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www.crainsdetroit.com Vol. 27, No. 49 NOVEMBER 28 – DECEMBER 4, 2011 $2 a copy; $59 a year

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Finance Extra Biz owners see brighter China seeks clean tech Fund to help Michigan companies ramp up

ray of hope BY TOM HENDERSON Development Ltd. is in the midst of is being built with a commitment CRAIN’S DETROIT BUSINESS a construction project that in- from the Chinese government of cludes about 14 million square $300 million. The Hanson group Survey: Some A real-estate development feet of office and retail space on officials said this is the first of group overseeing one of the 1,200 acres in the heart of Foshan, seven such retail/office/technolo- largest urban development pro- a metropolitan area in southern gy incubators planned across Chi- Best-Managed Nonprofit feel free to hire jects in China has agreed to pro- China with a population of 5.4 mil- na in coming years and includes a winner: Goodwill succeeds vide $30 million for an investment lion. The company also provided shopping center, office buildings fund to help Michigan-based seed money to get the joint ven- and a large technology incubator with a cast-off idea, Page 11 BY NATHAN SKID clean-tech companies ramp up ture off the ground and has com- focusing on clean-tech. CRAIN’S DETROIT BUSINESS production so they can sell to the mitted to raise a much larger fund On Nov. 18, five representa- Chinese market, locate offices of unspecified size to invest in tives from China concluded a While memories of the economic there and form joint ventures Chinese-U.S. joint ventures and to weeklong visit to the U.S. by sign- This Just In downturn live on in the minds of with Chinese startups. license U.S. clean technology. business owners, cautious opti- Foshan Hanson Oriental Business The Foshan real estate project See China, Page 23 Pay gains among top-tier mism is replacing doom-and-gloom pessimism, according to a recent attorneys outpace peers survey conducted Top-tier Michigan lawyers ROUNDTABLE for Crain’s De- in private practice generally troit Business and outperformed their under- Turning corner: Honigman Miller lings, most public sector Panel says Schwartz and Cohn road’s still LLP by Lansing- counterparts and the profes- bumpy, Page 6 sion as a whole in compensa- based Epic-MRA tion gains, according to a Corp. new report by the State Bar of The survey of 300 Southeast Michigan. Michigan business owners and ex- The 2010 Economics of Law ecutives, taken Nov. 11, found a Practice Survey, released in business community that is stabi- full report form last week and lized and slowly growing. based on a survey of 3,775 re- John Cavanaugh, co-founder of spondents statewide, found Epic-MRA, said the findings con- that median pay for private tinue a positive trend noticed in a similar survey done in June. practice attorneys was “We are still an automotive state $84,000, down from $85,000 the — that’s the bread and butter. So previous year. as that industry goes, so goes the The median income of non- attitude of business owners,” Ca- private practice attorneys re- vanaugh said. “We are seeing opti- mained $88,000; in-house counsel at for-profit corpora- See Survey, Page 22 tions saw a 4 percent gain, from $121,500 to $126,000, off- set in part by declines among BIZ BACKS NITC – BARELY city attorneys, public defend- In a poll for Crain’s Detroit Business ers, some federal agency at- and Honigman Miller Schwartz and torneys and in-house counsel Cohn LLP, Gov. Rick Snyder got NATHAN SKID/CRAIN’S DETROIT BUSINESS some support from businesspeople App maker Detroit Labs LLC just moved into the Madison Building downtown. From left are co-founders Dan Ward, vice for private companies. president of business development; Nathan Hughes, vice president of software engineering; Henry Balanon, director of Among private practition- for his proposed New International Trade Crossing, although opinion mobile; and Paul Glomski, CEO. ers, median pay grew 3.3 per- was almost evenly split. The cent among managing part- business support, though, was ners ($150,000 to $155,000), better than support from the overall and almost 7 percent among population. An Epic-MRA poll of 600 the top 5 percent of that likely voters conducted Nov. 13-16 for the Detroit Free Press and Movin’ up with downloads group ($750,000 to $800,000). Associates saw slight gains, WXYZ-Channel 7 found 59 percent from $70,000 to $71,000. opposition, with only 30 percent Sole practitioner median support. Investors sign on as app market grows pay decreased as a whole by 7 Business percent or more, and non- owners and BY TOM HENDERSON equity partner median pay executives CRAIN’S DETROIT BUSINESS MORE ON APPS was unchanged. The largest supporting the This is a great market gain for any group was feder- new bridge: Opposed: What began as a trickle in 2008 has be- “ Profiles: Four al prosecutors, who ad- come a flood of local mobile smartphone opportunity, and it companies with vanced nearly 10 percent, app development and downloads. Five lo- app-titude, 46% 44% Page 24 from $130,000 to $142,500. cal app developers have had aggregate cements Detroit as the downloads of more than 1 million each, a Evolution: The — Chad Halcom More poll results, Page 22 rise of a local trade association continues to grow latest hotbed. multibillion-dollar rapidly, and investors are pouring money ” sector, into the space. Josh Linkner, ePrize Inc. Page 24 Dan Gilbert, founder of Detroit-based Quicken Loans Inc., and Josh Linkner, and to serve as an incubator for app- founder of Pleasant Ridge-based ePrize based companies they hope to spin off. CRAIN’S LIST Inc., are the highest-profile investors in Three weeks ago, Detroit Labs moved Largest Southeast local smartphone apps. Their investment into the recently rehabbed Madison Michigan app firm, Detroit Venture Partners LLC, formed Building in downtown Detroit, one of a developers, Page 17 NEWSPAPER Detroit Labs LLC in the spring to do app de- velopment for large commercial clients See Apps, Page 24 20111128-NEWS--0002-NAT-CCI-CD_-- 11/23/2011 4:23 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS November 28, 2011

MICHIGAN BRIEFS Genesee chamber seeks support fees from Pfizer for setting up the program. We have to wait and see for aerotropolis designation State scrambles to restore renaissance zone tax break what the volumes will be for Pfizer Remember when “aerotropolis” to retain their profitability.” When the Minervini Group LLC decided turn the residents of the zones. Revoking it was “inadver- looked like a typo? Now, it’s look- — Jay Greene abandoned Traverse City Regional Psychiatric Hospital tent,” she said. Sen. David Hildenbrand, R-Lowell, ing like a trend. Following on the into the Village at Grand Traverse Commons mixed-use sponsor of the Senate bills, hopes legislation can be heels of the state’s first aerotropo- development, it counted on state tax incentives that passed and sent to Snyder this week. The Legisla- Chamber-visitors bureau merger: lis around Detroit Metropolitan Air- came from having the site designated a renaissance ture returns to session today. port and a campaign to seek a simi- A good idea, not a good surprise zone. Like developers throughout Michigan, Min- The 10 renaissance zones in Grand Rapids “were lar designation for the region ervini used the elimination of the state income tax absolutely successful,” said Kara Wood, the city’s Speaking of the Genesee Region- surrounding Lansing’s Capital Area in the zone to lure condominium buyers. economic development director. Those zones have al Chamber, the organization also International Airport, the Genesee Re- But Minervini was surprised to learn that the received more than $413 million in private invest- likes the idea of merging with the gional Chamber of Commerce wants Snyder administration and Legislature — as part of ment since 1997 and have created 1,630 jobs, not in- Flint-Genesee County Convention & municipalities in Lapeer, Shi- a broader overhaul of the state tax code — quietly cluding temporary construction jobs. The zones also Visitors Bureau. But that bureau is- awassee, Oakland and St. Clair had taken back the tax break. attracted hundreds of residents downtown, as old of- n’t prepared to be as accommodat- counties to get behind its effort. Sara Wurfel, Gov. Rick Snyder’s press secretary, fice buildings, warehouses and factories were con- ing, with officials telling The Flint The aerotropolis designation — confirmed that the administration is working with verted into condominiums and apartments. Journal that they never were con- known formally as the Next Michigan the Legislature to restore the income tax break for — Pat Shellenbarger sulted. Development Corp. — allows regions Among the people who also like near airports, rail lines and high- the merger are members of the ways to use tax incentives to attract Michigan companies plan to work ter on the shore of Muskegon Lake. mail Lipitor to patients who order Genesee County Board of Commis- businesses. The Genesee chamber on a Muskegon manufacturing cen- Besides manufacturing, the the pills through the pharmacy. sioners, which determines what or- told The Flint Journal that the idea ter to develop Michigan’s wind en- Muskegon-based energy center Diplomat then would bill the pa- ganizations share a hotel room tax is one of the biggest economic devel- ergy industry. could include shipping, research tients’ health plans, Pfizer said. — the source of almost all the visi- opment projects it has undertaken. Muskegon-based L3 Combat and development, testing and edu- Diplomat officials were unavail- tors bureau’s funding. Chamber CEO Tim Herman said Propulsion Systems and Grand cation activities, The Chronicle re- able for comment at press time Visitors bureau President Jack the region is a prime location for an Rapids-based Rockford Berge have ported. Wednesday afternoon. Schripsema said that, indeed, a aerotropolis because it’s near Bish- established the Michigan Wind Ener- It is the first time that a major merger might make promoting the op International Airport, the rail sys- gy Consortium, joining other compa- pharmaceutical drug maker has region more efficient, so the bu- tem and several major highways. nies to form an industrial center. Flint pharmacy lands Lipitor contracted with a mail-order com- reau board authorized negotia- The Muskegon Chronicle reported mail-order biz from Pfizer pany to sell brand name drugs to tions with the chamber. Still, he Fate of tax break doesn’t deter that the consortium is not a devel- consumers at generic prices after said, the idea left the agency “sur- oper of wind farms but a group of Flint-based Diplomat Specialty the drug’s patent expires, said prised and a little disappointed.” plan for wind energy consortium companies and supporting agen- Pharmacy looks to benefit from Pfiz- Fred Brown, managing director of er Inc.’s decision to substantially Despite any apprehensions the cies that would build parts for health care at the Troy-based mar- Find business news from cut the price of the cholesterol- state’s wind turbine suppliers may wind turbines, ship them around keting and consulting firm Ducker around the state at crainsdetroit fighting drug Lipitor when the have expressed over the potential the world and service the land- Worldwide. .com/crainsmichiganbusiness. patent on the brand name drug loss of federal tax credits (“Wind based wind industry. “I think it is a neat model that Sign up for Crain's Michigan runs out at the end of the month. turbine suppliers fear loss of tax The goal is to develop a Michi- Diplomat is doing,” Brown said. Business e-newsletter at crains Under an agreement, Diplomat will credits,” Nov. 21, Page 3), two West gan Energy and Technology Cen- “They have received good service detroit.com/emailsignup. 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! 20111128-NEWS--0003-NAT-CCI-CD_-- 11/23/2011 5:05 PM Page 1

November 28, 2011 CRAIN’S DETROIT BUSINESS Page 3 Hospitals: Flaws in no-fault bills Inside Industry says trauma centers in danger of closing

BY JAY GREENE vote on the no-fault bill could be tak- Michigan, which is lobbying for the CRAIN’S DETROIT BUSINESS en this week, Ari Adler, press secre- insurance overhaul, said he does tary for House Speaker James Bol- not expect the House bill to be con- Under House Bill 4936, Michi- ger, said a vote in the House hasn’t sidered until December. He ex- gan’s unlimited and lifetime in- been scheduled. The bill was ap- pects the Senate bill to be voted on jury coverage in auto accidents proved in the insurance committee in early 2012. would be eliminated. Drivers last month. Kuhnmuench said fee schedules would be able to choose lower lev- “We are trying to get no-fault re- are necessary to stem rising health Kuhnmuench Connolly els of personal injury coverage. form voted out of the House by the care costs that are unsustainable. But what most concerns hospi- end of the year, but it depends on “The cost for procedures and workers’ compensation patients. Anthony Adams moves on tals, physicians and rehabilitation whether we can find consensus treatments (that) hospitals cur- Hospitals helped create this cost from days with Kilpatrick, providers is the bill also would im- and support for the changes,” rently charge no-fault patients is shift, and it is unrealistic of them plement a fee schedule — similar to Adler said. “We aren’t there yet, significantly higher than what to think it will go on forever.” Page 14 that used in workers’ compensation but we’re working on it.” they accept under other types of But Brian Connolly, CEO of since the mid-1980s — that would Similar legislation, Senate Bill insurance systems with a fee Dearborn-based Oakwood Health- drastically reduce reimbursement 649, is awaiting action by the Sen- schedule,” Kuhnmuench said. care Inc., said he disagrees that for services, leading to possible clo- ate Committee on Insurance. “It is not fair that no-fault pa- Michigan’s health care costs on Company index sures of trauma centers. Pete Kuhnmuench, executive di- tients are charged up to 400 percent While opponents worry that a rector of the Insurance Institute of more for tests and procedures than See Bills, Page 23 These organizations appear in this week’s Crain’s Detroit Business: American Axle & Manufacturing Holdings ...... 3 Ann Arbor Spark ...... 23 Asker Perlmuter ...... 22 CBRE Group ...... 3 American Axle Commercial Financial Management ...... 3 Core Partners ...... 25 Detroit Department of Transportation ...... 4 Detroit Labs ...... 1, 24 faces rough ride Detroit Metro Convention & Visitors Bureau ...... 6 Detroit Regional Chamber ...... 6 Detroit Rescue Mission ...... 12 Detroit Venture Partners ...... 1 Epic-MRA ...... 1 over tax breaks Friedman Integrated Real Estate Solutions ...... 25 GlobalHue ...... 6 Goodwill Industries of Greater Detroit ...... 11 Council members mad Honigman Miller Schwartz & Cohn ...... 1, 6 Institute of Management Studies ...... 22 about job cuts since ’08 Insurance Institute of Michigan ...... 3 J.D. Power & Associates ...... 25 BY DUSTIN WALSH JacAPPS ...... 24 CRAIN’S DETROIT BUSINESS Jacobs Media ...... 24 JEWL Solutions ...... 24 The Detroit City Council is squaring off with L. Mason Capitani ...... 3 American Axle & Manufacturing Holdings Inc. Lakeshore Healthcare Group ...... 14 over the auto supplier’s request to extend the Luna Dick Scott ...... 21 renaissance zone tax exemptions on its De- Mariners Inn ...... 12 troit headquarters . Marvel Apps ...... 24 American Axle seeks Mercury Studio ...... 24 to extend the designation Michigan Economic Development ...... 21 through 2018 by promis- Michigan Nonprofit Association ...... 11 ing to make $6 million in GLENN TRIEST Mitchell Research & Communications ...... 14 upgrades to its world “We wanted more visibility and we wanted to remain in Troy. This is perfect,” said Rehmann LLC Managing Mobiata ...... 24 Principal Phil Bahr of the company’s move from North Troy Corporate Park to Big Beaver Road. headquarters on Hol- Mobile Technology Association of Michigan ...... 24 brook Street and hire 20 Oakwood Healthcare ...... 3 information technology Rehmann ...... 3 employees. Renaissance Venture Capital Fund ...... 6 The supplier’s current RRA Partners ...... 22 renaissance zone desig- Real estate ‘musical chairs’ Rush Trucking ...... 25 nation ends in 2013. The Scott Griffin ...... 22 It’s left zones provide eligible Sino Ambassadors ...... 23 “ companies state, county Spate of leases can’t plug Troy’s vacancy hole Southeast Michigan Council of Governments ...... 4 a bad taste and city tax exemptions SMART ...... 4 in our — with the exception of BY DANIEL DUGGAN “The real problem is that it’s still a game of Title Source ...... 25 debt-related taxes on CRAIN’S DETROIT BUSINESS musical chairs, where every new deal opens up Transportation Riders United ...... 4 mouths. bonds. Detroit has 12 re- a hole down the street,” said Mason Capitani, a T-Systems North America ...... 25 ” naissance zones. A recent string of deals has new companies principal with the Troy-based real estate bro- UHY Advisors ...... 21 American Axle applied moving into some of Troy’s struggling office kerage L. Mason Capitani Inc. “Until we have new Warm Training Center ...... 12 Ken Cockrel Jr., for the extension last buildings. companies coming in from outside the market Zell Lurie Institute for Entrepreneurial Studies . . . . 24 Detroit City Council month, looking for a deci- That would be good and not down the street, it’s going to continue.” sion before its Dec. 31 ex- news if not for the fact COMINGS, GOINGS Exemplifying the trend is the change in Troy tension deadline. But it quickly found critics that those companies are Closer look: Recent offices for Saginaw-based Rehmann LLC. on the City Council. moving out of other Troy deals, vacancy rates, The company started moving its employees Department index If the council votes down the extension, by buildings. Page 25 into 40,000 square feet at 1500 W. Big Beaver this BANKRUPTCIES ...... 4 2014 American Axle will be paying roughly On the whole, 2011 has month. BUSINESS DIARY ...... 20 $480,000 in taxes on the property annually, been a case of good news, bad news for Troy. As a result of Rehmann’s taking roughly half the company says. The city generated more leasing deals than any of the building, the landlord, Birmingham- CALENDAR ...... 16 Councilman Ken Cockrel Jr. and others other office market, yet finished the third quar- based Commercial Financial Management Inc., is CAPITOL BRIEFINGS...... 21 are angry over the supplier’s action to purge ter with the second-worst vacancy rate in the completing a major renovation of the building CLASSIFIED ADS ...... 21 region at 34.8 percent, according to data from KEITH CRAIN...... 8 See Tax breaks, Page 25 the Southfield office of CBRE Group Inc. See Troy, Page 25 MARY KRAMER ...... 8 OPINION ...... 8 Jobs resource Subscribers can dig deep OTHER VOICES ...... 9 Crain’s and HiredMyWay offer help to Get unlimited access to articles dating THIS WEEK @ PEOPLE ...... 19 employers, job seekers and job back to 1994 at crainsdetroit.com. WWW.CRAINSDETROIT.COM referrers. Find it at crainsdetroit.com Online-only subscriptions cost $36 a year. RUMBLINGS ...... 26 WEEK ON THE WEB ...... 26 20111128-NEWS--0004-NAT-CCI-CD_-- 11/23/2011 3:50 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS November 28, 2011 Regional transit bills linked to creation of a third bus system BY BILL SHEA Noting that attempts to merge with Gov. Snyder, Mayor Bing, CRAIN’S DETROIT BUSINESS DDOT and the suburban system and all the regional stakeholders (which has operated under several to help make that happen.” The latest attempt to create a re- names over the years) have failed The intention of Snyder’s pro- gional transit authority to oversee 23 times, Snyder press secretary posal is to eventually have DDOT bus and train service in metro De- Sara Wurfel said a separate system and SMART operate under the re- troit could see bills introduced as that doesn’t have massive pension gional authority, but not necessar- soon as this week, transportation obligations (like those of DDOT) is ily merge them. Potentially, com- industry watchers say. the best way to get transit done. muter rail lines and other transit The legislation is expected to be “The governor felt strongly that options could fall under the RTA. linked to the creation of a third bus continued failure is not an option Carmine Palombo, director of system for the region, a network of and that we needed ... to start anew transportation high-speed buses in dedicated lanes and somewhere,” she said via planning for the that would operate separately from email. Southeast Michi- the Detroit Department of Transporta- A similar plan proposed in 2009 gan Council of tion and the Suburban Mobility Author- by former Macomb County Board of Governments, ity for Regional Transportation. Commissioners Chairman Paul thinks the three It’s believed that the bills, devel- Gieleghem had a $927 million price bus services will oped in conjunction with a region- tag for commuter bus service on exist separately al transit task force of local, state Gratiot and Woodward avenues only for a limit- and federal officials, will be spon- and the M-59 corridor. ed time. SEM- sored by Sen. Tom Casperson, R- Washington, meanwhile, is with- COG is the re- Palombo Escanaba, who is chairman of the holding judgment of the new plan. gional planning Senate Transportation Committee. The Federal Transit Administration, agency whose long-term plans Gov. Rick Snyder proposed the which funds mass transit, is aware must include transportation pro- new bus system last month. Details of Snyder’s proposal but isn’t com- jects before they can receive feder- are few, such as the Gratiot, Wood- menting on it because details of al funding. ward, Michigan Avenue and the M- the plan are still being worked out. It also remains to be seen if De- 59 corridor with connections to De- “The residents of the greater-De- troit’s $528 million Woodward troit Metropolitan Airport as the basic troit area need and deserve a mod- light rail line, which could be oper- system, and there’s been no talk of ern transit system that serves the ating by 2015, is operated by an cost or how it would be paid for. entire region in a safe, reliable, RTA or on its own, Palombo said. A board made up of representa- seamless, and cost efficient man- “You wouldn’t hope that there’s tives from Wayne, Oakland, Ma- ner,” FTA Administrator Peter Ro- another separate operating enti- comb and Washtenaw counties goff said in an emailed statement. ty,” he said. would oversee the system. “The FTA is committed to working A single, regionwide bus service is unlikely to happen because of Detroit’s legacy costs, Megan Owens, executive director of De- troit-based Transportation Riders United, which advocates for public transportation locally. “No one is going to be willing to merge with DDOT and all its pen- sion obligations and complex labor rules and hiring practices,” she said. “I don’t see that there’s any way a true merger can occur.” Instead, an RTA would oversee service coordination and federal funding disbursement while the agencies maintained their own obligations. Owens said having three sys- tems may be unwieldy for a time, You Deserve to See All of Your Commercial Real Estate Options but getting people to work is more important. “The number of agencies cer- tainly is a factor, but getting peo- ple to where they need to go is a more important than the hassle of a third agency. It may be the best option we have,” she said. Bill Shea: (313) 446-1626, [email protected]. Twitter:

BANKRUPTCIES Real Estate Strategy The following businesses filed for Chapter 7 or 11 protection in U.S. Tenant Representation Bankruptcy Court in Detroit Nov. 18- 22. Under Chapter 11, a company files Buyer Representation for reorganization. Chapter 7 involves total liquidation. Project Feasibility Sova Steel Inc., 2179 Coach Way, Bloomfield Hills, voluntary Chapter 7. Before you make a move, let us uncover every commercial Construction Oversight Assets and liabilities not available. real estate option. As an unbiased, tenant representative, Electric Stick Inc., fdba The Stick Café, dba Marvaso’s Italian Grille, 40010 we bring more thought per square foot. Incentives Crosswinds, Novi, voluntary Chapter 11. Assets and liabilities not available. Lease Administration Uncle Andy’s Pizza Inc., 28957 Wood- pmcresa.com 248.223.3500 ward Ave., Berkley, voluntary Chapter 7. Assets and liabilities not available. — Michelle Muñoz DBpageAD.qxp 11/22/2011 3:39 PM Page 1

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Page 6 CRAIN’S DETROIT BUSINESS November 28, 2011 Roundtable: Road has bumps, b

n Oct. 11, Crain’s and Honig- trouble attracting what we needed investment capital) sitting on the man Miller Schwartz and Cohn to make successful entrepreneurial sidelines because nobody knows O LLP convened a panel of ex- companies. when to jump in or where to jump ecutives for a wide-ranging discus- Well, the world got turned upside in, so there’s pent-up demand for a sion on the economy, immigration down in 2008 and what was thought lot of different things from market- and other issues facing metro De- of as secure was now insecure and ing to capital. I think that 2012 is troit. The following is an edited what was thought of as insecure going to be a break-out year. transcript. In some cases, com- now didn’t quite seem so insecure, Goodaker: Chris, you were talking ments have been reordered to pre- so the folks who we couldn’t attract about how the economy running amok serve the conversational thread. to startups started looking. has made some things seem less risky Panelists were: That has really allowed the en- than they once were. Can you talk Chris Baum, senior vice presi- trepreneurial side of Detroit to about that a little? dent, Detroit Metro Convention & Visi- blossom. Rizik: Sure. I’ll give an example. tors Bureau. Baum travels the coun- Allen Pugh: We Around 2005, we had a very hot try selling Detroit as a meeting have clients that new company we were creating destination. I would label as out of the University of Michigan. We Michael DuBay, partner, Honig- A clients and B were recruiting for very specific man. DuBay’s work is in private clients. The A engineering talent, and we had an equity, venture capital and merg- clients see the fu- engineer we were targeting. ers and acquisitions. ture as the cup He loved the job, the pay was Maureen Donohue Krauss, who at half full, the B right and all that, but when it got the time of the meeting was director clients see it as down to it, he got all caught up in of economic development and com- the cup half emp- how many weeks vacation and munity affairs for Oakland County. ty. Those that Pugh medical packages and all the stuff She now is vice president of eco- see it as half full are clients that that we’ve focused on here in the nomic development, business at- want to invest, that look to be ag- Detroit area, sort of the entitlement traction, Detroit Regional Chamber. gressive and look to grow their piece of things. And in the end, he Allen Pugh, vice chairman of business, and the B clients are said, “You know, I’m just too secure multicultural advertising agency clients that want to wait. where I’m at to move over.” GlobalHue, Southfield and New So, our challenge is moving our Well, the company he was with York. He also is CEO of Global- business forward with how the was Delphi, and that’s the whole Hue’s eight sister companies, clients want to invest. thing that I’m talking about. What which cover a range of disciplines Maureen Krauss: Funding is still was once seen as secure turned in- tied to advertising: public rela- a challenge for secure and then this startup com- tions, broadcast and print produc- our area to pany that he didn’t go to has now tion, media planning and buying, move ahead, grown to about 50 or 60 people. marketing and translations. and also work- It turned out that was a much Chris Rizik, CEO and fund man- force. more secure thing, but this way of ager of the Renaissance Venture Capi- I think our big thinking is a fundamental change tal Fund, created in 2008 by what is challenge ahead for our area. We’re an area that’s now known as Business Leaders for is matching up had very, very smart people but Michigan. The fund invests in ven- the needs of not the most flexible people. ture capital firms willing to invest companies who in emerging Michigan companies. are calling us, Krauss Rizik also sits on the Michigan Eco- and they’re hir- Venture capital nomic Development Corp. board and ing and looking for a lot of people. Goodaker: Michael, how are you also on the boards of several ven- Michael DuBay: I think we’re seeing this play out in terms of ven- ture capital funds. He also runs ahead of the ture capital and investment? soul music website soultracks.com. curve economi- DuBay: The question is whether The discussion was moderated cally in South- there is enough entrepreneurial by Crain’s Executive Editor Cindy east Michigan, capital in this state to fund all these Goodaker. but there’s a lot kind of businesses. We’ve seen a of uncertainty tremendous increase, but there’s Cindy Goodaker: What’s the business in Washington still not enough. There are still a lot issue most on your mind right now? right now. of companies that unfortunately Chris Baum: Our biggest challenge The other is- need to go to one of the coasts to try is overcoming the resistance of or- sue is stabiliza- to secure funding. ganizations to tion of financial Rizik: Both the Michigan Venture DuBay consider Detroit. markets and Capital Association and McKinsey It’s a lot easier making sure banks are putting did recent studies, and they came now than it was money to work. I think we’re also up with the same conclusion. five years ago, seeing the continued stabilization Right now the demand for capital but we still have of the automotive sector. It’s a sec- is five times the supply, so while a lot of people tor that’s going to be ripe for con- there is a lot of capital around the who are con- tinued M&A activity both from country, Michigan, like the rest of vinced in ad- strategic investors and from pri- the Midwest, has a real deficit in vance that this vate equity investors, so we’re entrepreneurial capital. isn’t the right re- looking forward to a busy 2012. DuBay: How do we fix that? Baum gion for a corpo- Rizik: Well, there’s a number of rate meeting, for a big convention, The new security things. That’s partly what I’m do- for a weekend getaway, so our chal- ing. With the Renaissance Fund, lenge is always overcoming that Goodaker: Allen, about your A we’ve pooled funding from various initial resistance. If we can get clients and B clients, clients who want organizations and we’re trying to them over the hump, we almost al- to invest and clients who don’t: What find the best venture capital ven- ways get the business, but it takes a is pushing them in one direction or the ture funds from around the coun- very persuasive and persistent other? try and engaging them in Michi- sales effort. Pugh: I think it’s a mindset. You gan, so most of our investments Chris Rizik: In have to have leadership at the top are in funds that have never been the decade prior who is willing to invest for the fu- in Michigan before. to 2008, innova- ture, and I think that goes across The quid pro quo is that we’ll in- tion happened in all different categories of clients. vest in a venture fund from San large companies, The automotive industry has Francisco and say what we expect employment completely rebounded, and right now is that you’re going to start happened in now I think everybody in that in- coming to Michigan and looking at large companies dustry is an A client. They under- deals here because we know you’re and Michigan stand that they have to strike now, going to find things you like. was in some they have to be competitive now. But what also we bring, which is ways a backwa- Rizik The future is today, tomorrow and really unique, is we have the 80 ter for entrepreneurship, very risk next week, so they can’t wait. largest companies in the state be- averse, so what we found in the I think I read somewhere that hind us; so if you do find an inter- venture capital world is we had there was over a trillion dollars (in esting company in alternative en- 20111128-NEWS--0006,0007-NAT-CCI-CD_-- 11/23/2011 3:48 PM Page 2

November 28, 2011 CRAIN’S DETROIT BUSINESS Page 7 s, but Detroit’s turning corner

ergy, you’re one phone call away get people from the airport to need to keep the brain power here. from having DTE or CMS test the downtown at a cost-competitive If that requires someone from product for you, or if you have price. We have the worst airport India to fill that position, it’s still something in the sensor space, you transportation service in America. good for Michigan. can have Masco test it for you. And that’s a real negative for busi- Rizik: The fact is that immi- Last year was the second best ness travelers. grants don’t take jobs, they create year for venture capital in the So we have an airport that J.D. jobs; and from a policy standpoint state’s history when nationally it Power & Associates says is the best right now, we’re dealing with im- wasn’t a very strong year, so we’re large airport in America, and we migration with a machete based beginning to see more money flow- have beautiful hotels downtown on certain problems in certain ing in from the coast, but it’s a and in our suburbs and getting be- states rather than a paring knife. long-term challenge that we have. tween them is more expensive and Pugh: I think Detroit could be a DuBay: Are you still seeing less competitive and more compli- leader in this area, even though coastal firms asking companies to cated than virtually any other city our community is somewhat seg- move out to the West Coast and the in America. So we have to find a so- regated. But the young people who East Coast in the second, third, lution for that because it hurts us. are moving in are more accepting fourth rounds of financing? of a diverse city. I think that when Rizik: We still see that, but not as you think about what’s happening much as we did. Coastal Ventures, Immigration in Detroit now and over the next one of the biggest energy investors Goodaker: What about immigration three to five years, there’s a real in the country, has invested in five as a rebuilding strategy? There’s a his- opportunity to break those walls Michigan companies in the last tory of immigration being a positive down and bring people together to Continuity Trusted for 70 years. We’ll be here for generations. two years. None have had to move. force here. live side by side because of the op- On the other hand, we’re still see- Rizik: The immigration piece is portunity that Detroit presents. ing companies, particularly in the huge. If you look at Silicon Valley, medical space, if they get invest- probably half of the startup compa- Predictions for 2012 We work with our clients and their advisors to: ment, or in the IT space, are still be- nies are formed by immigrants. ing asked to move, and there are We need the same thing here. Goodaker: What kind of economy do Reduce estate and income tax Enhance fixed income reasons for some to move at least you think we’re going to be dealing yields Solve family and business issues Improve part of their operations. Goodaker: Is part of that retaining with in 2012? So our first push is, OK, you can international students? Baum: We have a $300 million existing life insurance policies. move sales and marketing to the Rizik: Yes, we have to create op- reinvention of Cobo Center that will coast, if that’s where the customers portunities for them. We have to be done in 2014. That’s a great are, but leave research and devel- create opportunities to take posi- thing for the convention world. opment here. We’re seeing that tions that are open, but also to cre- But one of the challenges we face happening some, but ultimately the ate entrepreneurial opportunities as the economy gets back on its goal is to have enough capital here for them because international feet as a region is that we tend to so companies aren’t forced to move students generally like the idea of be negative about ourselves, beat for the convenience of investors. staying here, and they are willing ourselves up a lot, and that often BIRMINGHAM, MICHIGAN 248.731.9500 to take risks. works against us. WWW.SCHECHTERWEALTH.COM The outside view I see business plan after busi- Rizik: I think nationally 2012 is ness plan, really exciting stuff. Of- going to be kind of a flat year as far Goodaker: Chris, tell us about some ten, you know, they’ll come in with as economic growth is concerned, of your challenges in convention re- two or three business ideas, so but I think we’re in a region that cruitment. they want to stay here. We just will outperform nationally. Baum: When we bring meeting have to create a path for them to We’re a region that has tradi- planners here to town for a site in- stay here. A big part of that is im- tionally sort of not played well to- spection, either as a group or indi- migration reform so they can stay gether, but for the first time I’m vidual, we actually have to plot the here as nonstudents. seeing government, business, the route we drive to them to go on our 800-292-3831 Krauss: And no roadblocks. foundation community, the uni- schedule to make sure it passes the Sometimes we create roadblocks. versity community working to- indiantrails.com best possible way throughout the Several years ago I was in India for gether in a way that simply hasn’t city. We shouldn’t have to do that. meetings and we met with one of happened before. We do it and they’re none the the larger Indian IT companies, We’re seeing new approaches to wiser for it, but I look forward to a and when we walked in the manag- things that I think are setting us day we can take them the most con- ing director handed us a piece of up to become a region over the venient way, that even if the busi- legislation that was proposed in next 10 years that will outperform ness is empty it’s been maintained ONE HU the national economy and outper- G ND Lansing that would restrict immi- IN R T E and has a facade and is positive. A D grants in the state from getting a form our peer states. R Y B E

Our streetscapes now are not E A L I don’t think it’s going be fast R E

driver’s license. S competitive, and a lot of the good growth, but I think we are in a re- C 100 things going on are behind closed This had been proposed while we were traveling. We were able to gion that’s going be on the up- doors and up on floor 17. swing in 2012. Even secondary cities that are get that legislation stopped, but it sends the wrong message. Krauss: I think our communities in our same competitive set do bet- are still going to be challenged as ter. I was in St. Louis this summer He said, “If this passes in your state, I will not be able to hire an- the lag on tax revenue collected re- for a convention that’s going to be ally is hitting right now. here in 2015. And when asked what other person in your state.” He already had a couple of hun- The good news is that projects we did today, everyone had gone to are coming back. We see it with Macy’s. It’s the only major depart- dred employees here and he would have looked at moving those. companies that call us every day, ment store in downtown St. Louis, whether they want to add 10 people but everyone ended up there be- Goodaker: It’s interesting how im- or 200. We’re truly getting those cause people like to shop. migration policy often boils down to a calls every day. We don’t even have the depart- discussion of border issues, but not Pugh: I believe there is going to ment store anymore, so we really about how we can foster economic be tremendous opportunity in have to get that addressed if we growth through immigration. 2012. I think that you’re going to want tourists to come here from Krauss: Having worked in Ari- have a lot of people coming off the Comfort and Cleveland for the weekend, if we zona and now in Michigan, the im- sidelines and being forced to en- want media and convention plan- migration issues in Arizona are a gage, whether they want to or not, ners to come here and spend mil- totally different animal than here. because if they don’t, they might t
$IBSUFST lions of dollars and have their peo- In Michigan, our mindset should as well go home. Luxury ple say good things about us when be how do we bring great talent, no I think locally a lot of things are t
5PVST they go home. matter where from, keep great tal- going to start to align and really I’m not sure what the answer is, ent and bring more. provide this region with an oppor- t
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but I’m not sure a lot of people Baum: I think we’re kind of stuck tunity to do some big things, or at 00 think it’s as big a problem as it is. in the old way. The state grew least set the stage for larger things t
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4FSWJDFT SAVE $100 OFF Goodaker: When people go places based on manpower. If you showed in the future. I’m just high on 2012. for meetings, they have an expectation up on a consistent basis and you Things are not moving as fast as t
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&WFOUT of walkability. They don’t want to take were trainable, you could have a we would like, but I think we’ll Contact Indian Trails for details. Must use this cabs if they don’t have to. They want to nice career. Today, career progress look back on 2012 and say that was t
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4FSWJDF promotional code at time of booking: 2011CDB-NOV go out of the hotel and walk around. is based on brain power. No matter the year that started us back to Baum: We need to find a way to where the people come from, we where we wanted to go. 20111128-NEWS--0008-NAT-CCI-CD_-- 11/23/2011 3:46 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS November 28, 2011 OPINION MARY KRAMER Compromise needed Who will be the best EFM? As Keith Crain writes health and pension Ironically, Detroit’s story is a tale this week, the question is- benefits made to cur- of two cities. n’t “if” a financial manag- rent employees and One is the city with a cash- to keep Axle plant open er should be appointed for paid out to retirees. strapped, dysfunctional govern- Detroit. It’s “when” and A consent agree- ment whose failure makes the city’s etroit City Council is being urged to punish auto “who.” ment may encourage most vulnerable residents prey to a supplier American Axle & Manufacturing Holdings Here’s hoping Gov. Sny- realistic negotiations city that doesn’t work — buses D Inc. for cutting mostly unionized production jobs in der has a short list. on these matters. But don’t run and police don’t respond There’s still a strong ultimately, an emer- (quickly or at all) to the kind of calls Detroit while expanding manufacturing in Mexico. And, chance that Detroit could gency manager may that are “all in a day’s work” in the lest we forget, Three Rivers in Southwest Michigan. create a “consent agree- be needed to push a suburbs. A strike in 2008 — and the collapse of the domestic auto ment” with the state — a deal through. The other city is a magnet that industry — cost the company nearly $1.5 billion over two step short of an emergency The ideal manager draws growing numbers of artists, years. manager. That might make a lot of would have experience in large, young entrepreneurs and career sense, but the process would keep public organizations and would professionals and others who want As Dustin Walsh reports on Page 3, the company an- union contract agreements intact, make tough choices but help pre- to live — and often work — in a city nounced it would close its Detroit plant in 2012 after failing with changes subject to negotia- pare elected leadership for govern- with a rich and changing urban to reach a favorable contract with the United Auto Workers tion. ing in the post-restructuring era. scene. This is happening in spite of union. Union workers in Three Rivers, however, approved Could Detroit pull that off? Detroit’s former auditor general, the city’s current financial issues. the contract and work from Detroit — and jobs — will be As a CPA, Snyder must know Joe Harris, is the state-appointed Whatever happens in “official” something must happen — and emergency manager in Benton Har- Detroit, it’s important that solutions added there. soon. bor. He certainly knows Detroit be- create a city worth living in — for If it loses its tax break extension, American Axle would Six cities around the country cause he did operational audits dur- the vulnerable and long-suffering pay nearly $500,000 in additional taxes to a city that sorely have filed for bankruptcy under ing his 10-year tenure as the residents as well as newcomers be- needs the cash. The company says losing its tax breaks federal Chapter 9 protection this council-appointed auditor general. guiled by the city’s potential. could affect plans to bring a new manufacturing venture, year, most recently Harrisburg, Pa. His fans are advancing his name to In some cases, the cities are bur- the governor’s staff. Mary Kramer is publisher of led by Rush Trucking founder Andra Rush, into the com- dened by debt; in Harrisburg’s case, Another possibility: Jack Martin, Crain's Detroit Business. Catch her plex. it’s a costly, trash-burning inciner- a CPA and General Motors alum- take on business news at 6:10 a.m. American Axle and its union issues have become emo- ator. In other cases, it’s the outdat- nus who went on to be CFO for the Mondays on the Paul W. Smith show tional and personal to many involved in this process. ed overhead structure. Detroit and U.S. Department of Education. Mar- on WJR AM 760 and in her blog at There must be room for compromise in a way that can other cities simply can’t afford the tin has worked around big public www.crainsdetroit.com/kramer. promises — and the structure — of budgets. E-mail her at [email protected]. keep a headquarters and bring in new manufacturing jobs. Good news from Dearborn, China Two good news stories worth noting: KEITH CRAIN First, Henry Ford Health System won the prestigious Malcolm Baldrige National Quality Award, the second Michigan hospital company to do so since the quality pro- As Nero fiddled, Rome burned gram added a health care category in 2002. Kalamazoo’s Methodist Hospital won in 2005. And before that, in a sepa- It is time for Detroit to It is time for the gover- It has become painfully obvious rate category, General Motors’ Cadillac division won in have an emergency fi- nor to act. over the past couple of weeks that it nancial manager. It is time for him to do is impossible to work our way out of 1990. This is such a hot pota- what he was elected to this mess without radical surgery. Second, as Tom Henderson reports on Page 1, Michigan to in Detroit that it has no do, politics aside. Whether the mayor is capable or “clean tech” companies have a shot at new customers in chance of anyone getting He must appoint an not is moot. The simple fact is that China through a deal forged by a handful of Southeast any traction on doing emergency manager for no mayor — no elected official — Michigan companies and organizations. what has to be done. the city of Detroit. He has the power to correct all the Between the politics, must do it sooner than problems facing this city. As part of the deal, a Chinese fund has set aside $30 mil- the unions and the lack later. It is up to Gov. Snyder to do what lion to help Michigan companies set up shop in a clean-tech of urgency by too many It will not be a very must be done. The time for kicking incubator in China and sell to the Chinese market. The op- people, it’s time to do popular act, but everyone the problem down the block for the portunities in pollution-choked China are huge. Now it’s up what has to be done. knows that it’s impossible for the next guy is over. to the local players involved in the project to raise $20 mil- It appears fairly obvious that the city of Detroit to right its own ship. The governor must make the mayor of Detroit cannot do what Someone from outside the Detroit tough call that will save our city. lion in matching cash and find the companies to invest in. has to be done. It is difficult enough system, who has been appointed by It is not an easy decision. It will be Reuters reported this month that while national politi- to run this city during good times, the governor, will have to come in difficult to find the right person to cians are talking tough about China, particularly its mon- which none of us has seen for to do what has to be done. do this extremely challenging task. etary policies, governors of many states are working hard decades. Trying to slog through the A financial manager will not be But it’s the governor’s job and to strengthen economic ties; U.S. exports to China rose to minefields is dangerous enough stuck with the burdens and con- one he simply cannot postpone. much less trying to do the restruc- tracts that are sinking our city into We cannot let Rome continue to $92 billion in 2010. turing necessary. a quagmire of financial ruin. burn.

6 TALK ON THE WEB From www.crainsdetroit.com from five boroughs. This would ances rather than change hospitals. Re: Idling Focus: Hope job programs Re: Downtown Grand Rapids Reader responses to stories and mean prevention of duplication SaveOurState Focus:Hope’s programs seem to be If these tax credits are “critical” blogs that appeared on Crain’s and leveling the playing field. a perfect fit (with the United Way), es- in getting important development website. Comments may be Re: Wanted: Engineers, IT workers edited for length and clarity. Saulius Simoliunas pecially since they can document projects under way, then why are Adding a “you’re wanted” state- outcomes. they being eliminated? Does Michi- Re: Blues, Beaumont battle ment to recruiting efforts can be AJ gan really want to add more Patients are the ones likely to be demonstrated by being supportive This is pure lunacy. If Focus: sprawl and destroy more valuable Re: Deficit plan stops short of solutions the biggest losers in this dispute. I and innovative with resources, Hope goes away, there is no hope for farmland while we let our urban It is high time to merge many work for a Beaumont specialist; policies and programs to induce Detroit. areas decay? cities into one greater Detroit City, many of our Blue Care Network pa- new hires to relocate. bart3259 BrewPubNate like New York City was created tients are choosing to change insur- ratchinson

Send your letters: Crain’s Detroit Business will consider for publication all signed letters to the editor that do not defame individuals or organizations. Email [email protected] 20111128-NEWS--0009-NAT-CCI-CD_-- 11/23/2011 12:06 PM Page 1

November 28, 2011 CRAIN’S DETROIT BUSINESS Page 9 OTHER VOICES: Give cancer pills equal insurance coverage

Imagine you’ve received fighting their disease. age. Traditional intravenous tal care benefits, with a negligible cess to all anti-cancer medications, a cancer diagnosis and the Unlike traditional (in- chemotherapy is administered at a co-pay. regardless of how they’re adminis- best — possibly only — travenous) chemothera- physician’s office or in a hospital For most patients, paying for tered, if the Legislature passes this treatment that will manage py, many of these new infusion clinic. Costs include the oral cancer drugs is simply impos- legislation. your disease has limited drugs only come as pills. necessary treatment as well as the sible. The psychological impact on This common-sense legislation side effects, lets you contin- Researchers estimate overhead to administer it. Pill patients dealing with a cancer di- would not mandate coverage of ue working, and can be ad- that between 25 percent chemotherapies are obtained by agnoses and huge out-of-pocket chemotherapy, but it would re- ministered at home. But it and 35 percent of promis- patients as prescription drugs costs are devastating. It’s time that quire that health plans that cover is financially out of reach ing anti-cancer drugs in from their oncologists and can be insurance plans support modern traditional chemotherapy ensure — because it’s a pill. development are oral and taken at home. cancer care. access to all chemotherapies, re- This occurs every day can be taken at home. We Many health insurance plans Michigan residents can contact gardless of how the medication is because many health plans Gerold Bepler should be celebrating require patients to pay extremely their state legislators and ask administered. do not cover oral anti-cancer med- these new advancements that are burdensome out-of-pocket costs them to pass the Oral Chemothera- Passing The Oral Chemotherapy ications at the same level as intra- changing the future of cancer med- for expensive oral anti-cancer py Access bills (Senate Bills 540 Access bills is the right thing to do. venous or infused anti-cancer icine. medications, while intravenous and 541 and House Bills 5132 and Gerold Bepler, M.D., Ph.D., is medications given in a doctor’s of- But these new drugs are out of anti-cancer medications, al- 5133.) Michigan can join 14 other president and CEO of the Barbara fice or hospital. reach for many patients, even if though still costly, are universal- states and the District of Columbia Ann Karmanos Cancer Institute in Cancer is increasingly being they have “good” insurance cover- ly covered under patients’ hospi- in ensuring that patients have ac- Detroit. treated with targeted medications. For several cancers, long-term dis- ease control is possible even when a cure is not. Decades of research into cancer cell biology have iden- tified pathways to cancer cell sur- vival and growth. The latest anti- cancer drugs are targeted chemicals that inhibit or alter these cellular pathways. A LOAN WITH Targeted drugs do not have the usual side effects, such as nausea and hair loss. Patients are able to work, care for their children and lead relatively normal lives while

CRAIN’S ACCEPTING M&A NOMINATIONS Involved in a merger or acquisition in 2011? You may be eligible for A CITIZENS BANK LOAN LETS YOU FOCUS ON THE FUTURE ... because the businesses the third annual Crain’s M&A Awards. Crain’s Detroit Business that will succeed tomorrow are the ones that make the right choices today. They are and the Detroit chapter of the Association for Corporate Growth led by individuals who see opportunity for growth and expansion, and take action with will honor companies and individuals in the following complete confidence. A loan from Citizens Bank will keep you moving forward and categories: Ⅲ Best Deal never wondering, “What could have been?” of the Year: Under $100 million and Get the loan you deserve now. To make an appointment with a Citizens Banker, call $100 million or 800-946-2264 or visit CITIZENSBANKING.COM/BUSINESS. more. Deals must have closed in 2011. Ⅲ Dealmaker of the Year/buyer-seller. Ⅲ Dealmaker of the Year/adviser: M&A experts, lenders, CPAs, consultants and attorneys, among others, are eligible. Ⅲ Lifetime Achievement: Senior- level executive who has been involved in significant transactions and has made a significant impact on the community. Applications are at www.crainsdetroit.com/nominate. The deadline is Jan. 23. Winners will be profiled in the March 26 issue of Crain’s and honored at an event in April. For questions concerning the nomination process, contact Executive Editor Cindy Goodaker at [email protected] or (313) 446-0460. For help in using the nomination form, contact Marketing Coordinator Jenny Griffith at [email protected] or (313) 446-6003. The Detroit chapter of ACG is part of a global association of professionals involved in corporate growth, development and mergers and acquisitions. The local chapter was formed in 1984. For more information, see chapters.acg.org/detroit. DBpageAD.qxp 11/16/2011 4:34 PM Page 1

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November 28, 2011 CRAIN’S DETROIT BUSINESS Page 11

REPORTER’S NOTEBOOK Extra

Sherri Welch writes about nonprofits and services. Call (313) 446-1694 or write [email protected] best-managed nonprofits Sherri Welch Caucus wants nonprofits heard Michigan’s nonprofit caucus plans to aggressively pursue a seat at the table Secondhand success for nonprofits in policy discussions. The caucus formed two years ago, but there’s been turnover with legislators leaving office. Goodwill tries on a cast-off idea and boosts money, mission “This is the first year they have an BY SHERRI WELCH ambitious and aggressive agenda,” CRAIN’S DETROIT BUSINESS said Christina Kuo, senior director of RUNNER-UP public policy and public affairs for the hen it came to identifying Detroit Michigan Nonprofit Association. “The a source of new revenue Rescue Mission: Bistro idea is that there needs to be a better W as other funding dropped serves up job dialogue between the nonprofit sector off, Goodwill Industries of Greater and government.” training, could Detroit looked back in order to become self- There are eight legislators in the move forward. funding, caucus: Sen. Mark Jansen, R-Gaines The Detroit-based organiza- Page 12 Township; Sen. John Proos, R-St. tion re-entered the Chad Audi Joseph; Sen. Tupac Hunter, D-Detroit; thrift store market Sen. Rebekah Warren, D-Ann Arbor; late last year, a Rep. Vicki Barnett, D-Farmington Hills; decade after exit- FINALISTS Rep. Amanda Price, R-Holland; Rep. Wayne Schmidt, R-Traverse City; and ing it — but this Mariners Inn: Peer mentoring Rep. Rashida Tlaib, D-Detroit. time with a more 2011 sustainable oper- saves money, With input from the MNA and the ating model. supports both Council of Michigan Foundations, the The successful deployment parties, caucus came up with three policy Page 12 areas that it plans to pursue: of the retail strategy, with an eye toward mission, was the Senate Bill 107, introduced in reason judges chose Goodwill February by Hunter, makes it clear David Sampson that if a nonprofit is spending money as Crain’s 2011 Best-Managed Warm to raise money to support its mission, Nonprofit Winner. Goodwill’s return to retail Training Center: it doesn’t have to pay sales taxes on Fee-based those expenses. brought the promise of not only new revenue, but new programs “Right now, it’s unclear that spread nonprofits are exempt from the jobs for its clients in a new in- knowledge, fill Michigan sales tax,” and some dustry. grant gaps, nonprofits have been paying tax on In its first year of operation, Page 12 Goodwill’s flagship store in items used for fundraising, Kuo said. Robert Chapman The bill passed the Senate Finance Canton Township has created Committee and awaits a vote of the 25 new jobs and an estimated full Senate before heading to the $800,000 in revenue this year to “We learned from our mis- House, Kuo said. support the nonprofit’s mis- takes of the past” and now po- Simplifying government sion of putting people back to sition stores in high-traffic, contracting for nonprofits that provide work. high-income areas where it’s services to states. Goodwill, operating on a convenient for donors, said President and CEO Lorna Ut- The Washington, D.C.-based Urban $25 million budget this year, is Institute ranked Michigan eighth in the projecting the store will top ley. GLENN TRIEST nation for having the most problems in $1 million in sales next year. “The donated goods model President and CEO Lorna Utley says Goodwill Industries of Greater Detroit failing to cover all the costs of ser- The new store is generating has been successful in many learned from its past when it decided to get back into the retail business with vices that nonprofits provide and for about $13.50 per store transac- other markets similar to metro this thrift shop in Canton Township. changing the terms of contracts tion, outpacing the national Detroit, and if done properly midstream, she said. average of $12.50. It generates here, it has (been) and will be tive industry (long the back- anapolis; Portland; Seattle; At- The caucus will seek policies that additional revenue from the sustainable.” bone of Goodwill revenue) and lanta; Grand Rapids; make sure governments honor the sale of unsold metals, glass and The Detroit-based nonprofit around other industries that Muskegon and Traverse City, contracts “in the same way they honor plastic by the pound. operated local thrift stores for employed its clients, as well as noting the successful strategy for-profit contracts,” Kuo said. With support from its board about 80 years before closing federal grant funding, the orga- of locating stores near donors. Ensuring nonprofits have a voice to expand its earned-revenue its last storefront in 2002 due to nization began planning its re- It looked to its parent, Good- at the policy discussion table — model, Goodwill plans to build low sales. It dabbled with sell- turn to retail. will Industries International, and before proposed policies become law. on the success of the first store, ing items online but didn’t pur- Goodwill benchmarked top to its Grand Rapids affiliate for The issue came to the fore, Kuo opening a second in the com- sue that for long. nonprofit thrift store chains insight and guidance in critical said, after several legislative changes ing year and eventually a When storm clouds began around the country, in Saraso- See Goodwill, Page 12 were made this year without seeking chain across the region. gathering around the automo- ta and Fort Myers, Fla.; Indi- input from the nonprofit sector about the impact they would have. Those included the elimination of the state charitable tax deductions for MEET THE JUDGES homeless shelters, food banks, public This year’s Crain’s Best-Managed Nonprofit Contest focused on successful revenue strategies for nonprofits that were not fundraising. The winner, institutions and community foundations Goodwill Industries of Greater Detroit (profiled above), will be honored at Crain’s Newsmaker of the Year lunch next year and will receive a cash prize of in April; 2012 budget cuts decreasing $1,500: $1,000 from Crain’s and $500 from Gary Dembs, president of the Non-Profit Personnel Network in Southfield. Dembs also served as a judge. funding for universities, food banks and The other judges were: homeless shelters in May; and the Paul Good, Karla Hall, Gerald Lindman, senior Richard Martin, Donna Murray- Mark Neithercut, principal, implementation of the 48-month community and manager, corporate lecturer and director for vice president, Brown, director of Neithercut Philanthropy Advisors, welfare roll-off this fall, she said. government contributions, and the Center for Nonprofit advancement, Metro Detroit Detroit and Chicago. Also a past Additionally, the state refers people relations manager, vice president and Management at Lutheran Social Partnership, executive at the Community secretary, DTE Energy Lawrence Technological Services of Michigan Nonprofit Foundation for Southeast Michigan to nonprofits for aid after cutting Detroit Zoological Foundation, Detroit. University, Southfield. Michigan, Detroit. Association. and The Kresge Foundation. funding in other human service areas, Society, Royal Oak. Kuo said. Crain’s thanks the judges for the hours spent evaluating applications, and thanks the nonprofit practice group at Plante & Moran PLLC in Southfield, led by partner Sue Perlin, for its financial analysis of the applicants. 20111128-NEWS--0012,0013-NAT-CCI-CD_-- 11/23/2011 10:38 AM Page 1

Page 12 CRAIN’S DETROIT BUSINESS November 28, 2011 Finance Extra: Best-Managed Nonprofits Rescue Mission re

BY SHERRI WELCH CRAIN’S DETROIT BUSINESS

etroit Rescue Mission’s Cor- nerstone Bistro in Highland D Park evolved from CEO Chad Audi’s idea that the mission’s clients need jobs and experience Runner-up in a marketable industry to keep them on the right path. Rather than detract from the homeless shelter’s mission, the restaurant launched in July 2010 provides culinary and hospitality GLENN TRIEST arts, restaurant service and man- CEO Chad Audi says the Detroit Rescue Mission’s Cornerstone Bistro agement training for shelter gives clients marketable job skills clients who have been off drugs and experience in the restaurant and alcohol for at least a year. business. The jobs created through the Mariners Inn’s peer mentoring p Mariners Inn is looking to a peer Michigan. coaching program to lower the Mariners, which reported total costs of supporting recovering ad- revenue of $2.4 million for fiscal dicts, enabling it 2010 and an excess of nearly to support more $300,000, secured a state designa- Finalist people. tion for its peer recovery/support The Detroit- service program in December 2010. based nonprofit, which operates in That designation makes it eligi- the Cass Corridor area under the ble for local, state and federal fund- direction of CEO David Sampson, ing for those services. launched its Peer Recovery Men- The program has since lever- toring Program in August on the aged a $3,500 grant from the MGM strength of a $30,000 grant from the Foundation and is helping Mariners Community Foundation for Southeast Inn free up revenue by tapping Warm Training’s fee-based programs s Warm Training Center tripled its training segments in 2009 to diver- revenue over the past three years sify its revenue in the face of de- by launching fee-based programs clining grant funding. aligned with its Its energy education segment mission. Revenue took on a large contract with DTE Finalist increased from Energy Co. to help people save mon- $838,000 in fiscal ey in their homes by providing ba- 2008 to $3.35 million in fiscal 2011. sic knowledge and customized rec- The Detroit-based agency ommendations for each customer’s launched its Social Business Ini- home and budget. Through the con- tiative across its energy education, tract, Warm was able to educate an green consulting and green jobs additional 24,200 consumers about

a sizzling Goodwill: Charity tries on a ■ From Page 11 areas such as site selection, mar- its new director of donated goods gift ket analysis, store design and best operations. practices for the business. It tapped its soft-skills employ- that keeps on To hold the costs of launching ment and training programs to the store to $500,000, it collaborat- ready 25 unemployed people for ed with numerous organizations, jobs with the new store in cus- giving. such as Warren-based Art Van Furni- tomer service, processing donated ture Inc., which donated a 26-foot items, stocking clothing racks and box truck to transport donated managing operations. It also estab- Get 10% back in bonus cards for gift card purchases of $250 or more. goods; Rogers, Minn.-based Arch- lished training positions at the way Marketing Services for donated new store for people going through warehouse space prior to the its job training programs. store’s opening; and Brighton- But re-entering resale was not based Riemenschneider Design Asso- without challenges. ciates, which donated interior de- Initially, there was some concern | | sign services to create an inviting among board members because of Troy 248.269.8424 755 W. Big Beaver Rd. atmosphere for the store, with Goodwill’s past failures in the busi- Available at participating locations & at ruthschris.com. Offer valid 11/14 –12/31/11. wood floors, fashionable lighting ness, and about shifting the non- and words that speak to Goodwill’s profit from one that primarily mission adorning the walls. trained people for jobs to one that Goodwill hired Jeffrey also would create jobs through the Ukrainec, former inventory con- new businesses, Utley said. trol manager for Ford Motor Co., as “Once the complete and strong 20111128-NEWS--0012,0013-NAT-CCI-CD_-- 11/23/2011 10:38 AM Page 2

November 28, 2011 CRAIN’S DETROIT BUSINESS Page 13 Finance Extra: Best-Managed Nonprofits n restaurant adds job training to clients’ plates

restaurant, its potential to become taining within two years. the Rescue Mission benchmarked a self-funded business and the The Rescue Mission reported nonprofits around the country op- boost it’s providing to Highland total revenue of $16.8 million for fis- erating the same sort of restau- Park made Detroit Rescue Mission cal 2010 and an excess of just over rant/culinary training program. Asset Based Lines of Credit the runner-up in Crain’s 2011 Best- $890,000 on its latest 990 tax form. It also sought technical advice Managed Nonprofit Contest. “If the bistro continues to allow from food-service vendors about & Factoring ranging from The Rescue Mission created us to place people there for training which equipment it would need up roughly 40 training positions and and continues to cover its costs front and what it could skip or $100,000 to $1,500,000. expanded from five days of service without us having to do fundrais- wait to invest in, Moore said. We focus on per week to six for the restaurant, ing, we will replicate it,” said Au- The restaurant and associated Lendable collateral capable companies which seats 175 and serves modest- rine Moore, vice president of devel- culinary arts training is the latest in consists of Accounts that are currently unable ly priced American fare. opment. a number of job training programs to obtain bank financing. Cornerstone operates on a bud- The mission opened a 17,000- that Detroit Rescue Mission has de- Receivable, Inventory, Understanding their business get of about $200,000, after an initial square-foot banquet hall in Detroit veloped for its clients with Wayne and Machinery & enables us to craft financing investment of just under $1 million on Veterans Day after a County Community College District. Equipment. packages to meet their needs. covered through fundraising and $1.3 million renovation. The loca- Other programs include video edit- reserves. It brought in more than tion seats 1,000 people and will be ing and production, Web design, $98,000 in its first three quarters of an additional training site for stu- medical assistant and home wiring. Main Office: Chicago Office: operation, covering 62 percent of dents in the Rescue Mission’s culi- Sherri Welch: (313) 446-1694, 1700 W. Big Beaver Rd., Ste. 235 225 W. Washington, Ste. 2200 its costs and nearing the goal of nary and hospitality arts program. [email protected]. Twitter: Troy, MI 48084 Chicago, IL 60660 having the business be self-sus- Before launching Cornerstone, @sherriwelch 248-733-0300 312-924-2827 www.greatlakesbusinesscredit.com g program saves money, supports both parties people who’ve recovered from through formal training that cov- who are ready to leave Mariners’ their addictions ers topics including ethics, cultur- inpatient program. to serve as re- al competency, crisis manage- The Peer Recovery Mentoring covery coaches, ment, personal safety and the Program decreases the cost of pro- supporting indi- stages of recovery. viding counseling to recovering viduals who are The opportunity to coach others addicts by 75 percent. reintegrating in their recovery and to earn mon- It costs $2,100 for Mariners to into the commu- ey provides further stabilization to provide one person with counsel- nity following Mariners Inn’s alumni, while help- ing, meals, transportation, support substance abuse ing newly recovering addicts to groups, prescriptions and shelter. treatment. ward off relapse. But a recovery coach can provide Sampson The recovery Mariners Inn began training outpatient support and services coaches, many about 10 coaches in August. They for just $520 per month. Mailing Services of them alumni of Mariners Inn, go will work one-on-one with people — Sherri Welch ms spread knowledge, fill grant gaps Warm how to lower their energy bills. correct rate and usage for water Warm’s green jobs training seg- and helps the customer obtain the Training ment helped to develop a weather- correct bill. To date, Warm has ization training facility at Focus: provided the service to seven non- Center Hope to provide fee-based green profit housing developers, said Ex- jobs training for local employers. ecutive Director Robert Chapman. tripled its And its green consulting busi- In addition to generating new ness began offering fee-based wa- revenue, the fee-based and con- Chapman revenue ter bill analysis to nonprofit hous- tract services let Warm maintain ing developers. The analysis consistent staff levels and continu- over the past three determines whether multi-hous- ally increase employee skills. ing developments are paying the — Sherri Welch years.

n a cast-off idea, boosts money, mission

business case was developed and Hills-based public relations firm could have 50 stores in the area,” supported, the (board) … provided Tanner Friedman to communicate Utley said. resources which helped to ensure with shoppers, donors, city plan- She hopes to see five to 10 of our success,” she said. ners and potential landlords about them built under her watch. The Goodwill’s brand proved to be a the improved resale experience stores build on Goodwill’s experi- double-edged sword as it sought to through social media and other ence with other revenue-generat- open its first store. platforms. ing enterprises, such as its long- While Goodwill is a highly rec- Goodwill eventually locked in time tier-one supplier relationship ognizable nonprofit, its past thrift the Canton site, convincing the with automakers, its Ben & Jerry’s store operations had left a reputa- community the store would bring Scoop Shop in the Compuware tion as an operator of dirty, dimly customers to other businesses. Building in Detroit and its Green lit stores that featured old, though “We’ll bring in over 100,000 people Works Inc. industrial recycling very affordable, used merchandise every year to the store, whether company. and clothing, the nonprofit said. donors or shoppers,” Utley said. As with all of those endeavors, Those impressions led to chal- With the automakers strong Goodwill developed goals around lenges in securing a site for the again, it’s a good time to be in the the number of clients it would help first store, as city planners and business of donated goods, she and job placements it would create property owners voiced concerns said. Gently used and new name- with the new store, in an effort to that a traditional resale store did brand items are sought after by balance the social return with the not align with their desired image “treasure hunters,” yet affordable financial return, Utley said. for their community and might for people who can’t pay retail, she Sherri Welch: (313) 446-1694, hurt nearby businesses. said. [email protected]. Twitter: Goodwill tapped Farmington “Demographics indicate we @sherriwelch 20111128-NEWS--0014-NAT-CCI-CD_-- 11/23/2011 11:45 AM Page 1

Page 14 CRAIN’S DETROIT BUSINESS November 28, 2011 ShowShow Them Them What What YouYou StandStand For For Making healthy progress

BBB Accreditation is a commitment Adams moves on from days with Kilpatrick BY NANCY KAFFER to fairness and honesty that lets CRAIN’S DETROIT BUSINESS consumers know you are a business Everybody thinks that Anthony Adams’ office at “ they can trust - a business that Lakeshore Healthcare Group is a long somehow or another, I way from the spacious mayoral honors its promises and embodies wing at the Coleman A. Young Mu- nicipal Center. have these secrets. There confidence they deserve. Detroit’s former deputy mayor, who served under ex-Mayor are no secrets. Your customers start with Kwame Kilpatrick, works in a tiny ” bbb.org. office packed with high-end tech- Anthony Adams, nology on an upper floor at Lakeshore Healthcare Group Shouldn’t you? Lakeshore Skilled Nursing and Spe- cialty Care on Woodward Avenue north of Grand Boulevard. For- merly Little Rock Baptist Charity Care EXPANDING Center, it’s the first Lakeshore acquisition in a BRENDAN ROSS builds up: fleet of nursing Nursing homes Lakeshore And he said he doesn’t expect to Center expansion and bringing homes a hopes to acquire. appear in court in the future. Southwest Airlines to City Airport. good fit with Adams joined “I would say that clearly every- Along the way, he fell in love with construction Lakeshore in 2008, body who’s called to testify must Detroit. He left city government in background, Page 15 shortly after leav- testify, and that I don’t expect that 1991, first taking a job at Dykema ing Detroit city I’ll be a major witness in any up- Gossett PLLC and then starting his ® government. coming procedure,” he said. own firm. He was serving as gener- Start With Trust Adams says he was “unceremoni- Until recently, Adams was al counsel to the school board ously dumped” by City Council- everywhere in Detroit political cir- when Kilpatrick called. man Ken Cockrel Jr., who served cles: Kilpatrick’s administration, It’s sometimes difficult to recon- Better Business Bureau as interim mayor after Kilpatrick the Detroit Public Schools board, cile Adams’ persona — the intelli- Serving Eastern Michigan and the Upper Peninsula stepped down. the Detroit Public Library gent, experienced man — with ig- Lakeshore saw the chance to Commission. He sits on the board of norance of Kilpatrick’s goings-on. Call 248-223-9400 to learn more snag Adams, and his self-described Detroit Renewable Energy LLC, which But, Adams said, “By its very “tremendous” contact base, as the owns the Detroit incinerator. nature, a conspiracy is something or go to bbb.org company decided to expand into Adams, now 55, joined the Kil- people keep to themselves. I was nursing homes. Now, he’s finding patrick administration in 2005. focused on how we move the city that the skills he honed in govern- Kilpatrick, 31 when elected, ran forward, how do we deal with our ment — not to mention those con- into trouble in his first term, and budget issues, how do we change tacts — have made him valuable in Adams, a political veteran, said he work rules and make things much the private sector. was approached by members of more competitive for us?” He started at Lakeshore as a Detroit’s business community and He also said he wasn’t truly a consultant in 2008 and joined the asked to join Kilpatrick’s team, part of the former mayor’s inner Banking Experience company full time in 2009. Adams’ with the idea of putting an older, circle, an assertion pollster Steve first task was to find a nursing more experienced hand on the Mitchell backs up. home prospect for the company. wheel. Then Kilpatrick called. “Having served as Kwame’s In Your Corner. “Anthony Adams brings a great “He indicated that he was inter- pollster for six years, seven years, deal of experience in project execu- ested in bringing someone into his I had no idea what was going on tion and community awareness, administration who ‘had some down there, absolutely none, and I based on his vast knowledge gray hair,’ ” Adams said. “To say have been around the track gained while working with the De- that it was a very exciting time enough times to sense when troit Public Schools and under two would be an understatement.” there’s something going on,” said mayors with the city of Detroit,” The Super Bowl and baseball’s Mitchell, of Lansing-based Mitchell said Thomas Hardiman Sr., a part- All-Star game were coming, and Research and Communications. ner in Lakeshore Healthcare the economy was on the upswing. “When I hear the accusations Group. “He understands the im- The city faced major challenges, made against the former mayor portance of bringing parties to- Adams said, “But I felt like we had and his staff, I’m stunned because I gether for a common good while a program to move things forward. know all of these people — knew minimizing costs.” All of that changed in 2008,” when them, I thought, fairly well. So I But there’s more to the story. the text message scandal broke. By think it’s likely Anthony Adams Lakeshore Healthcare is an arm of the time Kilpatrick stepped down didn’t have any idea either.” Lakeshore Engineering, otherwise in fall 2008, Adams had been Mitchell said Kilpatrick insid- known as “Company L,” one of moved to the Detroit Water and Sew- ers who have been charged with several listed in an indictment al- erage Department. criminal activity tended to be leging that Kilpatrick and his asso- He was fired by Cockrel, who younger, from the tight inner cir- ciates pressured businesses with served as interim mayor from the cle comprising college and high city water and sewer contracts to time Kilpatrick stepped down un- school friends — like Christine pay companies owned by Bobby til the special election that seated Beatty, former chief of staff and Ferguson, a Kilpatrick crony, to Mayor Dave Bing. mistress who served time for per- subcontract, even when Fergu- Adams said he read in the news- jury-related charges, or DeDan son’s companies did no work. Or to paper that he’d been fired. and Kandia Milton, childhood make cash payments to Ferguson, Cockrel said he didn’t single friends who are both in prison af- with Kilpatrick’s clout as mayor Adams out. ter pleading guilty to bribery used as leverage. “I felt it was important to clean charges last year. Kimberly A. Baber The U.S. attorney’s office has the slate, and he was one of them, Former aide Derrick Miller, an- said that some companies are con- but beyond that I don’t have much other long-time friend, pleaded sidered victims while others have of a feel for him,” Cockrel said. guilty to corruption and tax offens- been granted immunity, but didn’t Adams got his start in politics es in September. discuss specific companies. under former Detroit Mayor Cole- “If you’re perceived as the hon- Adams testified before the grand man Young. After graduating from est guy, people are not going to jury that indicted Kilpatrick but is Georgetown University Law Center, bring you in on what’s going on,” one of the only members of Kil- Adams, an Ohio native, was in pri- Mitchell said. patrick’s inner circle to emerge vate practice when Young tapped Adams is a straight shooter, said from the federal corruption probe him for a job as executive assistant. Detroit political consultant unscathed. Adams has not been It was a “tremendous” experi- Adolph Mongo. I Metro Detroit I Grand Rapids I Kalamazoo I Grand Haven I Lansing named in any indictments, hasn’t ence, said Adams, who worked on been charged with any crimes. projects as varied as the first Cobo See Next Page 20111128-NEWS--0014,0015-NAT-CCI-CD_-- 11/23/2011 10:41 AM Page 2

November 28, 2011 CRAIN’S DETROIT BUSINESS Page 15 Nursing home turnarounds key to Lakeshore growth

BY JAY GREENE Lakeshore’s strategy to renovate CRAIN’S DETROIT BUSINESS financially struggling nursing homes into top-quality facilities in Lakeshore Healthcare Group is in Detroit has a good chance to in- expansion mode. crease the number of Medicare and President Anthony Adams said private-pay patients, said LaLumia. the goal is to grow the $9 million- “Renovating homes makes it annual-revenue company into a more likely to appeal to people $100 million-annual business with coming in for shorter-term rehab up to six nursing homes in Detroit. under Medicare, like joint replace- It also wants to expand its pharma- ments, congestive heart failure cy and home health business line. and stroke,” LaLumia said. The company went into the busi- But a danger is unfolding in the ness in late 2009, when it acquired nursing home industry, said LaLu- its first nursing home, Little Rock mia, because Medicare has been Baptist Charity Care Center, which cutting rates the past two years. had been in Chapter 11 bankruptcy On Oct. 1, Medicare cut nursing protection. The 110-bed facility at home rates an average 11.1 per- 9146 Woodward Ave., which gener- cent, he said. ates $7.5 million in annual revenue, Adams said state and federal is now called Lakeshore Healthcare funding is always a challenge for Skilled Nursing and Specialty Care. the nursing home industry. He Lakeshore Healthcare now also in- said Lakeshore can make its model cludes Lakeshore Pharmacy, a direct work because of the company’s effi- care pharmacy with annual rev- ciencies and growth potential, with enue of about $1 million; and large numbers of baby boomers re- Lakeshore Home Health Agency, tiring over the next two decades. which serves about 100 patients, a This fall, Lakeshore also hopes 30 percent increase from last year, to complete the purchase of anoth- with annual revenue of $500,000. er Detroit nursing home, which he Adams said Lakeshore’s experi- declined to name, and the former ence in construction helps it rehab Southwest Detroit Hospital for the nursing homes. conversion to a nursing home. “We acquired Little Rock in 2009. Adams said Lakeshore plans to It had gone through a number of spend about $17 million to convert owners over the years and needed the hospital into a skilled nursing a lot of renovations. It was tired,” home with 110 to 200 beds. Adams said. “We pumped over If the deal is struck, Adams said $1 million, upgrading it, buying one option is to move the 110 beds new furniture, security cameras.” from Lakeshore Healthcare nurs- David LaLumia, CEO of Health ing home to the hospital. The ex- Care Association of Michigan, a nurs- isting nursing home would be con- ing and rehabilitation home trade verted into an alternative living group, said the challenge for nurs- facility for military veterans. ing homes in Detroit is finding the “If we want to add more beds, we right mix of Medicaid, Medicare need a certificate of need,” he said. and private-pay patients. Lakeshore Healthcare’s nursing “More than 80 percent of pa- home received four out of five tients in nursing homes are Medic- stars for quality but only one out of aid or Medicare beneficiaries, and five for staffing, according to Nurs- the Medicaid rate doesn’t cover ing Home Compare, Medicare’s vol- costs for most people,” LaLumia untary quality reporting system. said. “Most operators offset losses Jay Greene: (313) 446-0325, on Medicaid with Medicare reim- [email protected]. Twitter: bursement.” @jaybgreene

From Previous Page to accomplish things so people in “Anthony was a good person charge know the worth of what that (Kilpatrick) needed to have, you have.” but unfortunately the former may- Adams said he thinks he was or, he never listened to good ad- better prepared to survive the Kil- vice,” Mongo said. “He knows how patrick administration because of to play politics, but he has experi- his experience. ence, and that’s what was lacking “I would think my transition in the Kilpatrick administration. was much easier than most people … Mr. Kilpatrick understood that who transitioned out of the Kil- he needed to have folks like Antho- patrick administration, because I ny, but in the end (he) never lis- came to the administration with tened to them.” my own identity,” he said. “I had Mongo said he’s not surprised been an established person in the Adams has made the transition community, so my transition was from politics to business. much easier. I still am an attorney Ditto Mitchell. with, I think, a very good reputa- “If you look at when political tion, where it counts … but occa- people go into the private sector, sionally you still have to deal with they normally do very well be- speculation here and there about cause the talents that are required ‘were you involved with this, were for being in politics adapt them- you involved in that?’ But that just selves very well to business,” he goes with the territory. said. “Everyone thinks I have secrets. “You have to have a global per- Everybody thinks that somehow spective, you have to be able to del- or another, I have these secrets. egate, you have to have the politi- There are no secrets.” cal knowledge to know — within Nancy Kaffer: (313) 446-0412, the corporation — where the pow- [email protected]. Twitter: er is, how to get to the power, how @nancykaffer 20111128-NEWS--0016-NAT-CCI-CD_-- 11/23/2011 10:42 AM Page 1

Page 16 CRAIN’S DETROIT BUSINESS November 28, 2011

CALENDAR WEDNESDAY cial Revitalization. With Pamela student tickets. Contact: (313) 872-7850; THURSDAY Smith, certification program manag- website: www.thedshow.org. MEET CRAIN’S WOMEN TO NOV. 30 er, Women’s Business Enterprise DEC. 1 Council-Great Lakes. Cadillac Place, WATCH DEC. 7 IN BIRMINGHAM Entrepreneur Roundtable: Leveraging Detroit. Free. Contact: (313) 255-1020; Detroit Economic Club. 11:30 a.m.-1:30 The European Union Financial Crisis Your Certifications to Win More Busi- email: [email protected]; website: p.m. With Jim Gibbons, president and and the Effect on U.S. Businesses. Crain’s Detroit Business and the 7:30-9:30 a.m. KPMG and the Universi- ness with Government Entities. 10 www.miceed.org. CEO, Goodwill Industries Internation- Inforum Center for Leadership ty of Michigan-Dearborn. With Ilir a.m.-1 p.m. Center for Empowerment al Inc. Westin Book Cadillac, Detroit. present Inner Circle: Women to Miteza, associate professor of econom- and Economic Development; Chase $45 DEC members, $55 guests of mem- Watch, 5:30-8 p.m. Dec. 7 at the The D Show. 6-10 p.m. Adcraft Club of ics, UM-Dearborn; Jack DiFranco, Townsend Hotel, Birmingham. Bank; MDOT; Small Business Detroit Detroit. Detroit’s creative community bers, $75 nonmembers. Contact: (313) managing director, KPMG Corporate Microloan Program; and city of De- celebrates its work. Max M. Fisher 963-8547; email: [email protected]; Finance LLC; John Peetz, vice presi- The event will honor the 2011 troit Office of Neighborhood Commer- Music Center, Detroit. $100, $35 for website: www.econclub.org. dent, treasury, Beaumont Health Sys- Crain’s Women to Watch, highlighted in the Sept. 19 issue. Honorees scheduled to attend include: Joyce Jenereaux, president, Detroit Media Partnership; Linda Marshall, president, OnStar LLC; and Barbara Yolles, FULL SERVICE ASSEMBLY executive vice president and TOOLING SYSTEMS chief growth officer, North America, McCann CONTINGENT WORKFORCE Erickson. Yolles This evening will help attendees find inspiration SERVICES and insights to help them reach the next career level through an intimate conversation with a top woman executive. Tickets are $55 for Inforum members and $65 for 29401 Stephenson Highway nonmembers. Corporate Investor Madison Heights, MI 48071 gratis tickets are not available; tickets for this event may not be 248 548 6010 combined with any other purchase. www.gonzalez-group.com For more information, call (877) 633-3500, or visit www.inforummichigan.org. AEROSPACE | DEFENSE | AUTOMOTIVE tem; Steve Davis, senior vice presi- dent, Comerica Bank; Andrew Cabble, partner, KPMG LLP; and Brian Patrick Green, Czarnecki chaired pro- fessor, UM-Dearborn College of Busi- ness. UM-Dearborn College of Busi- ness. Free. Contact: (313) 230-3333; Make an Executive Decision. email: [email protected]. FRIDAY Choose Sommers Schwartz DEC. 2 Fiesta Hispana Gala. 5 p.m.-midnight. Michigan Hispanic Chamber of Com- To Protect your career merce; Chrysler LLC. With Fred Diaz, president and CEO, Chrysler de Mexi- co and the Ram Truck brand. The and your Family Henry, Dearborn. $200, RSVP by Nov. 28. Contact: (248) 792-2763.

Reigniting Retail. 11 a.m.-5 p.m. Dec. Decisions… decisions. 2-3. Farbman Group. A place for local retailers, designers and artists to showcase their products. Fisher Choosing the right law firm to handle your Building, Detroit. Free. Contact: (248) employment law dispute can be difficult. Fortunately, 351-4381; email: [email protected]; website: www.farbman.com. we at Sommers Schwartz can make your choice much easier. Why? Simple. We offer you our vast experience with both business and individual cases, handle a diverse clientele, resolve cases quickly, customize fee arrangements and offer COMING EVENTS Detroit Economic Club. 11:30 a.m.-1:30 you the clout of a big law firm combined with highly p.m. Dec. 8. With Doug DeVos, presi- personalized service. dent, Amway Corp. Westin Book Cadillac, Detroit. $45 DEC members, So make an executive decision. Choose Sommers Schwartz $55 guests of members, $75 nonmem- bers. Contact: (313) 963-8547; email: for all your employment law needs. [email protected]; website: www. econclub.org.

Economic Development Opportunities Using Supply Chain Innovations. 8- 11:30 a.m. Dec. 8. Automation Alley; Michigan State University. With David Closs, John McConnell chaired professor of business administration and chairperson of the department of supply chain management, Michigan State University; and Frederick Ro- yhd/s ^WZd/KE /^Whd^ ͻ /^Z/D/Ed/KE ͻ ,Z^^DEd ͻ KsZd/D >/D^ ͻ t,/^d>ͳ>KtZ dammer, professor of practice, direc- tor of the center for leadership of the www.sommerspc.com | 248-415-2234 | 1-888-884-3878 | 2000 Town Center, Suite 900, Southfield, MI 48075 digital enterprise, Michigan State University. Automation Alley, Troy. $20 members, $40 nonmembers. Con- tact: (248) 457-3284; email: [email protected]; website: www.automationalley.com. 20111128-NEWS--0017-NAT-CCI-CD_-- 11/23/2011 12:02 PM Page 1

November 28, 2011 CRAIN’S DETROIT BUSINESS Page 17

CRAIN'S LIST: LARGEST MOBILE APP DEVELOPERS Ranked by number of aggregate downloads 2011

Number of applications developed per platform

Company Number of Address, city aggregate Phone; website downloads of Top local executive mobile apps Rank Aug. 2011Android BlackBerry iPad iPhone Other Notable applications Notable clients Jacobs Media/jacAPPS Paul Jacobs 11,000,000 135 37 310 310 NA Ann Arbor Art Fairs, Oregon Public Ann Arbor Art Fairs, Nike, Detroit International Jazz 29777 Telegraph Road, No. 2650, Southfield vice president and general Broadcasting Extra, Michigan Radio, 107.9 The Festival, "Car Talk," Steve Dahl Radio Show 1. 48034 manager End (248) 353-9030; www.jacapps.com JEWL Solutions LLC Bryan Jager 4,926,275 NA NA NA NA NA Wasted Time, Netflix Notifier The ApApp 7962 Jordan Court, Superior Twp. 48198 owner 2. (313) 492-6275; www.jewlsolutions.com

Marvel Apps LLC Michael Antaran 1,900,000 0 0 12 12 0 Fandora's Box Fantasy Football app 2008, I Coleman Lanterns, Coleman Camping Tales, the original 25900 Pembroke, Huntington Woods 48070 CEO Love College Football 2008, iSwingSpeed, Crock-Pot 3. (248) 980-7858; www.marvelapps.com iMarksman, 2008 Summer Games, Call Event Scheduler (user experience design)

Detroit Labs Paul Glomski 1,002,347 2 NA 5 15 4 Fathead, Augmented Reality app for confidential Stryker Medical, Quicken Loans, Fathead, Learning A-Z, a 1555 Broadway St., Detroit 48226 co-founder and CEO client with over a million downloads publicly traded food service company 4. (313) 444-3063; www.detroitlabs.com

Pillar Mobile Gary Gentry 1,000,000 5 0 5 5 5 Mercedes Benz Financial, Onstar Onstar, Gordon Food Service, Mercedes Benz Financial 5180 Washakie Trail, Brighton 48116 chairman 5. (888) 374-5527; www.pillartechnology.com

Vectorform Kurt Steckling and Jason 550,000 NA NA NA NA NA Autoshow presenter for Volkswagen, training American Express, Associated Press, Microsoft, Nokia, 3905 Rochester Road, Royal Oak 48009 Vazzano event management app for Raytheon, Texas Volkswagen 6. (248) 777-7777; www.vectorform.com presidents Health Resources Neurological Rehab app for iPad, Surface DJ for iPhone

Blue Circle Technologies Jerry Brady 500,000 6 2 2 2 0 NA Mark/Space Inc., Mobatech LLC, Hubbard Industrial 7882 Winans Lake Road, Brighton 48116 principal Supply, Equazi Enterprises LLC 7. (810) 599-1616; www.bluecircletech.com

Fourstream USA Buzz Brown 500,000 95 95 95 95 NA SEMA Show, Las Vegas BikeFest, Radisson Hotels, ConVexx, Munetrix, Innovation Cafe, Las 3169 Pridham St., Keego Harbor 48320 CEO Innovation Cafe, Timber Trace Golf Club Vegas BikeFest 7. (248) 683-8381; www.fourstream.com

Arbormoon Software Inc. Dave Koziol 300,000 3 2 4 19 NA XanEdu iPad app, WunderRadio XanEdu Publishing, Weather Underground, Society of 212 S. Fourth Ave, Suite D, Ann Arbor 48104 president iPhone/iPad, KNBR iPhone/iPad Manufacturing Engineers 9. (734) 996-5654; www.arbormoon.com

Relium Corp. Eric Shapiro 250,000 0 1 5 5 12 BatterySense, ActionFit, WunderMap for Apple, Microsoft, Philips, Weather Underground, 3185 Appleridge Drive, Ann Arbor 48103 president iOS Scholastic 10. (734) 663-0706; www.relium.com

Motor City Software LLC Chris Parent 200,000 5 NA NA 2 40 Nagios client, drag racing app (not game) North American Bancard, TechAFX, BBNova Racing 3026 N. Connecticut, Royal Oak 48073 CEO 11. (248) 670-0880; www.motorcitysoftware.com

YQ Labs Venky Mallempudi 200,000 27 12 12 30 23 Health care and insurance domain NA 834 S. Lapeer Road, Suite A, Oxford 48371 CFO niche projects for enterprise customers 11. (248) 928-1248; www.yqlabs.com

Twisted Castle LLC Jeffrey Sibbold and Bryan 190,000 4 0 0 0 0 RanDinger, My Quicken Loans Mobile Quicken Loans, Real Sports Labs LLC, Bnter.com 407 W. Keech Ave., Ann Arbor 48103 Kelly 13. (734) 363-8737; www.twistedcastle.com co-presidents

Breadcrumb LLC Mark Ratliff 100,000 5 5 5 5 5 Alzheimer's and dementia locator, family CNN, Chevron, Chrysler, Koch Industries, Georgia Pacific 1517 N. Main St., Royal Oak president locator, pet locator, global workforce 14. 48067 locator, executive security (313) 344-7217; www.breadcrumbgps.com Five Lakes Studio Tod Cunningham 100,000 0 0 6 6 0 Kento Working with ALS of Ann Arbor to use Kento to help 29491 Emelbe Drive, New Hudson 48165 founder promote an event next year 14. (313) 399-5551; www.fivelakesstudio.com

Future Help Designs Christian Marcillo 100,000 0 0 19 19 0 iBAA, Keep In Mind, Go JUGGLE and Enterprise Compuware, The Clik Group, Kimberly Consulting, Big 3 91 N. Saginaw, Suite 105, Pontiac 48446 CEO Solutions for Clients automotive 14. (248) 289-0715; www.FutureHelpDesigns.com

3lb Games Robin Moulder-McComb 78,000 0 0 8 8 0 Dragon Peak, Kidwords, Kiki language learning NA 1020 Maryland St., Grosse Pointe 48230 CEO, producer, and games 17. (313) 377-0428; www.3lbgames.com developer

Breeze Design Studio Rukmal Fernando 65,000 8 2 2 10 NA Mackinac Policy Conference app, NAIAS Detroit Detroit Regional Chamber, Big Rock Brewery, D'Amato's 2175 Cole St., Birmingham 48009 president, founder and Auto Show, Jalappeno mobile app development Restaurant, Dooley's Irish Pub, On The Rocks Bar and 18. (248) 566-2464; www.breezestudio.com and CEO platform Grille, Go Cycle Studios Urbane Apartments, Global Prep www.jalappeno.com Academy Gravity Works Design and Amelia Marschall 60,000 NA NA NA NA NA Signing Savvy, MHSAA Mobile Score Center, Signing Savvy, Michigan High School Athletic Association Development creative director Truscott Rossman Lobby Guide 19. 1132 N. Washington, Lansing 48906 (517) 481-2218; www.gravityworksdesign.com GoPoint Technology Inc. Brennan Hamilton 55,000 0 0 3 3 0 NA In-house 2870 Technology Drive, president and CEO 20. Rochester Hills 48309 (248) 232-3078; www.gopointtech.com

This list of mobile application developers is an approximate compilation of the most significant companies in Wayne, Oakland, Macomb, Livingston or Washtenaw counties. It is not a complete listing but the most comprehensive available. Unless otherwise noted, information was provided by the companies. Companies with headquarters elsewhere are listed with the address and top executive of their main Detroit-area office. Actual download figures may vary. NA = not available. List was compiled in collaboration with the Mobile Technology Association of Michigan. LIST RESEARCHED BY BRIANNA REILLY DBpageAD.qxp 11/21/2011 1:18 PM Page 1 20111128-NEWS--0019-NAT-CCI-CD_-- 11/23/2011 11:32 AM Page 1

November 28, 2011 CRAIN’S DETROIT BUSINESS Page 19

Crain’s Job Front Visit www.crainsdetroit.com /jobfront to search for jobs, post a résumé or find talent. PEOPLE Dana Tilley to vice president of re- The Henry Hotel, Dearborn. MARKETING Amy Hellebuyck to account manager, search, development and innovation, Identity Marketing & Public Relations IN THE SPOTLIGHT Cabra’Ann Perreault to associate art Little Caesar Enterprises Inc., Detroit, LLC, Bingham Farms, from communi- INFORMATION TECHNOLOGY director, Identity Marketing & Public Detroit-based Gleaners Community from director, Domino’s Pizza Inc., cations specialist, Freudenberg-NOK, Relations LLC, Bingham Farms, from Food Bank of Southeastern Ann Arbor. Sally Brandtneris to CFO, Stefanini Plymouth. art director, Impatto Custom Market- Michigan, one of the largest food TechTeam, Southfield, from director ing Inc., Southfield. banks in the country, has named HOSPITALITY of finance and chief accounting offi- NONPROFITS John Dennison cer, Orlans Associates PC, Troy. Garrett Mullins to executive vice presi- Rich Felton to director of sales and Douglas Conley to director of land- CFO. dent of partner and customer services, marketing for the Sheraton Detroit Jack Wilson to virtualization practice Entertainment Promotions, Troy, from scapes, Edsel & Eleanor Ford House, Dennison, 55, Metro Airport hotel, Starwood Hotels manager, Creative Breakthroughs vice president, sales and business de- Grosse Pointe Shores, from director of had been vice & Resorts Worldwide Inc., Romulus, Inc., Troy, from principal, Virtual Sa- velopment, Kantar Media Compete, the gardens, Southern Illinois Univer- president and from senior sales account executive, vant LLC, Clarkston. Atlanta, Ga. sity Edwardsville, Edwardsville, Ill. general manager of Double Envelope Co. in Angola, Ind. He succeeds Dennison former finance Vice President Tom Murphy, who retired. Dennison earned a Bachelor of Science degree in business administration with a concentration in accounting from Michigan Technological University in Houghton. ARCHITECTURE Tim Andres to senior vice president, Hobbs + Black Associates Inc., Ann Arbor, from vice president. Also, Ben Jessup to marketing manager, from marketing coordinator. CONSTRUCTION Nicholas Mendenhall to business de- Northville, MI Scottsdale, AZ Indianapolis, IN Dallas, TX North Richland Hills, TX Southfi eld, MI velopment manager, Schonsheck Inc., $150,000,000 $1,334,500 $100,000,000 $50,000,000 $6,150,000 $115,000,000 Wixom, from manufacturers repre- Revolver SBA 504 Real Estate Loan Revolver Asset-Based Senior Equipment Loan Revolver sentative, MWA Commercial Roofing Term Financing Secured Credit Facility Line of Credit Term Financing Solutions, Midland. Foreign Exchange Jacqueline Peruski to manager of mar- Sole Lead Arranger Sole Lead & Sole Lead Arranger Sole Bookrunner Lender Administrative Agent Sole Lender Sole Lender Sole Bookrunner keting and interior design, Interior Partnership Group Inc., Clawson, from project engineer. Also, Dale Moeller to senior project engineer, from project manager, CM Partners Architects LLC, Detroit. Royal Oak, MI Mason, OH Kansas City, MO Southfi eld, MI St. Louis, MO Grand Rapids, MI FINANCE $425,000,000 $155,000,000 $810,000 $20,000,000 $650,000 $225,000,000 Christine Farah Revolver Senior Secured Credit Facilities Equipment & Revolver Term Loan Revolver Term B Facility Revolver Working Capital Equipment Financing Term Financing Lebold to COO, Term Loan Treasury Management LSG Insurance Left Lead Arranger Left Lead Arranger Partners, Bloom- Sole Bookrunner Left Joint Lead Arranger Sole Bank Sole Lender Sole Bank Sole Bookrunner field Hills, from vice president of middle and small group sales, Blue Cross Blue Shield of Michigan, De- Powering business growth in the Midwest and Southwest troit. Brett Bernard to Lebold Michigan market with financial strength and commitment. president, Bank of America, Troy, re- maining market executive in charge of Merrill Lynch Wealth Manage- We’re committed to the Midwest and Southwest regions. That’s why we’re helping companies here navigate changing ment’s Mideast territory. market cycles and create new opportunities for success. Our client managers work with you to understand your business Tom Nestor to managing direc- and seamlessly deliver customized solutions based on your unique needs. Let us help increase your fi nancial fl exibility tor, regional com- munity banking and put your growth plans in motion. managers South- east region, Talmer Bank and Trust, Nestor Troy, from con- Call 1.313.221.9394 or visit bankofamerica.com/commercialbanking sumer market ex- ecutive, Bank of America, Troy. Also, Renee Allen to treasury man- agement product manager, from treasury manage- ment sales special- ist supervisor, Cit- izens Bank, Troy. Allen “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 FOOD 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 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 Don VanTiem to director of operations, 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 Atlas Wholesale Food Co., Detroit, from president, Hoban Foods Inc., Detroit. 20111128-NEWS--0020-NAT-CCI-CD_-- 11/23/2011 10:45 AM Page 1

Page 20 CRAIN’S DETROIT BUSINESS November 28, 2011

BUSINESS DIARY ACQUISITIONS blue chip, natural-gas utilities in the CONTRACTS tomers conserve energy. Website: metro Detroit, Ann Arbor and East Southeast. www.dteenergy.com. Lansing. Crestmark Transportation Services, a Focus: Hope, Detroit, and Android In- division of Crestmark Bank, Troy, ac- dustries LLC, Auburn Hills, signed an The shopping mall Village of quired the receivable financing port- CALL FOR NOMINATIONS agreement in which Android is leas- Rochester Hills launched a new web- STARTUPS folio of Comdata Corp., Brentwood, The Northville Art House, Northville, is ing about 70,000 square feet from Fo- site: thevorh.com. Steiny’s Tavern opened at 55161 Shelby Tenn. accepting short films that are Michi- cus: Hope for assembling headliners Road, Shelby Township. Telephone: and suspension modules for the , Plymouth, along gan-made or Michigan-themed for its OTHER (248) 453-5376. Website: www.steinys True North Equity Chevrolet Volt. with Civic Partners, Chicago, Ill., ac- Reel Michigan Film Festival. Deadline The Michigan Film Office, Lansing, tavern.com. , Pontiac, quired a controlling interest in South- for nominations is April 23. Telephone: National Enclosure Co. LLC announced that the feature film Cell Fix Plus, a cellphone repair store, was contracted by Ohio State Universi- east Connections LLC, Conyers, Ga., a (248) 344-0497. Website: “Gametime” has been approved for a at 1340 Walton Blvd., Suite A, ty, Columbus, to design and install the www.ci.northville.mi.us/community/ provider of outsourced maintenance, curtain-wall facade for the new cancer film incentive of $498,868 from the Rochester Hills. Telephone: (248) 413- repair and installation services for artscommission/artsandacts.asp. and critical care facility. state. The film is expected to shoot in 6300. Cleary University, Howell, signed an articulation agreement with Concor- dia University, Ann Arbor, enabling Concordia students to take in-class and online courses at Cleary. TK Holdings Inc., Auburn Hills, a sub- sidiary of Takata Corp., Japan, has been contracted by the National High- way Traffic Safety Administration, Washington, D.C., to develop an auto- motive application for blood alcohol testing. TK will use infrared technolo- gy developed by N.M.-based TruTouch Technologies Inc. EXPANSIONS CTA Acoustics Inc., Madison Heights, an automotive supplier, leased a facility in Orland, Ind., to expand pro- duction capability. Website: www.ctaacoustics.com. Hydro Helper, Detroit, opened a store at 6445 Canton Center Road, Canton Township. Telephone: (734) 354-3900. Website: www.hydrohelper.net. Art Van Furniture Inc., Warren, opened an Art Van PureSleep store at 2570 Jackson Road, Ann Arbor. Telephone: (888) 920-1642. Website: www.artvan.com. MERGERS EDSI Consulting Solutions, a division of EDSI, Dearborn, merged with CMM Engineering LLC, Waterford Town- ship. Chuck Mouranie joined EDSI as a partner, bringing a team of 11 con- sultants with him. MOVES Coldwell Banker Weir Manuel, Troy, Your Bank’s moved from 4700 Rochester Road, and Troy and 1205 W. University Drive, Rochester, to 900 W. University, Rochester. Not Lending? Innovative Tool Inc., a small-business prototype sheet metal fabricator and CNC machining company, moved from Fraser to 28195 Kehrig St., Chesterfield Township. Telephone: SURVEY (586) 415-9600. Website: www. innovativetoolinc.com. Perfect Water Co. LLC, a commercial provider of cost-effective alternatives to bottled drinking water, moved from Macomb Township to 25227 Dequin- dre Road, Madison Heights. Tele- phone: (248) 629-9590. Website: www.perfect-water.us. NEW PRODUCTS What Business Meritor Inc., Troy, an automotive sup- plier, unveiled the MTA25 and MTA30 to its product line of trailing-arm air ride trailer suspension systems. Web- site: www.meritor.com. Expects for 2012 Domino’s Pizza Inc., Ann Arbor, ours are launched Domino’s Artisan Pizza. Website: www.dominos.com. . Call for a free consultation. NEW SERVICES Loan amounts: $1,000,000.00 and above. ImageSoft Inc., Southfield, an infor- mation-technology company, released s Investment Real Estate s Equipment TrueCertify, a new technology that al- lows courts and other government s Owner Occupied Real Estate s Turnaround Consulting agencies to authenticate and deliver s Lines of Credit s Loan Modifications certified documents electronically s Accounts Receivable s Bank Workouts and enables recipients to verify docu- ment contents via the Web. Website: www.imagesoftinc.com. Highlights of the survey appear in this issue Plunkett Cooney PC, Bloomfield Hills, a law firm, and the Michigan Associa- and the full survey can be found at tion of Certified Public Accountants, Troy, launched a toll-free telephone honigman.com or crainsdetroit.com hotline for MACPA members. Tele- phone: (888) 700-5222. Website: 800.509.3552 www.plunkettcooney.com. www.eclipsecapitalgroup.com th This is the 18 in a jointly-sponsored series on critical issues. DTE Energy Co., Detroit, introduced 2207 Orchard Lake Road, Sylvan Lake, MI 48320 White Tag, an incentive program to “Since 1997” help commercial and industrial cus- 20111128-NEWS--0021-NAT-CCI-CD_-- 11/23/2011 3:45 PM Page 1

November 28, 2011 CRAIN’S DETROIT BUSINESS Page 21

Study to rate state’s MARKET CAREER MOVES PLACE HUMAN RESOURCES business incentives BUSINESS & INVESTMENTS MANAGING DIRECTOR LANSING — Michi- is a larger goal: a look at BROAD COLLEGE OF BUSINESS gan has commissioned the total competitiveness FRANCHISE OPPORTUNITIES an $80,000 study on Capitol of Michigan’s approach whether its business in- to job creation. The Broad College of Business at MICHIGAN STATE UNIVERSITY seeks a Managing Briefings Big Apple Bagels Franchise Director for the MSU Institute for Entrepreneurship and Innovation. The Managing Director centives are still compet- For example, he said, Genessee County will provide operational leadership for the Institute; help coordinate the activities of students itive with other states. Michigan in 2012 has new and faculty as well as help connect student oriented entrepreneurial activities on campus Reduced to $47K/OBO with companies in the region. This connection will provide students with exposure to the The study, which was initiatives — such as Priced for quick sale excitement and challenges inherent in entrepreneurial businesses as well as provide awarded to Austin, Pure Michigan Business Established business with gourmet consulting opportunities in which they will help entrepreneurial companies address Texas-based AngelouEco- Connect, a broad public- strategic, financial and business process challenges. The Managing Director will also have products in great community. responsibility for building networks across the university and work collaboratively with the nomics, will help the private initiative Retail, wholesale and catering. technology commercialization efforts in the Office of the Vice President for Research. Michigan Economic Devel- launched by the state to Call 1-800-251-6101 ext. 319 The Managing Director for the MSU Institute for Entrepreneurship and Innovation supports opment Corp. determine increase purchasing from and creates opportunities for students to interact with Michigan entrepreneurship Michigan’s position in Michigan firms — to help community to pitch new venture ideas as well as more highly articulated business plans in Amy Lane a formal business plan competition. Also, responsibilities include coaching student light of its new corporate businesses find capital business plan teams, provide feedback on the business plans, that were developed within tax structure, discontin- and obtain assistance. REAL specific courses as well as those developed on an extracurricular basis; identify prospective business clients for student teams and provide coaching for the teams to uation of business-tax credits and Other objectives of the study in- ensure their productivity; manage day-to-day operations under the guidance and direction new programs to assist business. clude comparing Michigan’s in- of the faculty member designated as Center Director; with respect to community outreach, The state has faced criticism for centive programs and proposed in- ESTATE organization of speaker series and faculty research colloquia; work with students to create new activities that provide them with a variety of experiential learning opportunities; and eliminating tax incentives under vestment to 14 other states and work with the other managing directors to leverage synergies among the sub-units of the the new corporate income tax evaluating the competitive land- Institute including the Center for Business Transformation and the Center for Venture INDUSTRIAL PROPERTY Capital, Private Equity and Entrepreneurial Finance. structure that is replacing the scape for Michigan should its in- Qualifications: Master's degree in business, an MBA, or Master’s in higher education, or Michigan Business Tax on Jan. 1. vestment level change. AVAILABLE NOW other Masters and three to five years’ of related work experience in corporate, academic, In place of expiring tax credits for The study also will address government relations and/or government agency or directing an entrepreneurial business Taylor/Romulus Area — 4,000 to 80,000 sq. ft. economic development, historic helping the MEDC set a target for venture. Experience in contract management, managing a business enterprise including Ideal for logistics company, budgeting is essential. The successful candidate will also demonstrate knowledge and preservation and brownfields are the job creation needed for Michi- expertise of the following; capital formation, various sources of financial support, creation two new programs totaling $100 mil- gan to be competitive, studying manufacturing or warehousing. of business plans, understanding commercialization processes, and risk assessment under uncertainty, lion. The programs will provide implications of changes in busi- Yvon Rea 734-946-8730 Requirements also include excellent oral and written communication skills, strong grants, loans and other assistance. ness-tax rates, and assessing the administrative and organizational skills and the ability to manage employees and A methodology developed by the impact on business decisions of experience working with students. We have a strong desire to create student successes. OFFICE SPACE The managing director will be working with academic faculty within the success of our client MEDC has determined that it will up-front incentives versus the firms as well as in stand-alone enterprises. The candidate should expect to travel take $291.5 million in incentives to state’s discontinuing long-term throughout the Michigan region; therefore, a valid driver's license is required. PRIME OFFICE SPACE produce the 136,703 jobs needed to tax incentives. Desired Qualifications: MBA preferred. An ideal candidate has experience in technology bring Michigan’s unemployment The study is scheduled to be Livonia - 8,000 sq. ft. for lease,1st floor of commercialization, a track record in writing project proposals, grant writing, and fundraising experience. Consistent with MSU policy this appointment can be extended after the first rate down to the U.S. average or be- complete by year-end. free standing building with private parking lot and easy freeway access. 2nd floor year. low. The unsuccessful bidders for the Compensation: occupied by CPA firm. Available now. Competitive and commensurate with qualifications and experience. A One goal of the study is to deter- contract were East Lansing-based generous benefit package is offered. mine if that methodology is valid Anderson Economic Group LLC and Call 734-427-2030 or [email protected] Application Procedures: Candidates should apply with a cover letter and vita at http://jobs.msu.edu and for AngelouEconomics to sug- B&D Consulting in Indianapolis. to apply for posting 5430 in the Faculty/Academic staff positions. For information on the University see http://msu.edu/ and for information on the Broad gest other possible methodologies. Amy Lane: (517) 371-5355, AUCTIONS College of Business see http://broad.msu.edu/. Beyond that, said Michael [email protected]. Twitter: Finney, MEDC president and CEO, @alanecdb REAL ESTATE

MSU is committed to achieving excellence through cultural diversity. The University actively AUCTION! encourages applications and/or nominations of women, persons of color, veterans and Celani buys into Dick Scott persons with disabilities.

MSU is an Affirmative Action, dealerships; duo plan growth Equal Opportunity Employer.

BY DANIEL DUGGAN projected revenue of $100 million. CRAIN’S DETROIT BUSINESS Celani owns Farmington Hills- based MotorCity Harley-Davidson and 41346 LLEWELYN DRIVE Casino investor, vineyard own- Bloomfield Hills-based MotorCity NORTHVILLE, MI 48167 er and motorcycle dealer Tom Power Sports. Through Novi-based Celani is broadening his base of Luna Entertainment, he owns casi- SUNDAY businesses to include cars. nos in Colorado and Oklahoma. He DECEMBER 4, 2011 at 2 pm POSITIONS AVAILABLE The West Bloomfield Township also owns TC Vineyards Inc., a Napa entrepreneur Valley vineyard and winemaker. Prime location, 4,084+/- square foot has acquired a It’s that roster of businesses that multi level brick home on private 50 percent stake Scott said makes him look forward 0.84+/- acre lot. in the Dick Scott to Celani’s marketing ideas. MINIMUM BID $199,000 Chrysler dealer- “Tom’s got his hands in a lot of ! ships in Ply- businesses; he’s a true entrepre- Originally listed at $639,900. 3 mouth and neur,” Scott said. bedrooms, 3-2 baths, sunken living room with stone fireplace, Fowlerville. The dealership was founded by and oversized garage. Close to The new entity, Scott in 1974. Over the years he’s shopping and freeways. i co-owned by included members of his family as View More Details Online at Celani and Dick well. His daughter, Nicole Gal- Celani www.pamelaroseaucon.com Scott, plans to lagher, and his sons, Judson and h Need A Brochure? Call 1-877-462-7673 R go into growth mode, expecting to Jason, work with the dealerships. Pamela Rose Broker Auconeer AARE CAI buy one dealership a year. As Scott and Celani look for new Michael Murray Auconeer CAI GRI candidatest fast???

©2011 michael@pamelaroseaucon.com The new business entity, Luna investments, they’re going to be in g LLC Visit crainsdetroit.com/jobfront Dick Scott LLC, will own Dick Scott a market that has gone from a buy- PAMELA K. ROSE AUCTION CO Chrysler Dodge Jeep Ram in Ply- er’s market to a seller’s market, mouth and Dick Scott Motor Mall in said Daniell Patterson, a principal Call Us For Personalized Fowlerville. The deal is to close specializing in car dealership con- Service: (313) 446-6068 this week. Financial terms were sulting in the Southfield office of not disclosed. UHY Advisors Inc. FAX: (313) 446-1757 The group also hired a CFO, Jim “The dust has settled; the dealers E-MAIL: [email protected] !! Eagan, a consultant in the automo- who survived are returning to prof- INTERNET: CRAIN’s JOB FRONT tive dealership practice at South- itability,” he said. “And the major www.crainsdetroit.com/section/classifieds POWERED BY field-based Plante & Moran PLLC. players are looking to get out there Scott said the dealership is on and make investments.” See pace to sell 1,100 cars in Plymouth Daniel Duggan: (313) 446-0414, Crainsdetroit.com/Section/Classifieds this year and 700 in Fowlerville. [email protected]. Twitter: for more classified advertisements The dealerships have combined @d_duggan 20111128-NEWS--0022-NAT-CCI-CD_-- 11/23/2011 4:29 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS November 28, 2011 Survey: Biz owners see signs of hope ■ From Page 1 mism given that autos are out of bankruptcy and showing profits.” ON TAXES AND POLITICS While 59 percent of respondents Other results from the Nov. 7-9 survey of business owners and executives for voiced dissatisfaction with Michi- Crain’s Detroit Business and Honigman Miller Schwartz and Cohn LLP: gan’s economy, 41 percent said they are satisfied with the econom- Personal property tax ic conditions. 55% Favor eliminating the personal property tax paid by state businesses. As a whole, 47 percent of local 68% Of the 55% favor elimination even when told that it would result in business leaders said they are opti- large revenue cuts to cities, villages and townships. mistic the economy will improve 33% Said all lost municipal revenue from elimination of the tax should be in 2012, and only 7 percent believe replaced with another source of state tax revenue. it will worsen. Some 53 percent 45% Said some or most of the revenue should be replaced. said they expect their business to improve next year, while 39 per- Politics cent believe it will stay the same. On Gov. Rick Snyder Only 7 percent expect their busi- 69% Viewed Snyder favorably as a political figure ness to face a downturn. The June 2011 survey found 56 38% Say Snyder has taken strong steps toward making Michigan more economically competitive. percent of local business leaders expected the Michigan economy to 22% Say they’re taking a wait-and-see approach. improve in the next year, and only 22% Like what Snyder’s done so far but had hoped for more 8 percent expected it to worsen. accomplishments by this time. The positive outlook means 11% Are not happy with Snyder’s administration. more jobs. Of those companies sur- veyed, 33 percent said they expect On the presidential candidates to hire more employees, while 59 Overall, 51% of those surveyed said they were likely voters in the percent said they will not increase Republican primary. Here’s how respondents characterized their views of the number of employees in their the president and his GOP rivals: workforces. Only 3 percent expect Favorable Unfavorable Favorable Unfavorable to lay off employees. Barack Obama 35% 54% Newt Gingrich 39% 41% Some 65 percent said they will Michele Bachmann 22% 51% Rick Perry 21% 41% leave wages unchanged in the com- Herman Cain 29% 39% Mitt Romney 49% 30% ing year compared to 27 percent who said they plan on increasing wages. Only 2 percent said they On U.S. Senate candidates will need to reduce wages. Here’s how those surveyed characterized their views of Democratic Sen. “As a matter of fact, we will be Debbie Stabenow and Republican contender Pete Hoekstra: hiring within the next year since Favorable Unfavorable Favorable Unfavorable revenue is up,” Al Connor, CEO of Stabenow 35% 45% Hoekstra 33% 13% Waterford Township-based RRA Source: Epic-MRA Partners LLC, said. “But I think we will keep salaries the same.” year, which means he’ll add four business in the coming year, while Connor said he is growing his brokers in the coming months. 18 percent said containing costs business through more outreach. “We are seeing, in the restaurant would be. Twelve percent named “We are feeling more positive sector, that corporations are look- advertising and marketing, and 11 than we were last year at this time,” ing to expand here,” Griffin said. percent said developing new prod- Connor said. “There is more activi- “None have said they are going to ucts would be most important. ty and a lot more relocations.” close their stores in Michigan.” About 23 percent of respondents RRA Partners, which helps in- Griffin said he is planning on said the biggest concern for the ternational employees relocate, giving raises to his entire staff. coming year is a diminishing cus- has two full-time employees but re- “I have people who have been tomer base, while only 13 percent tains up to 20 contractors at a time. with us through thick and thin and said the economy is their biggest Laura Davis, an executive assis- are worth more money,” Griffin challenge, which Cavanaugh says tant at Farmington Hills-based Asker said. “A lot of employers have not is an indicator of things to come. Perlmuter PLC, said the firm is look- been able to pay their employees “This is a far sight better than it ing to hire two new lawyers and is what they are worth ... but because was three years ago,” Cavanaugh confident salaries are on the rise. there isn’t enough money to justify said. “It seems the doom and gloom “I can’t say what percentage, but paying them more.” has subsided but has not quite I would say that it will be more Half of respondents said increas- been replaced with enthusiasm.” than 5 percent,” she said. “I think ing revenue with existing services Nathan Skid: (313) 446-1654, we have seen the worst, and I and or products will be the single [email protected]. Twitter: think we are coming out of it.” most important activity for their @nateskid But Davis is hesitant to get too excited. “Overall, the economy is still very limited,” she said. “When you look at downtown Detroit, if the !&!6,2 cities are struggling and if every- one has to take pay cuts, how can you say things are doing great?” %"/ Chuck Truza, chairman of De- troit-based Institute of Management &$$ 6&01%" Studies, said that while companies are hiring they are not necessarily #01"01W$/,4&+$ looking to fill jobs with currently unemployed workers. ,##"" %&+ “I see a lot of businesses hiring people from other companies, &+1%"2 0 Truza said. “In other words, if you are out of work for more than six months, you are just out. It’s a buy- A FRANCHISEE! er’s market.” Truza said even recruiters are Not only do we lead the industry in sales having a hard time helping those who have been out of work for six growth, but we reducedduceddduuceuucceeded build-outbuuiluiilldd-d--ooutouutt costsccooostosstssttst months or longer. by 40% (WOW!), andaannndd wew always alwallwwaayys providep prproprovroviderovrooovvivvidididede Scott Griffin, president of South- comprehensive andndnd ongoingononggoooiniinnng support.supporsuuupppppooortorrt.rt.t field-based Scott Griffin Inc., said ac- tivity at his restaurant brokerage There has never beenbebeebeeenen aab betterbetettetttterteer time ttimtiimmee firm, which helps restaurant own- to own a BIGGBY! ers as well as major restaurant chains find locations in Michigan, is up almost 50 percent over last 20111128-NEWS--0023-NAT-CCI-CD_-- 11/23/2011 4:57 PM Page 1

November 28, 2011 CRAIN’S DETROIT BUSINESS Page 23 China: Fund to help state businesses Bills: Hospitals object ■ From Page 1 ■ From Page 3 ing a letter of memorandum with ny claims it reduces the amount of auto accidents are out of control. traumatic injuries. Sino Ambassadors LLC, a tenant of concrete used in construction pro- “If Michigan’s auto rates are “We would have to consider Ann Arbor Spark, calling on it to jects by 25 percent. significantly higher and uncom- whether to remain in the trauma raise matching funds of $20 mil- Mayer said the Chinese said petitive, why does Michigan rank business,” Connolly said. “We lion and help find local clean-tech they want to erect a building on 16th in the nation in premiums?” have to maintain our services 24 companies to invest in. their site with Polytorx material Connolly said. “Our premiums hours a day, year-round. We have A second $50 million fund also is and use it as a demonstration pro- are only 5 percent higher than surgeons and anesthesiologists planned. Both will invest in young ject. The site currently has four the mean. … Those comments and specialized staff that are clean-tech companies that have completed buildings. about (passing this bill) to reduce waiting here to be responsive.” just started to generate revenue or Ramirez said with the Chinese health care costs just (don’t) fit.” If the bill is approved, Connolly are past the proof-of-concept stage Earle Holsapple John Holsapple having committed $30 million plus To cover charity care and bad said the worst case is that multi- and about to generate revenue. seed funding, and the potential debt, hospitals are paid cost-plus ple hospitals would drop out of Both will be run by an experi- spring by a professor from Shang- market opportunity of selling to a for services from a variety of pay- the statewide trauma network be- enced fund manager Sino will hai University, Haitao Yin, who had manufacturing giant that desper- ers, including commercial pay- cause they could not sustain the hire, but will be headquartered of- been on leave to get his master’s ately needs to reduce pollution and ers, Blue Cross and auto insurers. financial losses from reimburse- ficially in Hong Kong, a legal re- degree in business administration energy use, raising the other Some experts estimate that hos- ment that does not cover costs. quirement by the Chinese govern- from the University of Michigan’s $20 million should be fairly easy, pitals receive between 120 percent “We break even on our trauma ment that allows the Foshan Stephen M. Ross School of Business. despite the economy. and 130 percent of costs from auto program … and lose money oper- group to funnel money into invest- An adviser to the Foshan group, he Ramirez said he expects some of insurers, up to 120 percent from ating our emergency depart- ments abroad. returned to China after getting his that will come from one or more of commercial payers and 110 per- ment,” he said. The third and larger fund for degree in May 2010. the various state investment cent to 115 percent from Blue Cross Under the House bill, drivers projects inside China will be run Fluent in English, he was aware funds, such as the $185 million In- Blue Shield of Michigan. Medicare could choose personal injury pro- by the Chinese. of Spark’s economic development vestMichigan Growth Capital Fund co- pays hospitals approximately 90 tection of $500,000, $1 million or Milestones in the memorandum activities and sent an email to managed by Farmington Hills- percent of costs and Medicaid $5 million. However, drivers will of understanding call for a formal Mayer at the end of last year based Beringea LLC and New about 55 percent. not be able to choose lifetime cov- contract to be in place by the end telling him of a possible relation- York-based Credit Suisse, but has Connolly said Michigan’s no- erage. of January and for the first $50 mil- ship. yet to have formal talks. fault auto insurance system is a Drivers whose injury costs ex- lion to be raised by June. Mayer in turn recruited Kayo He said informal talks with state model for the nation and should ceed the amount of purchased cov- The Chinese group also has Ramirez, a technology business officials about financial support not be changed. erage would be allowed to file a signed a memorandum of under- consultant with the Michigan Small from the state have been promis- “It is mind-boggling for me that lawsuit if they exceed their chosen standing with Spark officials for Business & Technology Development ing. anyone wants to change this in- coverage levels and exhaust their the Ann Arbor-based economic de- Center who focuses on clean tech, “The Chinese feel like their surance program that has worked personal financial resources. velopment agency to provide ser- and Holsapple, who is fluent in backs are against the wall. It’s like great since 1973,” said Connolly. Studies by the Coalition Protect- vices in China as needed. Mandarin and familiar with Chi- if you built Disneyland and no one “For $145 a year, you … get com- ing Auto No-Fault, or CPAN, which Sino Ambassadors will open a nese business practices, to fly to came. They need to fill the space plete coverage for the rest of your opposes the no-fault auto bills, es- small office in the Chinese tech in- Foshan for a week in June. with companies that can go to mar- life if you get in a catastrophic ac- timate that the state Medicaid cubator in the next few weeks. Spark signed its first memoran- ket, and to do that they feel they cident. Michigan consumers get a program would pick up an addi- According to Spark and Sino dum of understanding with the need U.S. companies and U.S. tech- tremendous bargain.” tional $30 million in auto-related Ambassadors executives, this is group then. nology,” said Mayer. In a study earlier this month, claims during the first year, and part of an emerging Chinese strat- “The need they expressed to me “There’s a huge potential, but the state hospital association said that the state would lose more egy to invest some of its trillions in is, ‘We’re really good at copying we have to treat this the way we hospitals in Southeast Michigan than 5,000 jobs in the health care U.S. dollars into for-profit ven- things, but we’re not good at inno- tell our entrepreneurs to treat alone could lose more than industry. tures with U.S. companies. vating,’ ” said Ramirez. their businesses: Pick and focus $100 million that fund patient CPAN includes the hospital as- “We’re right on the cusp of a “They are looking at everything on a beachhead. Prove that it care and trauma units. sociation, the Michigan State Med- much bigger macro trend that will related to clean tech to help with works and that it’s scalable,” said For example, losses would total ical Society, the Brain Injury Associa- continue: Money coming into the all their pollution problems — en- Mayer. “Maybe we can take one $18.3 million for Oakwood; tion of Michigan, the Michigan U.S. from China. Michigan really ergy storage, wind turbines, LED or two companies over there $26 million for William Beaumont Consumer Federation, the Michigan stands to benefit from this rela- lighting. Anything that helps them and help them with a China strat- Health System; $24 million for De- State AFL-CIO and the Michigan tionship from China,” said Sino move the needle there,” said May- egy.” troit Medical Center; $9.5 million Nurses Association. co-founder John Holsapple. er. “We’ll need to be savvy about Sino Ambassadors grew out of a for Henry Ford Health System; In a statement to Crain’s, the The Chinese have been active tech transfer, obviously. IP is im- business, Culture Gateway, formed $12.7 million for St. Joseph Mercy Michigan Orthopaedic Society said investors in Michigan recently, portant. The contracts need to be by Holsapple in 2007 when he was Health System; $9.3 million for St. imposing a fee schedule on top of including an R&D center in Ply- airtight. If we get that right, we 19 and an exchange student in Bei- John Providence Health System; and low reimbursement rates by Blue mouth that was opened in Janu- can scale this up rapidly.” jing from George Washington Univer- $3.7 million for Mount Clemens Re- Cross Blue Shield of Michigan ary by the Changan Automobile Holsapple returned to China for sity. He took a leave of absence gional Medical Center. could worsen the shortage of sur- Group; a $500 million stake by three weeks in September to con- from school to run the business, Connolly said Oakwood Hospital geons in the state and not “allow Shanghai Automotive Industry Corp. tinue discussions and plan a re- providing English teachers to Chi- and Medical Center, Oakwood’s patients to return to pre-injury in General Motor Co.’s initial pub- turn trip by the Chinese. nese business, high schools, uni- flagship hospital in Dearborn, op- function.” lic offering; and the $450 million A delegation of five — three versities and wealthy families. erates a level-two trauma center Jay Greene: (313) 446-0325, purchase by Pacific Century Motors from the Foshan group and two At its peak, it employed 40 teach- that treats serious auto accident [email protected]. Twitter: of Saginaw-based Nexteer Automo- government officials — arrived in ers of English and 10 of Chinese. victims and other people with @jaybgreene tive Corp. in 2010, which was fol- the U.S. on Nov. 12 and met with He sold the company’s contracts in lowed by the announcement in members of several hedge funds 2009 and returned to school to fin- October that the company would who Ramirez knew, then came ish his degree in international re- spend $150 million to upgrade the here for tours of NextEnergy and lations. plant. TechTown in Detroit and the North This year, he formed Sino Am- Professional Jet Management According to Bill Mayer, direc- Campus Research Complex at UM, bassadors with his father, Earle, tor of Spark’s business accelera- as well as to meet with members to provide consulting services to tor, the memorandum of under- of UM’s tech transfer office, Spark Michigan companies hoping to do standing with Spark could and the MEDC. business in China. eventually lead to it opening an of- The group also met with execu- Earle is a serial entrepreneur fice in the Foshan accelerator to tives from nine local clean-tech who was part of the team at the assist Chinese companies, Chi- companies and went to see the pre- Barbara Ann Karmanos Cancer Insti- nese-American joint venture com- sentations of the 10 finalists at the tute that helped grow a company panies and U.S. companies estab- Accelerate Michigan Innovation Com- called Delphinus Medical Technolo- lishing operations there. petition at The Henry Ford in Dear- gies Inc., which does ultrasonic Law firm Dykema Gossett PLLC — born. breast cancer detection and raised which hosted the Chinese delega- Ramirez and Mayer declined to $8 million in venture capital last Experience the difference. tion, Spark officials, members of name most of the companies. year. He now is president of the Michigan Economic Development They said the Chinese group was SciTech Inc., a Grosse Pointe-based All inclusive management at an affordable fi xed cost. Corp. and state Treasurer Andy particularly impressed with Ann biotech looking for funding to mar- Dillon at a reception and dinner at Arbor-based Polytorx LLC and ket cancer drugs first developed by •Forming partnerships now the firm’s headquarters on Nov. 14 could start ordering some of its Johnson & Johnson. •Small, midsize and large cabin jets — and the Farmington Hills-based building material in a matter of Michele Scermenti, a former accounting and consulting firm of weeks. classmate of John Holsapple’s at •Reduce your total operating cost UHY Advisors Michigan, which host- Polytorx has patented a method George Washington and a business •Maximize your aircraft effi ciency ed the delegation at a dinner at the of making what it claims is a reporter now living in Beijing, will while enhancing your aircraft Detroit Athletic Club Nov. 16, will cheaper, longer lasting, greener run Sino’s Foshan office. appearance, performance & value www.skywayavjets.comwww skywayavjets com provide services as the project concrete that eliminates the need Tom Henderson: (313) 446-0337, ramps up. for rebar by mixing in short, thin, [email protected]. Twitter: The project was initiated in the twisted pieces of steel. The compa- @tomhenderson2 Call today for more information, Geoff Sherman 1.248.568.0979 20111128-NEWS--0024-NAT-CCI-CD_-- 11/23/2011 4:25 PM Page 1

Page 24 CRAIN’S DETROIT BUSINESS November 28, 2011 Apps: Investors sign on in SE Michigan as market explodes ■ From Page 1 spate of buildings Gilbert has pur- those. And we get more attending chased. every meeting.” “This is a great market opportu- Smarts, revenue According to a variety of indus- Companies with app-titude nity, and it cements downtown try watchers, the industry will Detroit as the latest hotbed of continue to grow dramatically smart-app technology,” said rise together over the next few years. The world- Here are short profiles of four world. The company is credited Linkner. Detroit Venture Part- wide technology research compa- local companies that are part of (or blamed, depending on how The first smartphone is gener- ners has invested in 11 portfolio ny Gartner projects the number of the burgeoning industry: you feel about Led Zeppelin and ally considered to have been the companies this year, and seven downloads to go from 8 billion in Ted Nugent) with creating the IBM Simon in 1993, which had fax have been in the mobile industry, 2010 to 21 billion in 2013, and rev- classic rock radio format in the capability and a personal digital ‘Magnet for talent’ including Flud LLC, a San Francis- enue from mobile-app stores early 1980s and does media con- assistant. Some say the real Detroit Labs LLC ranked No. 4 sulting and research for radio co-based company that allows worldwide to go from $6.2 billion to start of the smartphone revolu- with just over 1 million down- stations around the country. users to aggregate news feeds and nearly $30 billion. tion, though, came in 2002 loads as of August and was at In the fall of 2008, Jacobs began blogs and which opened up a local Those dollar figures are all the with the introduction of the 1.5 million by the end of October. helping clients develop smart- sales office downtown. more impressive considering that BlackBerry, which allowed for It employed four six months ago, phone apps, eventually spinning An Ann Arbor-based company, estimates are that eight of 10 are wireless email. has 15 today “and will be at multi- out jacAPPS LLC this July as a sep- Mobiata LLC, made the first big free. But what really made the ples of 15 in a year,” said CEO arate entity. Jacobs/jacAPPS is splash in the local app-developer According to Bango Analytics of smartphone smart was a deci- Paul Glomski. No. 1 in aggregate downloads lo- scene when it was sold a year ago to New York, which analyzes mobile Expedia Inc., the Bellevue, Wash.- sion announced by Apple Inc.’s “The company has taken off at cally, with more than 11 million, Steve Jobs in 2008 to create a de- traffic and marketing campaigns a crazy clip,” said Josh Linkner, well ahead of the 1.9 million for based online travel company, for an for businesses, app developers are undisclosed sum believed to be well veloper community for the CEO of Detroit Venture Partners No. 2, JEWL Solutions LLC of Supe- iPhone that wasn’t housed in- fast moving away from the get-if- LLC. “It’s been a great magnet for rior Township. into seven figures. for-free model, with 45 percent of The company had been a tenant side the company. That decision talent. We’ve got the baddest soft- “At first, we were hesitant. Do developers saying they plan to in TechArb, a University of Michigan did for app development what ware engineers and developers in we really want to make an invest- commercialize their apps directly, tech incubator for student-founded cloud computing has done for the region.” ment in something we don’t know? outside app stores. companies. the world of IT. Employees spend 80 percent of We’re not a software company,” Or, like jacAPPS LLC of South- Mobiata, whose FlightTrack app Some 24,000 developers ap- their time on app development said Vice President Paul Jacobs. field, create apps, often at a cost of allowed users to see updated status plied to Apple to create apps projects for such clients as Quick- “But the business just exploded.” $20,000 to $30,000, for corporate reports of flights, generated more that first year; 4,000 were ap- en Loans, Kalamazoo-based Stryker There are four employees at clients. JacAPPS was spun off in than $1 million in sales its first proved. The rest is smartphone Corp. and Las Vegas-based Cae- jacAPPS, with revenue approach- year and ranked in the top five history. July from Jacobs Media Inc., which sars Entertainment Corp., and ing $1 million and more than 500 downloads at the Apple app store According to Gartner, the does marketing and consulting for 20 percent on what is called lab apps for more than 300 customers, for 18 straight months. worldwide technology consult- radio stations around the country. time, working on their own pro- including apps for radio stations New TechArb tenants include ing firm, total annual app rev- The company is by far the leading jects. around the country, the Ann Arbor Fantasy Fitness League, an app com- enue will hit $30 billion in 2013, app developer in metro Detroit, “Software engineers can tinker Art Fairs, and “Car Talk,” the pop- pany that plans to help dieters lose based on 21 billion downloads, with aggregate downloads of more and experiment and come up ular NPR weekend show. weight by forming teams of compet- up from $6.2 billion on more than 11 million, and is looking for with cool ideas. The core premise The Car Talk app lets fans hear ing dieters, and Fetchnotes, an app than eight billion downloads in investors to help ramp up hiring is: If something cool comes up, it the trademark laughs of co-hosts that reminds people of things to do 2010. and app development. can be launched as a spinoff,” Tom and Ray Magliozzi and the on the go, which was the subject of a — Tom Henderson Tom Kinnear, a veteran angel in- said Linkner. now-famous sounds of callers try- recent Wall Street Journal blog. vestor and executive director of the ing to imitate the sounds their “The demand downtown Detroit and hopes to be UM’s Zell Lurie Institute for Entrepre- First bite of the Apple cars make that they are worried for developers there sometime next year. neurial Studies, said that while the about. here far exceeds The association has a paid mem- app world has received a lot of atten- Michael Antaran, a former the supply,” bership of 150 and is a sponsor of tion lately, context is needed. “A lot powertrain engineer at Chrysler, Targeted coupons said Linda Mobile Monday Michigan, which of it has been overhyped and over- founded Huntington Woods- Daichendt, exec- has grown in 18 months from zero valued. There have been some suc- based Marvel Apps LLC shortly af- In September, Mercury Studio utive director of to nearly 1,300 members statewide. cesses, but, so far, very few people ter being selected as one of the LLC, a website developer in Hunt- the Mobile Tech- It holds monthly meetings in are making much money,” he said. first batch of 4,000 developers for ington Woods, and Gravy Network, nology Associa- Grand Rapids, Detroit and Ann Ar- “It’s not like medical devices or Apple. “When Steven Jobs first an affiliated S corporation, tion of Michigan, bor. diagnostics or enterprise software, announced the iPhone, I thought launched a GPS-based marketing it was beautiful. I was one of app called Mobibo, which offers Daichendt a nonprofit “Mobile Monday is more indica- which have made people a lot of trade associa- tive of how the industry is growing money. You’re talking about 99-cent those who stood in line and paid rewards, promotions and tion formed in 2009. “One of the here,” said Daichendt, who said downloads on your phone. For the $600 for it,” he said. coupons to users based on prox- things we’re working on is getting she hopes to add groups in Lans- most part, it might make for a de- A self-described sports nut, An- imity to Mobibo clients. more trained developers out ing, Kalamazoo and Traverse City cent living, but it’s not anything on taran developed one of the first The app launched in Septem- there.” next year. “You pay for member- a major scale, yet,” he said. fantasy football league apps for ber with big expansion plans, ac- The association is based in ship in the association, and Mobile One train of thought in the In- the 2008 season and had an app cording to company co-founders developed in time for the 2008 Zachary and Joshua Ball. They Southfield, but Daichendt said she Monday meetings are free, so natu- ternet/mobile world is that HTML Beijing Olympics that allowed say they are on target to have has been looking at locations in rally we get a lot more people at 5, the newest hypertext markup fans to keep track of results. 50,000 users in the Detroit market language for the Internet, will over Marvel, which also makes apps by the end of the year and are the next few years make websites for corporate clients, ranks No. 3 looking for investment capital to so content rich, user friendly and on the Crain’s list of aggregate roll out in 43 other markets na- able to run on low-power devices downloads as of August: 1.9 mil- tionwide. as smartphones and tablets that lion. It employs two part-time lo- According to Zachary Ball, the downloadable mobile apps will be- cal developers and has revenue of company projects revenue of come obsolete. more than $100,000. $5 million by the end of 2012. Last week, however, tech blog- The company created two apps Though analysts fear that the ger Rafe Needleman, a former edi- for Kansas-based Coleman Co. Inc. coupon space is overheated and tor at Red Herring magazine and One downloads scary stories for not sustainable, and despite a for- now an editor at CNET.com, wrote parents to read to the kids around midable competitor in Groupon, that HTML 5 will actually boost campfires. The other brings up Zachary Ball said Mobibo’s mod- app development. an image of a Coleman lantern on el is unique. While sales through app stores the screen to serve as a flashlight. It doesn’t share in customer may decline, Adobe has started re- Antaran is developing a new sales, but it charges companies leasing high-quality HTML 5 de- app-based product, a combina- 75 cents for each smartphone veloper tools, “so we should be tion of hardware and software view by a prospective customer about to see a flood of new Web- that he hopes will give a richer in geocentrically targeted areas. based mobile apps,” he wrote. sound to digitally based music. One early customer is Belle Tire, “I agree,” said Daichendt. “You He will display a prototype at an which can send news of deals to read all the articles that better Apple conference for developers would-be customers, who have al- websites are going to make apps in Austin in January. ready signed up for alerts, as they obsolete, but they won’t. HTML 5 pass stores. The recipients don’t will make mobile apps much more regard the notices as spam be- Old songs, new tricks cause they are paid 25 cents for user friendly, across all platforms and phones.” Jacobs Media Inc. of South- each one they look at. field is an example of an old- Other clients include Hanson’s Tom Henderson: (313) 446-0337, school marketing company Windows and Happy’s Pizza, accord- [email protected]. Twitter: adapting to the post-iPhone ing to Zachary Ball. @tomhenderson2 20111128-NEWS--0025-NAT-CCI-CD_-- 11/23/2011 4:27 PM Page 1

November 28, 2011 CRAIN’S DETROIT BUSINESS Page 25 Troy: ‘Musical chairs’ keep vacancy rates high www.crainsdetroit.com ■ From Page 3 EDITOR-IN-CHIEF Keith E. Crain PUBLISHER Mary Kramer, (313) 446-0399 or to improve its appearance. The ants, said John Latessa, managing [email protected] EXECUTIVE EDITOR Cindy Goodaker, (313) 446- building had been largely vacant OFFICE SPACE CHURN director of the CBRE office in 0460 or [email protected] for the past two years. Southfield. He DEPUTY MANAGING EDITOR Jennette Smith, Top three recent deals (313) 446-1622 or [email protected] “We wanted all our people on said the city’s lo- SENIOR EDITOR Bob Allen, (313) 446-0344 or one floor, we wanted more visibili- Rehmann J.D. Power T-Systems North cation isn’t as [email protected] ty and we wanted to remain in central as WEST MICHIGAN EDITOR Matt Gryczan, (616) 916- Ⅲ 40,000 square feet Ⅲ 40,000 square feet America Inc. 8158 or [email protected] Troy,” said Phil Bahr, managing Southfield and Ⅲ 1500 W. Big Beaver Ⅲ 320 E. Big Beaver Ⅲ 20,000 square feet COPY DESK CHIEF Gary Piatek, (313) 446-0357 or principal. “This is perfect.” from 5750 New King from 5435 Corporate Ⅲ PNC Tower from is far from the [email protected] ASSISTANT NEWS EDITOR Jeff Johnston, (313) It’s a deal that prompted a near- Drive Drive 3499 Hamlin Road, airport, but it is 446-1608 or [email protected] ly $3 million investment in the Ⅲ Broker: Matt Farrell, Ⅲ Brokers: Glenn Rochester Hills a great fit for the DATA EDITOR Brianna Reilly, (313) 446-0418, building, said Matt Farrell, execu- Core Partners DesRosier, Friedman Ⅲ Brokers: David companies that [email protected] WEB DEVELOPER Steve Williams, (313) 446- tive principal with Birmingham- Integrated Real Abler, Jones Lang need to be doing 6059, [email protected] based Core Partners LLC. Estate Solutions Inc. LaSalle, Kojaian work to the Latessa WEB EDITOR Gary Anglebrandt, (313) 446-1621, “This intersection wouldn’t see and James Dingeman Management Co. north or they [email protected] EDITORIAL SUPPORT Robertta Reiff (313) 446- this level of improvement without III, CBRE need to work with other Troy com- 0419, YahNica Crawford, (313) 446-0329 this deal,” he said. Statistics panies. NEWSROOM (313) 446-0329, FAX (313) 446- But in the process, Rehmann is “Troy is its own world, in some 1687 TIP LINE (313) 446-6766 leaving its former home in the Office space Vacancy 3Q absorption* YTD absorption respects,” he said. REPORTERS (sq. ft.) rate (sq. ft.) (sq. ft.) North Troy Corporate Park complex, Still, it’s a city that has a deep Daniel Duggan, senior reporter: Covers retail, real Troy 12.9M 34.8% 49,000 168,000 estate and hospitality. (313) 446-0414 or further hurting the 2 million- roster of retail and restaurant [email protected] Metro Detroit 74.5M 28.1% 139,000 416,000 Jay Greene, senior reporter: Covers health care, square-foot portfolio and moving amenities that will keep it as an at- insurance and the environment. (313) 446-0325 or its occupancy to 25 percent. * Absorption is the net of space that was recently leased minus space that was vacated. tractive location, he said. [email protected]. Chad Halcom: Covers law, non-automotive Similarly, Westlake Village, Source: CBRE But if it continues at the current manufacturing, defense contracting and Oakland and Macomb counties. (313) 446-6796 or Calif.-based J.D. Power and Associ- level of leasing growth, it’s going [email protected]. ates is moving from the Timber- tinues to hurt buildings in the city, Inc. now acting as receiver. The to take at least 15 years to be back Tom Henderson: Covers banking, finance, technology and biotechnology. (313) 446-0337 or land II building at 5435 Corporate with the latest casualty being the building will be renamed Centen- to where it was several years ago. [email protected]. Drive into Building B of the Troy 294,000-square-foot building at 100 nial Center. “Even if you get a company that Nancy Kaffer: Covers small business, the city of Detroit, Wayne County government. (313) 446- Officentre at 320 E. Big Beaver. E. Big Beaver. One bright spot was a move by T- comes to town, wants to put a stake 0412 or [email protected]. The 40,000-square-foot deal adds Once almost completely leased Systems North America Inc., a sub- in the ground in Troy and make Bill Shea, enterprise editor: Covers media, advertising and marketing, the business of sports, to the recent momentum for the by AT&T Inc., the building became sidiary of Germany-based Deutsche that their home base, you’re still and transportation. (313) 446-1626 or Officentre buildings, but adds to almost fully vacant when the Dal- Telekom AG, leaving 3499 Hamlin looking at a long time to get that [email protected]. Nathan Skid: Multimedia reporter. Also covers the the losses at the Timberland build- las-based company moved out in a Road in Rochester Hills to take market back,” he said. “In that food industry and entertainment. (313) 446-1654, ings. consolidation two years ago. 20,000 square feet in the PNC Tow- case, you’re looking at a seven- [email protected]. Sherri Welch: Covers nonprofits and services. It’s a loss that follows Title Source The building had been owned by er. year horizon rather than a 15-year (313) 446-1694 or [email protected] Inc., which is set to move out of the a group of investors. The lender The deal brings PNC close to 90 horizon.” Dustin Walsh: Covers auto suppliers, steel, higher education and Livingston and Washtenaw Timberland IV building at 1450 took possession of the building, percent occupancy. Daniel Duggan: (313) 446-0414, counties. (313) 446-6042 or [email protected] Long Lake. with Farmington Hills-based Fried- It’s natural that Troy will con- [email protected]. Twitter: LANSING BUREAU Amy Lane: Covers business issues at the Capitol, The lack of new absorption con- man Integrated Real Estate Solutions tinue to maintain its roster of ten- @d_duggan telecommunications and utilities. (517) 371-5355, FAX (517) 371-2492, [email protected]. or 115 W. Allegan, Suite 220, Lansing 48933. ADVERTISING ADVERTISING DIRECTOR Marla Wise, (313) 446- 6032 or [email protected] SALES INQUIRIES: (313) 446-6052; FAX (313) Tax breaks: City Council members decry job cuts 393-0997 ADVERTISING SALES Christine Galasso, Matthew J. Langan, Lori Tournay Liggett, Tamara Rokowski, ■ From Page 3 Cheryl Rothe, Dale Smolinski CLASSIFIED SALES (313)-446-0351 more than 1,000 workers at its De- American Axle avoided its own ments, Cockrel said. sible of American Axle not to seek MARKETING MANAGER Jeff Kapuscinski troit manufacturing complex since bankruptcy after GM gave the sup- “We’re willing to suspend three an extension. EVENTS DIRECTOR Nicole LaPointe 2008 after the council extended plier $110 million in cash, a $100 of the abatements going forward if “Someone in government SENIOR PRODUCER FOR DIGITAL/ONLINE PRODUCTS Pierrette Dagg abatements that saved the compa- million line of credit and 10-day that buys some goodwill with the thought this was a good program MARKETING ARTIST Sylvia Kolaski ny as much as $534,000 annually payment terms in exchange for the council, but I’m not sure what and the incentives were warrant- SALES SUPPORT Suzanne Janik, YahNica Crawford over the past decade, according to right to buy up to 20 percent of we’re willing to give back (given ed, and that’s what we’re trying to AUDIENCE DEVELOPMENT MANAGER Candice Yopp council documents. Cockrel was American Axle’s stock. the circumstances of the industry take advantage of,” he said. “There MARKETING COORDINATOR Jenny Griffith president of the council at that The company recovered in 2010 collapse during that period),” are investment dollars on the CUSTOMER SERVICE time.The council was on recess, with the rest of the supply base, Keyes said. table, and that sort of quid pro quo PRODUCTION MANAGER Wendy Kobylarz and Cockrel called a special meet- generating net income of $115.4 Also at stake in the extension is is a good thing for everyone.” PRODUCTION SUPERVISOR Larry Williams ing to approve the tax abatements. million on revenue of $2.3 billion. a new company and new jobs. American Axle will make its MAIN NUMBER: Call (877) 824-9374 or write [email protected] “They said they needed to get it However, the supplier still American Axle is looking to case to City Council during its SUBSCRIPTIONS $59 one year, $98 two years. done or they’d move jobs to Mexi- couldn’t remedy its issues with the lease 300,000 square feet of its De- Dec. 1 meeting. Out of state, $79 one year, $138 for two years. Outside U.S.A., add $48 per year to out-of-state co,” Cockrel Jr. said. “I called UAW. After failing to reach an troit plant to a new trucking com- “I can appreciate the fact that rate for surface mail. Call (313) 446-0450 or members back during a recess for a agreement for its UAW workers at ponents joint venture, Detroit Man- we’re standing in front of the coun- (877) 824-9374. special vote, and within two years the Detroit complex in July, Amer- ufacturing Systems LLC, founded by cil at the worst possible time and SINGLE COPIES: (877) 824-9374. REPRINTS: (800) 290-5460, ext. 125; they moved to Mexico anyway. It’s ican Axle announced it would Wayne-based Rush Trucking Inc. asking for relief,” Keyes said. “It’s (717) 505-9701, ext. 136; or rosie.hassell left a bad taste in our mouths.” close the plant in February 2012. CEO Andra Rush and a yet-to-be a difficult time for Detroit, but @theygsgroup.com. TO FIND A DATE A STORY WAS PUBLISHED: Steven Keyes, American Axle’s UAW Vice President Cindy determined partner. there is still, even in this environ- (313) 446-0367 or e-mail [email protected].

executive direc- Estrada, in response to the plant The new company will create ment, an opportunity in what re- CRAIN’S DETROIT BUSINESS IS PUBLISHED BY tor of adminis- closure an- upward of 401 jobs by the end of naissance zones provide. In this CRAIN COMMUNICATIONS INC. tration and le- nouncement, 2013, according to City Council case, it’s a win-win-win.” CHAIRMAN Keith E. Crain PRESIDENT Rance Crain gal, said the said in a press documents. If American Axle clears the hur- SECRETARY Merrilee Crain industry col- release, “UAW Rush wants a 15-year lease for dle of the City Ccouncil, it still TREASURER Mary Kay Crain Executive Vice President/Operations lapse and the members found the space, but without the renais- must receive approval from the William A. Morrow bankruptcy of dramatic cost sance zone extension, American Michigan Strategic Fund Board, said Group Vice President/Technology, Manufacturing, Circulation its largest cus- savings to make Axle would have to revisit that dis- Michael Shore, director of corpo- Robert C. Adams tomer, General the Detroit plant cussion, Keyes said. rate communications for the Michi- Vice President/Production & Manufacturing Dave Kamis Motors Co., put competitive, “Rush has physical require- gan Economic Development Corp. Chief Information Officer the company on and instead of ments that would require invest- Carol Wright, principal at Paul Dalpiaz Keyes its heels. assigning ment, and for them to invest a few Rehmann LLC in Troy, said the use Director of Audience Development Operations Estrada Michelle Roth “We were fighting for our lives enough work to million (dollars), they want a long- of renaissance zones are becoming G.D. Crain Jr. Founder (1885-1973) in 2008, 2009 after an extended keep the facility open and prof- term lease,” Keyes said. “Without rare as the MEDC is looking at Mrs. G.D. Crain Jr. Chairman (1911-1996) EDITORIAL & BUSINESS OFFICES: UAW strike in 2008,” he said. “We itable, AAM (American Axle) is the extension of the renaissance whether what businesses are enti- 1155 Gratiot Ave., Detroit MI 48207-2732; (313) had to make those gut-wrenching running from Detroit.” zone, that becomes a much riskier tled to equals economic develop- 446-6000 Cable address: TWX 248-221-5122 AUTNEW DET decisions.” The business leaving the Detroit prospect for us.” ment. CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 American Axle reported a loss of plant in February is going to its Rush is also trying to secure “The state is really looking at the is published weekly, except for a special issue the third week of January, a special issue the fourth $1.2 billion after the strike in 2008 plant in Three Rivers, according to $7 million Michigan Economic entitlement type of mentality and week of August, and no issue the third week of and a loss of $253 million in 2009 af- American Axle. Growth Authority tax credits. whether these programs make good December by Crain Communications Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. Periodicals ter sales plunged 29 percent to $1.5 Per the recommendation of No deal between Rush and business sense,” she said. “They are postage paid at Detroit, MI and additional mailing billion in 2009 from $2.1 billion in Irvin Corley Jr., the council’s fis- American Axle has been signed. saying, ‘Do we have to give them all offices. POSTMASTER: Send address changes to CRAIN’S DETROIT BUSINESS, Circulation 2008. cal analysis division, the supplier Cockrel said the joint venture this credit to achieve all the eco- Department, P.O. Box 07925, Detroit, MI 48207- Many of its plants were closed or is willing to forgo three out of the sounds promising, but the council nomic development we want?’” 9732. GST # 136760444. Printed in U.S.A. Entire contents copyright 2011 by Crain consolidated, like the Detroit com- four abatements on the property. needs more time to review the Dustin Walsh: (313) 446-6042, Communications Inc. All rights reserved. plex, as it shed employees down to But the council would like to be deal. [email protected]. Twitter: Reproduction or use of editorial content in any fewer than 7,000 from 13,000 in 2007. repaid on a portion of those abate- Keyes said it would be irrespon- @dustinpwalsh manner without permission is strictly prohibited. 20111128-NEWS--0026-NAT-CCI-CD_-- 11/23/2011 5:06 PM Page 1

Page 26 CRAIN’S DETROIT BUSINESS November 28, 2011 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF NOV. 19-25

sity of Michigan-Dearborn’s In- when Mike Stoops was fired a $327 million budget vestment Challenge, co- Michigan gets on Oct. 10 after a 1-5 start. deficit. sponsored by Crain’s De- Ⅲ The Michigan Supreme History gets troit Business. Court says a new law taxing The yearlong simulated $150 million for OTHER NEWS public pensions does not stock investment and trad- Ⅲ Michigan will add violate the state Constitu- ing competition is free and nearly 32,000 jobs in 2012 tion. But the court struck open to the public. Partici- high-speed rail down a provision that bit of editing and an additional 45,000 in pants will manage a $1 mil- 2013, according to University would have determined eli- lion mock portfolio for a ay LaHood, U.S. of Michigan’s Research gibility for income tax ex- chance to win $2,500 in real Transportation sec- Seminar in Quantitative emptions and deductions R retary, says he has on the basis of household money each quarter. Economics annual Novem- at new jail site Brent Noh, a student at the awarded ber resources, phasing out ex- University of Michigan’s Ross $150 mil- forecast emptions for higher-in- lion to he con- School of Business who was of the come taxpayers. State offi- Michi- struction the winner of the quarter state’s cials expect the law will gan to T site for the ended Sept. 30, said he had econo- generate as much as enable new $220 million fun playing the markets with my. $330 million in 2013. the Michi- Wayne County people tied to the university. Michi- Ⅲ The Detroit Science gan De- jail includes a “I used a lot of technical gan will Center plans to reopen this partment large sign facing analysis during this compe- add Saturday, 5-9 p.m., for Noel of Trans- the corner of Gra- tition,” Noh said. “I took ad- 63,000 Night, to provide free ac- portation to buy much of tiot Avenue and vantage of the past sum- jobs in 2011, and the unem- cess to its hands-on ex- the Chicago-to-Detroit rail St. Antoine mer’s high uncertainty and ployment rate will drop hibits and paid access to NATHAN SKID/CDB corridor for high-speed Street, and it dis- volatility. There was no one from an average of 10.7 per- “Dinosaurs Unearthed” The red circle shows where the names of passenger service. plays the names strategy I used; rather I kept cent in 2011 to 10.4 percent and the museum’s Imax Azzam Elder and Turkia Awada Mullin were The project is expected to theater and planetarium. of the officials re- covered on this sign at the construction site tweaking around my strate- in 2012 and 10 percent in create 800 jobs this spring. Midtown Detroit President sponsible for of the new Wayne County Jail. gy and adjusting to the mar- 2013, the economists said. making the pro- ket. Sometimes a system Ⅲ Darrell Wheeler, senior Sue Mosey offered a grant ject happen. Rehmann acquires works for one or two weeks. N THE MOVE managing director of com- of an undisclosed amount Some makeshift editing Since this competition did O mercial mortgage-backed to enable the one-night re- has been done to the sign Mt. Clemens firm not allow day-trading, I had Ⅲ Irene Spanos was security strategy at opening. lately, however. Saginaw-based Rehmann to keep in mind to trade at named to succeed Maureen New York-based Until recently, former LLC continues to expand its appropriate times.” Donohue Krauss as Oakland Amherst Securities Wayne County Executive Az- Southeast Michigan pres- To register, visit County’s director of eco- Group LP, raised zam Elder and former Wayne ence. In a deal that goes into www.crainsdetroit.com nomic development and questions about the County Economic Develop- effect on Jan. 1, the account- /investmentchallenge. community affairs. Spanos timing of a recent ment Chief Turkia Awada ing and financial services was previously a senior Livonia real estate Mullin were prominently list- firm will add the eight asso- business development rep- deal and whether ed on it, along with the rest ciates of Mt. Clemens-based BITS & PIECES resentative in the depart- Bloomfield Hills- of the county officials, the Goerlich, Richert & Kaiser PLLC. Ⅲ Jon Barfield, chairman, ment and led the Medical based real estate Wayne County Commission, The acquisition is president and CEO of Livo- Main Street program. investor Michael and everyone else involved Rehmann’s fifth in the re- nia-based Bartech Group, was Krauss is vice president of Kojaian had too close a re- in closing the deal. lationship with the firm gion since the beginning of presented the Distinguished economic development and Now, a white patch covers that sold him a $46.8 mil- Ⅲ Tickets for the North 2009. The firm’s members Eagle Scout Award by the Boys business attraction at the Elder’s and Mullin’s names. lion loan for $8.4 million. American International Auto will move into 40,000 Scouts of America on Nov. 8 at Detroit Regional Chamber. Elder resigned voluntari- The New York-based Show’s black tie Charity square feet of space at 1500 The Henry Ford. The award is Also, Daniel Hunter was ly after his name was tied W. Big Beaver in Troy, named deputy director of loan servicing company C- Preview Jan. 13 at Cobo too closely to a scandalous for Eagle Scouts who as which it moved into on Oct. economic development and III Capital Partners LLC gave Center are on sale for $250, severance payment made to adults have “continued to 31. (See story, Page 3.) community affairs. He had Kojaian the discounted with proceeds from the Mullin when she left the live out the integrity and This month, Rehmann fi- been manager of planning loan payoff in early Octo- event supporting Boys & county voluntarily for a morals rooted in Scouting” Girls Clubs of Southeastern nalized a lease on 3,000 and economic development ber while the two buildings $250,000-a-year job as CEO of and have impacted their Michigan, Boys Hope Girls square feet in the Dime for the county. The posi- in the Victor Park office Detroit Metropolitan Airport, community through service. Hope of Detroit, The Chil- Building at 719 Griswold tion has been vacant since complex were vacant. The from which she has since Ⅲ Sheri Heiney, director of deal is similar to ones land- dren’s Center, Judson Center, St., the first tenant signed July 2009. been fired. The records of the Rochester Regional Cham- lords across the country The Detroit Institute for Chil- since the building was pur- Ⅲ Kate both have been subpoenaed ber of Commerce, has been have been getting. dren, Think Detroit PAL, chased by Quicken Loans Inc. Kohn-Par- by the FBI in an ongoing in- given the 2011 Michigan But immediately after March of Dimes, Children’s founder Dan Gilbert. rott has vestigation into corruption Chamber Professional getting the deal, Kojaian Hospital of Michigan Founda- been ap- in the county. Award by the Michigan Asso- announced a 340,000- tion and the DADA Charitable pointed Cynics will wonder if December’s the month to ciation of Chamber Profession- square-foot lease with Foundation Fund. Contact: CEO of the more sign editing will be als. The honor is based on Novi-based Trinity Health to charitypreview.com or Greater De- needed by the time the jail register for stock challenge continuing education, pro- fully occupy the two build- (888) 838-7500. troit Area is finished — and if anyone Registration will be open fessional service and contri- ings, recently vacated by Ⅲ Detroit Pistons owner Health pasted over will end up in- Dec. 1-31 for the quarter be- butions to organizational Kohn-Parrott Quicken Loans Inc. Tom Gores is selling the San side the facility. ginning Jan. 1 of the Univer- performance. Council. Ⅲ Focus: Hope this week Diego Union-Tribune report- Kohn-Parrott, treasurer of will lay off 70 employees in edly for more than the GDAHC, succeeds Ver- its training programs and $110 million to Manchester nice Davis-Anthony, who re- put 225 students on indefi- Financial Group, a San tired. nite vacation while it Diego-based hotel and com- Ⅲ Timothy Kuniskis was awaits final word on fund- mercial real estate firm. named head of the Fiat ing for the current fiscal BEST FROM THE BLOGS brand for North America, year from the federal gov- READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS replacing Laura Soave, who ernment, which is in bud- OBITUARIES left the company to pursue get gridlock. It fears it also Ⅲ Ruth Cain, longtime More than a Corktown rehab Verlander will do just fine other interests. Kuniskis, may have to suspend its Detroit-area journalist and most recently was director engineering program in public relations executive, A patchwork of of marketing for the entrepreneurs is helping Verlander won’t December, which would af- died of heart failure Nov. Chrysler and Fiat brands. Phil Cooley restore an have“ to scrimp despite fect 54 students. 19. She was 87. 80-year-old vacant not getting an MVP Soave was one of Crain’s Ⅲ Roy Roberts, emer- Ⅲ John building into a place bonus: Next season, Women to Watch for 2011. gency manager of the De- Smale, ex- where entrepreneurs, his salary escalates Ⅲ Former University of troit Public Schools, an- chairman 56 percent to artists, craftsman and Michigan coach Rich Ro- of General e $20.1 million nounced that the district urban pioneers can driguez on Tuesday will be generated its first annual Motors stake a claim in the introduced as the University operating surplus since Corp., died renaissance of Detroit. ” of Arizona Wildcats’ 30th 2007 and reduced its nega- Nov. 19 of Watch the video head coach since the pro- tive fund balance by more complica- Reporter Nathan Skid’s Detroit-area restaurant blog Reporter Bill Shea’s “Shea’s Stadium” blog on the gram began in 1899. He re- than $43 million for the tions from Smale can be found at www.crainsdetroit.com/skid business of sports can be found places interim coach Tim 2010-11 fiscal year. It has pulmonary at www.crainsdetroit.com/sheasstadium Kish, who took over the team been working to eliminate fibrosis. He was 84. WNpageAD.qxp 9/14/2011 11:12 AM Page 1

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