Dealer Group Has Bloggers Toot Its Horn

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www.crainsdetroit.com Vol. 28, No. 31 JULY 30 – AUGUST 5, 2012 $2 a copy; $59 a year

©Entire contents copyright 2012 by Crain Communications Inc. All rights reserved Page 3 Dealer group Metro Detroit is still a magnet for aluminum has bloggers toot its horn Test drives build social media buzz

BY RYAN BEENE CRAIN NEWS SERVICE Traffic jam: Balancing city Charlie Wollborg had had parking needs big and small enough. He had spent days wrangling with Suburban Subaru of Troy over a warranty repair. Frustrated after Inside much back-and-forth with the store’s service manager, Wollborg Reflections on took to Twitter to vent. The trouble for Suburban Subaru Detroit from a KENNY CORBIN was that Wollborg, as CEO of Curve CEO Gerard Anderson took the reins at DTE Energy Co. from Anthony Earley nearly two years ago. news anchor’s Detroit, a marketing and design perspective, firm, had more than 10,000 Twit- Recession to renewables, CEO sticks to growth plan Page 4 ter followers. Dan Boismi- BY JAY GREENE homes were foreclosed and busi- economy began to tank, plans er, Internet di- CRAIN’S DETROIT BUSINESS nesses and industry cut back on that DTE’s top management and Crain’s List rector for Sub- electricity purchases. By March board had put in place in 2006 to urban Subaru’s Gerard Anderson is nearing 2009, DTE’s stock price had cut costs, improve quality and ef- parent, the Sub- his two-year anniversary as CEO dipped to $23.63, down from $45.23 ficiencies began to bear fruit. Largest law firms, Page 15 urban Collection, of DTE Energy Co. (NYSE: DTE) af- in January 2008. “This was a transforming role was quickly on Boismier ter succeeding Anthony Earley “It was a scary period of time,” that began with an economic cri- the case, personally responding to Jr. said Earley, now CEO of San sis,” said Anderson, 54. “We had a This Just In Wollborg’s tweet. Soon the two But little did Anderson know Francisco-based PG&E Corp. “Be- baptism by fire, much of which were talking on the phone. that only a few months after he ing a utility, you are not going out was unseen by the outside world. Wollborg said they resolved the was told he would be Earley’s suc- of business, but you need to in- All the employees pulled togeth- Macomb plans emergency- warranty issue, which resulted cessor that the worldwide econo- vest in infrastructure and main- er, and those were the best learn- communications center from a communication break- my — especially Michigan with tain affordable rates. We didn’t ing years for the company. I hope down. The two were soon talking its reliance on manufacturing — know how far down the economy I never see that again.” Macomb County on shop, specifically about ways to would begin to slide into a major would go, but we had put a real Earley, 62, said he and Ander- Wednesday will unveil plans build buzz on social media for the recession in the fall of 2008. good team together and had a con- son challenged employees to help for a new $10 million joint Suburban Collection, ranked by DTE’s revenue declined 14.1 tinuous improvement plan in cut $150 million from expenses in emergency operations and percent in 2009 to $8.01 billion as place.” communications center, the See Social media, Page 21 thousands of people lost jobs, Serendipitously, just as the See Anderson, Page 18 first of its kind in Michigan to house communications for five local agencies. Partners in Architecture PLC of Mt. Clemens has been hired as project architect for Senate candidate Durant under fire for Cornerstone salary the center, to be housed at the Macomb County Depart- BY NANCY KAFFER and as president of its two affiliated founda- proached Bob Lutz, former General Motors vice ment of Roads building. CRAIN’S DETROIT BUSINESS tions, the New Common School Foundation and chairman for product development, who cur- A timetable for completion the Genesis Foundation. rently serves as chairman of the New Common hasn’t been finalized, said Having a well-connected and effective Now, he’s under fire for Schools Foundation, and Robert Vlasic, Macomb County Emergency fundraiser at the helm of nonprofit Cornerstone the compensation paid to founder of formerly Detroit-based Vlasic Pickles, Management Coordinator Schools is worth a half-million dollar salary. At him — and to his daughter, who introduced him to Pulte. Vicki Wolber. least to William Pulte Hope Durant Loomis — “I went to them and said: This is where my When complete, the center IZ AND THE BALLOT Sr. and a group of other through the two foundations, heart is, this is what I want to do, will you help will be able to handle com- B influential business both largely funded by Pulte me do it?” Durant said. “Here’s what I need — I munications for the road de- Election hopefuls tout leaders who and Auburn Hills investor need a board, I need a chairman of the board, I partment and the county’s Of- practical experience, bankrolled compensa- Bruce Becker. Becker didn’t need an entity, I need to fund it, I needed people fice of Emergency Management, Page 19 tion for former Corner- return phone calls seeking to be on board, I needed a salary.” along with E911 dispatch ser- stone Schools CEO comment. Pulte, founder of Bloomfield Hills-based vices for police, fire and Clark Durant, now a candidate for U.S. Senate. Pulte and Durant met Durant homebuilder Pulte Group Inc., recalls reading emergency medical services. Durant has served as CEO of Cornerstone, about 12 years ago, when Durant decided that — Chad Halcom which operates Detroit-based private schools, his calling was to work in education. He ap- See Durant, Page 19

TITLE SPONSOR

SEPT. 20 • 5:30 p.m. • Get all the party details at www.crainsdetroit.com/events NEWSPAPER 20120730-NEWS--0002-NAT-CCI-CD_-- 7/27/2012 6:43 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS July 30, 2012

MICHIGAN BRIEFS Crain’s House Party: facturing company, is the brain- child of Michael Miller. He saw a The Grand Rapids version Federal transportation funds roll into state stations need to develop insoles for young The annual Crain’s House Party athletes who are dealing with is moving west. Next stop: upgraded transit. gan State University. growing pains and intense athlet- Crain’s Michigan Business, the Michigan will receive about $47 million in federal Meanwhile, the Livingston County Transit ic training. Because his concept statewide edition of Crain’s Detroit funds to replace old buses and improve transit facil- Agency will get $877,476, and 20 rural agencies will was already far into the next Business, will co-present a Grand ities in seven projects around the state. split $5 million to replace aging buses with more stage, Start Garden awarded him Rapids version of its popular In East Lansing, for instance, a $6.3 million feder- fuel-efficient vehicles. $50,000. House Party on Aug. 29. al grant will help fund a $10.5 million project to add Grants were announced the week before for the The seventh annual Detroit ver- bus bays and improve parking for taxis, rental cars Detroit area and Flint. Cabela has plans for Saginaw sion will be held Sept. 20. and bike sharing at the city’s Amtrak station, feder- The Suburban Mobility Authority for Regional Trans- Planning for the event started al, state and local officials said. portation will get $30 million to replace buses and Saginaw is in Cabela’s sights for after a group of Grand Rapids Area The grant is part of a program aimed at improv- add on-board cameras and GPS in the Detroit area. its second outpost store, following Chamber of Commerce executives ing bus facilities run by the U.S. Department of Trans- Flint’s Mass Transportation Authority will get $4 mil- the first due to open in Union Gap, and board members attended the portation’s Federal Transit Administration. It was lion to replace older buses with hybrid electric and Wash., this fall. 2011 House Party in Detroit. awarded to the Capital Area Transportation Authority in propane-fueled vehicles. Construction on the 43,000- The Grand Rapids event will tar- conjunction with the city of East Lansing and Michi- — Lansing State Journal, The Associated Press square-foot store is scheduled to get new residents and employees begin this fall, with its opening ex- to introduce them to the diversity pected next spring. of housing and people in and at grandrapids.org/houseparty or toward governmental collabora- The first round of funding gave Outpost stores are smaller than around downtown Grand Rapids. call (616) 771-0303. tion and consolidation,” said Greg each idea selected $5,000 and a mis- the company’s “next-generation Each guest will sign up to attend Sundstrom, Grand Rapids city sion: to find out if the product their stores,” designed to surround cus- a small cocktail party at a home, East meets West to solve manager. “It’s not consolidating company is producing is viable. tomers in an outdoor experience. loft, apartment or condo around governing boards, but if we can The update night was the oppor- The outposts have a floor plan that the city to meet to network with local government problems standardize management it’s got to tunity present the idea, receive rotates products to match the sea- better for everyone.” home owners and partygoers. Michigan Radio reports that Livo- feedback from the Start Garden son. Customers will have access to After cocktails, the party guests nia and Grand Rapids are teaming team and find out if the idea would all Cabela’s gear via online-order will move downtown for a strolling up to solve common city manage- Start Garden makes awards receive the next round of funding: kiosks and can order merchandise dinner, entertainment and an af- ment problems that range from $20,000. The final two steps of fund- to pick up at any Cabela’s. Of the first eight ideas funded terglow at OST, an information borrowing money to choosing ac- ing are $100,000 and $500,000. The Saginaw location will be Ca- through Rick DeVos’s Start Garden technology company, at the reno- counting software. One Second Epic is a video con- bela’s third retail store in Michi- vated Drueke Building. Their 15-year agreement creates seed investment program, two re- cept based around recording one gan. The Michigan State Housing De- the Michigan Municipal Services Au- ceived immediate approval for fur- second of video per day for a year. velopment Authority is the pre- thority, which would share solu- ther funding, MiBiz reports. The result is a roughly 6-minute Find business news from senting sponsor for the events in tions with other cities. The Michi- Entrepreneurs behind One Sec- video. The company’s founders, around the state at crainsdetroit both cities. gan Department of Treasury hopes it ond Epic and NxtMile learned that Eric Loehfelm, Joe Johnson and Chris- .com/crainsmichiganbusiness. Tickets are $60 for the House will help local administrators run they had met the threshold for fur- tian Saylor, were already in talks Sign up for Crain's Michigan Party and afterglow, and $40 for cities better. ther investment at the first Start with at Apple about the project. Business e-newsletter at crains the afterglow only. Register online “This is potentially a huge step Garden Update Night Thursday. NxtMile, a youth insole manu- detroit.com/emailsignup.

Keeping automotive suppliers ahead of the curve

There’s a lot at stake in the auto supply industry. So much, in fact, that our automotive attorneys represent ONLY suppliers. We represent more cWP]! Pdc^\^cXeTbd__[XTab safely steering them through some serious hairpin turns. Contact Warner Norcross & Judd and be ready for the curves ahead.

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July 30, 2012 CRAIN’S DETROIT BUSINESS Page 3

Focus: Law Aluminum stores grow at warehouses It’s about the time: Law tional Bridge Co., according to the firms’ clients Strong returns keep in-box larger than out-box Detroit/Wayne County Port Authority. In response, the exchange look for faster BY DUSTIN WALSH ket. ing Goldman Sachs Group Inc. of cre- changed the minimum require- resolution of CRAIN’S DETROIT BUSINESS Romulus-based Metro Internation- ating supply bottlenecks to artifi- ment of metal leaving the ware- al Trade Services LLC is at the center cially raise the price of aluminum house system from 1,500 tons daily cases, Page 9 Despite new warehousing rules, of the debate as the largest ware- in the open market. to 3,000 tons daily. But the rules increased demand and the lowest housing unit in the Midwest, hous- Goldman Sachs owns Metro In- change has failed to lower stock- prices since early 2009, aluminum ing nearly 1.4 million tons of alu- ternational, which it bought in piles. stockpiles in metro Detroit ware- minum, or an estimated 14 percent February 2010 for a reported $550 That’s because financial incen- Company index houses continue to grow. of the world supply. million. Metro operates 19 ware- tives for stockpiling remain high. Experts say cheap financing and Last June, Atlanta-based Coca- houses locally, including the for- That’s due in part to cheap fi- These companies have significant mention in this strong returns for investors are Cola Co. filed a complaint with the mer Detroit News paper warehouse nancing deals for futures traders, week’s Crain’s Detroit Business: 7-Eleven ...... 5 forcing more of the metal into the London Metal Exchange, the world’s on West Grand Boulevard near the said Bridget Freas, senior analyst Adamo Group ...... 18 warehousing system, leaving less largest market in options and fu- Detroit riverfront it leases from Automotive Performance Industries ...... 3 aluminum for the physical mar- tures contracts on metals, accus- Manuel Moroun’s Detroit Interna- See Aluminum, Page 21 Big Lots ...... 5 Blue Cross Blue Shield of Michigan ...... 5 Bodman ...... 9, 11 Brooks Kushman ...... 14 Business Development ...... 10 Butzel Long ...... 9, 14 Investors park Citizens Republic Bancorp ...... 19 Clark Hill ...... 12 Cliff Bell’s ...... 3 Cornerstone Schools ...... 1 their car biz in Curve Detroit ...... 1 Dawda, Mann, Mulcahy & Sadler ...... 9, 11 Delphi Automotive ...... 8 DeMorest Law Firm ...... 10 ex-Saleen digs DiBella’s Old Fashioned Submarines ...... 5 Dickinson Wright ...... 12 Downtown Detroit Partnership ...... 20 DTE Energy ...... 1 Plan is to be hub Dykema Gossett ...... 9, 11 Five Below ...... 5 for performance Foster Swift Collins & Smith ...... 14 Gap ...... 5 Garan Lucow Miller ...... 12 BY MEGHANA KESHAVAN Giarmarco, Mullins & Horton ...... 9, 10, 14 SPECIAL TO CRAIN’S DETROIT BUSINESS Handy Parking ...... 20 Harness Dickey & Pierce ...... 12 A group of former auto execu- Henry Ford Health System ...... 5 tives is taking advantage of a real Honigman Miller Schwartz and Cohn ...... 10, 12 estate deal to create a hub for high- Howard & Howard Attorneys ...... 13 performance vehicle businesses in Hungry Howie’s Pizza ...... 5 metro Detroit. Illuminating Concepts ...... 22 It’s an idea from a group of self- Jaffe, Raitt, Heuer & Weiss ...... 13 proclaimed gearheads to turn Jersey Mike’s Subs ...... 5 their hobby into a viable business, Kerr, Russell and Weber ...... 13 Kitch Drutchas Wagner Valitutti & Sherbrook . . . . 12 and who last month bought a va- Maddin, Hauser, Wartell, Roth and Heller . . 9, 11, 18 KENNY CORBIN cant Saleen Special Vehicles manu- Massage Green Spa ...... 5 facturing facility in Troy. Cliff Bell’s co-owner Paul Howard says affordable parking near the jazz club depends on parking lot owners, whose rates and hours tend to center on major events. Massage Luxe ...... 5 Automotive Performance Industries McDonalds ...... 5 LLC was formed in January by a McLaren Health Care ...... 5 group of three investors, led by Metro International Trade Services ...... 3 Karl Storrie, former CEO of Mika Meyers Beckett & Jones ...... 13 Rochester Hills-based auto suppli- Miller Johnson ...... 9, 11 er Dura Automotive Systems Inc., and Miller, Canfield, Paddock and Stone ...... 12 Olympia Development ...... 3 Tony Johnson, founder of Min- Space mission Ottawa Tower II ...... 18 neapolis-based Hidden Creek Indus- Panda Express ...... 5 tries. The third partner did not Park Bar ...... 20 want to be named. Can Detroit balance parking for small business, big events? Party City ...... 5 In the building, they plan to or- Plunkett Cooney ...... 9, 14 ganize a stable of businesses that BY NATHAN SKID parking lots will be open on non- the nature of demand is — to see Secrest, Wardle, Lynch, Hampton, Truex, Morley 9, 14 Smith Haughey Rice & Roegge ...... 13 create high-performance vehicles, CRAIN’S DETROIT BUSINESS event days. who is it we are trying to serve STE Construction Services ...... 18 show cars and specialty fleets. “We know what the deal is. We and how best to do that — while at The API investors, through 1225 The weather is hot, the Tigers Suburban Collection ...... 1 are at the whim of the parking lot the same time recognizing there Suburban Subaru of Troy ...... 1 Maple Road Holdings LLC, paid are hot, but some downtown bar owners,” Howard said. “They is a cost associated with operat- Sullivan, Ward, Asher & Patton ...... 14 $3.75 million last month for the and restaurant owners are just open at their own discretion, and ing it and parking,” Larson said. Thomas Group Consulting ...... 19 183,000-square-foot manufacturing hot under the collar. that’s a problem for us, but it goes What Olympia does matters. Its Thomson Reuters ...... 9, 11 space at 1225 Maple Road. The The owners say their business- with the territory.” parking services division oper- Total Hockey ...... 5 building has offices, a showroom es suffer when parking prices rise Howard said his business re- ates 35 surface lots and three Tropical Smoothie ...... 5 and, notably, a “high-bake” vehi- to $20-$25 for home games and lies on street parking and the parking garages, with approxi- Trott & Trott ...... 9, 11 cle painting system. other events — and occasionally parking lots surrounding it, mately 7,861 total parking spaces UDetroit Café ...... 20 Varnum ...... 9, 11 Storrie said that 35,000-square- up to $50 or more — while park- which are mostly owned by De- in Detroit — 4,500 of them sur- foot painting facility cost $7 mil- ing lot owners say they need that Warner Norcross & Judd ...... 13 troit-based Olympia Development rounding Comerica Park and the Woodward Parking ...... 20 lion when it was installed a decade income to stay in the black and and are mainly open on weekends Fox Theatre. WXYZ-Channel 7 ...... 4 ago by Saleen, the building’s for- offset lower rates at other times. or event days. In comparison, the city of De- mer owner. Known for its work on Limited nearby street parking Eric Larson, non-executive troit has seven public parking Department index the Saleen Mustang and the Ford and the lack of mass transit also president of Olympia Develop- garages that are open daily, with BANKRUPTCIES ...... 5 GT, the firm moved its Troy opera- contribute to the problem. ment, said it’s difficult for park- a total of about 3,120 spaces. tions to its headquarters in Irvine, Paul Howard, co-owner of Cliff ing lot owners to meet the needs Fluctuating rates are a sore BUSINESS DIARY ...... 17 Calif., in 2009. Bell’s in Foxtown, said that even of the businesses around them spot for restaurant owners and CALENDAR ...... 17 “We have very clear expansion though the jazz club is located in while making money as a private their customers. CLASSIFIED ADS ...... 17 plans because of the unique capa- a sea of parking lots, he can’t be enterprise. “We could do twice as much JOB FRONT ...... 16 bilities we have with this building certain there will be affordable “We try to identify when the de- KEITH CRAIN...... 6 See API, Page 20 parking on event days, or that mand is being generated, what See Parking, Page 20 LETTERS...... 6 MARY KRAMER ...... 7 Crain’s nominations The Daily OPINION ...... 6 Crain’s delivers news every weekday to THIS WEEK @ Nominations are open for Michigan’s Healthiest PEOPLE ...... 16 Employers and Best Managed Nonprofits. Go to email inboxes. Stay on top of the action by WWW.CRAINSDETROIT.COM crainsdetroit.com/nominate for a full listing. signing up at crainsdetroit.com/getemail. RUMBLINGS ...... 22 WEEK ON THE WEB ...... 22 20120730-NEWS--0004-NAT-CCI-CD_-- 7/27/2012 4:12 PM Page 1

Great Rates! Page 4 CRAIN’S DETROIT BUSINESS July 30, 2012 After 44 years in TV news, Channel 7’s Reﬁnance Now! Diana Lewis reflects on Detroit, career

Diana Lewis doesn’t How has TV news evolved der capital of the world. But I was want to completely leave over your career? never afraid. There are killers, television. Social media has had a there are people doing things to She announced on huge impact on the news children in every major city. It’s Wednesday her retire- business. It comes at us what was I going to bring to this ment this fall from Detroit from every direction any- equation, my working with people ABC affiliate WXYZ-Channel more. People have decided in the community, and that’s 7’s evening newscast after what to tune out. That’s something I always will be doing. 35 years with “Action where the person deliver- What stops is that I won’t be in News” and 44 years on TV ing the news makes the your living room five days a week. news overall, but she has difference. It’s the human What are your retirement plans? the urge to try something touch. The Detroit news I’ll be working in the communi- else on the small screen: audience isn’t afraid to ty. Relax, travel, maybe a cameo “Dancing With the Stars.” tell you what they think. role. I was talking with Katie The elegant and viva- Diana Lewis, What’s the secret to good Couric (who was in the WXYZ stu- cious Lewis is 69, and boo- WXYZ-Channel 7 television news? dio last week for an interview) and gies whenever she gets the The bottom line is good we talked about YOLO — you only chance — including in the news- Call for a Consultation. storytelling. If you can’t tell it, it’s live once. What I’d really like to do room when her retirement was an- meaningless. People will tune out. is get on “Dancing With the Stars.” Loan amounts: $1,000,000.00 and above. nounced to the station’s staff. What shape is the city of Detroit in I love having fun, love dancing. Investment Real Estate Accounts Receivable “I can still do my cheerleader s s jumps, my splits,” she said, chuck- now compared to when you started On your first full day of retirement, Owner Occupied Real Estate Equipment s s ling. here? what will you do? Watch the news? s Lines of Credit s Bank Workouts Lewis joined the station on July It’s not any better, the things I am always going to watch the 4, 1977. that are going on. We’re in the news. It’s habit; it’s like the air that She spoke with Crain’s Enter- shape of rebuilding. We’re in the I breathe. You should, whether you prise Editor Bill Shea about her ca- shape of trying to save this jewel. are in news or not. I am going to get reer and future plans: It’s got to start with conversation up and my husband and I are going and what people have to say. We to work out. That’s our routine. How have you seen Detroit’s busi- are in better shape than we were We’ll probably shed a tear of joy. I’ll ness community change? yesterday, better than we were probably make my pound cake and From an anchor’s position, be- this morning. We have so people my lobster mac and cheese. My cause of a lack of revenue, the cut- working to improve things. But family will be there. I’ll probably be 800.509.3552 backs, I’ve seen an improvement we’re broke. That’s a really sad interviewed by them the entire day. www.eclipsecapitalgroup.com in the business community be- state of affairs. When I came here, Bill Shea: (313) 446-1626, 2207 Orchard Lake Road, Sylvan Lake, MI 48320 cause of the lessons we’ve learned. my husband said, “Look at what [email protected]. Twitter: “Since 1997” I’ve seen a turnaround of attitude, we’re coming to.” It was the mur- @bill_shea19 the small-business community especially. People are still working hard and committed to their dream and their passion. What was it like coming to Detroit In Your Corner. from Los Angeles to do TV news in the 1970s? Even as an African-American woman, everybody was always kind, but it was not a woman’s do- main. When I got to Detroit, I did- n’t need to wear a three-piece suit to be accepted and believable. The entire Channel 7 viewing audience accepted me for who I am. They welcomed me with open arms, and ONE HU G ND I could feel it immediately. IN R T E A D R Y B E E Was Bill Bonds your longest broad- A L R

E S cast partner? C 100 Yes. We talk to this day. Our daughters worked together. If I had it to do all over again, I would- n’t do it differently. It was like going to college every day. You don’t like going to college every day. People warned me that he would be difficult. He gave me one hellu- va lesson — on what a fine journal- ist he was, what a listener. In his day, he was indeed the king of news. Bill Bonds cared. I watched him pass out money to station employees who needed help. My focus was learning from this man who had some much knowledge. He remains a dear friend, and I love him. I enjoyed every co-anchor I worked with. What was it like to anchor the news Congratulations, Joy Fossel! with Glenda as history’s first mother- Honored by Legal Services daughter combination? It was a wonderful experience Corporation for her for a mother to have her baby as 00 her co-worker. I love watching her. SAVE $100 OFF commitment to pro bono I love that the Detroit community has embraced (her). It was the legal services in Michigan. greatest joy to me because she’s such a nice lady. We play very well I Metro Detroit I Grand Rapids I Kalamazoo I Grand Haven I Lansing off each other. 20120730-NEWS--0005-NAT-CCI-CD_-- 7/27/2012 3:24 PM Page 1

July 30, 2012 CRAIN’S DETROIT BUSINESS Page 5

Study: Michigan health plans post vs. best financial year ever in 2011

BY JAY GREENE McLaren Health Care, increased only by 2.5 percent, to $298. CRAIN’S DETROIT BUSINESS membership last year 1.6 percent Baumgarten said Michigan leg- MONDAY to 93,000. islators must decide in the next Michigan’s 19 health plans post- Health Alliance Plan of Michigan year whether to participate in the AUGUST 6 • 7:05 ed their highest total net income recorded a 1.3 percent margin on expansion of Medicaid, as is al- ever in 2011, powered by a 1.1 per- $23.8 million in net income. The lowed under the Patient Protec- cent growth in members and a de- Henry Ford Health System-owned tion and Affordable Care Act of cline in per-member medical costs, HMO reported a 3.3 percent de- 2010. according to a new report. cline in membership to 331,214 in “In Michigan, it would bring TUESDAY In 2011, Michigan HMOs report- 2011. coverage to an estimated 400,000 ed net income of $303 million, or a Overall, HMOs increased mem- persons between 2014 and 2019, AUGUST 7 • 7:05 2.6 percent profit margin, said Al- bership by 1.1 percent to 2.8 mil- most of whom would likely enter lan Baumgarten, the Minneapolis- lion. HMOs,” Baumgarten said in the based researcher who compiled The report also said Michigan report. the 2012 Michigan Health Market HMOs made money on all lines of Legislators also must act soon if Review using data provided by the business: employer groups, Michigan is to operate its own Michigan Office of Financial and Insur- Medicare and Medicaid. health insurance exchange, which WEDNESDAY ance Regulation. Group plans were especially also is allowed under health care Some report specifics: profitable last year, but HMOs also reform. The state has until Nov. 13 AUGUST 8 • 7:05 Blue Care Network, the state’s had average margins of 5.7 percent to submit a complete plan to the Detroit Tigers Tailgate Plate to ﬁrst 10,000 fans largest HMO with 588,000 mem- on Medicare plans and 2 percent U.S. Department of Health and Human bers, was the most profitable, with on Medicaid. Services. net income of $163.7 million, or 6.2 The report also noted that em- “Subsidized coverage through a percent of revenue. Blue Care, ployer premiums grew faster than health insurance exchange could owned by Blue Cross Blue Shield of medical expenses in 2011, leading bring in an estimated 360,000 new Michigan, also increased member- to strong HMO profitability. enrollees, depending on which THURSDAY ship by 6.4 percent. On average, HMOs collected companies elect to market to By profit margin, McLaren Health $339 per member per month from them,” Baumgarten said. AUGUST 9 • I:05 Plan earned a 7.1 percent margin their employer customers, an in- Jay Greene: (313) 446-0325, with $22 million in net income. crease of 5.2 percent from 2010. [email protected]. Twitter: McLaren, owned by Flint-based Their medical expenses increased @jaybgreene 866.66.TIGER Gap’s Athleta, 7-Eleven among retailers opening, expanding in metro Detroit, state

BY SHERRI WELCH tate Services Inc. free-standing stores to Michigan. CRAIN’S DETROIT BUSINESS Philadelphia-based Five Below, McDonalds USA LLC plans to open which sells trendy merchandise five stores in Michigan, and Talla- National and regional retailers for preteens and teens, is hassee, Fla.-based Tropical Smoothie and restaurants are expanding in bringing another 20 stores to Café said it plans to open three Michigan, taking advantage of Michigan. stores in Metro Detroit this year good deals on real estate and re- Two massage businesses also and four in 2012. bounding demand, companies par- have plans to expand locally. Madison Heights-based Hungry ticipating in a Michigan retail con- Fenton, Mo.-based Massage Luxe Howie’s Pizza Inc., which is in the ference said last week. recently opened its 11th Michigan midst of its second year of record Gap Inc. is bringing its Athleta store in Novi and is looking at sev- sales, plans to open 10 to 15 pizza stores, which evolved from a cata- eral other local markets. stores in the region this year, said log business, to Michigan in 2013 And Farmington Hills-based Mas- Bruce Brock, manager of new with plans for up to four new sage Green Spa is opening stores in store development. stores, Kathryn Ritter, director of Clarkston, Livonia, Novi and Troy. It recently opened stores in real estate for Gap, told a crowd of Out-of-state and regional restau- Farmington and West Bloomfield about 400 gathered for the Interna- rants are also making moves to Township locally and in Wayland, tional Council of Shopping Centers grab local market share. in Allegan County. And it expects annual Michigan conference Rochester, N.Y.-based DiBella’s to open a store each in Lake Orion Thursday in Dearborn. Old Fashioned Submarines, which fea- and Pontiac over the next two Dallas-based 7-Eleven Inc. hopes tures 1940s-style decor, recently months, Brock said. to put one or more stores in De- opened two stores, in Ann Arbor Sherri Welch: (313) 446-1694, troit’s central business district as and Auburn Hills, investing about [email protected]. Twitter: part of its plans to open seven new $400,000 per store to build them out, @sherriwelch Michigan stores this year and 20 in said director of real estate Dan Car- the coming year. ducci. It hopes to open three to five Columbus, Ohio-based Big Lots stores within two to three years. Stores Inc. (NYSE: BIG), which has Another submarine sandwich 40 stores in the state, plans to open restaurant, Point Pleasant Beach, five to eight outlets in Southeast N.J.-based Jersey Mike’s Subs, BANKRUPTCIES Michigan this year, including one has opened its first Michigan in Ann Arbor. store in Ann Arbor and plans to The following businesses filed for And Rockaway, N.J.-based Party open another 15 or more here in Chapter 11 protection in U.S. Bank- City, a division of Amscan Holding 2013. ruptcy Court in Detroit July 20-26. Un- Inc., said it plans to open four to six Panda Express, a Rosemead, der Chapter 11, a company files for re- organization. stores in metro Detroit between Calif.-based Chinese food chain, Mallards Holdings Inc., 6565 Cooley now and the end of 2013. which has stores at Great Lakes Lake Road, Waterford Township, vol- Total Hockey, a Maryland Crossing in Auburn Hills, untary Chapter 11. Assets and liabili- Heights, Mo.-based hockey equip- Oakland Mall in Troy and on the ties not available. ment chain, plans to open three campuses of the University of Mallard Land Holdings LLC, 6565 Coo- metro Detroit stores within the Michigan and Michigan State Uni- ley Lake Road, Waterford Township, next six months, according to its versity, plans to open a location in voluntary Chapter 11. Assets and lia- broker, Farmington Hills-based Ann Arbor’s Briarwood Mall bilities not available. Landmark Real Commercial Real Es- in October. It also plans to bring — Ryan Kelly 20120730-NEWS--0006-NAT-CCI-CD_-- 7/27/2012 6:45 PM Page 1

Page 6 CRAIN’S DETROIT BUSINESS July 30, 2012 OPINION LETTERS Accusations may hurt Educators learn right lesson Editor: part of a larger problem: Our soci- Crain’s Detroit Business I appreciated Mary Kramer’s ety seems to have lost some of its welcomes letters to the editor. column (“Culture change could All letters will be considered for civility. help Detroit schools,” July 16) a publication, provided they are Civility is lacking in the politi- schools’ fundraising great deal. I’m glad to hear about signed and do not defame cal environment, in many organi- the group from the Skillman Foun- individuals or organizations. zations and even in our daily lives. emocrats are having a field day demonizing U.S. Sen- dation’s board that traveled to Letters may be edited for length We need to remind ourselves that ate candidate Clark Durant for what they call self- Chicago to get ideas and motiva- and clarity. civility is knowing and doing what tion for change here at home. is right in our relationships with dealing nonprofit abuses. Write: Editor, Crain’s Detroit D I could not help but think to my- others. But the donors footing the bill say they gave thousands of Business, 1155 Gratiot Ave., self that there is proof of the Detroit, MI 48207-2997 We need to rediscover our acts dollars to charities affiliated with Cornerstone Schools and its lessons Kramer learned — “cul- of civility, such as being a good lis- Email: [email protected] fundraising arm because Durant was critical to the fundrais- ture trumps instruction” — right tener, respecting others’ opinions, ing success of the network of alternative inner-city schools. here in Detroit, at 8400 S. Cam- accepting and giving praise, and bridge, at University of Detroit Je- acting with politeness, manners Durant’s political opponents have an- suit High School and Academy. I Brush up on civility and kindness. How do we go out of nounced they would file complaints with the know, I know, you’ll say it is differ- Editor: our way to lend a hand? Do we con- Internal Revenue Service over the compensa- ent because we are a private Jesuit I was pleased to read Tom Borg’s sider that no act is without conse- tion arrangements for Durant and his daugh- school, but the concepts of how this comments (“Other Voices,” July quence, and do we consider what ter, a fundraiser for Cornerstone. school is managed are exactly 23) on the fact that “business eti- the consequences will be? What re- what works in all environments. His compensation is not exactly “breaking quette is falling to technology.” In sponsibility do we take for the The Skillman Foundation was well a time when so much communica- well-being of our communities and news.” Crain’s first reported Durant’s com- aware of this when it granted us a tion is done electronically and our environment? pensation as part of a “top-paid” nonprofit ex- significant sum through its “Great through social networking, our All of these thoughts about civil- ecutive list in 2008. The information has been Schools” initiative, for which we skills in face-to-face communica- ity should be a priority for all of us Durant public as part of IRS 990 forms for years. are very grateful. tions have suffered and in some and should be passed on to the Mary Barden cases completely lack what we younger generations. What is news are the supportive statements from the Director of major gifts have grown to expect. donors who helped to persuade Durant to leave the private sec- University of Detroit Jesuit High School and Academy Gail Warden Detroit Personally, I think the issue is Grosse Pointe tor to build the Cornerstone network in the first place. Were it not for Durant, they simply wouldn’t have made the critical contributions that got the schools up and running. Still, with polls showing Durant trailing Hoekstra last week by more than 30 percentage points, it’s likely if Durant TALK ON THE WEB loses the Aug. 7 primary, there will be work to do to help repair the damage the political accusations have caused Corner- From www.crainsdetroit.com fer — and I compliment the compa- stone and its fundraising efforts. Detroit riverfront getting $44M Reader responses to stories and boost in federal, state funds blogs that appeared on Crain’s ny for coming up with a humane website. Comments may be alternative to sweeping layoffs — Channel 7’s Lewis has ‘had it all’ This continued development is a edited for length and clarity. only someone who is kind of an id- silver lining in the panoply of pub- iot would be “kind of excited” licly funded projects. The River- Marissa Mayer’s recent appointment as CEO of Yahoo has rudeness that reminds me of the about losing the talent and institu- Front Conservancy needs to be re- late Andy Rooney’s crankiness. tional knowledge that will walk touched off yet another debate over whether women “can have tained when this project is done Alan Stamm through our doors. it all” and pursue careers seeking their highest potential. and should be given more public m.l. elrick development work to do. The blogosphere lit up when it was re- I have to agree with Mr. Borg. Timothy Dinan vealed that Yahoo hired Mayer even though The two examples he cites are not Re: Wayne State president she was pregnant and planned a short, work- isolated incidents but the norm for denies targeting tenure Re: Tom Borg on biz etiquette what we experience every day, ing leave from the office. “Faculty tenure ... cannot be a Why does saying “no problem” sometimes multiple times a day. Closer to home, Diana Lewis announced place to hide for those whose per- bother you at all? It’s the same re- RobertArch last week she would retire this fall from televi- formance or behavior is poor.” sponse as “thank you,” but more Amen. The unions and/or people sion news after 44 years, 35 of them at ABC af- informal and friendly. I find the Re: Huntington Bank signs on who support tenure for life with- filiate WXYZ-Channel 7. (See story, Page 4.) older generation’s anger toward out proper ongoing performance our communication style to be hu- with Michigan State athletics Lewis Lewis raised a family during her Detroit evaluations need to get out of the morous and frustrating. Nice to see Huntington support- tenure. She has become a big part of the Detroit community. A Dark Ages. hardtomarket.blogspot.com ing our state’s premier university ath- Dr J consummate professional, she not only anchored the news- letics programs. Go Green! casts for years with TV bad boy Bill Bonds, but she was able to Retail interactions ideally Walt Re: GM bringing IT in-house should close with eye contact, a make broadcasting history by co-anchoring with her daugh- smile and “thank you,” but it’s un- After moving all of its IT em- ter, Glenda. fair to smear two generations with a Re: Early retirement at News, Free Press ployees into EDS, many of whom Maybe that’s a good definition of “having it all.” broad-brush claim of rampant While I agree it’s a generous of- See Talk, Page 7 KEITH CRAIN: It is time for Ficano to resign his post The revelations about the mis- long before he finally There likely will be already been indicted, some have and not-so-good politicians over conduct at Wayne County just agreed to resign as may- continual revelations pleaded and others may yet come. the years. Just because they keep coming. or of Detroit. about employees and ap- It is a good thing that we have an learned at Wayne County govern- Regardless of County Executive Ficano’s administra- pointees of his adminis- independent Wayne County prose- ment doesn’t immediately cause Robert Ficano’s guilt or inno- tion has simply become tration for months. cutor and a very aggressive federal suspicion, but it has to make one cence, it is his administration that far too ineffective to al- Whether those revela- prosecutor who are actively pursu- pause. The former mayor of De- has been fraught with corruption. low him and his ap- tions will include Ficano ing corruption in Southeast Michi- troit’s candidacy was promoted by The captain goes down with his pointees to remain in of- remains to be seen. But gan. It is something that needs to be the Wayne County machine that ship. fice until his term it’s indisputable that this rooted out of our political system. preceded Ficano. But we should be No one is quite sure what the fu- expires at the end of 2014. is his administration and The citizens of Southeast Michigan careful not to condemn the whole ture holds for Ficano, but one It would be far better he must be held account- deserve honest government that is barrel for a couple of rotten apples. thing is certain: His administra- for him to resign now able for malfeasance and effective and efficient at the lowest With aggressive prosecutors, tion has become ineffective. and allow the office that he has misdeeds that have taken place dur- cost. there will be plenty of additional Unfortunately, we all have vivid served in to move on and work hard ing his tenure. The executive in Wayne County has had a history indictments. memories of Kwame Kilpatrick to eliminate the corruption that charge is responsible for the people of corruption dating back for It’s time for Robert Ficano to re- fighting and denying for far too would appear to be throughout. he appointed. Some executives have decades. It has spawned some good sign for the good of the people. 20120730-NEWS--0007-NAT-CCI-CD_-- 7/27/2012 3:35 PM Page 1

July 30, 2012 CRAIN’S DETROIT BUSINESS Page 7 MARY KRAMER: Faculty talks test Wayne State board

Two years ago, Wayne State Uni- budget cuts, manage- sociation of University mand. Meanwhile, WSU is trying broadly — to students whose tu- versity’s board of governors ment wants more flexi- Professors-American to improve its graduation rates — ition dollars pay the bulk of the scored a public relations coup bility to allocate Federation of Teachers the worst among Michigan’s 15 university’s budget and the tax- when it named Allan Gilmour as staffing and resources. runs more than 180 public universities, particularly payers who fund the rest — there’s interim president and eventually Management also pages in handbook among African-American stu- a different result. handed him the permanent job. delicately suggests that form. Under those cur- dents. If the board sides with the Now the question is: Will the if a tenured professor is rent rules, it can take To address those challenges, you union, it’s an academic guess that board that hired the retired Ford no longer engaged in re- years to start — or end need to be able to shift people and it’ll have a tough time recruiting Motor Co. CFO and vice chairman search, perhaps he or — a program. (It’s prob- resources faster than a three-year top candidates to lead WSU after support him in coming weeks as she should teach more ably a blessing WSU review process. Gilmour is gone. he tries to craft a flexible labor than the standard six had never offered a de- It will be interesting to watch agreement with WSU’s 1,800 full- hours a week for an av- gree in blacksmithing.) this drama play out. Will the board Mary Kramer is publisher of time faculty? Or will the board erage salary of $97,000. Likewise, it takes years support Gilmour? Crain's Detroit Business. Catch her pressure Gilmour to defer to union That’s almost $100,000 a to remove anyone for If a majority of WSU board sees take on business news at 6:10 a.m. leadership’s demands? year for teaching two three-hour “just cause.” its core constituency as faculty Mondays on the Paul W. Smith show Cynics are betting on the second classes a week over nine months. WSU has big challenges: Em- and staff — who happen to be on WJR AM 760 and in her blog at option, because WSU’s elected The current contract with the ployers and students want pro- union members — it will be one re- www.crainsdetroit.com/kramer. board is dominated by Democrats WSU chapter of the American As- grams that meet marketplace de- sult. If it sees its obligation more E-mail her at [email protected]. with strong ties to organized labor. The board chair is an employee of the AFL-CIO, and some other members are either retired from or have close ties to other unions. Some board members have worn union T-shirts to official meetings. And the president of the faculty union has nominated people for his board from the floor of the state Democratic convention. Last week, the faculty union ac- cused Gilmour of trying to end academic tenure — that academic phe- nomenon which, after a rigorous application process, provides life- time job security to professors. The over-the-top rhetoric suggests management’s proposals are the end of Western civilization as we know it. Management’s proposals don’t abolish tenure. But they do clarify circumstances in which the university could “de-tenure” a faculty member for cause. The same proposals also make it easier to reduce staff when programs aren’t supported by student enrollments. Considering that WSU saw $29 million cut from its annual operating budget last year because of state

TALK CONTINUED ■ From Page 6 “When I made the leap to start my own business, I knew I could lost their GM medical benefits for sell my designs. But, I had no idea how to run a business. retirement, and who were ab- Employees. Patents. Small business taxes. Benefits. It was sorbed later into Hewlett-Packard — nice going, GM. No loyalty to overwhelming. Fortunately, my insurance agent recommended those who were displaced in the PriorityValueSM. I wasn’t sure I could afford it, so I was elated past. This corporation can’t seem to make up its mind. when I got the quote. Low monthly premiums and excellent Mr. VRC benefits? At Bauer Design, we call it PriorityAwesome.” Nathan B. Re: City Council votes down Leaper of faith with 24 employees proposed union contracts Where’s the surprise? The council members who voted against are gambling that the whole financial stability, emergency manager plan falls on its face and they are left smug and smart, having consis- tently opposed everything that came in the door. If the Snyder plans Save 11% on your health insurance benefits. work and the city revives, these short-sighted folk can just go back If you’re looking for an affordable health plan that helps keep employees healthy and productive at work, say and watch it all on TV, because it’s hello to PriorityValue. $0 physician office visits. Easy-to-understand plan designs. Affordable drug coverage. too late for them to jump on the We’ve got you covered. With PriorityValue, you don’t have to choose between great benefits and a fair price. bandwagon, anyway. John Williamson Ask your agent to quote PriorityValue and start saving today. Re: Former Wayne County priorityhealth.com/affordableplan worker gets pension at 37 I don’t blame her, but I sure do blame Ficano and those immediately under him who are supposed to be minding the store. 11% represents the average savings realized over comparable plans. Janmodze 20120730-NEWS--0008-NAT-CCI-CD_-- 7/27/2012 3:21 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS July 30, 2012 Delphi’s expansion strategy: acquisitions, growth in China Two and a half years af- You aren’t changing pening for the past year, it’s been ter emerging from Chap- course? pretty steady for us. Our produc- ter 11 bankruptcy protec- We’re just accelerat- tion schedules look sound. tion, Troy-based Delphi ing. How much revenue will North Amer- Automotive LLC is growing You’ve said you’re willing ica generate in 2015? again. In May, the compa- to spend up to $1 billion for Our goal is to be perfectly bal- ny announced plans to other acquisitions. anced geographically. That is, 30 buy FCI Group’s electrical I think that’s the upper percent of our sales will be in Asia, connectors business for limit. 30 percent in North America, 30 $972 million, and CEO percent in Europe and 10 percent Rodney O’Neal says he isn’t In what other product in South America. We are well on finished. segments are you consider- our way to that. O’Neal, 58, says he ing acquisitions? would consider buying Electronics and soft- What share of Delphi sales will GM suppliers of powertrain Rodney O’Neal, ware. and Opel represent? components, electronics Delphi Automotive No customer will be more than LLC Do you mean infotain- or software under the ment electronics? 15 percent of our portfolio. Today, right circumstances. I wouldn’t limit it to GM is 18 to 19 percent of our busi- Consultative O’Neal discussed his company’s ness. So we’ve come a long way Professional life insurance counseling that, but that would be an area of expansion strategy with Automo- interest, particularly for software. from 50 percent (in 2005). in a non-salesy environment tive News Special Correspondent Powertrain components are anoth- Who are your second- and third- David Sedgwick. er area of high interest. If some- biggest customers? In May, Delphi said it plans to buy thing comes along that makes Volkswagen and Ford. We work with our clients and their advisors to: FCI’s automotive connector operation sense, we’d move on it. for $972 million. That would make Del- At what percentage of capacity are Reduce estate and income tax Enhance fixed income How fast are you growing in China? phi the world’s No. 2 producer of elec- your North American factories operat- Last year, our sales in China yields Solve family and business issues Improve trical connectors, right? ing? were $1.8 billion. By 2015, China existing life insurance policies. Yes. We’ll be behind Tyco (TE We are operating at 80 to 85 per- will generate $3.5 billion to $4 bil- Connectivity). But we don’t need cent (of capacity). We are not lion out of $22 billion (forecasted acquisitions to create value. These adding brick-and-mortar or tool- global sales). We have 23,000 em- types of acquisitions won’t trans- ing, but we are working to be more ployees and 2,800 engineers in Chi- form Delphi. They are bolt-ons. efficient. In the foreseeable future, na. we’ll add some capacity, but noth- So your acquisitions will supple- ing major. ment the products you have? Which product division is biggest in That’s exactly right. This acqui- China? You’re confident you can meet your BIRMINGHAM, MICHIGAN 248.731.9500 sition fits us like a glove. We al- Our electrical architecture team production targets in North America? WWW.SCHECHTERWEALTH.COM ready have a very capable electri- has led the way. Of our 33 product We are extremely confident. lines, about 20 are (marketed) cal connector company. This just How difficult is it to find qualified speeds things up. there. We’re still completing the vision. engineers? We have around 17,000 engi- How are you doing in Europe? neers around the world. Human If things maintain the way they capital is always challenging. But I are, we’ll be fine. We’ll outgrow wouldn’t say it’s any harder than the market by four to five percent- it has been. We aren’t having trou- age points. ble keeping talent. This year, Delphi projected global How much money are you allotting sales of $16.2 billion to $16.5 billion. for R&D? In light of China’s recent slowdown It’s about 7 to 8 percent of rev- Thank You To Our 2012 Corporate Walk Co-Chairs and Europe’s stagnation, are you enue. There are some competitors sticking with that forecast? that spend more; most spend less. It’s been a choppy market. But We are comfortable with what we Left to Right: when you look at what’s been hap- spend. Dan Etue, Assistant Controller, Meritor, Inc. ENTER CRAIN’S BEST MANAGED NONPROFIT CONTEST Joey Bartrum, This year’s Crain’s Best Applications must include an entry Managed Nonprofit Contest is form, a copy of the nonprofit’s most Age 5, Leukemia Survivor focused on technology. recent audited financial statements Applicants are asked and a copy of the most- Ed Peper, Jr., to submit an example of recent IRS 990 form. U.S. Vice President, successfully deploying Previous first-place Fleet and Commercial Sales, technology to forward winners are not eligible; their organization’s neither are hospitals, General Motors Company mission, such as, but HMOs, medical clinics, not limited to: business and improvements to in- professional house technology that 2012 organizations, schools, MAKING AN IMPACT improve efficiency or churches or other goals; successful social foundations. IN THE FIGHT media strategy; or use of The winners will be profiled in the technology to improve databases of Nov. 26 issue, receive a special AGAINST volunteers and/or donors. Entries “best-managed” logo from Crain’s will be judged on the degree to for use in promotional material and which the success of the will be recognized at the Crain’s BLOOD CANCERS technology deployment is Newsmaker of the Year lunch early documented. next year. The Leukemia & Lymphoma Society’s Light The Night Walk funds lifesaving cancer Applications are due Aug. 20. For an application form, please Finalists will be interviewed in email YahNica Crawford at research, patient services and advocacy for the best treatments possible. Walkers person by judges the morning of [email protected] or visit carry illuminated balloons on a 1.5 mile walk and enjoy food and entertainment. Nov. 6. www.crainsdetroit.com For more information on how to join Dan and Ed and make a difference in the lives Applicants for the award must be /nonprofitcontest. For information, a 501(c)(3) with headquarters in email Executive Editor Cindy of blood cancer patients, call 248.581.3941 or visit LightTheNight.org/mi. Wayne, Washtenaw, Oakland, Goodaker at [email protected] Macomb or Livingston counties. or call (313) 446-0460. 20120730-NEWS--0009-NAT-CCI-CD_-- 7/27/2012 1:55 PM Page 1

July 30, 2012 CRAIN’S DETROIT BUSINESS Page 9

A CONVERSATION WITH CRAIN’S LIST Largest law firms, Page 15

Mark Kopson, Plunkett Cooney PC Law

Mark Kopson, chairman of the Healthcare Industry Group at Bloomfield Hills-based Plunkett Cooney PC, is also a member of the firm’s administrative and regulatory practice. He spoke with Crain’s reporter Chad Halcom about recent growth in compliance legal work, particularly for health care lawyers. Seeking cl sure

Since the U.S. Supreme Court upheld the Patient Protection and Affordable Care Act last month, what issues are coming up for companies that need to Clients push for faster work resolving cases get compliant with the new law? Among (other things), some legal BY CHAD HALCOM changes created by the ACA have CRAIN’S DETROIT BUSINESS made it easier to pursue claims The long and short against health care providers under or corporations seeking liti- the federal False Claims Act (involving gation attorneys, fast re- of case closings false vendor or contractor claims F sults are increasingly be- submitted to the government). The coming as important of a factor Of the largest law firms in new law created an affirmative option to review as winning. Michigan, the two with the to return or repay an overpayment Attorneys and legal consul- shortest median time to close within 60 days of it being identified. If tants point to a trend of corpo- federal lawsuits — Dawda, a physician receives an overpayment rate law departments shopping Mann, Mulcahy & Sadler PLC from Medicare, mere inaction can be for efficiency in a more me- (147 days) and Farmington enough to face prosecution in some thodical way. While attorneys Hills-based Trott & Trott PC cases. In the old days, you also had handling complex cases say (183.5 days) — have non-stan- to affirmatively do something under time isn’t the only measure to dard practice areas: One has the False Claims Act to be liable in consider, a national push is court. It used a kind of “knew or a heavy docket of business emerging from clients to push plaintiffs and the other a should have known” legal standard, median case closure rates where the provider might have to heavy focus on real estate. down. operate with a reckless disregard for Rounding out the top five, With that trend in mind, the the government to support a false according to Monitor Suite claim in court — like if a physical Monitor Suite service of Thom- data tracking, are more-tra- therapy company was paying no son Reuters company Hubbard ditional business law firms attention to how its services got One this year began compiling Miller Johnson PLC; Bodman billed. and reporting data on law PLC, Varnum LLP and Maddin, firms’ time to close cases, settle Hauser, Wartell, Roth and Heller But the government had expanded or get dismissal motions heard PC at median times of 195, its own power already. How does the in federal district courts na- 203, 210 and 210 days to close, health care law make use of that? For tionwide. respectively. one thing, if the government Michigan’s largest law firms Taking longest to close fed- successfully prosecuted a false so far tend to trail the state av- eral cases were Troy-based Gi- billing, it used to be that maybe those erage of firms practicing in armarco Mullins Horton PC (344 persons involved went to federal Michigan federal courts, by an days), Detroit-based Butzel prison, but the government was still average of two to three months, Long PC (372 days), and Farm- out the money it had paid. But with according to a review by Moni- the enhanced punishments and ington Hills-based Secrest, tor Suite. It’s important to note Wardle, Lynch, Hampton, Truex powers the government has to pursue the data does not include cases False Claims, now it’s viable as a and Morley PC (380.5 days). in other court systems and oth- revenue center. The ACA is another Taking longer to close a er types of legal mediation — expansion. And a part of the cost for GLENN TRIEST case is not a specific measure the ACA new benefits is intended to and data on some multi-party Partner Lawrence Stawiarski says an aggressive litigation style helps of performance because some be funded through aggressive federal cases is difficult to splice. Dawda, Mann, Mulcahy & Sadler PLC outpace the pack in resolving cases. cases are more complex than pursuit of fraud and abuse claims. Some attorneys also note the others. fact that closure times vary by (See a firm-by-firm analysis What else has the attention of the type of litigation and the TRACKING CLOSING SPEED on Pages 11-14.) compliance attorneys in this industry? large, complex cases typically Civil case highlights from the Monitor Suite review of Michigan’s 30 handled by big firms simply What about pending court cases that largest law firms: get done with it first at the sum- could reshape employers’ legal take longer to dissect and liti- Median case closure time Median closure time, trial cases mary judgment phase, they’ll responsibilities? Well, on a particularly gate. appreciate it.” local level, the entire Blue Cross Blue Ⅲ For largest firms: 253.7 days Ⅲ For largest firms: 598 days Other firms also see in- Shield of Michigan most-favored- Ⅲ For all firms and attorneys Ⅲ For all firms: 563 days nation (antitrust case at U.S. District How firms fared with cases in Michigan federal creased attention to efficiency courts: 187 days in the legal mar- Court in Detroit) is a big deal. That Two firms — Dawda, Mann, ket. litigation has a wide potential impact Mulcahy & Sadler PLC in Bloom- Ⅲ Percentage of cases in which attorneys for the 30 firms filed “The firms — it impacts competing insurance field Hills and Trott & Trott PC in motions for dismissal or summary disposition: About 30 percent haven’t always providers in terms of being able to Farmington Hills — fared bet- compete against Blue Cross. But it Note: Monitor Suite drew on a sample of more than 16,000 cases before all judges been proactive ter than the state as a whole in also means managed care contracts at Michigan’s two federal court districts since July 2007. Criminal justice cases about contact- median time to close, at 147 were excluded because they tend to operate under different schedules. between hospitals and insurers and ing the client days and 183.5 days, respective- HMOs are becoming more complex, early on, to find ly, according to Monitor Suite. data, credits his mix of cases “(Publicly traded) companies and compliance attorneys have to be out their con- Dawda Mann specializes in and an aggressive litigation might in some circumstances more cognizant of them. You have to cerns and ask, real estate, automotive and style for the firm’s fast closure want you to be aggressive be- consider, are there provisions in the ‘What do you ul- banking practices plus some rate. cause of the disclosure con- contracts for the detection of timately want Kellett mergers and acquisitions work. Some lawsuits wrap up faster cerns that continue to come up overpayments, and is the provider out of this?’ ” said Peter Kellett, It represented plaintiffs in if the client wants an injunc- while cases are pending. So taking measures to enhance chairman-CEO of Dykema Gos- about 65 percent of federal cas- tion or court order to stop a without the cost being outra- compliance? The fact is, providers sett PLLC and former litigation have to devote more (people) to es over the time period. harmful business practice geous, is there a way to get out department director at that compliance monitoring of the impact Lawrence Stawiarski, part- rather than financial damages, prior to trial?” he said. “And firm. of their contracts not only with their ner at Dawda Mann and its he said. Also, certain kinds of trial preparation can be a “So cases can languish if you insurers, but their contracts with busiest litigator by case count businesses may also put a pre- tremendously expensive phase physicians and with suppliers. according to Monitor Suite mium on brevity. of the case, so if the client can See Speed, Page 10 20120730-NEWS--0010-NAT-CCI-CD_-- 7/27/2012 1:44 PM Page 1

Page 10 CRAIN’S DETROIT BUSINESS July 30, 2012 Focus: Law Speed: Clients push for faster work ■ From Page 9 don’t practice that way. But the he said offers “challenge awards” Mullins & Horton PC’s municipal push is on more recently to get a to firms that perform well on sev- practice. good result early, rather than just eral metrics, including time to “I know many of our federal law- whenever it’s ripe for resolution in close. suits are either the labor and em- the courts.” “Even having cycle time as a ployment variety or the public pol- Dykema closes its federal law- measurement seems to change be- icy variety,” he said. “And in suits in a median time frame of havior. Alternative fee arrange- those, a lot of depositions are com- 217.5 days, to finish sixth among ments with clients can have a sim- pleted before the parties’ positions the top 30 Michigan firms, accord- ilar effect,” he said. “And are necessarily fully known. In ing to Thomson Reuters’ data. companies study e-billing data other kinds of (federal cases), the that categorizes certain expenses positions are a little clearer from Our clients choose the by the phase of the case. So if six the start.” Need for speed? months after the filing (of a law- best of both worlds: But is time really essential? suit) you’re still on the (initial National firm expertise with Doesn’t the end result matter more phase of) assessment in your state- What could help personalized client service. than the process, and who — if ments, the client will see some- personalized client service. anyone — is comparing firms on thing’s wrong there.” Bruce Truex, partner and head case duration? Stawiarski and Earl Johnson — of the products liability and com- “There’s a direct correlation be- another of Dawda Mann’s top liti- mercial litigation practices at Se- tween cycle time and total (case) gators, according to Monitor Suite crest, Wardle, Lynch, Hampton, Truex cost, and legal departments are — moved to the law firm in late and Morley PC in Farmington Hills, starting to realize that,” said Jim 2010 from McDonald Hopkins LLC also said that firm’s long median Michalowicz, adjunct consultant and together handle the majority closure time may have to do with on corporate law departments at of more than 30 federal lawsuits on the complexity of his cases. legal management consulting firm behalf Own Capital LLC against vari- It may also be a result of proce- Altman Weil Inc.’s New Jersey of- ous auto dealership companies. dural rules that he said needlessly fices. Own, a Laguna Niguel, Calif.- slow down some cases. Federal law “When general counsels select based private investment fund for- calls for several delays of 30 days law firms, we’re seeing more merly known as Orbach Waters or more to proceed after a court savvy in their process, and cycle LLC, loaned more than $100 mil- case transfers from state to federal time is going to be an increasing lion to various high-net-worth court, for example, for clients to factor for several kinds of clients. dealerships since its 2005 incep- receive notice and decide if they McDonald Hopkins PLC They’ll be developing more of a tion. want to challenge the transfer. 39533 Woodward Ave., Suite 318, Bloomfield Hills, MI 48304 • 248.646.5070 metrics base soon to better analyze In 2010 and 2011, the fund filed “As a defense firm, we prefer to it. And (time) will be used as a suits nationwide to enforce tens of be in federal court. Better judges, Stephen M. Gross marketing tool among some law millions of dollars in arbitration better juries. But it’s going to add Detroit Managing Member firms.” awards against defaulting dealers time, because once you remove it Chicago • Cleveland • Columbus • Detroit • Miami • West Palm Beach Michalowicz said companies are under its borrower agreements. to that court, that means you may starting to look at case closure effi- About half of those cases are re- have to wait a while before pro- mcdonaldhopkins.com ciency before retaining a firm. He solved already, and nearly a dozen ceeding to discovery,” he said. does some consulting for legal de- took less than six months, accord- But Michalowicz and some at- Carl J. Grassi, President partments at Tyco International and ing to PACER, the online federal torneys said alternative fee agree- E.I. du Pont de Nemours & Co., which court records database. ments through which firms don’t Stawiarski said contractual dis- rely as much on the billable hour putes or enforcement of arbitra- also move cases along. Kellett and tion awards can be pretty straight- Stawiarski each estimated Dyke- forward in court and boost the ma and Dawda Mann apply alter- firm’s case closure rate. native fees in 10 percent to 20 per- Financial institutions and, to a cent of cases they handle. cooley.edu lesser degree, public companies Julie Savarino, managing direc- facing investor concerns about the tor of Business Development Inc., uncertainty of pending lawsuits an Ann Arbor consulting company value efficiency, attorneys said — that advises law firms on business but that can vary by the kind of lit- development and practice manage- igation. ment, said state ethics rules limit “We represent mostly small and the ways that an attorney can mar- mid-sized companies, and there ket any “expectation” of results, the cost of litigation is more im- including time to close a case. But portant than time,” said Mark De- she added that closure rates are in- Morest, managing partner at Roy- creasingly important to some al Oak-based DeMorest Law Firm clients, and attorneys can discuss Cooley Law School PLLC. “But it will vary (by) indus- rates with them individually. Security try.” “The longer something takes, “What this Monitor Suite data the more expensive it can become. graduates lead in does not tell us is how complex a So the client’s perception of value case is and whether it is potential- can be a mix of both results: time ly significant to the client,” said J. and the bill,” she said. “But, if Michael Huget, partner and Intel- you’re representing a company lectual Property Litigation Prac- that wants to get rid of its CEO, tice Group chair at Honigman Miller and the CEO is threatening to sue, Schwartz and Cohn LLLP. “For exam- time could also help calm down Edward Gibson ple, there are fewer patent litiga- nerves. So the speed issue can play Director, U.S. Forensic Technology Solutions at PwC (PricewaterhouseCoopers) tion cases filed than employment both ways.” Ed helps corporate decision-makers, globally, address complex issues such as e-Espionage, cyber intrusions, theft of IP and PII, discrimination cases, but they of- Truex also pointed out that feder- money laundering, corruption, and criminal exfiltration of data. His former titles read like a novel: FBI Special Agent, Assistant ten take far longer to resolve for al courts, unlike state courts, often Legal Attache-American Embassy London, and Microsoft’s Chief cyber Security Advisor in the United Kingdom. several reasons. use a non-binding form of facilita- “In a patent case, there may be a tion rather than the more restric- unique discovery period, an exten- tive process at the state courts, Cooley Law School Graduates Lead. Cooley stresses legal knowledge, practice sive hearing which is not part of which can impose sanctions on skills, and professional ethics, concepts that are now receiving much attention in the trial, a tutorial for the court on someone who rejects an initial as- technology, an injunction phase, sessment of a case’s value and in- legal education, but have been in place at Cooley since its founding in 1972. all adding to the case length. These sists on taking to trial in some cases. Learn about Cooley Law School at cooley.edu sort of events simply do not hap- “But the process is not mandato- pen in more routine pieces of liti- ry in federal court. You have to 40 Years of Success SCAN & LEARN MORE gation.” stipulate to it,” Truex said. “And Thomas M. Cooley Law School is committed to a fair and objective admissions policy. Subject to space limitations, Cooley offers the opportunity for legal education to all qualified applicants. Cooley abides by all federal and Some cases just take longer due that plays a role.” state laws against discrimination. In addition, Cooley abides by American Bar Association Standard 211(a), which provides that “a law school shall foster and maintain equality of opportunity in legal education, including employment of faculty and staff, without discrimination or segregation on the basis of race, color, religion, national origin, gender, sexual orientation, age or disability.” to a longer discovery period, said Chad Halcom: (313) 446-6796, ICG.0712.036.AD Timothy Mullins, partner and [email protected]. Twitter: head of Troy-based Giarmarco, @chadhalcom 20120730-NEWS--0011-NAT-CCI-CD_-- 7/27/2012 1:39 PM Page 1

July 30, 2012 CRAIN’S DETROIT BUSINESS Page 11 Focus: Law

Ⅲ Total Michigan attorneys, 2012: 87 A closer look at cases closed Ⅲ Data sample, July 2007-July 2012: Crain’s analyzed law firm case 27 cases closure rates and other data using a new feature of legal industry 4. Bodman PLC data tracking software Monitor Ⅲ Location: Detroit Suite to create the firm profiles in Ⅲ Median time to: this report. Close all cases: 203 days Crain’s generated reports from Close by summary judgment: 405 days Monitor Suite, a product of Hubbard Close by case settlement: 202 days One, a Thomson Reuters company, for the 27 of the 30 largest Michigan law Ⅲ Cases in which firm sought firms that had federal court data. summary judgment: 12% The data for each firm is based on Ⅲ Cases resolved via summary judgment: 5.4% data Monitor Suite pulled from Ⅲ Cases in which firm filed a motion available records from Michigan’s to dismiss: 30% two federal courts since July 2007. Ⅲ Cases resolved via motion to The data does not include ap- dismiss: 8.5% peals. Wins or losses do not neces- Ⅲ Cases settled after sarily mean a client paid or re- judgment/dismissal denied: 42% ceived damages. Ⅲ Total cases settled or voluntarily dismissed: 67.4% 1. Dawda, Mann, Mulcahy & Sadler PC Ⅲ Median time to resolve cases by Ⅲ Location: Bloomfield Hills trial: 313 days Ⅲ Median time to: Ⅲ Trial outcome rate: 1-0 Close all cases: 147 days Ⅲ Total Michigan attorneys, 2012: Close by summary judgment: 499 days 131 Close by case settlement: 147 days Ⅲ Data sample, July 2007-July 2012: 643 cases Ⅲ Cases in which firm sought summary judgment: 3% Ⅲ Cases resolved via summary 5. Varnum LLP judgment: 2.9% Ⅲ Location: Grand Rapids Ⅲ Cases in which firm filed a motion Ⅲ Median time to: to dismiss: 3% Close all cases: 210 days Ⅲ Cases resolved via motion to Close by summary judgment: 423 days dismiss: 2.9% Close by case settlement: 216 days Ⅲ Cases settled after judgment/dismissal denied: 0% Ⅲ Cases in which firm sought Ⅲ Total cases settled or voluntarily summary judgment: 11% dismissed: 31.4% Ⅲ Cases resolved via summary judgment: 4.1% Ⅲ Median time to resolve cases by Ⅲ Cases in which firm filed a motion trial: NA to dismiss: 12% Ⅲ Trial outcome rate: No trial results. Ⅲ Cases resolved via motion to Ⅲ Total Michigan attorneys, 2012: 35 dismiss: 2.6% Ⅲ Data sample, July 2007-July 2012: Ⅲ Cases settled after 59 cases judgment/dismissal denied: 50% Ⅲ Total cases settled or voluntarily 2. Trott & Trott PC dismissed: 69.1% Ⅲ Location: Farmington Hills Ⅲ Median time to resolve cases by Ⅲ Median time to: trial: 760 days Close all cases: 183.5 days Ⅲ Trial outcome rate: 1-0 Close by summary judgment: 279.5 days Ⅲ Total Michigan attorneys, 2012: Close by case settlement: 193.5 days 134 Ⅲ Data sample, July 2007-July 2012: Ⅲ Cases in which firm sought 534 cases summary judgment: 28% Ⅲ Cases resolved via summary judgment: 14.7% 5. Maddin, Hauser, Wartell, Roth & Ⅲ Cases in which firm filed a motion Heller PC to dismiss: 25% Ⅲ Location: Southfield Ⅲ Cases resolved via motion to dismiss: 11.2% Ⅲ Median time to: Ⅲ Cases settled after Close all cases: 210 days judgment/dismissal denied: 25% Close by summary judgment: 384 days Ⅲ Total cases settled or voluntarily Close by case settlement: 184 days dismissed: 53.6% Cases in which firm sought summary Ⅲ Median time to resolve cases by judgment: 15% trial: 313 days Cases resolved via summary Ⅲ Trial outcome rate: 1-0 judgment: 9% Ⅲ Total Michigan attorneys, 2012: 91 Cases in which firm filed a motion to Ⅲ Data sample, July 2007-July 2012: dismiss: 13% 499 cases Cases resolved via motion to dismiss: 9% 3. Miller Johnson PLC Cases settled after Every lawyer must pass the bar. judgment/dismissal denied: 90% Ⅲ Location: Grand Rapids Total cases settled or voluntarily Ⅲ Median time to: dismissed: 66.4% Ours go on to raise it. Close all cases: 195 days Close by summary judgment: 434 days Median time to resolve cases by trial: Close by case settlement: 223 days N/A Trial outcome rate: No trial results. Wayne Law offers students a strong and comprehensive legal Ⅲ Cases in which firm sought Total Michigan attorneys, 2012: 51 summary judgment: 23% Data sample, July 2007-July 2012: education. Our student-focused faculty members are dedicated Ⅲ Cases resolved via summary 251 cases to providing you with the skills you need to resolve complex judgment: 7.7% Ⅲ legal issues with creative solutions. It’s no wonder our alumni Cases in which firm filed a motion 7. Dykema Gossett PLLC to dismiss: NA go on to make signiﬁcant contributions in their communities Ⅲ Cases resolved via motion to Ⅲ Location: Detroit AIM HIGHER dismiss: NA Ⅲ Median time to: and beyond. Join our prestigious community of top attorneys, Ⅲ Cases settled after Close all cases: 217.5 days judges and leaders. Visit law.wayne.edu or contact our judgment/dismissal denied: NA Close by summary judgment: 459 days Ⅲ Total cases settled or voluntarily Close by case settlement: 212 days Admissions Ofﬁce at (313) 577-3937. dismissed: NA Ⅲ Cases in which firm sought Ⅲ Median time to resolve cases by summary judgment: 8% trial: NA Ⅲ Cases resolved via summary Learn more at law.wayne.edu or us on Facebook at facebook.com/WayneStateLawSchool Ⅲ Trial outcome rate: No trial records. See Next Page 20120730-NEWS--0012-NAT-CCI-CD_-- 7/27/2012 1:38 PM Page 1

Page 12 CRAIN’S DETROIT BUSINESS July 30, 2012 Focus: Law From Previous Page Close all cases: 228 days 9. Harness Dickey & Pierce PLC Ⅲ Trial outcome rate: 1-0 Ⅲ Cases settled after judgment/dismissal denied: 0% judgment: 7% Close by summary judgment: 495 days Ⅲ Total Michigan attorneys, 2012: 69 Ⅲ Location: Troy Ⅲ Total cases settled or voluntarily Ⅲ Cases in which firm filed a motion Close by case settlement: 229 days Ⅲ Data sample, July 2007-July 2012: Ⅲ Median time to: 282 cases dismissed: 64% to dismiss: 27% Ⅲ Cases in which firm sought Close all cases: 229 days Ⅲ Cases resolved via motion to summary judgment: 8% Close by summary judgment: 974.5 days Ⅲ Median time to resolve cases by dismiss: 3.8% Ⅲ Cases resolved via summary Close by case settlement: 229 days 9. Kitch Drutchas Wagner Valitutti trial: 610 days Ⅲ Cases settled after judgment: 3.6% & Sherbrook PC Ⅲ Trial outcome rate: 1-0 judgment/dismissal denied: 19% Ⅲ Ⅲ Cases in which firm sought Ⅲ Total Michigan attorneys, 2012: 92 Cases in which firm filed a motion Ⅲ Location: Detroit Ⅲ Total cases settled or voluntarily to dismiss: 4% summary judgment: 7% Ⅲ Data sample, July 2007-July 2012: Ⅲ Median time to: dismissed: 70.9% Ⅲ Cases resolved via motion to Ⅲ Cases resolved via summary 187 cases Ⅲ dismiss: 2.5% judgment: 3.6% Close all cases: 229 days Median time to resolve cases by Ⅲ Close by summary judgment: 465.5 days trial: 731.5 days Ⅲ Cases settled after Cases in which firm filed a motion 9. Dickinson Wright PLLC to dismiss: 9% Close by case settlement: 253 days Ⅲ Trial outcome rate: 11-6 judgment/dismissal denied: 13% Ⅲ Location: Detroit Ⅲ Ⅲ Total cases settled or voluntarily Ⅲ Cases resolved via motion to Ⅲ Median time to: Total Michigan attorneys, 2012: dismiss: 1.2% Ⅲ Cases in which firm sought 159 dismissed: 56.6% summary judgment: 10% Close all cases: 229 days Ⅲ Cases settled after Close by summary judgment: 379 days Ⅲ Data sample, July 2007-July 2012: Ⅲ Median time to resolve cases by judgment/dismissal denied: 0% Ⅲ Cases resolved via summary 2,671 cases judgment: 9.3% Close by case settlement: 229 days trial: 774 days Ⅲ Total cases settled or voluntarily Ⅲ Trial outcome rate: 1-0 dismissed: 76.2% Ⅲ Cases in which firm filed a motion Ⅲ Cases in which firm sought 8. Garan Lucow Miller PC Ⅲ Total Michigan attorneys, 2012: 81 to dismiss: 5% summary judgment: 11% Ⅲ Location: Detroit Ⅲ Data sample, July 2007-July 2012: Ⅲ Median time to resolve cases by Ⅲ Cases resolved via motion to Ⅲ Cases resolved via summary : 2.7% Ⅲ Median time to: 421 cases trial: 360 days dismiss judgment: 6.4% Ⅲ Cases in which firm filed a motion to dismiss: 10% Ⅲ Cases resolved via motion to dismiss: 3.8% Ⅲ Cases settled after Turn to the “deal-makers” judgment/dismissal denied: 18% Ⅲ Total cases settled or voluntarily dismissed: 70.5% Ⅲ Median time to resolve cases by at Howard & Howard. trial: 533 days Ⅲ Trial outcome rate: 6-5 Ⅲ Total Michigan attorneys, 2012: 204 Ⅲ Data sample, July 2007-July 2012: 1,375 cases Southwest Brake & Parts 12. Honigman Miller Schwartz

THROUGH ITS SUBSIDIARY, and Cohn LLP THE SALE OF CERTAIN SALE OF ASSETS TO RTI HOLDINGS, INC., ACQUIRED Ⅲ Location: Detroit ASSETS COMPRISING Ⅲ Median time to: THE DEFINOX FleetPride U.S. VALVE BUSINESS Close all cases: 232 days (an Investcorp Company) Close by summary judgment: 385 days July, 2010 Close by case settlement: 217 days September, 2010 August, 2011 Ⅲ Cases in which firm sought summary judgment: 11% Ⅲ Cases resolved via summary judgment: 6.5% Ⅲ Cases in which firm filed a motion Laga, Inc. to dismiss: 11% Ⅲ Cases resolved via motion to SALE OF ASSETS dismiss: 2% SALE OF ASSETS TO HAS REDEEMED VISTEON’S AND SUBSIDIARIES TO ACQUISITION OF Ⅲ Cases settled after SHAREHOLDING INTEREST ASSETS OF judgment/dismissal denied: 60% Graham Corporation SCHAWK! Ⅲ Total cases settled or voluntarily (NYSE) Visteon (NYSE) E.N. MURRAY CO. dismissed: 67.3% Ⅲ Median time to resolve cases by December, 2010 August, 2010 October, 2011 July, 2009 trial: NA Ⅲ Trial outcome rate: No verdict records. Ⅲ Total Michigan attorneys, 2012: 216 Ⅲ Data sample, July 2007-July 2012: Hilbrich Group, LLC. 566 cases 13. Clark Hill PLC HAS BEEN ACQUIRED BY ACQUISITION OF HAS SOLD ITS SOUTHERN Ⅲ Location: Detroit STOCK OF OPERATIONS TO Ⅲ Median time to: INDUSTRIAL OPPORTUNITY Close all cases: 238 days PARTNERS INZI CONTROLS Close by summary judgment: 403 days Close by case settlement: 232 days November, 2011 November, 2009 December, 2009 Ⅲ Cases in which firm sought summary judgment: 11% Ⅲ Cases resolved via summary judgment: 5.7% Areas of M&A Expertise: Ⅲ Cases in which firm filed a motion to dismiss: 10% Automotive | Energy | Financial Institutions | Healthcare | Industrial | International | Private Equity | Venture Capital Ⅲ Cases resolved via motion to dismiss: 3.6% Our top ranked M&A group offers scalable resources and vast industry expertise to cover every aspect of your M&A transactions from qualifying Ⅲ Cases settled after buyers, IP due diligence and negotiation of deal documents, to post-closing integration. Applying innovative thinking and trusted insight, we judgment/dismissal denied: 35% deliver deals from the millions to the billions to help make your merger, acquisition or divestiture successful and cost effective – every time. Ⅲ Total cases settled or voluntarily dismissed: 71.5% Ⅲ Median time to resolve cases by trial: 611 days Ⅲ Trial outcome rate: 0-3 Ⅲ Total Michigan attorneys, 2012: 181 Attorneys and Counselors for Business Ⅲ Data sample, July 2007-July 2012: 1,324 cases 14. Miller, Canfield, Paddock www.howardandhoward.com | 248.645.1483 and Stone PLC Ⅲ Location: Detroit Ann Arbor, Michigan | Detroit, Michigan | Chicago, Illinois | Peoria, Illinois | Las Vegas, Nevada Ⅲ Median time to: Close all cases: 241.6 days See Next Page 20120730-NEWS--0013-NAT-CCI-CD_-- 7/27/2012 1:37 PM Page 1

July 30, 2012 CRAIN’S DETROIT BUSINESS Page 13 Focus: Law

From Previous Page Ⅲ Total Michigan attorneys, 2012: 55 Ⅲ Total cases settled or voluntarily dismiss: 22% Ⅲ Cases in which firm sought dismissed: 68% Close by summary judgment: 368 days Ⅲ Data sample, July 2007-July 2012: Ⅲ Cases resolved via motion to summary judgment: 13% dismiss: NA Close by case settlement: 273.5 days 66 cases Ⅲ Median time to resolve cases by Ⅲ Cases resolved via summary trial: 615.5 days Ⅲ Cases settled after judgment: 7.6% Ⅲ Cases in which firm sought Ⅲ Trial outcome rate: 5-1 judgment/dismissal denied: NA Ⅲ Cases in which firm filed a motion summary judgment: 10% 18. Howard & Howard Attorneys PLLC Ⅲ Total Michigan attorneys, 2012: 67 Ⅲ Total cases settled or voluntarily to dismiss: 14% Ⅲ Cases resolved via summary Ⅲ Location: Royal Oak dismissed: 82.4% Ⅲ Data sample, July 2007-July 2012: Ⅲ Cases resolved via motion to judgment: 3.8% Ⅲ Median time to: 477 cases Ⅲ Median time to resolve cases by dismiss: 4.5% Ⅲ Cases in which firm filed a motion Close all cases: 257 days trial: N/A Ⅲ Cases settled after to dismiss: 12% Close by summary judgment: 623 days Ⅲ 19. Mika Meyers Beckett & Jones PLC Ⅲ Trial outcome rate: No trial results. judgment/dismissal denied: 0% Cases resolved via motion to Close by case settlement: 243.5 days Ⅲ Ⅲ Total Michigan attorneys, 2012: 36 Ⅲ Total cases settled or voluntarily dismiss: 4.9% Ⅲ Location: Grand Rapids Ⅲ dismissed: 65.2% Ⅲ Cases in which firm sought Ⅲ Median time to Data sample, July 2007-July 2012: Cases settled after summary judgment: 8% 68 cases Ⅲ judgment/dismissal denied: 40% Ⅲ Close all cases: 261 days Median time to resolve cases by Cases resolved via summary Close by summary judgment: NA trial: 738.5 days Ⅲ Total cases settled or voluntarily judgment: 5.6% dismissed: 66.1% Close by case settlement: 246.5 days 20. Smith Haughey Rice & Roegge Ⅲ Trial outcome rate: 1-1 Ⅲ Cases in which firm filed a motion Ⅲ Total Michigan attorneys, 2012: Ⅲ to dismiss: 14% Ⅲ Cases where firm sought summary Ⅲ Location: Grand Rapids Median time to resolve cases by Ⅲ 79 trial: 799 days Ⅲ Cases resolved via motion to judgment: 13% Median time to: Ⅲ Close all cases: 262 days Data sample, July 2007-July 2012: Ⅲ Trial outcome rate: 4 wins, 4 losses dismiss: 3.4% Ⅲ Cases resolved via summary 196 cases Ⅲ Total Michigan attorneys, 2012: 242 Ⅲ Cases settled after judgment: NA Close by summary judgment: 385 days Ⅲ Data sample, July 2007-July 2012: judgment/dismissal denied: 25% Ⅲ Cases where firm filed a motion to Close by case settlement: 228 days See Next Page 1,850 cases 15. Warner Norcross & Judd LLP Ⅲ Location: Grand Rapids Ⅲ Median time to: Close all cases: 244.5 days Close by summary judgment: 388 days Close by case settlement: 233 days Ⅲ Cases in which firm sought summary judgment: 11% Ⅲ Cases resolved via summary judgment: 5.9% Ⅲ Cases in which firm filed a motion to dismiss: 13% Ⅲ Cases resolved via motion to dismiss: 4.2% Ⅲ Cases settled after judgment/dismissal denied: 25% Ⅲ Total cases settled or voluntarily dismissed: 64% Ⅲ Median time to resolve cases by trial: 887 days Ⅲ Trial outcome rate: 1-1 Ⅲ Total Michigan attorneys, 2012: 182 Ⅲ Data sample, July 2007-July 2012: 570 cases 16. Jaffe, Raitt, Heuer & Weiss PC Ⅲ Location: Southfield Ⅲ Median time to: Close all cases: 245 days Close by summary judgment: 519 days Close by case settlement: 254 days Ⅲ Cases in which firm sought summary judgment: 19% Ⅲ Cases resolved via summary judgment: 4.3% Ⅲ Cases in which firm filed a motion to dismiss: 16% Ⅲ Cases resolved via motion to dismiss: 2.2% Ⅲ Cases settled after judgment/dismissal denied: 20% Ⅲ Total cases settled or voluntarily dismissed: 68.1% Ⅲ Median time to resolve cases by trial: 1,128.5 days Ⅲ Trial outcome rate: 1-0 Ⅲ Total Michigan attorneys, 2012: 98 Ⅲ Data sample, July 2007-July 2012: 255 cases

17. Kerr, Russell and Weber PLC Ⅲ Location: Detroit Ⅲ Median time to: Close all cases: 254.5 days Close by summary judgment: 442.5 days Close by case settlement: 330 Ⅲ Cases in which firm sought summary judgment: 18% Ⅲ Cases resolved via summary judgment: 18% Ⅲ Cases in which firm filed a motion to dismiss: 13% Ⅲ Cases resolved via motion to dismiss: NA Ⅲ Cases settled after judgment/dismissal denied: 0% Ⅲ Total cases settled or voluntarily dismissed: 45.5% Ⅲ Median time to resolve cases by trial: NA Ⅲ Trial outcome rate: No trial records. 20120730-NEWS--0014-NAT-CCI-CD_-- 7/27/2012 1:36 PM Page 1

Page 14 CRAIN’S DETROIT BUSINESS July 30, 2012 Focus: Law

From Previous Page trial: 615 days Ⅲ Cases settled after judgment: 6% Close by case settlement: 305 days 21. Foster Swift Collins & Smith PC Ⅲ Trial outcome rate: 1-0 judgment/dismissal denied: 30% Ⅲ Cases in which firm filed a motion Ⅲ Cases in which firm sought Ⅲ Total Michigan attorneys, 2012: 96 Ⅲ Total cases settled or voluntarily to dismiss: 2% summary judgment: 24% Ⅲ Location: Lansing Ⅲ dismissed: 65.8% Ⅲ Cases resolved via motion to Ⅲ Data sample, July 2007-July 2012: Ⅲ Cases resolved via summary Median time to: 283 cases dismiss: 4.5% judgment: 9.7% Close all cases: 280 days Ⅲ Median time to resolve cases by trial: 919 days Ⅲ Cases settled after Ⅲ Cases in which firm filed a motion Close by summary judgment: 209 days judgment/dismissal denied: 0% 22. Brooks Kushman PC Ⅲ Trial outcome rate: 1-2 to dismiss: 11% Close by case settlement: 231 days Ⅲ Total cases settled or voluntarily Ⅲ Location: Southfield Ⅲ Total Michigan attorneys, 2012: 62 Ⅲ Cases resolved via motion to dismissed: 48.5% dismiss: 4.9% Ⅲ Cases in which firm sought Ⅲ Median time to: Ⅲ Data sample, July 2007-July 2012: Ⅲ Ⅲ Cases settled after summary judgment: 14% Close all cases: 286 days 470 cases Median time to resolve cases by Ⅲ trial: 755 days judgment/dismissal denied: 37% Cases resolved via summary Close by summary judgment: 474 days judgment: 7.9% Ⅲ Trial outcome rate: 1-0 Ⅲ Total cases settled or voluntarily Close by case settlement: 265 days 23. Sullivan, Ward, Asher & Patton PC Ⅲ Cases in which firm filed a motion Ⅲ Total Michigan attorneys, 2012: 50 dismissed: 66.9% Ⅲ Location: Southfield to dismiss: 14% Ⅲ Data sample, July 2007-July 2012: Ⅲ Median time to resolve cases by Ⅲ Cases in which firm sought Ⅲ Median time to: Ⅲ Cases resolved via motion to 141 cases trial: 546.5 days summary judgment: 13% Close all cases: 296 days dismiss: 5.9% Ⅲ Ⅲ Trial outcome rate: 12-2 Cases resolved via summary Close by summary judgment: 512 days Ⅲ Cases settled after judgment: 2.9% 24. Plunkett Cooney PC Ⅲ Total Michigan attorneys, 2012: 151 Close by case settlement: 225 days judgment/dismissal denied: 33% Ⅲ Cases in which firm filed a motion Ⅲ Location: Bloomfield Hills Ⅲ Data sample, July 2007-July 2012: Ⅲ Total cases settled or voluntarily to dismiss: 11% Ⅲ Cases in which firm sought Ⅲ Median time to: 1,291 cases dismissed: 71.3% Ⅲ Cases resolved via motion to summary judgment: 14% Close all cases: 306 days Ⅲ Median time to resolve cases by dismiss: 1.7% Ⅲ Cases resolved via summary Close by summary judgment: 437 days 25. Giarmarco Mullins & Horton PC Ⅲ Location: Troy Ⅲ Median time to: Close all cases: 344 days Close by summary judgment: 345 days Close by case settlement: 453.5 days Ⅲ Cases in which firm sought summary judgment: 19% Ⅲ Cases resolved via summary judgment: 5.3% Extraordinary service can point you Ⅲ Cases in which firm filed a motion to dismiss: 7% Ⅲ Cases resolved via motion to dismiss: 3.5% in the right direction. Ⅲ Cases settled after judgment/dismissal denied: 25% Ⅲ Total cases settled or voluntarily dismissed: 77.2% Ⅲ Median time to resolve cases by trial: 133.5 days Ⅲ Trial outcome rate: 2-0. (Federal court trial results only in sample period. Does not include appeals.) You need a problem-solver who’s smart, Ⅲ Total Michigan attorneys, 2012: 70 industrious, resourceful. Someone who, no Ⅲ Data sample, July 2007-July 2012: 142 cases matter how challenging your needs, fulfills 26. Butzel Long PC them quickly. Efficiently. And to your complete Ⅲ Location: Detroit satisfaction. Ⅲ Median time to: Close all cases: 372 days Close by summary judgment: 496 days Now, take that idea and multiply it by nearly Close by case settlement: 379.5 days 400 (the number of lawyers and other Ⅲ Cases in which firm sought summary judgment: 4% professionals who ply their craft at Dykema), Ⅲ Cases resolved via summary 75 (the specialized practice areas in which judgment: 2% Ⅲ Cases in which firm filed a motion they work) and 11 (our offices, coast-to-coast). to dismiss: 28% Ⅲ Cases resolved via motion to That’s the importance Dykema places on dismiss: 2.7% providing exemplary service. To all our clients. Ⅲ Cases settled after judgment/dismissal denied: 2% Each and every day. Ⅲ Total cases settled or voluntarily dismissed: 85.4% Point your business the right way. Engage us. Ⅲ Median time to resolve cases by trial: 258 days Ⅲ Trial outcome rate: 3-3 Ⅲ Total Michigan attorneys, 2012: 111 Ⅲ Data sample, July 2007-July 2012: 1,471 cases 27. Secrest, Wardle, Lynch, Hampton, Truex and Morley PC Ⅲ Location: Farmington Hills Ⅲ Median time to: For more information call Sherrie Farrell, Close all cases: 380.5 days Close by summary judgment: 658 days Office Managing Member, at 313.568.6800 Close by case settlement: 397.5 days or go to www.dykema.com Ⅲ Cases in which firm sought summary judgment: 24% Ⅲ Cases resolved via summary judgment: 7.7% California Ⅲ Illinois Cases in which firm filed a motion to dismiss: 6% Michigan Ⅲ Cases resolved via motion to North Carolina dismiss: 4.6% Texas Ⅲ Cases settled after judgment/dismissal denied: 63% Washington, D.C. Ⅲ Total cases settled or voluntarily dismissed: 64.6% www.dykema.com Exceptional service. Dykema delivers. Ⅲ Median time to resolve cases by trial: 973 days © 2012 Dykema Gossett PLLC Attorney Advertising Ⅲ Trial outcome rate: 0-1 Ⅲ Total Michigan attorneys, 2012: 62 Ⅲ Data sample, July 2007-July 2012: 252 cases 20120730-NEWS--0015-NAT-CCI-CD_-- 7/27/2012 1:36 PM Page 1

July 30, 2012 CRAIN’S DETROIT BUSINESS Page 15

CRAIN'S LIST: LARGEST LAW FIRMS Ranked by number of attorneys in Southeast Michigan

Total local Of Company attorneys Counsel Address June 2012/ Partners Associates June Paralegal Michigan Worldwide Rank Phone; website Top local executive(s) 2011 June 2012 June 2012 2012 June 2012 June 2012 June 2012 Representative clients Honigman Miller Schwartz and Cohn LLP David Foltyn 188 156 32 10 25 218 218 BlackEagle Partners LLC, Detroit Institute of Arts, DTE Energy 2290 First National Building, 660 Woodward Ave., Detroit chairman and CEO 187 Co., General Motors Co., Huron Capital Partners LLC, Ramco- 1. 48226-3506 Gershenson Properties Trust, Rock Financial, Quicken Loans (313) 465-7000; www.honigman.com Inc., Rockbridge Growth Equity LLC, The Taubman Co., Trinity Health Miller, Canfield, Paddock and Stone PLC Michael Hartmann 182 100 40 10 32 242 311 Meritor Inc., Comerica Inc., Chrysler Group LLC, DTE Energy 150 W. Jefferson Ave., Suite 2500, Detroit 48226-4415 CEO 203 Co., Ford Motor Co. and its affiliates, University of Michigan, 2. (313) 963-6420; www.millercanfield.com Valassis Communications Inc.

Dykema Gossett PLLC Peter Kellett 162 94 68 0 15 194 362 Ford Motor Co., General Motors Co., Chrysler Group LLC, 400 Renaissance Center, Detroit 48243 chairman and CEO 154 Compuware, Bank of America N.A., Citizens Bank, Oakwood 3. (313) 568-6800; www.dykema.com Healthcare Inc., Robert Bosch LLC, Fifth Third Bank, International Transmission Co., Masco Corp., eBay Inc. Clark Hill PLC John Hern 150 NA NA NA NA 181 227 NA 500 Woodward Ave., Suite 3500, Detroit 48226 CEO 150 4. (313) 965-8300; www.clarkhill.com

Dickinson Wright PLLC William Burgess 148 96 47 26 11 202 276 J.P. Morgan Chase & Co., Federal-MogulCorp., Ford Motor Co., 500 Woodward Ave., Suite 4000, Detroit 48226 CEO NA AT&T, Magna International Inc., MGM Mirage, Kellogg Co., 5. (313) 223-3500; www.dickinsonwright.com Enbridge Inc., Visteon Corp., Carhartt Inc., Beaumont Health System, Lacks Enterprises Inc. Bodman PLC Ralph McDowell 130 90 40 18 18 134 134 Comerica Inc., Bank of America N.A., Archdiocese of Detroit, Sixth floor at Ford Field, 1901 St. Antoine St., Detroit 48226 chairman 123 Ford family, Lear Corp., Freudenberg-NOK Sealing 6. (313) 259-7777; www.bodmanlaw.com Technologies, Pulte Group Inc., Caraco Pharmaceutical Laboratories Ltd., Blue Cross Blue Shield of Michigan, Detroit Medical Center Plunkett Cooney PC Henry Cooney 107 59 48 4 17 147 159 Bank of America N.A., Huntington National Bank, First 38505 Woodward Ave., Suite 2000, Bloomfield Hills 48304 president and CEO 115 American Title Insurance Co., Beaumont Health System, Liberty 7. (248) 901-4000; www.plunkettcooney.com Mutual Insurance, Michigan Municipal League, PNC Financial Services Group, The Travelers Cos., Frankenmuth Mutual Insurance Co. Butzel Long PC Justin Klimko 99 75 24 21 17 102 113 Beaumont Health System, University of Michigan, Oakland 150 W. Jefferson Ave., Suite 100, Detroit 48226 president and managing 97 Community College, MGM Grand Detroit, Citizens Bank, 8. (313) 225-7000; www.butzel.com shareholder Owens Corning, Casio America Inc., Diplomat Pharmacy Inc.

Jaffe, Raitt, Heuer & Weiss PC Bill Sider 98 81 17 7 16 98 98 Sun Communities Inc., Belfor USA Group Inc., Strength Capital 27777 Franklin Road, Suite 2500, Southfield 48034-8214 CEO and managing NA Partners, The Fisher Group LLC, Oppenheimer & Co. Inc. 9. (248) 351-3000; www.jaffelaw.com partner

Trott & Trott PC Executive committee 95 7 88 0 290 97 97 Bank of America N.A., J.P. Morgan Chase & Co., OneMain 31440 Northwestern Hwy., Suite 200, Farmington Hills 48334 90 Financial, Wells Fargo, Comerica Inc. 10. (248) 642-2515; www.trottlaw.com

Kitch Drutchas Wagner Valitutti & Sherbrook PC Ronald Wagner 78 43 35 3 12 86 93 Ascension Health, Chartis Insurance, Coverys, CVS Caremark, 1 Woodward Ave., Suite 2400, Detroit 48226-5485 managing principal 83 Detroit Medical Center, Manor Care Inc., Henry Ford Health 11. (313) 965-7900; www.kitch.com System, Motor City Electric Co., Utica Insurance

Giarmarco, Mullins & Horton PC Executive committee 70 B 32 B 38 B NA NA 70 B 70 B NA 101 W. Big Beaver Road, 10th floor Columbia Center, Troy 70 C 12. 48084-5280 (248) 457-7000; www.gmhlaw.com Howard & Howard Attorneys PLLC Mark Davis 68 51 17 6 11 68 113 BASF Corp., Chrysler Group LLC, Dow Corning, Fifth Third 450 W. Fourth St., Royal Oak 48067 president and CEO 66 Bank, KISS, Konami Gaming Inc., Magna Mirrors of America 13. (248) 645-1483; www.howardandhoward.com Inc., Sears Holdings Corp., ThyssenKrupp

Harness, Dickey & Pierce PLC Executive committee 67 49 18 3 5 70 108 NA 5445 Corporate Drive, Suite 200, Troy 48098 72 14. (248) 641-1600; www.hdp.com

Garan Lucow Miller PC Roger Smith 63 45 18 3 9 86 86 NA 1000 Woodbridge Place, Detroit 48207 chairman of executive 56 15. (313) 446-1530; www.garanlucow.com committee

Brooks Kushman PC James Kushman 62 30 32 0 30 62 64 Ford Motor Co., Lear Corp., Oracle Corp., Masco Corp., 1000 Town Center, 22nd floor, Southfield 48075 chairman and CEO 64 HoMedics Inc. 16. (248) 358-4400; www.brookskushman.com Mark Cantor president Secrest, Wardle, Lynch, Hampton, Truex and Mark Morley 57 41 16 4 6 68 68 Chartis Insurance, AT&T Corp., Auto-Owners Insurance, Eaton Bruce Truex 56 Corp., Zurich North America, The Hartford, State Farm, 17. Morley PC co-chairmen, executive Progressive Insurance Co., QBE Insurance Co., Frankenmuth 2600 Troy Center Drive, PO Box 5025, Troy 48007-5025 committee Mutual (248) 851-9500; www.secrestwardle.com Kerr, Russell and Weber PLC Executive committee 54 34 20 4 3 54 54 Wade Trim Associates Inc., Microsoft Corp., Michigan State 500 Woodward Ave., Suite 2500, Detroit 48226 55 Medical Society, Volkswagen Group of America, Quantum Fuel 18. (313) 961-0200; www.kerr-russell.com Systems Technologies, Textron Inc.

Maddin, Hauser, Wartell, Roth & Heller PC Mark Hauser, CFO 51 36 15 0 7 51 51 Fifth Third Bank, Huntington National Bank, Bank of America, 28400 Northwestern Hwy., Southfield 48034-1839 Michael Maddin, 51 The Kroger Co., Garden Fresh Salsa Co. Inc., CNA Insurance 19. (248) 354-4030; www.maddinhauser.com president emeritus Co., Zurich North America, The Hartford, Chartis Insurance, Steven Sallen, president Fidelity National Title Group, Aurora Home Loan Services LLC Sullivan, Ward, Asher & Patton PC Anthony Asher 50 B 29 B 21 B NA 4 B 50 B 50 B Consumers Energy Co., city of Pontiac police and fire, Health 25800 Northwestern Hwy., 1000 Maccabees Center, Southfield president and CEO 50 C Pro/CNA Insurance Co., Iron Workers' Local No. 25, Medical 20. 48075-8412 Protective Co., Michigan Educational Employees Mutual, (248) 746-0700; www.swappc.com Smithgroup Inc., Universal American Corp., University of Michigan, Beaumont Health System Dawda, Mann, Mulcahy & Sadler PLC Edward Dawda 35 27 8 3 5 35 35 NA 39533 Woodward Ave., Suite 200, Bloomfield Hills 48304 Curtis Mann 34 (248) 642-3700; www.dawdamann.com William Rosin 21. Michael Mulcahy Wayne Segal managing partners Kotz Sangster Wysocki PC Gregory Wysocki 34 B NA NA NA NA 34 B 34 B NA 400 Renaissance Center, Suite 3400, Detroit 48243-1675 CEO and managing 33 C 22. (313) 259-8300; www.kotzsangster.com partner

This list is an approximate compilation of the largest law firms in Wayne, Oakland, Macomb, Washtenaw and Livingston counties. Total number of attorneys does not include "of counsel." It is not a complete listing but the most comprehensive available. Information was provided by the law firms or gathered from their websites. Firms with headquarters elsewhere are listed with the address and top executive of their main Detroit-area office. NA = not available. B As of Jan. 1, 2012. C As of Jan. 1, 2011. LIST RESEARCHED BY BRIANNA REILLY 20120730-NEWS--0016-NAT-CCI-CD_-- 7/27/2012 11:11 AM Page 1

Page 16 CRAIN’S DETROIT BUSINESS July 30, 2012 Job Front PEOPLE

ARCHITECTURE INFORMATION TECHNOLOGY Mark McComb to IN THE SPOTLIGHT Deniella Ortiz- Lalain to director financial manag- Autism Alliance of Michigan, er, Orchard Hiltz & of communica- Detroit, has named Colleen Allen tions, OpTech McCliment Inc., president and Livonia, from LLC, Troy, from CEO. She manager of busi- controller, Inland succeeds Waters Pollution ness development Susan Fenters- and management Control Services Lerch, who now systems. LLC, Detroit. is corporate Kevin Dacey to ex- EDUCATION director of ecutive vice presi- development dent, Kyyba Inc., McComb Dondi Cupp to as- for Hospice of Farmington Hills, Ortiz-Lalain sociate vice presi- Michigan Inc. from executive dent, office of university develop- Allen, 46, had vice president, Synova Inc., Troy. ment, University of Michigan, Ann been interim Arbor, from assistant vice president Allen CEO since LAW for advancement with corporate and March 2011 while also employed Eric Lipsitt to foundation relations and constituency by Henry Ford Health System, shareholder, Dean programs, University of Washington, where she founded and was & Fulkerson PC, Seattle. director of the Center for Autism Troy, from partner, Howard & FINANCE and Developmental Disabilities, Department of Pediatrics. Howard Attorneys Laurie Horvath to PLLC, Royal Oak. THE MILLER LAW FIRM She continues to serve as an not-for-profit di- adjunct faculty member at Wayne a professional corporation rector, Baker Tilly MANUFACTURING State University and part-time Virchow Krause Tom Dawda to di- LLP, Southfield, instructor at Oakland University, and recently was appointed by Gov. rector of service, from senior man- Schuler Inc., Can- ager and techni- Rick Snyder to chair the new Lipsitt ton Township, cal specialist, Do- Michigan Autism Council, a division from program manager, Linamar eren Mayhew & of the state Department of McLaren Performance, Southfield. Co. PC, Troy. Community Health. Also, Ken Setze to sales and product Alan Gallatin to Allen earned a bachelor of arts manager for forging technologies, tax practice degree in psychology from the from sales manager, forging technical Horvath leader, Grant University of Michigan, a master of services, Bliss Clearing Niagara Tech- Thornton LLP, science degree in nical Services, Hastings. Southfield, from tax partner, New speech/language pathology from York and New Jersey offices. Boston University and a Ph.D. in MARKETING Mary Nichols to vice president and se- speech/language pathology from Ken Suminski to senior art director, Our firm specializes in litigation: nior relationship manager, wealth Wayne State University. J.R. Thompson Co., Farmington Hills, management group, PNC Financial from senior art director, Latcha and • Complex Commercial and Business Services Group Inc., Troy, from rela- Associates, Farmington Hills. gional Medical Center, Plantation, tionship manager, wealth manage- • Shareholder and Partnership Fla. Andrew Heller to senior director, ment group, JP Morgan Chase, Bloom- health care practice, Lambert Edwards • Automotive Supplier field Hills. Carol Reed, M.D., to senior vice presi- & Associates, Detroit, from director of dent of clinical and regulatory affairs, • Class Actions Dave Chen to partner, international media, communications and social tax, PricewaterhouseCoopers LLP, De- Synthetic Biologics Inc., Ann Arbor, media, Early Childhood Investment • Employment troit, from director, international tax. from chief medical officer, Clinical Corp., Lansing. Data Inc., New Haven, Conn. • Family Law and Probate Litigation Also, Mike Sobolewski to assurance partner, private company services, Constance O’Malley to vice president (248) 841-2200 from director, private company ser- and COO, Beaumont Hospital, Troy, PEOPLE GUIDELINES 950 West University Drive, Suite 300 millerlawpc.com vices; and Jon Nelson to partner, capi- from vice president of surgical ser- Rochester, Michigan 48307 tal markets and accounting advisory Announcements are limited to vices, trauma, transplant and ambula- management positions. Send services, from director, markets and tory services, Beaumont Hospital, accounting advisory services. submissions to Departments, Royal Oak, and Beaumont Medical Crain’s Detroit Business, 1155 Center, West Bloomfield Township. Gratiot Ave., Detroit, MI 48207- HEALTH CARE Also, Debra Guido-Allen to vice presi- 2997, or send e-mail to Michelle Bryant to dent and chief nursing officer, from director of quality vice president of nursing and nursing [email protected]. management and support services. Releases must contain the person’s patient safety, name, new title, company, city in Wayne State Uni- HOSPITALITY which the person will work, former versity Physician title, former company (if not Group, Detroit, Glynn Knight to general manager, promoted from within) and former from vice presi- Auburn Hills Marriott Pontiac, White city in which the person worked. dent of regulatory Lodging Services Corp., Pontiac, from Photos are welcome, but we cannot compliance, Qual- general manager, Marriott Richmond, guarantee they will be used. CATERING Bryant ity Westside Re- Richmond, Va.

“The Pig Roast was a big hit and great end to the day. Nothing but smiles from VETERANS CALENDAR ear to ear. Way beyond our expectations.” Job training assistance for unemployed veterans - Philip Shelton - Tournament Director U.S. Amateur Disc Golf Championship The Veterans Retraining Assis- benefit program, not in receipt of tance equal to the monthly full- tance Program is accepting applica- VA compensation due to unem- time payment rate under the tions from unemployed veterans ployability, and not enrolled in a Montgomery GI Bill–Active Duty Catering Food Service Management on a first-come, first-served basis federal or state job training pro- program (currently $1,473 per for up to 12 months of training for gram. month.) DOL will offer employ- Celebrating more than 30 years of in-demand jobs. The program is limited to 45,000 ment assistance to every veteran Applicants must be at least 35 participants from July 1 through who participates upon completion spectacular events. but no more than 60 years old, un- September 30 and 54,000 partici- of the program. employed, received an other than pants from Oct. 1, 2012, through For more information, visit 248.608.0690 dishonorable discharge, not be eli- March 31, 2014. Participants may http://benefits.va.gov/vow/educa- gible for any other VA education receive up to 12 months of assis- tion.htm 20120730-NEWS--0017-NAT-CCI-CD_-- 7/27/2012 5:16 PM Page 1

July 30, 2012 CRAIN’S DETROIT BUSINESS Page 17

CALENDAR MARKET REAL PLACE discount on first year’s membership. ESTATE TUESDAY FRIDAY Contact: Leslie Smith, (248) 353-0735, JULY 31 AUG. 3 ext. 152; email: [email protected]; web- BUSINESSES FOR SALE ANNOUNCEMENTS site: www.esd.org. Mobile Moves Michigan Wireless Startup Soup. 5:30-11 p.m. TechTown, Multi-Franchise Motorsports Dealership For Sale. Dream Cruise Special - Woodward @ 13 Mile Technology Exposition. 8:30 a.m.-7 p.m. Detroit Soup, Huntington Bank, Hen- Ground Vehicle Systems Engineering Located in Southeastern Michigan. Serious Inquiries Mobile Technology Association of nessey Capital. Local entrepreneurs Only. For more info, contact us by email at Lease 17,000 square foot facility to host your and Technology Symposium. 8 a.m.-5 [email protected] Reference # box 10057 corporate event during next month’s Dream Michigan. MotorCity Casino Hotel, will pitch their businesses for a p.m. Aug. 14-16. National Defense In- in subject line. Cruise. Plenty of onsite parking, air Detroit. Free. Additional Wireless chance to win more than $1,500 and dustrial Association, Michigan chap- business training at Startup Soup. conditioning, outdoor picnic area. Technology Symposium same hours, ter. With Dale Ormond, director, U.S. $5 at the door. Contact: Diane Love-Su- BUSINESS OPPORTUNITIES Contact Randy Beattie @ Village Automotive open by invitation only to businesses, Army, Research, Development and [email protected] vada, (313) 483-1302; email: Engineering Command; and Maj. Gen. (248) 549-5300 / government leaders and educators, Well established small business in operation for 20 [email protected]; website: Nickolas Justice, assistant military years, is looking for working investment partner. but invitations can be requested on techtownwsu.org/startup-soup. deputy, Office of the Assistant Secre- Shuttle & Sedan Service. Grossing 7 figures. the association website. Sign-in 7:30 tary of the Army (Acquisition, Logis- Contact: [email protected] a.m. $99 MTAM members, $129 non- tics and Technology). Troy Marriott. The Crain’s reader: members. Email: info@GoMo- COMING EVENTS Main session $340, five separate mini- symposia $340 per session. Contact: -- Partner Wanted -- bileMichigan.org; website: www.mo- FastTrac NewVenture. 6-9 p.m. Aug. 7. 26.5% influence the bilemovesmichigan.com. Beth Galihar, (586) 838-2296; email: Michigan Small Business & Technolo- [email protected]; website: purchase of office/industrial gy Development Center. A 10-week www.ndia-mich.org. and commercial space. Legal and Financial Basics for Small program written by entrepreneurs. MI-SBTDC at TechTown, Detroit. $140 Business. 9 a.m.-noon. Witzke Berry Help them find you by with scholarship. Contact: Brian ESD Affiliate Council Meeting. 5:30- Crain’s Carter & Wander PLLC. Provides an King, (313) 967-9295; email: 7:30 p.m. Aug. 15. The Engineering So- advertising in Real understanding of the key legal and fi- [email protected]; website: ciety of Detroit. ESD headquarters, Estate section. nancial considerations when starting www.misbtdc.net. Southfield. Contact: Elana Shelef, Partner wanted for a 9 place corporate and operating a business in Michigan. (248) 353-0735 ext. 119; email: es- jet based Detroit City Airport. Detroit [email protected]; website: www.esd.org. 313.446.6068 • FAX: 313.446.1757 Oakland County Business Center, Wa- to New York 1 hr, to West Palm Beach Crain’s Women: Profiles in Power. 5:30- 2:30. Great for business and pleasure. E-Mail: [email protected] terford Township. Free. Contact: 9 p.m. Aug. 8. Crain’s Detroit Business. Karen Deaver-Lear, (248) 858-0783; These 11 game-changing women have Mixin’ it up in the Motor City. 3-5 p.m. All inquires please contact Charles email: [email protected]; shown how to break out of the box into Aug. 20. The Adcraft Club of Detroit, Chase for details (313)610-4120 Detroit Radio Advertising Group and website: www.oakgov.com. impactful careers — and have shared lessons they’ve learned along the way. broadcasters from across the state. The Henry Ford, Dearborn. $50 cur- Amnesia Lounge, MotorCity Casino OFFICE FURNITURE rent CDB subscriber, $45 groups of 10 Hotel, Detroit. Free networking op- WEDNESDAY or more or SBAM members, $75 non- portunity. Contact: Jennifer Preslar, Contemporary Private Office Furniture available. AUG. 1 subscriber, $74.50 special CDB sub- (517) 484-7444; email: Also Aeron Style Chairs, Secretarial chairs & task [email protected]; website: chairs. Starting at $59. Please call (734) 266-3200 scription offer. Contact: (313) 446-0300; for more information. Michigan. Selling Smart Workshop Series – website: crainsdetroit.com/events. www.adcraft.org. Pitching Your Business to Make Im- Call or email today for information pact. 9-11 a.m. Ann Arbor Spark. With Team SBA Financing Roundtable. 9 Business Leader of the Year. 6-9 p.m. Marisa Smith, president and founder, a.m.-noon. Aug. 9. Oakland County Aug. 22. Harvard Business School on a custom advertising plan! The Whole Brain Group; Megan Tor- Business Center. A loan orientation Club of Michigan. Honoring Nancy rance, president and CEO, Torrance conducted by a business banker, a Schlichting, CEO, Henry Ford Health [email protected] Learning; and Joe Marr, president and business consultant from the Small System. The Atheneum, Detroit. $125. 313.446.6068 Contact: Maria Chasins or Barbara CEO, Sandler Training Ann Arbor. Business Association’s network of Small Business Development Centers Fornasiero, (248) 651-7536; email: Spark Central, Ann Arbor. Free; regis- and an SBA representative. Oakland [email protected]; website: www.hbs- tration required. Contact: (734) 372- County Business Center, Waterford mi.org. 4071; email: Township. Free. Contact: Karen Lear, [email protected]; website: (248) 858-0783; email: Business Card Exchange. 5:30-8:30 JOB FRONT www.annarborusa.org. [email protected]; website: p.m. Aug. 22. Anchor Bay, Detroit www.advantageoakland.com. Metro Convention & Visitors Bureau, Summer in the D. 6:30-9 p.m. Adcraft Sterling Heights Regional Chamber of MANAGEMENT Call Us For Personalized Club. Scenic river tour, DJ, cash bar. Advanced Negotiation Skill Building. 9 Commerce, MacRay Harbor Banquet Service: (313) 446-6068 $40, ticket includes cruise, food, a.m.-4:30 p.m. Aug. 14. Engineering Center, and DTE Energy. MacRay ***CITY MANAGER*** Society of Detroit. Learn about com- Harbor Banquet Center, Harrison beer/wine/pop; proceeds benefit Ad- The seven member City Council for the City of CLOSING TIMES: Monday 3 p.m., plex multiparty transactions based on Township. $10 chamber and DMCVB one week prior to publication date. craft Foundation Scholarship Fund. Troy Michigan seeks its next CITY MANAGER. U.S. and international case studies. members; $25 others. Contact: Linda Please call us for holiday closing times. Diamond Jack Riverboat, Stroh River Compensation very competitive, with excellent ESD headquarters, Southfield. $75 Colton, (586) 731-5400, ext. 20; email: FAX: (313) 446-1757 Place, Detroit. Website: www.ad- benefits. Budget of $131M, & 319 FT employ- ESD members; $99 nonmembers; $158 [email protected]; website: ees. Prefer graduate degree in public or busi- E-MAIL: [email protected] craft.org. to attend and join ESD at a 50 percent www.shrcci.com. ness administration or related field & 7 yrs as INTERNET: executive in similar municipality, private sec- www.crainsdetroit.com/section/classifieds tor, or military. Resume, cover letter & salary Confidential Reply Boxes Available history by August 10, 2012 to Phillip Robert- PAYMENT: All classified ads must be son, The Mercer Group, 3443 Highway 39 prepaid. Checks, money order or North, Louisburg, N.C. 27549. Electronic sub- Crain’s credit approval accepted. mission of application materials strongly prefer- Credit cards accepted. BUSINESS DIARY red. [email protected] Confidentiality must See be explicitly requested if desired. Crainsdetroit.com/Section/Classifieds CONTRACTS er of the HyperWorks computer-aided www.gibbsamphibians.com. Detailed Position Profile at engineering software suite, an- for more classified advertisements , Detroit, has been select- www.mercergroupinc.com. Ally Financial nounced that Intelligence Business ed by Forest River Inc., Elkhart, Ind., NEW PRODUCTS Solutions, Tokyo, a business consult- POSITIONS AVAILABLE an RV manufacturer, to be an addi- ing and process solutions provider, The Gale Group Inc., Farmington Hills, tional provider for dealer inventory fi- will become a reseller and implemen- a publisher of research and reference nancing in the U.S. tation partner for Altair’s HiQube resources, announced Classroom in C & B Machinery, Livonia, has been business analytics technology, inte- Context, a curriculum-based family of contracted by Hypro Inc., Waterford, grating HiQube as part of its offerings resources designed to supplement textbooks and enhance learning with REFERRERS: EARN A Wis., a company focusing on machin- to companies throughout Japan. authoritative, media-rich content ing, manufacturing and assembly of Berline, Bloomfield Hills, has been se- from Gale’s In Context product suite. components and complex parts, to lected by Buffalo Wild Wings, Colum- Website: www.gale.cengage.com. provide a turnkey double disc grind- bus, Ohio, to be its advertising agency ing cell. of record. NEW SERVICES MWW Automotive Group, Howell, a global design, engineering and manu- EXPANSIONS Ann Arbor Spark began collaborating facturing firm, announced that it has with JetCo Solutions, Grand Rapids, Yoga Shelter, West Bloomfield Town- to make government contracting as- CASH BONUS begun production of three Mazda MX- 5 Aero components for Mazda North ship, opened Yoga Shelter Midtown at sistance available, at no cost, to com- America, Irvine, Calif. 69 W. Forest, Detroit. Website: panies in the region. Specifically de- www.yogashelter.com. signed to help second-stage up to $4,000 when a hire is made Detroit Medical Center and Henry Ford Faurecia, Nanterre, France, an auto- companies, JetCo, a firm that special- Health System, Detroit, have agreed to izes in helping clients find and win long-term distribution agreements motive supplier, began operations in Saline after its acquisition of the inte- government contracts for their prod- with Cardinal Health, enabling the ucts or services, will provide consulta- company to relocate a medical prod- rior trim components business from Automotive Components Holdings tion, analysis and recommendations ucts distribution center to Detroit’s designed to increase government busi- LLC. Faurecia also announced that it Midtown area from its current Romu- ness and sales. Telephone: (734) 761- is establishing a lus locations. The transfer will bring Faurecia Interior Sys- 9317. Website: www.annarborusa.org. 140 jobs to Detroit. tems customer center at 26555 Ever- green Road, Southfield. Website: iRule LLC, Detroit, has released ver- Gardner-White Furniture, Warren, has sion 1.3 of its cloud-based remote con- www.faurecia.com. signed a multiyear renewal agree- trol system for Android. Website: ment with Alliance Data Systems www.iruleathome.com. |JOB FRONT NAME CHANGES Corp., Dallas, so Alliance will contin- Webahn Inc., Lathrup Village, an- ue providing its marketing-driven pri- Gibbs Technologies Inc., Auburn nounced the release of Accent HD, an crainsdetroit.com/jobfront vate-label credit card program for Hills, an amphibian vehicle manufac- iPad app for medical dictation with re- Gardner-White customers. turer, has changed its name to Gibbs port management features. Website: Altair Engineering Inc., Troy, develop- Sports Amphibians Inc. Website: www.webahn.com. 20120730-NEWS--0018-NAT-CCI-CD_-- 7/27/2012 6:52 PM Page 1

Page 18 CRAIN’S DETROIT BUSINESS July 30, 2012 Pontiac picks firm to demolish Phoenix Center; neighbors seek delay

BY RYAN KELLY vocating for the demolition of the the most extensive of the propos- ability to draw tenants to the disuse. SPECIAL TO CRAIN’S DETROIT BUSINESS 1.25 million-square-foot structure als. 400,000 square feet of office space. Schimmel’s office determined in downtown Pontiac, would not Last week, the Oakland County Steven Sallen, the lead attorney that over the next 10 years, with The city of Pontiac confirmed confirm Adamo was chosen, but he Commission voted to allow Ponti- representing the building owners, necessary repairs in addition to Friday that it has chosen a demoli- did say the company with the win- ac to tear down the Phoenix, a day said his clients want to understand the maintenance, the cost to the tion firm to tear down the Phoenix ning bid has been notified. after Southfield-based Maddin, more about the post-demolition city would be $8.5 million. Center. Meanwhile, the owners of The three other bidders on the Hauser, Wartell, Roth & Heller PC plan. “I have no idea what is going Oakland County owns the cen- two attached office towers have proposals — Dore & Associates Con- asked a judge to issue an injunc- to be left besides a hole in the ter and leases it to the city of Ponti- asked for a hold on the tear-down tracting Inc. of Bay City, STE Con- tion against the demolition on be- ground,” he said. ac, which is why Pontiac needed because of concerns over the ef- struction Services Inc. of Mount half of the owners of the Ottawa The three-story Phoenix Center permission from the county to de- fects on their buildings. Clemens and Sabre Demolition Corp. Towers office buildings: Michigan- has served for decades as a park- molish it. Detroit-based Adamo Group was of New York — said on Friday they based Ottawa Tower II LLC and Cali- ing garage, with the top level often The only revenue stream it informed it is the “presumed win- had not been contacted by the city fornia-based North Bay Drywall Inc. used to host concerts, including now has, said Robert Daddow, ner” for the demolition contract, since early July. Profit Sharing Plan and Trust. those for Arts, Beats & Eats, until deputy Oakland County executive, said CEO John Adamo Jr. There were four separate re- The Ottawa Towers owners are the festival moved to Royal Oak is the $30,000 to $40,000 a year it Pontiac’s emergency manager quests for proposals; Adamo’s bid concerned the demolition, with no two years ago. draws from the 200 to 300 daily Louis Schimmel, who has been ad- of $2.03 million was the lowest on follow-up plan, will hamper their The center has since fallen into parkers.

Anderson: Recession to renewables, CEO sticks to growth plan ■ From Page 1 2009 to avoid layoffs. steadily increased to $8.56 billion that was excellent.” supply up to half of that power and derson said the 25 percent renew- “We thought if we could get ex- in 2010 and $8.9 billion in 2011, but Anderson said the financial contract with third-party produc- able goal will be Michigan’s ener- penses down to revenue we would still below the pre-recession high community has given DTE credit ers for the rest. About 90 percent gy policy for decades. be OK,” Earley said. “We were of $9.33 billion in 2008. for reducing costs, but “the cus- the additional power will come “We won’t be able to afford to do worried because if we didn’t get “Gerry has performed very, tomers only see rate increases. from wind, with the remaining anything more,” said Anderson, there, we would very well,” said They don’t understand the scale amount from solar, landfill gas noting that the company wouldn’t have to take quick Eugene Miller, a of our investments,” Anderson and other biomass energy produc- be able to afford to add additional action. We didn’t We didn’t want to 20-year DTE said. tion. or replacement gas, coal or nu- want to take a “ board veteran According to SNL Financial, a “In the 1970s and 1980s we made clear plants. meat ax take a meat and former chair- Charlotte-based information con- significant capital investments in “We will be locked in (to renew- and start man and CEO of sulting firm, DTE cut non-fuel op- building coal and nuclear power able energy). This will raise our chopping ax and start Comerica Bank. erating and maintenance expenses plants,” Anderson said. “We are in rates more than other states. It is things.” “We miss Tony, by 1 percent from 2007 to 2011 — a big phase now that is driven by not fair to business and residential Over chopping but there was the only utility to cut expenses renewables and regulations.” customers,” Anderson said. five years, never any ques- during that period. Anderson said DTE is investing Environmentalists want DTE DTE cut things. tion Gerry would For 24 surveyed utilities, the in renewable energy, primarily and other utilities to increase re- expenses ” do the job. He has companies averaged 24 percent wind power, “because society says liance on renewable energy, which by more Anthony Earley Jr., former met expectations expense increase during that peri- to you provide power in a better Anderson said he favors in princi- than $500 DTE Energy Co. CEO in every area.” od, SNL said. DTE officials said and clearer way.” ple, “but you can’t turn a blind eye million by DTE’s stock the company averaged a 23 per- But DTE also has been spending to costs.” using lean engineering-type prac- price was trading at $62.08 per cent expense increase from 2002 to a large amount on emission con- Anderson said he hopes DTE tices, benchmarking processes, share on Friday, a 52-week high, 2007. trols to meet U.S. Environmental Pol- will continue to invest in renew- improving efficiencies and reduc- compared with $48.19 per share in Michael Worms, managing di- lution Agency regulations and re- able energy beyond the 10 percent ing the workforce only through at- September 2010, when Anderson rector of research with New York- duce toxic gasses being released requirement by 2015. trition. officially became CEO. based BMO Capital Markets, said into the atmosphere, primarily “We just need the right mix of “We would be in serious trouble Miller said DTE’s success in re- DTE has performed exceptionally mercury. power,” he said. if we hadn’t taken those steps,” bounding after the economic the past four years for two prima- “By the time we are done (at the As DTE continues to diversify Anderson said. “We did it all with- downturn was primarily attrib- ry reasons. Monroe power plant), the emission its business interests and move to- out layoffs. We (told employees) we uted to the continuous improve- “The regulatory and political en- levels will be 10 percent to 15 per- ward using more natural gas, An- will never fire you by making this ment program that Earley and An- vironment in Michigan has helped cent below the level they were at 20 derson said DTE is expanding its company more productive.” derson put in place. support DTE’s growth with a bal- years ago,” Anderson said. “These natural gas storage and pipeline By cutting non-fuel expense in- “Every so often corporations ance of rate making and legisla- are incredible reductions, and we business in the Marcellus Shale creases by 1 percent annually for should remake themselves and im- tion in 2008 that was enacted to will get to 95 percent of emissions formation in upper New York the past five years and with a 23 prove things,” Miller said. “Many support renewable energy and an by 2015.” state. About 25 percent of DTE’s percent cumulative increase in in- companies do it more as a flavor of energy efficiency program,” Anderson said DTE also needs business is outside Michigan, industrial electric demand in 2010 the month. DTE management had Worms said. to invest to improve its electrical cluding pipelines, energy projects and 2011, DTE’s revenue has a real commitment. The timing of Part of the 2008 energy legisla- distribution system to reduce the and power plants. tion also allows DTE to imple- frequency of electric outages and “We have a big shale area for ment rate increase requests made replace its cast iron mains that gas (in New York) that is right on to the Michigan Public Service Com- carry natural gas. top of our pipeline,” Anderson mission if the commission hasn’t “The business community needs said. “We are spending $300 mil- issued an order within 180 days, competitive and affordable power. lion for a lateral pipeline to get Worms said. Once the commis- Low income people need afford- more gas.” sion issues a rate order, the utility able energy. These are different Anderson said the use of hy- may be required to issue refunds policy considerations that we draulic fracturing to dislodge gas if the rate increase is higher than must prepare for,” Anderson said. from shale formations 1.5 miles be- approved. “My job is to fight hard to keep low the earth’s surface does not “On the non-regulated side (di- the state’s energy affordable,” he concern him. versified businesses), the company said. “We have been using hydraulic has done a good job in identifying fracturing for 25 years in Michi- in areas that help support the gan and there haven’t been any is- growth of the company,” Worms Renewables sues,” Anderson said. “It can and said. While Anderson said he favors should be done safely with appro- Michigan’s decision to require priate regulations it can be done utility companies to produce 10 safely.” Capital improvements percent of their power through re- Anderson said he favors com- Another major initiative Ander- newable energy, he opposes the plete transparency by gas compa- son has continued as CEO is DTE’s Nov. 6 ballot initiative to increase nies to list all chemical fluids they $2 billion annual capital invest- the renewable standard to 25 per- use to extract the gas. ment program. cent by 2025. “Texas just required disclosure. In 2007, DTE began a 10-year “My first reaction was we We need transparency and good spending program to upgrade its should not be changing our consti- regulations to alleviate public con- aging power plants, improve its tution by the ballot. When you use cerns,” he said. “If we need to add pollution controls and add 1,000 the constitution to toy around with (electrical) capacity, the best op- megawatts of renewable energy, or policy, like California has done, tion right now is gas.” 10 percent of its total power, by you run into problems,” Anderson Jay Greene: (313) 446-0325, 2015. said. [email protected]. Twitter: DTE plans to own facilities to If the initiative is approved, An- @jaybgreene 20120730-NEWS--0019-NAT-CCI-CD_-- 7/27/2012 6:51 PM Page 1

July 30, 2012 CRAIN’S DETROIT BUSINESS Page 19 Durant: Senate candidate under fire over salary Citizens Republic ■ From Page 1 posts best quarter about a California town, deeply in debt, that hired a city manager from the private sector. The new Election hopefuls tout practical experience in its history manager was paid $225,000 a year; BY TOM HENDERSON the previous city manager had BY DUSTIN WALSH Aug. 7 Senate Republican primary Townsend said. “In government, been paid $45,000. CRAIN’S DETROIT BUSINESS CRAIN’S DETROIT BUSINESS against former Rep. Peter Hoek- you don’t have the fundamental “The press went wild — ‘Can’t stra and former Kent County agreement on what the goal is and Flint-based Citizens Republic you get someone With hopes of changing the sta- judge Randy Hekman. The three there are such radically different Bancorp Inc. reported its fifth between $225,000 tus quo, several Michigan busi- are competing to take on incum- beliefs about the government’s straight quarterly profit — and and $45,000?’ ” ness leaders and private sector bent Debbie Stabenow in the Nov. role. If they win, that’s the prob- Pulte said. “But the best quarter in the bank’s executives are vying for seats in 6 election. Stabenow is uncontest- lem they are going to inevitably history — after the close of this article I was the state’s primary and general ed in the field of Democrats. run into.” reading was markets Thursday. elections. Karen Jacobsen, co-owner and Townsend is running uncon- The bank had net income of three years in. Experts agree business experi- personnel manager for Livonia- tested in the 27th Congressional Instead of $50 $297.1 million, or $7.35 a share, ence can be good for government based supplier Jacobsen Industries District Democratic primary. In for the quarter that ended June million in debt, work, but with a projected low vot- Inc., said she decided to run for the general election, he will face they had $40 mil- 30, compared with net income er turnout this year, will it matter? state representative after Con- the winner of the Republican pri- of $18.5 million, or 46 cents a lion in the bank. Terence Thomas, co-founder of Pulte gress passed the Patient Protec- mary between Mark Bliss, ac- share, for the same quarter last They were try- Detroit-based public sector coun- tion and Affordable Care Act. Ja- count manager at Troy-based IT year. ing to figure out how to keep him. seling firm Thomas Group Consulting cobsen is running in the 12th firm iDashboards, and retired For the first six months, Citi- “I realized (Durant) was that Inc., said the higher- and lower- Congressional District Republi- teacher William Sayre. zens Republic (Nasdaq: CRBC) man for the Detroit school system.” profile slots on the ballot with can primary against Cynthia But it’s often difficult for busi- had net income of $316 million, Critics allege that Durant’s business candidates is a good sign. Kallgren, a former small-business nesspeople to win a seat unless or $7.84 a share, compared with salary is inappropriate for the “We’re definitely seeing more owner. The winner will contest they have broad name recogni- a net loss of $55.8 million, or leader of a nonprofit school and people (running for office) with presumptive Democrat candidate tion, said Bill Ballenger, editor of $1.42 a share, for the same peri- that the foundations were created real-life experience with manag- and incumbent Rep. John Dingell Lansing-based political newslet- solely to enrich Durant. Mark ing budgets and expenses outside in November. ter Inside Michigan Politics. od last year. Brewer, head of the Michigan Demo- of their own home,” Thomas said. Jacobsen said she’s concerned “I think a business type can The main reason for the cratic Party, has said the party is fil- “At least they will understand about the ACA’s impact on small bring something to the table if large jump in net income was ing a claim with the Internal Rev- small business and how political business. Jacobsen Industries — they were in a competitive race that after a year of sustained enue Service over the matter. decisions impact everyone in projected to generate $9 million in and had a chance at winning,” he profitability, the bank was able The Democratic Party, according Michigan.” revenue this year — employs 52, said. “The fact is, the public just to restore federal tax credits it to a Friday statement on its website, Clark Durant, president of De- including part-time workers. “I isn’t going to know who they are.” had not been able to use during says Durant’s compensation should troit-based New Common School realized that the people in Wash- Ballenger said voter turnout is its years of losses during and be considered self-dealing and pri- Foundation and former CEO of Cor- ington don’t work for us any- expected to be very low for the after the recession. vate inurement, or personal benefit nerstone Schools, said he’s willing more,” she said. “I was planning primary; he is projecting a 16 to 17 Those credits had been delet- to leaders or shareholders in a non- to give up his position for a seat on throwing my time and money percent turnout. He said the lack ed as an asset from the bank’s profit organization. Self-dealing on the U.S. Senate because “ca- behind a good Republican candi- of a major primary election ballot balance sheet, but auditors ap- “involves the payment of compen- reer politicians have been irre- date, but there wasn’t one, so I de- issue will keep people home on proved their reinstatement to sation by a private foundation or sponsible in debt and spending.” cided to run.” Election Day. the balance sheet for the second charity to ‘disqualified persons.’ “They have put our country on But state Rep. Jim Townsend, “Unless you have big-ticket quarter. Durant and his daughter both fall the verge of insolvency and/or D-Royal Oak, a former executive items at the top to attract voters, “Restoring our deferred tax into the disqualified person catego- rampant inflation, and that’s not director of the Tourism Economic you’ve got nothing to draw in the asset was a ry because of Durant’s position as a good thing for our future,” he Development Council, said candi- voters,” he said. “Most are going significant president and founder of Genesis,” said. “I plan to bring an outsider’s dates should be aware that busi- to vote based on yard signs or event for us the Democratic statement said. perspective of a person who’s had ness isn’t politics. He also was a pamphlets, so the incumbents this quar- But Pulte said Cornerstone got to generate resources voluntarily brand manager for Ford Motor Co. with a stronger ability to raise ter,” Presi- what it paid for. and has had to meet a payroll, cre- “When a business is losing mon- funds will get the votes.” dent Cathy “Nobody could raise the money ate organizations and create new ey, people don’t argue over what’s Dustin Walsh: (313) 446-6042, Nash said in he did. Nobody had the contacts he opportunities.” right and wrong; they get to work [email protected]. Twitter: a news re- did. Nobody had his heart,” Pulte Durant will square off in the on getting back in the black,” @dustinpwalsh lease. “Just said of Durant. as impor- The private Christian Corner- tant, our stone Schools operate a Pre-K amount of other compensation He provided Crain’s with an out- Nash some of the contributors whether or bankers con- school and a high school on Neva- from this organization and related side evaluation of his compensa- not their contributions are being tinue to drive consistent earn- da Street in Detroit. Former Cor- organizations,” making Durant’s tion, which found it was in line well spent on educational program- ings from our banking opera- nerstone schools in Detroit and total 2010 compensation $558,214. with his performance — though ming, but in my view it’s for the tions, and we continue to Redford Township became charter It’s difficult to track Durant’s the report benchmarked Durant’s board to decide,” he said. “It has the organically grow our strong schools in 2009. compensation from tax records, pay against the heads of much appearance of being out of line with capital position by successfully KC Crain, a vice president of because while the New Common larger foundations. other educational programs in the executing our strategic initia- Crain Communications Inc. and pub- School Foundation lists Corner- Durant said that the use of a sep- state, maybe well out of line, but I tives.” lisher of Crain’s sister publication stone School Association as a re- arate entity as a vehicle for his can’t see how there’s, aside from the Credit quality continued to AutoWeek, is a member of the Cor- lated organization in its 2010 fil- compensation was a condition of tax-exempt status issue, whether nerstone Schools board of directors. ing, it does not list Genesis, which his work at Cornerstone, because there’s a legal question regarding improve for the bank. From the He has also served as a “partner” to paid the lion’s share of Durant’s he did not want to be paid from the organizational aspect of it. For first quarter this year, total a Cornerstone Schools student in a compensation. school funds. some people it doesn’t pass the smell delinquencies decreased by 18 program that pairs students with In 2010, New Common School But the compensation criteria test, but that’s not a legal principle.” percent to $32.7 million, and net members of the community. In 2011, Foundation paid Hope Loomis for nonprofit employees has other Durant was a co-founder of Cor- charge-offs decreased to Crain co-hosted a golf outing to $50,304. Genesis Foundation paid criteria, said Arthur Weiss, a nerstone Schools in 1991, respond- $22.2 million from $28.1 million raise funds for the schools; he plans her $147,000 that year; her total member of Southfield-based Jaffe ing to a call by Cardinal Adam in the first quarter and from to co-host the same outing in 2012. compensation was $197,304. Raitt Heuer & Weiss PC’s board of di- Maida for greater community en- $35.4 million in the second The Crain family has made charita- Durant said his compensation rectors and tax practice group, gagement, according to an inde- quarter last year. ble contributions to Cornerstone was all on the up-and-up. speaking generally of tax-exempt pendent report commissioned by The bank’s allowance for for about two decades. Crain said he “The rules are, when you set up a organizations and not specifically the Genesis board of directors on loan losses declined to $136.1 has not made donations to either of 501(c)(3), you have to have a tax-ex- of Durant’s compensation. Durant’s compensation. million from $153 million the the foundations. empt purpose approved by the IRS. “Whoever gets paid, whatever Pulte has been a generous donor previous quarter and from Crain’s Detroit Business has pub- Once you have a tax-exempt organi- function, it has to be market rate,” to Cornerstone Schools, Durant $206.3 million in the second lished a report on compensation zation, in order to be compensated, Weiss said. “If they’re not paid said, outside of his role in the Du- quarter a year ago. for nonprofit executives like Du- you have to have an independent market rate, it could create issues. rants’ compensation. Citizens, which has 37 rant since 2005. Durant is paid by board make its decision about your It must be commensurate with the “The story always focuses on branches in Metro Detroit, was multiple entities. compensation, and obviously you functions they’re doing, and they me,” Durant said. “It shouldn’t, be- founded in 1871, at the height of In 2010, the year of its latest tax can’t participate in that,” Durant can’t bootstrap money out of an ex- cause the real story is a wonderful, Flint’s lumber boom, as Citi- filing, Genesis Foundation paid Du- said. “That’s how you protect empt organization or else it cre- kind and generous man who has zens Commercial & Savings rant $475,000. A 2010 Cornerstone against these things from Mark ates an inurement issue. Exempt given millions of dollars to help Bank. One of the founders of Schools Association tax filing says Brewer and all the rest about pri- organizations are to function for children he will never meet but General Motors, W.C. Durant, Durant was paid an additional vate inurement and self-dealing.” exempt purposes.” whom he wants to be successful in reportedly used a loan he got $18,000, but does not list the donor Durant said an independent John Mogk, a professor at Wayne life.” from Citizens in 1886 to start organization. The same year, Du- board sets his compensation and State University Law School, said Nancy Kaffer: (313) 446-0412, his vehicle manufacturing ca- rant was paid $33,000 through the that he is required to meet specific that a legal question might not be [email protected]. Twitter: reer. New Common School Foundation. benchmarks. the key issue. @nancykaffer Tom Henderson: (313) 446- The form also lists a $50,214 pay- “I have never voted for my own “It’s a nonprofit corporation, and Crain’s reporter Sherri Welch 0337, [email protected]. ment to Durant in “estimated salary,” Durant said. there may be some questions by contributed to this report. Twitter: @tomhenderson2 20120730-NEWS--0020-NAT-CCI-CD_-- 7/27/2012 6:49 PM Page 1

Page 20 CRAIN’S DETROIT BUSINESS July 30, 2012 Parking: Balancing small business and big events in Detroit ■ From Page 3 business on event days than we do, ing it but never did, so we do not ship, says an increase in both could but we can’t,” said Brian Pastoria, recognize a special-event rate.” clear up a lot of the issues. Down- owner of UDetroit Café. “If an artist People see event prices and focus on that, Parking lot owners are supposed town Detroit is made up of pockets wants to come to UDetroit to play a “ to submit a detailed rate sheet to of density, with little activity tak- show, he has to pay $40 to park. We but what they don’t realize is we have the city but are not required to ing place between. He says once tell them, park somewhere else post a rate schedule at lots, Jones those areas are connected, many and we will pick you up.” reduced the rates by more than 20 percent said. concerns, like parking too far from The parking meters in Foxtown In practice, though, that submis- a destination or being the victim of and Paradise Valley, formerly over the years. sion requirement hasn’t been en- a smash-and-grab, will fade. known as Harmonie Park, have a ” forced since at least Super Bowl Gregory said the DDP also is two-hour limit and cost $1 per hour. Nick Abraham, Woodward Parking Co. Inc., Handy Parking Inc. XL in 2006. talking with the police depart- Jerry Belanger, owner of the Lot owners and city groups say ment, local business owners and Park Bar at Elizabeth and Park — caused the decline in parking end in January. they are trying to improve things. parking lot owners about potential streets, said the large lot owners rates, and the recent influx of em- On Jan. 6-8, 44 cars were broken “We are trying to work with our solutions to the parking problems. simply don’t see the impact of ployers hasn’t totally reversed the into in the Foxtown area, west of venues to try to create opportuni- “We need a comprehensive parking on independent bars and trend for his lots. Woodward Avenue and south of I- ties for people to park in lots that plan,” Gregory said. “The plan restaurants. Abraham and his wife, Lorna, 75 behind the Fox Theatre. are attended, lit and secure at a rate needs to look at key activity cen- “I don’t think they wake up and co-own 20 parking lots and struc- With more than 200,000 people that is competitive,” said Olympia’s ters, where people should park, say, ‘Hey, let’s crush these small tures throughout Detroit. visiting the city over that wintry Larson. where are they parking now and businesses,’ ” Belanger said. “But weekend for the North American In- Shawny DeBerry, director of the what parking will be like after M1 they are so large that if you are too ternational Auto Show, a rap concert city’s Municipal Parking Depart- Rail (the planned light rail line on small, they will crush you. … They Crime’s role and a Detroit Red Wings game, ment, said two dynamics are at Woodward Avenue) enters the pic- don’t see the impact of their ac- A core issue in the conversa- Williams decided it would be bet- play: availability and safety. ture.” tions.” tions about Detroit parking is that ter to end street parking from While the police department has The DDP also is working to add Detroiters and visitors typically Thursday, Jan. 12, to Sunday, Jan. the authority to limit parking on more retail, restaurants, bars and don’t feel comfortable walking 15, rather than risk another round some streets to try to reduce larce- residential buildings to the central Supply and demand more than a few blocks because of larceny. ny, DeBerry says she also wants to business district. Gregory said The largest upticks in prices the streets often can feel deserted, Williams held a meeting with re-think metered parking. about 5,000 people live in the dis- center on dates with multiple spe- city planners and business groups the local parking lot owners to tell In Foxtown, for instance, DeBer- trict, the one-square-mile area cial events downtown. say. them his plan. In all, Williams said ry wants to install new meters that bounded by the Lodge Freeway, On the day of the Detroit Tigers’ “In other cities, people will he towed 20 cars on the evening of would allow people to use the street Fisher Freeway, I-375 and the De- home opener this year, Pastoria walk, but here, people want to Jan. 12. Williams said no cars were as if it were a parking garage. troit River. said he saw rates at a local valet park as close to the businesses as broken into the rest of that week- “I would like to see four-hour Gregory expects the central service near UDetroit Café start at they can,” said Ashok Patel, pro- end. But business owners said the parking on the street or something business district to add another $40 and jump to $80 by early after- ject manager for the Detroit Public expense and inconvenience to cus- to that effect,” DeBerry said. “We 5,000 residents within five years noon. Works traffic-engineering division. tomers was a problem. want to give people an ample for a total of 15,000 residents by But Nick Abraham, co-owner of And more crime is related to Belanger said the mass towing amount of time, since we don’t 2022, with retail growing with the Detroit-based Woodward Parking Co. street parking than is commonly was a failed experiment because it have a lot of parking facilities.” population. Inc. and Handy Parking Inc., said perceived. left visitors with a negative experi- DeBerry said her department is He said the goal is to create a while business owners and city According to the website ence and perception of the city. looking for other areas in which to dense residential district between visitors are typically most con- Crimemapping.com, which pro- create more metered parking, Campus Martius and Grand Cir- cerned about special-event pric- vides information about recent which would serve as competition cus, including Capitol Park, which ing, he has lowered overall park- crime activity by area, 384 car An outdated ordinance to independent parking lots and is slated for a major redevelop- ing rates since 2008. thefts and/or break-ins were re- Parking lot rates are governed help keep rates down. ment by Karp and Associates LLC of “People see event prices and fo- ported Jan. 7-July 2 within a one- by the Detroit City Code of Ordi- “What we are doing is first eval- Lansing that will include a mixed- cus on that, but what they don’t re- mile radius of Campus Martius nances, but the laws specific to uating all of the available parking use development of apartments, alize is we have reduced the rates Park. parking date back to the city’s 1964 that’s downtown,” she said. “If we retail and office space. by more than 20 percent over the Now-retired Detroit Police Depart- code and have not been updated see a place where meters can go, “The more people (that) are on years,” Abraham said. ment Cmdr. Kenny Williams said since 1987. The guidelines on spe- we talk to the traffic engineering the street, the better and safer it He says daytime rates for his about 92 percent of cars burglar- cial-event parking prices, in par- department to ask if they agree.” will be to park and walk,” Gregory parking lots used to hover around ized or stolen in Detroit are parked ticular, are unclear, said Kevin said. “Once the city is more walka- $7 dollars a day, and now the aver- on the street, while only 2 percent Jones, manager of the Business Li- ble, the dependence on parking age rate is about $5. of vehicles stolen are taken from cense Center for the city of Detroit. Density is the answer and parking close to where you are Abraham said companies leav- attended parking lots, which was “Ever since Tiger Stadium was A longer-term solution is more going will lessen.” ing downtown Detroit in the mid- why he decided to ban street park- torn down (in 2008-09), that section people and more retail business. Nathan Skid: (313) 446-1654, 2000s — J. Walter Thompson for ing along a number of key streets was voided,” Jones said. “City Bob Gregory, senior vice presi- [email protected]. Twitter: Dearborn and Comerica for Dallas during an unusually busy week- Council was talking about chang- dent of the Downtown Detroit Partner- @NateSkid API: Investors park their car business in ex-Saleen building ■ From Page 3 — particularly the high-bake paint It’s also not the first deal for cepts Inc., which designs and system,” Storrie said. “One of our either Storrie or Johnson. Both builds vehicles for TV, movies and partners told me, ‘Get us the have a history of building compa- charity raffles, is moving in. Its Saleen building, and we’ll triple nies through calculated acquisi- 2011 revenue was about $2.8 mil- our business.’ ” tions. Between 1991 and 2003, lion. High-performance vehicle devel- Storrie grew Dura Automotive API’s equity stake will grow opment will be a fast-growing in- from $120 million in annual rev- over time as the companies industry as the economy and the enue to $2.5 billion, he said. crease in value, Storrie said. API’s auto industry rebound, Storrie Through Hidden Creek Indus- investors also loaned money to the said. It’s a $28 billion industry, ac- tries, Johnson oversaw the acqui- two companies so they could have cording to the Specialty Equipment sition of 55 companies through his a minority stake in the building it- Market Association. five portfolio companies between self. Storrie said API had to compete 1989 and 2003. Through that structure, the goal against several bidders over a year The API investors plan to take is draw more companies and cre- to buy the Saleen building out of equity stakes in the companies ate 300 jobs by the end of 2014, with foreclosure from the original that use the building. They’ve a revenue target of $30 million. lender, Chicago-based PPM America COSTAR GROUP started by taking an investment in “The immediate goal is to con- Inc. API’s new 183,000-square-foot manufacturing space in Troy contains offices, a the two anchor companies that solidate a couple of companies and But it’s a deal that will give API showroom and, notably, a “high-bake” vehicle painting system. have leased space in the building. substantially grow their business an advantage, said Stephen Chue, Alternative Automotive Technolo- by providing the building space president of Katech Inc., a Clinton if somebody is in the body paint against that?” gies LLC moved in last month from and the management help that Township-based company that business and they have to com- API’s plan is to use the building its Troy location on Executive Dri- these smaller companies might builds high-performance motor- pete against a company that to host other companies in the ve. About 50 employees are work- need,” Johnson said. “But ulti- sports engines. bought a $7 million machine for a high-performance, show car and ing in the building, using 75,000 mately it may involve acquiring “Honestly, finding deals like fraction of the price and can specialty fleet market. Smaller square feet. AAT’s 2011 revenue several other companies that are that today is what makes competi- charge people at a much discount- companies can use space and grow was about $3 million. in high-performance and specialty tion very stiff,” he said. “Because ed rate, how do you compete in the building. Wixom-based Classic Design Con- vehicle markets.” 20120730-NEWS--0021-NAT-CCI-CD_-- 7/27/2012 6:44 PM Page 1

July 30, 2012 CRAIN’S DETROIT BUSINESS Page 21 Social media: Bloggers toot dealerships’ horns www.crainsdetroit.com ■ EDITOR-IN-CHIEF Keith E. Crain From Page 1 PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] Automotive News as the 15th- gave me a thorough tour of the car, encers, folks with large followings Ⅲ “Accelerating in this car ASSOCIATE PUBLISHER Marla Wise, (313) 446- largest dealership group in the na- showing me all of the extensive for their blogs or on social media seemed like a chore. There were 6032 or [email protected] EXECUTIVE EDITOR Cindy Goodaker, (313) 446- tion with 22,900 new-vehicle retail features.” such as Facebook and Twitter. The many times where I’d need to step 0460 or [email protected] sales and 32 stores in 2011. She also uploaded photos taken group has done more than 20 dri- on it, like highway merging or MANAGING EDITOR Jennette Smith, (313) 446- 1622 or [email protected] Boismier recalled that the group of the car to Instagram, the online ves since last August and current- needing to get around another MANAGER, DIGITAL CONTENT STRATEGY Nancy was looking to replicate on a small- photo-sharing service. ly does at least one per weekend. car, and feeling like the car was Hanus, (313) 446-1621 or [email protected] DEPUTY MANAGING EDITOR Daniel Duggan, (313) er scale Ford Motor Co.’s Fiesta Boismier said the experiment The Suburban Collection dealer- lazy on accelerating,” John 446-0414 or [email protected] Movement campaign, in which gave the Suburban Collection ship that lends the car performs a Phillips, a user interface design- SENIOR EDITOR Bob Allen, (313) 446-0344 or [email protected] Ford gave Fiesta subcompacts to brand exposure to thousands of lo- full vehicle delivery and walk- er, wrote on his blog. He tested a WEST MICHIGAN EDITOR Matt Gryczan, (616) 916- 100 people to drive across the coun- cal consumers connected to the around, exposing the influencers new Volkswagen Passat S. The V- 8158 or [email protected] SENIOR EDITOR Gary Piatek, (313) 446-0357 or try and chronicle their journey via Wollborgs on social media. The to the group’s staff and methods in 6 Passat he initially wanted had [email protected] social media. cost? A few hundred miles and a hopes of getting a plug when the been sold, so his tester had a four- SENIOR DESIGNER Jeff Johnston, (313) 446-1608 cylinder. or [email protected] It turned out that Wollborg and tank of gasoline, Boismier said. bloggers share their experience DATA EDITOR Brianna Reilly, (313) 446-0418, his wife, Elena, were the right can- “We figured out that there were online. The Suburban Collection’s Bois- [email protected] WEB PRODUCER Norman Witte III, (313) 446- didates to get the Suburban Collec- 55,000 to 60,000 branding impres- The influencers share their ex- mier said the effort is a cost-effec- 6059, [email protected] tion’s Social Test Drive program sions of our brand to her friends, periences on their blogs, Twitter, tive way to expose thousands of lo- EDITORIAL SUPPORT Robertta Reiff, (313) 446- started, Boismier said. between the amount of contacts Facebook, YouTube, Instagram or cal consumers to the group’s brand 0419; YahNica Crawford, (313) 446-0329 NEWSROOM (313) 446-0329, FAX (313) 446- Suburban Cadillac-Buick in Troy they had and the number of tweets, whatever social media they use. In and dealerships. 1687 TIP LINE (313) 446-6766 lent the couple a Cadillac SRX for a Instagram photos, Facebook posts return, the Suburban Collection Showing businesses how to use REPORTERS weekend retreat in northern and blog posts,” Boismier said. asks that they use the #socialtest- social media is a specialty of Woll- Daniel Duggan, deputy managing editor: Covers Michigan. The Wollborgs tweeted The Suburban Collection did not drive hash tag when sharing any- borg’s firm. He said this type of a real estate. (313) 446-0414 or [email protected] Jay Greene, senior reporter: Covers health care, about their time in the Caddy dur- pay Wollborg for his assistance on thing about the test drive online. campaign is effective because the insurance, energy utilities and the environment. ing the test drive, mentioning the the test drive. But the dealership Hash tags are used to link together readers are being exposed to the (313) 446-0325 or [email protected] Chad Halcom: Covers litigation, higher education, Suburban Collection’s Twitter group hired his firm to develop a online conversations about the Suburban Collection brand by non-automotive manufacturing, defense contracting and Oakland and Macomb counties. handle, @SubCollection, in the separate digital marketing pro- same topic. someone they trust. (313) 446-6796 or [email protected] tweets. gram. The bloggers can say whatever “From a marketing standpoint, Tom Henderson: Covers banking, finance, technology and biotechnology. (313) 446-0337 or Elena Wollborg, a high school The Suburban Collection has they please. it’s great for Suburban because [email protected] teacher, wrote a review of the SRX parlayed the idea of giving week- A couple of examples: now you have all these social me- Nancy Kaffer: Covers commercial real estate, the city of Detroit and Wayne County government. in her parenting blog, mommyisin- end loaners to local bloggers into Ⅲ “Shopped & loaded in record dia champions saying, ‘Check out (313) 446-0412 or [email protected] timeout.com. She also has 2,000 fol- the Social Test Drive program. time at #Ikea — plenty of trunk my video, check out this dealer- Bill Shea, enterprise editor: Covers media, advertising and marketing, the business of sports, lowers on Twitter. Now, almost a year later, with space!” tweeted Emily Hay during ship,’ ” Wollborg said. “Suburban and transportation. (313) 446-1626 or “From the moment I picked it more than 20 drives completed, it’s her weekend test of a Jeep Grand doesn’t have to do anything as far [email protected] Nathan Skid, multimedia editor. Also covers the up, I fell in love,” Elena Wollborg a core part of the group’s market- Cherokee. Hay writes a blog about as tooting their horn. Everyone food industry and entertainment. (313) 446-1654, wrote in her review. “An associate ing strategy. how small businesses can effec- else is talking about it.” [email protected] Dustin Walsh: Covers the business of law, auto from Suburban Cadillac Buick The bloggers are so-called influ- tively use social media. From Automotive News suppliers and steel. (313) 446-6042 or [email protected] Sherri Welch: Covers nonprofits, services, retail and hospitality. (313) 446-1694 or [email protected] ADVERTISING SALES INQUIRIES: (313) 446-6052; FAX (313) Aluminum: Southeast Michigan stockpiles grow 393-0997 SENIOR ACCOUNT EXECUTIVES: Matthew J. ■ From Page 3 Langan, Tamara Rokowski ADVERTISING SALES Christine Galasso, Lori of the metals market for Chicago- Prices are near three-year lows. Tournay Liggett, Dale Smolinski CLASSIFIED SALES (313)-446-0351 based Morningstar Inc. Current aluminum prices are ap- EVENTS DIRECTOR Nicole LaPointe Aluminum warrants, the bearer It’s in (warehouses’) interest to keep the proximately $1,700 per ton, down DIRECTOR, INTEGRATED MARKETING Eric Cedo documents that enable the holder to “ from near $2,500 a ton last June, EVENTS COORDINATOR Kacey Anderson SENIOR PRODUCER FOR DIGITAL/ONLINE take possession of a specified parcel most stock for as long as they can. The according to exchange data. PRODUCTS Pierrette Dagg of metal at a specified warehouse, That drives customer demand, MARKETING ARTIST Sylvia Kolaski are averaging an 8 percent return market is completely out of balance. which competes with the traders SALES SUPPORT Suzanne Janik, YahNica Crawford over a 15-month period, meaning ” of metal warrants, Freas said. AUDIENCE DEVELOPMENT MANAGER Nick Madden, Novelis Inc. Candice Yopp aluminum prices are projected to be Madden said he believes ware- MARKETING COORDINATOR Jenny Griffith higher in the future, according to Whatever the financial incen- they can. houses just don’t have an incen- PRODUCTION MANAGER Wendy Kobylarz PRODUCTION SUPERVISOR Larry Williams market data site World Aluminum Mar- tives for stockpiling, customers “All I can say is that we are mov- tive to move the metal. CUSTOMER SERVICE ket. Since interest rates for financ- still blame the exchange’s rules. ing per the (exchange’s) rules and “It’s in their interest to keep the MAIN NUMBER: Call (877) 824-9374 or write ing are only about 5 percent, that Nick Madden, vice president requirements,” the source said. most stock for as long as they can,” [email protected] leaves a net return for traders of and chief procurement officer for “There are a lot of stresses and Madden said. “The market is com- SUBSCRIPTIONS $59 one year, $98 two years. Out of state, $79 one year, $138 for two years. about 3 percent, according to World Atlanta-based rolled-aluminum strains on operations to get metal pletely out of balance.” Outside U.S.A., add $48 per year to out-of-state Aluminum Market. That’s a higher However, the source said much of rate for surface mail. Call (313) 446-0450 or producer Novelis Inc., said the new out.” (877) 824-9374. return than U.S. government bonds rules don’t do enough to offset the The bottleneck is now worse the world’s warehoused aluminum SINGLE COPIES: (877) 824-9374 and other low-risk investments. bottleneck. thanks to an even tighter supply, is coming off warrant — meaning REPRINTS: (800) 290-5460, ext. 125; (717) 505-9701, ext. 125; or lindsay.wilson Freas said the easy-to-access and Even though the exchange re- Madden said. that the owner has the intention of @theygsgroup.com inexpensive financing has traders quires a minimum of 3,000 tons of “The bottom line is when demand moving it out of the warehouse. TO FIND A DATE A STORY WAS PUBLISHED: rushing to buy up warrants of the aluminum to leave warehouses picks up or supply reduces, the lack On July 19, more than half of (313) 446-0406 or e-mail [email protected] aluminum ingots. And as metal is each day, an unlimited amount can of availability of metal in the mar- Metro International’s stockpile CRAIN’S DETROIT BUSINESS IS PUBLISHED BY CRAIN COMMUNICATIONS INC. being traded, it is stored in the enter. Metro took in its largest in- ket creates a problem,” he said. was on canceled warrants. CHAIRMAN Keith E. Crain London exchange warehouses. take on May 17, 2011, loading more Global demand for aluminum But, with only 3,000 tons leaving PRESIDENT Rance Crain And that leads to additional rev- than 21,000 tons into the warehous- rose by 10 percent last year, accord- the warehouse a day, it would take SECRETARY Merrilee Crain TREASURER Mary Kay Crain enue for the warehouses. es, yet it strictly adheres to the ing to Pittsburgh-based aluminum 256 working days for the canceled Executive Vice President/Operations Metro, for example, currently 3,000-ton rules, rarely removing producer Alcoa Inc.’s second quar- warrants to exit Detroit for delivery. William A. Morrow Group Vice President/Technology, charges a London exchange-regu- more from its warehouses daily, ac- ter earnings call. Increased use of “They always say there aren’t Manufacturing, Circulation lated 45 cents per ton per day to cording to Bloomberg data. aluminum is expected to boost de- enough trucks in Detroit to ship the Robert C. Adams Vice President/Production & Manufacturing store aluminum, according to a The London exchange system is mand in the future, as well, accord- metal out at a faster rate,” Madden Dave Kamis source familiar with exchange designed as a last resort for alu- ing to a September study by Duck- said. “Shipping has nothing to do Chief Information Officer Paul Dalpiaz warehouse procedures, who spoke minum buyers and sellers to sell er Worldwide. Ducker said with the warehouse. If we want met- Chief Human Resources Officer on the condition of anonymity. At off excess stock and buy material, aluminum will grow from 325 al from Detroit, we’ll arrange trucks Margee Kaczmarek Director of Audience Development Operations the current stockpile, Metro, on but Madden said consumers need pounds per vehicle in 2008 to 550 and, trust me, we have no problem Michelle Roth behalf of Goldman Sachs, is gener- to find another source because the pounds per vehicle by 2025. arranging transportation.” G.D. Crain Jr. Founder (1885-1973) ating roughly $623,000 per day or market is an unrealistic solution. Ford Motor Co. and Toyota Motor Another reason for the canceled Mrs. G.D. Crain Jr. Chairman (1911-1996) EDITORIAL & BUSINESS OFFICES: more than $227 million a year. Last year, Coca-Cola’s com- Co. declined to comment. General warrants is that warrant owners 1155 Gratiot Ave., Detroit MI 48207-2732; (313) Global aluminum stockpiles on plaint charged that it took as long Motors Co. and Chrysler Group LLC did aren’t willing to pay Metro Interna- 446-6000 Cable address: TWX 248-221-5122 AUTNEW DET the London exchange have grown as eight months to receive the met- not return emails on the matter. tional’s storage fee, the source said. CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 from below a million tons in 2007 al bought out of the Metro Interna- However, Southfield-based Feder- The source said as much as 90 per- is published weekly, except for a special issue the third week of August, and no issue the third week to 4 million tons last summer and tional warehouses. al-Mogul Corp. does “not anticipate cent of canceled warrants in the of December by Crain Communications Inc. at currently 4.8 million tons, accord- warehouse system are moving out 1155 Gratiot Ave., Detroit MI 48207-2732. Madden said the wait time now any constraint in the availability of Periodicals postage paid at Detroit, MI and ing to Bloomberg data. can be closer to a year. aluminum that would adversely to another storage facility, not to additional mailing offices. POSTMASTER: Send address changes to CRAIN’S DETROIT BUSINESS, Metro International’s stockpile “Beyond just accessing the prod- impact us,” Jim Burke, director of customers. Some are paying as little Circulation Department, P.O. Box 07925, Detroit, represents 28.9 percent of the uct, tying up working capital for corporate communications, said in as 10 cents per day per ton at non-ex- MI 48207-9732. GST # 136760444. Printed in U.S.A. world supply traded on the London that long is a real challenge for an emailed statement. change warehouses, the source said. Entire contents copyright 2012 by Crain exchange, according to Bloomberg manufacturers,” he said. Strong global demand has dri- Dustin Walsh: (313) 446-6042, Communications Inc. All rights reserved. Reproduction or use of editorial content in any data. The stockpile has grown The unnamed source said the ven down prices, but not ware- [email protected]. Twitter: manner without permission is strictly prohibited. from 1.15 million tons in June 2011. warehouses are moving as fast as house inventories. @dustinpwalsh 20120730-NEWS--0022-NAT-CCI-CD_-- 7/27/2012 6:50 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS July 30, 2012 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF JULY 21-27

al playbook in favor of the Ⅲ Gannett Co. Inc. made Wayne County Executive iPad, but a report last week Detroit requests an early retirement offer to Robert Ficano, pleaded from Yahoo!Sports noted a 155 employees with at least guilty in U.S. District Court Local firm downside has emerged: 20 years experience at The to accepting bribes to help Players forget to charge the postponement of Detroit News, Detroit Free an IT vendor secure county devices overnight and don’t Press and the Detroit Media contracts. As part of his remember to download up- Lafayette Towers Partnership, the entity that plea deal, Kazmi agreed to dates from the coaches. brings light handles their joint busi- cooperate in a federal probe Some players have taken ness operations. of county corruption. to using paper playbooks as foreclosure sale Ⅲ About one-third of the Ⅲ The Detroit Lions signed a supplement. 1,500 Title Source Inc. em- first-round draft pick Riley he city of Detroit has ployees leaving Troy for Reiff to a contract of about to Olympics asked the U.S. Depart- $8 million, with a signing Mock stocks yield $1,250 Detroit’s First National Build- T ment of Housing and ing began moving in last bonus near $2.6 million. Urban Development to post- ondon’s Wembley Arena for challenge winners week. Quicken Loans Inc. Ⅲ Wayne State University pone a foreclosure sale for district will be hop- The University of Michigan- founder Dan Gilbert has an President Allan Gilmour said Lafayette Towers to ensure L ping for the Olympics, Dearborn Investment Chal- ownership stake in the his administration is not that the city has a say in but the exterior colored lenge, held with Crain’s De- company and owns the trying to eliminate tenure in the future of the apartment lighting display will be han- troit Business, wrapped up building, now at 93 percent its contract with the Ameri- building. HUD foreclosed dled from here. its 2012 Quarter Two Chal- occupancy. can Association of University on the property earlier this The venue will host the COURTESY OF LV8 COMMUNICATIONS lenge last week in a contest Ⅲ Some current and for- Professors, adding that the year. badminton and gymnastics Illuminating Concepts’ LED that went down to the wire. mer employees will get an- university proposes to “ad- events, and adjacent Wemb- lights show the way to Each won $1,250. other chance to pursue a dress problems more effi- Wembley Arena. ley Stadium is the largest of Jim Moscato, 68, of ON THE MOVE lawsuit against Flagstar ciently” among faculty. the six venues hosting soc- ness strategy, using his Rochester Hills won the Bank over company stock Ⅲ The Detroit RiverFront Ⅲ Henniges Automotive cer. So there’s a good company’s proprietary soft- Sharpe ratio portion of the in their retirement ac- Conservancy said its efforts Holdings Inc. named former chance TV viewers will see ware, was able to come up contest, growing his mock counts. A federal appeals to complete a recreational TRW Auto- exterior shots of the area, with what he thought was investment to $1.2 million. court has reinstated the development project along motive Inc. and the eye-popping an exact match. The Sharpe ratio measures case in Detroit federal Detroit’s east riverfront are Vice Presi- Olympic colors being emit- In a 15-second remote test soundness of investments. court. Troy-based Flagstar getting a $44 million boost dent Dou- ted from the LED lighting last week, Olympic officials Kyle Zielinski, 26, of Farm- is blamed for offering stock from the federal govern- glas Del- that fills the district, includ- agreed the pink was perfect. ington Hills won the total to employees at a time ment and the state. ing a series of glowing poles return challenge with $1.2 Grosso as when the bank was in per- Ⅲ Restaurateur Matt Pren- that line the plaza between million. its CEO. He ilous shape. tice is being sued by a list of the two venues. Paperless Lions opt for Moscato said he’s dabbled succeeds Ⅲ Huntington National corporate entities controlled The lighting display will in the stock market since interim Bank took another step to by Stan Dickson Jr. in an at- be controlled, not from Lon- iPad playbooks in camp CEO Larry tempt to enforce a noncom- 1968 and focused on ex- DelGrosso bolster its Michigan pres- don, not even from England, The Detroit Lions are the change-traded funds in the Williams, ence by signing a 10-year pete agreement signed by but from the offices of Illumi- latest NFL team to jettison contest. Zielinski said he who will resume his prior sponsorship deal with Prentice in 2009 after Dick- nating Concepts in Farming- the traditional paper play- chose stocks by scouring the position as CFO. Michigan State University’s son took control of Matt Pren- ton Hills, via an Internet book in favor of a digital charts for trends of upward Ⅲ Care House of Oakland athletics department. tice Restaurant Group assets connection. version on iPads issued to or downward momentum. County named Carol Furlong, Ⅲ Ann Arbor-based Teru- and hired Prentice to oper- Four years ago, Illumi- players. “I wanted to test a couple a 15-year veteran of the mo Cardiovascular Systems ate them. Prentice left what nating Concepts obtained The team handed out 90 of trading strategies I had, Southeastern Michigan Corp. plans to expand its is now Epicurean Group in the contract to design the of the tablets last week as it and it was nice to do it with Blood Services Region of manufacturing plant after March and entered an agree- lighting for the Wembley began training camp at its fake money,” he said. the American Red Cross, as receiving a 12-year, $4.9 mil- ment to run a new Morels district. The company de- Allen Park facility. The challenge was de- executive director. She suc- lion property tax abatement restaurant. signs custom light-emitting Team personnel under- signed to increase financial ceeds Pat Rosen, who moved from Scio Township. Ⅲ Alumni of Thomas M. diode displays for amuse- went an iPad tutorial on literacy, said Ken Kettenbeil, to Florida. Ⅲ Detroit-based advertis- Cooley Law School do not ment parks, casinos and Thursday. executive director of mar- Ⅲ NextEnergy has named ing agency Commonwealth have a case for alleged mis- other large-scale projects, The digital advantage is keting and communications Jean Redfield as CEO. Red- will handle the marketing representation of the ca- as well as municipal street obvious: Everything is in- for the school. field had been NextEnergy’s work after Chevrolet inked a reer success of its gradu- lighting systems whose stant, rather than labori- Participants make simu- vice president, public policy four-year marketing deal ates, a Michigan federal poles can also display im- ously hand-updated, and lated stock trades from a programs, since 2010. She with Liverpool Football Club judge ruled in tossing out a ages or words. can be updated just as $1 million account to grow succeeds Ron Gardhouse. of soccer’s English Premier prospective class-action Less than two weeks be- quickly. Coaches can pro- their portfolios. League, following a similar lawsuit against the school. fore the Olympic Games be- vide video and other extras About 1,000 people have contract signed with Man- Ⅲ The U.S. Agriculture and gan, the firm was asked if it that paper cannot replicate entered the quarterly in- COMPANY NEWS chester United in May. Energy departments are giv- could modify the lighting, — and players don’t have to vestment challenges in the Ⅲ Faulty fuel lines man- Ⅲ Ann Arbor-based ing $2.3 million to Michigan which already came in a be in the team’s film room past year. The yearlong ufactured by Auburn Hills- Carlisle/Wortman Associates State University and Michigan range of colors, to include to study game tape. competition ended June 30. based TI Automotive Inc. will develop a zoning strat- Technological University for the official Olympic pink. The Tampa Bay Buccaneers Details are at were identified as the egy for the Detroit Works Pro- genetic research on im- Michael Shulman, executive in 2011 became the first crainsdetroit.com/ source of the problem that ject, which aims to develop proving the efficiency of director of design and busi- team to forgo the tradition- investmentchallenge. led to Ford Motor Co.’s recall a long-term plan for land biofuel production. of 11,500 2013 Escape sport use in the city, the compa- utility vehicles. The lines ny announced. were scored by machinery, OBITUARIES causing them to split and Ⅲ Robert Diehl Sr., an at- leak, say documents filed OTHER NEWS torney who with a partner with the National Highway Ⅲ Comerica Bank’s Michi- acquired Douthitt Corp., died Traffic Safety Administration. gan Economic Activity In- July 22. He was 88. BEST FROM THE BLOGS Ⅲ Ambassador Bridge own- dex jumped 1.9 points in Ⅲ Ronald Dobbins, former er Manuel Moroun spent May to 103.9, its highest lev- president and CEO of Omni- READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS $4.7 million on gathering el since January 2005. Care Health Plan and former signatures and ads to sup- Ⅲ Seasonally unadjusted COO of United American Consent pact foes lose, but ... Verlander’s new best friends port a ballot initiative that unemployment rates have Healthcare Corp., died July would require voter ap- increased in all 17 of Michi- 14 of complications from a Bad news … for At some point, proval for any new interna- gan’s regional labor mar- fall. He was 77. those“ holding out hope Justin“ Verlander and his tional bridge crossing, ac- kets. Figures released by Ⅲ John Gongos, founder agents are going to want that the city of Detroit’s cording to a report by the state Department of Tech- and CEO of Auburn-Hills consent agreement with to talk about a new the state could be contract with the Tigers. Gongwer News Service Inc. nology, Management & Bud- based marketing firm Gon- invalidated. ... Good … Coloring those Ⅲ Visteon Corp.’s play to get also show that Michi- gos Research Inc., died July news for those who discussions will be Cole acquire the remaining 30 gan’s overall unadjusted 25 of complications from don’t want the city to go Hamels and his new percent stake of its prof- unemployment rate rose metastatic melanoma. He bankrupt by mid- contract with the itable South Korean joint from 8.9 percent in May to 9 was 51. August. Philadelphia Phillies. venture Halla Climate Con- percent in June.The rate Ⅲ Irving Rose, real estate trol Corp. was shot down af- was 10.2 percent in the De- developer and Fidelity Bank Reporter Nancy Kaffer’s blog on the city of Detroit ” Reporter Bill Shea’s “Shea’s Stadium” blog on the” ter the country’s National troit area. founder, died July 22 from and small business can be found business of sports can be found at www.crainsdetroit.com/kaffer at www.crainsdetroit.com/sheasstadium Pension Service rejected the Ⅲ Tahir Kazmi, former Parkinson’s disease-related supplier’s offer. chief information office for complications. He was 86. DBpageAD.qxp 7/26/2012 12:29 PM Page 1

Don’t miss this chance to have your advertising message in “Living in the D,” Crain’s annual salute to living and investing in Detroit. This year’s keepsake magazine will focus on the revival of Detroit’s riverfront as a symbol of the city’s resurgence. Other stories will showcase Detroit’s neighborhoods, people, business opportunities, recent developments and offer Crain’s inﬂ uential readers insight into what makes our city an interesting place to live, work and conduct business.

BONUS DISTRIBUTION at the party of the year, the Crain’s Detroit House Party, on Sept. 20. Learn more about it at www.crainsdetroit.com/events

ISSUE DATE: Aug. 20, 2012 CLOSING DATE: Aug. 2, 2012

Contact Marla Wise, [email protected] or 313-446-6032 for more information. Photograph by John Sobczak DBpageAD.qxp 7/18/2012 2:34 PM Page 1

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