20131021-NEWS--0001-NAT-CCI-CD_-- 10/18/20135:46PMPage1 ©Entire contentscopyright2013byCrainCommunicationsInc.Allrightsreserved in 2012. in 2013,upfrom$152million than $200millioninrevenue ager attheBurtonlocation. serve asAlta’sbranchman- owner ofEvans,nowwill equipment rentalsegments.” tion tool,aerialliftandpower base, particularlyinconstruc- lished averyloyalcustomer ment. “Inthattime,theyestab- CEO ofAlta,saidinastate- Steven Greenawalt business forover32years,” a solidplayerintherental and constructioncustomers. supply businessforindustrial Evans isacontractorrental tions inBurtonnearFlint. 25 employeesatEvans’opera- and excavators,willretainthe equipment suchasforklifts not disclosed. Equipment Co.Inc. quired theassetsof Co. acquires rentalcompany Wixom’s AltaEquipment lot inlife,Page4 cars, red-tapedelayistheir For manydonatedpolice ever for3rdquarter VC dealsinstatearemost PJ’s workstoturnaprofit As newwateringholesopen, 2013; 2014outlookuncertain Health systemshavegood

NEWSPAPER www.crainsdetroit.com Vol.29,No.43 This JustIn Inside Page 3 Alta isontrackformore David Glass “Evans Equipmenthasbeen Alta, whichsellsindustrial Wixom-based said Fridaythatithasac- , formerco- — Alta Equipment , founderand Chris Gautz Terms were Evans

LARRY PEPLIN SUZETTE HACKNEY ings, sightunseen,for$4.2millionand quired thetwodowntownDetroitbuild- called the economic rebound. nation asmetroDetroitcontinuesits ing toaninfluxofinvestmentfromthe tate developer buildings waswonbyChinesereales- Stott andformer September’s auctionsaleoftheDavid Good dealsinreal estatedraw investors; more expected The DspeakstoChinesebiz itable. Justfourorfiveoftheprofes- an uphillbattletomakeateamprof- land byDanGilbert,itstillwillface ily winsagainstarivalbidforthe troit. plan tobringthesportmetroDe- be theculminationofathree-year Wayne Countyjailsite.Ifitis,will cessful bidderfortheunfinished T Backers mustwinsitebid,beatoddsonprofitability Backers mustwinsitebid,beatoddsonprofitability The Shanghai-basedcompany,also Crain’s The growingwealthinChinaislead- free kick no soccer Detroit free kick no soccer Detroit But eveniftheApostolopoulosfam- CRAIN’S DETROITBUSINESS B CRAIN’S DETROITBUSINESS this weekifitwillbethesuc- team isexpectedtofindout local he familybehindaplanfor first reportedlastweekthat Dongdu InternationalGroup AND Y D B DDI Group USTIN Major LeagueSoccer Y D B USTIN Detroit FreePress ILL W . ALSH S W HEA ALSH , ac- OCTOBER 21–27,2013 ATTORNEYS ATLAW nity thatwhilethecityisgoingthrough ve amongstthelocalbusinesscommu- itage andpositioninginthecity.” properties andappreciatedtheirher- said it“carefullyresearchedthetwo the deals.Inastatement,company but declinedtocommentonthefirmor Associates PC ington Hills-basedlawfirm the crainsdetroit.comstory. dinated thesaleonbehalfofseller,in Snoek, arealestateconsultantwhocoor- troit-based $9.4 million,respectively,outbiddingDe- Greg Elliott,anattorneywithFarm- The companyalso“respectedthedri- League according topublicreports. majority oftheelite enterprise isfarfromagiven. the Detroitteamamoney-making spend themoneyrequiredtomake growing astablefanbasethatwill air soccerstadium,itssuccessin use developmentincludinganopen- county landandturnitintoamixed- successful initsbidtopurchasethe ation told money, sourcesfamiliarwiththesitu- sional soccerleague’s19clubsmake Pro soccerisaharddollar:Eventhe That meansevenifthefamilyis Rock VenturesLLC soccer teamsareinthered, , representedDDIlocally Crain’s. A BETTERPARTNERSHIP (see ouradonpage9) Yearning for legalpeace ofmind? English Premier See Soccer,Page22 , saidRyan Hoffert & growth inChina. midst ofinsecurityandslower strong investmentoptionsinthe U.S. andlocalmarketsremain influx ofChineseinvestmentasthe pare itselfformoredeals.There’san ket saidmetroDetroitshouldpre- as propertiesinCalifornia. du andotherChinesecities,aswell erties inShanghai,Nanjing,Cheng- movement torejuvenatethecity.” some difficultiesthereisagrowing Local expertsontheChinesemar- Established in1989,DDIhasprop-

ASSOCIATED PRESS ‰ Clinton islative approval. by thebusinesscommunityandawaitingleg- will facealaundrylistofchangesbeingpushed surer onNov.1,theformerinsuranceexecutive for taxpayersto,insomecases,workwiththe termining taxliabilityandinstituteaprogram greatly limittheuseofindirectauditinginde- partment tocompleteataxauditforbusiness, ture wouldsetaone-yeardeadlineforthede- those thatcanbenegotiatedwiththeIRS. mise arrangementsandpaymentplans,suchas new Treasury chief on bizagendafor Quicker audits Page 21 Treasury practices, Bills takeaimat 8 When KevinClintontakesoverasstatetrea- Bills workingtheirwaythroughtheLegisla- FIXES See China,Page25 CAPITOL CORRESPONDENT B Y C primary objectives. ing businesswhilemeetingits customer-friendly wayofdo- being askedtoadoptamore partment intransition,one al issues.He’sleavingade- tion thismonth,citingperson- Dillon announcedhisresigna- partment ofTreasury making lower-costcompro- dits andnomechanismfor lengthy timelinesfortaxau- some ofitspractices,suchas ness groupsarerankledover funds stateoperations,busi- job tocollectrevenuethat HRIS While it’sthe Outgoing TreasurerAndy Detroit-based RockVentures. $4.2 million,outbidding to DDIGroupofShanghaifor The DavidStottbuildingsold G See Treasury,Page21 AUTZ $2 acopy;$59year WNJ.com

Michigan De- ’s primary OTRGROUP COSTAR ® 20131021-NEWS--0002-NAT-CCI-CD_-- 10/18/2013 4:52 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS October 21, 2013

MICHIGAN BRIEFS Amtrak ridership in Michigan Ⅲ A Swedish company with the incredibly appropriate name grew faster than overall U.S. With Great Lakes levels so low, talk turns to adapting Swedish Biogas is turning human Amtrak’s Michigan ridership in- waste into fuel as part of a project creased 4 percent in the fiscal year The implications of lower water levels are numer- University’s Muskegon campus. in Flint. But MLive.com reports that ended Sept. 30, compared with ous for Michigan. The Great Lakes provide much of The city of Grand Rapids embraced climate adapta- that the company says Flint’s 1 percent nationwide, MLive.com the state’s drinking water and are used for com- tion as part of the five-year Sustainability Plan it shrinking population is slowing reported. Nearly 909,000 people got merce ranging from shipping to fishing to recre- passed in 2010. The city has reduced its consumption its growth, so the company is con- on or off trains. ational boating and tourism. of water from Lake Michigan by more than 16 percent sidering bringing in waste from The Ann Arbor station saw the For every inch the water level drops, a freighter has since 2000 and has focused on removing pollution nearby communities. greatest increase in ridership at 10 to decrease its cargo by 50-270 tons, industry sources from combined sewer overflows into the Grand River, Ⅲ A billboard near the I-69 inter- said. This leads to companies paying for space on a Lake Michigan tributary. It’s also looking at conser- percent, while Detroit grew 6 per- change with I-75 reads “I’m Con- ships they are unable to use. Although seasonal vation measures, such as reducing losses in the city’s cerned About the Blueberries,” but cent, Kalamazoo 4 percent and dredging provides a short-term fix, the practice is ex- water system, updating plumbing and reusing gray no one knows who put it up, the Dearborn less than 1 percent. Traf- pensive and funding has become a political issue. water for irrigation, said Haris Alibasic, director of Flint Journal reported. The CBS Out- fic in East Lansing dropped about “I think we need to change our mindset so that the city’s office of energy and sustainability. doors sign company only will say 3 percent. rather than reacting to these issues every time, we The infrastructure piece, he said, “is really some- that it was put up anonymously. Ticket revenue grew 6 percent to need to start thinking about how we can be adaptive thing that governments — national, state and local Ⅲ HopCat Grand Rapids was voted $28.8 million. to these issues,” said Alan Steinman, director of the — have to focus on.” the second-greatest beer bar in the Annis Water Resources Institute at Grand Valley State — MiBiz U.S. in a competition conducted by Whatever twerks: You gotta CraftBeer.com, MLive.com report- hand it to this Jackson foam firm when the trick-or-treaters come written a couple of times about the System plans to replace its Sparrow ed. For you road-trippers out around this season and you’re won- effort to attract new companies to a Ionia Hospital east of Grand Rapids there, No. 1 was MeKong Restaurant, A quick check of the Crain’s dering what is up with that giant 92-acre site in the Grand Rapids with a $25 million hospital expect- a Vietnamese restaurant in Rich- archives reveals that the word hand, now you know. And let’s end suburb of Wyoming — the former ed to open in 2015, The Associated mond, Va. “twerk” (please don’t make us tell this before Crain’s gets too topical grounds of a General Motors stamp- Press reported. Sparrow said it’s Find business news from you what that means) never has ap- for its own good. ing plant. Last week, MLive.com re- the first new hospital in mid- around the state at crainsdetroit peared in this publication … until ported, Wyoming officials said J.O. Michigan in decades. The two-sto- .com/crainsmichiganbusiness. now. Jackson-based Brooklyn Prod- Galloup, a subsidiary of Portage- ry building will have 22 beds and Sign up for Crain's Michigan ucts International Inc. expects to sell MICH-CELLANEOUS based Kendall Electric Inc., would be expanded emergency, surgery and Business e-newsletter at crains about 10,000 foam hands of the type Ⅲ Flint-based Diplomat Specialty the first to occupy the site. Kendall outpatient services. detroit.com/emailsignup. made, uh, famous by Miley Cyrus Pharmacy, the nation’s largest inde- bought the parcel for $350,000. during her recent performance at pendent specialty pharmacy, is Ⅲ Midland-based Dow Chemical the MTV Video Music Awards. shortening its name to Diplomat, Co. has sold its global polypropy- CORRECTIONS MLive.com reports that the foam MLive.com reported. Co-founder lene licensing and catalysts busi- Ⅲ An article on Page 6 in The Michigan Deal supplement published hand is being produced under a con- and CEO Phil Hagerman said the ness to W.R. Grace & Co. for $500 mil- Oct. 14 misstated the name of the son of Homer Stryker, founder of Stryk- tract with an advertising agency new name allows Diplomat to op- lion, MLive.com reported. Pending er Corp. Homer Stryker’s son was named Lee Stryker. Also, in a story on and is available on Amazon.com un- erate “beyond the borders of a typ- regulatory OK, the deal is expected Page 38, the title for Jim Carter of Ernst & Young was misstated. It is Amer- der “TwerkFinger Enterprises.” ical specialty pharmacy.” to close by the end of the year. icas automotive transaction advisory leader. (Pause while you order online.) So Ⅲ Crain’s Michigan Business has Ⅲ Lansing-based Sparrow Health

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October 21, 2013 CRAIN’S DETROIT BUSINESS Page 3 Health care under reform: Go figure Second Stage

health insurance up. … Many will have higher co- JOHN SOBCZAK Uncertainty clouds 2014 as exchange that pays and deductibles. How that begins coverage will work out, good or bad, we Jan. 1 also reside don’t know.” systems end 2013 on strong note in the five-coun- But Gusho said St. Joseph is op- ty metro Detroit timistic that Medicaid expansion, able Care Act. BY JAY GREENE area, the center which begins April 1, will lead to Some 299,811, or 47 percent, of CRAIN’S DETROIT BUSINESS said. an increase in patient revenue and Michigan’s 638,000 uninsured “There is un- a decrease in charity care. Southeast Michigan health sys- adults who will be eligible for Med- certainty with Paul Castillo, CFO of the Univer- tem CFOs say projecting budgets icaid benefits starting April 1 are in the exchanges,” sity of Michigan Health System, said has never been as difficult as it is Southeast Michigan, according to Gusho said Mike University of Michigan Hospitals and for 2014 because of the unknown the Ann Arbor-based Center for Company drills down to find numbers of newly insured patients Healthcare Research & Transformation. Gusho, CFO with the six-hospital Health Centers, the delivery arm of and Medicaid beneficiaries who Some 148,584, or 43 percent, of the St. Joseph Mercy Health System in the Ann Arbor-based health sys- new business, Page 11 will pass through their doors from state’s estimated 347,356 insured Ann Arbor. “We don’t know how tem, is projecting neutral to a the Patient Protection and Afford- adults eligible for tax credits in the many patients insured will show See Systems, Page 24

Company index These companies have significant mention in this week’s Crain’s Detroit Business: Mich. posts 400 Main ...... 14 Alta Equipment ...... 1 Arboretum Ventures ...... 3 ArborMatrix ...... 25 Assets International ...... 11 best 3Q for Beaumont Health System ...... 24 Beringea ...... 25 Binson’s Home Health Centers ...... 6 BoostUp ...... 13 Capitol Bancorp ...... 15 number of Center for Healthcare Research & Transformation . . 3 Delphinus Medical Technologies ...... 3 Detroit Chinese Business Association ...... 25 Detroit Venture Partners ...... 13, 25 VC deals D:hive ...... 11 Downtown Detroit Partnership ...... 4 Evans Equipment ...... 1 15 investments General Motors ...... 4 General Sports and Entertainment ...... 22 Genesys Health Equipment ...... 6 total $28.6M Harbortown Riverside ...... 14 Hart Medical Equipment ...... 6 BY AMY HAIMERL Henry Ford Health System ...... 6, 24 Hoffert & Associates ...... 1 CRAIN’S DETROIT BUSINESS Howard & Howard Attorneys ...... 25 Michigan posted its best third IncWell ...... 13 quarter for the number of venture LevelEleven ...... 25 capital deals — and its second-best McLaren Home Medical ...... 6 quarter ever — in three months Michigan Assoc. of Certified Public Accountants . . 21 ended in September. Michigan Chamber of Commerce ...... 21 Michigan Commerce Bank ...... 15 Fifteen deals worth $28.6 million Michigan Economic Development ...... 25 were completed in the third quar- Michigan Restaurant Association...... 24 ter of 2013, according to the Price- SUZETTE HACKNEY “I still have not been able to pay myself anything in six years,” said PJ Ryder, owner of PJ’s Lager House in Corktown. Michigan Strategic Fund ...... 14 waterhouseCoopers/National Venture Ryder thinks patrons assume he’s doing well because the bar and live music venue has been around for nearly 100 years. Miller, Canfield, Paddock and Stone ...... 21 Capital Association MoneyTree Re- Motozuma ...... 13 port based on data from Thomson North Coast Technology Ventures ...... 3 Reuters. The last time the state did Oakwood Healthcare ...... 24 more deals was in the first quarter Penske ...... 4 of 2000, when 17 investments PJ’s Lager House ...... 3 worth $143 million were made. Rock Ventures ...... 1, 22 The nearly $30 million in deals A sobering effect St. John Providence Health System ...... 24 done this quarter is Michigan’s St. Joseph Mercy Health System ...... 3 best turnout this year, but it still Slows Bar BQ ...... 3 pales compared to 2012, when the Talmer Bancorp ...... 15 As bars, restaurants pop up, longtime Corktown biz struggles Triumph Gear Systems-Macomb ...... 14 state posted $111.2 million in the University of Michigan ...... 18 third quarter for 13 deals. Overall BY SUZETTE HACKNEY place,” said Ryder, who will celebrate his six-year University of Michigan Health System ...... 3 in 2012, Michigan saw 49 invest- SPEICAL TO CRAIN’S DETROIT BUSINESS anniversary on Oct. 23. “Usually people say, ‘Well, Wright & Filippis ...... 6 ments worth $238.9 million in 2012; I’m not making any money,’ but there’s usually so far in 2013, 37 deals have been aul “PJ” Ryder is at an entrepreneurial cross- something they take home as the owner, as the completed worth $48.2 million. roads: He loves doing business in Detroit but is manager, as the person who is working there every Southeast Michigan companies Pstruggling to make ends meet, having been de- day. I still have not been able to pay myself any- Department index took home 94 percent of the invest- nied bank loans to help relieve some debt obligations. thing in six years. I’m living off the kindness of my ment, with the remaining 6 per- So he is considering selling his rock ‘n’ roll dream. wife, Donna.” BUSINESS DIARY ...... 19 cent landing in Grand Rapids and After all, his Corktown business, PJ’s Lager House, He’s being talked off the “just sell it and move on” CALENDAR ...... 20 Lansing, according to the report. made a profit of just $1,000 last year. cliff by his wife, friends, family members, real es- CAPITOL BRIEFINGS...... 10 Plymouth-based Delphinus Med- Ryder, 59, is one face of reality within the Detroit tate agents, Corktown business neighbors, his ac- CLASSIFIED ADS ...... 21 ical Technologies Inc., which uses 3- restaurant and bar industry, even as new eateries countant and, of course, by the bar’s patrons. None KEITH CRAIN...... 8 D ultrasound imaging to detect and watering holes are popping up in some of the of them want to see the neighborhood joint, with its breast cancer, received the state’s city’s thriving neighborhoods such as Midtown and low-key vibe and beer-and-whiskey attitude, close. LETTERS...... 8 largest round of funding, worth $11 Corktown. And establishments just a stone’s throw Now is not the time to sell, they say. They encour- MARY KRAMER ...... 8 million. Ann Arbor-based Arbore- away from the Lager House, such as Slows Bar BQ age him to stay and fight for Detroit. But those OPINION ...... 8 tum Ventures LLC and North Coast and Sugar House Bar, are by all appearances doing a words aren’t helping him pay the bills. PEOPLE ...... 19 booming business. See VC , Page 25 “I owe just about what I owed when I bought the See Struggle, Page 24 RUMBLINGS ...... 26 WEEK ON THE WEB ...... 26 A little bird told me The early bird gets the news THIS WEEK @ Follow Crain’s staffers by Want statewide business news for breakfast? Sign grabbing their handles at up for the Crain’s Michigan Morning newsletter at WWW.CRAINSDETROIT.COM crainsdetroit.com/twitter. crainsdetroit.com/morning. 20131021-NEWS--0004-NAT-CCI-CD_-- 10/18/2013 5:32 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS October 21, 2013 Legal, tech delays idle half of donated DPD vehicle fleet

BY CHAD HALCOM vice after some new equipment that CRAIN’S DETROIT BUSINESS arrived last week is fully installed. Installations on the Interceptors Large philanthropic efforts of- and Chevrolets may require take a ten come with lofty ambitions. Or few more weeks, Warfield said, al- at least more ambitious delivery though Pordon said the HD video timetables than legal and financial was not expected to be installed in realities allow. some vehicles before February. Take an $8 million collaboration Steve Gorecki, senior manager of of business leaders earlier this year media relations at Schaumburg, to equip the Detroit Police Department Ill.-based Motorola Solutions Inc., with 100 new police cruisers and 23 confirmed that company has ambulances — which were expect- shipped some data terminals for ed to enter service in a few months, the new Detroit police cars and a few months ago, and some of EMS vehicles, but the video equip- which need another three months ment is being supplied to Detroit to complete some needed refits. LARRY PEPLIN from Alameda, Calif.-based Data About half of the donated vehicle About half of the 100 new Detroit police cars await the installation of in-vehicle cameras, as required by a court judgment. 911 Mobile Computer Systems, which fleet still sits parked on a Bloom- that company confirmed Friday. field Township lot along Telegraph ready to go on that. The only holdup neglect of duty in Detroit. We’re not been in their (Detroit’s) fleets “We could have chosen to wait Road, more than 20 miles away is getting some delivered, and it’s just told they won’t be ready until yet and need to be programmed.” and have all the equipment before from Detroit police headquarters. not the fault of anyone locally, not January.” Businesses that collaborated the donation, but we’re choosing Part of the delivery holdup stems of Penske (Corp., which coordinated McQuade has taken part in dis- with Penske on the fleet donation not to do that, because we want the from a July 2003 consent judgment the donations) or of the DPD,” said cussions with the donor business- were Ford Motor Co., Chrysler Group cars (that are ready) available for in federal court, which includes a U.S. Attorney Barbara McQuade. es and with Robert Warshaw, a LLC, Quicken Loans Inc., the Kresge our police now,” Pordon said. Terry Rhadigan, executive di- requirement for the police depart- “The order was placed so the cars court-appointed police monitor in Foundation, General Motors Co., Plat- rector of product and technology ment to outfit all of its patrol cars would have them, but it wasn’t yet charge of overseeing police depart- inum Equity LLC, FirstMerit Bank and communications at GM, said Fri- with in-vehicle camera systems. ready from the manufacturer. But ment compliance with the 2003 Blue Cross Blue Shield of Michigan. “The cars need these in-vehicle that’s nothing anyone could con- judgment in a U.S. Department of day the automaker supplied a po- Robert Warfield, the mayor’s di- cameras, and we’re waiting to be trol, or a part of any malfeasance or Justice lawsuit. The department is lice variant of its Caprice for the rector of communications, told about 93 percent compliant with city and he was not aware of any Crain’s last week that about 55-60 that order and hopes to be fully changes to its specifications while vehicles still need cameras or other compliant soon, she said. it was in production. modifications, but that several Warshaw could not be reached Kevin Frazier, senior vice presi- would enter service within days. for comment. The 2003 consent dent of external affairs and infor- judgment states in part that the de- The 100 police cruisers comprise mation technology at Chrysler, de- partment shall “require … activa- about an even number of Dodge ferred comment on the Detroit tion of scout car video cameras at Charger Pursuits, Ford Taurus In- vehicle fleet to Pordon. all times (an) officer is on patrol.” terceptors and Chevrolet Caprice Chad Halcom: (313) 446-6796, Anthony Pordon, executive vice PPV, and Warfield expects virtually [email protected]. Twitter: president of investor relations and all of the Chargers would be in ser- @chadhalcom corporate development at Penske Corp., said the stored vehicles are undergoing several different refits to incorporate cameras and other new equipment that police officials requested after the first vehicles ar- Your Bank’s rived at the city in the summer. A set of new prisoner partitions for some vehicles just arrived Thursday, he said, and at least one Not Lending? or two additional vehicles have been entering service each week as the modifications get completed. “This has all been known, and it has been in process for some time,” Pordon said of the refits. “The video manufacturer (for the cameras) changed to one with a new high-def- inition camera system, and each ve- hicle can take three to five days to outfit with all of the modifications.” Mayor Dave Bing originally an- nounced in March that the city would get 23 EMS vehicles and up to 100 police patrol cars as part of a col- laboration among local business leaders and city officials. In August, when the first 15 cars and 10 ambu- lances were unveiled to the media, Penske Chairman Roger Penske said the remaining 85 patrol cars ours are. would be on the streets in the next Call for a free consultation. 60 to 90 days — or by next month. Loan amounts: $1,000,000.00 and above. The remaining EMS units would also be ready around year’s end, s Investment Real Estate s Equipment Penske had predicted, replacing MADONNA VISIT DAY s Owner Occupied Real Estate s Turnaround Consulting the city’s entire ambulance fleet. s Lines of Credit s Loan Modifications FOR GRADUATE AND UNDERGRADUATE STUDENTS Pordon and Dave Blaszkiewicz, s Accounts Receivable s Bank Workouts president and CEO of the Downtown Saturday, November 2, 2013 Detroit Partnership, which coordi- 
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6OEFSHSBE nated the donation, said they still expect the full fleet to reach the city Explore our academic programs t Meet our faculty by year’s end, even if some vehicle modifications must happen later. Learn about financial aid t Tour our beautiful campus “We’re trying to outfit those as Apply (we’ll waive the fee) fast as we can, but there are a num- 800.509.3552 ber of electronics and other compo- www.eclipsecapitalgroup.com Register online at madonna.edu/visit or call 734-432-5339 nents and other manufacturer com- 2207 Orchard Lake Road, Sylvan Lake, MI 48320 
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Page 6 CRAIN’S DETROIT BUSINESS October 21, 2013 Health systems merge medical equipment biz into Binson’s affiliate

BY JAY GREENE er this year to win Medicare com- Earlier this month, Genesys five regional systems owned by As- by year-end, Damstra said. CRAIN’S DETROIT BUSINESS petitive bid contracts. Health Equipment and McLaren Home cension Health Michigan. John Polanski, CEO of Henry Other health systems, including Medical signed agreements to Hart will be set up as an operat- Ford’s Community Care Services, Two hospital-based health sys- Henry Ford Health System, are ex- merge their DME operations into ing company to run hospital-based confirmed that Henry Ford is ne- tems in Michigan and an affiliate pected to purchase ownership Hart Medical, said Damstra, Hart DME companies, said Damstra, gotiating to merge its DME compa- of Center Line-based Binson’s Home stakes in Hart Medical, a Grand managing partner and co-owner. who declined to name other health ny into Hart Medical. Health Centers have agreed to Blanc Township-based durable McLaren Home Medical is systems that have expressed inter- “The DME industry … is in merge their operations into Hart medical equipment (DME) compa- owned by Flint-based McLaren est in also joining Hart. chaos because of competitive bid- Medical Equipment Co. to sell ny owned by Binson’s and Mike Health Care and Genesys Health is After the merger, Hart Medical ding,” Polanski said. “Rates were durable medical equipment to se- Damstra, who also owns CareLinc owned by Grand Blanc Township- now employs 85 people and expects cut about 45 percent across the niors after the systems failed earli- Medical Equipment of Grand Rapids. based Genesys Health System, one of to double the number of employees board in seven categories through the bid process.” In July, Medicare began its new competitive bidding contract sys- THE MILLER LAW FIRM SMALL OFFICE • HOME OFFICE tem for the DME industry that not Changing the Odds in our Clients’ Favor only cuts prices — to save Outstanding Selection For Small Medicare about $1 billion annually — but also limits the number of Professional Office or Home Office companies under contract. DME vendors, which include  Free Design Assistance about 400 in Michigan, provide a  Customization - Sizes & Finishes variety of home medical supplies  Professional Installation such as hospital beds, portable  Contemporary or Traditional oxygen systems, diabetic products, knee braces, commodes, walkers and blood pressure monitors. Two large local DME compa- nies, Binson’s and Wright & Filippis, a Rochester Hills-based DME provider, won several Medicare contracts, but had to cut their The Miller Law Firm is Recognized as a prices on at least five contracted products by about 45 percent, exec- Leader in Complex Business Litigation utives said. However, few hospital-owned Q Class actions Q Family law and probate litigation DME companies in Michigan won Q Employment litigation Q Commercial and business lawsuits contracts. As a result, Polanski Q Automotive Supplier Counseling Q Shareholder and partnership disputes SOUTHFIELD 248-353-9880 • TROY 248-649-2070 said, most health systems in

Referral fees honored on contingency fee cases NOVI 248-344-0880 • LAKESIDE 586-843-2000 Michigan have been scrambling to GRAND RAPIDS 616-243-5466 figure out ways to continue to 950 West University Drive, Suite 300 www.gormans.com Rochester, Michigan 48307 248-841-2200 millerlawpc.com Nov_Crain_A serve discharged patients who re- quire home medical equipment. “We did not win any of the con- tracts, and we bid 37 percent less,” Polanski said. “We have not been able to take care of Medicare pa- tients who require DME equip- ment since July 1. We are looking at options from A-Z.” Polanski said 64 percent of com- panies that won bids in Michigan are based out of state. Some have attempted to subcontract with lo- cal DME companies. “They want us to provide ser- vices for below our costs,” he said. Ken Fasse, COO of Binson’s, said Binson’s and Hart Medical are working with the health sys- Checking accounts are boring. But necessary. tems because they have access to the Medicare contracts. Damstra said Hart Medical will Level One My Interest Checking...as exciting as it can be. allow participating health systems 1 to lower operating expenses by ∫ Tiered interest combining purchasing power, con- solidate office departments, stream- ∫ Nationwide free ATM use at any bank line delivery systems and create ∫ Cash back on all debit card transactions2 economies of scale. “This will allow us to continue ∫ Direct Deposit bonus3 to serve our patients in an inte- grated way,” Polanski said. “This ∫ Local and national shopping, dining, travel discounts model will give us a great opportu- nity for growth. Other systems (in Michigan) are looking at joining.” Call Tim Mackay, Consumer Banking Executive Last year, more than six Michi- 248-737-0300 gan-based systems unsuccessfully advocated for changes in the DME Medicare bid process to allow for hospital-based company excep- tions. They argued that patients are discharged more smoothly and readmissions are lower for pa- tients who receive DME equip- ment directly from the hospitals. Systems with DME companies ∫ ∫ include the University of Michigan 32991 Hamilton Court Farmington Hills, MI 48334 levelonebank.com Health System, Beaumont Health Sys- Commercial Banking ∫ Retail Banking ∫ Mortgage Services tem, St. John Providence Health Sys- tem and Oakwood Healthcare. Required Disclosure: 1 Two balance tiers apply; balances $1,500 & above, interest rate 0.299, APY 0.30; balances $0-1,499.99, interest rate 0.099, APY 0.10. Rates are accurate as of 09/26/2013 and are subject to change at any time. APY is the Annual Percentage Yield. Fees may reduce earnings on the account. Minimum opening deposit is $50.00. $10.00 monthly service fee. No monthly service fee with $5,000 average monthly balance, or $25,000 average monthly deposit Jay Greene: (313) 446-0325, relationship balance, or Level One business account ownership. 2 Earn $0.10 cash back on each transaction. Must choose credit at time of purchase. Credits earned will post to account within five days of statement period close. 3 Requires direct deposit of $250 or more posted to account within 90 days of account opening. One-time $15 bonus will be deposited within 60 days of direct deposit posting. Level One reserves the right to change these accounts at any time. [email protected]. Twitter: @jay- bgreene DBpageAD_DBpageAD.qxd 9/25/2013 6:29 PM Page 1

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Page 8 CRAIN’S DETROIT BUSINESS October 21, 2013 OPINION MARY KRAMER Non-Detroit employers Putting focus on talent issues This year marks the paced open positions So do we in Southeast Michigan? 100th anniversary of sometimes by a factor Crain’s is beginning a stronger the assembly line at of 30. focus on workplace and talent is- should withhold taxes Ford Motor Co. But the sad truth? sues, beginning with an e-newslet- In that world-chang- “In our Ford plants ter our custom media division de- o be sustainable, Detroit needs revenue it’s owed — in ing innovation, a rope in Mexico, they arrive buted last week for the Workforce pulled a vehicle chassis better educated, Innovation Network, a coalition of the millions — by residents who don’t voluntarily pay along a line of 84 work- trained and ready for educators and workforce boards. T their income tax. stations where workers the manufacturing line We’ll supplement that with a week- Detroit employers are required to withhold taxes on city performed highly than any U.S. worker,” ly talent report, also online, and residents; so why hasn’t Michigan required non-Detroit-based repetitive manual he said. “People usually new focus in print from our own employers to do the same? tasks. find this surprising.” newsroom. Take a tour of the Surprising was the Last March, the consulting firm In this age of computerized payrolls, this involves another line at the Dearborn understatement. I McKinsey highlighted that millions click of a button in a company’s or payroll vendor’s system. Sure- Truck Plant (aka The Rouge) today heard a collective — and audible — of jobs in the U.S. are unfilled be- ly employers are privy to the legal home address of employees; and you’ll see people at ergonomic gasp in Tetreault’s audience. cause of skill mismatches. People that’s a no-brainer and needed for federal income tax accounting. workstations, robots and comput- In Mexico, graduates of voc-ed looking for work aren’t prepared And employers already withhold state and federal taxes. ers that are mastered by produc- training arrive at Ford knowing for the jobs that are available. tion workers who adapt them to statistics and ratios for torque. So what’s the quickest creden- The state Treasury Department — on its own path to up- the work at hand — such as weld- And the government pays the tial to fill a skilled job? And how grade processes (See story, Page 1) indicated last summer it ing configuration changes to han- wage tab during an introductory do you train to fill it? If you would like to get legislation to make it happen, but some law- dle more types of body styles. phase. have success stories on training makers — and suburban leaders — seem disinclined to help “In other words, it’s not putting But Michigan doesn’t just com- and attracting talent that you’d Detroit — even to collect money it’s legally owed. four screws in a part, repeat,” pete for jobs with Mexico; Kentucky like to share, contact me at James Tetreault, Ford’s vice presi- offers better-trained job candidates, [email protected]. Two things to remember: dent of North American manufac- too, he said. Considering Ford First, more than 20 cities in Michigan levy income taxes. turing, told a group of Conference spends about $400,000 per graduate Mary Kramer is publisher of Such legislation would help all of them. The biggest are Detroit, of Western Wayne elected officials of its vaunted, four-year apprentice- Crain's Detroit Business. Catch her Grand Rapids, Flint, Jackson, Lansing, Muskegon and Saginaw. and business leaders earlier this ship training program, having take on business news at 6:10 a.m. Mondays on the Paul W. Smith show Second, even federal tax authorities are cracking down on in- month in Dearborn. work-ready employees would be at- Fresh from a hiring spree that tractive. Leaders in Louisville and on WJR AM 760 and in her blog at come tax dodgers. Foreign banks soon will be required to send resulted in 8,000 new employees, Lexington “get” what employers www.crainsdetroit.com/kramer. the Internal Revenue Service data on American citizens with off- Tetreault said applications out- need, Tetreault said. E-mail her at [email protected]. shore accounts — or risk curtailed access to U.S. markets. If the U.S. can require foreign banks to cough up data, ask- ing Michigan employers to collect withholding should be a no- brainer. LETTERS TALK ON WEB Fund Common Core standards Tax breaks not enough From www.crainsdetroit.com Note to state lawmakers who are still blocking funding of Council rejects 30-year lease of Belle implementing new Common Core education standards in Editor: and police services for the factories, Isle, proposes 10-year deal instead Michigan for children in K-12: So Quebec-based Exo-s US LLC but their residents can easily con- is moving two factories from tinue working for the company, All the city wants is guarantees Please note the comments made in a Ford Motor Co. speech southern Michigan to northern In- since the new factory is, at the most, about what the state says it in- to elected and business leaders, recapped on this page: Other diana. Given Michigan’s current 22 miles away. The largest source of tends to do. Can you blame them countries are cleaning the clocks of the United States when it tax code, this announcement additional employees near Howe, after the state screwed the city out comes to prepping students for careers and jobs. sounds like a real bonus for Michi- Ind., is Sturgis, Mich. of hundreds of millions of rev- Employers applaud the standards, which were intended to gan and the towns of Mendon and Silver linings aside, tell me enue-sharing dollars because the Centreville. details of the agreement were not set expectations for what students at various grade levels again: Why did we eliminate the Exo-s US must continue to pay Michigan business tax and the written? And suburbanites had should know in math and language. the regular property tax on these personal property tax? Wasn’t it better watch out for the state’s lat- The standards were created by the National Governors As- properties until it sells them. The supposed to reduce business’s cost est scheme of cutting the personal sociation and the Council of Chief State School Officers. But Legislature has already eliminated and get them to stay here in Michi- property business tax with conservative opposition in some states has cast this as a mat- the personal property tax revenue gan? A $2.75 million tax credit ap- promises of replacing that rev- Mendon and Centreville might have enue for local municipalities. ter of local control — even though the standards don’t dictate a pears to be a sweeter carrot. received from the two manufactur- Sharlan Douglas Michael Tucker specific style of learning. ing plants, so no loss there. Royal Oak If jobs and the economy matter, lawmakers should fund The towns no longer bear the bur- their implementation. Or they risk sending jobs like those de- den of providing infrastructure, fire See Letters, Page 9 See Talk, Page 9 scribed by the Ford’s James Tetreault outside Michigan — and Send your letters: Crain’s Detroit Business will consider for publication all signed letters to the editor that do not the U.S. defame individuals or organizations. Letters may be edited for length and clarity. Email [email protected] KEITH CRAIN: We’re the best sports town in the nation We owe our teams a lot of thanks fans and Michigan State pro teams spend hun- have a world-class zoo, great muse- teams get more valuable every over the years for what has to be could pack in another dreds of millions of dol- ums like the Detroit Institute of year. the most enthusiastic group of fans 75,000. Closer to home, lars on payroll for the Arts, and strong performing arts We like them enough to build anywhere in the country. Wayne State’s football best possible rosters. organizations like the Michigan huge monuments for them with There simply isn’t anywhere in team nearly won its na- After all, this is about Opera Theatre and the Detroit lots of taxpayer dollars. That the nation where, like a couple of tional division a couple winning. We have lots Symphony Orchestra. seems to be the cost of keeping our weekends ago, the Pistons were of years back. of fans who expect noth- And we have sports. Detroit is a teams and their owners happy. playing preseason games, the Li- This is big business. ing but victory, and we sports town. Our residents are fa- Sports is a great business that sup- ons were fighting hard to have a This is very big busi- have fans who are eter- natical fans who love their teams ports a lot of other businesses. decent season, hockey was busy ness. They can call it nally patient, waiting more than most fans in the nation. Sportscaster Al Ackerman said with its own preseason, and the “sports” all they want, and hoping for the play- Their loyalty is strong, and it can it best about the Tigers in the last Tigers were fighting to bring home but to owners and ath- offs. be difficult for some fans to juggle World Series championship year the baseball crown. letic directors, it’s sim- It takes certain the seasons. of 1984: Bless you, boys. And, down the road, the Univer- ply big business. things to attract business invest- We love our teams, win or lose. Not just the Tigers, but each and sity of Michigan filled its stadium Fans spend tens of millions of ment: good schools, good workers, They may not always be making every one of our athletes in our fa- with more than 100,000 football dollars to root for their teams. Our hospitals and plenty of culture. We money for their owners, but the vorite Detroit teams. 20131021-NEWS--0009-NAT-CCI-CD_-- 10/17/2013 4:25 PM Page 1

October 21, 2013 CRAIN’S DETROIT BUSINESS Page 9

TALK ON THE WEB CONTINUED ■ From Page 8 Senate Appropriations chairman management, etc.). Ignore the idiots housed for the next 28 years, so The best way forward is to cre- “in charge” of the city. ate a strong team of individuals So where is City Council going to opposes funding upgrades to Belle Isle there were really no winners. William J with diverse opinions but equality get the money to fix up and main- Jennifer Woodard This is all old wine in new wine- of thought to forge strong commu- tain Belle Isle? skins. There’s nothing particularly build your “team Dr. E Kwame Kilpatrick sentenced to 28 Detroit corruption down. Next nity. How will you newsworthy about outstate politi- up, Wayne County. of rivals”? cians carping about aid to Detroit years in prison in corruption case Nancy Mathias Too bad the council hasn’t proven Duke while Detroit politicians fight it can govern the city or Belle Isle ef- Yes, Kwame did wrong and he against mandates from Lansing. It fectively. If the members could, ruined a great career for himself plays well with their respective con- What would you ask Duggan and maybe they would not be in this in politics, but he did not put De- stituents but does nothing to advance How would you collaborate with situation. They want all the state’s troit in bankruptcy, nor is he the Napoleon during debate? the interests of Michigan as a whole. Kevyn Orr so that the city of Detroit hard-earned taxpayer money as a only corrupt official who has ever What alternative uses would David Towne gets the advantage of your skills gift but are unwilling to allow the held office in Detroit. I do think he you propose for the hundreds of and his skills? state to earn it back. Some things deserves to be punished, but 28 acres of vacant land that now exists As with Sen. Roger Kahn, many MikeInMi never change. are tired of trying to help someone who years, heck no! You have killers and in Detroit, and the additional va- Ron Launs child molesters who get way less cant land that will result from all does not want or accept the help. The No execs charged in price-fixing case city refuses to acknowledge that it time. The sentence will not get De- the demolition that is being I hope the state doesn’t agree to has any problems (no money, huge troit out of bankruptcy, and tax- planned? No surprises here. a 10-year lease. The city will trash it unfunded liabilities, incompetent payers will be paying for him to be Maggie Desantis Auto Testing again in 10 years if they got man- agement of it after all of the im- provements. The only way they could come up with a plan to save $4 million a year is if they cut the few remaining services to the is- land. The island would rot and the thugs would take over totally. Bren Renau

The state will not invest mil- lions if the city of Detroit can take the park back immediately when Legal peace of mind it is fixed up. This was a win-win situation for the residents of De- troit, and the council is messing it up yet again. CREDetroit

LETTERS CONTINUED

■ From Page 8 Education is what moves city forward Editor: With the sentencing of Kwame Kilpatrick now behind us, one When you partner would hope that Detroiters would move toward considering the fu- with the right law ture of our city with all of its po- tential. Unfortunately, we still firm, you position have a bloc of residents inherent- ly believing him innocent as well your company for the as doubting there is a financial crisis within. No doubt it’s all a best possible business plot to permit the takeover of the city by outside interests. outcomes. That’s legal I take exception to those un- peace of mind. We have willing to face the reality that an education deficit among our adult a long and successful track population is the greatest problem facing Detroit. It is not racism. record as trusted legal advisors And as Diane Renaud wrote in her letter to the editor on May 6, this because we listen to and understand the uneducated group is basically un- employable. needs of our clients. How can we help you? But don’t tell that to the politi- cians and ministers as they de- Let’s have coffee and discuss the possibilities. mand jobs for Detroiters, jobs of the type that haven’t been created for decades. Jobs going to new De- troiters will not be available to uneducated Detroiters. Even May- or Coleman Young pushed for ho- tels as a component of the casinos vote, knowing that the service po- sitions would offer employment to Detroiters without a college diplo- ma. Education needs to be the pri- mary goal for our city and must be led by a mayor who uses his bully A BETTER PARTNERSHIP® pulpit to get the business and pri- Southfield Macomb County Midland Lansing vate sectors to support the effort. Grand Rapids Holland Muskegon WNJ.com Giving status to ignorance will not move us forward. Robert Thibodeau Detroit 20131021-NEWS--0010-NAT-CCI-CD_-- 10/17/2013 4:26 PM Page 1

Page 10 CRAIN’S DETROIT BUSINESS October 21, 2013 Belle Isle funding vow may not get legislative blessing

When Gov. Rick Snyder began that. And if the state doesn’t come terminate the lease. pecially if the city’s residents don’t “We’re talk- the month by signing a proposed 30- through with the money, there are Snyder said that if Belle Isle be- want the help. ing about tak- year lease of Belle Isle to turn it no consequences for the state. The comes a state park, it will be One day after the council reject- ing dollars Capitol into a state park, it came with the money is not a part of the state’s brought up to a standard befitting of ed the state’s lease, Sen. Roger from those ar- Briefings promise that the state would invest proposed lease, which the Detroit the rest of Michigan’s 101 state Kahn, R-Saginaw Township, chair- eas … and $10 million to $20 million in the City Council rejected last week. parks. But he has stopped short of man of the Senate Appropriations moving those park within the next three years. City Council President Saunteel calling for making the park’s in- Committee, took to the Senate precious dol- But Snyder can’t make good on Jenkins has said she wants the vestment a part of the state lease. floor to say other state parks need lars, of which that promise without the blessing state’s investment in the park in- And last week, a key state law- help, and the people in those com- there are not of the Legislature. cluded in the lease. And if the state maker said he is hesitant to allo- munities want and would appreci- enough, to an- The promised investment is just can’t come through, the city could cate state resources to the park, es- ate the state’s investment. other park that does not support it,” Chris Gautz Kahn said. “I like to work with the administra- Strong. And flexible. tion as much as anybody else — I think, arguably, more. However, it’s hard to do in the absence of a plan to justify the (expense).” PLATINUM STANDARD Kahn said he does not believe that the 200,000 annual visitors to FRACTIONALCTIONAL AND MANAGEDMANAGED BBUSINESSUSINESS AAVIATIONVIATION PPROGRAMS.ROGR Belle Isle will turn into 200,000 peo- SERVING ALL SOUTHEASTERN MICHIGAN. ple purchasing an $11 recreational passport. “There isn’t a functional busi- ness plan,” he said. Kahn said the When businesses face the changing the demands state’s plan of growth, purchasing goods, or making payroll, cleans up Belle Isle at the ex- they require a strong, yet flexible solution. pense of the rest Crestmark can help. of the state. Providing asset-based lending to small- and mid- “I don’t see sized businesses nationwide for over 17 years. how this match- es our priorities Kahn Contact us today! 888.999.8050 with what pot (of money) we’ve got,” he said. Matt Dekutoski Asked about Kahn’s comments, Anntreal Hemmingway-Smith Snyder said funding for improve- CORPORATEEAGLE.COM ments to Belle Isle wouldn’t neces- sarily have to come from an appro- priations bill; they could come from the Natural Resources Trust Fund. That pool of funds comes from royalties on the sale and lease of state-owned mineral rights. But to use that money requires trust fund board approval, then a vote of the Legislature, said Ed Golder, public information officer for the Michigan Department of Natural Resources. Uncommon Another way to fund improve- Creative, Conservative Thinking. ments to the park would be through Remarkable Solutions. the DNR’s bonding authority. Golder said the department has bonding authority for up to $100 mil- Personal life insurance consulting lion a year, of which $84.5 million re- mains for this fiscal year. But al- in a non-salesy environment. though the DNR has the authority, it can’t spend the money without submitting a detailed list — that the Reducing estate and income taxes Legislature has to approve — of the parks that would benefit. Golder Enhancing fixed income yields said the DNR would not simply seek bonding authority just to complete improvements on Belle Isle but Solving family and retirement issues would include it among several state parks if it went that route. Snyder press secretary Sara Optimizing existing life insurance policies Wurfel said another avenue the state is exploring is private dona- tions and grants to fund upgrades, Business succession planning but those would be in addition to a and corporate benefits larger state investment. The governor remains confident the state can find a way to get the money promised. “We can work through those processes,” Snyder said. Comings and goings Ⅲ Bettie Buss retired as a senior research associate from the Citi- zens Research Council of Michigan in August. She is now assisting with voter and student education as BIRMINGHAM, MI | NEW YORK, NY part of the Citizen Detroit Project. 248.731.9500 | WWW.SCHECHTERWEALTH.COM Chris Gautz: (517) 403-4403, [email protected]. Twitter: @chrisgautz 20131021-NEWS--0011-NAT-CCI-CD_-- 10/17/2013 4:39 PM Page 1

October 21, 2013 CRAIN’S DETROIT BUSINESS Page 11

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EDITOR’S NOTEBOOK

Amy Haimerl is entrepreneurship editor. She can be reached at Staking (313) 446-0416 or at ahaimerl @crain.com

Amy Haimerl a new For biz owners, Open City is home for help claim When entrepreneurs talk about their success, the story often begins with making a critical connection or overcoming a sticky obstacle. Which brings us to the helpful connection-making found at events like D:hive’s Open City Detroit, which is starting its seventh season. Last winter, my husband and I went to our first Open City Detroit event, where we met April Boyle, director of recruitment for D:hive. We were chatting about our plans to stay in Detroit and our house hunt. She thought for a moment, then told us about a house that wasn’t even on the market yet. Two months and $35,000 later, we were the proud owners of a 1914 Georgian Revival in the West Village with no plumbing, electricity or heat. In the ensuing six months, the house has come a long way. We have walls (walls!), and I started my job at Crain’s. So it’s a real honor for me to be the moderator at Open City Detroit tonight. We’ll be talking about the JOHN SOBCZAK Detroit BizGrid, a new document that Karla Bledsoe, energy industry relations manager, and President Michael Zwick seek to connect Southfield-based Assets International with people owed helps entrepreneurs navigate royalties by oil and gas operators, even if the rights holders don’t know they deserve the money. business resources. Need to find space in the city? The Detroit Creative Corridor Center can Assets International finds expansion opportunity in someone else’s backyard help, as it did Shinola. Need help with a business plan? Try D:hive’s Build classes. Need money? There are 19 BY AMY HAIMERL beneath a plot — don’t always come in tan- groups offering funds, including the CRAIN’S DETROIT BUSINESS SECOND STAGE CASE STUDY dem. Some early settlers under the Home- stead Act were granted both the land and the Detroit Economic Growth Corp. The challenger: Assets International LLC he Beverly Hillbillies struck black mineral rights to their properties, while oth- Tonight, I’ll be talking about these The goal: Growth into new markets resources along with Devita Davison, gold — oil, that is — when old Jed ers only received the surface rights. head of Eastern Market Corp.’s Clampett was out a huntin’ for some The solution: Understanding core capabilities, Some families have held tight to those miner- not just products Kitchen Connect program; April T food. Moved his family to Beverly… al rights, carefully tracking them and passing Anderson, founder of Good Cakes and Hills, that is. Final result: In two years, the new market is them down. Others, however, have sold off their 25 percent of revenue Bakes; and Spencer Olinek, DEGC America watched the Clampett family’s rights or forgotten to tell successive generations business development manager. antics for nine TV seasons; who doesn’t hope about what lies beneath. So as oil and gas opera- Below is Open City’s lineup. The for a windfall like finding some “Texas Tea”? There is no estimate of the total value of tors come to drill, they have to untangle more idea is to help second-stagers (or Michael Zwick can’t promise a Clampett- these missing mineral-rights claims, but at than 100 years worth of land ownership and find dream-stagers) with issues such as style gusher, but he brings hope for the next least 8.5 million Americans are paid or owed growth, popping up, hiring and more. both the surface and mineral rights owners. best thing: cash money. royalties on active production sites, according “We found money that belonged to an owner Ⅲ Tonight: Detroit Bizgrid, a re- His Southfield-based company, Assets Inter- to the Tulsa, Okla.-based National Association of whose family got the mineral rights from the source map for entrepreneurs national LLC, tracks down people who are Royalty Owners. On one oil well, the nonprofit government before Oklahoma was even a state,” Ⅲ Nov. 18: Locavesting, exploring in- owed royalties by oil and gas operators and found that more than 300 individuals in 46 said Zwick, 42. “Mineral rights aren’t taxed if novative funding and investing models don’t even know it. states were receiving payments because they they are not producing, so someone could have Ⅲ Jan. 20: Who’s the Boss, consid- And, yes, there’s a lot of money in that had some claim to the mineral rights. gotten them 100 years ago and never mentioned ering alternative ownership models bubblin’ crude. But not everyone is even aware of their them to the family and they just get lost.” Ⅲ Feb. 17: The Leap, take your “We had a case out of Texas where we claims. In most states, oil and gas operators are re- business to the next level found a quarter-million for a guy living in The state of Oklahoma alone reports that quired to get leases — and pay royalties to — Ⅲ March 17: Pop Up Detroit, start- the backwoods of Arkansas,” said Zwick, it has more than $100 million sitting in its everyone who owns mineral rights within a ing slow and small president of Assets International. “We flew coffers, waiting on for at least 262,000 miner- square mile of the well. But when all of these Ⅲ April 21: Rock the Red Tape, tips him into Texas and he gets a check for a al-rights owners to claim their spoils. (Michi- owners can’t be located, the oil and gas com- for navigating City Hall quarter-million dollars.” gan does not track money owed to missing All forums are free and at Cliff Bell’s, panies are legally allowed to create escrow ac- The mineral rights work is an offshoot of As- mineral rights heirs.) 2030 Park Ave. in Detroit, from 6 to 8 counts — known as suspense accounts — p.m. For information, visit sets International’s core strength in tracking How can you not know? where the royalty payments stack up. facebook.com/OpenCityDetroit. down missing heirs, and the company’s experi- Well, surface rights — essentially the Download the BizGrid at dhivedetroit.org. ence in growing the business is a case study in rights to the land — and mineral rights — branching out with existing strengths. everything from gold to oil and gas lurking See Assets, Page 12 20131021-NEWS--0012-NAT-CCI-CD_-- 10/17/2013 4:38 PM Page 1

Page 12 CRAIN’S DETROIT BUSINESS October 21, 2013 Second Stage Assets: Company branches out into the world of drilling down ■ From Page 11 “These accounts have to be seg- Instead, Zwick makes them this from the newly found heirs. In Ok- partner at Boston Consulting Group regated from the rest of an opera- offer: Let us look at your accounts lahoma alone, that activity could be BEFORE YOU DRIVE THE STAKE and director of its worldwide Strate- tor’s money,” Zwick explained. and we’ll go track down the owners. a $10 million payday. gy Institute. “Most companies think Assets International offers this “They have the cost of accounting It saves the companies money be- Assets International didn’t start advice on critical components to in products or markets, but they for them; they have the exposure to cause he takes the problem off their out tracking down modern-day successfully entering a new market: should actually look at their capa- state regulators who want to in- books and takes his cut — between Clampetts. Neal Duchin founded Ⅲ Find peers and mentors. bilities underpinning their prod- spect their books to make sure they 10 percent and 35 percent, depend- the private-investigation agency “Entrepreneurs’ Organization has ucts.” are maintaining them properly.” ing on the complexity of the case — in 2001, specializing in finding been a wonderful resource,” For Zwick, that meant under- missing heirs. Zwick was initially President Michael Zwick said. standing that his private investiga- involved as the company’s coun- “Before I joined, I was kind of alone tion firm’s core strength was actual- sel, but in 2004 he joined full time as a second-stage owner; now I’m ly finding information, not people. as a partner and president. By friends with other people I can Once he realized that, he knew the 2009, the company had grown to bounce ideas off of, people who are Assets International team could use in the same stage as me. It’s got to $1.5 million in annual revenue and be peer-to-peer, not just networking.” their skills to enter markets that 16 employees. might, at first, seem disparate. Ⅲ Stick with what you do best. Business was steady, but Zwick The market is “That doesn’t mean you keep doing “We just kept coming back to was on the lookout for new oppor- the same things in the same field; this,” Zwick said. “We found so changing. tunities. look for other areas in which you can many similarities between missing Are you ready? It came to him in a most unusual use your skills.” heirs and finding the owners of min- place. He was at a conference of Ⅲ Try before you buy. “Dip your eral owners that we realized it was- probate lawyers in Texas, network- toe in the water before you commit n’t much of a stretch, even though it ŶŐĂŐĞƚǁĞůů͛ƐƌĞƐŝĚĞŶƟĂů ing with those who might later em- all of your resources. If it goes was in a different industry. It was ĚĞǀĞůŽƉŵĞŶƚƚĞĂŵĂŶĚ ploy his skills. One of the attorneys well, then go all in.” the same application of our skills.” ŐĂŝŶŐƌŽƵŶĚŝŶ^ŽƵƚŚĞĂƐƚ casually mentioned that he might Still, Zwick and his partner put DŝĐŚŝŐĂŶ͘tĞŚĞůƉ want to talk to the “land men.” the oil and gas industry has money the idea on hold, not quite ready to ĚĞǀĞůŽƉĞƌƐĂŶĚďƵŝůĚĞƌƐ “I looked at him and asked, sitting and waiting for people who expand. They debated and thought ŐĞƚĂŚĞĂĚŽĨƚŚĞĐƵƌǀĞŝŶ ‘What’s a land man?’ ‘I’m a Jewish don’t know that they are entitled for two years before deciding, in ƉůĂŶŶŝŶŐ͕ĚĞƐŝŐŶ͕ƉĞƌŵŝƫŶŐ boy from Detroit,’ I told him,” to that money.” 2011, to dip their toes in oil, so to ĂŶĚĚĞǀĞůŽƉŵĞŶƚĂĐƟǀŝƟĞƐ Zwick remembered. In the language of business con- speak. ƚŚƌŽƵŐŚŽƵƌůŽĐĂůŬŶŽǁůĞĚŐĞ A land man, he learned, is who oil sultants, what he did is known as Zwick’s first step was to reach ĂŶĚĞdžƚĞŶƐŝǀĞĞdžƉĞƌŝĞŶĐĞ͘ and gas operators hire to locate the adaptive advantage, or analyzing out to a fellow member of Entrepre- ›Ä¦®Ä››Ù®Ä¦Ö½ƒÄĮĦÝçÙò›ù®Ä¦›Äò®ÙÊÄÛÄヽ‘ÊÄÝãÙç‘ã®ÊÄÃă¦›Ã›Äã owners of the mineral rights pooled the core of your business and de- neurs’ Organization, a national non- underneath land they hope to drill. termining how it can be applied to profit based in Alexandria, Va., At first, it seemed like a crazy other markets. that connects second-stage compa- idea. What did land men and min- “One way to reduce risk in your nies. He called an attorney in the eral rights have to do with his business model experimentation is Oklahoma chapter, someone he’d 248.447.2000 business of finding missing heirs? to apply something you already never met, and the two chatted for www.atwell-group.com But then, he said, he realized know how to do to another do- about 20 minutes. that “just like with missing heirs, main,” said Martin Reeves, senior That conversation was enough to get him researching, making calls and selling his services, persuading oil and gas operators to let him look at their suspense accounts. They started with just a few cas- es, but after early initial success — as with the gentleman in Arkansas — Zwick decided it was the perfect way to expand. “That case in Arkansas really lit a fire under our research and sales Labor and Employment Experience people,” he said. For the Boston Consulting Group’s Reeves, that quick deci- ® sion is a hallmark of successful In Your Corner. companies. “You can’t survive in a turbulent world without innovation, but in- ■ Former member of the National Labor Relations Board and novation, especially for small com- Commissioner of the U.S. International Trade Commission. panies, can be life-threatening,” Dennis has served as a presidential appointee under four Reeves said. U.S. presidents “So it has to be about advantaged experimentation, a systematic ■ Involved in signifi cant international trade initiatives, including process for taking small risks and creation of the World Trade Organization, the North American closing down things that don’t Free Trade Act, and the Free Trade Area of the Americas. work and scaling things that do. It’s pattern recognition and agility, not ■ In Your Corner. letting things languish for years as a pilot or a minor product. That sounds easy, but it’s extremely hard to do.” Today, mineral rights make up about 25 percent of Assets Interna- tional’s business, and revenue is projected at $2 million. Zwick is growing that part of the business, but Reeves reminds that all entre- preneurs should be looking for their next market, next growth op- CELEBRATING portunity, next innovation. 12 YEARS “Advantage needs to be constant- 5 ly renewed,” he said. “Whatever the edge is, it must be constantly re- newed. We are living in a world that isn’t so much about sustainable competitive advantage but about se- Dennis M. Devaney rial temporary advantages.” ■ ■ ■ ■ ■ [email protected] Metro Detroit Grand Rapids Kalamazoo Grand Haven Lansing Amy Haimerl: (313) 446-0416, [email protected]. Twitter: @haimerlad 20131021-NEWS--0013-NAT-CCI-CD_-- 10/17/2013 4:44 PM Page 1

October 21, 2013 CRAIN’S DETROIT BUSINESS Page 13 Second Stage

HAVE YOUR HOLIDAY PARTY IN THE PREMIER SOCIAL SPACE AT A DETROIT PISTONS GAME

BoostUp founder and CEO John Morgan had offers from four potential investors before settling on a $600,000 offer from Detroit Venture Partners. As part of the deal, he moved his business to the Madison Building in downtown Detroit. LARRY PEPLIN Need cash? Have friends who are generous? BoostUp has an idea

BY TOM HENDERSON year and to grow it substantially employees and is hiring a salesper- CRAIN’S DETROIT BUSINESS the year after. son, marketing person and web de- Morgan, 37, is a 1998 civil engi- veloper. BoostUp, formerly of Chicago, neering graduate from the University “John is a smart entrepreneur has become Detroit Venture Partners’ of Notre Dame. Despite his major, he with real industry savvy, and we’re newest portfolio company and the has spent most of his career in mar- excited to support his vision,” said newest tenant of the Madison Build- keting, first with the Atlanta Thrash- Josh Linkner, who co-founded DVP ing. ers of the National Hockey League, with Dan Gilbert and Brian Her- DVP invested $600,000 in an in- then for agencies managing events melin. vestment round of $1 million, which and sponsorships for automakers. “I like that the company is able to included $150,000 from IncWell LLC, In 2007, he founded a firm in introduce customers to brands the Birmingham-based early-stage Naperville, Ill., Synergy Marketing much earlier into the buying cycle,” investment firm headed by Tom La- LLC, to create digital marketing pro- said Linkner. “If you’re a car dealer, sorda, the former president of grams for automakers. In 2010, you can engage in a thoughtful dia- Chrysler LLC. Cornerstone Angels, a Hyundai signed up for the digital logue with prospective customers a Chicago-based investment group, marketing campaign that in 2012 year in advance of a purchase, or six and some high-net-worth individu- was spun out as Motozuma LLC — months in advance, instead of two als contributed the rest. “moto” as in “motor,” “zum” as a weeks before the customer gets BoostUp is the 22nd company in soundalike for “zoom.” ready to make a decision.” DVP’s portfolio. Last year, Morgan began pitch- Nathan Miller, senior group Although the company is consid- ing would-be investors in Motozu- manager of incentives for Costa ered part of the growing crowd- ma. He said he had offers from four Mesa, Calif.-based Hyundai Motor funding sector, it doesn’t have the would-be investors or investor America, said the key word behind typical model of raising money for groups before accepting the DVP BoostUp’s value to him is “millen- a project or cause in exchange for offer earlier this year. nial,” a demographic infamous to stated benefits. Instead, it operates Motozuma operated with the automakers for driving less and like a public savings account to same model as BoostUp, but was delaying purchases of their first which others can contribute. Mil- limited to vehicle sales. used cars and, worse, putting off lennials trying to, say, save for a When Morgan agreed to DVP’s buying their first new cars. house, car, vacation or wedding investment terms, he also agreed Hyundai, which matches money are the prime targets. to its advice that he look beyond raised by account holders to a maxi- BoostUp provides free registra- the auto sector to such things as mum of $500, sold its first car tion to set up the account. Account vacations, honeymoons and down through Motozuma in January 2010 holders can make their own de- payments for homes, all things of and has sold more than 3,000 since, posits, but they also can alert fami- interest to millennials. including about 1,600 last year and ly, friends and others through their And with a broader focus, a new- what Miller predicts will be more social media outlets that cash can be er name was necessary, hence the than 2,000 this year. About two- contributed to the account, perhaps rebranding as BoostUp. Motozuma thirds of those sales are to buyers in lieu of presents for holidays, LLC will be the legal name, with under age 35. birthdays or anniversaries. the company doing business as “It’s been an amazing program Where the company plans to BoostUp. for us. The main thing is, it has al- Ţ
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*/'03."5*0/ said BoostUp expects to have more The company employs five full- [email protected]. Twitter: than $1 million in revenue next time employees and two contract @tomhenderson2 20131021-NEWS--0014-NAT-CCI-CD_-- 10/17/2013 5:03 PM Page 1

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October 21, 2013 CRAIN’S DETROIT BUSINESS Page 15 Capitol Bancorp deal expected to aid Talmer’s bid to go public

BY TOM HENDERSON local death watch as state and fed- will have no impact on the opera- Before embarking on its growth CRAIN’S DETROIT BUSINESS eral regulators closed one commu- tions of the banks, nor their em- strategy in April 2010, Talmer was nity bank after another during and This transaction ployees and customers. Customer known as First Michigan Bank, with Troy-based Talmer Bancorp Inc., after the recession. But the bank “ deposits remain insured by the a single branch and about $90 mil- one of the fastest-growing banks in kept afloat and kept regulators at presents significant Federal Deposit Insurance Corp. lion in assets. The subsequent ex- the Midwest, has agreed to buy the bay. The sale is expected to close un- pansion was fueled by $200 million remaining assets of the long-trou- In the second quarter, the bank opportunities. der Section 363 of the U.S. Bank- of fundraising, nearly a fourth of bled Lansing-based Capitol Bancorp reported net income of $12.5 mil- ” ruptcy Code and is subject to regu- which came from New York fi- Ltd. in a federal bankruptcy pro- lion. About $300,000 of that was Joseph Reid, Capitol Bancorp latory approval and the terms and nancier Wilbur Ross. ceeding. from operations, and about $12.2 conditions contained in the stock Talmer has agreed to buy the banks with a strategic partner that The bank used that capital to fi- million as a result of improving purchase agreement. stock of Capitol’s (OTCQB: has the resources and capital to nance a series of acquisitions of loan operations. That $12.2 million CBCRQ) remaining entities, the support the banks’ long-term suc- In January, Talmer used Section troubled banks in Wisconsin and Bank of Las Vegas, Indiana Communi- had been set aside for loan-loss re- cess. This transaction presents sig- 363 to buy Ohio-based First Place Michigan that were closed by state ty Bank, Ann Arbor-based Michigan serves that were no longer needed. nificant opportunities for the Bank from its parent company, and federal regulators. Commerce Bank and Sunrise Bank of The bank has more than $600 mil- banks and their employees and First Place Financial Corp. Tom Henderson: (313) 446-0337, Albuquerque, N.M. lion in assets. customers,” Reid said in a release. That deal grew Talmer from $2.2 [email protected]. Twitter: According to filings with the “We are pleased to provide the He said the pending transaction billion in assets to $4.5 billion. @tomhenderson2 U.S. Bankruptcy Court for the Eastern District of Michigan, Talmer agreed to pay $4.5 million in cash and de- posit $2.5 million in an escrow ac- count to cover post-petition admin- istrative fees. The deal should help Talmer in its bid to go public. President and CEO David Provost has de- My awesome staff is the reason. clined to com- ment recently, but said in the past that he would like to take the bank holding compa- ny for Talmer Provost Bank and Trust public later this year or early next year. Bankruptcy Judge Marci McIvor set Oct. 22 as the date she will set a date for the auction. Capitol Bancorp has proposed a Nov. 7 deadline for competing bids for the four banks. A competing offer would have to include a purchase price of $6.75 million — 50 percent above Talmer’s offer — because it would have to pay Talmer a so-called stalking-horse bidder fee of $2 mil- lion and contain a minimum over- bid of $250,000. Capitol, once a high-flying, fast- growing national banking entity — its CEO, Joseph Reid, was hon- ored as entrepreneur of the year in 2005 by American Banker maga- zine — filed for bankruptcy in 2012 and later said it would sell its re- maining banks at auction. At one point, Capitol Bancorp had more than 60 community banks. When it filed for bankrupt- cy, the company had 13 affiliate banks in 10 states and had sold 24 banks. Capital Bancorp stock was selling Monday at 35 cents a share in over-the-counter trading, down from a 52-week high of 16 cents. Michigan Commerce Bank has long been rumored to be an acqui- sition target for Talmer. It has branches in Ann Arbor, Auburn Hills, Brighton, Detroit, Grand Haven, Holland, Kentwood, Portage, Muskegon and Farming- You expect the best from your employees, and they expect the ton Hills. Bruce Thomas, president of best from you. Which must be the reason why so many business Michigan Commerce, told Crain’s owners choose Blue Cross for their employees. recently that interest in Michigan Commerce had spiked following GROUP COVERAGE | DENTAL | VISION | bcbsm.com/employers improvements in its loan portfolio, a sharp rise in its ratio of equity to assets and its best financial quar- ter in the second quarter this year since it was created following the merger of various Capitol entities Blue Cross Blue Shield of Michigan and Blue Care Network are nonprofit corporations and independent licensees of the Blue Cross and Blue Shield Association. around the state into a single char- ter in 2009. 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EVENT AGENDA

8:00 - 9:00am Breakfast & Networking

9:00 - 9:05am Welcome - James B. Nicholson, President & CEO, PVS Chemicals, Inc.

9:05 - 9:35am Do we compete or do we win? A global CEO’s view iˆ˜}ºVœ“«ï̈Ûi»ˆÃˆ“«œÀÌ>˜Ì°°°LṎÈÌÃÕvwVˆi˜Ì̜܈˜¶Ƃ˜iÝ«iÀˆi˜Vi`]}œL> "LÀˆ˜}ÃÌ i >À`ÌÀÕÌ \ ˆV ˆ}>˜ˆÃ˜½Ì`œˆ˜}i˜œÕ} ̜܈˜ˆ˜̜`>Þ½ÃwiÀViÞVœ“«ï̈Ûi“>ÀŽiÌ«>Vi° John Rakolta Jr., Chairman & CEO, Walbridge

9:35 - 9:50am How competitive are we? A Preview of the 2013 Competitiveness Benchmarking Report i>À˜ œÜ ˆV ˆ}>˜ÃÌ>VŽÃÕ«̜ˆÌÃVœ“«ï̜ÀØ>̈œ˜>Þ>˜`}œL>Þ°ƂÀiÜiÌ ˆ˜Žˆ˜}Lˆ}i˜œÕ} ̜LiVœ“i> /œ«/i˜ÃÌ>Ìi¶œÜ`œÜiÌ>Ži>`Û>˜Ì>}iœvœÕÀ}Ài>ÌiÃÌÃÌÀi˜}Ì Ã¶ Doug Rothwell, President & CEO, Business Leaders for Michigan

9:50 - 10:15am How can technology transform the way we work? An introduction to Bluescape iÌ>}ˆ“«Ãiœv>ۈÃÕ>Vœ>LœÀ>̈ÛiܜÀŽÃ«>Vië>˜˜ˆ˜}£ÈäۈÀÌÕ>>VÀiÃÌ >Ìi˜VœÕÀ>}iÃVœ““Õ˜ˆV>̈œ˜>VÀœÃà Ìi>“Ã>˜`̈“i✘ið Richard Haworth, Chairman Emeritus, Haworth, Inc.

10:15 - 10:45am How do you win from the start? The viewpoint from start-up CEOs 7ˆ˜˜ˆ˜}Ì>ŽiÃœ˜>˜iÜ“i>˜ˆ˜}Ü i˜ޜսÀi>ÃÌ>À̇ի° ˆV ˆ}>˜i˜ÌÀi«Ài˜iÕÀëÀœÛˆ`i>ºvÀœ“Ì iÌÀi˜V iû ۈiÜœv œÜ̜VÀi>Ìi>܈˜˜ˆ˜}vœÀ“Տ>Ü i˜ޜսÀiLՈ`ˆ˜}vÀœ“Ì i}ÀœÕ˜`Õ«° Veronika Scott, Founder and CEO, The Empowerment Plan Don’t miss this power-packed day at The Westin Book Cadillac Detroit, October 30. Dug Song, Chiev EÝeVutiÛe OvwVer, Duo Security Fourteen of Michigan’s most respected CEOs will speak on emerging technologies, Eli Thomssen, President & CEO, Armune BioScience, Inc. Moderator: Michael Jandernoa, Board of Directors, Perrigo Company competitive strategies, entrepreneurship and much more. 11:00 - 11:45 am Winning Strategy #1: La-Z-Boy, Inc. GREAT INFORMATION. GREAT NETWORKING. i>À œÜ>˜nx‡Þi>À‡œ` œ˜Àœi‡L>Ãi`“>ŽiÀœvˆVœ˜ˆVÀiVˆ˜iÀÃLiV>“iÌ iœ˜iœvÌ iܜÀ`½Ãi>`ˆ˜}vÕÀ˜ˆÌÕÀi «Àœ`ÕViÀð —open to the public— Kurt Darrow, Chairman, President & CEO, La-Z-Boy, Inc. 11:15 - 11:45am How do you change the Ƃeld to win the game? Tomorrow’s talent, communities and assets ̽ÓœÀiÌ >˜Ì iÌÀ>`ˆÌˆœ˜>LÕȘiÃÃVˆ“>Ìi>}i˜`>°/ i˜iÜÃÌÀ>Ìi}ˆiÃ̜܈˜ˆ˜VÕ`iˆ˜ÛiÃ̈˜}ˆ˜«iœ«i]Ì>i˜Ì] >˜`Vœ““Õ˜ˆÌˆiÃq>˜`“>Žˆ˜}Ì iLiÃÌ«œÃÈLiÕÃiœvœÕÀ>ÃÃiÌð James Hackett, President & CEO, Steelcase, Inc. Daniel Loepp, President & CEO, Blue Cross Blue Shield of Michigan Register today and give your business the edge it needs to win. Sandra Pierce, Chairman & CEO, FirstMerit Michigan 11:45 - 12:00pm Winning Strategy #2: Meijer, Inc. ˆV ˆ}>˜½Ã œ“i}ÀœÜ˜}ÀœViÀÞ>˜`ÀiÌ>ˆi}i˜`ÃÌ>ÞÃvÀià >}>ˆ˜ÃÌÌ iVœ“«ï̈œ˜>˜`܈˜Ã° Hank Meijer, Co-Chairman & CEO, Meijer, Inc.

12:00 - 1:15pm A Nation that Wins >̈œ˜>«œˆVÞ«>ÞÃ>VÀˆÌˆV>Àœiˆ˜i˜>Lˆ˜} ˆV ˆ}>˜̜Vœ“«iÌi>˜`܈˜°i>Àœ˜iœvÌ i˜>̈œ˜½Ã«Ài“ˆiÀ LÕȘiÃà «œˆVÞ i>`iÀà œÕ̏ˆ˜i > ܈˜˜ˆ˜} Ƃ“iÀˆV>˜ ÃÌÀ>Ìi}Þ° Former Governor John Engler, President, Business Roundtable

1:30 - 1:45pm Winning Strategy #3: Two Men And A Truck/International, Inc. /ܜ “i˜ LՈÌ > “œÛˆ˜} Vœ“«>˜Þ «iœ«i VœÕ` œÛi] >˜` “>`i ˆÌ >˜ ˆ˜ÌiÀ˜>̈œ˜> «œÜiÀ œÕÃi° Brig Sorber, Chief EÝecutiÛe Ofwcer, Two Men And A Truck/International, Inc.

1:45 - 2:25pm Flash Foresight - How to See the Invisible and Do the Impossible ,i˜œÜ˜i` iÝ«iÀÌ ˆ˜ «Ài`ˆV̈˜} Ì i ˆ“«>VÌ œv i“iÀ}ˆ˜} ÌiV ˜œœ}ˆià œ˜ Ì i LÕȘiÃà ܜÀ`] ÕÀÀÕà ܈ à >Ài ÃÌÀ>Ìi}ˆià vœÀ Ãiiˆ˜} ˆ``i˜ œ««œÀÌ՘ˆÌˆià >˜` ܏ۈ˜} «ÀœLi“à œ˜ Ì i œÀˆâœ˜° Daniel Burrus, Futurist, iÜ 9œÀŽ /ˆ“ià bestselling author

2:25 - 2:30pm What’s Next? Doug Rothwell, President & CEO, Business Leaders for Michigan

2:30 - 3:00pm Winner’s Circle Afterglow in the Energy Lounge follow us:

REGISTER TODAY: businessleadersformichigan.com/events REGISTER TODAY: businessleadersformichigan.com/events DBspreadAD_DBspreadAD.qxd 10/17/2013 10:14 AM Page 1 TIME’S RUNNING OUT. . DON’T MISS THE CHANCE TO GET WINNING STRATEGIES SPEND A DAY WITH THE FANTASY TEAM OF MICHIGAN BUSINESS MICHIGAN’S BUSINESS ALL-STARS. FROM Wednesday, October 30, 2013 8:00am - 3:00pm; Westin Book Cadillac Detroit COST: $125 (includes breakfast and lunch)

EVENT AGENDA

8:00 - 9:00am Breakfast & Networking

9:00 - 9:05am Welcome - James B. Nicholson, President & CEO, PVS Chemicals, Inc.

9:05 - 9:35am Do we compete or do we win? A global CEO’s view iˆ˜}ºVœ“«ï̈Ûi»ˆÃˆ“«œÀÌ>˜Ì°°°LṎÈÌÃÕvwVˆi˜Ì̜܈˜¶Ƃ˜iÝ«iÀˆi˜Vi`]}œL> "LÀˆ˜}ÃÌ i >À`ÌÀÕÌ \ ˆV ˆ}>˜ˆÃ˜½Ì`œˆ˜}i˜œÕ} ̜܈˜ˆ˜̜`>Þ½ÃwiÀViÞVœ“«ï̈Ûi“>ÀŽiÌ«>Vi° John Rakolta Jr., Chairman & CEO, Walbridge

9:35 - 9:50am How competitive are we? A Preview of the 2013 Competitiveness Benchmarking Report i>À˜ œÜ ˆV ˆ}>˜ÃÌ>VŽÃÕ«̜ˆÌÃVœ“«ï̜ÀØ>̈œ˜>Þ>˜`}œL>Þ°ƂÀiÜiÌ ˆ˜Žˆ˜}Lˆ}i˜œÕ} ̜LiVœ“i> /œ«/i˜ÃÌ>Ìi¶œÜ`œÜiÌ>Ži>`Û>˜Ì>}iœvœÕÀ}Ài>ÌiÃÌÃÌÀi˜}Ì Ã¶ Doug Rothwell, President & CEO, Business Leaders for Michigan

9:50 - 10:15am How can technology transform the way we work? An introduction to Bluescape iÌ>}ˆ“«Ãiœv>ۈÃÕ>Vœ>LœÀ>̈ÛiܜÀŽÃ«>Vië>˜˜ˆ˜}£ÈäۈÀÌÕ>>VÀiÃÌ >Ìi˜VœÕÀ>}iÃVœ““Õ˜ˆV>̈œ˜>VÀœÃà Ìi>“Ã>˜`̈“i✘ið Richard Haworth, Chairman Emeritus, Haworth, Inc.

10:15 - 10:45am How do you win from the start? The viewpoint from start-up CEOs 7ˆ˜˜ˆ˜}Ì>ŽiÃœ˜>˜iÜ“i>˜ˆ˜}Ü i˜ޜսÀi>ÃÌ>À̇ի° ˆV ˆ}>˜i˜ÌÀi«Ài˜iÕÀëÀœÛˆ`i>ºvÀœ“Ì iÌÀi˜V iû ۈiÜœv œÜ̜VÀi>Ìi>܈˜˜ˆ˜}vœÀ“Տ>Ü i˜ޜսÀiLՈ`ˆ˜}vÀœ“Ì i}ÀœÕ˜`Õ«° Veronika Scott, Founder and CEO, The Empowerment Plan Don’t miss this power-packed day at The Westin Book Cadillac Detroit, October 30. Dug Song, Chiev EÝeVutiÛe OvwVer, Duo Security Fourteen of Michigan’s most respected CEOs will speak on emerging technologies, Eli Thomssen, President & CEO, Armune BioScience, Inc. Moderator: Michael Jandernoa, Board of Directors, Perrigo Company competitive strategies, entrepreneurship and much more. 11:00 - 11:45 am Winning Strategy #1: La-Z-Boy, Inc. GREAT INFORMATION. GREAT NETWORKING. i>À œÜ>˜nx‡Þi>À‡œ` œ˜Àœi‡L>Ãi`“>ŽiÀœvˆVœ˜ˆVÀiVˆ˜iÀÃLiV>“iÌ iœ˜iœvÌ iܜÀ`½Ãi>`ˆ˜}vÕÀ˜ˆÌÕÀi «Àœ`ÕViÀð —open to the public— Kurt Darrow, Chairman, President & CEO, La-Z-Boy, Inc. 11:15 - 11:45am How do you change the Ƃeld to win the game? Tomorrow’s talent, communities and assets ̽ÓœÀiÌ >˜Ì iÌÀ>`ˆÌˆœ˜>LÕȘiÃÃVˆ“>Ìi>}i˜`>°/ i˜iÜÃÌÀ>Ìi}ˆiÃ̜܈˜ˆ˜VÕ`iˆ˜ÛiÃ̈˜}ˆ˜«iœ«i]Ì>i˜Ì] >˜`Vœ““Õ˜ˆÌˆiÃq>˜`“>Žˆ˜}Ì iLiÃÌ«œÃÈLiÕÃiœvœÕÀ>ÃÃiÌð James Hackett, President & CEO, Steelcase, Inc. Daniel Loepp, President & CEO, Blue Cross Blue Shield of Michigan Register today and give your business the edge it needs to win. Sandra Pierce, Chairman & CEO, FirstMerit Michigan 11:45 - 12:00pm Winning Strategy #2: Meijer, Inc. ˆV ˆ}>˜½Ã œ“i}ÀœÜ˜}ÀœViÀÞ>˜`ÀiÌ>ˆi}i˜`ÃÌ>ÞÃvÀià >}>ˆ˜ÃÌÌ iVœ“«ï̈œ˜>˜`܈˜Ã° Hank Meijer, Co-Chairman & CEO, Meijer, Inc.

12:00 - 1:15pm A Nation that Wins >̈œ˜>«œˆVÞ«>ÞÃ>VÀˆÌˆV>Àœiˆ˜i˜>Lˆ˜} ˆV ˆ}>˜̜Vœ“«iÌi>˜`܈˜°i>Àœ˜iœvÌ i˜>̈œ˜½Ã«Ài“ˆiÀ LÕȘiÃà «œˆVÞ i>`iÀà œÕ̏ˆ˜i > ܈˜˜ˆ˜} Ƃ“iÀˆV>˜ ÃÌÀ>Ìi}Þ° Former Governor John Engler, President, Business Roundtable

1:30 - 1:45pm Winning Strategy #3: Two Men And A Truck/International, Inc. /ܜ “i˜ LՈÌ > “œÛˆ˜} Vœ“«>˜Þ «iœ«i VœÕ` œÛi] >˜` “>`i ˆÌ >˜ ˆ˜ÌiÀ˜>̈œ˜> «œÜiÀ œÕÃi° Brig Sorber, Chief EÝecutiÛe Ofwcer, Two Men And A Truck/International, Inc.

1:45 - 2:25pm Flash Foresight - How to See the Invisible and Do the Impossible ,i˜œÜ˜i` iÝ«iÀÌ ˆ˜ «Ài`ˆV̈˜} Ì i ˆ“«>VÌ œv i“iÀ}ˆ˜} ÌiV ˜œœ}ˆià œ˜ Ì i LÕȘiÃà ܜÀ`] ÕÀÀÕà ܈ à >Ài ÃÌÀ>Ìi}ˆià vœÀ Ãiiˆ˜} ˆ``i˜ œ««œÀÌ՘ˆÌˆià >˜` ܏ۈ˜} «ÀœLi“à œ˜ Ì i œÀˆâœ˜° Daniel Burrus, Futurist, iÜ 9œÀŽ /ˆ“ià bestselling author

2:25 - 2:30pm What’s Next? Doug Rothwell, President & CEO, Business Leaders for Michigan

2:30 - 3:00pm Winner’s Circle Afterglow in the Energy Lounge follow us:

REGISTER TODAY: businessleadersformichigan.com/events REGISTER TODAY: businessleadersformichigan.com/events 20131021-NEWS--0018-NAT-CCI-CD_-- 10/17/2013 3:59 PM Page 1

Page 18 CRAIN’S DETROIT BUSINESS October 21, 2013 UM completes 1st stage of stem-cell therapy for ALS

BY TOM HENDERSON to give its approval in about a CRAIN’S DETROIT BUSINESS month to proceed to the next round of three operations, which With an operation to inject stem will involve the injection of 200,000 Tuesday, Oct. 29 cells into the spinal cord of an ALS San Marino Club, Troy | 7:30 a.m. – 1 p.m. cells at each of 20 sites. patient on Oct. 2, a team at the Uni- In the final stage of the trial, pa- versity of Michigan completed the AGENDA tients will be injected with up to 8 first stage of its U.S. Food and Drug million cells. They are from a 7:30 a.m Registration Opens and Michigan’s Administration trials to test a new stem cell line derived from a do- Healthiest Employers Breakfast therapy for the deadly neurologi- nated human embryo and are pro- 9 a.m Health Care Leadership Summit cal disease. vided by Rockville, Md.-based It was the third operation to in- Neuralstem Inc. I Keynote: Maureen Bisognano ject stem cells since the FDA gave Feldman, director of the A. Alfred CEO, Institute for Healthcare Improvement, approval last April for phase-two Taubman Medical Research Institute author of Pursuing the Triple Aim trials on 15 patients suffering from at UM and director of the ALS clin- I Roundtable Discussions amyotrophic lateral sclerosis, also ic at the UM Health System, was part known as Lou Gehrig’s disease. I Health Facts 2014 of the Ann Arbor operating team, The first operation was at Emory which was led by Parag Patil, M.D. Noon Health Care Heroes Luncheon University Hospital in Atlanta, with Feldman’s job as neurologist was the next two at UM. to prepare the stem cells and to The recent operation, like the load them into the device that in- MICHIGAN’S A luncheon program other two, involved injecting jected them into the spinal cord. A breakfast program honors 200,000 stem cells at each of 10 sites HEALTHIEST honors Crain’s Health While the panel’s role is to con- Michigan’s Healthiest Employers. in the cervical region of the spine. duct ongoing safety reviews, the tri- Care Heroes awardees. EMPLOYERS That area regulates breathing, and al itself tests efficacy. The opera- most ALS patients die from tions are conducted on patients who To register, visit www.crainsdetroit.com/events or call 313-446-0300. breathing difficulties. An indepen- have been diagnosed in the last two dent panel of surgeons and neuro- years and who are in relatively PREMIER SPONSORS HEALTHIEST EMPLOYERS MAJOR SPONSORS ROUNDTABLE SPONSOR BREAKFAST SPONSOR logical experts not affiliated with good health. UM will assess the first three oper- The goal is to have healthy stem ations for safety. cells grow neurons that will halt the Eva Feldman, M.D., the princi- disease’s progress, and in some cas- HEALTH FACTS UPDATE REPORT SPONSOR PORTFOLIO SPONSOR BREAK SPONSOR LOCATION SPONSOR pal investigator in the trials, es, reduce or eliminate symptoms.

™ which are funded in part by the Na- Tom Henderson: (313) 446-0337, The Right Plan for a Healthier You tional Institutes of Health and the [email protected]. Twitter: ALS Association, expects the panel @tomhenderson2

WE’RE VERY PROUD OF THIS AWARD, BUT PROUDER OF WHAT IT STANDS FOR.

DTE Energy is proud to be recognized as Corporation of the Year for the 4th consecutive year by the Michigan Minority Supplier Development Council. Diversity is critical to the success of our economy, our company, and the communities that we serve. 20131021-NEWS--0019-NAT-CCI-CD_-- 10/17/2013 4:00 PM Page 1

October 21, 2013 CRAIN’S DETROIT BUSINESS Page 19

BUSINESS DIARY PEOPLE

ACQUISITIONS JetBlue Airways, New York, an- nounced that Detroit Metropolitan Prospira PainCare Inc., Mountain IN THE SPOTLIGHT Airport will become its 85th destina- View, Calif., acquired Neuro Pain tion in the Americas, with nonstop RTT USA, Royal Oak, a 3-D Consultants PC, with offices in flights to Boston Logan Airport be- visualization software company, Bloomfield Township, Clarkston, Ox- has named ford, Troy and West Bloomfield ginning March 10, 2014. Website: www.jetblue.com. Brian Draper its Township. The centers will be re- first COO. named Neuro Pain Consultants, a Prospira PainCare Center of Excel- MOVES He had been lence. Websites: www.prospira Affinia Group Inc., Ann Arbor, in the managing paincare.com, www.neuro-pain.com. design, manufacture, distribution partner of and marketing of industrial-grade advertising CONTRACTS products and services, announced it agency Team Let Schoolcraft College Detroit, Quarton Partners LLC, Birmingham, a will relocate in stages its headquar- Dearborn. middle-market investment banking ters to Gastonia, N.C., home of its Host Your Next Event firm, was the exclusive financial ad- global filtration group, in 2014. Web- Draper, 39, viser to Independent Bankers Capital site: www.affiniagroup.com. Draper was a Crain’s Fund LP, Dallas, in managing the sale Detroit 734-462-4610 of ErgoGenesis LLC, a Navasota, NEW PRODUCTS Business 40 under 40 honoree in Texas-based maker and marketer of 2011. http://vistatech.schoolcraft.edu Technosoft Corp., Southfield, an in- ergonomic chairs and workplace ac- formation technology and business He earned a bachelor’s degree in cessories, to Freestone Partners LLC, process outsourcing provider, psychology from Michigan State Houston, and Patriot Capital, Dallas, University. Baltimore and Chicago. Website: launched Information Edge Services www.quartonpartners.com. to help organizations manage infor- mation. Website: www.technosoft Frimo Group, Wixom, a provider of corp.com. CONSULTING manufacturing systems for plastic Pamela Rice to se- components, contracted with Weber Freudenberg-NOK Sealing Technolo- Manufacturing Technologies Inc., gies, Plymouth Township, created nior project man- Midland, Ontario, a mold manufac- Duo Forseal, a new design for dou- ager, ecological turer in automotive interiors and ble-acting polytetrafluoroethylene services group, exteriors, aerospace, and home and U-cups that are used on direct-injec- Metro Consulting building products, to provide in- tion automotive systems to seal the Associates LLC, Schoolcraft College mold graining systems to North pump plunger driven by the Plymouth, from American automakers. Websites: camshaft. The new seal design president, PR En- 18600 Haggerty Road www.frimo.com, www.webermfg.ca. boosts performance and helps lower vironmental Con- Livonia, MI 48152-2696 emissions. Website: www.fnst.com. sulting LLC, EXPANSIONS Altair Engineering Inc., Troy, and Al- Belleville. tair Partner Alliance entered the pro- Rice Four reasons to book your next executive Fifth Third Bancorp, Cincinnati, FINANCE opened a micro-branch at the North- ject management domain with the board meeting in the VisTaTech Center: west Activities Center, 18100 Meyers addition of Project Team Builder Geoffrey Stocki to Road, Detroit. Telephone: (313) 736- software from SandboxModel LTD, vice president of • 26 executive work stations 4338. Website: www.53.com. Tel Aviv, Israel. Website: www.al operations, North Art Van Furniture Inc., Warren, tairalliance.com. American Ban- • opened an Art Van PureSleep store, card, Troy, from Individual monitors, computers 6470 Orchard Lake Road, West NEW SERVICES vice president, and microphones Bloomfield Township. Telephone: Company Folders, Keego Harbor, dealer services (855) 324-8046. Website: www.artvan launched free folder design tem- and credit center, • Ergonomically puresleep.com. plates it will post on its website each Automotive Cred- DataFactZ Inc., Northville, a system week for potential customers’ use. it Corp., South- adjustable chairs and data integration company, in- Website: www.companyfolders.com Stocki field. vested $1.5 million to create its glob- /design/folder-design-templates. • Audio and video al delivery center in Gachibowli, In- HEALTH CARE dia. The 11,500-square-foot center conferencing will provide business intelligence DIARY GUIDELINES Lori Zeman to director of behavioral and data warehousing services to health integration, MedNetOne Health capabilities DataFactZ clients. Website: Email news releases for Business Solutions, Oakland Township, from www.datafactz.com. Diary to cdbdepartments@ clinical assistant professor, Wayne Art Van Furniture Inc., Warren, in crain.com or mail to State University School of Medicine, January is to open a 46,000-square- Departments, Crain’s Detroit department of psychiatry and behav- foot furniture and mattress store at Business, 1155 Gratiot Ave., ioral neurosciences, Detroit. 311 Coliseum Blvd., Fort Wayne, Detroit, MI 48207-2997. Use any Ind. Website: www.artvan.com. Business Diary item as a model MARKETING At Risk Entertainment LLC, Ply- for your release, and look for the Victor Spieles to associate creative di- mouth, a movie production company, appropriate category. Without rector, Simons Michelson Zieve Inc., opened a subsidiary, Go Cat Go Music complete information, your item Troy, from senior art director. & Film, to develop music and film pro- will not run. Photos are welcome, jects. 705 S. Main St., Suite 131, Ply- but we cannot guarantee they will mouth. Telephone: (734) 818-9904. NONPROFITS Website: www.atriskent.com. be used. Adam Marks, M.D., to medical director, Arbor Palliative Care, Ann Arbor, a ser- vice of Arbor Hos- pice. He remains a general pediatri- cian with the Uni- PARTNERSHIP AVAILABLE versity of Michi- gan Health We invite you to experience the difference that System’s C.S. Mott Children’s Hospi- private flight travel can make. INNO-VENTION 2013 Marks tal, Ann Arbor. UÊ œÊ >ÃÏiÊi˜ÌÀÞʏiÛiÊÊ FOCUS: How information ÊÊÊ«>À̘iÀà ˆ«ÃÊ PEOPLE GUIDELINES UÊœÜiÃÌʜ«iÀ>̈˜}ÊVœÃÌÃÊÊÊÊÊÊÊ technology is fueling ÊÊʈ˜ÊÌ iʓ>ÀŽiÌÊ changes in health care Announcements are limited to UÊ
VViÃÃÊ̜ʜÛiÀÊx]äääÊÊ and its impact on the management positions. Email them ÊÊÊ1°-°Ê>ˆÀ«œÀÌÃÊ to [email protected] UÊ*ˆœÌÃÊޜÕʎ˜œÜÊ>˜`ÊÌÀÕÃÌÊ next generation of or mail notices to Departments, UÊ/À>ÛiÊœ˜ÊޜÕÀÊÃV i`Տi]ÊÊ medical devices. Crain’s Detroit Business, 1155 ÊÊʘœÌÊÌ iÊ>ˆÀˆ˜i½ÃÊ Gratiot Ave., Detroit, MI 48207- UÊ->viÊ>˜`ÊÃiVÕÀi 2997. Releases must contain the November 6-8 person’s name, new title, company, Troy Marriott | Troy, Michigan city in which the person will work, former title, former company (if not American Jet Management promoted from within) and former >Ê ˆŽiÊ>ÌÊn£ä°ÓÎÓ°{{{ÎʜÀʈ“Ê>ÌÊÓ{n°nÈä°ÈÎÇn REGISTER TODAY: Medical Main Street city in which the person worked. @MedicalMainSt Photos are welcome, but we cannot MedicalMainStreet.org #INNOVENTION guarantee they will be used. 20131021-NEWS--0020-NAT-CCI-CD_-- 10/17/2013 3:59 PM Page 1

Page 20 CRAIN’S DETROIT BUSINESS October 21, 2013

CALENDAR WEDNESDAY A Conversation With the Mayoral providers in airport development pro- economic outlook, vehicle product de- Candidates. 11:30 a.m.-1:30 p.m. May- jects. Open to all built-environment sign and market perception of the U.S. SALUTE HEALTH CARE HEROES OCT. 23 oral candidates Mike Duggan and professionals. Airea Studio, Com- auto industry. Moderated by Jamie Benny Napoleon will discuss the up- puware Building, Detroit. Free. Con- Butters, leader of Bloomberg News’ Discover ways to provide health Inside the CEO coming election. With Carol Cain, De- tact: Louis Fisher, (248) 629-0441; North America Transportation Team. care in a generation of reform at Mind. 8-10 a.m. De- troit Free Press columnist and host of email: [email protected]; Emagine Star Lanes, Royal Oak. Free, the Crain’s Detroit Business troit Regional WWJ-TV62’s “Michigan Matters”; and website: www.nomadetroit.org. SAA and YPN members; $15 nonmem- Health Care Leadership Summit Chamber. With presiding officer Damon Keith, judge, bers. Contact: (248) 804-6433; website: and Health Care Heroes Awards, Dennis Archer Jr., 6th U.S. Circuit Court of Appeals. Cobo www.saaautoleaders.org. 7:30 a.m.-1 p.m. at the president and Oct. 29 Center, Detroit. $45 DEC members, THURSDAY San Marino Club, Troy. CEO, Ignition Me- $55 guests of members, $75 nonmem- dia Group. Learn bers. Preregistration required. Con- OCT. 24 Brand Logic: Strategy + Design = Keynote speaker is Maureen about Ignition’s tact: (313) 963-8547; email: info@econ Success. 5:30-8 p.m. Association for Bisognano, CEO of the Institute for U.S. Auto Industry Economic Outlook. Media Group’s club.org; website: www.econclub.org. Women in Communications. A discus- Healthcare Improvement, growth and tour 5:30-8:30 p.m. Society of Automotive sion on effective brand strategy. With Cambridge, Mass., and author of Alden Towers on Analysts’ Young Professionals Net- Vivian Carmody, brand strategist, and Pursuing the Triple Aim. National Organization of Minority Ar- work. With Martin Lavelle, senior re- Archer Detroit’s east Marilyn Trent, principal and creator, riverfront. Alden chitects Meeting. 5:30-8 p.m. Detroit search associate, Chicago Federal Re- Trent Design. Socra Tea, Detroit. Tickets are $105 for Crain’s Towers, Detroit. $20 chamber mem- chapter. With Peter Hathaway, busi- serve Bank, Detroit Branch; and Janell $20 AWC members, $30 nonmembers, subscribers, $90 for guests in bers, $50 nonmembers. Contact: Mari- ness diversity coordinator, Wayne Townsend, assistant professor of mar- $15 full-time students. Contact: groups of at least 10, $130 for an anne Alabastro, (313) 596-0479; email: County Airport Authority, on the keting and international business, Deniella Ortiz-Lalain, (248) 835-3636; offer that includes an event ticket [email protected]; web- emerging role of women and other dis- School of Business Administration, email: [email protected]; website: and a subscription to Crain’s, and site: www.detroitchamber.com. advantaged professional service Oakland University, discussing the www.womcomdetroit.org. $155 for nonsubscribers. The first 200 registrants will receive a complimentary copy of Bisognano’s book. For more information, call Kacey Anderson, (313) 446-0300, or visit crainsdetroit.com/events. Join the conversation on Twitter with #crainshealthcare. FRIDAY OCT. 25 2013 Michigan Cyber Summit. 8 a.m.-4 p.m. Washtenaw County Cyber Citi- zenship Coalition, Michigan office of the governor, National Governors As- sociation, others. Defending against cyberattacks and taking advantage of opportunities in the cybersecurity in- dustry. With Gov. Rick Snyder; Rober- ta Stempfley, deputy assistant secre- tary, Department of Homeland Security office of cybersecurity and communications; Cheri Caddy, direc- Ready to grow tor of cybersecurity policy integration and outreach at national security staff, Executive Office of the President; Dan Lohrmann, chief secu- rity officer, state of Michigan; others. your business? Suburban Collection Showplace, Novi. $35. Contact: (248) 353-0735; web- site: www.esd.org. Let’s customize a plan to UPCOMING EVENTS A Fireside Chat: Stories From Success- ful Entrepreneurs. 4-6 p.m. Oct. 29. Ma- comb-OU Incubator. With Mallory Brown, founder of World Clothes Line, make it happen. an apparel company with a mission of clothing the homeless. Brown was rec- ognized in 2012 by Crain’s 20 in their 20s for pioneering a business model that allows for-profit companies to em- brace a philanthropic mission. Ma- comb-OU Incubator at Velocity Collab- oration Center, Sterling Heights. Free. Contact: Joan Carleton, (586) 884-9324; CITIZENS BANK IS NOW FIRSTMERIT BANK. email: [email protected]; website: www.oakland.edu/macombouinc.

CEO Summit. 8 a.m.-3 p.m. Oct. 30. Business Leaders for Michigan. With keynote speakers former Gov. John En- gler, president, We’re here to help. Business Round- table, and Daniel At FirstMerit Bank, we make it our business to know your business. Burrus, strategic adviser to execu- With over one hundred years of experience creating tailored solutions tives from For- tune 500 compa- to meet unique business needs, we can help you make the best choices nies and author of Flash Foresight for your business. So, whenever you’re ready to chat, we’ll be here. and Technotrends. The agenda in- cludes John Rakol- Burrus ta Jr., chairman and CEO, Wal- bridge; Richard Haworth, chairman emeritus, Haworth Inc.; Hank Meijer, co-chairman and CEO, Meijer Inc.; Kurt Darrow, chairman, president and CEO, La-Z-Boy Inc.; Sandra Pierce, TO LEARN MORE, CONTACT: chairman and CEO, FirstMerit Michi- David Lochner, President, Michigan, gan; Veronika Scott, founder and at 248-324-8555 or david.lochner@firstmerit.com. CEO, The Empowerment Plan; Doug Rothwell, president and CEO, Busi- ness Leaders for Michigan; others. Westin Book Cadillac, Detroit. $125. Member FDIC Contact: Jennifer Hayes, (313) 259- 1403_FM13 FirstMerit.com/MeetUs 5400; email: jenniferh@businesslead ersformichigan.com; website: www.businessleadersformichigan.com. 20131021-NEWS--0021-NAT-CCI-CD_-- 10/18/2013 4:52 PM Page 1

October 21, 2013 CRAIN’S DETROIT BUSINESS Page 21 Treasury: Agenda of change awaits MARKET PLACE ■ From Page 1

Treasury Department to agree on a POSITIONS AVAILABLE BUSINESS OPPORTUNITIES settlement amount and payment plans. Bills target Treasury practices CUSTOMER SERVICE REP. NEEDED ATTENTION MARKETING A real estate agent is in urgent need of a COMPANY OWNERS! Eight pieces of state legislation tax liability, income and expens- Customer Service Rep. $300 weekly ENTREPRENEUR LOOKING TO BUY Audit fatigue pushed by business groups es or in determining unclaimed wages and applicant must have basic A privately held, international marketing clerical knowledge. Applicant should company is looking to expand through Tricia Kinley, senior director of would change audit deadlines, property liability. apply via email to tax and regulatory reform for the tax liability rules and enact pay- They take aim at the practice [email protected] acquisition. If you are looking to sell your Lansing-based Michigan Chamber of ment-plan options in some state of indirect auditing, where Trea- or text (484) 483-3146 marketing firm, let’s talk. Contact the owner directly, Commerce, said she has members taxpayer cases. The details: sury determines liability by a 100% confidential. partial review of records. who have waited six to 10 years for [email protected] The bills, which are at various FINANCIAL SERVICES Treasury to complete an audit, and Senate Bill 337 (248)891-2020 others have waited upward of four stages of approval in the legisla- years to find out whether they Senate Bill 337: This bill would tive process, generally ban the INVESTMENT OPPORTUNITIES would receive a refund and then set a one-year deadline for the use of partial records to assess li- several more years to actually re- Treasury Department to complete a ability when the taxpayer has Minority Certified AWP Equipment ceive the money. business’ tax audit. sufficient records to do a broader Rental Company “It is just unacceptable,” she said. Stan Weber, director of the de- review. Looking for a strategic partner to grow the partment’s tax compliance bu- business. Open to options. Product line Treasury says that the lengthy wishlist would be portable lighting, forklifts, audit examples from the chamber reau, said there are not many au- portable generators, etc. dits that take several years or a House Bill 4003 are outliers and that most of the Please forward all inquiries to: time, audits and refunds are com- decade to complete, but when A bill offered by Rep. John [email protected] pleted in less than a year. they do, it is because Treasury is Walsh, R-Livonia, would insti- Treasury officials also say they trying to work with the business tute an “offer in compromise” JOB are responsible for bringing rev- on an accurate resolution. program in Michigan, similar to MONEY PARTNERS WANTED enue into the state, while following The bill also requires the de- ones found in more than 40 other FRONT LARGE INVESTMENT FIRM, a multitude of statutes and using an partment to decide whether a states and in use by the Internal REAL ESTATE BUY BACK DEALS. aging computer system to do it all. business is entitled to a refund Revenue Service. 10 TO 12% INTEREST SHORT TERM. SALES And, they say, the department in within a year of the request. The It is a program designed for CALL PETER: (800) 826-2517 the past few years has continued to bill was approved by the Senate both individuals and businesses TECHNICAL SALES POSITION OR VISIT WWW.MID-CITY.NET do that while switching from the in May and is awaiting action in that do not have the ability to pay Jesco Products Co., Inc Michigan Business Tax to the new the House Tax Policy Committee. their entire past due tax bill but 6592 Arrow Dr., Sterling Heights, MI 48314 Corporate Income Tax and redoing wish to pay as much as possible. Manufacturer’s of Fluid Dispensing Systems for Advertise your the Personal Property Tax. If signed into law, it would al- the Automotive and General Industry. Senate Bill 64 low a taxpayer to apply, and if ac- Manufacturer’s reps. with experience and Products and Services in “If you look at what we’ve done, contacts in related industries. Email resume to: not only do we embrace change, This bill revises the state’s cor- cepted by Treasury, to agree on [email protected] Crain’s Detroit Business we’ve implemented dramatic porate officer liability, protect- an amount that is less than what change,” said Howard Ryan, Trea- ing company officials not respon- is owed and make a payment sury’s director of legislative affairs. sible for unpaid taxes. plan on the new amount. But Snyder said making changes SB 64 limits personal liability Glenn White, deputy treasurer in the department is an active pro- to the person or persons respon- for tax administration, said his REAL ESTATE ject for his administration that is sible for collecting the tax or fil- concern is he doesn’t want this to beginning with identifying barri- ing returns during the period of give people the impression they INDUSTRIAL PROPERTY COMMERCIAL PROPERTIES ers to see whether problems are be- default and who did not pay the can go without paying taxes and collected tax. then arrange to pay less than what ing caused by the way the depart- INDUSTRIAL BUILDING FOR SALE ment operates or from a statute or a The bill was approved by the they originally owed. regulation that could be changed. Senate in May and is now await- The department is working on IN WARREN ON M97 “I believe there are opportunities ing action on the House floor. details in the bill that it can sup- 19,872 Sq. Ft. with 400 Ft. of Groesbeck to improve the customer relation- port, that would put firewalls in frontage. 3.1 acres, Needs complete remodel, ship part of Treasury, and that’s House Bills 4288-4292 place so companies cannot use 2000 AMPS, 3 Phase with buse bar $425K. underway,” Snyder said. “It’s not political influence for tax bill Call: 586-468-8411 being ignored; it’s actually being These bills amend a handful of breaks. The bill is now on the Redford Sports Bar / Restaurant worked on.” state laws to greatly limit the use House floor after being approved INDUSTRIAL PROPERTY Land Contract $450,000 of indirect auditing in assessing in the Tax Policy Committee. Motivated Seller, Recently Renovated AVAILABLE NOW Includes; IT investment • Building And Parking Lot Taylor/Romulus Area Near Detroit Metro Airport • Liquor & Lottery License Treasury’s legislative liaison, Treasury Department reform a taxes have been slashed or elimi- 4,000 to 80,000 sq. ft. • Full Kitchen major priority. nated, as have more than 1,000 reg- Ideal for logistics, mfg., service co., distribution, • 20 Flat Screen TV’s Paul Connors, recently told the • Greg Nowak, head of the state ulations, all part of achieving one office warehouse etc. Call for Availability Sound Equipment & Speakers House Tax Policy Committee that Yvon Rea 734-946-8730 • Outdoor Patio the department was not support- tax practice and a principal at De- of the top goals of Republican state or • visit our website www.reaconstruction.net Security System ing some of the bills putting troit-based Miller, Canfield, Paddock lawmakers and the Snyder admin- CONTACT: LARRY WILLIAMS (248) 917-2323 tighter timelines on giving out re- and Stone PLC, has been working istration — to make Michigan one AUCTIONS Real Living Kee Realty funds because the computer sys- with Treasury on behalf of the of the best places in the country to 210 E. University tem that handles those is being re- Troy-based Michigan Association of do business. MINIMUM BID AUCTION Rochester, MI 48095 placed next year. Certified Public Accountants since “We definitely want to make the 1221 Lancelot Court [email protected] Connors said it would be just an- early 2012. Department of Treasury more re- Pinckney, MI other diversion, and the depart- “The atmosphere, the relation- sponsible and less hostile to small COMMERCIAL PROPERTIES ment wants its limited staff to fo- ship between taxpayers and the de- businesses,” said Sen. Jack Bran- cus on enforcing the current laws, partment has been adversarial. denburg, R-Harrison Township, BISHOP AIRPARK GEM, Flint MI. many of which have changed dra- That evolved over a number of chairman of the Senate Finance One of a kind, this bldg features a 6,000 sq. matically in the past three years. years,” Nowak said. “We’re very Committee. “If they don’t want to re- ft. hanger w/DIRECT RUNWAY ACCESS to Other computer systems in use encouraged by the appointment of form, we are going to reform them.” Lakefront Bishop Airport, a 3,400 FT. LUXURY APT w/2 at the department are several the new treasurer. Hopefully, it But complaints over the length MINIMUM BID bdrms, 2 full baths & 7,000 ft. of AAA Office will accelerate the effort to identi- of time an audit takes are common $899,000 Space on 2 floors & complete back up pwr decades old and are also in various system. Priced to Sell at $795,000. fy areas for improvement.” in every state, said Verenda stages of being replaced. AUCTION DATE: But Snyder told Crain’s that Nowak said Dillon was commit- Smith, deputy director of the Sun, Oct. 27th Contact David Goldstein, ted to changing the environment Washington, D.C.-based Federation at 1pm Tremaine Real Estate (810) 750-5522 while he knows the system needs a Or go to: www.cpix.net, fair amount of work, he is not go- at the department, but such a large of Tax Administrators. The organiza- SUNDAY OPEN HOUSE DATES: Search Agent Goldstein Site ing to say it is OK to wait because organizational change was needed tion provides research and train- Oct. 13th & 20th from Noon-3pm the department has an IT problem. that it was difficult to implement. ing to state tax authorities, of ‡Originally Listed $2.1 Million FAMILY RESTAURANT “You have to be careful on doing “There is a belief that there is a which Michigan’s treasury depart- ‡27+/- wooded acres on Portage FOR LEASE that because you don’t want to put culture of aggressiveness at the de- ment is a member. Lake & Honey Creek OXFORD, MI. it off because we have an issue,” he partment,” Nowak said. And the complaints do not just ‡,600+/- SF long log home 4,700 Square Feet said. “They need to have a kinder, come from the taxpayers, Smith ‡)eaturing a dramatic great room Call for Details gentler face,” said Sen. Mike said. ‡* ourmet kitchen Bob: 248-821-7476 Legislative push Kowall, R-White Lake Township, “I hear the same complaints ‡3rivate master suite chairman of the Senate Economic from the tax auditors,” she said. ‡%ring the Up North lifestyle home The eight pieces of current legis- Development Committee. “They “There is plenty of foot-dragging to enjoy every day of the year. Call or email today for information need to be brought into line and re- that goes on, on both sides.” lation, under development for at Rose Auction Group, LLC on a custom advertising plan! least a year, have been champi- minded they are a service organi- Chris Gautz: (517) 403-4403, zation, and not just punitive.” [email protected]. Twitter: 877.696.7653 [email protected] oned by business groups and sev- RoseAuctionGroup.com 313.446.6068 eral lawmakers who consider In the past three years, business @chrisgautz 20131021-NEWS--0022,0023-NAT-CCI-CD_-- 10/18/2013 5:28 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS October 21, 2013 Soccer: Backers of local MLS team must beat odds to succeed ■ From Page 1 But before the financial success mission to approve. A committee feet of residential space including Properties, said he’s received inter- with a net worth of $1.08 billion. of a Detroit team is even a consid- vote could happen this week. two towers, and 1.3 million square est from celebrities here about mi- Triple Properties owns 11 mil- eration, the Apostolopoulos family The other bidder is Dan Gilbert’s feet of office space and parking. nority ownership stakes in the lion square feet of property around must first secure the land it wants, Rock Ventures LLC, which proposes a The stadium is estimated to cost team. He declined to name names. the world, including New York and then get MLS to agree to sell it $500 million development of 1.7 mil- $230 million to $250 million, and The jail site became available af- City, Chicago, London, Greece and the rights to run a team in Detroit. lion square feet, with 700 residen- the cost to buy into the MLS is typ- ter the county in June put a 60-day Australia. All of that could happen in com- tial and hotel units and 200,000 ically $40 million to $70 million. moratorium on construction of the If they don’t get the jail site, the ing weeks and months. square feet of retail and parking. The investment fee for the right jail, which was $91 million over Apostolopouloses say they intend The Apostolopouloses, Greek- to operate an MLS team usually is budget. to continue to pursue an MLS team. born Canadian commercial proper- paid over three years. The Wayne County Building Au- ty developers who bought the Ponti- The plan The Apostolopouloses haven’t thority in August voted to termi- ac Silverdome in 2009, are one of two The Apostolopouloses’ Toronto- disclosed how they will pay for the nate the jail project contract with Soccer finances bidders on the unfinished jail site based Triple Properties Inc. plan is a project other than they intend to Detroit-based builder Walbridge The league said it does not com- off Gratiot Avenue near I-375. $1 billion-plus development that in- use debt financing for some of it Aldinger Co., and the county then be- ment on its finances, but it’s been A committee has met several cludes a 25,000-seat open-air soccer and family money for the rest. gan to seek redevelopment bids. reported that MLS had about $230 times in recent weeks to hash out a stadium, a 275,000-square-foot retail They want to begin play by 2016. Forbes ranked patriarch Andreas million to $300 million in revenue recommendation on which project complex with high-end retailers Steve Apostolopoulos, co-founder Apostolopoulos and family as the last season, according to various to pick for the Wayne County Com- and food courts, 1 million square and managing director of Triple 61st wealthiest Canadians in 2012 analyses from a number of soccer and sports finance bloggers. The league says that range is low but declined to offer an alternative. Those working in the elite level of pro soccer say the Apostolopoulos bid can work, but it won’t be easy. “I don’t think it’s impossible to make an MLS expansion franchise successful in Detroit, but it will be “ HOW CAN DTE ENERGY difficult,” said Andy Appleby, founder of General Sports and Enter- tainment LLC in Rochester. He’s is HELP MY BUSINESS SAVE?” co-owner and chairman of Derby County Football Club Ltd., an English professional soccer team playing in Each business is different, so DTE Energy offers an online Interactive Business tool which Britain’s second-highest level of pro soccer. lets you get information tailored to your specific business environment. From grocery “The (MLS) franchise fee is sub- stores to warehouses, you’ll find tips, incentives, rebates and more that will help you stantial, but the development cost of a new stadium would also be reduce your energy use. We also provide a number of other online tools to help our very large on that site or any oth- er,” said Appleby, who organized business customers use less energy and save more money. an investment consortium that bought the Derby County club and its 33,597-seat Pride Park Stadium for $100 million in January 2008. While the English Premier League is widely considered the DTE wants to help you save, so get started at pinnacle of professional soccer, only eight of its 20 clubs had a prof- dteenergy.com/interactivebusiness it in 2011-12 despite $3.8 billion in leaguewide revenue, according to a report last year from Britain’s The Guardian newspaper. Detroit bid Dan Courtemanche, MLS execu- tive vice president for communica- tions, said the league has had pre- liminary discussions with the Apostolopoulos family about bring- ing a team to metro Detroit. There are not current talks, but MLS is interested in Detroit for a possible expansion team, he said. “We’ve been certainly monitor- ing the market,” he said. “We’ve seen and read about the plans.” Courtemanche has said MLS will expand by four teams, to 24, by the 2020 season. Three likely markets will be Miami, Orlando and Atlanta. There’s been speculation about Om- aha, Neb., and the Carolinas, too. Factors that drive bids include size of market, availability of sig- nificant corporate sponsorship, ge- ography, overall sports culture, the potential owner’s financial re- sources and a stadium plan. In May, it was announced that baseball’s New York Yankees and EPL club Manchester City have jointly agreed to pay $100 million for the rights to a second MLS team in New York. It will be the league’s 20th. Start saving today visit: When New York FC begins play in 2015, it will be the 10th MLS dteenergy.com/interactivebusiness team added since 2005. MLS shrank to 10 teams from 12 in 2001, with the Miami Fusion and

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October 21, 2013 CRAIN’S DETROIT BUSINESS Page 23

From Previous Page RECENT STADIUMS BUILT FOR MLS TEAMS Tampa Bay Mutiny being eliminated. Just three of the reasons Recent professional soccer-specific stadiums built for Major League Soccer teams include: to book our bus. A unique model Ⅲ Houston’s BBVA Compass Stadium in 2012. The $95 million, 22,039- seat venue is home to the MLS’ Houston Dynamo and Texas Southern An MLS team in Detroit would MIKE DONNA MITCH represent the first new major pro University. The team paid $60 million of the cost, according to the Houston Chronicle, and the remainder was public funding. Driver Customer Service Mechanic sport in the city since the Detroit Ⅲ Pistons arrived from Fort Wayne, In 2010, 18,500-seat PPL Park opened as home of the MLS’ You’ll love this Our girl Friday (... and If it ain’t broke, he’ll Philadelphia Union in Chester, Pa., for $120 million, which was nearly every other day, too!) Ind., in 1957, and it would be entirely publicly funded. man in uniform. check it anyway.y y unique in its ownership structure. Ⅲ Also in 2010, 25,189-seat Red Bull Arena opened in Harrison, N.J., as the MLS is a single-entity business, $200 million home of the New York Red Bulls. It was designed by Southfield- meaning all teams are owned by based architects Rossetti Associates Inc. and paid for by the team. Much of the league and all players are its the proposed ancillary office, retail and residential components, financed employees rather than employed publicly, remain unbuilt, according to several media reports. by the club. MLS pays the players. Ⅲ In 2008, the Montreal Impact began play at 20,051-seat Saputo Team “owners” pay an invest- Stadium; its $47 million was privately funded. ment fee to MLS for the right to op- Ⅲ In 2007, the city of Toronto built the $63 million, 22,453-seat BMO Field, erate a team in a geographic area. used by Toronto FC; and Commerce City, Colo., split the $131 million cost They become league shareholders of 18,086-seat Dick’s Sporting Goods Park with the owners of MLS’ rather than franchise owners. Colorado Rapids. Teams keep their own books and Source: Crain’s research budgets. An advantage of a single-entity The national television revenue There is no free agency in MLS. structure is it gives MLS still likely will be dwarfed by what Its collective bargaining agree- economies of scale, such as group the other U.S. pro leagues are paid ment with its players expires after disability insurance. for their broadcast rights. the 2014 season. MLS operates much like the four Baseball’s multiyear deals that MLS has what it calls the Desig- major U.S. pro sports leagues in begin in 2014 with Turner Broadcast- nated Player Rule that allows each that it shares certain revenue ing System Inc., Fox Sports Media team to sign up to three players among all the member clubs, and Group and ESPN will pay the whose salary exceeds the cap. The teams keep other revenues for league a combined $12.1 billion rule is designed to allow teams to themselves. through 2012. sign international stars. It splits equally among each The NHL gets $300 million year- For such players who are older team its national television broad- ly from deals with NBC Sports and than 23, teams are charged $368,750 cast revenue, licensing fees and the Canadian Broadcasting Corp. against the salary cap, but the any expansion fee. Home teams The most lucrative collection of money is paid by the league rather keep 70 percent of ticket sales, and TV rights deals is the $28 billion than out of the team’s budget. The the other 30 percent is shared the NFL will collect between 2014 team’s owner picks up the remain- t NEWNEW MODELMODEL COACHESCOOACCHES equally among the other clubs. and 2022 from Fox, NBC and CBS. der of the excess salary out of his t
FREE WIFI t
24/7 DISPATCH Each team keeps any local TV NBC Sports is in the first year of own pocket. Younger players have ECO-FRIENDLY what Sports Illustrated reported t
rights revenue, on-site merchan- a lower cap charge. EXPERT BOOKING CONSULTANTS dise sales, any game-day conces- earlier this year as a three-year, t
Steve Apostolopoulos said he is AFFORDABLE RATES sions and parking, and money $250 million deal to air 380 Premier committed to signing a “big-name t
from jersey sponsorships, stadium League games. player from overseas.” He declined naming-rights deals and local cor- A handful of MLS teams have lo- to name names. cal cable TV deals. The L.A. Galaxy porate sponsorships. Bill Shea: (313) 446-1626, reportedly signed a 10-year, $55 mil- 800-292-3831 indiantrails.com Apostolopoulos said they are in [email protected]. Twitter: lion contract with Time Warner Cable contact with potential corporate @bill_shea19 sponsors, but declined to say in 2011, which represents the high whether those are for jersey spon- end of such deals for MLS teams. sorship or other marketing efforts. Some MLS teams still pay local Marietta, Ga.-based Home Depot cable operators to carry games, or Inc. paid $70 million over 10 years barter air time in exchange for a to put its name on the stadium percentage of advertising sales. shared by MLS teams L.A. Galaxy “It’s still too early for TV and Chivas USA, and that deal was (deals),” Apostolopoulos said. replaced by an undisclosed spon- “We’ve had preliminary discus- sorship from StubHub in March. sions. I don’t think we’ll have an is- Unlike the other U.S. pro leagues, sue getting a strong contract with a MLS teams can sell jersey sponsor- TV network. It may take time to put ships — a universal practice with together, but I think we’re sitting in big money in the soccer world. a good position.” For example, the Galaxy signed Apostolopoulos believes a Detroit a 10-year, $44 million jersey logo MLS club can average up to 21,000 deal with Los Angeles-based fans per game and have a season Herbalife Ltd. in 2012. ticket holder base of about 10,000. “That’s something that can put a MLS’ 19 teams averaged a collec- team over the top,” Courtemanche tive 18,807 fans per game last sea- said. son, which runs from March to Oc- MLS jersey deals are a shadow tober. That was the best average of what English Premier League since the league began play in teams are paid. 1996. It drew about 6 million fans Last year, Chevrolet signed a in total in 2012. seven-year, $600 million to become Each team plays 34 regular-sea- Manchester United’s jersey sponsor son games, typically including 17 starting in 2014. home games. MLS teams can have Dubai-based Emirates airline re- an unbalanced number of home portedly is paying Real Madrid $30 and road games. million annually to have its name The Seattle Sounders led MLS in on its kit, or soccer outfit. average per-game attendance last season with 40,923 at CenturyLink Field. The venue seats 67,000 for the TV money NFL’s Seattle Seahawks. MLS is gradually increasing how much money it gets from na- tional networks to air its games. Player costs That revenue is shared equally MLS teams have a 30-player ros- among the teams. ter, and the average salary for NBC Sports Network agreed in players is $160,000 as of 2013. 2011 to pay $30 million to air 45 The 2013 MLS per-team salary MLS games over three years. cap is $2.95 million. By contrast, That contract, along with deals the NFL’s current per-team pay- with ESPN and Univision, expire af- roll limit is $123 million, and quar- ter the 2014 season. New deals are terbacks average $3.8 million an- expected to pay the league more. nually in salary. 20131021-NEWS--0024-NAT-CCI-CD_-- 10/18/2013 5:38 PM Page 1

Page 24 CRAIN’S DETROIT BUSINESS October 21, 2013 Struggle: PJ’s worries while new bars, restaurants open ■ From Page 3 Ryder has more than $30,000 in was told that he needed his sales to “We’ve hit the bounce back from they are going to feel three years weekend janitor there when he credit card debt, money he used to top $250,000. Check. Just two weeks the economic downturn from 2008 from now if their cash reserves have first moved to Detroit in 2001-02. open a kitchen three years ago. Al- ago, loan officers said his business and 2009. We have several mem- been depleted like our cash reserves Ryder did not own the bar then. though he never wanted to be in must make $1.25 in profit for every bers extending their current busi- have and they begin to wonder, Cooley praised the current menu the restaurant business, when $1 being spent to run it. That’s a far nesses, opening two or three addi- ‘How do we increase business?’ ” and said a live music venue is Michigan’s smoking ban went into cry from his 2012 profit of $1,000. tional locations.” Erik Melander, Ryder’s accoun- needed in the neighborhood. effect in 2010, he realized he would Still, other entrepreneurs aren’t De Ceuninck said Detroit is an tant, warns that profit expecta- “Most of the places opening up need more of a draw than just mu- discouraged. At least eight new interesting case study because tions need to be tempered in the seem to be doing fairly well, but sic and booze. He also owes $24,000 Corktown restaurants have opened there’s a mix of bars and restau- bar and restaurant world. that doesn’t mean that everyone is in back taxes, mostly sales tax. or are scheduled to open this year, rants that have weathered the Lager House sales have been flat doing well,” Cooley said. “There PJ’s brought in $481,000 in sales including Motor City Wine, Ottava Via, storm and been in business for in 2013, but Ryder has grown the was definitely skepticism when we in 2012, all of which went right back Rubbed, St. CeCe’s Pub and the Detroit decades, while there’s also an ex- business every year since it opened. opened up, but it’s certainly better out the door in the form of running Institute of Bagels. But many of the plosion of new establishments try- He said Ryder is undercapitalized than it was. There is more opti- the business. Here’s a breakdown: new businesses are clustered up the ing to find an identity. — he has too much debt and not mism about Detroit’s future and His cost of goods, including beer, street and are within walking — and Ryder said he believes Detroi- enough profit — like many other doing business in Detroit. liquor, food and music: $242,000. parking — distance of each other, ters just assume he’s doing good restaurants around town. Still, he “I hope PJ sticks with it, and I Wages: $108,000. Sales tax: $27,000. while PJ’s is stranded on a block business because the Lager House, continues to watch them open. hope that he becomes more prof- Rent: $58,000. Business fees: $13,000. closer to downtown, his only neigh- which employs about a dozen peo- “I call it the ‘starry-eyed effect’ — itable,” he added. “The investment Other expenses, such as bar sup- bors the not-yet-open bagel shop and ple, has been a Corktown fixture there are people who just want to he’s put in it has been really great. plies, T-shirt printing and paying breakfast/lunch-only Brooklyn Local. since it opened in 1914 as a bakery own a business and decide they I know that we all in this neighbor- his accountant: $32,000. His total ex- “One person’s story doesn’t nec- and restaurant. There have been want to open some place where all hood have struggled in many penditures were $480,000. essarily indicate the state of the in- various versions and owners of the their friends can hang out,” said Me- ways. We spend money every year Ryder has been trying to borrow dustry — we are seeing that the in- space, but because it’s been at the lander. “You see a lot of people get- on security that you wouldn’t nor- $50,000 to $60,000 from Bank of Ameri- dustry is definitely growing,” said same location and open for so long, ting into business for emotional rea- mally have to. There are addition- ca to keep things afloat, but has Adriane De Ceuninck, vice presi- he thinks it might get overlooked. sons instead of economical ones.” al costs of doing business here. been denied. Early on he was told dent of marketing and communi- “What we need is more people,” Phil Cooley, co-owner of Slows, There’s a lot of upside, but I don’t that he had to be in business for at cations for the Lansing-based he said. “I love that all these places which opened in 2005, has a con- want to ever make it seem like it’s least two years. Check. Then he Michigan Restaurant Association. have opened up, but I wonder how nection to PJ’s — he worked as a easy.”

Systems: ’13 finishes strong, but ’14 financial outlook uncertain ■ From Page 3 $2 million gain on Medicaid expan- million in 2011. The decline was at- outpatient surgery center in Ann sion. FINANCIAL PULSE OF METRO DETROIT HOSPITAL SYSTEMS tributed to a $23 million increase Arbor, he said. Like Gusho, Castillo said it is too in uncompensated care and $36.4 Systems improving financial performance in the 2013 fiscal year ending But one of St. Joseph’s greatest early to know if there will be July 31 (in millions): million spent to install an electron- challenges last year was being at growth in rev- ic medical records system. Net income Operating income the epicenter of the fungal menin- enue from an ex- Most systems in Southeast Michi- gitis outbreak in Michigan, Gusho 2013 2012 2013 2012 pected increase gan are planning additional cost- said. University of Michigan $67.8 ($9.9) $2.7 ($7) in private pa- cutting in 2014 to make up for reim- More than 195 patients were tients on the St. John Providence $108.6 $58.7 $59.4 $89.2 bursements that are not keeping up treated earlier this year at St. Michigan Health St. Joseph Mercy $102.6 $72.3 $68 $81.1 with expenses and required capital Joseph hospitals, which accounted Insurance Mar- Source: Audited financial statements spending. for more than half the 264 patients ketplace, the treated statewide. There were 19 state’s new ex- Systems that completed the fiscal year on Dec. 31, 2012 (in millions): deaths in Michigan. change, which More cuts ahead? Net income Operating income “It was new territory. We were begins coverage Besides an expectation of rising helping to identify new treatments, Castillo 2012 2011 2012 2011 Jan. 1. Open en- uncompensated care, another and patients were in-house for ex- rollment started Oct. 1 for individu- Beaumont Health System $108.5 $35.5 $57.7 $26.1 round of Medicare reimbursement tended periods,” Gusho said. “It als and businesses with fewer than Henry Ford Health System $53.2 $62.9 NA NA and sequestration cuts are expect- was a challenge on staffing and 50 employees. Oakwood Healthcare $39.6 $16.8 $21.3 $13.1 ed to dampen profitability in 2014, taxed our resources for several “We anticipate volume will be Source: Audited financial statements system executives said. months.” positive,” Castillo said. “We expect “It is a tough market and we an- the overall short-term (first six ticipate it to remain so,” Gusho months of the year) to be neutral. said. “Our bad debt and charity Focus on expenses There won’t be a big uptake (in pa- Despite losing $35 million on op- enue to $2.5 billion and a 4.5 per- care is at higher levels than histori- All systems in Southeast Michi- tients) from the exchange. We erations during the first six cent increase in patients. cally.” gan are fixated on reducing operat- know there will be some.” months of the fiscal year, UM “We still have incremental costs Bad debt and charity care have ing costs. In 2013, St. Joseph slowed But another unknown for hospi- Health and Hospitals posted net in- for Epic, but we will have moder- been increasing the past three operating expense increases to 2.3 tal budget planners next year is come of $67.8 million for the full 12 ate volume growth,” he said. years at St. Joseph, as with most percent from 8.6 percent in 2012. what decisions midsize employers months of fiscal 2013. The system Dampening profitability over the systems. St. Joseph uncompensat- “We are watching how we use will make on their employee rebounded in the second half of the past two years for the UM Health ed care increased several million our resources and are introducing health insurance, he said. year by earning $38 million on op- System has been its Epic billing dollars in 2013 to 3.8 percent of rev- new management tools for staf- “If they opt out and (send their erations, Castillo said. and clinical information system enue in 2013 from 3.5 percent in fing,” said Gusho, adding that the employees to) the exchange direct- “We got off to a negative start in and its two replacement hospitals. 2011, Gusho said. system has been managing inpa- ly, we don’t know if the value of in- first quarter (of 2013). … We had UM is spending more than $800 mil- “It is going to be a challenge to tient length-of-stays more effec- surance today will be something brought live Epic’s MiChart (out- lion on its Epic system and spent remain stable with all the uncer- tively. more or less” than they had with patient electronic medical record more than $750 million on the new tainty in 2014,” he said. “We are For example, St. Joseph has im- their previous group policies, system), and there was a little C.S. Mott Children’s Hospital and Von working very hard, but at the end proved patient flow from the emer- Gusho said. more cost than we expected and Voigtlander Women’s Hospital. of the day, we will have great qual- gency department through inpa- For example, hospital executives (productivity declines) on the am- Earlier this year, Crain’s report- ity outcomes. We want to become tient admission and discharge, have told Crain’s that the increased bulatory side,” he said. ed 2012 financial results for South- the people’s partner.” which reduces staffing demands. use of high-deductible health plans But as fiscal 2013 proceeded, east Michigan’s other main health Gusho said one negative trend in The employee vacancies area is — which have lower premiums be- Castillo said, expenses leveled off systems, including Royal Oak- 2013 — a decline in outpatient also more carefully scrutinized for cause there is more out-of-pocket and revenue increased, with inpa- based Beaumont Health System, De- surgery — is expected to continue patient care needs. cost sharing — have led to an in- tient discharges growing by 1 per- troit-based Henry Ford Health System in 2014. St. Joseph’s outpatient surg- Gusho said St. Joseph has crease in bad debt. cent and outpatient revenue in- and Dearborn-based Oakwood eries declined 12 percent to 40,843 worked up a number of financial creasing by 11 percent. Healthcare. Those systems’ fiscal from 46,670 in 2012. scenarios over the next several “We had a positive performance year ends Dec. 31. “We have a lot of freestanding years under Obamacare. Strong finish to fiscal 2013 in the second half of the year,” In 2012, Beaumont and Oakwood ambulatory surgery centers in the “We have a three-year plan that Buoyed by a strong stock mar- Castillo said. reported higher net income than marketplace. They do have a less we update every year. Things keep ket, St. Joseph and Detroit-based Looking forward into 2014, the previous year. Beaumont costly operating model because changing. The best-case scenario St. John Providence Health System Robert Hewlett III, UM’s finance earned $108.5 million, a 208 percent they don’t have (higher overhead (is) everything will remain the posted strong bottom lines in fiscal director, said the health system is increase, and Oakwood earned $39.6 and accreditation requirements) same,” he said. 2013 that ended July 31 with net in- projecting a 1 percent operating million, a 138 percent increase. than hospitals have,” Gusho said. Jay Greene: (313) 446-0325, come of $102.6 million and $108.6 margin. The health system also Henry Ford earned $53.2 mil- To compete more effectively, St. [email protected]. Twitter: million, respectively. projects 6.3 percent growth in rev- lion, a 15 percent drop from $62.9 Joseph is building a $30 million @jaybgreene 20131021-NEWS--0025-NAT-CCI-CD_-- 10/18/2013 4:49 PM Page 1

October 21, 2013 CRAIN’S DETROIT BUSINESS Page 25

China: Detroit real estate deals expected to continue www.crainsdetroit.com EDITOR-IN-CHIEF Keith E. Crain ■ From Page 1 GROUP PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] ASSOCIATE PUBLISHER Marla Wise, (313) 446- Profile of a buyer China goes boom vanovich said. “They are awash 6032 or [email protected] with cash right now, and we’re go- EXECUTIVE EDITOR Cindy Goodaker, (313) 446- China has been in an economic 0460 or [email protected] Lou Longo, consulting partner While the ing to see another 100 Chinese com- MANAGING EDITOR Jennette Smith, (313) 446- and head of international business growth mode for more than two “ panies investing in Detroit over the 1622 or [email protected] decades. Its gross domes- MANAGER, DIGITAL CONTENT STRATEGY Nancy consulting services at Plante Moran bankruptcy is next five years.” Hanus, (313) 446-1621 or [email protected] PLLC in Chicago, said the Chinese tic product expanded 7.7 The association hosted a real es- MANAGING EDITOR/CUSTOM AND SPECIAL percent in 2012. Many, PROJECTS Daniel Duggan, (313) 446-0414 or see the U.S, especially Detroit, as a viewed as a bad tate meeting last month at the [email protected] low-cost, high-growth market, par- even most, economists Madison Building in Detroit with a SENIOR EDITOR/DESIGN Bob Allen, (313) 446- predicted in past years thing elsewhere, 0344 or [email protected] ticularly for real estate. delegation from several provinces SENIOR EDITOR Gary Piatek, (313) 446-0357 or Chinese commercial real estate that China would surpass in China. [email protected] the U.S. as the world’s it raised the WEB EDITOR Kristin Bull, (313) 446-1608 or purchases in the U.S. reportedly [email protected] totaled more than $3 billion in largest economic power, WEST MICHIGAN EDITOR Matt Gryczan, (616) 916- 8158 or [email protected] 2012. although the country’s exposure level of Waterfront project? growth target is moving DATA EDITOR Brianna Reilly, (313) 446-0418, According to a June report by Stevanovich said a group of Chi- [email protected] closer to 7 percent amid Detroit’s real WEB PRODUCER Norman Witte III, (313) 446- real estate firm CBRE, the U.S. is the nese government officials and in- 6059, [email protected] curbs on credit expansion, local largest market for Chinese real es- vestors is particularly interested EDITORIAL SUPPORT (313) 446-0419; YahNica property development and over- estate market in Crawford, (313) 446-0329 tate investment and investors, both in a riverfront development con- capacity, according to Bloomberg NEWSROOM (313) 446-0329, FAX (313) 446- commercial and individual. These cept. The idea would be to create a 1687 TIP LINE (313) 446-6766 reports. China. investors are expected to spend marina, resort and yacht building REPORTERS China’s economic growth has ” $178 billion in the U.S. over the next Evonne Xu, development in metro Detroit. Jay Greene, senior reporter: Covers health care, largely been driven by its real insurance, energy utilities and the environment. few years. Howard & Howard Attorneys PLLC Ten delegates from Hainan and (313) 446-0325 or [email protected] estate market, which accounts Nantong provinces, Chinese busi- Amy Haimerl, entrepreneurship editor: Covers Longo said the DDI deal embod- for 13 percent of its $8.22 trillion entrepreneurship, second-stage companies and ies the perfect real estate invest- more of a land use contract, con- ness leaders and Miami-based yacht small business. (313) 446-0416 or GDP, according to recent reports, [email protected] ment for a Chinese firm. tracts which must be held as long builder Paracas Yachts have been in the same as the U.S. market in Chad Halcom: Covers litigation, higher education, “Chinese investors are looking at as 40 years in some cases, Xu said. contact about the potential project, non-automotive manufacturing, defense 2011. Some recent reports by econ- Stevanovich said. contracting and Oakland and Macomb counties. what I’d call term ‘value-based omists state that real estate in- (313) 446-6796 or [email protected] deals,’ ” Longo said, adding that The group is hoping to create Tom Henderson: Covers banking, finance, vestment in China over the past New relationships the marina on the Detroit river- technology and biotechnology. (313) 446-0337 or historic buildings are of particular few years may actually make up 20 [email protected] Gov. Rick Snyder embarked on front or along the 34 miles of wa- Kirk Pinho: Covers real estate and the city of interest. percent to 30 percent of the coun- his third mission trip to China in terfront on Lake St. Clair in Ma- Detroit. (313) 446-0412 or [email protected] “They got the buildings at an try’s economy. Bill Shea, enterprise editor: Covers media, as many years in September to bol- comb County. advertising and marketing, the business of sports, auction for a bargain price, and I In 2011, 41 percent of Chinese and transportation. (313) 446-1626 or ster more Chinese investment in “We’re sitting on fresh water don’t see them looking at this as a household wealth was wrapped up [email protected] the region. that doesn’t exist in China,” Ste- Nathan Skid, multimedia editor: Also covers the 40-year hold. I think their local in real estate, compared to just 26 food industry and entertainment. (313) 446-1654, Following his trip, Snyder said vanovich said. “It would be nice to strategy is to get quicker returns on percent in the U.S., according to a [email protected] in a statement: “This is just the be- have yachts built in Detroit, with Dustin Walsh: Covers the business of law, auto their invested capital that they are Washington Post report. suppliers and steel. (313) 446-6042 or ginning of what Michigan has to the manufacturing expertise here, seeing in China.” The real estate boom led to a [email protected] offer the China market, and we are and we’re hoping to get a marina Sherri Welch: Covers nonprofits, services, retail Longo said he predicts DDI will sharp increase in wealth among and hospitality. (313) 446-1694 or making a strong case with every and resort.” hold the property for 15 years or savvy investors, but the market is [email protected] executive we meet to build the Xu said Michigan’s open space LANSING BUREAU less, which is considered a short- viewed as unstable as prices con- Chris Gautz: Covers business issues at the Capitol foundations for long-term invest- and natural resources will draw term investment in China. tinue to rise, Xu said. and utilities. (517) 403-4403 or [email protected] ment in our state.” more investment in the future as Evonne Xu, associate attorney Xu was hired in 2012 to lead Chi- ADVERTISING Nigel Francis, the Michigan Eco- the region’s exposure grows. and counselor for Royal Oak-based nese transactions for Howard & SALES INQUIRIES (313) 446-6052; FAX (313) nomic Development Corp.’s newly “With Chinese investing more, law firm Howard & Howard Attorneys Howard. 393-0997 appointed automotive adviser, has more will be drawn to invest, and SALES MANAGER Tammy Rokowski PLLC, said China’s interest in De- Headlines in China this year of- been in China since last week to this will expand beyond automo- SENIOR ACCOUNT EXECUTIVE: Matthew J. troit stems from the city’s per- Langan ten read something like this: sell the state’s auto market to in- tive,” Xu said. “I see food process- ceived image. She said a video of a ADVERTISING SALES Christine Galasso, Jeff “Shanghai New Home Prices up terested investors and companies. ing for the fish in the state as a Lasser, Dale Smolinski, Sarah Stachowicz Detroiter describing buying sever- 273% in 7 years” or “Home prices Chinese investment in Michi- new investment for the Chinese.” CLASSIFIED SALES Angela Schutte, manager, al homes in the city for the price of (313)-446-6051 spike 15% in key Chinese cities.” gan reached the $1 billion mark in Xu also said there’s immense in- a pair of nice shoes went viral in GENERAL MANAGER/MARKETING AND EVENTS “The Chinese economy is slow- 2012, according to the state, and terest among Chinese business Elizabeth Buscher China. DIGITAL MARKETING MANAGER ing down, and there’s a lot of politi- Michigan ranks ninth in the U.S. owners in investing in golf courses “So many people in China be- cal uncertainty — the Republic of Jennifer Chinn for direct investment from China. and creating new trade endeavors. DIRECTOR, INTEGRATED MARKETING Eric Cedo lieved that and became very inter- China has only existed for 65 years,” However, nearly 95 percent of Chi- “We have an educated work- EVENTS MANAGER Kacey Anderson ested in the market here,” Xu said. Xu said. nese investment is automotive- force, less competition and more SENIOR PRODUCER FOR DIGITAL/ONLINE “While investment in China re- PRODUCTS Pierrette Dagg She also said Detroit’s munici- related. space here than on the East and MARKETING ARTIST Sylvia Kolaski pal bankruptcy raised the city’s mains relatively friendly, the people Milan Stevanovich, manager of West coasts, and that’s an advan- SALES SUPPORT Suzanne Janik, YahNica Crawford exposure to potential Chinese in- want to diversify their investments, business and community relations tage for Michigan,” Xu said. PRODUCTION MANAGER Wendy Kobylarz vestors. and the U.S. makes sense — and De- at the Troy-based Detroit Chinese “We’ve put a lot of effort in mak- PRODUCTION SUPERVISOR Larry Williams CUSTOMER SERVICE “They want to invest in a low troit especially — as the Chinese are Business Association, said his orga- ing metro Detroit friendly to Chi- MAIN NUMBER: Call (877) 824-9374 or write market and resell when the mar- familiar with the automotive indus- nization has seen interest from nese investors, and with more [email protected] ket comes back,” Xu said. “While try here.” China rise sharply, beyond auto- work, we could make Michigan SUBSCRIPTIONS $59 one year, $98 two years. Out of state, $79 one year, $138 for two years. the bankruptcy is viewed as a bad Government policy in China re- motive. better.” Outside U.S.A., add $48 per year to out-of-state rate for surface mail. Call (313) 446-0450 or thing elsewhere, it raised the ex- quires long holds on properties and “China is the most complex and Dustin Walsh: (313) 446-6042, (877) 824-9374. posure level of Detroit’s real es- the land remains government- nuanced financial environment [email protected]. Twitter: SINGLE COPIES: (877) 824-9374 tate market in China.” owned, making real estate deals and is difficult to pigeonhole,” Ste- @dustinpwalsh REPRINTS: (800) 290-5460, ext. 125; (717) 505-9701, ext. 125; or lindsay.wilson @theygsgroup.com TO FIND A DATE A STORY WAS PUBLISHED: (313) 446-0406 or e-mail [email protected] CRAIN’S DETROIT BUSINESS IS PUBLISHED BY CRAIN COMMUNICATIONS INC. CHAIRMAN Keith E. Crain VC: PRESIDENT Rance Crain Michigan posts best 3Q for number of deals TREASURER Mary Kay Crain Executive Vice President/Operations ■ From Page 3 William A. Morrow Executive Vice President/Director of Strategic Technology Investors LP led the invested $7.8 billion in 1,005 deals ny,” said Mark McCaffrey, global category, including the $3.4 million Operations Chris Crain Vice President/Production & Manufacturing round along with Farmington during the third quarter of 2013, technology partner and software Detroit-based LevelEleven LLC and Dave Kamis Hills-based Beringea LLC. according to the report. That is a leader at PricewaterhouseCoopers $1.5 million Detroit-based Rock City Vice President/Chief Human Resources Officer Margee Kaczmarek “This is still a challenging 12 percent increase in dollars and U.S. “More venture capital dollars Apps LLC scored from Detroit Venture G.D. Crain Jr. Founder (1885-1973) fundraising environment for a med- a 5 percent increase in deals com- are going into more software deals Partners LLC and other investors. Mrs. G.D. Crain Jr. Chairman (1911-1996) ical device company, so I’m happy to pared to the second quarter. than we’ve seen in the past decade.” That’s on trend nationally, ac- EDITORIAL & BUSINESS OFFICES: 1155 Gratiot Ave., Detroit MI 48207-2732; close on the B round,” Delphinus The most popular place for VCs Software deals totaled $15.4 mil- cording to the report. (313) 446-6000 CEO William Greenway told Crain’s to invest was software companies, lion in Michigan during the quar- “With more than half of this Cable address: TWX 248-221-5122 AUTNEW DET CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is when the round was announced. at $3.6 billion. In fact, the country’s ter, with Ann Arbor-based Ar- quarter’s deals coming from early published weekly, except for a special issue the third week of August, and no issue the third week of His assertion was proved out by largest deal of the quarter was borMetrix Inc. taking home nearly and seed stage deals, there’s credi- December by Crain Communications Inc. at 1155 the MoneyTree Report, which $257.8 million invested in San Fran- half of that amount. The company ble reason to be optimistic about Gratiot Ave., Detroit MI 48207-2732. Periodicals postage paid at Detroit, MI and additional mailing found that overall investments in cisco-based Uber Software. The com- develops software for hospitals so the future of innovation and the vi- offices. POSTMASTER: Send address changes to CRAIN’S DETROIT BUSINESS, Circulation the life sciences sector (biotechnol- pany, which has a Detroit presence, they can calculate the costs and brancy of the startup ecosystem,” Department, P.O. Box 07925, Detroit, MI 48207- ogy and medical devices) is de- allows users to hire — and pay for quality of medical procedures. Ar- said John Taylor, head of research 9732. GST # 136760444. Printed in U.S.A. Entire contents copyright 2013 by Crain pressed, with only 541 deals report- — taxis and town cars using the boretum Ventures was also in- at the NVCA. Communications Inc. All rights reserved. ed in 2013, the lowest nine-month Uber app on their smartphones. volved in this $7 million round. Amy Haimerl: (313) 446-0416, Reproduction or use of editorial content in any total since 2005. “It’s an exciting time to be an en- Thirteen of the 15 deals done in [email protected]; Twitter: manner without permission is strictly prohibited. Nationally, venture capitalists trepreneur with a software compa- Michigan fall into the early-stage @haimerlad 20131021-NEWS--0026-NAT-CCI-CD_-- 10/18/2013 5:30 PM Page 1

Page 26 CRAIN’S DETROIT BUSINESS October 21, 2013 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF OCT. 12-18

Hantz gets OK to clear land New York Stock Exchange as attorney general in saying PNC Foundation the sealing, fuel and brake the Detroit Institute of Arts’ About 140 acres of Detroit system supplier embarks collection is held in chari- Clerk ready for land is finally slated to cre- on a new growth strategy. table trust for the benefit of ate lumber from the lower expands efforts Common stock of the Novi- the public and should not east side. based parent company of be touched to settle the The Michigan Department Cooper-Standard Automotive city’s debts. state same-sex of Human Services and Hantz in city schools Inc. is issued under the Ⅲ Detroit CFO James Bon- Woodlands, an enterprise of symbol CPS. sall resigned after an inves- Hantz Farms, announced last he PNC Foundation Ⅲ A new Chrysler Group tigation of a complaint that week that the purchase will spend $950,000 LLC television advertising the white official made an agreement of more than T to extend its campaign insensitive reference to the marriage rule 1,500 blighted parcels of land preschool program in the featuring killing of black Florida teen on Detroit’ s lower east side Detroit Public Schools for two Detroit Trayvon Martin, the AP re- isa Brown stands Detroit is picking up speed. was approved by Detroit more years, the Pittsburgh- Tigers slug- ported. ready to marry, or at Local interior designer Emergency Manager Kevyn based foundation an- ger Miguel Ⅲ Bernard Kilpatrick, fa- L least license the mar- Elizabeth Cannella launched Orr and signed by Gov. Rick nounced. The money will Cabrera, ther of former Detroit May- riage of, Hazel Park nurses the effort to open Imaginosity Snyder. be used to continue PNC’s created by or Kwame Kilpatrick, was April DeBoer and Jayne Rowse Discovery Center Inc. after the Hantz also has discussed preschool arts and science the South- sentenced to 15 months in large-scale urban farming if a federal judge overturns closure of the former Detroit programming, and to sup- field-based federal prison, the AP re- plans for Detroit, but those the 2004 Michigan constitu- Science Center and the De- port field trips, arts educa- advertising ported. A jury cleared the have been delayed in part as Cabrera tional amendment that pro- troit Children’s Museum at the tion, coaching sessions for agency Don- elder Kilpatrick or couldn’t the city works to develop hibits it. end of 2011. teachers, and transporta- er Partners LLC, aired during reach a verdict on more se- new agricultural zoning Brown — an attorney, De- Both institutions have tion, among other projects. the American League rious charges during a cor- rules. Some neighborhood mocrat and Oakland County since reopened, with the Championship Series and ruption trial with his son activists and nonprofit lead- clerk who is officially a de- science center now operat- will air during the World and Detroit contractor Bob- ers have opposed plans by ON THE MOVE fendant in Rowse and De- ing as the Michigan Science Series. by Ferguson. Hantz, saying they amount Boer’s lawsuit before U.S. Center. Ⅲ The Ann Arbor-based Ⅲ Swedish automotive Ⅲ The M-1 Rail streetcar to a land grab. District Judge Bernard Fried- But Cannella and a steer- automotive supplier Affinia bearings giant AB SKF project intends to execute a Hantz plans to build a man in Detroit — inherited ing committee of about 30 Group Inc. named Steve closed on the $1.25 billion contract by Dec. 1, accord- mixed hardwood timber that 2012 court case from other parents and commu- Klueg CFO, replacing acquisition of Ann Arbor- ing to bid documents on the farm on the Hantz Wood- predecessor Bill Bullard Jr. But nity activists are continu- Thomas Madden, who will based Kaydon Corp. and filed Woodward Avenue pro- lands site, which is on the she said she expects to issue ing to push to open the new retire Dec. 31. Klueg had a notice to delist that com- ject’s website. Bids were marriage licenses to same- hands-on center to fill what lower east side between been CFO of Charlotte, Van Dyke and St. Jean pany from the New York due today to design, engi- sex couples in Oakland they see as gaps. N.C.-based ReCommunity Re- Stock Exchange. neer and manufacture six County if and when Michi- “What we find is missing streets and Jefferson and cycling. Ⅲ Mack avenues. The University of Michi- streetcars for use on the 3.2- gan law allows her to do so. for Detroit itself ... is ... that Ⅲ Detroit-based Rock gan and Ford Motor Co. are mile rail loop. The winner At least 30 people in opportunity for a child to Gaming LLC named Las Ve- opening a battery research is to be selected Oct. 28. same-sex relationships come in and make some- Pet project needs cash gas casino veteran Mark and manufacturing lab on Ⅲ The University of Michi- were on hand at the county thing and to understand Dunkeson president and the Ann Arbor campus that gan reported record enroll- court building in Pontiac how and why they’re mak- The Detroit Kennel Club COO. Dunkeson, 44, suc- they hope will speed the de- ment at its Ann Arbor cam- last Wednesday to seek li- ing it,” she said. wants to honor best in ceeds Matt Cullen, now CEO velopment of batteries for pus for the fifth straight censes, Brown said, should The center would pull to- show, but its sponsors are a of Rock Gaming and presi- no show, at least so far. electric and hybrid cars. year: 43,710 students for fall Friedman have issued an gether programming and dent and CEO of Rock Ven- Due to a lack of sponsors, Ⅲ ENT Biotech Solutions 2013, up 0.7 percent from a order striking down the self-directed exhibits like tures LLC. the organization canceled LLC, a tenant of Detroit’s year ago, the AP reported. amendment, as many legal Legos, Cannella said, and Ⅲ Gov. Rick Snyder its March 2014 dog show at TechTown, won $2,500 for be- Ⅲ Average home sale observers had expected last have fewer static exhibits. named Kevin Clinton state the Cobo Center, said ing named the company prices in metro Detroit rose week. Instead, he ordered The group’s goal is to treasurer, effective Nov. 1, Richard Ford, show chair- with the best business plan 48 percent last month over the Rowse-DeBoer case to open Imaginosity by the after the resignation of man for the club. at the emerging-bioscience September 2012, and total proceed to trial Feb. 25. end of 2016. Andy Dillon. Clinton, 58, is Ford said the show needs showcase at the annual sales in the four-county re- The case could have broad It would take approxi- director of the Michigan De- a $100,000 title sponsorship, MichBio Expo in Kalamazoo. gion increased 7.1 percent, implications for Michigan mately $50 million to do partment of Insurance and Fi- which hasn’t had a full title ENT has developed a plastic according to data released employers, many of whom that, Cannella projects. nancial Services. have operations in other Imaginosity tapped two sponsor since 2010, when forceps for the removal of by Farmington Hills-based adenoids during surgery. Realcomp II Ltd. states and have been facing Oakland University MBA stu- Nestlé Purina PetCare Co. re- Ⅲ varying legal definitions of dents for help in completing duced financial support. COMPANY NEWS Winning $500 as runner-up The Michigan Economic marriage since the U.S. a feasibility study in Au- For a few years, the show among the eight competing Development Corp. and D:hive Supreme Court struck down a gust, and it’s now working supplemented costs with its Ⅲ Livonia-based CHE Trin- companies was Ann Arbor- co-hosted the LiveWorkDe- federal definition in the De- with a Wayne State University club revenue and smaller ity Health announced that it based Brio Device LLC, which troit! career fair for college fense of Marriage Act of 1996. marketing professor on a sponsorships from organi- had laid off 45 employees in has developed products to students and recent gradu- three-year marketing plan. zations like Kroger Co. and its information technology improve the process of intu- ates at Ford Field. Eoin Com- It launched fundraising Hansons Windows, but could- department as part of its bating hospital patients erford, president and CEO Imagine a new kids’ center with breathing troubles. of Madison Heights-based in September with a $50,000 n’t continue this year, Ford merger with Newtown Moosejaw Mountaineering A grassroots effort to Kickstarter campaign to said. Square, Pa.-based Catholic and Backcountry Travel Inc., launch a new hands-on chil- support the center’s first ex- The club is pushing to re- Health East. OTHER NEWS delivered the keynote dren’s discovery center in hibit, “ImaginoCity.” instate the show for 2015. Ⅲ Dan Gilbert’s Rock Ven- tures LLC announced the ac- Ⅲ The Detroit City Council speech. quisition of an eight-story, unanimously rejected a Ⅲ The Michigan Public Albert Kahn-designed build- plan to lease the 985-acre Service Commission said ing at 1505 Woodward Ave. Belle Isle park to the state that if the 10 percent cap on and a six-story structure at for 30 years, proposing a 10- customers who want to 1265 Griswold St. in down- year deal instead. switch from DTE Energy Co., town Detroit. Ⅲ Detroit’s current and Consumers Energy Co. or an- EST FROM THE LOGS other utility to an alterna- B B Ⅲ The Long Island City, retired municipal workers READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS N.Y.-based low-cost airline went to court to ask Judge tive energy provider did JetBlue Airways Corp. will be- Steven Rhodes of U.S. Bank- not exist, choice participa- Toy store popping up downtown Nursing recruiter ‘pitches’ city gin three daily nonstop ruptcy Court to throw out the tion would be about 25 per- flights between Detroit Met- city’s $18 billion bankrupt- cent for Consumers and 21 percent for DTE. Kurt Spieles is Want to see a pitch ropolitan Airport and cy case because they never Ⅲ popping“ up his toy store worse“ than the one Boston’s Logan International had a chance to negotiate The federal govern- next door to the offices of David Ortiz hit off Airport next March. with Emergency Manager ment reopened its doors af- D:hive Detroit. Spielhaus Joaquin Benoit for that Ⅲ French auto parts sup- Kevyn Orr before he filed it. ter Congress approved a bi- Toys is the third iteration gut-wrenching, game- plier Plastic Omnium is open- Meanwhile, the city ended partisan measure to end a of D:hive’s Pilot project, tying grand slam in the ing a $110 million plant near September with a positive 16-day partial shutdown. which awards one eighth inning of Game 2 fledgling business per of the Tigers’ ALCS race New Boston that will em- cash flow, largely because it quarter with two months of against the Boston Red ploy 400 workers. The Inergy defaulted on many financial OBITUARIES free rent to test its retail Sox? Well, read on. Automotive Systems plant will obligations while still col- concept. produce about 1.5 million lecting property taxes, ac- Ⅲ David Allard, co-founder ” plastic fuel tanks yearly. cording to a report by Orr. of the Detroit-based law Amy Haimerl’s “Small Business” blog” can be found at Tom Henderson’s “Big Bucks, High Tech” blog is at Ⅲ Cooper-Standard Hold- Ⅲ The Detroit Arts Com- firm Allard & Fish PC, died www.crainsdetroit.com/section/blogAmyHaimerl www.crainsdetroit.com/section/blogTomHenderson ings Inc. was listed on the mission joined the Michigan Oct. 6. He was 65. DBpageAD_DBpageAD.qxd 10/8/2013 10:19 AM Page 1

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