestants month, the two young entrepre- granate Studios narrowed appli- “You had me at Zipline.” and audience members began neurs brought their ideas to a cants to the five finalists. In No- In the end, the judges, including sharing ideas and collaborating, stage in the Grand Rapids Art Muse- vember, the program offered a Another, Matt Davidson, sought DeVos, decided to give $2,500 each he said. Some ideas that didn’t win um, where a panel of judges and an more democratic method, allowing support for his idea: the “Bar- to Clauhs and Matthew. went forward anyway — such as auditorium full of spectators anyone 18 and older to vote for the card,” a coaster carrying advertis- “It definitely helps to start Nicole Infante’s Grandwich, a con- heard their pitches. five finalists on the program’s ing and doubling as a cover for a things out,” said Matthew, who test among local restaurants to It was the seventh monthly 5X5 website, 5X5night.com. drink, if you should step away to owns a Grand Rapids modeling create Grand Rapids’ signature Night, a forum created to encour- That’s an approach DeVos, the the bathroom or out for a smoke. agency. He plans to use the money sandwich. age new businesses and offer a lit- grandson of Amway Corp. co- Julie Raynor proposed starting to set up a website for Rag Trade GR. “We determined pretty quickly tle seed money for the best ideas. founder Rich DeVos, introduced in a program to help children who Clauhs, who owns a food truck that the event itself and having “It came up originally as an idea another of his ventures: ArtPrize, stutter by training speech patholo- called the Silver Spork, also plans to that platform was as valuable or to have kind of a show-and-tell an annual art competition that al- gists, distributing information and set up a website for her new busi- more valuable than any dollar night,” said Rick DeVos, who start- lows the public to choose the win- producing skits to be performed in ness, Grand Rapids Skill Share, and amount,” DeVos said. “There are a ed 5X5 last February through his ners. schools. organize classes in several nearly lot of people doing interesting Pomegranate Studios, a Grand About 6,500 people visited the As the five finished their pitch- moribund crafts, such as cheese things in West Michigan. It’s about Rapids-based business incubator. 5X5 Night website, narrowing the es, members of the audience began making and chicken keeping. getting these ideas surfaced. It’s The idea was to give five people 33 ideas to the five finalists — in- tweeting their questions and com- “Beyond the money, it’s a vali- having an excuse and a reason to five minutes to present their ideas cluding Clauhs, 23, and Matthew, ments, which scrolled on a screen dation of the idea,” she said. “I’m share them and digest them in a with five slides to a panel of five 29. Among their competitors was at the front of the auditorium. really more excited about the expo- useble way.” judges who would award a $5,000 Jarl Brey, who wanted to install a “Barcard is going to work.” sure and to be part of 5X5 Night.” The next 5X5 Night will be Dec. grant to get the idea off the ground. “zip line” offering rides across the “Stutter project is the right As 5X5 Night evolved, it became 20. The deadline for submitting Since it began, the program has Grand River. thing to do.” clear it was about more than just ideas is Tuesday. WOW! AMERICA’S FASTEST GROWING COFFEE CHAIN Ranked by CNBC 9.5% unit growth Ranked Top 30 Food Franchises by Franchise Business Review 11% + same-store sales year-over-year Build-out costs reduced by 40% There has never been a better time to own a BIGGBY! 20111212-NEWS--0015-NAT-CCI-CD_-- 12/9/2011 10:37 AM Page 1

December 12, 2011 CRAIN’S DETROIT BUSINESS Page 15 CRAIN’S MICHIGAN BUSINESS Meijer made mark not just in business, but also in philanthropy

PAT SHELLENBARGER his later years Meijer delighted in ca’s most successful capitalists. those newly unemployed. SPECIAL TO CRAIN’S MICHIGAN BUSINESS giving much of it away. He was the first retailer to com- Meijer never was comfortable It is an He approached philanthropy bine a grocery store with a general talking about his wealth. When In his company’s private plane “ with the same zeal that had built merchandise store, considered a Forbes magazine first placed him above upstate New York, Fred extraordinary legacy Meijer Inc., the chain of some 200 risky venture in 1962 when he on the list of the 400 richest Ameri- Meijer asked: How many more stores throughout the Midwest opened the store on 28th Street in cans, Meijer called the magazine to sculptures should he buy before he for Fred. with 60,000 employees and esti- Grand Rapids. It became the model say the money wasn’t all his but died? ” mated revenue of $14.63 billion in not only for future Meijer stores was divided among his three sons He was re- Joseph Becherer, Meijer Gardens 2011. but also for the chain’s most formi- and various trusts. Forbes recently turning from a In addition to Meijer Gardens, dable competitor, Wal-Mart Stores listed Meijer Inc. as the 13th- foundry in Bea- jer, who died of a stroke Nov. 25 at he and his wife, Lena, were the ma- Inc. Years later, Meijer spurned a largest privately held company in con, N.Y., where age 91, would build the gardens’ jor donors for Spectrum Health’s feeler from Wal-Mart founder Sam the nation. he had helped collection to about 300 pieces. Fred and Lena Meijer Heart Center Walton, who wanted to buy the Even after turning over the com- send off to Mi- Becherer says Meijer Gardens to- and its Lemmen-Holton Cancer Walker-based chain. pany’s reins to two of his sons, lan, Italy, a 24- day is the second-leading tourist Pavilion. They gave untold mil- Meijer was unusual among West Hank and Doug, Meijer remained foot-tall bronze attraction in Michigan, behind The lions for countless charitable caus- Michigan businessmen. He was active in the business, often visit- statue of a horse Henry Ford in Dearborn. It also is es, including acquiring miles of not overly religious and was a lib- ing the company’s stores, chatting based on a de- among the 100 most-visited muse- hiking trails and public parkland, eral on social issues, promoting with customers and employees, Meijer sign by Leonar- ums in the world, according The creating a public broadcast center civil rights and favoring a even pitching in to pick up trash or do da Vinci. Its twin soon would be Art Newspaper, a London-based for Grand Valley State University and woman’s right to choose abortion. bag groceries. installed in the Frederik Meijer Gar- monthly publication that covers helping build the new headquar- He was an early opponent of the He was dressing for one of those dens & Sculpture Park near Grand the visual arts. ters for the Michigan State University Vietnam War. visits when he suffered the fatal Rapids, and Meijer had donated When Meijer Gardens opened in College of Human Medicine. In business, he was both a risk- stroke. millions of dollars so both pieces 1995, it was projected to attract “He said, ‘You know, spending taker and a fiscal conservative. He He had long since prepared for could be completed. 75,000 visitors a year. It averages this money is almost as much fun as was willing to make bold moves, his death, leaving the company in “Fred, I think, was trying to un- 550,000 a year, and last year drew making it,’ ” said Larry ten Harm- but usually with the assurance of the hands of his sons and Meijer derstand what made a collection,” 640,000. sel, co-author of the biography Fred success. Perhaps his greatest fail- President Mark Murray, a former said Joseph Becherer, vice presi- “It’s an extraordinary legacy for Meijer; Stories of His Life. “Fred ure was the opening of seven president of Grand Valley. He also dent and chief curator of Meijer Fred,” Becherer said. would say, ‘You know, I’ve had so SourceClub stores in 1991 to com- left substantial endowments for Gardens. “Did three things make a While his name is associated much in my life, I hope other people pete with Wal-Mart’s Sam’s Club. Meijer Gardens and his other collection? Did 30 things make a with the orange and white signs in can have that and live as long.’ ” The next year, Meijer closed all charitable causes. collection? I think he was trying to front of stores throughout Michi- Meijer’s father, Hendrik, a SourceClub stores. His biographer, ten Harmsel, re- get his hands around what history gan and the Midwest, in West Dutch immigrant who opened the In recent years, when the com- called that Meijer once said, “If I would see as an important endeav- Michigan he is known first for his first store in 1934, was an anar- pany laid off hundreds of employ- hadn’t given the money away, we or — not something fleeting, but generosity. After spending most of chist, ten Harmsel said. His moth- ees to remain competitive with probably could have opened anoth- something permanent.” his life building one of the largest er, Gezina, was a Stalinist. Their Wal-Mart, he stood in the head- er 20 supermarkets. Why do we Frederik Gerhard Hendrik Mei- private fortunes in the country, in son would become one of Ameri- quarters parking lot, consoling need another 20 supermarkets?”

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“What I learned from the DeVos program is how to take real life problems and find good solutions that meet the business objectives and our customers’ needs. Because of my DeVos experience I am able to contribute a lot more than just the legal perspective.” Lynn Krauss, Associate General Counsel, Dow Corning Corporation 20111212-NEWS--0016-NAT-CCI-CD_-- 12/9/2011 1:13 PM Page 1

Page 16 CRAIN’S DETROIT BUSINESS December 12, 2011 CRAIN’S MICHIGAN BUSINESS Midland center becoming long-distance incubator

BY JENNY CROMIE But MMIC’s reach is about to ex- entrepreneurs in small towns and to establish benchmarking goals business consultant at the Michigan SPECIAL TO CRAIN’S MICHIGAN BUSINESS tend far beyond Midland. rural areas face unique chal- and develop a marketing strategy. Small Business and Technology Devel- It is estimated that MMIC will lenges, Kousky said. Members also will have ready ac- opment Center. In fact, few business After the first of the year, a provide incubator services to about A rural entrepreneur might cess to live workshops, speakers, incubators exist north of Lansing. startup in Ludington or Traverse 100 companies in have difficulty finding a local webinars and other resources. And The MMIC is funded through City will be able to tap into ser- several cities, patent attorney. But Midland — members who need to use office foundation, state and federal vices from a business incubator towns and rural because of its close ties to Dow equipment such as a copier or who grants; fees charged for services; two hours away in Midland — part areas in north- Corning Corp. and Dow Chemical Co. need a conference room for a client sponsorships; and memberships. of a program that one observer of ern Michigan, — has access to many. The new meeting can use the space at MMIC. MMIC may well be part of a trend incubators says is the first of its Kousky said. program will allow MMIC to pair a Sandra Cochrane, a board mem- in the way business incubators pro- kind in Michigan. To ramp up, service provider in Midland with ber of the National Business Incuba- vide services, said Larry Molnar, The Mid Michigan Innovation Center MMIC opened a an entrepreneur in, say, Luding- tion Association and vice president of president of the Michigan Business in Midland houses 14 early-stage companies in a 112,000-square-foot satellite office in ton, Kousky said. the board of the Michigan Incubator Incubator Association and associ- building on the edge of the city. Traverse City in For small incubators, services Association, said MMIC is the first ate director of the Community and July, he said. such as marketing that otherwise incubator in the state that she’s Economic Development Institute Since opening six years ago, MMIC Kousky — like many business incubators — Through that of- may be out of reach because of bud- aware of that will assist clients well for Research on Labor Employment has focused primarily on helping fice and a new Web portal that will go get concerns and small staffs will be beyond its traditional service area. and the Economy at the University of entrepreneurs around Midland. online in January, MMIC will begin accessible through MMIC. For $100 And while the virtual services ap- Michigan in Ann Arbor. In the past few years, MMIC also matching the needs of entrepreneurs a month or $995 a year, entrepre- proach is not unheard of in busi- Michigan has about 60 to 70 in- has offered services to a few “vir- in Alpena, Cadillac, Clare, Harrison, neurs and early-stage companies ness incubator circles, MMIC’s cubators, Molnar said. tual” tenants — that is, entrepre- Ludington, Marlette, Traverse City can access all of MMIC’s services, satellite office also sets it apart. Kousky said the idea is not to neurs who access MMIC’s pro- and other areas north of Midland regardless of location. Members There is demand for MMIC’s ser- compete with a community’s exist- grams and mentoring services with resources and mentors. will be able to tap mentors who can vices in many communities north ing resources but to fill the gaps in from afar, said Ken Kousky, CEO Starting a business can be chal- help them do everything from find of Midland, said Cochrane, who service: “We’ll go where the com- of the business incubator. lenging regardless of location, but capital and draw up a business plan also works as a full-time technology munity needs us.” Study: Communities finding new uses for old automotive factories BY DANIEL DUGGAN Ann Arbor-based Center for Automo- plant closes, the job and income plant was vacant by 2007. The working on the study. CRAIN’S DETROIT BUSINESS tive Research. loss often causes an economic Michigan Economic Development “This report helps shine a light “It was particularly surprising shock. But many communities Corp. marketed the site and found on how community engagement, a With former automotive manu- to learn how many communities have found ways to recover and at two users: a solar company and focus on flexibility and the involve- facturing plants scattered across have had some success in repur- least partially restore property Continental Dairy, an Arizona-based ment of the private sector, nonprof- Michigan, a new study tries to shed posing former automotive sites,” values and employment.” powdered-milk manufacturer. it groups, and all levels of govern- light on finding new uses for them. Valerie Sathe Brugeman, project Among the seven case studies of A range of local, county, state ment can help them recover,” Plenty of work remains to be done. manager of the Sustainability and plants in the report, the former Del- and federal incentives helped the Williams said in a release. Since 1979, 105 auto manufactur- Economic Development Strategies phi Corp. plant in Coopersville, west deal come to fruition, and it is Since 1979, 267 of the 447 U.S. auto ing sites in Michigan have closed group at CAR and the study’s lead of Grand Rapids, offers a frame- now being redeveloped for Conti- plants have closed, according to the and 61 remain vacant, according to researcher, said in a press release. work for new industrial uses. nental. report. Of those that closed, 42 per- a study released last week by the “When an auto manufacturing After being idled in 2006, the Groups involved with the study cent did so between 2004 and 2010. expect such stories to be an exam- Of the 267 closed facilities, 48 ple to help other government lead- percent have been repurposed to ers and investors, said Jay new uses or are in the process. Williams, director of the federal Of- Daniel Duggan: (313) 446-0414, fice of Recovery for Auto Communities [email protected]. Twitter: Meet with and Workers, one of the entities @d_duggan companies all Mary Kramer: Biopic over the world ■ From Page 11 seems short-changed in the public Ford Presidential Library and Museum. monument department in part be- The full film will be shown tonight before your cause Gerald Ford took prece- at the Grand Rapids Public Library and dence on naming of the federal soon will be available for sale. building in Grand Rapids. Vandenberg’s apparent genius competition But Vandenberg’s story seems was in striking bipartisan compro- vividly relevant today as the coun- mise. It’s a genius in seeming short try faces an economic crisis as seri- supply as Congress was unable — boards the plane. ous as any foreign military threat. or unwilling — to create economic As Meijer puts it in the film, plans to cut the trillions in deficit. “The great lesson we take from the Meijer said he became intrigued life of Arthur Vandenberg is his ca- with Vandenberg after writing a bi- pacity to change and, by doing so, ography of his grandfather. He start- to help change the way Americans ed the research at the behest of then- think about our place in the world.” city historian Gordon Olson. After Vandenberg delivered a speech making a presentation at a state his- on the Senate floor in 1945 that was torical society meeting, he was con- To learn how Automation Alley dubbed the “Speech Heard ‘Round tacted by the daughter of a historian the World’” in which he outlined in Chicago who had passed away can help you expand your his conversion from isolationist to and left boxes of research materials global realist. on Vandenberg used in his disserta- business globally, contact us In the documentary, he’s de- tion and an early bio. Meijer hauled at www.automationalley.com scribed as a senator out of central a van load of notes and files back to casting — tall, white-haired, Grand Rapids. The 20-year writing or call 1-800-427-5100. “owlish” — and, as New York project began in earnest. Times columnist James Reston re- “We hope people will see (the called, “He’s the only politician film) and ask: ‘What would Arthur who can ‘strut’ sitting down.” Vandenberg think if he were with Meijer is executive producer of us today?’” Grass said. “It’s a good the two-hour film, which was shown question for members of both our in excerpts last week in Grand political parties and for the elec- Rapids and at Ann Arbor’s Gerald R. torate as well.” 20111212-NEWS--0017-NAT-CCI-CD_-- 12/8/2011 5:21 PM Page 1

December 12, 2011 CRAIN’S DETROIT BUSINESS Page 17

Monthly Canada WHERE MICHIGAN DOES BUSINESS Cooper-Standard Holdings Inc. Meritor Inc. he economy of Canada remains one of Crain’s monthly World Watch report Based: Novi contrasts. It mirrors the U.S. market- Based: Troy examines Michigan companies going Canada operations: Six manufacturing fa- T oriented economic system and is one Canada operations: Distribution centers in global with manufacturing, research and cilities, in Georgetown, Glencoe, Mitchell of the world’s more affluent, high-tech in- Boucherville, Quebec; Brampton, Ontario; other operations. World Watch showcas- and Stratford, Ontario. The Stratford com- dustrial nations. Meanwhile, it remains a and Edmonton, Alberta, with remanufac- es Michigan companies that are already plex has three manufacturing sites and a leader in natural resources and agriculture. turing facilities in Mississauga, Ontario; international business leaders in growing technical center. Canada’s economy is the 10th largest in Edmonton; Moncton, New Brunswick; and global markets — and those that are ex- Employees: 1,049 the world, with a GDP of $1.56 trillion. It is Boucherville. panding operations. Products: Body sealing, fluid handling and the United States’ largest trading partner. Employees: 194 Each World Watch Monthly features a anti-vibration systems. Major exports include cars and parts, air- Products: Axle carriers, transmissions, different country. If you know of a Top executive: Bill Pumphrey, president, craft, industrial machinery, telecommuni- drivelines, steering gears and aftermarket Michigan company that exports, manu- North America operations cations equipment, chemicals, plastics, products. factures abroad or has facilities abroad, wood products, petroleum, natural gas, Top executive: Craig Cartmill, general email electricity and aluminum. manager, worldwide operations; and Doug Domino’s Pizza Inc. Jennette Smith, deputy managing editor, The U.S. absorbs about three-fourths of Wolma, general manager, remanufacturing. at [email protected]. Based: Ann Arbor Canadian exports each year, according to Upcoming World Watch reports: Canada operations: Domino’s Pizza Canada is the World Fact Book. Canada also is the January: Japan Miller, Canfield, Paddock and Stone PLC a master franchise of Domino’s Pizza LLC and U.S.’s largest foreign supplier of energy, in- February: South Africa has one office, in Leamington, Ontario, with cluding oil, gas, uranium and electric power. Based: Detroit 341 stores throughout the country. Canada operations: Offices in Toronto and Employees: 3,500 Windsor, representing entrepreneurs, com- Top executive: Michael Schlater, master General Motors Co. panies, families and global manufacturers franchisee, Domino’s Pizza Canada, and Based: Detroit with operations on both sides of the U.S.- Michael Curran, president CANADA Canada operations: General Motors of Cana- Canada border. More information: Canada was the first in- da Ltd. has its headquarters and an assem- Employees: 35 ternational market for Domino’s and is Edmonton, Nisku, bly complex in Oshawa, Ontario; a manu- Services: Legal representation and coun- Fort Saskatchewan now one of the 10 largest markets open out- Anjou, Boucherville, facturing facility in Ingersoll, Ontario; an sel in multi-jurisdictional business transac- side the U.S., with the potential for 400 Prentiss Laval, Pointe Claire, engine plant in St. Catharines, Ontario; tions and litigation including mergers, ac- Calgary Varennes stores. parts distribution centers in Edmonton, Al- quisitions, trade, joint ventures, Langley Dartmouth berta; Langley, British Columbia; Pointe- insolvencies, financing, tax incentives, real Dow Chemical Co. Claire, Quebec; and Woodstock, Ontario; estate, retail leasing and employment is- and a cold-weather development center in sues. Based: Midland Kapuskasing, Ontario. Industries served: Automotive manufactur- Canada operations: Headquartered in Cal- ing, technology, renewable energy, life sci- ONTARIO Vaughan Employees: 12,000 Markham gary, Alberta, Brampton Products: Chevrolet Impala, Camaro and ences, private medical practice and fran- Dow Chemical Ajax, Oshawa chising. Stratford Toronto Equinox; Buick Regal; GMC Terrain. Canada ULC has Top executive: Michael Hartmann, CEO Mitchell Kitchener Milton, Top executive: Kevin Williams, president manufacturing Mississauga More information: Miller Canfield serves Ingersoll and managing director, General Motors of locations in Woodstock St. Catharines clients in the U.S., Europe, Mexico and London Canada Toronto; Fort Tillsonburg More information: The Oshawa Metal Cen- Asia who seek a North American pres- Saskatchewan Windsor Glencoe tre produces 22 million parts a year for the ence. and Prentiss, Al- Oshawa Car Assembly Centre and other berta; and Leamington Kingsville corporate customers. Varennes, Que- bec, to manufac- Guardian Alarm Co. ture basic chemi- Technologies Specialty Sealing Products has a COURTESY OF DOW CHEMICAL CO. cals and plastics. manufacturing plant in Tillsonburg, On- Based: Southfield Dow’s hydrocarbons plant Employees: tario. Freudenberg North America Ltd. Partner- Canada operations: Office in Windsor to in Fort Saskatchewan, 1,000 Alberta. ship has additional sales and manufacturing sell and install alarms for homes and busi- Products: Styro- facilities in Milton, Markham, London and nesses, primarily in Windsor, London and foam brand insulation, hydrocarbons, eth- Vaughan, Ontario; Dartmouth, Nova Scotia; Chatham, Ontario. ylene, polyethylene, electricity, emulsions Edmonton and Nisku, Alberta; and Laval, Employees: Nine for latex paint and an ethylene glycol/ethyl- Quebec. Products: Burglar and fire alarms, med- ene oxide. Employees: 100 ical monitoring devices and access control Industries served: Personal care, trans- COURTESY OF SOAVE ENTERPRISES LLC Products: Seals for the nuclear power in- systems. Soave’s hydroponic operation in Kingsville, portation, health care and home construc- dustry, low-pressure sealing products for Top executive: Jackie Vagh, office manager Ontario. tion. the aerospace industry, oven door seals and Top executive: Jack Broodo, president and clothes dryer seals. Kellogg Co. Soave Enterprises LLC hydrocarbons director, Dow Canada Industries served: Nuclear power, aero- More information: The manufacturing space and appliance Based: Battle Creek Based: Detroit plant in Prentiss is starting new construc- Top executive: Brad Norton, senior vice Canada operations: Based in Mississauga, Canada operations: Soave Agricultural tion in 2012 that will allow it to manufacture president of sales and marketing Ontario, Kellogg Canada Inc. has regional Group includes three entities in Kingsville, a new set of polyethylene grades to be used sales offices in Calgary, Alberta; and Anjou, Ontario: Great Northern Hydroponics, which in feedstock. Quebec; and manufacturing facilities in grows, packages and ships tomatoes; Great Ford Motor Co. London and Belleville, Ontario. Northern Seedlings, which produces veg- Energy Conversion Devices Inc. Based: Dearborn Employees: 7,000 etable seedlings; and Soave Hydroponics Co., Canada operations: Ford Motor Co. of Canada Products: Breakfast cereals and foods the parent company that provides electrici- Based: Auburn Hills Ltd. has an assembly plant in Oakville, On- Top executive: Carol Stewart, president ty to its greenhouse facilities and the On- Canada operations: United Solar, a wholly tario, and an engine plant and an aluminum and CEO, Kellogg Canada. tario grid. owned subsidiary of ECD, has a manufac- plant, both in Windsor. More information: Kellogg Canada is the lead- Employees: 161 turing facility in LaSalle, Ontario, for pro- Employees: 6,600 ing maker of ready-to-eat cereal in Canada. Products: Tomatoes, vegetable seedlings, ducing solar photovoltaic roofing materials Products: Manufactures the Ford Edge electricity. for the Ontario market. and Flex and the Lincoln MKX and MKT. Top executive: Guido Van Het Hoff, presi- Employees: 80 Sells the Ford Fiesta, Focus, Fusion, Tau- Lear Corp. dent and general manager, Great Northern Products: Thin-film solar laminates rus, Mustang, Ranger, Escape, Explorer, Ex- Based: Southfield Hydroponics Top executive: Jay Knoll, interim presi- pedition, F-150, Super Duty, E-Series and Canada operations: Based in Kitchener, On- More information: Great Northern Hydro- dent, ECD Transit Connect. tario, Lear Corp. Canada Ltd. supplies automo- ponics is one of the largest greenhouse oper- Top executive: David Mondragon, CEO and tive interior systems and has seating plants ations in North America; Great Northern president, Ford Motor Co. of Canada in Ajax, Kitchener and Whitby, Ontario. Seedlings ships more than 4 million Freudenberg-NOK Sealing Technologies More information: Ford Canada plans to Employees: 800 seedlings to production facilities across the Based: Plymouth Township launch the 2013 Escape, Focus ST and Tau- Products: Seating systems and trim continent. Canada Operations: Freudenberg-NOK Sealing rus and the 2012 Focus Electric by early 2012. Top executive: Bill Mansfield, manager — Ellen Mitchell 20111212-NEWS--0018-NAT-CCI-CD_-- 12/8/2011 5:03 PM Page 1

Page 18 CRAIN’S DETROIT BUSINESS December 12, 2011

CRAIN'S LIST: LARGEST OUTSTATE NONPROFITS Ranked by 2010 gross receipts Total Operating Fundraising Excess for the Organization, fiscal year end Gross receipts Gross receipts expenses budget expenses year Address ($000,000) ($000,000) ($000,000) ($000,000) ($000,000) ($000,000) Rank Phone; website Top executive 2010 2009 2010 2012 2010 2010 Purpose of nonprofit Peckham Vocational Industries Inc. (9/2010) Mitchell Tomlinson $202.6 $139.7 184.7 NA NA $17.4 To provide a wide range of opportunities to maximize 3510 Capitol City Blvd., Lansing 48906 president and CEO the potential of people striving for greater independence 1. (517) 316-4000; www.peckham.org and self-sufficiency. Includes job training and competitive employment opportunities for people with disabilities International Aid Inc. (6/2011) Brian Anderson 133.3 73.6 132.7 NA 0.2 0.5 To be used by God to provide relief in a crisis and to 2. 17011 W. Hickory, Spring Lake 49456 president and CEO equip missions engaged in rebuilding and developing (616) 846-7490; www.internationalaid.org God-glorifying relationships Hope Network (9/2010) Phillip Weaver 96.2 88.6 94.8 125.3 0.4 1.4 To empower people with disabilities or disadvantages to 3. 3075 Orchard Vista Drive SE, Grand Rapids 49546 president and CEO achieve their highest level of independence. (616) 301-8000; www.hopenetwork.org Interlochen Center for the Arts (5/2010) Jeffrey Kimpton 70.1 44.1 36.9 33.6 1.3 3.2 To engage and inspire people worldwide through P.O. Box 199, Interlochen 49643 president excellence in educational, artistic and cultural programs, 4. (231) 276-7200; www.interlochen.org enhancing the quality of life through the universal language of the arts American Cancer Society, Great Lakes Jill Elder 59.0 72.8 NA NA NA NA Dedicated to eliminating cancer as a major health B(8/2010) vice president problem through prevention, saving lives and 5. Division diminishing suffering through research, education, 20450 Civic Center Drive, Southfield 48076 advocacy and service (248) 663-3400; www.cancer.org Starr Commonwealth (9/2010) Martin Mitchell 57.3 65.4 33.4 NA NA (4.9) To create positive environments where children flourish 6. 13725 Starr Commonwealth Road, Albion 49224 president and CEO (517) 629-5591; www.starr.org Northeast Michigan Community Service John Swise 45.3 NA 44.6 46.6 0.0 0.6 To provide quality planning, programs and services to (9/2010) CEO individuals, families, and communities through the best Agency Inc. use of human and financial resources. These resources 7. 2375 Gordon Road, Alpena 49707 are then directed into programs aiding the poor and (989) 356-3474; www.nemcsa.org otherwise disadvantaged of all ages in northeast Michigan Second Harvest Gleaners Food Bank of Kenneth Estelle 42.1 41.9 41.6 NA NA 0.4 To feed the hungry in our service area by soliciting West Michigan (12/2010) CEO marketable food and other grocery products from all 8. sources available to us, and judiciously distributing those 864 W. River Center Drive NE, Grand Rapids 49321 goods to the needy through nonprofit charities that (616) 784-3250; www.feedingamericawestmichigan.org distribute such goods at no charge West Michigan Cancer Center (12/2010) Joseph Mirro, MD 41.3 42.7 37.2 NA NA 6.2 Outpatient cancer center offering multi-disciplinary, 9. 200 N. Park St., Kalamazoo 49007 CEO/CMO integrative approach to treating cancer patients in a nine- (269) 382-2500; www.wmcc.org county area of Southwest Michigan RBC Ministries (3/2010) Richard De Haan Jr. 41.0 39.9 38.9 NA NA 1.0 To provide materials and teaching to enhance 10. 3000 Kraft Ave. SE, Grand Rapids 49555 president individuals' relationships with God (616) 942-6770; www.rbc.org

This list of 501(c)(3) status nonprofit organizations is an approximate compilation of the largest such organizations outside of Wayne, Oakland, Macomb, Washtenaw and Livingston counties. Because of space limitations, schools, hospitals, churches and associations are not included. It is not a complete listing but the most comprehensive available. Information was provided by the organizations or from state or federal filings. Boysville of Michigan Inc., which Crain's believes would make this list, did not provide figures and its 2010 financial information was not available as of this printing. NA = not available. B The American Cancer Society, Great Lakes Division is based in East Lansing but operates a metro Detroit service center in Southfield. The division serves both Michigan and Indiana. Gross receipts are for the entire division. LIST RESEARCHED BY BRIANNA REILLY AND PATRICE BUSHART

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December 12, 2011 CRAIN’S DETROIT BUSINESS Page 19 Extra DETROIT MEDICAL CENTER Construction booming, but Vanguard profit margins stuck in neutral, Page 23

People

Ⅲ The Practice Transformation Institute has named Kevin Taylor, M.D., Friendly rivalries M.S., as chairman of the third yearlong Mackinac Learning Collaborative. Collaboration and competition drive quality of state’s health plans Taylor is an internist at St. BY JAY GREENE Joseph Mercy of Ann CRAIN’S DETROIT BUSINESS Taylor Arbor and chief medical director of St. Joseph Mercy ealth plans in Michigan are Medical Group. extremely competitive The collaborative began in 2009 and H when it comes to increas- is focused on transformation to a more ing membership and market patient-centric approach in small share, striking the best finan- primary care physician practices and cial deal with hospitals and residency programs. The theme of this physicians, and creating the year’s collaborative is improving care best provider network that management and coordination. helps ease access for patients. Detroit-area practices and providers participating in the third collaborative But health plans also are sur- are: Anchor Bay Clinic/Family Medical prisingly cooperative with Center; Center for Preventive Medicine; each other when it comes to Country Creek Family Physicians; Country sharing best practices on pro- Creek Pediatrics; Douglas Hames, M.D., jects that cut costs, increase ef- P.C.; Family Practice, a division of ficiency and improve care of Michigan Healthcare Professionals; Rosa chronic diseases. Parks Geriatric Center of Excellence- One reason for the competi- DMC; Hampton Medical Center; Health tion is that the Michigan Depart- Centers Detroit Foundation; Lakeshore ment of Community Health re- Medical Center; Macomb Pediatric wards health plans for higher Associates; Michigan Primary Care; Silver quality by paying year-end qual- Pine Medical; Swetech Medical; United ity bonuses and also assigning Outstanding Physicians; University Medicaid members to plans Pediatricians; Williamson Family Medical with higher quality scores. Center; Wayne State University Physician One reason for the coopera- Group-Family Practice Residency and tion is that 10 years ago the John R Medical Clinic. Michigan Association of Health Ⅲ Burton VanderLaan, M.D., FACP, Plans created the Pinnacle has been appointed medical director for Awards to encourage HMOs and network effectiveness for Priority Health. insurers to develop cutting-edge He had been regional medical director quality programs and share best for Hartford, Conn.-based Aetna Inc. practices with each other. JOHN SOBCZAK Ⅲ Patricia This fall, 10 health plans won Beverly Allen (left), CEO of OmniCare Health Plan, and Vicki Boyle, director of quality improvement at Health Plan of LoRusso, D.O., has awards in 15 categories that in- Michigan, represent competitors who nonetheless work together to improve the overall health care system. “It is been elected to the cluded projects to reduce child- healthy competition and very collegial,” Allen said. “The beneficiaries are our members.” American Society of hood obesity, improve wellness, Clinical Oncology reduce high blood pressure and ahead of other states in push- Nominating enhance preventive health mea- ing up the bar of quality,” Allen HMO AWARD WINNERS Committee. sures. (See box, this page.) said. “Coventry is in 10 states, LoRusso is and we are by far the highest The Michigan Association of Health Plans created the Pinnacle “We so much focus on price, Awards 10 years ago to encourage HMOs and insurers to develop currently director of premiums and cost contain- group of HMOs, but that is phase-one clinical cutting-edge quality programs and share best practices with each ment, sometimes we lose sight changing as other states are trials and the Center other. This fall, 10 health plans won awards in 15 categories that of overall performance and in- catching up.” LoRusso for Experimental included projects to reduce childhood obesity, improve wellness, OmniCare is part of Coventry reduce high blood pressure and enhance preventive health Therapeutics at the Barbara Ann novations that help to make Health Care, a for-profit national measures. The winners: Karmanos Cancer Institute and professor changes in the system,” said Rick Murdock, the HMO associ- HMO based in Bethesda, Md., of hematology and oncology at Wayne Ⅲ OmniCare Health Plan in Ⅲ HealthPlus of Michigan won ation’s executive director. that operates Medicaid HMOs State University School of Medicine. in 10 states. Detroit won in the community for reducing blood pressure of Her three-year term on the committee Murdock said competition to outreach category for creating members by using electronic improve quality among health “We are very competitive, but begins in June. it is healthy competition and its Doc Bear Shuffle hip-hop medical records to identify plans has helped propel the song-and-dance DVD that Ⅲ Emanuel Rivers, very collegial,” Allen said. “The patients and working with state’s health insurers to the encourages children and adults physicians on treatment plans. M.D., MPH, has beneficiaries are our members.” been awarded the top in national quality. to lose weight and exercise See story, Page 22. In 2011, the National Commit- Allen said Michigan’s em- more. See story, Page 20. Barry W. Shapiro phasis on quality has elevated Ⅲ Ⅲ Other winners: Flint-based Memorial Award for tee on Quality Assurance and Priority Health won in four the quality of all HMOs, includ- categories, including using McLaren Health Plan for Excellence in Critical Consumer Reports recognized ing Medicaid, Medicare and telemedicine to improve care of pharmacy management, Care Medicine. 11 of Michigan’s Medicaid commercial plans. homebound heart failure Southfield-based Rivers is director health plans in the top 50 for ex- UnitedHealthcare Great Lakes “We are quite proud of this patients, improving its online of research and a cellence, five in the top 50 for Health Plan for breast cancer Medicaid program over the 10 physician finder directory and senior staff physician commercial and two in the top screening, CareSource Michigan years we have administered” it developing a policy and prior in surgical critical 50 for Medicare. authorization process for for asthma prevention, under managed care, said Sue Rivers care and emergency Beverly Allen, CEO of Omni- genetic counseling, testing and Dearborn-based Midwest Health medicine at Henry Ford Hospital, which Care Health Plan, said quality Moran, director of the state screening. See story, Page 21. Plan for glaucoma screening, he joined in 1986. He is board certified standards by NCQA and the Medicaid program operations Ⅲ Health Plan of Michigan won Battle Creek-based Venture in emergency medicine, critical care state community health de- bureau in the community in two categories: Providing Behavior Health for establishing a primary care clinic in a mental medicine and internal medicine. partment have helped make health department. alerts to Medicaid patients on health center, and ValueOptions The Society of Critical Care Medicine Michigan’s HMOs one of the “There has been substantial preventive care services and care coordination of foster care in Wixom for depression care gives the award to recognize contributions best collective groups in the improvement in all areas, in- children. See story, Page 21. management. to the design or implementation of nation for quality. cluding quality, level of service, evidence-based practice. “Michigan is light years See Plans, Page 20 20111212-NEWS--0020,0021-NAT-CCI-CD_-- 12/8/2011 4:50 PM Page 1

Page 20 CRAIN’S DETROIT BUSINESS December 12, 2011 Health Care Extra Plans: • The largest health care focused law firm in the nation. Driving quality ■ • Over 40 years in the health law business. From Page 19 enhancement of operations and • More than 160 attorneys serving health care clients. use of technology,” Moran said. OmniCare mascot • Representing over 500 health care organizations nationwide. Vicki Boyle, director of quality improvement with Health Plan of Michigan, said competition is stimu- hip-hops for health lated because the state’s Medicaid program rewards higher-perform- With Michigan ranking 10th in ing HMOs with more members the nation for obesity, and with through what is known as Medic- 33 percent of the aid member auto assignment. people in Wayne Pinnacle Every quarter, the state compara- County either tively scores quality in child care, obese or over- Awards women’s care, living with chronic weight, OmniCare disease or illness, and access to care. Health Plan wanted to create a fun Health plans that score higher re- program to encourage members ceive more members in the counties and the community at large to where they are licensed to operate. lose weight and exercise more. Boyle said health plans compete The Detroit-based Medicaid to improve quality scores so they HMO came up with the Doc Bear increase membership through Shuffle, a hip-hop song and HAPPY HOLIDAYS. auto assignment, member self-se- dance that has been recorded in lection, NCQA rankings and to im- a five-minute DVD. prove member health. “The Doc Bear Shuffle started “We have grown by high quality with a little idea at one of our scores and auto assignment. It is meetings, and it grew from why (Health Plan of Michigan) is there,” said Beverly Allen, CEO now the largest Medicaid HMO in of OmniCare. the state,” Boyle said. Doc Bear is OmniCare’s mas- Moran said Medicaid also col- cot, a cartoon character that en- lects data to rate health plans for courages people to eat well and quality based on a three-star system live healthy lifestyles. that is publicly reported online and Allen said daughter Ciara in a consumer guide for members. plays Doc Bear in the DVD, and “This helps people choose the her friend Drew Parks is the rap- highest-quality HMO based on their per. 201 West Big Beaver Road | Suite 1200 | Troy, MI 48084 | 248.740.7505 hallrender.com own needs and location,” Boyle said. During the past year, Omni- OmniCare has surveyed how Care has presented the Doc Bear people select health plans and finds Shuffle several dozen times at that physician recommendation is community events and in schools still is the No. 1 factor, Allen said. before more than 60,000 people, “Word of mouth about quality is Allen said. More than 700 DVDs a powerful thing,” Allen said. “Lo- have been released to the public. cation plays a role, as well as According to the Centers for whether a plan rewards for Disease Control and Prevention, healthy behaviors.” childhood obesity in the United To help HMOs monitor how they States has tripled in the past are doing, community health mails decade. More than 11 percent of out monthly reports, Moran said. children in Michigan are consid- The data sheet includes not only 19 ered overweight. key quality measurements but also Poor diet combined with a compares HMOs on how promptly lack of physical activity is now they pay claims, number of member recognized as the second-leading complaints and how well they con- cause of preventable death in the duct blood lead testing in children United States, behind only tobac- under age 2, she said. co use, said the Michigan State Boyle said the state HMO associ- Medical Society. ation also sponsors monthly meet- — Jay Greene ings of quality improvement offi- cers with state Medicaid officials capacity to serve the new popula- invited to share best practices and tion,” Murdock said. discuss various quality initiatives. “Employers also benefit, be- “We discuss collaborations on cause commercial plans also have projects like asthma and provider raised the bar on quality and will incentives,” said Boyle, a regis- be able to participate in the health tered nurse. “There is a strong em- insurance exchange,” he said. phasis on quality improvement for Sometime early next year, the state as a whole.” Michigan legislators are expected During the past decade, Richard to approve Senate Bill 693, which Frank, M.D., HealthPlus of Michi- would create MiHealth Market- gan’s chief medical officer, said im- place. The MiHealth exchange will proving quality has become a key be a nonprofit online clearing- business strategy for health plans. house for health insurers to sell “The state has done a very fine low-cost and federally subsidized job to wrap quality into contracts, coverage for people who meet cer- create a financial bonus structure tain income guideline policies. and issue monthly quality re- Under health care reform, peo- ports,” Frank said. “It has saved ple who earn up to 400 percent of the state more than a billion dol- the federal poverty level, or $88,200 lars” compared with traditional for a family of four, will be eligible fee-for-service Medicaid. for health insurance subsidies Because of the competition to based on income. improve quality, Michigan’s Med- “The exchange will bring com- icaid HMOs are well positioned to petition to the small-group and in- take care of an additional 400,000 dividual market,” Murdock said. to 600,000 people who will become “It may not lower rates, but it will eligible for Medicaid under health keep the rate of increase lower and care reform in 2014, Murdock said. ultimately impact premiums.” “Over the past 10 years, health Jay Greene: (313) 446-0325, plans have become high perform- [email protected]. Twitter: ing by any measure and have the @jaybgreene 20111212-NEWS--0020,0021-NAT-CCI-CD_-- 12/8/2011 4:50 PM Page 2

December 12, 2011 CRAIN’S DETROIT BUSINESS Page 21 Health Care Extra Preventive care reminders Remote patient monitoring cuts costs Health plans, home health agencies and hospitals are using benefit HMO and members telemedicine to help This is new technology that Pinnacle manage members’ “ Health Plan of Michigan has devised of the Michigan Association of Health chronic diseases only before was used by the a system that allows any employee Plans, said Health Plan’s informa- Awards and avoid hospital who answers a Medic- tion-technology system is the most readmissions and Veterans Administration. We aid member’s phone Pinnacle sophisticated in the state. unnecessary visits to emergency call to remind that pa- “Other members look at Health departments, and to address ris- are looking to use this for other tient of services they Awards Plan for technology issues,” Mur- ing health care costs. should discuss with dock said. “This is a great idea that Priority Health’s use of telemedi- conditions. their physician. other plans will pick up.” cine for Medicare patients with ” Mary Cooley, Priority Health The Detroit-based Medicaid Over several years, Health Plan heart failure has reduced health HMO — the largest in Michigan, has seen positive increases in plan and hospital costs by reduc- ment plans; a visit to the ER for un- weigh in and take their blood pres- with 285,000 members — is trying members accessing preventive ing inpatient stays, said Mary controlled fluid overload; and co- sure. The readings are monitored by to cut health care costs brought on health services, Boyle said. Cooley, Priority Health’s director morbid conditions like cardiovas- nurses in the home health agency of- by failing to take advantage of pre- For example, well-child visits in- of care management for Medicare. cular disease, said Cooley, a nurse. fice, which forwards the data to Pri- ventive care services. creased from 69 percent visits ful- Telemedicine is the use of com- Cooley said Priority Health ex- ority Health’s nursing team. Doc- “We have integrated our phone filled in 2009 to 79 percent in 2010, munications, usually telephone pected to reduce ER visits and tors are notified of clinical changes. system with our managed care sys- Boyle said. or the Internet, to provide con- hospitalizations, and wasn’t dis- Priority Health pays the home tem and have all the information Prenatal visits also increased, sulting, examinations and diag- appointed. health agencies a monthly fee to of our membership in a series of from 89.9 percent in 2009 to nostic testing. During the past two years, Prior- install the black boxes, equipment preventive health alerts when 92.4 percent in 2010, and post-par- Now contracting with a dozen ity saw a 34.7 percent reduction in and for monitoring, Cooley said. members call in,” said Vicki tum visits increased from 68 per- home health agencies statewide, ER and inpatient costs for a total of Cooley said the health plan Boyle, Health Plan’s director of cent to 74 percent. Priority Health began the heart 383 patients with heart failure, she saves money but also patients quality improvement. Overall, Health Plan receives failure telemedicine project in said. Inpatient days declined 36 have a higher quality of life. HMO staff are trained to first about 7,500 calls per week, and 2009 for Medicare Advantage percent, and inpatient costs While other health plans use take care of the reason for mem- 99 percent are answered in 30 sec- members, Cooley said. dropped by 40 percent, she said. telemedicine to track patient con- bers’ calls, then inform the mem- onds or less. In 2010, Priority expanded the How does the system work? Af- ditions, Cooley said Priority bers of the preventive care ser- “Members love the reminders. program to 18,000 commercial, ter members are accepted into the Health is the first HMO in the na- vices available to them or to ask We first thought we might be both- Medicaid and Medicare Advan- telemedicine program, one of Pri- tion to pay home health agencies them to call their physicians, said ering them, but we confirmed they tage members, she said. ority Health’s home health part- to monitor their patients. Boyle, a registered nurse. appreciate it in three focus groups” Not all patients with heart fail- ners installs a “black box” “This is new technology that “They may need breast or cervi- in 2010, Boyle said. “There is no ure qualify for the program. To be- telemedicine device in the pa- only before was used by the Veter- cal cancer screening,” Boyle said. (medical privacy) issue as long as come eligible, members must meet tient’s home. The black box is ans Administration,” Cooley said. “We also get ... alerts if they we are talking with the member or four qualifying criteria: a recent connected to a wireless weight “We are looking to use this for haven’t filled their prescription.” the responsible party.” hospitalization with heart failure; a scale and blood pressure cuff. other conditions.” Rick Murdock, executive director — Jay Greene history of failing to adhere to treat- Each day before 10 a.m. members — Jay Greene

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PATRICIA A. MARYLAND, Dr.PH Dr. Maryland would be happy to hear your thoughts and questions President and CEO of St. John Providence Health System about health care reform. Write her at [email protected]. and Ministry Market Leader, Ascension Health Michigan 20111212-NEWS--0022-NAT-CCI-CD_-- 12/8/2011 4:49 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS December 12, 2011 Health Care Extra HealthPlus uses EMRs medical Systems Helping doctors be doctors to track hypertension Health plans are just starting to sure, assess patient compliance tap the bonanza of clinical infor- with treatment and inform physi- mation embedded in cians of patient non-compliance physician and hospi- with treatment plans or if blood tal-generated elec- Pinnacle pressure remains high, Frank said. tronic medical Awards In a pilot project that began in records. fall 2010, HealthPlus was able with- Blood pressure is one of more in three months to reduce blood than 40 quality measures publicly pressure of about 27 percent of reported by health plans and moni- members in the project, or nearly tored by Medicare and the National 3,500, said Margaret Kokoska, di- Committee on Quality Assurance. rector of clinical performance im- Richard Frank, provement with HealthPlus. M.D., chief quali- Target goals for patients are a ty officer of blood pressure lower than 140 over HealthPlus of 90. Normal blood pressure is below Michigan, said the 120 over 80. Flint- and Troy- “We do a monthly download from based health physicians with a file with patient plan is always names and their blood pressures” to looking for ways gather the data, Kokoska said. to improve mem- If a patient is identified with bers’ blood pres- high blood pressure, pharmacy Frank sure readings. claims are compared to determine “Blood pressure is not an easily if the patient was prescribed med- accessible clinical variable. It is in ications, said Mary Petrillo, a clin- the medical chart, but we don’t get ical pharmacist with HealthPlus. access to it that easily,” said Frank, “We know when a physician noting that high blood pressure can prescribes Mrs. Jones for hyper- lead to other medical problems that tension medication and the patient include blood clots, stroke and does not fill it,” Petrillo said. “We heart attack. then notify physicians of non-com- But by using EMRs, HealthPlus pliance” with the treatment plan. quality managers felt they could While quality of care improved get a clear picture of members for thousands of patients, Health- with high blood pressure, or hy- Plus costs actually rose because pertension, a common chronic dis- more people were taking medica- ease that is often undiagnosed and tion, but “in some instances you undertreated, Frank said. want to spend money” to improve By making arrangements with health and avoid other medical about 100 primary care physicians, problems, Frank said. Flint-based Genesys and Hurley Med- Kokoska said HealthPlus also is ical Center, HealthPlus gained ac- starting to identify patients with cess to their EMRs to track infor- high body-mass index numbers in mation on hypertension on 16,000 EMRs and eventually wants to ex- of its 200,000 members, said Frank. pand the program to diabetes and The EMRs are used to identify congestive heart failure. members with elevated blood pres- — Jay Greene Ciena seeks to expand nursing home Ciena Health Care Management Inc. in Southfield has filed a letter CON Roundup of intent to lease a 66-bed proposed building addition to be built atop Filings approved: its existing nursing home, Ameri- Ⅲ Providence Medical Center, care Convalescent Center in Detroit, Novi, add two operating rooms, in a $3.8 million project. $5.9 million. If approved by the Michigan De- Ⅲ William Beaumont Hospital, partment of Community Health, Ciena Troy, add 24 beds and renovate Health Care would lease a two-sto- seventh floor West Bed Tower to ry building addition proposed by accommodate new 12-bed unit, $5.8 real estate entity Regency Heights million. Land for a 66-bed nursing home, Re- Ⅲ Northfield Place, Whitmore gency Heights-Detroit. The addi- Lake, lease an addition to add 79 tion will include 28 private rooms nursing home beds and replace 16 and 19 semiprivate rooms with existing beds, $5.3 million. short-term rehabilitation and Ⅲ Harper University Hospital, De- skilled nursing. troit, add one cardiac catheteriza- The new construction also will tion lab, $3.4 million. include a 14,845-square-foot clini- Ⅲ Karmanos Cancer Center at cal service area, dining space, Farmington Hills, Farmington Hills, playroom, laundry services, em- renovate existing facility and add ployee lounge, central shower and PET/CT scanner, $1.1 million. storage. Ⅲ Angela Hospice Care Center, Ciena Health Care would lease Livonia, open a 12-bed nursing the addition from affiliate Regency home, $15.5 million. Heights Land Co. LLC, for 15 years at Applications: $3.8 million. The total project is Ⅲ Basha Diagnostics PC, Dear- 28,783 square feet. born, add second fixed MRI unit, The following are selected other $2.8 million. actions from Nov. 1- 30. — Ellen Mitchell 20111212-NEWS--0023-NAT-CCI-CD_-- 12/8/2011 4:47 PM Page 1

December 12, 2011 CRAIN’S DETROIT BUSINESS Page 23 Health Care Extra Amid Vanguard losses, Duggan upbeat about DMC

BY JAY GREENE changes, Duggan said. But because of a 10-year agree- cardiology and children’s services. lion on construction projects in CRAIN’S DETROIT BUSINESS “We have reduced jobs in some ment with the Michigan attorney But Bryan said another problem 2011, $20 million less than it areas and switched them to patient general that gives the state’s top for Vanguard is its “alarming de- promised to spend each year dur- While the newly minted for-prof- care,” he said. “We have been do- law officer rights to enforce the cline in cash flow, which as we ex- ing the next four years for a total of it Detroit Medical Center has begun ing that on a monthly basis.” contract in 10 key areas, Vanguard pected has fallen well short of bur- $500 million by 2016. its five-year, $500 million capital Duggan said DMC has eliminat- and DMC have few options for mak- geoning obligations,” including Because some projects weren’t improvement plan, parent Van- ed “dozens” of positions, but has ing wholesale operational changes. DMC’s $850 million in construction ready to begin this year, Duggan guard Health Systems Inc. has posted moved people into patient care-re- As a condition of the sale, Van- projects and capital improvements. said he expects Vanguard to catch two straight quarters of stockhold- lated jobs. guard agreed to maintain indigent Vanguard’s financials show net up in 2012 and end the year on er losses so far this year. Bryan said one problem con- and low-income charity care, pro- cash from operations dropped to a schedule with $160 million spent. Since Vanguard took over DMC tributing to lower EBITDA at Van- vide core services and not sell any negative $88 million in the first Vanguard also agreed to spend in January in a $1.5 billion deal, guard is high staffing costs. She DMC hospitals for at least 10 years. quarter from $100 million in the another $350 million on routine DMC has broken ground on sever- said Vanguard staffing costs are an In previous interviews, Duggan first quarter of 2010. capital projects. al projects, including a $43 million industry-leading 42.4 percent of net told Crain’s he expected to improve While not directly related to the For more information, visit pediatric specialty outpatient cen- revenue, driven “mostly on higher profitability through market share drop in cash flow, Vanguard is ex- www.vanguardhealth.com ter, a $77 million Sinai-Grace Hospi- labor costs at the DMC hospitals.” growth in programs like surgery, pected to spend only about $60 mil- /investor-relations. tal emergency department expan- sion and a $110 million DMC Cardiovascular Institute and multi- specialty building project. But aside from those andpro- jects also under way at Harper Uni- versity Hospital and Huron Valley- Sinai Hospital, operational changes at the DMC for the most part this year have not been disclosed. DMC CEO Mike Duggan, who usually defers comment on specific opera- tional changes to Vanguard of- ficials, spoke generally with Crain’s recently about DMC suc- cesses under Vanguard. Duggan “Our volumes Northville, MI Scottsdale, AZ Indianapolis, IN Dallas, TX North Richland Hills, TX Southfi eld, MI continue to grow, and we have con- $150,000,000 $1,334,500 $100,000,000 $50,000,000 $6,150,000 $115,000,000 Revolver SBA 504 Real Estate Loan Revolver Asset-Based Senior Equipment Loan Revolver tinued to hire people to care for the Term Financing Secured Credit Facility Line of Credit Term Financing additional patients,” said Duggan, Foreign Exchange declining to provide specific pa- Sole Lead Arranger Sole Lead & Sole Lead Arranger tient volume or revenue statistics. Sole Bookrunner Lender Administrative Agent Sole Lender Sole Lender Sole Bookrunner Trip Pilgrim, Vanguard’s chief development officer, declined to talk about DMC contributions to Vanguard’s financials this year. For the first quarter of 2012, end- Royal Oak, MI Mason, OH Kansas City, MO Southfi eld, MI St. Louis, MO Grand Rapids, MI ed Sept. 30, Vanguard posted stock- $425,000,000 $155,000,000 $810,000 $20,000,000 $650,000 $225,000,000 holder losses of $19.2 million. Revolver Senior Secured Credit Facilities Equipment & Revolver Term Loan Revolver It was the second consecutive Term B Facility Revolver Working Capital Equipment Financing Term Financing quarter of financial losses for the Term Loan Treasury Management Left Lead Arranger Left Lead Arranger 28-hospital, investor-owned sys- Sole Bookrunner Left Joint Lead Arranger Sole Bank Sole Lender Sole Bank Sole Bookrunner tem. After starting the calendar year with a $2.8 million stockhold- er profit in the first quarter that included DMC’s eight hospitals, Vanguard has posted a total of Powering business growth in the Midwest and Southwest $29.1 million stockholder losses. While the first-quarter financial loss was primarily attributable to with financial strength and commitment. a $39 million pretax charge to ac- quire 11 hospitals and the redemp- tion of outstanding senior dis- We’re committed to the Midwest and Southwest regions. That’s why we’re helping companies here navigate changing count notes, Vicki Bryan, an analyst with New York-based market cycles and create new opportunities for success. Our client managers work with you to understand your business Gimme Credit, said Vanguard’s stock is expected to underperform and seamlessly deliver customized solutions based on your unique needs. Let us help increase your fi nancial fl exibility for the foreseeable future. Bryan said the 11 hospitals Van- and put your growth plans in motion. guard acquired this year, includ- ing DMC, caused Vanguard’s EBITDA margins to drop 100 basis points to about 8.5 percent, which Call 1.313.221.9394 or visit bankofamerica.com/commercialbanking is “far below the 13.5 percent to 15 percent generated by most of Vanguard’s larger peers.” EBITDA is earnings before interest, taxes, depreciation and amortization. But Duggan said DMC profit margins this year have improved, although he declined to specifics. As part of continuing efforts to cut costs and improve efficiency, DMC has been re-evaluating oper- “Bank of America Merrill Lynch” is the marketing name for the global banking and global markets businesses of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., member FDIC. Securities, strategic advisory, and other investment banking activities are performed globally by investment banking affiliates of Bank of America ations, improving work flow with Corporation (“Investment Banking Affi liates”), including, in the United States, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Merrill Lynch Professional Clearing Corp., all of which are registered broker-dealers and members of FINRA and lean process engineering tech- SIPC, and, in other jurisdictions, by locally registered entities. Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured y May Lose Value y Are Not Bank Guaranteed. ©2011 Bank of America Corporation ARR72064 niques and making personnel 20111212-NEWS--0024-NAT-CCI-CD_-- 12/8/2011 4:46 PM Page 1

Page 24 CRAIN’S DETROIT BUSINESS December 12, 2011 Health Care Experience In Your Corner. On-Demand Mail stamps ‘growth’ on its market niche

BY CHAD HALCOM The federal CRAIN’S DETROIT BUSINESS agency reported an annual oper- Bundling and presorting mail to ating loss of offer postage discounts to cus- $5.1 billion on tomers is not a new business mod- $32.2 billion rev- el, but the owners of Auburn Hills- enue for the fis- based On-Demand Mail Services LLC cal year that end- plan to expand soon after carving ed in September out a niche in that market. and is looking at The company expects by the end Laura Quick Tickles various cost-cut- of 2011 to deliver more than 120 mil- ting measures, lion pieces of standard and first- modest appetite for bulk mail. including targeting more than 3,000 class mail for around 40 customers, “Junk mail has a shelf life. It sits post offices for possible closure. and revenue should fall between there until you actually take action A work-sharing assessment $30 million and $35 million. That’s to get rid of it, whereas an email study last year by the postal ser- compared with about $25 million on you can delete without opening or vice Office of Inspector General 80 million pieces of mail for just divert it to your spam filter. Some found that the program authorized over 20 customers in 2010. companies are realizing that,” he $15 billion in discounts but gener- Company President Timothy said. “And there was a hole we saw ated $14.8 billion in cost savings Laura said the growth has manage- in the Southeast Michigan market, for the agency. But Laura said oth- of people who weren’t (offering) er studies have indicated work- Scott Alfree ment eyeing a second location, to open a regional distribution center this specific service.” share companies save the service within the next few months — pos- Specific jobs have ranged from 1.2 cents for every penny they re- sibly in the Columbus area of Ohio, several hundred mail pieces target- ceive in discounts. or in Pennsylvania to aid with de- ing a specific ZIP code to delivering Ronald Sam, president of Troy- liveries along the East Coast. 4 million copies of a pamphlet by based Econ Marketing Services Inc., Laura, president and co-owner Taylor-based Printwell Inc. for a fed- said On-Demand as a competitor First Tier Ranking of On-Demand along with Vice eral government mailing to promote has been successful partly by in Health Care Law President of Operations Rob Quick recruitment to the armed services. leveraging the past relationships and Vice President of Postal Infor- Other customers have included with Budco and partly by “grow- mation Systems Mike Tickles, all Allied Printing Co. Inc. in Ferndale ing from nothing.” He also agreed and marketing services company that his company and other com- I Metro Detroit I Grand Rapids I Kalamazoo I Grand Haven I Lansing left Highland Park printer and dig- ital marketer Brian Unlimited Distri- TGI Direct in Flint. On-Demand ini- petitors tend to focus on first-class bution Co. (Budco) in 2008 to form tially invested around $1 million delivery and steer clear of stan- On-Demand. for mail-sorting equipment, deliv- dard mail, where On-Demand has At first Budco was its only cus- ery trucks and its lease in Auburn concentrated. tomer, but Laura said the company Hills, where it fills out most of a “We also don’t go after the quar- quickly sought savings by adding 30,000-square-foot building, and ter-million-piece job, because it’s customers and finding economies Laura estimates a second loca- so competitive the margin be- Schechterize it of scale under the U.S. Postal Ser- tion’s cost will be around $500,000. comes minimal. I’d rather do the vice’s federal Workshare Program. In late 2009, company executives smaller to midsize jobs in a target- “If we had kept the service with- also launched Expedited Postal Lo- ed area,” he said. in (the operations at) Budco, we gistics Group LLC to take on contract “But businesses are finding a place for us. You’re going to have a would have grown it to 20 million “backhaul” shipping and other de- liveries for other companies, to hard time getting through my pieces shipped per year at the most. use the more than two dozen vans, email firewall to get (an advertise- Probably not even that far,” Laura trucks and tractor-trailers that ment) to me. And the advertisers said. “Our model never works for also carry On-Demand mail. and sales-marketing specialists serving just one company. It has to Laura said Expedited Postal are realizing the conventional wis- be a volume shop. Our original cus- could complete $7 million worth of dom, that (digital media) are the tomer base was big mailers and delivery orders this year. future, isn’t always working.” other printers, but now we’re grow- The Postal Service expects to de- Chad Halcom: (313) 446-6796, ing more by adding in smaller com- liver 167 billion pieces of mail this [email protected]. Twitter: panies — law firms, hospitals and year, down 22 percent from 2006. @chadhalcom others with large mail pickups.” The Workshare Program allows private mailers to get discounts on both standard and first-class postage rates, which they in turn pass along to their customers — in STORIES OF PEOPLE {before} {after} exchange for barcoding and presort- ing mail or collecting and shipping REINVENTING it to specific ZIP code locations. First-class postage, for example, THE REGION… Our experts are the difference. is 44 cents per letter under 1 ounce, We have big thinkers that understand the complicated issues that but the Postal Service can offer dis- AND THEMSELVES. wealthy families and business owners face. Our team of CPAs, JDs, counts to presorters starting at 41.4 cents, going lower depending on MBAs, CLUs, design life insurance strategies that have been coined Changing Gears, airing every Wednesday volume. Standard mail — including “Schechterized” – a robust analysis and application of financial direct-mail promotions, postcards at 8:35 a.m., explores the economic tools that solve complex wealth transfer situations and can simply and bound printed matter exclud- transformation of the industrial Midwest, save money with existing life insurance policies. ing media publications — starts at through the stories of people driving and 25 cents, but private sorters also get 75 years of sophisticated planning with 100s of wealthy families some discounts via work sharing. experiencing this change. has made us a national leader in the life insurance arena. Companies like On-Demand quote a price to the customer, then Learn more at look for mail volume to meet or ex- Changing Gears changinggears.info ceed the discount. Laura said standard mail is a spe- cialization at On-Demand, account- ing for about 75 million pieces, or more than 60 percent of mail volume BIRMINGHAM, MICHIGAN 248.731.9500 delivered this year. Even in a digital media age, Laura contends printers WWW.SCHECHTERWEALTH.COM and advertising shops maintain a 20111212-NEWS--0025-NAT-CCI-CD_-- 12/9/2011 11:27 AM Page 1

December 12, 2011 CRAIN’S DETROIT BUSINESS Page 25 Uptick in engineering has Brightwing looking west

BY SHERRI WELCH CRAIN’S DETROIT BUSINESS Owners hatch After watching its annual sales plunge in 2008-09, Troy-based Re- new general source Technologies Corp. expects to come close to pre-recession revenue by year’s end, thanks to demand for contracting biz engineering and IT employees. Brightwing’s owners Aaron and The staffing and human re- David Chernow have launched a Every clothing designer dreams of the day their line takes off. When it sources services company, which new general contracting busi- began doing business as Brightwing happened to me, I found myself running a small empire. We needed a ness, Jaavis Group, and hired for- in June, is planning an expansion new medical plan. UnitedHealthcare offered choices. There are even plans mer Detroit Lions tight end Pete to Denver within the next year. Chryplewicz to oversee sales. for vision, dental, life and disability. When my employee Michael was The company is projecting its Aaron Chernow met Chry- revenue will rise to at least $33 mil- diagnosed with diabetes, we quickly realized the value of a good plan. plewicz, a Sterling Heights nati- lion to $35 million this year, up ave, through the Entrepreneurs Or- It came in the form of Anne, a compassionate UnitedHealthcare nurse. from $28 million last year. ganization. In 2007, Brightwing posted Through Tri-Chem Corp., a Troy- Call 1.866.470.8293 or contact your broker. $35 million in sales. By 2009, rev- based floor surfacing-materials enue dropped to $22 million. company that the Chernows also “This was the first downturn in a own, the pair started to get re- long time,” said CEO Aaron Cher- quests from commercial cus- START NOW AT GROWHEALTHY.COM now, who owns the business with tomers to surface floors, install his brother David Chernow, chief roofs or to put a new truck dock marketing officer. “We felt lucky to on the building, said Aaron Cher- be only down 20 percent.” now. With the new company, But things Jaavis Group, “We’re becoming have turned more of an integrated supplier to around, he said. them … more of a one-stop shop.” The market is Tri-Chem, which provides fa- booming right cility-maintenance products now on the engi- from floor coatings to degreaser, ©2011 United HealthCare Services, Inc. Insurance coverage provided by UnitedHealthcare Insurance Company neering front filters, heating, ventilation and or its affiliates. Administrative services provided by United HealthCare Services, Inc. or their affi liates. Health for contract em- air-conditioning and electrical plan coverage provided by or through a UnitedHealthcare company. UHCMI561373-000 ployee place- safety protection equipment, is ments, he said. projecting about $9 million in And the com- revenue this year. It has about Aaron Chernow pany continues 4,500 clients, including the do- to see demand mestic automakers and other au- from clients like tomotive companies, casinos Southwest Air- and food-processing plants. lines for “hard- “It’s hard to differentiate to-fill” positions, yourself as a contractor,” Cher- and for techni- now said. “One of the things we cal positions have is we develop our own from other epoxies used to coat flooring.” staffing clients Chernow projects Jaavis will Today, more than ever, global competition, such as Volkswa- hit $1 million in sales in 2012. gen AG, Chrysler new technologies, and corporate David Chernow — Sherri Welch LLC, Texas Instru- streamlining require innovative ments Inc. and Microsoft Corp.’s Florida-based Latin American di- Aaron Chernow said. They settled thinking and leaderships abilities. vision. Brightwing is also seeing on Denver, which will add to offices growth in its higher-level recruit- in Dallas and Fort Lauderdale. Continuing your education can be ing of vice presidents through C- They plan to invest $500,000 in key to your success. From biomedical level executives, as well as in an the office over the next two years, area it moved into three years ago: hiring three employees initially. engineering and chemical biology to project-based recruitment. They’ve set a five-year goal of pro- health IT management, Lawrence Toward the end of 2008 and 2009, ducing an additional $10 million in no one was hiring, Chernow said. annual revenue from the office. Technological University can prepare “In the last year we’ve picked up Denver “is a very tech-savvy several high-profile searches in ad- area with a lot of (venture capital) you for the jobs of the future. dition to picking up Bright Auto- coming in,” Aaron Chernow said. motive’s contract.” And the competitive landscape Rochester-based Bright Automotive for recruiting, staffing and train- Inc., which has developed a plug-in ing companies is good there, David 2012 2012 2012 hybrid electric vehicle, is looking to Chernow added, because “the mar- AMERICA’S BEST BEST COLLEGES MILITARY hire 180 engineers locally, he said. ket is not flooded.” UNIVERSITIES in the Midwest FRIENDLY U.S. News & Princeton SCHOOL Within the last quarter, Troy-based Iconma LLC, which World Report® Review® G.I. Jobs® Brightwing also has signed con- also provides IT and engineering tracts with Troy-based Delphi Auto- staffing and employee recruitment Waive your application fee at motive PLC, Plymouth Township- services, has a few clients in the www.ltu.edu/applyfree based Roush CleanTech and Durr Denver market and it’s targeting Environmental and Energy Systems in other, bigger customers, said man- Auburn Hills to provide the com- aging member Claudine George. panies with management training “We are also seeing that Denver and technical training on new IT is a good spot for staffing, but unless Possible is everything. products and systems. we land a major … Fortune 1000 Brightwing continues to focus client,” there are no plans for Inco- ma to open an office there, she said. Explore over 100 undergraduate, master’s, and doctoral programs in Colleges of on a strategy of finding the right Architecture and Design, Arts and Sciences, Engineering, and Management. person for the job, and not just on “At this point we’re able to han- filling seats, Chernow said. dle those clients from our West Over the past year, Brightwing Coast offices” in Los Angeles and has added 16 new employees, Santa Clara, Calif. bringing it to 50. Sherri Welch: (313) 446-1694, Lawrence Technological University | 21000 West Ten Mile Road, Southfield, MI 48075-1058 The brothers spent the summer [email protected]. Twitter: 800.225.5588 | [email protected] | www.ltu.edu looking at other U.S. markets, @sherriwelch 20111212-NEWS--0026-NAT-CCI-CD_-- 12/9/2011 10:57 AM Page 1

Page 26 CRAIN’S DETROIT BUSINESS December 12, 2011 After Chevrolet, Cauleys stick with what they love: Performance cars

BY RICK KRANZ CRAIN NEWS SERVICE

Jeff Cauley got plenty of advice last year after his Chevrolet fran- chise in West Bloomfield Town- ship was terminated. “I had so many people say, ‘Why didn’t you go after a Hyundai fran- chise? Why didn’t you look at Kia?’” Cauley said. “Well, I don’t want to sell Hyundais or Kias. I re- ally don’t. Life is short. And usual- ly when you do things that you en- joy and you are good at it, it ends up working out.” What Cauley, 50, is good at — and what he loves — is selling per- formance cars. Cauley Chevrolet was one of the top Corvette deal- ers in the country, consistently ranking in the top 1 percent of all Chevrolet dealers in that catego- ry. So what to do after Chevy? Cauley has converted the Chevy dealership into a used-car store, RICK KRANZ/CRAIN NEWS SERVICE but it’s one that specializes in Jeff Cauley (left) and son Joe focus on sports cars like this Corvette at their former Chevrolet dealership, now Cauley Performance Automotive. high-performance models, along with what he calls “specialty vehi- cles” — namely, Jeeps, all-wheel- store. In the old days, it was known showroom is filled with late-model drive Cadillacs and some luxury in the area for the array of new specialty cars, including a 2007 sedans. Corvettes parked out front. Ford Mustang GT, a 2008 Volkswa- Meanwhile, Cauley remains one gen GTI and a supercharged 2010 of only 35 dealers in the country Callaway Corvette. The big, blue selling Ferraris, which generally Corvette was king letters outside spelling “Cauley retail from $200,000 up, from a In some years the Corvette was Chevrolet” are gone, replaced by modern building that showcases the dealership’s No. 1 selling vehi- Cauley Performance Automotive. new and used models. Across a cle. Even after Cauley was noti- Cauley gives a lot of credit for wide driveway from the Ferrari fied in June 2009 that he would the new business model to his son, dealership is the former Chevrolet lose his Chevrolet franchise and Joe, 24, who is general manager. was no longer allowed to order “Joe pushed,” he said. “You’ve new vehicles, Cauley’s Corvette got to believe in and enjoy what sales ranked 26th in the country you are doing.” for that year, thanks to dealer trades. “We are trying to capitalize on A smart move Finding the perfect new space can be our reputation for performance Jeff Cauley points to his Ferrari cars like Ferrari and Corvette and dealership, which opened in 1999. the reputation we have for rac- “When we built the Ferrari meticulous time consuming work. ing,” Cauley said about his new franchise, other dealers thought I business model without Chevro- had lost my mind,” he said. “It We’ll call you when it’s done. let. was the smartest thing that I ever “In a lot of ways, this whole did.” thing is evolving,” he said. “It is Last year, 19 new Ferraris were like ‘build it and they will come.’ ” Today, the former Chevrolet See Next Page

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December 12, 2011 CRAIN’S DETROIT BUSINESS Page 27

From Previous Page Corvettes. Jeff and Joe race at sold. This year, based on presold HISTORY OF CAULEY tracks in Michigan and elsewhere. A Cauley-owned Corvette partici- orders, 32 will be sold by year end. When it came to selling Corvettes, New Ferrari sales are up be- Cauley Chevrolet in suburban pated in the 24 Hours of Daytona in cause of a better supply of the new Detroit consistently ranked in the 1999, 2000 and 2004. California models and a full year top 1 percent of all Chevy dealers of production for the 458. before the franchise was “Ferrari owners are more insu- terminated. Here’s a brief history Backup plan lated. The recession has not affect- of Cauley: “There was a point early on with ed them as much as some,” Cauley Ⅲ 1969: Cauley Chevrolet opens the whole Chevy thing — before I said. in Ferndale. realized it was something you Besides Corvettes, loaded Ⅲ 1978: It moves to West could fight — when Joe and I were Tahoes, Suburbans and TrailBlaz- Bloomfield Township. strategizing, looking at buying a ers were popular models when Ⅲ 1999: A Ferrari franchise is race track,” Jeff Cauley said. Cauley was selling new Chevro- added. He fought for unconditional re- lets. Before it lost the Chevrolet Ⅲ 2010: General Motors instatement of the franchise. Over franchise, the dealership sold terminates the Chevrolet franchise; the years, the dealership ranked Chevy dealership reopens as a about 1,200 new vehicles and about No. 1, 2 or 3 in customer satisfac- used-car store, focusing on 350 used vehicles annually. This performance tuning and sales of tion for the Detroit area, Cauley year, through October, Cauley sold late-model sporty cars. said. But several Chevrolet stores 268 used vehicles, compared with From Automotive News were cut by General Motors in the 211 last year when it was in wind- over-dealered Detroit market. down mode. facturers and trying to make it a “We had a backup plan and were Cauley’s new business model one-stop shop,” Cauley said. ready” in the event GM failed to targets a local community in Jeff’s father, Jack, opened the approve a Chevrolet franchise, he metro Detroit where imports do Chevrolet dealership in 1969 in said. But until Oct. 31 of last year, well. Ferndale and moved the dealer- when the franchise expired, “We are going after late-model ship to West Bloomfield in 1978. Cauley kept his hopes alive. specialty vehicles with unique Jeff became a co-dealer principal “I was battling up until the last flair,” he said. “Every manufactur- in 1988 and took over the store in minute,” he said. “It was like: Re- er has something special. It could 1993 when his father retired. verse this thing now; it is not too be the Subaru WRX. It could be the An interest in auto racing devel- late.” Nissan GTR, the 370Z, the Audi TT, oped after Jeff graduated from col- At first, remaining hopeful, he the Mini Cooper S. lege in 1983, beginning behind the trimmed the number of his em- “We are taking all of the unique wheel of a single-seat Formula ployees only slightly, down to vehicles of all the different manu- Ford race car and moving on to about 50. The business did not shut down for the transformation to Cauley Performance Automotive. The Chevrolet store closed Oct. 31, painters went to work and a tem- porary sign was erected. “If you are starting this from scratch, you start with very few people and you would add as you go,” Cauley said. “We were not do- ing that. We were starting from a full-fledged Chevy operation.” Cutting the number of employ- Mailing Services ees “was a very difficult process.” Today, he employs 24 people at the ShowShow Them Them What What used-car operation. With the loss of Chevrolet, Jeff Cauley touts performance tuning, YouYou StandStand For For an automotive business he and his son developed over the past year. The dealership builds high- horsepower engines, installs su- BBB Accreditation is a commitment perchargers in existing engines and modifies suspensions, some to fairness and honesty that lets for amateur racers. An Edelbrock supercharger with installation consumers know you are a business costs about $9,500, giving a base they can trust - a business that 430-horsepower 2012 Corvette about 600 horsepower, for exam- honors its promises and embodies ple. “It is really everything from A to confidence they deserve. Z,” Joe Cauley said. “We have an old hot rod where the owner asked Your customers start with Professional Jet Management for power brakes to be installed.” bbb.org. Mixed feelings Shouldn’t you? Meanwhile, the Cauleys are seeking more business for the body shop. Two additional insur- ance companies have approved the shop for repairs, and a third is ex- pected to do so. Jeff said business at the former Chevrolet store is tough. He hopes Experience the difference. to break even some time next year. All inclusive management at an affordable fi xed cost. “There are some times when you miss Chevrolet and every- thing that we put into it,” he said. ® •Forming partnerships now “There is another part that I love: Start With Trust •Small, midsize and large cabin jets the idea of controlling our own •Reduce your total operating cost destiny — doing our business the way that we want to do it. •Maximize your aircraft effi ciency Better Business Bureau “Yeah, some mixed feelings,” Serving Eastern Michigan and the Upper Peninsula while enhancing your aircraft he said.“But all in all, we are not appearance, performance & value www.skywayavjets.comwww skywayavjets com looking back. Who knows what Call 248-223-9400 to learn more opportunities the future will Call today for more information, Geoff Sherman 1.248.568.0979 hold?” or go to bbb.org From Automotive News 20111212-NEWS--0028-NAT-CCI-CD_-- 12/9/2011 11:38 AM Page 1

Page 28 CRAIN’S DETROIT BUSINESS December 12, 2011

CRAIN’S ACCEPTING Joint venture failure dooms Axle tax break extension M&A NOMINATIONS BY DUSTIN WALSH that the city says never material- Involved in a merger or acquisition CRAIN’S DETROIT BUSINESS ized. However, at the council in 2011? You may be eligible for the “(The extension) was meeting last week, Keyes made it third annual Crain’s M&A Awards. The exit from a joint venture “ clear American Axle didn’t intend Crain’s Detroit Business and the called Detroit Manufacturing LLC, cre- obviously questionable from the to pay back those abatements un- Detroit chapter of the Association ated by Wayne-based Rush Trucking less the extension was granted. for Corporate Growth will honor companies and individuals in the Inc. CEO Andra Rush, crippled “We are carrying $1 billion in start. ... Once ties were severed following categories: American Axle & Manufacturing Hold- debt. Are we profitable yet? Yes, Ⅲ Best Deal of the Year: Under $100 ings Inc.’s bid to extend its renais- with (Rush), that put the final but we need a few years for our bal- million and $100 million or more. sance zone tax exemptions last ance sheets to go where we want Deals must have closed in 2011. week. nail in the coffin. them to,” he said at Tuesday’s Ⅲ Dealmaker of the Year/buyer-seller. The Detroit City Council unani- ” meeting. “We’re just not in the Ⅲ Dealmaker of the Year/adviser: mously voted down the extension Ken Cockrel Jr., Detroit City Council business of giving money away M&A experts, lenders, CPAs, after learning that the joint ven- right now.” consultants and attorneys, among ture walked away from leasing company along with a supply con- due to American Axle’s laying off Keyes said American Axle has others, are eligible. 300,000 square feet of space at the tract with an automaker. of more than 1,000 workers at its not decided whether it will create Ⅲ Lifetime Achievement: Senior- Detroit supplier’s plant on Hol- The retrofit investment would Detroit manufacturing complex the 20 IT jobs at its Detroit head- level executive who has been brook Street. have been upwards of $2 million, since 2008, after the council extend- quarters or at its technical center involved in significant transactions Rush ended talks with Ameri- according to Steven Keyes, execu- ed abatements that had saved the in Rochester Hills. and has made a significant impact can Axle over the space because tive director of administration company as much as $534,000 an- “I’d hate for the city to view it on the community. the investment and time to retro- and legal for American Axle. nually over the past decade. as a spite move, but they’ve made Applications are at www.crainsdetroit fit the plant was too steep, said American Axle sought to ex- Cockrel said extending the their decision and now we have to .com/nominate. Deadline is Jan. 23. John Mozena, senor public rela- tend the renaissance zone desig- abatements wasn’t a fiscally make an economic decision that Winners will be profiled in the tions executive for Southfield- nation through 2018 by promising sound decision for the city and now makes sense for us.” March 26 issue of Crain’s and based Mort Crim Communications to make $6 million in improve- that the deal would have led to a Meanwhile, Rush continues to honored at an event in April. Inc. and spokesman for Rush. ments to its world headquarters net loss to the city of about seek a plant in Detroit, Mozena For questions about the nomination “The amount of work needed to on Holbrook Street and hire 20 in- $250,000 over five years. said. process, contact Executive Editor be done to meet specific require- formation-technology employees. “To grant approval for some- Rush also is working with the Cindy Goodaker at cgoodaker ments would take too long to meet But without the joint venture on thing that ends at a net loss for the Michigan Economic Development @crain.com or (313) 446-0460. For help in using the nomination form, specific deadlines,” he said. the table, American Axle’s exten- city over 20 IT jobs doesn’t make Corp. to get $7 million in tax cred- contact Marketing Coordinator “(Rush) loved the space, but the sion was dead in the water, said sense,” Cockrel said. “The city of its for the creation of 400 jobs, ac- Jenny Griffith at [email protected] work simply could not get done in Council Member Ken Cockrel Jr. Detroit is fighting for its financial cording to City Council docu- or (313) 446-6003. a cost-effective manner in time.” “(The extension) was obviously survival, so we need to be a little ments. Mozena said that figure is The Detroit chapter of ACG is part of Rush must find suitable space questionable from the start given more discerning and analyze very an estimate, and while the job cre- a global association of professionals for the joint venture or else the their track record with the city of carefully issues that come before ation figure will be in the hun- involved in corporate growth, other company involved, an un- Detroit,” he said. “Once ties were us.” dreds, the group isn’t committing development and mergers and named tier-one supplier, may not severed with (Rush), that put the The city also wants a claw-back to 400 jobs yet. acquisitions. The local chapter was invest in the deal, Mozena said. final nail in the coffin.” on its previous abatements Dustin Walsh: (313) 446-6042, formed in 1984. For more After finding space, the group Council members were skeptical ($120,000) to American Axle that [email protected]. Twitter: information, see plans to formally announce the of extending the renaissance zone were tied to the creation of jobs @dustinpwalsh chapters.acg.org/detroit.

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December 12, 2011 CRAIN’S DETROIT BUSINESS Page 29

BUSINESS DIARY ACQUISITIONS ing and endorsement rights. of Strategic Benefit Services, Strate- way, Royal Oak. Telephone: (248) 398- tems. Website: www.mypowerbag. MSX International Inc., Warren, a gic HR Services and Strategic Proper- 0400. Website: www.thetaxlawman. com. provider of engineering and informa- EXPANSIONS ty & Casualty. com. tion-technology staffing, acquired Hu- Cooper-Standard Automotive Inc., STARTUPS man Capital Development, Sao Paulo, Novi, says it will spend $17.9 million MOVES NEW PRODUCTS SW Filtration LLC, a bag house filtra- Brazil, a creator and manager of cus- to expand its plant in Goldsboro, N.C., The Mental Fitness Center PC from Elizabeth’s Kind Cafe LLC, Bloomfield tomized training programs for compa- tion services company, at 45345 Five nies and brands. to produce rubber components, plas- 425 S. Main St., Suite 201 to 850 W. Uni- Hills, introduced Elizabeth’s, a new Mile Road, Plymouth, a spinoff of SW tic seals and trim. versity Drive, Suite C, Rochester. vegan shoe collection. Website: M. Jacob & Sons, Livonia, a rigid- Controls Inc., Plymouth, a manufac- Telephone: (248) 601-3111. Website: www.elizabethskindcafe.com. packaging distributor, acquired Pack- Strategic Benefit Services, Rochester, turer’s representative specializing in aging Consultants Group, Brewster, an employee benefits brokerage firm, www.thementalfitnesscenter.com. RFA Brands Inc., Commerce Town- process instrumentation and control N.Y. Packaging Consultants will keep is expanding. Strategic Services Tarnavsky Tax Firm PLLC, from Bloom- ship, launched Powerbag, a collection valves. Telephone: (734)-459-9700. Web- its existing operations and become a Group will be the new parent company field Hills to 1500 N. Stephenson High- of bags with built-in charging sys- site: www.swcontrols.net. subsidiary of M. Jacob & Sons. For- mer Packaging Consultants owner Steve Penn will be president of the M. Jacob & Sons subsidiary. CONTRACTS Ronald McDonald House of Detroit has become a community partner of the Southeast Michigan program of Leave A Legacy through the Planned FULL SERVICE ASSEMBLY Giving Roundtable of Southeast Michi- gan, Metamora. TOOLING SYSTEMS The U.S. Army TACOM Lifecycle Man- agement Command, Warren, has awarded General Dynamics Land Sys- tems, Sterling Heights, a $243 million contract to produce and deliver an ad- CONTINGENT WORKFORCE ditional 115 Stryker combat vehicles equipped with double-V hulls. SERVICES Freedom One Financial Group, Clark- ston, a 401(k) plan recordkeeping and administrative service provider, an- nounced that Freedom One Invest- ment Advisors Inc., Clarkston, will provide 401(k) plan advisory services for Argent International Inc., Ply- 29401 Stephenson Highway mouth, and Plan Administrators Inc., Madison Heights, MI 48071 De Pere, Wis. Interior Partnership Group Inc., Claw- 248 548 6010 son, a design, construction and build- www.gonzalez-group.com ing services firm, has been awarded the following projects: construction services for an expansion and renova- tion of a call center for Comcast, Ster- AEROSPACE | DEFENSE | AUTOMOTIVE ling Heights; architectural, design and construction services for a reno- vation for Easter Seals of Michigan–Adult Services Division, Southfield; and architectural, design and construction services for a new fa- cility for Universal Health Group, Westland. Lovio George Communications and Detroit, has been selected by Contingent Fee Design, the Detroit Regional Convention Facil- ity Authority, Detroit, and SMG, West Conshohocken, Pa., to provide a brand identity and collateral design for Cobo Center. Business Litigation? Michigan Biosciences Industry Associ- ation, Detroit, and Digital Knowledge Corp. dba KnowledgeWatch, Ann Ar- bor, an automated knowledge-acquisi- tion company, announced an agree- In a word, “Yes.” ment to develop miBio NewsWatch, a news and information-gathering When your lawyer is as investedvesteed in channel for Michigan biosciences companies. the outcome of your case as you are, TRW Automotive Holdings Corp., Livo- you know you will be getting your nia, signed an agreement with Chi- nese auto manufacturer Great Wall money’s worth. In Michigan, no firm Motor Co. to help the automaker im- handles contingent fee business prove active and passive safety tech- nology. litigation better than we do. 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December 12, 2011 CRAIN’S DETROIT BUSINESS Page 31

Crain’s Job Front Visit www.crainsdetroit.com/jobfront to search for jobs, post a résumé or find talent. Job Front PEOPLE JOB FRONT CALENDAR ARCHITECTURE Fifth Third Bank, Southfield. Job fair for tech professionals Patrick Calhoun to associate IN THE SPOTLIGHT principal, SHW Group LLC, REAL ESTATE Synergy Computer Solutions Inc. is hosting a Farmington Hills-based Berkley, from vice presi- Allison Hall to director of free job fair for information-technology pro- dent. Also, Joe Mitra to asso- Duffy Petrosky, a agent services, Ann Arbor fessionals 3-7 p.m. Thursday at the Marriott ciate principal from senior marketing market center, Keller Courtyard Southfield, 27027 Northwestern project architect; and Kevin communications agency, Williams Realty Inc., Ann Highway. Openings are primarily in the De- Rettich to associate princi- has promoted Jeff Scott Arbor, from market center troit and Chicago areas. pal from vice president. to the new position of administrator assistant. Synergy is looking to hire experienced de- Heather McKeon to interiors president and Bill Hyde velopers, administrators, architects, project director and associate, Krae- to the new position of SERVICES mer Design Group PLC, De- leads, project managers and business ana- Calhoun executive vice president Kristin Priest to senior ac- troit, from studio director. lysts with expert skills in the following ar- and chief creative count manager, Tanner officer. Friedman Strategic Commu- eas: .Net, Adobe, design, quality assurance, FINANCE Scott Hall analytics, business objects, Cognos, Docu- Scott, 52, had been nications LLC, Farmington Dietmar Ostermann to glob- Hills, from account manager. mentum, Domino, Hyperion, Essbase, Info- chief growth officer. al automotive advisory matica, Java, Open Source/mySQL/SQL leader, Pricewaterhouse- Scott earned a SUPPLIERS Server, Oracle, SAS, others. Coopers LLP, Detroit, from bachelor’s degree in Patrick Aubry to CFO, EcoMotors International, In addition, Synergy is seeking experi- principal and global auto- English at the University motive leader, PRTM Man- Allen Park, from CFO, EP Management Corp., enced IT sales professionals and recruiters. agement Consultants Inc., of Michigan. Dearborn. Information is available at www.synergy Southfield. Hyde, 44, had been Miles Mahoney to president, HiQube business com.com and from Karen Schmitz, (630) 922- Paul McCreadie to manag- executive creative intelligence software division, Altair Engineer- Mitra 5269, or [email protected]. ing director, Arboretum director. He earned a ing Inc., Troy, from president and COO, Ever- Ventures 1 LLC, Ann Arbor, from principal. bachelor of arts in Green Energy, Denver, Colo. Mark Bealin to managing director, UHY Advisors English from Rollins New year, new job career fair MI Inc., Sterling Heights, from regional vice Hyde College in Winter Park, TELECOMMUNICATIONS JobFairGiant.com is sponsoring a free job president and managing director, Jefferson Fla. Lauren Pober to director of marketing, Fox Wells International Inc., Southfield. fair 9 a.m.-3 p.m. Dec. 29 at the Embassy Suites Sports Net Detroit LLC, Southfield, from strate- Hotel, 28100 Franklin Road, Southfield. Hir- Michael Lueck to managing director, federal tax president of commercial banking, PNC Bank, gic marketing manager, Florida Panthers hock- practice, KPMG LLP, Detroit, from senior man- Troy. ey club, Sunrise, Fla. ing career fields include retail, engineering, ager. Joseph Redoutey to senior vice president, re- Teresa Lucido to general manager for Michigan, information technology, health care, sales, Fred Fordon to commercial banking manager, Lev- gional credit officer, Flagstar Bank, Troy, from Comcast Spotlight LLC, Bingham Farms, from automotive, banking/finance, robotics, el One Bank, Farmington Hills, from senior vice senior vice president and senior credit officer, senior director of sales for Michigan. wireless technology and management.

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Page 32 CRAIN’S DETROIT BUSINESS December 12, 2011

CALENDAR !&!6,2 TUESDAY sity of Michigan. Spark Central, Ann AUTO CZAR AT DEC THURSDAY Arbor. Free. Contact: (734) 761-9317; %"/ DEC. 13 website: www.annarborusa.org. The Detroit Economic Club TechTown Open House. 5-7 p.m. welcomes Steven Rattner, former &$$ 6&01%" Features tours of the facility, a chat lead auto Fundamentals of Writing a Business with the entrepreneur of the month adviser with Plan. 6-9 p.m. Learn what elements are commonly found in effective plans #01"01W$/,4&+$ and discussions with staff about how the U.S. TechTown supports entrepreneurs. and work on developing each of these Treasury for your own business. Oakland Coun- ,##"" %&+ TechTown, Detroit. Free. Contact: Department, to (313) 483-1302; email: diane@techtown ty Business Center, Waterford Town- its meeting &+1%"2 0 wsu.org; website: www.techtown ship. $40. Contact: (248) 858-0783; wsu.org. 9-11 a.m. email: [email protected]; Thursday at the website: www.oakgov.com. Masonic Marketing Roundtable-Live Your Temple in A FRANCHISEE! Brand. 5-7 p.m. Ann Arbor Spark. Detroit. With Rich Sheridan, CEO, Menlo Inno- FRIDAY Not only do we lead the industry in sales vation LLC; Yodit Mesfin Johnson, di- Rattner Tickets are DEC. 16 rector of business development, Non- $45 for DEC growth, but we reducedduceddduuceuucceeded bubuild-outuiluiilldd-d--ooutouutt costsccooostosstssttst profit Enterprise at Work; others. members, $55 for guests and $75 Starting Your Own Business. 9 a.m.-4 by 40% (WOW!), andaannndd wew always alwallwwaayys providepprov prproroviderovrooovvivvidididede Spark Central, Ann Arbor. Free. Con- for nonmembers. p.m. Ann Arbor Spark, Ann Arbor tact: (734) 761-9317; website: www. For more information, call (313) State Bank, Center for Empowerment annarborusa.org. and Economic Development, Michi- comprehensive andndnd oonongoingnggoooiniinnng support.supporsuuupppppooortorrt.rt.t 963-8547, email gan Small Business and Technology There has never beenbebeebeeenen aab betterbetettetttterteer time ttimtiimmee [email protected], or visit Development Center, others. Spark Ann Arbor Open Coffee. 8-9:30 a.m. www.econclub.org. East, Ypsilanti. $25. Contact: (734) 761- to own a BIGGBY! Ann Arbor Spark. Networking event 9317; website: www.annarborusa.org. for entrepreneurs, investors and those Troy. Contact: (248) 643-6590; email: who work with innovation business- [email protected]; es, particularly in IT, clean tech and website: www.msedetroit.org. COMING EVENTS life sciences. Spark Central, Ann Ar- Annual Meeting and Holiday Network- bor. Free. Contact: (734) 761-9317; web- CFO Roundtable: Economic Outlook site: www.annarborusa.org. ing Reception. 6-9 p.m. Dec. 20. De- 2012. 7:30-9 a.m. Ann Arbor Spark and troit Regional Chamber. Westin Book Ann Arbor/Ypsilanti Chamber of Com- Cadillac, Detroit. $10. Contact: (313) Fundamentals of Writing a Business merce. With Matthew Shapiro, profes- 596-0343; email: bmaddox@ Plan. 6-9 p.m. Michigan Small Busi- sor, Department of Economics, Univer- detroitchamber.com. ness and Technology Development Center. For those who want to in- crease their chances for successful self-employment. MI-SBTDC at Tech- town, Detroit. $40. Contact: (313) 967- 9295; email: [email protected]; web- site: www.misbtdc.net. WEDNESDAY DEC. 14 Automation Alley Member Orientation. 8-10 a.m. Learn how to use your bene- fits to gain visibility and grow your business, plus network with other members. Automation Alley, Troy. Free, preregistration encouraged. Contact: (800) 427-5100; email: [email protected]; website: www.automationalley.com.

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CALENDAR GUIDELINES If you want to ensure listing online and be considered for print publication in Crain’s Detroit Business, please use the online calendar listings section of www.crainsdetroit.com. Here’s how to submit your events: From the Crain’s home page, click “Detroit Events” in the red bar Our firm specializes in litigation: near the top of the page. Then, click “Submit Your Entries” from • Complex Commercial and Business the drop-down menu that will • Shareholder and Partnership appear and you’ll be taken to our online submission form. Fill out • Automotive Supplier the form as instructed, and then • Class Actions click the “Submit event” button at the bottom of the page. That’s all • Employment there is to it. • Family Law and Probate Litigation More Calendar items can be found (248) 841-2200 on the Web at 950 West University Drive, Suite 300 www.crainsdetroit.com. millerlawpc.com Rochester, Michigan 48307 20111212-NEWS--0033-NAT-CCI-CD_-- 12/9/2011 4:50 PM Page 1

December 12, 2011 CRAIN’S DETROIT BUSINESS Page 33 Prentice: Opening bistro REAL ESTATE ■ From Page 3 CEO, said they are having their assessment that our administra- AUCTIONS AUCTIONS INDUSTRIAL PROPERTY best performance since the econo- tive costs were too high, payroll PUBLIC AUCTION my collapsed in 2008. costs were too high and food costs AVAILABLE NOW Prentice said each of the restau- were too high.” International Automotive Components Taylor/Romulus Area — 4,000 to 80,000 sq. ft. rants and the Dickson also helped Prentice de- CONTENTS OF TWO ENTIRE WAREHOUSES Ideal for logistics company, catering busi- velop an organization chart defin- TO BE AUCTIONED!! manufacturing or warehousing. ness are turning ing employee roles and responsibili- Yvon Rea 734-946-8730 a profit and are ties. And the rebounding economy 40,000±sf Building (Tract 1) 200 Industrial Ave., Pioneer, OH 443554 & the healthiest has helped the turnaround effort. 135± Acres of Land (Tract 2) 555 W. Linfoot St., Wauseon, OH 43567 they’ve been Prentice said the last three Germania Town & Country Club since 2006; total weeks of December are the most 1 Germania Platz, Saginaw, MI WEDNESDAY, DECEMBER 21 @ 10 AM EST LUXURY PROPERTY revenue gener- profitable of the year and that BIDDING ENDS at 2PM Preview: Tues, Dec 20, 9AM-4PM EST ated this year is catering sales in November were ONLINE-ONLY AUCTION By Appointment Only Birmingham’s Ultimate Address $17 million. the best they have been since 2006. th A major fac- And he has $75,000 in events on Thursday, January 12 FEATURED ITEMS Prentice tor in the turn- the books for New Year’s Eve. Open Houses: • Large Quantities of Scrap Wed, Dec. 14th (2-4pm) & Jan. 4th (10am-12pm) • Complete Robotic Production Lines around is new personnel. But catering makes up only 25 • Motors, Blowers, Gear Boxes & Pumps Hires include Eric Djordjevic, percent of revenue, so restaurant • Machine Tools: Presses, Mills, and More 32, the newly appointed COO hired performance is key. • Ovens away from the Detroit Athletic Club; Prentice said sales are up at most • Electrical: Transformers & Busway and chef Jaime Jeffrey, 41, who restaurants and, due to a favorable (517) 676-9800 Auction Managed & Conducted By : spent nearly two decades learning lease, both Prentice and Jeffrey ex- www.sheridanauctionservice.com Stuart B. Millner & Associates cuisine in some of Europe’s Miche- pect Gastronomy — located in the 102 E. Springfield Avenue lin-rated kitchens, including Le former Morton’s Steakhouse at 1 Union, MO 63084 Serenity and comfort in a space that’s expansive yet intimate. Located in the heart of a thriving, Grand Véfour in Paris (Michelin 3 Town Square in Southfield — to be Toll Free: 866-842-5280 Star), Wielandshöhe (1 star) and profitable from Day One. upscale community. Simplicity of modern design. M Visit: www.sbmac.com for complete details of The finest materials. Be one of the few to call Speisermeisterei (2 star), both in However, Joe Vicari, CEO of ARKET Birmingham’s ultimate address home. Prices vary Stuttgart, Germany. Warren-based Andiamo Restaurant this auction. - units finished to your specifications! Call for a While Djordjevic brings a busi- Group, is not as optimistic about Company Auctioneering License #200300467 private tour. Hurry, just five units left! PLACE Auctioneer License #2003000465 ness sense to running the restau- metro Detroit’s ability to support rants, Jeffrey brings a sophisticat- another bistro-style, business-ca- BUSINESSES FOR SALE ed sense of style to his cuisine. sual restaurant. Call Us For Personalized Prentice said he is prepared to “Unless it’s in an exceptional lo- For sale: Residential maid/cleaning service in let Jeffrey loose at Gastronomy to cation and the food is exceptional NW surburbs. Turn-key. Priced to sell. Not a Service: (313) 446-6068 create a menu not seen locally and different, I think I would be franchise. 248-909-2880 or 248-417-4052. CLOSING TIMES: Monday 3 p.m., since Tribute closed, but less ex- very cautious,” Vicari said. “My BUSINESS OPPORTUNITIES pensive. The average entrée price feeling is the economy hasn’t got- one week prior to publication date. Please call us for holiday closing times. at Gastronomy will be around $30. ten better, and 2012 is going to be -- Partner Wanted -- Kevin Cristbrook 248-417-7682 Prentice said rebuilding hasn’t another flat year.” FAX: (313) 446-1757 Gwen Schultz 248-709-4600 been easy. Vicari said a major factor in his E-MAIL: [email protected] 294 E. Brown Street, Birmingham, Michigan He said Dickson forced him to decision to open Joe Muer’s Seafood INTERNET: take a long hard look at his man- in the Renaissance Center was the www.crainsdetroit.com/section/classifieds agement style, and that meant history attached to the name and Confidential Reply Boxes Available learning to take an objective look its desirable location. Call or email today for information PAYMENT: All classified ads must be at employee performance. “We had a story that is unique. Partner wanted for nine place prop jet prepaid. Checks, money order or on a custom advertising plan! “I am a really loyal guy … to a The location is unique, so I was not based at Detroit City Airport. 400+ Crain’s credit approval accepted. fault,” Prentice said. “I didn’t see as hesitant to open that restaurant mph, 2,000 mi range, 41,000 ceiling. Credit cards accepted. it, Stan did. He had fresh eyes, and as I would have another,” Vicari Detroit-West Palm Beach 2:45/Detroit- See [email protected] when he pointed it out to me, it be- said. “I won’t open any more New York 1:20. came apparent.” restaurants for awhile.” Crainsdetroit.com/Section/Classifieds 313.446.6068 In all, Prentice said he fired 20 Prentice admits Gastronomy is Contact Charles Chase (313) 610-4120 for more classified advertisements employees, from chefs to general in a difficult location but believes managers, including some who he has the right chef to create a had been with the company for restaurant people will seek out. longer than two decades. “Jaime is the perfect chef for “One of the hardest things to do this restaurant because he brings JOB FRONT is fire someone who has been with his experience and style from Eu- you for a long time,” Prentice said. rope with him,” Prentice said. Shortly after the sale of his “The goal for Gastronomy is to be POSITIONS AVAILABLE REAL ESTATE restaurant group in 2009, Prentice exceptional but not pretentious.” held a companywide managerial While Jeffrey’s winter menu for meeting to let his staff know this Gastronomy is adventurous — it was the last shot at righting the has items like pepper berry rubbed Sales Position Outstanding opportunity to join one of ship and he needed them to be as bison filet; smoked pork belly with ! Michigan’s largest and most experienced committed to success as he was. broccolini, poached egg and potato commercial real estate brokerage firms. “I said we need to take this to the espuma; and rabbit with carnaroli Responsibilities include sales and leasing of next level, many didn’t, and they rice and shaved foie gras — he industrial, office or retail properties. All are no longer with the company,” keeps an eye to the bottom line inquiries handled on a confidential basis. i E-mail resumes to [email protected] or Prentice said. “The biggest prob- when developing his recipes. call Jason Capitani at 248-637-7684. lem was I did not enforce account- “At the end of the day, this is all ability. Even in a down economy, about profitability,” Jeffrey said. h R POSITIONS AVAILABLE the best will still survive, and I “Being a chef is about more than wasn’t seeing to that.” just cooking. It’s about training candidatest fast??? Djordjevic, who joined Prentice the waitstaff, watching waste, g Visit crainsdetroit.com/jobfront in July, said letting go employees mentoring and creating.” who couldn’t adapt was a difficult Jeffrey and Prentice are set to but important step for Prentice. benefit mutually from their efforts. Associate Dean of Engineering “That was a crucial element for Prentice gets a chef who has the Technology, 001166 our company,” Djordjevic said. technical skills and talent to com- Master’s degree in like area, 3 yrs mgmt exp, “You need to have employees who pete in a major city. Jeffrey gets to and teaching exp pref. Some travel, eves / think about how their actions im- make a splash and call the shots at !! weekends. Apply by 12-31-11. • • • • • pact the bottom line.” a restaurant that will get exposure CRAIN’s JOB FRONT Technical Coordinator, Advanced Dickson said he also looked for because of the Prentice name. POWERED BY Automotive Technology inefficiencies in how the company “I tried to put my restaurants on Temp Part-Time Grant Funded, 001165 was organized. In fact, he said he my back, and I have no shame in Provide technical support and coordination reviewed every individual line admitting that I couldn’t do it,” for the Federal Equipment Tagging item on the income statement. Prentice said. “Restaurants are a Procedure, the University Bound Program, CAAT events. Apply by 12-30-11. “We reviewed each vendor and team sport; I needed a team, and For notice and online application, got multiple quotes for each of the we have that now.” visit www.macomb.edu/jobs. services and goods that we re- Nathan Skid: (313) 446-1654, Concerns 586-445-7885. ceive,” Dickson said. “I also looked [email protected]. Twitter: CRAIN’S CLASSIFIEDS WORK! To Place Your Ad Call (313) 446-6068 or Fax (313) 446-1757 EEO Employer at the various ratios and made an @nateskid 20111212-NEWS--0034-NAT-CCI-CD_-- 12/9/2011 4:46 PM Page 1

Page 34 CRAIN’S DETROIT BUSINESS December 12, 2011 Your Bank’s Beaumont: Seeking closer oversight ■ From Page 1 Not Lending? chiefs, Killian said. “(Payments to doctors) were not what can otherwise be a difficult “The value BON brought to the based on referrals. You can’t legal- maze of medical care at a particu- medicine was good, but the admin- ly do that,” said Killian. larly difficult time by providing istration of the (medical service Joseph Spallina, a consultant coordination for the medical stud- organization) was duplicative and with Ann Arbor-based Arvina ies, appointments and treatments the money spent was not neces- Group, said it is unusual for hospi- needed by our patients,” said sary to support the multidiscipli- tals to contract with a medical ser- Beaumont in a statement. nary clinics,” Killian said. vice organization to manage as- As one of the leading cancer pro- A medical service organization pects of its oncology program. grams in Southeast Michigan, the like BON is a for-profit company But Spallina said many large Beaumont Cancer Institute last that offers medical practice man- hospitals are moving to create year received a five-year extension agement and clinical program de- multidisciplinary oncology clinics from the National Cancer Institute as velopment services to hospital and and to pay physicians fair-market a community clinical oncology physician organizations. value for their time on clinical program, one of only 47 in the U.S. A physician affiliated with quality improvement and strategic The NCI awarded Beaumont a Beaumont Oncology Network told planning committees. $4.8 million research grant, which Crain’s that Beaumont paid BON “It is unusual for a hospital to allows Beaumont patients to par- “several million dollars a year un- outsource to a third-party the man- ticipate in clinical trials. der the contract.” agement of its oncology program,” Some of Beaumont’s multidisci- “They were getting a lot of mon- Spallina said. “Most are moving a plinary clinics include the ours are ey for doing very little,” said the center of excellence model and hir- prostate and genitourinary clinic, . physician. “We were shocked ing their own directors to run the the melanoma and skin cancer Call for a free consultation. when we found out how much programs.” clinic, the breast clinic and the col- Loan amounts: $1,000,000.00 and above. money they were paying the BON Spallina said a growing number orectal clinic. group. of hospitals are paying doctors for Ananias Diokno, M.D., Beau- “They dismantled it, and cor- time spent on quality improve- mont’s chief medical officer, is s Investment Real Estate s Equipment rectly so.” ment committees. temporarily serving as director of s Owner Occupied Real Estate s Turnaround Consulting In a statement on behalf of BON, “It is OK to pay doctors to be in- the oncology program, Killian s Lines of Credit s Loan Modifications Michael Layne, president of Farm- volved in strategic activities to im- said. s Accounts Receivable s Bank Workouts ington Hills-based Marx Layne & prove market share, improve qual- On Jan. 1, David Wood Jr., M.D., Co., said physi- ity and reduce costs,” Spallina will begin interim oversight of the cians received said. “Doctors have to submit oncology program as president of fees based on monthly timesheets for the hours newly formed Beaumont Physician fair market val- they do that are covered under the Partners, which will be responsible ue for services contract.” for implementing Beaumont’s on- they provided BON was incorporated in 2007 going efforts to work more closely the network. with several physicians, including with physicians. 800.509.3552 “Under the Jeffrey Margolis, who served as Wood, a cancer surgeon, was www.eclipsecapitalgroup.com contract, BON president; David Decker; Kurt chief of urologic surgery at the Uni- 2207 Orchard Lake Road, Sylvan Lake, MI 48320 “Since 1997” was required to Neumann; Larry Keston and Don- versity of Michigan Health System. provide speci- Layne ald Moylan, according to the Michi- Wood will later hire an oncology fied services to gan Department of Labor & Economic chief to run the program and the Beaumont for the cancer program, Growth. clinics, Killian said. and Beaumont was required to pay Margolis is a private practice Like Beaumont has done, hos- BON for those services,” Layne oncologist who owns Oakland Med- pitals nationwide are forming said in a statement to Crain’s. ical Group in Royal Oak. He also is committees of surgeons, oncolo- “BON provided the services vice chief of Beaumont’s oncology gists, other subspecialists and through its physicians and paid its services. nurses to discuss cases, assess 800-292-3831 physicians for their work. No di- Layne said 12 physicians served new technology, select quality rect patient care services were on BON’s board and none received metrics to measure and make de- indiantrails.com provided by BON.” payments for their board service. cisions on new initiatives. Layne said Beaumont received In addition to the physicians “There are a lot of hospitals detailed records of the physician who provided clinical services and with large oncology programs services and the amounts paid to quality improvement expertise, that haven’t set up multidiscipli- the doctors, which varied depend- BON employed three people to pro- nary models of care,” Spallina ing on the amount of work com- vide administrative service sup- said. pleted. port, Killian said. “It sounds like Beaumont is NE HU G O ND Killian, who declined to com- Beaumont said the purpose of ahead of many of these hospi- IN R T E A D R Y ment on fees Beaumont paid to BON was to give patients cutting- tals.” B E

E A

L R

E BON, said all physicians paid a edge, compassionate care in the Jay Greene: (313) 446-0325, S C 100 small annual fee to participate in most efficient way possible. [email protected]. Twitter: the network, he said. “Our goal is to help navigate @jaybgreene

Coupled Products wins $1M verdict against Navistar

BY CHAD HALCOM ner of ours at the time,” Ginsberg, a components. CRAIN’S DETROIT BUSINESS principal at Northbrook, Ill.-based “(Navistar makes) excellent SG Industries Inc., said in a state- trucks and military vehicles, and Coupled Products LLC, the ment. “We would have preferred to we certainly enjoyed and appreci- Rochester Hills-based automotive have settled the dispute outside of ated the opportunity to play a role hose and brake assembly supplier the courtroom, but we had to pro- in that process. We recognize that Comfort and owned by Chicago investor Brad tect our employees and our assets, this was a difficult situation for Ginsberg, obtained a jury verdict even if it meant utilizing our legal both companies, and we wish them of just under $1 million in its Oak- system as a last resort.” the best,” Ginsberg said. t
$IBSUFST land County lawsuit against Navis- Navistar officials could not be The company still has three Luxury tar International Corp. reached for comment late Friday. pending lawsuits in Oakland t
5PVST The verdict earlier this month SG acquired Coupled Products County against Livonia-based TRW in a supply chain breach of con- from Dana Corp. in 2007. At issue in Automotive Holdings Corp., Fluid t
4IVUUMFT
tract dispute resolves one of four the lawsuit was a long-standing Routing Solutions Inc. of Rochester 00 ongoing lawsuits Coupled Prod- supplier contract with Navistar, a Hills and Wall Street Industrial Cen- t
$POWFOUJPO
4FSWJDFT SAVE $100 OFF ucts has brought against other Warrenville, Ill.-based manufac- ter, its landlord, in a lease dispute. businesses in the Pontiac-based turer of trucks and military vehi- Another suit against one of its own t
$PSQPSBUF
&WFOUT court alone. A fifth case was dis- cles. Navistar allegedly canceled suppliers, Missouri-based Compo- Contact Indian Trails for details. Must use this missed per an out-of-court agree- the agreement in 2010, and Cou- nent Bar Products Inc., remains t
4DIFEVMFE
4FSWJDF promotional code at time of booking: 2011CDB-DEC ment last month. pled Products sued to recover its pending at U.S. District Court in De- “Navistar was an important part- production costs on unshipped troit. 20111212-NEWS--0035-NAT-CCI-CD_-- 12/9/2011 5:33 PM Page 1

December 12, 2011 CRAIN’S DETROIT BUSINESS Page 35 Football: Success brings spotlight ■ From Page 3 University of North Alabama, and is on schools moving to Division I for aired live on ESPN. WARRIOR’S 2011 RECORD football. The Warriors finished the regu- Oakland University transitioned to Sept. 3: W 69-24 vs. Urbana lar season 8-3 and earned a playoff Division I in 1997-98, but doesn’t Sept. 10: W 55-0 vs. Tiffin bid as a regional sixth seed. They field a football team. Sept. 17: W 27-10 vs. No. 22 then proceeded to win three con- A WSU blue ribbon panel on Michigan Tech secutive playoff games on the road, athletics in June 1998 recom- Sept. 24: W 31-24 at Ohio including upsetting defending na- mended the university move Dominican tional champion Minnesota Du- within five years to Division I-AA luth on Dec. 2. Oct. 1: W 30-28 at Northern On the Job Michigan (now known as the Football Playing on television and pride Championship Subdivision). Oct. 8: W 45-24 vs. Lake Erie are the rewards for a Division II in Lansing So State That never panned out, and an- champion. And unlike Division I other look at moving up a few Oct. 15: L 17-20 at Ashland bowl games, which come with years ago confirmed how unreal- You Can Keep payouts to participating schools Oct. 22: W 27-24 (OT) at Hillsdale College istic it is for the school, Fournier in the hundreds of thousands or said. Doing Yours even millions of dollars, there is Oct. 29: L 20-28 vs. Saginaw Valley The Warriors do compete in Di- no institutional payday for the vision I in fencing. As Michigan’s leading statewide schools. Nov. 5: W 28-19 at University of Indianapolis business advocacy organization, “Competitive success at the Di- Nov. 12: 42-43 (OT) vs. Findlay vision II level rarely leads to a fi- L Road warriors the Michigan Chamber is getting nancial windfall,” said Dave Playoffs Unlike Division I, which has the job done to pass bold tax O’Brien, editor of College Sports conferences tied to bowl games reform, cut red tape and create an Business News and director of the Nov. 19: W 48-38 at No. 14 St. and the much-maligned Bowl Cloud State sports management program at Championship Series — but no atmosphere that helps Michigan Nov. 26: W 38-26 at No. 4 Drexel University. playoffs — a selection committee Nebraska-Kearney businesses grow. “Increased institutional pride, determines which 24 Division II Dec. 2: W 31-25 at No. 9 engaged on-campus students, en- teams make the playoffs from the Business Advocacy hanced alumni involvement/giv- Minnesota Duluth level’s six regions. Political Action Join the Michigan Chamber of ing patterns and a modest in- Dec. 10: vs. Winston-Salem State (played after Crain’s went to print) The Warriors didn’t get the Member Services Commerce and help reinvent crease in applications may all chance to host a playoff game be- result from on the field success; cause the higher ranked team is Michigan. Call (517) 371-2100 but, with limited, if any, media of WSU’s 15 programs. the host in Division II. coverage and/or television deals, By contrast, the University of or visit www.michamber.com That means WSU didn’t get a corporate support is very limit- Michigan’s athletic department has chance to sell hats and hoodies or ed.” a $110 million budget this year, anything else to any fans who O’Brien, a former Division I ath- and Michigan State University’s is Leading Businesses. Moving Michigan Forward. might have leapt on the playoff letic director at Long Beach State $79 million. Local: (517) 371-2100, Toll Free (800) 748-0266 bandwagon. www.michamber.com University, Temple University and The four playoff games are ex- “We haven’t had a home game to Northeastern University, said the fi- penses beyond the $195,000. Aside sell a piece of merchandise at,” nancial relationships with the from travel expenses, Fournier said. business community don’t typical- the program had to The team av- ly translate into many additional buy $4,000 worth of eraged 2,811 dollars for a winning D2 football cold-weather gear for The application fans over six program. the players “ regular-season “For those Division II schools for its post- just to go homes games at that have some corporate support, season Division I is 6,000-seat Tom competitive success rarely results games. in increased revenue. It is simply a “We’ll find almost a Adams Field on nice validation for why the corpo- a way to WSU’s campus. rate sponsor became involved in make that million Getting more the first place, which was to help work. We’ll seats filled in the local school,” he said. “As a re- look at some dollars. In 2012 is another sult, most D2 schools have to justi- contingency program goal, fy sport sponsorship on other fac- plans to cov- today’s but not an easy tors other than enhanced revenue er some of this,” one: Wayne opportunities. Unlike the BCS lev- Fournier said. economy, it just State, which el, there are no paydays in Divi- The NCAA will re- competes in the sion II sports.” imburse the school wouldn’t make a Great Lakes Inter- The program’s major corporate for 70 members of the collegiate Athlet- donors include Michigan First, Farm travel party and pro- lot of sense. ic Conference, Bureau, the local Pepsi distributor- vides money for ” vies for fan and ship and Blue Cross Blue Shield of three meals a day. Rob Fournier, media attention Michigan. The host school Wayne State University with Detroit’s “Blue Cross cheers for Wayne arranges hotel ac- four pro sports State athletics whether the teams commodations. teams, and all the other universi- win or lose. Our advertising dol- Wayne State offers the full 36 ties. lars don’t flow up or down because football scholarships allowed un- The athletic department isn’t go- of good or bad records on the der Division II rules, but it divides ing to spend lavish sums on mar- field,” said Andy Hetzel, Blue them into halves and quarters so keting, however. Athletics is in its Cross vice president of corporate that the nearly 100 team members proper perspective at Wayne State, communications, via email. He de- get some financial help. No player Fournier said. clined to say how much the insur- has a full scholarship. “I want this (football season) to er spends on sponsorships with A Division I football program of- be the window for people to look the school. fers 86 full scholarships, but don’t in and see the rest of campus,” he look for the Warriors to move up said. “They may not write a check any time soon. The cost and bu- to the athletic department, but Making it work reaucratic hurdles aren’t worth it, they may write one to the law de- WSU’s surprisingly small foot- Fournier said. partment or the sciences. ball budget covers travel, equip- “It’s almost financially impos- “We’re not saying to people, ment, uniforms, meals, recruiting sible to move to Division I be- ‘Come here to watch a football and everything else, Fournier cause of the different con- game and also go to class,’” he said. straints,” he said. “The said. “Football isn’t going to run “I would argue that we get a application just to go Division I is the campus. Academics are. If we whole helluva lot out of our almost a million dollars. In to- can become a method and means $200,000,” Fournier said. day’s economy, it just wouldn’t to shed greater light on that, that’s Salaries for the coaches and make a lot of sense to be spending a positive.” player scholarships come out of money like that.” Bill Shea: (313) 446-1626, the athletic department’s nearly There’s also been a moratorium [email protected]. Twitter: $5 million budget, which covers all for several years, ending in 2012, @bill_shea19 20111212-NEWS--0036-NAT-CCI-CD_-- 12/9/2011 5:34 PM Page 1

Page 36 CRAIN’S DETROIT BUSINESS December 12, 2011 Would an EFM quash growing creative, entrepreneurial momentum?

BY NANCY KAFFER ness here either way. I’ll continue there is a real valid economic speeding up the momentum, be- financial manager, what does that CRAIN’S DETROIT BUSINESS to grow my business and encour- resurgence going on in the city, cause it seems there is no other mean to get a permit? That hasn’t age people to move here,” she said. but I think that people could quick- way to address some of these struc- really been explained, and it needs Detroit sometimes seems like “I guess in short I am hopeful … ly forget that, in the explosion of tural issues, legacy costs, and to be,” she said. “If there is no City two cities: one on the brink of fi- because things can’t really get news that would result from the work rules.” Council, what do you do? How does nancial disaster, headed for a state much worse. Already bus stations emergency manager.” No matter how far removed that impact the services, or some- takeover; the other home to a are burning down and fire hy- Austin Black II, president of De- businesses feel from City Hall, city body who wants to open up a retail thriving creative and entrepre- drants don’t work and streetlights troit-based residential real estate operations will impact even the shop? If you’d normally have to go neurial community that’s garner- don’t work. They re- firm City Living most creative business, said Ryan to City Hall and file papers with ing national attention. place sidewalks in Detroit, said Cooley, co-owner of Slow’s Bar BQ the city, if there’s a financial man- The two seem to exist in differ- neighborhoods with that in his so- and founder of O’Connor Real Estate ager, how does that differ? Is it less ent spheres, rarely intersecting. one house on the Detroit could be cial circle, the and Development. people? Is it open shorter hours?” But with Detroit headed for the block.” “ likelihood of “It’s an unknown aspect. At the But conditions in the city must appointment of an emergency fi- From Toby perceived an emergency same time, obviously it’s going to change, Blondy said. nancial manager, the two cities Barlow’s per- from a manager has affect (business) somewhat,” he “I see somebody stepping in and are on a collision course. Opinions spective, the been a topic of said. “If they’re going to slash (the saying, ‘Enough already, this city about how the appointment of an appointment marketing discussion for city budget), there’s going to be a has been through enough.’ If that’s emergency manager would affect of an emer- at least a year. certain number of jobs that are go- an emergency manager, that’s the city’s creative community dif- gency manag- perspective But it doesn’t ing to be lost, and it’s going to af- great,” Blondy said. “I wanted that fer. Some say Detroit’s artists and er could undo seem to be fect numerous departments. It to be Dave Bing. … I thought Dave creative entrepreneurs have oper- all of the good as a slowing the would be impossible for it not to af- Bing was going to come in and ated, for the most part, indepen- publicity the pace of poten- fect getting a business open.” make these hard decisions based dently of the city’s official bureau- emerging cre- completely tial Detroit But Cooley doesn’t foresee much on business and logic and num- cracy. Many say they don’t feel ative class has homebuyers impact on his businesses. bers, and it doesn’t seem he was connected to the city’s governing brought Detroit. Bar- broken city. — business, “It doesn’t seem to be slowing able to do that, and I have no idea structures. Yet others acknowl- low, a Detroit resident ” bolstered by things for me right now commer- why … but from what I under- edge that despite the seeming dis- and chief creative offi- Toby Barlow, Team Detroit the Live Mid- cially, from a real estate perspec- stand, that’s what the EM role is tance, the creative and entrepre- cer at Dearborn-based town and Live tive,” he said. “I have three restau- supposed to be.” neurial community is closely tied Team Detroit, is the author of a Downtown programs, is going on rant deals under contract right Black said, “at this point, drift- to business of city government. high-profile piece in the newly as usual. now. Maybe internally people ing along is not an option.” “What concerns me is that I launched Detroit Huffington Post “My personal opinion is it de- have thought about it, but no one’s Barlow said he’s not sure that an would hate to urging suburbanites to move to pends on how this process is man- said they want to pull out.” emergency manager is the right see this momen- the city. aged,” Black said. “People think if Cooley said he has noticed that fix for the problem. tum that seems “It would help to reinforce the this process is managed well, it residential inquiries have slowed, “Frankly, I don’t know much to be going on in negative imagery that has circled will turn out to be a very good but that business tends to fall back about the emergency financial Detroit right around Detroit for a long time,” he thing for the city. These structural at this time of year. manager success rate to date,” he now hindered said. “I think there are a lot of peo- issues have existed for decades, As far as Slow’s goes, “It’s not said. “I know that Detroit Public by the appoint- ple who have been working to un- and at this point it seems the finan- going to affect people wanting to Schools have had an emergency fi- ment of an derscore and sort of break the cial manager is the only way they come down if we’re providing a nancial manager for a few years emergency fi- stereotypes and dimensionalize can clean house.” good product.” and it doesn’t seem to have turned nancial manag- what’s going on in Detroit right Black said “hit the reset button” Torya Blanchard, owner of the Detroit school system around. I Blondy er,” said Liz now. I think an emergency manag- is a phrase he’s hearing more and crêperie Good Girls Go To Paris, like- think there is an assumption of Blondy, owner er could undermine that. more often. wise said she doesn’t think that emergency financial manager effi- of Midtown-based doggy daycare “Detroit could be perceived “You have a lot of momentum the appointment of an emergency cacy that has yet to be proved out. Canine to Five. from a marketing perspective as a between philanthropy and entre- manager would have much impact All that an emergency financial But Blondy — who said she is completely broken city. I think preneurs,” he said. “I think gov- on her business. manager’s arrival really does is confident that an emergency man- what we have seen over the past ernment has lagged behind the mo- Still, she said, how city business signal that a democracy is bro- ager will be appointed — isn’t sure few years from artists moving into mentum. If it’s managed well, I would be conducted under an ken.” whether a state takeover would be the city to the urban gardening think it could be an opportunity emergency manager remains a Nancy Kaffer: (313) 446-0412, a deterrent. movement, to successful business- for government to catch up with question. [email protected]. Twitter: @nan- “I would have opened my busi- es that have opened up, is that that momentum, to have a role in “If the city shuts down, there’s a cykaffer Vendors: Some say relationship already strained Huron closes year ■ From Page 3 with flurry of deals three weeks myself,” said Daniel business, he said, is “one of the saler; Jefferson said city con- standpoint of chasing certain peo- Detroit-based Huron Capital Part- Colleran, owner of Detroit-based things keeping me up nights.” tracts comprise 15 percent to 20 ple away. If you talk to people in ners LLC has closed on three acquisi- Motor City Pipe & Supply Co., a 50- But Perry Mehta, president and percent of Hercules’ business. the business community, people tions and a sale for a transaction year-old business. Colleran, 74, CEO of Detroit- “You bid, and you are awarded will tell you I don’t bid on city con- value of more than $125 million. bought Motor City Pipe 16 years based FutureNet the business based on being the tracts any more because I can’t af- Huron sold its interest in Tec- ago and purchased the company’s Group Inc., a lowest vendor. With that in mind, ford to be paid late. The problem trans Inc., a Los Angeles-based pub- building this August. construction, there’s not a whole lot of room to with that is it shrinks the city’s lic transportation provider, to Keo- Colleran said Thursday that he environmental go any place.” pool of available vendors. I think lis America Inc. of Rockland, Md. had just received a letter from the consulting and Though Hercules’ city business ultimately the city benefits from Huron formed Tectrans in 2006 af- city saying that he’d be hearing engineering has decreased in recent years, Jef- having a larger vendor pool, and ter it bought an 80 percent interest from someone about the proposed company, said ferson said, “It’s an important anything that reduces the pool is in five medical van and Yellow Cab cut. he’s not trou- part of our business because not good for the city.” companies for $12 million. “I know outsiders won’t believe bled because we’re city based. We would hate And Cockrel said that while a Terms were not disclosed. this or understand this, but there city contracts to walk away from the business, reduction in vendor payments Mehta On the buy side, Huron commit- isn’t 10 percent in the contract,” are just 10 per- but they certainly don’t make it could net long-term savings for ted $40 million to recapitalized he said. “I don’t know what I’m cent of FutureNet’s business. easy to be a vendor to the city of the city, it won’t fix Detroit’s im- North Carolina-based Sock and Ac- going to do about them, I simply “I will certainly support the Detroit.” mediate problems. cessory Brands Global LLC in partner- don’t know.” city,” he said. “If everybody is That’s one thing that concerns “It’s a real big question mark as ship with company management. Colleran wouldn’t say what per- sacrificing, we would not have Detroit City Council member Ken to how much that’s really going to And it made two acquisitions as centage of his business is with the any trouble sacrificing. We want Cockrel Jr. benefit us,” Cockrel said. add-ons for TouchPoint Print Solu- city of Detroit, but said those con- to help the city in the long term, The city is continually late with “I come down on the side of say- tions Corp. of Oak Park, Ill.: Ginny’s tracts are “very, very important” not focus on the short term.” vendor payments, something ing ultimately that’s going to be Printing Inc. of Austin, Texas, and, to his company. Mehta said he’d not yet been Cockrel tried to address as a one of those things that sounds through a bank foreclosure sale, A cut, he said, “will immediate- contacted by the city. freshman council member in 1998 good, but doesn’t produce much the assets of a marketing services ly be a money loser, on that por- For Belinda Jefferson, presi- with the prompt payment of ven- savings. The city of Detroit has a company in Milwaukee. tion of my business, and naturally dent of Detroit-based Hercules & dors ordinance. That ordinance cash flow problem, and we have Terms will not be disclosed. it would affect the other portion of Hercules Inc., it’s just one more ob- aimed to get vendors paid within bigger fish to fry. If it produces Huron is prohibited by terms of my business.” stacle to doing business with the 45 days of invoice. some savings, great, but it should the foreclosure sale from naming Vendor payments were reduced city. “That was 1998. Here it is 2011 not be seen as an anchor to ad- the company. It will use its assets 10 percent in 2005 under former “The margins for doing busi- and I’m sad to say prompt pay- dress cash flow problems.” to form the TouchPoint Communica- Mayor Kwame Kilpatrick, a cut ness with the city are very, very ment is still an issue,” he said. “If Nancy Kaffer: (313) 446-0412, tions Group, which will be in Mil- he said it was difficult to absorb. low to begin with,” she said. Her- you throw (the 10 percent cut) into [email protected]. Twitter: waukee. Whether he can replace the city cules is a janitorial supply whole- the mix, it could hurt us from the @nancykaffer — Tom Henderson 20111212-NEWS--0037-NAT-CCI-CD_-- 12/9/2011 5:30 PM Page 1

December 12, 2011 CRAIN’S DETROIT BUSINESS Page 37 Park: Some well-known names don’t make list www.crainsdetroit.com ■ From Page 1 EDITOR-IN-CHIEF Keith E. Crain PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] In an email to Crain’s, Richard ability to connect the new renters, EXECUTIVE EDITOR Cindy Goodaker, (313) 446- Karp declined to comment. Kevin the workers of that generation.” 0460 or [email protected] Prater did not respond. Their plan for Capitol Park in- DEPUTY MANAGING EDITOR Jennette Smith, (313) 446-1622 or [email protected] One national developer is also cludes developing the Farwell Build- SENIOR EDITOR Bob Allen, (313) 446-0344 or on the short list, according to ing into smaller, less-expensive [email protected] WEST MICHIGAN EDITOR Matt Gryczan, (616) 916- sources familiar with the process, units, the 1145 Griswold building 8158 or [email protected] but the name is not available. into slightly larger units and the COPY DESK CHIEF Gary Piatek, (313) 446-0357 or “This process is a long and wind- former United Way Building into se- [email protected] ASSISTANT NEWS EDITOR Jeff Johnston, (313) ing road, with a lot to consider,” nior-oriented housing. It will also 446-1608 or [email protected] said Bob Rossbach, a public rela- include a larger retail strategy DATA EDITOR Brianna Reilly, (313) 446-0418, [email protected] tions consultant representing the with local and national companies. WEB DEVELOPER Steve Williams, (313) 446- Detroit Economic Growth Corp., one of The focus is how to make Capi- 6059, [email protected] WEB EDITOR Gary Anglebrandt, (313) 446-1621, the entities making the decision. tol Park into a community, he said. [email protected] Finding a developer for Capitol “This is more about building a EDITORIAL SUPPORT Robertta Reiff (313) 446- Park is a process that started in part of the city than it is about any 0419, YahNica Crawford, (313) 446-0329 NEWSROOM (313) 446-0329, FAX (313) 446- 2009 as a group of government and one particular building,” Tryba 1687 TIP LINE (313) 446-6766 nonprofit entities bought hree of said. REPORTERS 17 buildings in the courtyard area. Financing would be similar to Daniel Duggan, senior reporter: Covers retail, real Once the site of Michigan’s other recent Detroit projects, mix- estate and hospitality. (313) 446-0414 or [email protected] Capitol building, the small court- ing public and grant-based incen- Jay Greene, senior reporter: Covers health care, insurance and the environment. (313) 446-0325 or yard has appealed to developers tives with equity investors and a [email protected]. because it includes so many his- limited amount of bank financing. Chad Halcom: Covers law, non-automotive manufacturing, defense contracting and Oakland toric buildings in a cluster. Tryba wouldn’t comment on the and Macomb counties. (313) 446-6796 or A request for proposals was is- others in the running. [email protected]. Tom Henderson: Covers banking, finance, sued in August, with a consortium Left off, in addition to Ferchill, technology and biotechnology. (313) 446-0337 or including state government enti- is Detroit developer Eric Larson, [email protected]. Nancy Kaffer: Covers small business, the city of ties, the DEGC, Invest Detroit, the who recently became non-execu- WHO OWNS WHAT Detroit, Wayne County government. (313) 446- Downtown Detroit Partnership and tive president of Olympia Develop- 0412 or [email protected]. A consortium of government and nonprofit entities has created a short list Bill Shea, enterprise editor: Covers media, developer David Di Rita paring the ment, the real estate arm of Mike advertising and marketing, the business of sports, of developers to take over three buildings as part of a redevelopment plan field down to three finalists. The and Marian Ilitch’s businesses. and transportation. (313) 446-1626 or for Capitol Park. Once the deal closes, the developer will find a new use for [email protected]. three will be pared to one in the “We didn’t get a lot of feedback Nathan Skid: Multimedia reporter. Also covers the three vacant buildings among the 17 buildings in the Capitol Park district. food industry and entertainment. (313) 446-1654, next 45 to 60 days, Rossbach said. as to what they did or didn’t like,” [email protected]. For David Tryba, principal with said Larson, who was not working Buildings being offered to the developers: Sherri Welch: Covers nonprofits and services. (313) 446-1694 or [email protected] Tryba Architects, remaking the with the Ilitch family. “On the 1. The Farwell Building (1249 Griswold): 96,000 square feet; purchased by Dustin Walsh: Covers auto suppliers, steel, higher three buildings is the culmination whole, this is a good process for the state land bank in 2009. education and Livingston and Washtenaw of a long quest to design a transfor- the city, and I think it’s important counties. (313) 446-6042 or [email protected] 2. Former United Way Building (1212 Griswold): 101,000 square feet; LANSING BUREAU mational Detroit development. to get a lot of groups involved with Amy Lane: Covers business issues at the Capitol, purchased by the Downtown Development Authority in 2009. telecommunications and utilities. (517) 371-5355, Tryba’s firm has a specialty of this opportunity.” 3. Capitol Park Building (1145 Griswold): 68,000 square feet; purchased FAX (517) 371-2492, [email protected]. or 115 W. redeveloping historic buildings in Other developers who attended by the DDA in 2009. Allegan, Suite 220, Lansing 48933. Denver, New York and Washing- the pre-bid meeting for the request ADVERTISING ton, D.C. and he has spent 25 years for proposals are Bloomfield Hills- Other buildings in the district not being sold: ADVERTISING DIRECTOR Marla Wise, (313) 446- 6032 or [email protected] exploring Detroit for possible pro- based A.F. Jonna Development, Livo- 4. 1265 Griswold: 36,000 square feet. Owned by Dennis Kefallinos, SALES INQUIRIES: (313) 446-6052; FAX (313) jects while in town to visit his nia-based Schostak Bros. & Co. Inc., Boydell Development Co. 393-0997 ADVERTISING SALES Christine Galasso, Matthew wife’s family during holidays. Chicago-based Habitat Co. and 5. 37 W. Grand River Ave.: 30,000 square feet. Owned by Kefallinos, J. Langan, Lori Tournay Liggett, Tamara Rokowski, He has teamed with J.C. Beal Houston-based Hines Interests L.P., Boydell. Cheryl Rothe, Dale Smolinski President Fred Beal in creating according to the sign-in sheet CLASSIFIED SALES (313)-446-0351 6. 1214 Griswold: 154,000 square feet. Owned by Bingham Farms-based MARKETING MANAGER Jeff Kapuscinski Capitol Park Partners LLC and has posted on the DEGC website. Silverman Cos. EVENTS DIRECTOR Nicole LaPointe proposed a plan for a retail and Representatives from Schostak, 7. Westin Book-Cadillac (1132 Washington Blvd.): Owned by Cleveland- EVENTS COORDINATOR Kacey Anderson residential development that Habitat and Hines said the firms based Ferchill Group. SENIOR PRODUCER FOR DIGITAL/ONLINE PRODUCTS Pierrette Dagg would go beyond three buildings. did not make proposals. A.F. Jon- 8. 119 State St.: 34,000 square feet. Owned by Kefallinos, Boydell. MARKETING ARTIST Sylvia Kolaski “It’s a catalytic opportunity we na manager Arkan Jonna did not 9. David Stott Building (1150 Griswold): 205,000 square feet. Owned by SALES SUPPORT Suzanne Janik, YahNica Crawford see here that motivates us,” Tryba respond to requests for comment. West Palm Beach, Fla.-based Luke Investments. The 37-story building is AUDIENCE DEVELOPMENT MANAGER said. “This is a moment in time, Daniel Duggan: (313) 446-0414, Candice Yopp vacant except for the street-level Skybar Lounge. MARKETING COORDINATOR Jenny Griffith with a new generation of Detroiters [email protected]. Twitter: Source: Detroit Economic Growth Corp., Crain’s research PRODUCTION MANAGER Wendy Kobylarz who want this deeply. We have the @d_duggan PRODUCTION SUPERVISOR Larry Williams CUSTOMER SERVICE MAIN NUMBER: Call (877) 824-9374 or write [email protected] SUBSCRIPTIONS $59 one year, $98 two years. Out of state, $79 one year, $138 for two years. SBAM members picked Outside U.S.A., add $48 per year to out-of-state Trees: rate for surface mail. Call (313) 446-0450 or Anti-tax talk fells program (877) 824-9374. SINGLE COPIES: (877) 824-9374. ■ From Page 1 for national positions REPRINTS: (800) 290-5460, ext. 125; (717) 505-9701, ext. 125; or lindsay.wilson mand, a greater market.” Michigan’s 700 farms harvest “USDA will delay implementa- The Small Business Association @theygsgroup.com. TO FIND A DATE A STORY WAS PUBLISHED: One of those Michigan growers, about 3 million trees a year, with a tion of this industry-funded pro- of Michigan announced Wednes- (313) 446-0367 or e-mail [email protected]. — Fred Stempky of Fred Stempky wholesale value of more than $40 gram to provide consumers and day that three members of the as- CRAIN’S DETROIT BUSINESS IS PUBLISHED BY Nursery in Livonia — said he’s not million, according to the Michigan other stakeholders an opportunity sociation were elected to leader- CRAIN COMMUNICATIONS INC. against the fee, but “I’m just not so Department of Agriculture and Rural to better understand its nature ship positions with the National CHAIRMAN Keith E. Crain sure the way they went about it is Development. Two-thirds of those and purpose,” she said. PRESIDENT Rance Crain Small Business Association, SECRETARY Merrilee Crain quite right.” trees ship out of state, Gray said. In the Rockford area, grower SBAM’s national affiliate. TREASURER Mary Kay Crain Stempky, who sells 500 to 700 Shortly after the USDA an- Tom Hart admits he’s been too Executive Vice President/Operations Chris Holman, president and William A. Morrow trees a year, said that for the past nounced the checkoff program busy to follow the debate. CEO of Greater Lansing Business Group Vice President/Technology, Manufacturing, Circulation four years, he and many other Nov. 8, the conservative blogos- “Somebody mentions ‘tax,’ and Monthly magazine and The Michi- Robert C. Adams growers have paid a voluntary phere reacted. David Addington, nobody wants a tax,” he said, tak- gan Business Network website, Vice President/Production & Manufacturing charge of 10 cents per tree to the vice president of the conservative ing a break from cutting some of Dave Kamis was elected NSBA chairman for Chief Information Officer Michigan association to promote Heritage Foundation, called the pro- the 8,000 trees he hopes to sell. 2012. Jeff Van Winkle of Clark Hill Paul Dalpiaz real Michigan trees statewide. gram “the Christmas tree tax.” “Don’t get me wrong — I support Director of Audience Development Operations PLC in Grand Rapids was elected Michelle Roth “I’ve heard from the larger “The economy is barely grow- the sale of Christmas trees. I be- treasurer and Cynthia Kay, own- G.D. Crain Jr. Founder (1885-1973) growers that they were just going ing, and 9 percent of the American long to the (Michigan) associa- er of Cynthia Kay & Co. in Grand Mrs. G.D. Crain Jr. Chairman (1911-1996) to pass the fee directly on to the people have no jobs,” Addington tion, and I support the associa- EDITORIAL & BUSINESS OFFICES: Rapids, was elected to the board 1155 Gratiot Ave., Detroit MI 48207-2732; (313) customer,” Stempky said. “Being wrote in his blog. “Is a new tax on tion.” of directors. 446-6000 smaller, I would not have been Christmas trees the best President Some growers feel caught in the Cable address: TWX 248-221-5122 AUTNEW DET All three will begin their terms CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 able to do it. It would not have Obama can do?” ideological dispute over taxes that on Jan. 1 and will work toward is published weekly, except for a special issue the been acceptable” to customers. Rush Limbaugh called it “Oba- has hamstrung Washington. third week of August, and no issue the third week reducing the national deficit, en- of December by Crain Communications Inc. at Sales of fresh Christmas trees ma’s Christmas tree tax” and part “We were right in the middle,” 1155 Gratiot Ave., Detroit MI 48207-2732. hancing small-business access to have been declining slowly, from of the “war on Christmas.” After Gray said. “We would have been Periodicals postage paid at Detroit, MI and additional capital, addressing health care mailing offices. POSTMASTER: Send address a high of 32.8 million in 2005 to the USDA put the program on able to collect under this year’s changes to CRAIN’S DETROIT BUSINESS, Circulation costs, reducing the federal regu- 27 million last year, according hold, Limbaugh claimed credit. sales. We could have done some Department, P.O. Box 07925, Detroit, MI 48207- latory burden and repealing man- 9732. GST # 136760444. Printed in U.S.A. to the National Christmas Tree Asso- The Agriculture Department is- good promotion and increased Entire contents copyright 2011 by Crain ciation. Michigan trails only Ore- n’t killing the program, said Gwen sales. Now we won’t be able to.” dates such as the health insur- Communications Inc. All rights reserved. ance tax. Reproduction or use of editorial content in any gon and North Carolina in produc- Sparks, the department’s public Ellen Mitchell contributed to this manner without permission is strictly prohibited. tion of real trees. affairs manager. story. — Ellen Mitchell 20111212-NEWS--0038-NAT-CCI-CD_-- 12/9/2011 5:31 PM Page 1

Page 38 CRAIN’S DETROIT BUSINESS December 12, 2011 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF DEC. 3-9

utilities, economic develop- OMPANY NEWS arises in the wake of the ment, taxation and trans- Six to vie for two C problems plaguing the portation. St. John Providence board overseeing Detroit Headcount Lane will still do free- Health System in Warren Metro. lance reporting for Crain’s council spots on was one of two Michigan Because of the coun- on public policy, utilities health care companies ty’s ongoing deficits, its and outstate Michigan is- light-rail board awarded federal grants to battle over funding with at ex-Pfizer sues. Her replacement in improve school-based the Wayne County Circuit Lansing has not been he Detroit City Council health care centers. St. Court and the ongoing eco- named yet. today will interview John will use its grant of nomic problems in South- $132,57 to construct the In the new year, Lane can T six candidates nomi- east Michigan, Fitch Ratings Clintondale Health Center, has downgraded some be reached at (231) 352-5471 nated to serve as its two or [email protected]. the health system’s first Wayne County general site hits 1,000 representatives on an au- school-based health center, obligation limited tax thority that will oversee de- he University of Michi- About 100 institute em- in Macomb County. bonds to BBB+ from A-. sign and construction of a gan is expected to ployees are on-site, with 400- NASA explores Detroit’s General Motors Co., The Wayne County Land light-rail line on Woodward T announce this week 500 more scheduled to move business landscape maker of the Chevrolet Volt Bank doesn’t have suffi- that, ahead of schedule, its into the 117,000-square-foot Avenue. plug-in hybrid that is the cient internal controls and North Campus Research Com- Building 16 in 2012. The organization that put They are: Marsden Burger, subject of a federal safety its executive director has plex has passed the 1,000 men on the moon is interest- a longtime transit advocate investigation, is moving to too much autonomy, said a mark for those working on- Capitol guru going north, ed in exploring Michigan, who worked on the original a less volatile battery report by the county’s leg- site. That’s about one-third and likes what it sees so far. Detroit People Mover project; chemistry for its Chevy islative auditor general, of the total peak employ- reporting part time Representatives from Patty Fedewa, an attorney Spark electric car going on Willie Mayo. He also said the ment when it was a Pfizer NASA’s Langley Research and bus improvement chair sale in 2013. GM is using After nearly 27 years land bank’s procurement Inc. research facility, and al- Center, Goddard Space of Transportation Riders Unit- phosphate-based lithium- with parent Crain Communi- practices and some land most half of the workforce Flight Center and Glenn Re- ed; Henry Gaffney, president ion batteries from cations Inc. and countless transfers “are problemat- there in 2008 when the drug search Center met with of Amalgamated Transit Union Waltham, Mass.-based A123 stories, Crain’s longtime ic.” The land bank board giant announced it was Michigan companies Dec. 6 Local 26, which represents Systems Inc. that are less Capitol Correspondent Amy will decide how to respond leaving Ann Arbor. and 7 to discuss possible Detroit Department of Trans- likely to burn than other Lane is leaving her 180-mile to the report. UM purchased the 174- collaborations. portation bus drivers; Ben- lithium batteries. A123 Sys- commute to Michigan’s national acre campus for $108 mil- The forum was organized jamin Kennedy tems has plants in Romulus live full , program offi- health ranking dropped lion in June 2009. It has 30 by the Detroit Regional Cham- and Livonia. time at her cer at the Troy-based two slots to 30 partly be- buildings, about 2 million ber’s Connection Point pro- Almost $900 million of home up Kresge Foundation; Sue Mo- cause of high rates of obesi- square feet of office and lab gram and the Michigan Eco- U.S. Army contract business north. sey, president of Midtown ty, a high violent-crime space and about 29 acres of nomic Development Corp. will remain in Sterling Lane, 49, Detroit Inc.; and Robert Polk, rate, low per capita funding vacant land. “I think it’s a first step in a Heights for General Dynam- who has a former DDOT director. for public health care and a “Numbers are symbolic, dialogue,” said Trevor Pawl, ics Land Systems and BAE been split- high rate of infant mortali- but 1,000 really does mean the chamber’s program di- Systems Inc., after the U.S. ting time ty, according to a report something. You need 1,000 rector for economic develop- ON THE MOVE Government Accountability Of- compiled by the United for a feeling of buzz. You see Lane between ment. “(NASA representa- Chris Baum, the senior fice denied a bid protest by Health Foundation. The rank- people walking in the doors, Lansing tives) were floored by the vice president for market- McLean, Va.-based Science ings: www.americas- walking down the halls, and Frankfort, decided ear- level of different types of ing at the Applications International healthrankings.org. people meeting over coffee,” lier this year that it was technology but also at the ef- Detroit Corp. Joining the federal said executive director time to spend more time ficiencies created in the Metro Con- Ann Arbor-based government and the city of David Canter, himself a for- home and with husband Vic. processes that some of the vention & NanoBio Corp. said it will Pontiac, Aetna Inc. became mer Pfizer executive. Lane, an East Lansing na- small companies are run- Visitors Bu- collaborate with a sub- the first health insurance “President (Mary Sue) Cole- tive and Albion College grad, ning on their shop floors.” reau, is re- sidiary of the drug giant company in Michigan to man, when she first an- joined Crain in 1984 in Ted Mecum, senior tech- signing to Merck & Co. Inc. to develop a file a federal lawsuit nounced the NCRC, said Chicago and served as an nology transfer manager at become vaccine for a serious cause against Blue Cross Blue there was a 10-year plan to associate editor with the Goddard in Greenbelt, Md., president of lung infections called Shield of Michigan over what build it out, which was a Crain Syndicate. said NASA used the forum and CEO of respiratory syncytial virus. it alleges to be unfair con- good place to start. Don’t She came to Detroit to be- to discover, and interact Baum Reno/Tahoe Cass Community Social tracting practices. overpromise. But I felt from come part of the original with, companies it didn’t USA, a group of visitors bu- Services Inc. has expanded A total of 215 single- the time I got here a year and Crain’s Detroit Business know about. reaus in the Reno-Lake its document destruction family home permits were a half ago that we had to be staff when the publication The Connection Point Tahoe area of Nevada. program, adding 20 jobs for issued in October in Ma- more aggressive early on.” launched Feb. 4, 1985. She’s program aims to attract Adam Jablonowski is re- developmentally disabled comb, Oakland, St. Clair The first UM group to been in the Lansing office companies unaware of what adults. The program is ex- tiring as executive director and Wayne counties, accord- move in was the medical since May 1987. Lane has Michigan and Detroit offer. pected to employ 50 adults of the Wayne County Medical ing to an analysis by the school’s Institutional Re- been one of the few Lansing Companies participating in part time and generate Building Industry Association of Society of Southeast Michigan view Board in March 2010. reporters to focus on busi- the forum were interested $50,000 in incremental rev- Southeast Michigan. That’s after 15 years. Lee Hawkins The latest are employees ness issues, and her cover- in NASA for subcontract- enue in the coming year, down from 233 in September will replace Jablonowski as of the new Institute for age has allowed Crain’s to ing, using its facilities or and $80,000 the year after. and 256 in October 2010. executive vice president of Healthcare Policy and Innova- consistently stand out in re- forming business partner- Lear Corp. said profit However, the 12 months the society. tion, which was approved by porting on areas such as the ships — which can lead to margins in car seating are ending in October recorded university regents in May. state budget, energy and government funding. Hawkins has 20 years of unlikely to improve because 2,605 permits, topping 1,899 senior-level association U.S. vehicle parts manufac- during the 12 months end- management experience, turers are having trouble ing in October 2010. including tenures as direc- charging their customers Single-game Detroit Pis- tor of membership and more. The segment has a tons tickets, including 500 chapter relations with the “natural margin” of 7 per- per game priced at $10, American Academy of Family cent to 8 percent of sales, were expected to go on sale Physicians. CEO Matt Simoncini said in a today. The first home game BEST FROM THE BLOGS Ferndale-based Garden webcast of a conference for is Dec. 28 against the Cleve- READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS Fresh Gourmet Inc. has hired analysts in London. land Cavaliers. vegetarian food guru The Detroit Tigers are fi- EFM by Valentines Day? OK, Wis., put up your mitts George Vutetakis as director nalizing a one-year deal of product research and de- OTHER NEWS with right-handed relief Could cash-strapped I don’t think we velopment. He will be in Former Detroit Metro- pitcher Octavio Dotel, Michigan shore up its charge of creating a prod- MLB.com reported. Dotel, can“ expect to see an $46 billion 2012 politan Airport CEO Turkia 38, pitched last season with emergency manager in budget with a nice uct line using natural Awada Mullin is suing the Detroit by Christmas, seven-figure court foods. Wayne County Airport Authori- the Toronto Blue Jays and St. but Valentine’s Day judgment on the Badger ThinkDetroit PAL is ty, saying the board violat- Louis Cardinals. seems to be a likely State for use of a searching for a new CEO. ed her contract and the candidate. mitten in its online Michael Porter left the De- state’s Open Meetings Act OBITUARIES ” materials? troit-based youth develop- when it fired her. Separate- ment agency in late Octo- ly, a bill introduced in the Lena Ficano, mother of ber for health reasons. COO Legislature would subject Wayne County Executive Reporter Nancy Kaffer’s blog on the city of Detroit Reporter Chad Halcom’s blog on the legal business Tim Richey is interim CEO airport authority appoint- Robert Ficano, died of and small business can be found can be found at www.crainsdetroit.com/halcom while the board conducts ments to local legislative heart failure Nov. 29. She at www.crainsdetroit.com/kaffer its search. approval — a proposal that was 79. DBpageAD.qxp 12/6/2011 11:55 AM Page 1

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