3 New Schools No M.D. Cure-All

20110411-NEWS--0001-NAT-CCI-CD_-- 4/8/20116:18PMPage1 ©Entire contentscopyright2011byCrainCommunicationsInc.Allrightsreserved Page 35 Largest Michiganlawfirms, and interiors,Page17 LEED-certified buildings strength, Page11 Battle Creekbuildsonits in-house counsels,Page21 New awardshonorgeneral, It’s not thatsimple,Page7 Name priceforPistons? by thinkingoutsidemailbox Coupon companygrows trio putuptheirownmoney Before firmraisesVCfunds, ness LeaderssaidFriday. Snyder collaboration withGov. based Inc. tank Lansing publicpolicythink tiative isbeingconductedby for Michigan CEO group launched bythestatewide their urbanareashasbeen help communitiesredevelop gies thatthestatecanuseto for urbanredevelopment CEO groupseeksstrategies

NEWSPAPER www.crainsdetroit.com Vol.27,No.15 Focus Inside This JustIn Page 3 Crain’s Crain’s MICHIGAN BUSINESS Among otherthings,the The UrbanStrategiesIni- A projecttodevelopstrate- and theWashington- Public SectorConsultants ’s administration,Busi- Brookings Institution See ThisJustIn,Page2 CRAIN’S Lists . Business Leaders Rick , in ing contingencyplans. search officeslookingforworkaroundsormak- Detroit paintandcoatingscompaniesre- cles areinshortsupply—andthathasmetro of othermetallic-infusedpaintsusedonvehi- Quake dryingupsupplyofflashypigmentfor carpaint rocked theislandnationinMarch. stroyed bythe8.9-magnitudeearthquakethat at itsOnahama,Japan,plant,whichwasde- duces itspatentedXirallicpaintpigmentsolely more oftenatpubliccourses,groupevents As economymends,image-consciousbizgolfers and privatecoursesdeclined1.6 played onMichigan’s825public as frivolous. viewed bysome client isstill the linkswitha afternoon on worry thatan ing sodespite creasingly do- business arein- the gamefor in Michigan,butthosewhouse to seemoredealmakersthisyear. Shepherd’s HollownearClarkston Some expectcourseslike Darmstadt, Germany-based Tuxedo Black,BlackberryPearlanddozens While workershavere-enteredtheplantto upswing The numberofroundsgolf Fewer peopleareplayinggolf On the CRAIN’S DETROITBUSINESS B CRAIN’S DETROITBUSINESS Y B B Y ILL D USTIN S Page 19 springs anew, Owners: Page 18 in Michigan, Pro tours: O HEA COURSE N W Hope ALSH Back Merck KGaA MARCH 11–17,2011 members todobusinessinava- The courseisregularlyusedby Club lessons at rise recentlyinpeopleseeking lines. from thepeopleongolf’sfront ees. ing dealsorrewardingemploy- building clientrelationships,do- rounds playedwiththeintentof gan becausenoonetracks health ofbusinessgolfinMichi- ness statisticsaboutthegame. Foundation Jupiter, Fla.-based percent in2010,accordingtothe APRIL 11–17,2011 COURTESY OFSHEPHERD’SHOLLOWGOLFCLUB For example,therehasbeena So, theevidenceisanecdotal It’s difficulttoquantifythe pro- in BloomfieldTownship. , whichtracksbusi- Oakland HillsCountry as theirsuppliesofXirallicrunout. tive suppliersarescramblingforalternatives clear crisistocomeundercontrol,U.S.automo- leaves itsfuturequestionable. from theFukujima-Daiichinuclearreactor— begin repairs,itslocation—amere28miles mance CoatingsNorthAmerica said K.NigelBudden,directorof Clemens, isaffectedbytheXirallicshortage, American automotivecoatingsbusinessinMt. DuPont Automotive And whiletheworldwaitsforJapan’snu- “DuPont ismakingeveryattempttowork See Golf,Page42 ainlGolf National , whichoperatesitsNorth is scheduledtoopenin2014. school atthepublicuniversity.It gift toestablishaprivatemedical an anonymous$100millioncash University age, expertssay. state’s impendingphysicianshort- training, doinglittletomendthe heading outofstatetocomplete residency slotsmayleavestudents nomic impact.Butafederalcapon schools nodoubtwillhaveaneco- in-training outofMichigan Funding caps pushdoctors- no M.D.cure-all 3 newschools ety Rapids. school inSeptemberGrand opened anosteopathicmedical erate privately. William BeaumontHospitals land’s, incollaborationwith ate asapublicentity,whileOak- state’s direshortageofdoctors. supply physicianstoaddressthe respectively. Allthreeexpectto ing newschoolsin2012and2013, Oakland University Central MichiganUniversity Last month, Michigan’s threenewmedical The Michigan StateUniversity CMU’s medicalschoolwilloper- . projects ashortageof4,500doc- See Paint,Page43 CRAIN’S DETROITBUSINESS Michigan StateMedicalSoci- B Y DuPont Perfor- in Kalamazooannounced D USTIN Western Michigan also arelaunch- W ALSH now-destroyed Onahama,Japan,plant. A MerckphotoshowsthemakingofXirallicatIts , willop- also and lation. the growingmedicalstudentpopu- enues tofundadditionalslotsfor to hiremoreandnoobviousav- its hospitals,withnofederalfunds from Medicare. funded, inpart,with$9.5billion dency programs. ber ofopeningsavailableinresi- cent morestudentsthanthenum- schools graduateroughly25per- ing hospitals—U.S.medical residency programatlocalteach- the problemisacceptanceintoa solve thephysicianshortage.But come fullyoperational. when thethreeotherschoolsbe- expected torise1,000annually sity sity ofMichigan gan’s medicalschoolsatthe graduate eachyearfromMichi- from 2009. according tothemostrecentdata internal medicineandpediatrics, family practice,generalmedicine, ly inlower-payingareassuchas tors inthestateby2020,specifical- Michigan has4,843residentsin These residencyprogramsare On thesurface,thishelpsre- Currently, about700students and MSU.Thatfigureis $2 acopy;$59year See Residencies,Page45 , Wayne StateUniver- Univer- ® 20110411-NEWS--0002-NAT-CCI-CD_-- 4/8/2011 6:06 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS April 11, 2011

that it was seeking a cheaper fundraising environment, but ing for a new executive director. Crain’s staffers win THIS JUST IN headquarters location than its we’re thrilled to finally be here,” LeAnn Auer, who joined the current leased Ann Arbor space said Managing Director Tim MVCA in the fall of 2006 after 13 excellence awards ■ From Page 1 as it works to emerge from the Streit. He and partner Ryan years with Barclay’s Global In- Chapter 11 bankruptcy protec- Waddington are both veteran capi- vestors in San Francisco, has ac- Crain’s Detroit Business and sev- project will: review data for tion it entered on Feb. 16. talists who returned to Michigan cepted a position with the trea- eral members of the editorial staff Michigan’s metropolitan statis- It’s been at its 458,000-square- to vie for MSF funding and start sury team at Ford Motor Co. received accolades in the 2010 Ex- tical areas and compare it to re- foot headquarters at 100 Phoenix their own firm, which will invest The MVCA, which was found- cellence in Journalism awards of gions nationally; review best Drive, just south of I-94 near Bri- in alternative energy, advanced ed in 2002, has 160 members, in- the Detroit chapter of the Society of practices nationally; assess arwood Mall, since the mid-1990s. materials and manufacturing cluding venture capital firms, Professional Journalists. Michigan and federal urban The building is owned by and homeland defense. angel investors, economic devel- Awards were presented April 6. policies and programs, philan- Farmington Hills-based real es- The fund expects to hold a sec- opment organizations, universi- In the online journalism catego- thropic priorities and alignment tate investment trust Agree ond close in the next two months ties and service providers. ry, Crain’s website, crainsdetroit with goals and strategies of Realty. and a final close in a year. Those interested in replacing .com, was given a first-place award — Tom Henderson Michigan metropolitan leaders, The chain said 475 people work her should send a cover letter for having a “well-designed, easy to foundations and others. in the Ann Arbor headquarters, and résumé to lauer@michigan- navigate site that covers local busi- The project, which will include and its lease runs through 2023. vca.org by May 6. ness exceptionally well,” according recommendations on changes to — Bill Shea Shore Financial has new CEO — Tom Henderson to the SPJ. state and federal policy, is ex- Birmingham-based Shore Fi- Crain’s multimedia reporter pected to be completed by year’s New Huron River VC firm nancial Services Inc., a national Nathan Skid and Web Developer end. mortgage lender, has named Kip Robotics Day beats expectations Steve Williams won first place in the — Amy Lane to announce $7M close Kirkpatrick as CEO. He replaces multimedia feature category for Kathy Welty, who assumes the Attendance is expected to be their work on Crain’s annual 20 in Huron River Venture Partners, a new position of COO. double the anticipated turnout their 20s awards. fledgling venture capital firm in New York firm helping Previously, Kirkpatrick was Tuesday, when the National Cen- Assistant News Editor Jeff John- Ann Arbor, is expected to an- president and CEO of Kirkpatrick ter for Manufacturing Sciences and ston won first-place awards in the Borders search for area HQ nounce today that it has had a & Co., a merchant banking firm Robotics and simulator research best feature page design and edito- Real estate sources say that first close of $7 million of what is in Chicago. company Soar Technology Inc. rial page design categories. The New York City-based DJM Realty expected to eventually be a $15 Shore, which provides mort- of Ann Arbor co-host Michigan feature page was for a Policy sec- is handling the Borders Group million seed-stage fund investing gage services to consumers Robotics Day, along with the tion cover design on the use of to- Inc.’s search for a new corporate in very young companies. through Shore Mortgage and to Michigan Economic Development bacco settlement funds. headquarters in metro Detroit. Last August, Huron River and brokers through United Wholesale Corp. Nonprofits and services reporter DJM and Borders declined to Grand Rapids-based Michigan Ac- Mortgage, is privately held and The event is above capacity in Sherri Welch took second place in comment. celerator Fund I were named as operates in 47 states and the Dis- pre-registration with 120 people the general news category for her It already is the broker for the winners of a state competition trict of Columbia. story about fraud at the Ann Arbor bankrupt bookseller’s retail loca- for new VC firms willing to focus from more than 75 companies ex- — Tom Henderson Amateur Hockey Association. tions. The agency on Friday list- on seed-stage investing. pected to attend — compared Bill Shea, enterprise editor and ed 205 Borders properties avail- Each firm got a commitment of with an initial turnout of about reporter, won second place in the able in 37 states, totaling more $6 million from the Michigan VC association director 50 companies, said NCMS Execu- commentary/blogging category. than 5 million square feet and Strategic Fund, contingent on tive Director Phil Callihan. A total of 163 Excellence in Jour- ranging in size from 14,286 to their ability to raise additional joins Ford treasury team For more information, see nalism honors were awarded to 42,770 square feet. funds. The Ann Arbor-based Michigan www.mirobotics.org. area journalists for their work Borders announced last week “It’s been a challenging Venture Capital Association is look- — Chad Halcom during 2010.

Technology is the fuel that

drives business goals and

accelerates results.

When you’re serious about intellectual property law for electrical, computer and Internet technologies…

Brinks attorneys are at the forefront of applying the intellectual property protections of patent, trademark and copyright law to emerging electrical, computer and Web technologies, as well as to business methods, domain name disputes, and many other issues related to the Internet. Brinks attorneys use their backgrounds and experience in electrical engineering, physics and computer science to counsel clients on the most effective intellectual property protection for their technologies.

Brinks has the energy and resources to fulfill your company’s intellectual 866.222.0112 property needs. usebrinks.com

Ann Arbor Ofﬁce: Suite 200 | 524 South Main Street | Ann Arbor, MI 48104-2921 | 734.302.6000 20110411-NEWS--0003-NAT-CCI-CD_-- 4/8/2011 6:04 PM Page 1

April 11, 2011 CRAIN’S DETROIT BUSINESS Page 3 VC trio blaze Health Care Extra trail themselves Linkner, Gilbert, Hermelin invest in tech with own cash Nonpatient revenue: Boost to hospital budgets, Page 37 BY TOM HENDERSON chairman and founder of Quicken CRAIN’S DETROIT BUSINESS Loans Inc.; Josh Linkner, the founder and chairman of ePrize Inc.; Inside Not waiting until they raise mon- and Brian Hermelin, chairman and ey from institutional investors, the co-founder with Gilbert of Rock- Arts collaboration to launch founders of Detroit Venture Partners bridge Growth Equity LLC, a private- LLC are using their equity firm based in website for volunteers, own substantial Livonia. Page 44 funds to start doing I can’t imagine Detroit Venture deals. They’re ex- “ Partners also has pected to announce us doing a term sheets their first two in- drawn up and Company index vestments today. is awaiting deal that These organizations appear in this week’s Crain’s One is a San signatures on Detroit Business: Francisco-based doesn’t five other Allegra Print and Imaging ...... 4 company, Flud LLC, deals it hopes Ann Arbor Downtown Development Authority . . . . . 41 Association of Corporate Counsel ...... 21 which has devel- involve the to close on in BASF ...... 43 oped a news-reader the next few Birmingham Country Club ...... 19 application for months, in- Botsford Hospital ...... 37 city of Business Golf Unlimited ...... 42 smartphones that cluding a Butzel Long ...... 33 allows users to ag- Detroit. spinoff from CareTech Solutions ...... 38 Central Michigan University ...... 1 gregate news feeds ” the University of Charles H. Wright Museum ...... 44 and blogs. The com- Josh Linkner, Michigan. Chrysler Group ...... 27 GLENN TRIEST Detroit Venture Partners LLC Civil Engineering Solutions ...... 42 Save On Everything CEO Mike Gauthier began to focus his business on pany will open a The firm is look- Community EMS ...... 39 coupons when his Marketplace Magazine stalled in the 1980s. sales office in down- ing to invest in Cultural Alliance for Southeastern Michigan . . . . . 44 town Detroit. such sectors as the Internet, digi- Delphi Automotive ...... 25 Detroit Labs ...... 43 The other is in hiredMYway.com, tal media, marketing, direct-to- Detroit Medical Center ...... 37 a Birmingham-based job recruit- consumer, sports and entertain- Detroit Pistons ...... 7 Detroit Venture Partners ...... 3 ment site that claims to simplify the ment, social media, e-commerce DuPont Automotive ...... 1 hiring process for job seekers and and software. It will not invest in Dykema Gossett ...... 30 personnel managers. It soon will biotech or advanced manufactur- Energy Conversion Devices ...... 24 Outside EPrize ...... 26 move to Detroit. ing. Executive Women’s Golf Association ...... 42 Detroit Venture Partners is a The VC firm’s investment strat- Ford Motor ...... 21 Gage Products ...... 43 venture-capital firm founded in Goodwell’s Natural Foods Market ...... 41 November by Dan Gilbert, the See Venture, Page 43 Harley Ellis Devereaux ...... 16 Haworth ...... 16 Henry Ford Health System ...... 39 the mailbox Herman Miller ...... 16 IHS Automotive ...... 43 Indianwood Golf & Country Club ...... 18 Inforum ...... 15 Innovations keep coupon company growing Kellogg ...... 11 Kim’s Produce ...... 41 $1B plant upgrade steels Ludlow Ventures ...... 43 BY NANCY KAFFER Meyering ...... 42 CRAIN’S DETROIT BUSINESS Michigan Golf Course Owners Association ...... 42 Michigan Independent Providers Association ...... 6 Groupon did us Michigan State University ...... 1 Ask Mike Gauthier what an “ Midtown Detroit ...... 41 entrepreneur is, and he’ll tell all a favor by Severstal for the future Oakland County Bar Association ...... 21 Oakland Hills Country Club ...... 1 you: a person who has an unrea- Oakwood Healthcare ...... 37 sonable conviction based on in- making people BY DUSTIN WALSH my technology. PPG Industries ...... 43 Renaissance Venture Capital Fund ...... 43 adequate evidence. CRAIN’S DETROIT BUSINESS Severstal, a subsidiary of Rus- Resort & Golf Marketing ...... 19 In Gauthier’s case, unreason- understand ... that sia-based OAO Severstal, is negotiat- Save On Everything ...... 3 able conviction has paid off. Gau- Tightening safety and fuel econo- ing the loan interest rate with the Severstal Dearborn ...... 3 SPX ...... 22 thier presides over Troy-based you could save my standards have created oppor- U.S. government. The steelmaker St. John Providence Health System ...... 38 Save On Everything, a direct-mail tunity for the struggling steel in- seeks a 2.5 percent interest rate, State Bar of Michigan ...... 21 money by printing Steelcase ...... 16 coupon company in its 26th year dustry — including Severstal Bloomberg News reported last Taubman Centers ...... 25 of operation, with 95 full-time Dearborn Inc. — that hinge on a week. Trinity Health ...... 38 employees in three states and $24 coupons out. lighter and stronger steel. The expansion of Severstal University of Michigan Health Systems ...... 38 ” Val Pak Associates ...... 45 million in fiscal-2010 sales, up To capitalize on automaker de- Dearborn, a supplier to domestic Valassis Communications ...... 22 from $21 million in 2009. Mike Gauthier, Save On Everything mand, Severstal has begun con- and upstart automakers, will help Western Michigan University ...... 1 William Beaumont Hospitals ...... 37 Thanks to the addition of a struction on a $1 billion upgrade at the company meet the growing de- Ye Olde Butcher Shoppe ...... 41 new product, Save On Cars and in Chicago, circulation started at its Dearborn plant. The focus of mand for lightweight steel from Trucks, Gauthier expects revenue 150,000 and should reach 900,000 the improvements are manufac- automakers, said Katya Pruett, to jump again in fiscal 2011 to $26 by year’s end with an ultimate turing lines to make advanced communications manager at Sev- Department index million. goal of 1.7 million, Gauthier said. high-strength steel. erstal Dearborn. The company ex- BUSINESS DIARY ...... 36 Save On Everything is mailed Distribution in the Twin Cities Severstal requested a $730 mil- pects to add 76 jobs to run the new to more than 2.6 million house- starts in August. lion loan to help fund the expan- lines, she said, adding to 1,450 ex- CALENDAR ...... 40 holds each month: 1 million in Save On Everything launched sion through the U.S. Department of isting local jobs. CAPITOL BRIEFINGS...... 10 Detroit, 1.1 million in Chicago its main website in 2000, years Energy’s Advanced Technology Ve- Severstal’s expansion project in- CLASSIFIED ADS ...... 40 and 525,000 in Minneapolis-St. before Groupon was making hicle Manufacturing Incentive cludes: KEITH CRAIN...... 8 Paul. Save On Cars and Trucks headlines. But the company also Program — a $25 billion program A $280 million continuous an- LETTERS...... 8 goes to 1.2 million households in stemming from the 2008 stimulus Detroit. Launched two weeks ago See Coupons, Page 45 designed to encourage fuel econo- See Severstal, Page 44 MARY KRAMER ...... 11 OPINION ...... 8 OTHER VOICES ...... 9 Idea overview PDFs for posterity PEOPLE ...... 36 Catch up on the recent Idea: Detroit Like to save copies of Crain’s? THIS WEEK @ RUMBLINGS ...... 46 conference and people behind the winning Subscribers can get PDF versions, WWW.CRAINSDETROIT.COM ideas, crainsdetroit.com/section/IDEA-DetroitConference-2011. crainsdetroit.com/section/toca. STAGE TWO STRATEGIES ...... 4 WEEK ON THE WEB ...... 46 20110411-NEWS--0004-NAT-CCI-CD_-- 4/8/2011 5:35 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS April 11, 2011

THE MILLER LAW FIRM StageTwo Strategies a professional corporation A look at problem-solving by growing companies.

ALLEGRA PRINT AND IMAGING Location: Plymouth perts in the fields of marketing, Description: Handles in-house design and analytics. graphic design, printing service, “In September 2010, we brought marketing and mailing. Clients on six designers, two Web design- include professional sports teams, ers, one writer and a marketing Detroit-area hospitals, financial specialist,” Tyll said. “Since then, institutions and automakers. it’s really been a great success.” President: Brian Tyll, co-presi- Mario Grech, co-president and dent and co-owner; Mario Grech, co-owner of Allegra Print and Our firm specializes in litigation: co-president and co-owner. Imaging, said the decision was • Complex Commercial and Business Founded: 1975 Tyll Grech made because it was client-dri- Employees: 40 ven. • Shareholder and Partnership Revenue: $5 million in 2010; tribution, large format work, “Our relationships with (the • Automotive Supplier $6 million projected for 2011 signs, e-blasts, website develop- clients) showed that they wanted • Class Actions Problem to be solved: Customers ment, social media or analytics. us to provide more of the prod- of Allegra Print and Imaging, one of “Marketing has many more av- uct,” Grech said. “We always had • Employment the largest members of the Allegra enues than it did in the past,” Tyll a graphic person but never • Family Law and Probate Litigation Network LLC franchise system, said. “We understand that print- enough to handle all the work. I (248) 841-2200 were using new communications ing is not the only avenue to reach would say that customers have re- millerlawpc.com 950 West University Drive, Suite 300 technologies to do a lot more work out to prospects and clients, and ally loved it.” Rochester, Michigan 48307 themselves. social media and e-marketing can Expert opinion: Nick Wagner, “Today’s technology has made be overwhelming to most busi- president of the Printing Industries it possible for individuals and nesses.” of Michigan Inc., said Allegra Print businesses alike to produce some Allegra Print and Imaging re- and Imaging’s problem is com- products they used to pay us to trained its marketing department mon and will be one of the topics produce for them, things like let- to handle the technologies and covered during PIM’s summer concepts behind the new service terhead, business forms, résumés, management conference. approach. newsletters, bulletins, etc.,” said “The owners of these printing Tyll said Allegra can quickly Brian Tyll. “Also, ‘big box’ stores companies now have to recruit help its small and midsize busi- that offer online print ordering people with new skills,” Wagner ness customers determine what have cut into our market.” said. “You’re not just going to These weren’t the only prob- options are best for carrying tar- geted messages. hire a printing press operator. lems. Marketing department bud- You’re now looking for IT, mar- Detroit + = gets had been cut, causing compa- “In most scenarios, there is keting and sales people.” nies to rely on email blasts to never just one way to get your Wagner said change is always reduce printing expenses. “(And) message across,” Tyll said. “By difficult, but company leaders postage costs continue to rise,” having all these capabilities un- should think about how they fit Tyll said, “again pushing compa- der one roof, we can quickly offer into a changing economy. nies to email marketing in lieu of our clients an affordable solution “Everything has to be focused growing with a strong (& fun!) paying for direct-mail cam- to their marketing needs.” paigns.” Risks and considerations: To do around the needs of your cus- Solution: Allegra Print and this, Allegra Print and Imaging tomers,” he said. “The thinking MI based company! Imaging had to redirect its com- had to spend more than $2 million has to be that you’re an extension pany toward becoming a “one to build a 69,000-square-foot state- of the customer, and your busi- record sales growth! stop resource” for complete mar- of-the-art building in January. ness should be about helping your keting services and production of The company also increased its customer succeed.” all media, be it printing and dis- staff by 30 percent, bringing in ex- — Shawn Wright

waking up every morning! If your company has overcome a tough challenge, other growing businesses want to hear about it. Contact Web Editor Gary Anglebrandt at [email protected] to share your story. For other news on growing small businesses, sign up for Crain’s twice-monthly Second Stage newsletter at crainsdetroit.com/getemail. BIGGBY COFFEE Franchise Info www.biggby.com Borrowing not option for Bing’s next budget

BY NANCY KAFFER vices we should be in the business Understanding the deficit is just CRAIN’S DETROIT BUSINESS of providing.” as important as understanding the Jenkins said she hopes the ad- city’s revenue, said Sheila Cock- Detroit Mayor Dave Bing is run- ministration investigates sharing rel, who served 16 years on the ning out of options. resources with other government City Council and is now an adjunct Bing’s second budget, which he entities for everything from pur- professor at Wayne State University’s is set to present to the Detroit City chasing to road maintenance. Irvin D. Reid Honors College and own- Council on Tuesday, must address Although she doesn’t know er of Crossroads Consulting. the city’s growing accumulated whether those services should be Revenue sources in the budget and structural deficits, cutting ex- shared, Jenkins said, “we should should be solid, Jenkins said, not penses while financing the city’s be looking at it.” speculative. pension funds — against the back- The first thing the Detroit City “If we don’t know a check is on drop of an expected decrease in Council’s fiscal analyst, Irvin Cor- the way, we shouldn’t include it in state revenue sharing. ley Jr., hopes Bing will address is the budget,” she said. Bing has few choices. Both short- the general-fund deficit. Cockrel said Bing also must ad- and long-term borrowing are effec- “First of all, we in fiscal feel the dress the unfunded actuarial actively halted by the city’s fiscal sit- administration needs to appropri- crued liabilities in the city’s pen- uation, says the council’s top finan- ately quantify what the deficit is as sion funds and develop a long-term cial analyst. That means the mayor of June 30, 2011,” the end of the strategy to manage health care must cut, consolidate or reduce city’s fiscal year, he said. costs for employees and retirees. services, City Hall insiders say. Corley said his department The city can’t fund its deficit with “The days of us kicking the can thinks the deficit is close to $180 borrowed money, Corley said. De- down the road don’t exist anymore,” million, not the $155 million re- troit’s low credit rating makes said council member Saunteel Jenk- ported in the city’s comprehensive short-term borrowing too expen- ins. “I’m hoping to see some pretty annual financial report. sive, long-term borrowing would re- bold initiatives on how to stream- The general-fund budget was quire state legislation, and the city line and restructure the ways we $1.8 billion in fiscal 2010. lacks a revenue stream to pledge as provide services in the city. Corley said it will take probably security for another bond sale. “At a minimum, there should be three to five years for the city to Nancy Kaffer: (313) 446-0412, some thought given to what ser- eliminate its deficit. [email protected] DBpageAD.qxp 12/10/2010 12:28 PM Page 1

FAILURE IS NOT AN OPTION.

If you’re waiting for the economy to go back to the way it was, don’t. It won’t. It can’t. Along with the rest of the world, Michigan’s economy has changed forever. By admitting and embracing these changes, instead of ﬁghting the inevitable, Ferris State University continues a 125-year tradition of transforming students for real life and real careers with 180 degrees that align with in-demand occupations. Occupations that are doing, not dying.

Basically, it comes down to our mission: Facts, ﬁgures and philosophies can only form a foundation. Knowledge without know-how is not enough. Ferris State University meshes theory with practice so students leave with more than just a piece of paper, they leave knowing what to do with what they know. 20110411-NEWS--0006-NAT-CCI-CD_-- 4/8/2011 5:08 PM Page 1

Page 6 CRAIN’S DETROIT BUSINESS April 11, 2011 Special tax not in plan to fund light-rail line operations

BY BILL SHEA briefing. a conservative estimate, White said. The state in 2008 approved an an- The remainder of the local fund- CRAIN’S DETROIT BUSINESS The 9.3-mile rail line from Hart The city’s plan to cover the nual appropriation of up to $8 mil- ing is $100 million from the private Plaza to Eight Mile Road will be line’s cost breaks down as: lion for the line’s operational costs. sector and a $25 million federal The $520 million plan to build a built entirely at once, and is ex- Ⅲ $2.8 million from fares (at The council is expected to ap- transportation stimulus grant. The streetcar-style light-rail line on De- pected to be operational by 2015, $1.50 per rider). prove the sale of up to $125 million local money, which accounts for troit’s Woodward Avenue isn’t ex- White said. Ⅲ $5 million from federal Con- in bonds for the project’s capital about 40 percent of the total project pected to require a special tax to The line’s yearly operations and gestion Mitigation and Air Quality costs. Of that, $73 million will be cost, will be used to leverage federal cover its annual operational costs. maintenance costs are estimated grants. used to cover the city’s portion of funds to cover the remainder. Instead, the city will blend a to start at $2.1 million when the Ⅲ $2 million from the state’s the rail project, and the remainder The rail plan is expected to qual- combination of fares, federal route begins service in 2015, and Public Act 51, which is transporta- will be spent on capital purchases, ify for the funding under the Feder- grants, state funds already ear- are expected to increase to $16 mil- tion project funding. such as new Detroit Department of al Transit Administration’s New marked for the project and about lion by 2030. Ⅲ $5 million from other state Transportation buses. Starts program, which is aimed at $2 million from the city’s general An analysis of the project pre- pledges. The bonds, expected to cost the partially funding qualified local fund to pay for the line annually. pared for the council forecasts the Ⅲ $1 million from federal Sec- city $10 million annually over 15 fixed guideway transit projects That’s what city CFO Norm line will carry 1.8 million riders an- tion 5309 Fixed Guideway Modern- years, are backed by federal funds such as rail. White, who is heading the rail pro- nually, or 22,000 daily riders — a ization Funds. already earmarked for capital pur- The project is wrapping up its fed- ject for Mayor Dave Bing, told the number kept flat through 2030 in Ⅲ $2 million from city’s general chases. No vote has been sched- erally required environmental im- City Council during a Thursday revenue and expense projections as fund. uled on the bonds. pact studies and will enter into pre- liminary engineering this summer. Construction is expected to begin next year. Bill Shea: (313) 446-1626, “HealthPlus takes care of my employees [email protected] so I can take care of business. That’s a Med equipment big Plus.” firms back bill to repeal bidding plan

BY JAY GREENE CRAIN’S DETROIT BUSINESS

Medical home equipment companies in Michigan are supporting a federal bill that they say would prevent many of the companies from losing hundreds of thousands of dollars in revenue or going out of business. Federal bill HR 1041 would repeal Medicare’s plan to begin a competitive bidding program later this year for home medical equipment and services. “This program, which will put local home care providers out of business, will limit who Medicare bene- ficiaries can turn to for service,” said Robert Binson, chairman of the Lansing-based Michigan Independent Providers Association, one of the groups that support the bill. The program forces patients into longer, more expensive hospital stays, which raises Medicare costs, said Binson, also president of Binson’s Home Health Centers in Center Line. The competitive bidding system, which is intended to save Medicare more than $1 billion annually, is slated to be in Southeast Michigan, Grand Rapids and Flint later this year. It would affect many of Michi- gan’s 1.6 million Medicare benefi- ciaries. The Medicare regulation estab- HealthPlus goes above and beyond for employers. lishes a competitive bidding process for companies providing equipment to Medicare patients and also limits ǆƚĞŶƐŝǀĞƐƚĂƚĞǁŝĚĞĂŶĚŶĂƟŽŶĂůƉƌŽǀŝĚĞƌŶĞƚǁŽƌŬƐ the number of companies under Worldwide emergency coverage contract. While the regulation is intended WĞƌƐŽŶĂůĂƩĞŶƟŽŶďǇĂĚĞĚŝĐĂƚĞĚƵƐƚŽŵĞƌ^ĞƌǀŝĐĞƚĞĂŵ as a Medicare cost-containment device, it could force 90 percent of the ĂƐǇƚƌĂŶƐŝƟŽŶĨƌŽŵŽƚŚĞƌŚĞĂůƚŚƉůĂŶƐ 500 Michigan home health supply vendors out of business, costing the Customizable HMO, PPO and self-funded health plans state hundreds of jobs, several company executives have told Crain’s. To enroll, contact your independent agent or call: The National Hospital Coalition on Durable Medical Equipment, a locally formed group of hospital-based 1-800-530-9071 home medical equipment compa- www.healthplus.org nies, also supports the bill. Jay Greene: (313) 446-0325, HealthPlus HMO is a product of HealthPlus of Michigan, Inc. HealthPlus PPO is a product of HealthPlus Insurance Company. © 2011 HealthPlus of Michigan [email protected] 20110411-NEWS--0007-NAT-CCI-CD_-- 4/8/2011 5:46 PM Page 1

April 11, 2011 CRAIN’S DETROIT BUSINESS Page 7 Price tag doesn’t tell full story of Pistons sale Build-out begins for

BY BILL SHEA Deloitte’s new space CRAIN’S DETROIT BUSINESS Sometimes it’s not as The build-out has begun for Deloitte LLP’s In the hours after the Detroit Pistons sale “ new Detroit headquarters in the 200 Tower was finally officially announced Friday, clear-cut as it would be on of the Renaissance Center. what fans wanted to know was “How much The move to smaller but more high-tech did Karen Davidson sell the team for?” your typical M&A space will make the accounting firm the No one involved in the deal was saying, first LEED-certified tenant in the downtown but the number was expected to eventually market. Detroit landmark. leak out — possibly over the weekend. ” Deloitte is moving from 160,000 square Sports insiders caution that the price, ex- Michael Rapkoch, Sports Value Consulting LLC feet on nine floors of the 600 Tower into pected to top the Forbes.com estimated val- 100,000 to 110,000 square feet on six floors in ue of $360 million, should be taken with a Initial reports earlier this year of a deal the 200 Tower. The Detroit office employs grain of salt. between Davidson and Gores had the sale about 1,000 people. Managing Partner Whatever the Pistons price tag is, it’s price at $420 million, but negotiations Joseph Angileri said no downsizing of staff likely to be the final amount new owner lagged as the sides haggled over the final is involved. Tom Gores pays Karen Davidson — not price and terms. “We’ve actually been hiring,” he said. what he’s writing a check for now. Insiders also said it’s in the best interest “We’ve been in our current space since 1991, A source familiar with the situation said COURTESY OF PLATINUM EQUITY LLC of the NBA and its owners to have gargan- and the space is old and traditional and not that Davidson will retain an equity stake in Tom Gores succeeded in his bid to buy the tuan sale prices. That helps drive up the conducive to the way we do work now. the team and Palace Sports & Entertainment Detroit Pistons from owner Karen Davidson. sale of the next team. When half of your workforce only spends 20 Inc. That stake will decrease as Gores, a Los The Forbes.com value estimate from percent of their time in the office, you don’t Angeles private-equity billionaire who fo- tributed to the sale.” earlier this year of $360 million represents need to build the way you used to. cuses on turnarounds, continues to pay for He noted that the 2009 sale of the San a $119 million decline in value over 12 “It’s going to be an eye-opening environ- his increasing share of the franchise. Diego Padres for $500 million was an incre- months. The financial news website attrib- ment. It will be really next generation, cut- What will be difficult, without a copy of mental deal over five years, a transaction uted the lost value to declining attendance ting edge.” the sale agreement, is figuring out what is he termed as one of the more complicated and the Detroit-area economy. Blue Cross Blue Shield of Michigan is moving apportioned in the sale price to the team in recent years. In January 2010, Davidson announced into the 600 Tower space as part of its De- and to the venues. There also is value in The $175 million sale in February of the that she intended to sell the franchise troit expansion. Blue Cross will move 3,000 lesser-known aspects of the assets, such as Buffalo Sabres, on the other hand, was more bought by her late husband, who also was employees into Towers 500 and 600, with the the full TV studios inside The Palace of straightforward, Rapkoch said. chairman of Guardian Industries Inc. He first 200 moving into Tower 500 in May. Em- Auburn Hills. The Pistons deal includes Palace Sports, picked up the Pistons for $8 million in 1974 ployees are expected to begin moving into Sports franchise sales can be more com- the umbrella corporation for the Pistons, from Fred Zollner, who had moved the the 600 tower next year. plex than Wall Street deals. The Palace and DTE Energy Music Theatre, and franchise to Detroit from Fort Wayne, Ind., The Detroit office of Gensler will do the de- “Sometimes it’s not as clear-cut as it holder of the contract to manage Meadow where Zollner founded the team in 1957. sign work for Deloitte.The build-out will be would be on your typical M&A market,” Brook Music Festival for Oakland University. The remaining 24 percent of the Pistons by Turner Construction Co., a national firm said Michael Rapkoch, president of Addi- Comerica Bank is financing the sale, ac- was split among several people, who agreed based in New York with a Detroit office. son, Texas-based Sports Value Consulting cording to the Friday press release on the to sell their shares when Davidson sold the Work is expected to be finished in August or LLC. “You don’t know how much all the oth- deal, expected to be completed by June 30. majority. September. er assets are worth and how they con- The league’s other owners must approve it. Bill Shea: (313) 446-1626, [email protected] — Tom Henderson

When you expect your law firm to provide unparalleled client service, outstanding results, exceptional value

For more information call Dykema Chairman Rex Schlaybaugh at 877.599.6800 or go to www.dykema.com

Detroit • Ann Arbor • Bloomfield Hills • Grand Rapids • Lansing Chicago • Dallas • Los Angeles • Washington, D.C.

Page 8 CRAIN’S DETROIT BUSINESS April 11, 2011 OPINION New hitters step up to bat for Detroit

ho’s coming with me?” Dan Gilbert asked that question in 2007 as he closed the luncheon honoring him W as the Crain’s Detroit Business’ Newsmaker of the Year for 2006. If Quicken Loans would move downtown, Gilbert said, who else would follow? Today, he’s answering his own question. An investment fund he launched with two partners, Josh Linkner and Brian Hermelin, is making its first investments, and small Web-related startups will soon become tenants in downtown incubator space on the south end of Grand Circus Park. (See story, Page 3.) Private-sector leadership is reviving core downtowns across Michigan as savvy executives realize they need vibrant cities to attract and retain the best talent. Another example: Kellogg Co. in Battle Creek. (See story, Page 11.) No turnaround is ever accomplished without a leader who can shape a common vision that others can rally around. Detroit needs cheerleaders with skin in the game. Gilbert, Linkner and Hermelin are Detroit’s next generation, following LETTERS the earlier investments by Little Caesars’ Mike Ilitch and Compuware’s Peter Karmanos. Don’t wreck state no-fault law Fund more slots for med grads Editor: muench stated in a news release Crain’s Detroit Business Michigan drivers have the best (since removed from the IIM web- welcomes letters to the editor. The United States went 30 years before seeing a new school insurance system in the country, site) that “the benefits policyhold- All letters will be considered for open to grant M.D. degrees. But in the past decade, a handful of but some in the Legislature want to publication, provided they are ers receive under the no-fault poli- new schools have launched, including three soon-to-open dismantle that system so insurance signed and do not defame cy in Michigan far outpace benefits companies can reap even bigger available in any other state.” schools in Michigan. individuals or organizations. profits. Proposed bills would dis- Letters may be edited for length Previously, IIM and Kuhn- The three — at Oakland, Western Michigan and Central mantle important protections for and clarity. muench have heaped praise on drivers and shift the costs and bur- Michigan’s no-fault law, saying no- Michigan universities — are aimed at reducing a pending E-mail: [email protected] physician shortage in Michigan. Starting from scratch with den to Medicaid and the taxpayers. fault personal protection insurance (“Insurers seek medical fee schedule is “the most efficient and effective new curricula can also change the way physicians are trained. on car crash claims,” March 28.) Michigan’s auto accident thresh- auto insurance law in the United Startup costs aren’t cheap; Oakland University and Currently, under Michigan’s old law became the most difficult States” and that the Michigan law William Beaumont Hospitals are trying to raise $260 million to one-of-a-kind no-fault law, Michi- in the nation for innocent accident offers “the best no-fault medical victims to recover under. Even get their joint school off the ground. gan drivers who are seriously in- benefits of any state.” The Ameri- jured in a car crash are guaran- though auto accident lawsuit fil- can Insurance Association has said So it makes sense to look at the other side of the equation: teed unlimited lifetime medical ings dropped dramatically, insur- Michigan’s no-fault system “is cost- getting more federally funded residency slots that hospitals benefits, attendant care, wage loss ance rates kept increasing. As did effectively providing the nation’s rely on to train these new grads. Larger hospitals can often and replacement services. insurance company profits. most extensive auto insurance ben- I’ve been a staunch defender of fund portions of these residencies, but smaller hospitals rely And injured Michigan drivers efits at affordable rates.” receive those benefits regardless of no-fault for my entire legal career. The worthy goal of saving mon- heavily on graduate medical education funds coming from fed- who was at fault in causing the ac- It is one of the very best things we ey on insurance premiums can be eral Medicare and Medicaid programs. cident. have in our state. It isn’t just better achieved by regulating in- As more med school grads compete for more than 4,800 ex- Senate Bills 0293 and 0294 would lawyers, consumer groups, med- surance company profits in this ical groups and hospitals, the isting residencies, some grads may be forced to leave Michi- gut Michigan no-fault protections, state, as they are regulated in al- especially unlimited lifetime med- AARP, the Coalition Protecting most every other state in the na- gan for a residency. And doesn’t that defeat the purpose of ical benefits for seriously and cata- Auto No-Fault and the catastrophi- tion, not by eviscerating the best training more docs to reduce the state shortage? strophically injured drivers. cally injured who feel this way. insurance protection in America. Note to Michigan’s congressional delegation: The fix is at The sponsors say these bills will As recently as December 2010, Steven M. Gursten the Insurance Institute of Michigan the federal level, and Congress could make it happen. “lower insurance rates.” But we Michigan Auto Law heard these promises in 1995, when and Executive Director Pete Kuhn- Farmington Hills KEITH CRAIN: The governor needs to stay the course I’ve got a lot of complaints for our tant than ours — or any- — put their financial It would be bad enough if it were nor stays the course, he might be- newly elected Gov. Rick Snyder. one else’s. house in order. just the Michigan government. It come popular when people see the I’ve got quite a few items I hope We have simply run We elected Gov. Sny- isn’t. We have severe financial state getting stronger and more he might overlook eliminating in out of money, and it’s der to do exactly what crises in our counties and our companies hiring new employees. his new budget. In fact, everybody time to pay the piper for he’s doing. I don’t think cities, too. We have simply been Some special interests yelling I talk to has a few items that they all those years we lived anyone was dumb living well above our means. We’ve the loudest seem to have gotten the would like him to spare. high off the hog. enough to think that it been spending far more than we biggest tax breaks. But if not for If none of us is happy, I guess We seem to be at the was going to be a happy generate in revenue. We have to those breaks, would they have that means that he’s doing a pretty bottom of just about situation. It isn’t now face the stark reality of our debt. come to Michigan in the first good job. We’re sharing the pain. every list that catalogs and it won’t be tomor- Our governor won’t win any place? Or did the tax breaks just Oh sure, some special interests states with problems. row. But there is proba- popularity contests anytime soon. make us the cheapest place to do are whining louder than others. Well, I don’t want to be bly no one better But it’s time we understand the business? If so, the next state over But they will have a tough time at the top of the list of trained to put our state’s horrible financial condition can always offer a bigger break. convincing the rest of us that their states that declare bankruptcy be- state’s financial house in order and the ugly means necessary to It’s tough for everybody. Every- special interest is any more impor- cause they couldn’t — or wouldn’t than our governor. get it back in shape. If the gover- body. 20110411-NEWS--0009-NAT-CCI-CD_-- 4/8/2011 10:36 AM Page 1

April 11, 2011 CRAIN’S DETROIT BUSINESS Page 9 OTHER VOICES: This is the year we can redefine Detroit

With the dizzying activ- companies obtain much nois) aren’t lying ahead. Now I observe thousands of tal- economic tragedies of 2008 — that ity taking place in indus- greater amounts of ven- This is arguably the most impor- ented Michiganders who are, for are unique in our lifetime and try, education and govern- ture capital from else- tant development of the new ad- the first time, pursuing their could serve as the trigger for ment, it is sometimes where — so far, more than ministration and one that will help dreams of creating their own busi- tremendous growth. While noth- difficult to figure out 19 times the amount of our “economic gardening” (the forma- nesses or joining other young ing is assured, we have a once-in-a- whether our region is investment. tion and organic growth of Michi- companies — excited, nervous and lifetime chance to flip the script on moving forward or just Ⅲ (The) Capitol: The gan companies) tremendously. moving face first into the kinds of our region. moving in place. But from changes being proposed in Ⅲ Culture: Throughout my ca- risks that led to our biggest busi- If we have the courage and uni- my vantage point as some- Lansing now provide im- reer in venture capital and entre- ness successes a century ago. And fied focus, years from now we will one deeply involved in mense hope to entrepre- preneurial communities, there has their quest is being supported by look back at 2011 as the year that venture capital, alterna- neurs. The proposed new been a constant roadblock to our innovative young organizations redefined Detroit and marked the tive energy and economic Chris Rizik tax plan promises fairness region’s growth: our stubborn like NextEnergy, Ann Arbor Spark, Au- rebirth of one of America’s great development, and who has been and consistency — and combined aversion to risk and change. We’ve tomation Alley, TechTown and Biz- cities. critical of many disjointed efforts with a balanced state budget acted to preserve rather than dom U. Chris Rizik is CEO and fund in the past several years, I am demonstrates to businesses that grow. Our false security blanket of There is no question that we manager of the Renaissance Ven- more excited now about the direc- our state is seeking competitive- prosperity based on the status quo face significant challenges. But we ture Capital Fund in Ann Arbor tion in which the region is heading ness and stability, and that dra- frayed for years before shredding are in the middle of a confluence of and chairman of Detroit-based than I have been during my entire matic tax rate increases (as in Illi- completely three years ago. events — largely triggered by the NextEnergy. career. The economic meltdown of 2008 was tragic for Detroit, and our people are still reeling from its devas- tating effects. But as we sit here in 2011, I have hope — based on ob- served tangible, coordinated, uni- fied activity — that we, as a region, finally realize that a key to De- troit’s future is a level of entrepreneurship that we haven’t experienced in two generations. What makes me the most bullish on our region right now is the progress that Detroit has made in what I call the “Five Cs,” the ele- ments for future entrepreneurial success: Ⅲ Cost: Wired’s Chris Anderson wrote a book last year called “Free,” describing how the costs of many business building blocks (especially those related to information technology) are dropping, making it easier than ever to create a new business. That is doubly true in Detroit, where we have an abundance of physical assets available at historically low prices and a talented, reasonably priced workforce. Ⅲ Cooperation: After a long- standing tradition of parochialism by industry, location and race that held us back, we are now seeing unprecedented cooperation between traditionally segregated groups ranging from city and sub- urb, to business and union, to government and foundation. In fact, I’m involved in a pio- neering organization called Accel- erate Michigan that is working on new entrepreneurial efforts (including creating one of the na- When your capital works harder, tion’s biggest innovation competitions) based on partnerships of businesses, universities, founda- you can rest easier. tions and state government. The synergistic results we can obtain by collectively leveraging our separate strengths are stunning. Ⅲ Capital: Without sufficient capital, entrepreneurship can’t thrive. Unfortunately, outside the automotive industry capital has long been scarce in our region. But times are changing for the positive. There are a number of Improve your cash flow and strengthen your business. new pools of money helping entrepreneurs such as the foundation- Cash flow is essential to the success of your business. Fifth Third’s comprehensive suite sponsored First Step Fund and the of Cash Management solutions can help maximize your receivables for quicker access to Michigan Pre-Seed Fund. Further, the number of venture capital. Our Business Bankers will take the time to listen, so we can recommend a customized capital funds in Michigan has tripled in the past few years. The solution for your specific business needs. Every business has a story. Tell us yours. Let’s start fund I’m honored to operate, the the conversation today. Stop in your local Fifth Third Bank, call us at 877-804-2091, Renaissance Venture Capital Fund, is the largest privately funded orga- or visit 53.com/workingcapital. nization of its kind. Using our relatively small investments in top- Fifth Third Bank, Member FDIC. Equal Housing Lender. tier venture capital funds and our network of major Michigan businesses, we help young Michigan 20110411-NEWS--0010-NAT-CCI-CD_-- 4/8/2011 10:56 AM Page 1

Page 10 CRAIN’S DETROIT BUSINESS April 11, 2011 Republicans edge closer to Snyder’s tax plan LANSING — Amid companies, as well as The past couple of weeks have vate pension exemptions of up to Comings & goings hearings, internal cau- some smaller compa- included at least one meeting with $45,120 for single filers and $90,240 cus discussions and trial Capitol nies. the business community and meet- for joint returns. Social Security ■ Kim Trent, director of the balloons, the legislative Briefings Sole proprietorships, ings between Richardville, Bolger benefits would continue to be ex- Southeast Michigan office of for- wheels appear ready to LLCs and other individ- and Snyder. empt. mer Gov. Jennifer Granholm, has turn on Gov. Rick Sny- ually owned businesses A number of major business or- But taxing pensions has elicited become student recruitment man- der’s tax plan. would not be subject to ganizations have come together to strong opposition. ager for Michigan Future Schools. Lawmakers are re- the tax and would pay present a united front in support of One option being considered by Michigan Future Schools is a De- turning from a two-week only individual income Snyder’s tax proposal. Senate Republicans is to tax only troit-based initiative of Ann Ar- break, and in the House, tax. Those businesses “Our primary concern is that future retirees. By some estimates, bor’s Michigan Future Inc. to create hearings are expected to now pay both the MBT the business tax portion of the that could generate about a third new high schools in Detroit and its continue on both the bud- and individual income proposal remain intact as it was of the $900 million that Snyder’s inner-ring suburbs. get and tax bills, which taxes. proposed by the governor,” said proposal would generate from tax- ■ Amy Lane Paul Condino, former Democra- will start to move soon, Senate Republicans Charlie Owens, director of the Na- ing retirement income. tic state representative from said Ari Adler, press sec- had been considering tional Federation of Independent Richardville could not comment Southfield, has become vice presi- retary to House Speaker Jase Bol- raising the tax rate paid by C cor- Business-Michigan. “And the rea- on how the revenue difference dent of government relations for ger, R-Marshall. porations to 6.75 percent and hav- soning for that is that it’s a game- would be made up. the Farmington Hills-based Associ- Snyder’s proposal included both ing other business entities pay a changer as proposed, and … a real Among House Republicans, ated Food and Petroleum Dealers. business-tax changes and the more corporate income tax equal to the boon to Michigan from an eco- there are many different options ■ Andrew LaBarre, former district controversial idea of taxing retire- difference between the individual nomic development, job creation being discussed, but Adler de- administrator for U.S. Rep. John ment income. income tax rate they already pay perspective.” clined to give details or indicate Dingell, D-Dearborn, has become While various ideas have sur- and 6 percent. He also said that “on the idea of what is getting support. vice president of government rela- faced on the business-tax side, But Senate Majority Leader bringing in other entities and “No matter what plan you put tions for the Ann Arbor/Ypsilanti Re- like broadening the range of busi- Randy Richardville, R-Monroe, charging them some different rate, forward, there are going to be posi- gional Chamber. He fills a position nesses covered by Snyder’s pro- said that while “everything is still you’re ending up with complexity tives and negatives,” Adler said. posed 6 percent corporate income technically on the table,” he does- that you didn’t have before.” But in the end, lawmakers and the vacated in November by Kyle tax or raising the rate that “C” n’t think that anyone is pushing On the individual income tax governor will need to make tough Mazurek, who became a govern- corporations would pay to 6.75 for the 6.75 percent rate on C cor- side, Snyder’s plan includes elimi- choices and move ahead, he said. ment affairs associate with Com- percent, it appeared as of last porations anymore. nating most credits and deduc- “We are going into this with cast Corp. in Southfield. ■ week that Senate Republicans “I think we’re going to see some- tions and broadening the base to eyes wide open that we will never Jeff Cranson, deputy metro edi- may be moving closer to the para- thing closer to the governor’s orig- which income tax is applied — a please everyone,” Adler said. tor for the Grand Rapids Press, has meters of Snyder’s initial busi- inal proposal,” he said. move the administration says is He did not have a specific sched- been named director of communi- ness-tax plan. The additional tax on other busi- more equitable and will capture all ule for acting on Snyder’s tax plan cations for the Michigan Department Snyder’s plan would eliminate ness entities is being seriously re- individual income tax in the state in the House, but said House Re- of Transportation. He replaces Bill the Michigan Business Tax and considered, he said. at a uniform rate, regardless of publicans remain on a May 31 Shreck, who is becoming communi- impose the 6 percent corporate in- “(It) ended up being more puni- source. deadline for Capitol completion of ty outreach project manager for come tax only on C corporations, tive on the small businesses than That includes taxing public pen- the state budget and are focused on MDOT. which include most public compa- we wanted it to be,” Richardville sions, which are now exempt from getting the budget and tax plan Amy Lane: (517) 371-5355, nies and many large privately held said. state income tax, and ending pri- done on parallel tracks. [email protected] FAST INTERNET MAKES CHELI’S CHILI FASTER Catch us if you can

With Comcast Business Class, we get Internet that’s as reliable as I was for 26 seasons, and up to 10 times faster than DSL and T1. We have great phone service, tons of TV options and our own dedicated local account team that provides support 24/7. Now we’re not a small business, we’re a fast business.

866-576-5202 Chris Chelios, Hockey Legend Business.Comcast.com & Small Business Owner

Restrictions apply. Not available in all areas. Speed comparison between Comcast Business Class Preferred 16 Mbps Internet service and standard 1.5 Mbps DSL and T1 service (downloads only). Actual speeds vary and are not guaranteed. Call for details. Comcast © 2011. All rights reserved.

H1AP-211V1-A11 20110411-NEWS--0011-NAT-CCI-CD_-- 4/8/2011 10:34 AM Page 1

April 11, 2011 CRAIN’S DETROIT BUSINESS Page 11

PUBLISHER’S NOTEBOOK

Mary Kramer CRAIN’S MICHIGAN BUSINESS Collaboration: Never too late Nearly three years ago, Peggy Dzierzawski’s father was dying. F rtified While she dealt with the inevitable, Dzierzawski knew she had the professional experience to help her father make end-of-life decisions. As president and CEO of the Michigan Downtown Battle Creek bulks up with emphasis on food Association of Certified Public Accountants, she had worked with BY MATTHEW GRYCZAN Hospice of Michigan to create a CRAIN’S MICHIGAN BUSINESS resource guide that could help patients and families prepare for the alk food with Jeff Samson, and his end of life. enthusiasm ignites like turning all She and her dad used it, then T eight burners of a Viking stove on tapped Hospice of Michigan for his high. end-of-life care. But his rapid-fire thoughts go well be- An artist rendering shows the W.K. Kellogg Institute for Food and Nutrition Research after a planned “He wasn’t supposed to last the yond the menu of his new restaurant in $54 million expansion. week,” Dzierzawski recalled recently, downtown Battle Creek. He believes that “and he lived more than 15 weeks. He every aspect of food — processing, safe- school districts in Barry, Branch and even went to the funeral home with ty, delivery — is the linchpin for Calhoun counties. me and picked out his casket. When the re-emergence of this city of Over the next year, the 45,000-square- he was relieved of all the (financial) 52,000. foot building will be renovated in a worry and free of pain, he was better Samson’s Malia Mediter- $14 million project funded equally by the and I was better.” ranean Bistro, opened about MATT GRYCZAN/CRAIN’S MICHIGAN BUSINESS Kellogg Foundation and the Kellogg Co. The resource guide, and a Hospice- three months ago, often has Jeff Samson says a sophisticated young to 25-Year Fund. The Kellogg Co. donated created workbook that helps people waiting lines — one result of middle-aged clientele for his new Malia the museum to Battle Creek Unlimited, a make decisions and discuss them an infusion of people and Mediterranean Bistro is a positive sign in central player in the city’s re-emergence with family members, are terrific tools money into downtown by downtown Battle Creek. plans. and a great collaboration between two the Kellogg Co., W.K. Kel- magnitude of Kellogg brings hundreds What were artists’ renderings and major statewide nonprofits. logg Founda- of employees to a downtown campus ... news releases are becoming reality. The idea was hatched when tion and other and you don’t listen to the reverberation At its meeting Tuesday, the Battle accountant Judy Trepeck served on entities. Two and start making adjust- Creek City Commission is slat- the board of the Southeast Michigan weeks ago, the ments, you’re crazy,” said ed to award construction hospice. “I heard the kind of Kellogg Co. Sampson, 53, who has been contracts for a $6.5 million questions that came to hospice staff held a ribbon-cutting watching and waiting five streetscaping project this members on a frequent basis,” for a location dubbed years for the optimum time summer that will close sec- Trepeck says. “Social workers and K2, where more than to open the restaurant he tions of Michigan Avenue, caregivers were being asked about 600 company employees named after his daughter. which winds through the financial decisions by people who had now work. Eddie Moore, 83 and a lo- heart of downtown. Work never used a CPA.” “When a corpo- cal institution as second- may begin as early as next So with the approval of the MACPA ration the board, she enlisted volunteers who shift attendant at the Michi- week, depending on the were experts in financial and tax gan Avenue parking ramp, weather. planning to begin compiling the guide. applies a different measure City Manager Kenneth The information is clear and useful, to Battle Creek’s new- Tsuchiyama said Battle from planning for the care of found bustle: You’re Creek may create a festival dependents and issuing advance lucky now to find a and events plaza for week- directives to planning a “green good parking spot. The failed Cereal City USA end activities that attract museum will reopen in 2012 funeral” and helping families connect Moore remem- visitors from around West bers how empty the as the new home of the Michigan. to the Social Security Administration. Battle Creek Mathematics ramp has been in re- “We created something from and Science Center. Construction starting scratch,” Trepeck said. The guide has cent years. The next week isn’t soon enough been embraced around the country by three-tier structure for Samson. accounting and financial associations, was built to accommodate visi- “The faster that people see we are se- which have adapted it for their own tors to the Cereal City USA mu- rious about wanting to turn this town states. seum. But the museum, around, the faster that people from the The resource guide complements a (Kellogg) needed to completed in 1998, outside are going to walk in here and hospice-created “Have you Had the “ closed four years ago put their money on the table” for invest- Talk Toolkit,” which offers consumers see a commitment by the and has stood vacant ment, he said. a checklist of questions and decisions since. that should be made before a health That probably The right recipe crisis occurs. community to ... make a will change soon. Nobody likes to think about these The Battle Creek By a number of accounts, 2011 is shap- things, but what’s worse is to face a major, dramatic change. Mathematics and ing up as a watershed for Battle Creek — health crisis in a family where Karl Dehn, ” Science Center will the culmination of projects and plans everyone has an opinion about what relocate from near- launched years ago that are finally the loved one “would want.” Battle Creek Unlimited by Springfield to the reaching completion. So much has hap- April is designated “financial former museum in pened piecemeal, involving so many literacy month.” Maybe that’s a good fall 2012. The cen- players, that the best way to keep everytime to resolve to consider the ter provides ac- thing straight is to follow one common inevitable — and the unexpected — celerated math thread: food. and make some decisions now. You and science In the past two years alone, there has can download the free guide, training to been a cascade of food-related news: “Financial Affairs at the End of Life,” 350 students Ⅲ A $54 million expansion of the W.K. in 16 on both organizations’ websites, See Battle Creek, Page 12 hom.org or www.michcpa.org.

JEFF JOHNSTON/CDB 20110411-NEWS--0012,0013-NAT-CCI-CD_-- 4/8/2011 10:33 AM Page 1

Page 12 CRAIN’S DETROIT BUSINESS April 11, 2011 CRAIN’S MICHIGAN BUSINESS Battle Creek: Downtown bulks up with emphasis on food ■ From Page 11 Kellogg Institute for Food and Nutri- city ever could help retain the lyst for downtown development. tion Research. highly educated and well-paid ex- The world’s leading producer of Ⅲ A $14 million investment by ecutives, researchers and techni- ready-to-eat cereals and a smorgas- one of the world’s largest food-test- cians at the Institute for Food Re- bord of other convenience foods ing companies in a laboratory to search, which was slated for posted earnings of $1.2 billion on serve the Midwest. expansion. revenue of $12.4 billion last year. Ⅲ The headquarters for a newly “There was concern by the com- The company has made Battle formed organization that serves as pany of the trend of deterioration Creek its home ever since founder the main partner with the U.S. Food that was going around down- W.K. Kellogg whipped up his first and Drug Administration to develop town,” says Karl Dehn, president batch of flaked grains, which ulti- national training for state and lo- and CEO of Bat- mately would become Kellogg’s cal food inspectors. tle Creek Unlim- Corn Flakes. Ⅲ The launch of the K2 building ited, a private, Dehn and James Hettinger, downtown, which consolidates nonprofit corpo- Dehn’s predecessor at Battle Creek several locations for Kellogg. COURTESY OF KELLOGG CO. ration that coor- Unlimited, oversaw research and Downtown Battle Creek is home to the Kellogg Co. world headquarters. While the dollars invested and dinates, plans developed a plan to leverage the square footage are impressive, it’s open kitchen — the whole experi- downtown Battle Creek has strug- and acquires area’s expertise in food science the steady rise of human activity ence of dining,” he says. gled over 50 years as suburban properties to and add emphasis in food protec- that tells downtown’s story. Two more restaurants are slated flight took hold and retailing foster economic tion, nationally and globally. Satis- “Our sales are up at least 30 per- to open this summer west of Malia moved to outlying malls. And like development. fied with Battle Creek Unlimited’s cent over last year at this time,” in the ground-floor space of the Grand Rapids and other communi- “They had con- overall direction, Kellogg’s top says Chris Stevenson, a manager parking ramp. ties, Battle Creek responded in the cerns about this Dehn brass approved the expansion of of the Arcadia Brewing Co., across A survey in February on behalf mid-1970s by bricking over a four- being a place where they could at- the Institute of Food and Nutrition the street from the Michigan Av- of the Battle Creek Downtown Part- block section of its main thorough- tract talent and recruit people, and Research in early 2007. enue parking ramp. “The average nership indicated that seven of 10 fare to create a pedestrian mall we needed to address that for their One outcome of the planning age of our customers is probably a business owners saw a marked in- downtown — only to reopen the long-term planning. was the creation of the International little lower than it used to be. We crease in customer traffic and rev- street in 1992 when the experiment “They needed to see a commit- Food Protection Training Institute, a get a lot of Kellogg employees for enue compared with July last failed. ment by the community to reverse nonprofit that is developing a na- happy hour and dinner after- year. It was hoped that Cereal City this trend and make a major, dra- tional curriculum for an integrat- ward.” But downtown finding itself would reinvigorate downtown six matic change in how we did down- ed food safety system. New types of customers are with more affluent and cosmopoli- years later. But the attraction town development.” During the past two years, the what Samson sees at Malia, too. tan residents and downtown work- closed after it mustered only about With a 157,000-square-foot ex- institute has trained more than “We have a young to middle- ers is far from a coincidence. a third of its projected attendance. pansion on the drawing boards 1,300 food inspectors from 47 states aged clientele who like fresh foods, The top management of Kellogg and a proposed consolidation of its and seven countries. It also provid- homemade pastas, local produce had discussions in late 2006 with Porter Street building and other ed emergency training for inspect- when available, scratch sauces, A frank exchange of views executives of Battle Creek Unlim- operations, Kellogg certainly had homemade dressings, view of an Like many Michigan cities, ited to determine whether the core the financial muscle to be the cata- See Next Page

Within each of us is the ability to inspire others. Discover To expand horizons. To lead. the leader At Northwood University, we know leadership is in you. a quality that isn’t simply taught, it’s instilled. It requires a faculty who are role models. Men and women who are successful entrepreneurs and executives – who have directed the course of companies in many industries. It demands a relevant curriculum that goes beyond textbook learning with real-world case studies, group projects, and small interactive classes that teach you how to motivate others. You have what it takes to be a leader. Get your MBA at Northwood University.

MBA NORTHWOOD UNIVERSITY

800.MBA.9000 / 800.622.9000 www.northwood.edu

“The Case Study method really helps you understand business strategies and how to build a competitive edge. It has helped me a great deal in my career.” Willie Mason, Director of Business Development, Microsoft Corporation 20110411-NEWS--0012,0013-NAT-CCI-CD_-- 4/8/2011 10:33 AM Page 2

April 11, 2011 CRAIN’S DETROIT BUSINESS Page 13 CRAIN’S MICHIGAN BUSINESS

From Previous Page right now,” Atchu says, buoyed by en miles east of downtown hurt ing food products last year in re- a study from Battle Creek Unlimit- restaurant and entertainment in sponse to the BP oil spill in the We are making this progress ed that shows that office vacancy the central business district — in Gulf of Mexico. “ rates dropped to about 14 percent that the casino attracted people While Americans often think of in the face of the worst economy in January from about 28 percent who wanted to drink alcohol and federal regulators when it comes in July last year. smoke indoors. to food safety, most monitoring we’ve seen in Michigan Dehn, Hettinger and Cheryl “For the first year, we were real- and inspections are conducted un- Beard, director of commercial de- ly swimming upstream,” says der federal contracts by more than in a long time. velopment for Battle Creek Unlim- Dehn, Battle Creek Unlimited’s 30,000 state and local food techni- ” ited, speak with pride about how CEO. “But I think the appeal of cians under a patchwork of proce- James Hettinger, Battle Creek Unlimited far downtown has come in two downtown is starting to have some dures, says Ger- To create a campuslike environ- moves had to be orchestrated by years. But they are quick to men- impact. It’s a cool place to go.” ald Wojtala, ment, Kellogg shifted 600 employ- Hinman. tion that their organization owns Says Dehn’s predecessor, Het- executive direc- ees from its Porter Street complex With the 23 apartments devel- five downtown buildings that re- tinger: “We are making this pro- tor of the insti- to 140,000 square feet of leased oped in the Battle Creek Tower main vacant. Demolition is an op- gress in the face of the worst econ- tute. space in K2 and three floors in the last year — the first major project tion — even for the former J.C. Pen- omy we’ve seen in Michigan in a Since its Battle Creek Tower. Fourteen ten- in urban living for the city — the ney Co. store that Beard remembers long time. I think we have better launch in July ants that formerly leased space in tower is now 100 percent leased, as visiting as a schoolgirl. times ahead.” 2009, the insti- K2 took up residence in the Battle is K2. The opening of FireKeepers Casi- Matthew Gryczan: (616) 916-8158; tute has grown Creek Tower as well. All those “Battle Creek is a hot market no nearly two years ago about sev- [email protected] from four full- time employees Wojtala to more than 11 full-time and two part-time employees.

A convergence of projects Last September, Kellogg celebrated the opening of a 87,000- square-foot expansion of a pilot plant and a 70,000-square-foot expansion of offices at the Institute of Food and Nutrition Research — creating a 400,000-square-foot operation devoted to product development and process implementation. The expansion provided impe- tus for Covance Inc., one of the world’s largest companies involved in nutritional chemistry and food safety, to launch an expansion of its own. Because of its decades-long relationship with Kellogg, Covance had employees stationed in Kellogg labs in Battle Creek. Concurrent with the Kellogg expansion, Covance spent about $14 million to acquire and renovate a 30,000-square-foot building directly across from the institute. The lab, which opened in October, houses employees who will support the work of Kellogg and other companies in the upper Midwest. More than 40 people now work at the lab. “When you look at the history in Battle Creek and broader central Michigan, there’s really the potential to turn the area into almost like a Silicon Valley of food,” says James Lovett, a corporate senior vice president at Covance’s Princeton, N.J., headquarters. “Kellogg is a tremendous company, but there are other food companies located there. ... There’s a lot of pieces there that can come together to really drive economic growth of the area.”

‘More feet on the street’ “There would have been times in the past where you could have shot a cannon down Michigan Av- enue and not hit anyone,” says An- mar Atchu, vice president of marketing and leasing for The Hinman Co., based in Kalamazoo. “You would hit a lot of people now.” Over the past couple of years, Atchu and Hinman maneuvered tenants in leased space downtown to put “more feet on the street” — a phrase referenced by Kellogg Pres- ident and CEO John Bryant recently at the ribbon-cutting of the K2 building. Hinman owns K2 and the Battle Creek Tower across the street. 20110411-NEWS--0014-NAT-CCI-CD_-- 4/8/2011 10:28 AM Page 1

Page 14 CRAIN’S DETROIT BUSINESS April 11, 2011

Advertisement CRAIN’S MICHIGAN BUSINESS

Michigan’s Bold Plan BRIEFLY Statewide groups combine ter found 121 solar-power supply- chain businesses in Michigan total- Re-Envisions Affordable Housing to push transportation agenda ing 6,300 jobs and 120 wind-power Emphasis on Green, Sustainable Projects A new coalition of business, supply-chain businesses totaling community, environmental and 4,000 jobs. About 50 companies oper- Helps Propel State in New Economic Direction other interests plans to press a ate in both sectors. transportation funding and policy For information or to register, agenda in Lansing, Washington contact Linda Haas at lhaas and locally. @svsu.edu or call (989) 964-7015. Every business challenge presents opportunities for those who are visionary Transportation For Michigan, or —Shawn Wright enough to recognize them. Trans4M, hopes to gain traction on issues such as more money for Coming May 5: List of 101 best Consider Vortex Hydro Energy CEO Gus Simiao. roads and bridges and matching funds that can leverage federal dol- companies to work for in W. Mich. An important component of making housing affordable is reducing energy lars for high-speed rail — items The Michigan Business and Profes- costs. Affordable renewable electricity can also make a big contribution to that have failed to win approval sional Association once again will the environment. despite other lobbying efforts. announce “West Michigan’s 101 “We’re hopeful we’ll be able to Best and Brightest Companies to Simiao and his Ann Arbor–based accomplish something by building Work For.” The companies will be firm has exclusive license to public awareness and awareness honored May 5 at the Pinnacle Cen- with policymakers on the need to ter in Hudsonville, 20 minutes commercialize a University of be investing in transportation,” southwest of Grand Rapids. Michigan–developed device that said Arnold Weinfeld, director of This year’s winners practice in- can produce electric power from strategic initiatives and federal af- novative strategies and represent the energy in water currents. The fairs with the Michigan Municipal best practices in human resources League, a member of the coalition. in industries as diverse as automo- technology is being tested in the Last week, the Snyder adminis- tive, insurance, hospitality, com- Detroit River but is already hailed tration last week submitted an ap- munications and nonprofit organi- as a breakthrough in marine plication to the U.S. Department of zations. renewable energy. Vortex Hydro Transportation for about $200 mil- An independent research firm lion for high-speed rail improve- evaluates each entry based on Energy is targeting its electricity ments, competing with other states communication, community ini- generation for remote communities for a share of $2.4 billion in rail tiatives, compensation and bene- that are not connected to the funds that Florida turned back. fits, diversity and multicultural- Another area of attention may ism, employee education and power grid. It can also supplement be regional funding mechanisms, communities that are on the grid, Among Michigan’s leading ‘green’ innovators development, employee engage- are (from left) Vortex Hydro Energy’s Rebecca such as a regional sales tax for in- ment and commitment, recogni- or at a smaller scale, can power Macklem, CEO Gus Simiao and Jim McBain. frastructure and transportation, tion and retention, recruitment homes, apartment buildings or Weinfeld said. and selection, small business and industrial facilities. Other coalition members are the work-life balance. Michigan Environmental Council, The winning 101 companies also Simiao and his team’s innovative approach to problem solving exemplify how Michigan Chamber of Commerce, Com- will vie for 10 elite awards — one munity Economic Development Associ- Michigan entrepreneurs are identifying opportunities and actively seizing them for each category. Also, an overall ation of Michigan, Detroit Branch winner, which has excelled in all to restore prosperity throughout our state. NAACP, Michigan Suburbs Alliance, categories, will receive a “Best of Transportation Riders United and The Similar success stories will be discussed during the 13th annual the Best” award. Winners will be Right Place Inc. in Grand Rapids. announced at the event’s lun- Michigan Conference on Affordable Housing, April 11–13, — Amy Lane cheon. at the Lansing Center. The conference is the nation’s largest event The “101 Best and Brightest of its kind and is attended by experts and advocates in housing, community Summit will shine a light on Companies to Work For” is pre- development, finance and public policy. sented annually in four markets: state’s emerging solar industry West Michigan, metro Detroit, Chicago and Atlanta. Among the highlights is a new public/private partnership – As Michigan’s solar industry continues to emerge, Saginaw Val- For more information, visit the Michigan Sense of Place Council. ley State University will host the 101bestandbrightest.com. —Shawn Wright The Council was formed to promote placemaking and public policy that Great Lakes Bay Region’s 2011 So- lar Summit on April 19 in the uni- assists Michigan’s large and small cities and towns in attracting talent, versity’s Curtiss Hall. Duro-Last Roofing names CEO sparking entrepreneurism and building affordable, energy-efficient housing. Solar industry experts and busi- The Council is dedicated to community revitalization and reducing nesses interested in installing so- – a new position for company sprawl through transit-oriented, mixed-use development and walkable lar will be able to learn, share and Thomas Saeli has been named collaborate on the solar industry neighborhoods. CEO of Saginaw-based Duro-Last and its future in Saginaw, Bay Roofing Inc., a new position created and Midland counties. by the board of directors. We’re re-envisioning Michigan’s “sense of place” by raising The event will feature two fo- Saeli was recently CEO of Noble awareness of the benefits of sustainable community revitalization. rums running simultaneously. International Ltd. Before that, he “Solar in the Great Lakes Bay was vice president of corporate de- The Michigan State Housing Development Authority (MSHDA) has partnered Region” will show presentations velopment for Lear Corp. from 1999 on industry trends, outlooks, inno- to 2006. Saeli’s experience involves with the Small Business Association of Michigan (SBAM) to produce a white vations and supply-chain opportu- paper titled “Blueprint for Propelling a New Economic Direction for Michigan” growing companies through acqui- nities. sitions, joint ventures and sales in- (https://www.sbam.org/SBAM-News/News/newsid370/283/). “Making Solar Work for Your creases. Business” will target business Besides Duro-Last, Saeli will At MSHDA and at SBAM, our goal is helping today’s leaders owners interested in installing so- oversee the operations of Duro- become stronger innovators. lar technology. The discussion will Last Roofing’s sister companies focus on understanding solar fun- Plastatech Engineering Ltd., Oscoda damentals, including cost, charac- Plastics Inc., Tip-Top Screw Manufac- That’s why we encourage our state’s best and brightest to attend teristics, implementation, avail- turing Inc., Energy Solutions Insula- the Michigan Conference on Affordable Housing. For more ability and payback. tion Inc. and JRB Personnel LLC. Michigan’s solar market has Salei has an MBA in finance and information, go to www.housingconference.org. been growing. Companies such as accounting from Columbia Universi- Midland-based Dow Corning Corp. ty and a bachelor’s in economics and Hemlock Semiconductor, among from Hamilton College. SMALL BUSINESS others, are using solar panels to Since 1978, Duro-Last has pro- AssociationA of MICHIGAN operate their companies, along duced a custom-fabricated, thermo- Focusing the power of small business. with Michigan State University and plastic, single-ply roofing system Saginaw Valley State. for flat or low-sloped commercial or A recent report from Chicago- industrial buildings. based Environmental Law & Policy Cen- —Shawn Wright 20110411-NEWS--0015-NAT-CCI-CD_-- 4/8/2011 11:02 AM Page 1

April 11, 2011 CRAIN’S DETROIT BUSINESS Page 15 CRAIN’S MICHIGAN BUSINESS West Michigan, metro Detroit Inforum groups see membership jump

BY MARTI BENEDETTI other regions regions have affinity groups, personally from these experiences.” members to stay ahead of health SPECIAL TO CRAIN’S MICHIGAN BUSINESS bring state which include smaller, specialized Drain said that at the table she care trends and network with oth- membership to gatherings for those who enjoy purchased for a recent Inforum ers about the changing field. West Don’t ask the growing member- nearly 1,800. wine tastings, arts and culture, event in Grand Rapids a woman Michigan soon may join the indus- ship of Inforum’s West Michigan re- Barclay at- book clubs, dining or outdoor ac- facing a layoff made a connection try group bandwagon. gion about the recession. tributed the tivities. Doris Drain, vice presi- with a member who knows about a Barclay said a trend now is us- The professional women’s orga- resurgence to dent of commercial loans for United job prospect. ing the organization’s connections nization has positioned itself as the economy Bank of Michigan in Grand Rapids Barclay said Southeast Michi- to do business statewide. the go-to resource to help boost stabilizing and and a founding member of Info- gan members are now going be- “I know women in West Michi- their business, even during chal- the realization rum’s West Michigan office, is in yond the affinity groups to what gan who are working on meeting lenging times. Barclay by businesspeo- an affinity group and has a variety they are calling industry groups. customers in Southeast Michigan Membership numbers at the ple that during of leadership roles. So far, the groups include Automo- through Inforum,” she added. West Michigan Regional Council of difficult times they need profes- “I find it a great place to gain tive Next, dedicated to bringing to- “Likewise, senior-level executives the club climbed sional organizations such as Info- knowledge,” Drain said. “I love the gether leaders in the automotive in Southeast Michigan want to more than 48 rum even more. networking and the contacts I make and manufacturing fields, and leverage themselves in western percent between Inforum members across all the attending the events, and I grow Health Care Next, which allows Michigan.” 2008 and 2010. “When the recession hit, Southeast Mich- igan got hit a little harder than us,” said Judy Welch, vice pres- Welch ident of Info- ACCURACY AND CREDIBILITY DELIVERED rum’s West Michigan office in Grand Rapids. Growth has been steady since the Grand Rapids office opened in BUSINESS VALUATIONS 2005. Its first event sold out, draw- FORENSIC ACCOUNTING ing 700. The speaker was Leslie Murphy when she was group man- EXPERT WITNESS TESTIMONY aging partner for Plante & Moran PLLC. Membership that year hit 214, followed by 343 in 2006, 465 in 2007, 445 in 2008 and 502 in 2009. Last year, it jumped to 660. Welch said membership increased last year because more people “are seeing the value of joining.” It costs $75 to join, and members can attend events at Info- rum’s various regions in the state, including Southeast Michigan, mid-Michigan and a formative council in Southwest Michigan. Welch said 80 percent of Info- rum’s new members come by word of mouth and the rest from the organization’s corporate investor base, which has encouraged employees to join. Additionally, the West Michi- gan group has monthly, hourlong “Discover Inforum” sessions at businesses that explain what the group has to offer. She said the organization she leads made some signature moves as well. It has trained facilitators who welcome all members and provide extra help to those who are unemployed. For example, at events, facilitators seat them and introduce them to members who own companies or work for companies that might be hiring. The Southeast Michigan Region- al Council of Inforum does not have trained facilitators to help members mingle, although it offered that service at one point. In- forum President and CEO Terry Barclay in Detroit said Southeast Credentialed Professional Support Michigan Regional Council members use Inforum a different way Doeren Mayhew provides you with the critical information necessary than their neighbors to the west. to support your business and litigation needs. We combine end-to- “Members use our events for business development and to en- end capabilities with unrivaled qualifications to accurately identify, tertain customers and clients,” she present, and support findings. Our professionals look beyond the said. “They don’t necessarily want to be seated at tables to meet new numbers to reconstruct financial information that is often hidden, people. They attend with a group identifying data that can be used in all facets of litigation and non- of people they invite.” litigation matters. Whether you’re facing challenges in the Accounting, Audit, and Tax International Tax and Consulting Barclay said Southeast Michi- Corporate Finance and Strategic Services Payroll Services gan’s declining membership num- boardroom or the courtroom, Doeren Mayhew has the experience Financial Advisory Services Litigation Support and Forensic Services bers recently “have bounced back and credentials to deliver timely, accurate conclusions and opinions. Troy, Michigan 248.244.3000 www.doeren.com with a vengeance.” Membership went from a low of about 850 in 2009 to more than 1,000 recently. Those numbers combined with the 20110411-NEWS--0016-NAT-CCI-CD_-- 4/8/2011 10:27 AM Page 1

Page 16 CRAIN’S DETROIT BUSINESS April 11, 2011 CRAIN’S MICHIGAN BUSINESS Greener on the west side: Grand Rapids leads in LEED

BY DANIEL DUGGAN fications. Lansing is second with “State by state, you’ll find a nu- LEADING IN LEED CRAIN’S MICHIGAN BUSINESS 10.7 percent of the space and De- anced pattern like there is here,” Here’s a look at LEED space in 10 Michigan cities, out of nearly 18 million troit third with 7.3 percent. King said. “It all depends on the square feet of LEED-certified buildings and office interiors in Michigan: While Detroit might be the auto But that still leaves nearly two- clients and what they are looking City Square feet Buildings/interiors % of state total capital of Michigan and Lansing is thirds of the 18 million square feet for. Some companies aren’t willing 1. Grand Rapids 3.6 million 65 19.74% the state capital, Grand Rapids is of LEED space spread across the to spend the extra money to get the 2. Lansing 1.9 million 6 10.66% the green-building capital. state. Many of the other cities with certifications. Some are commit- 3. Detroit 1.3 million 7 7.26% The West Michigan city has the high concentrations of space are in ted to the program as a corporate 4. Allen Park 828,000 3 4.61% highest concentration of buildings metro Detroit. statement.” 5. Trenton 826,000 1 4.59% and office spaces certified under Michigan isn’t unique in having LEED — Leadership in Energy 6. Holland 822,000 7 4.57% the U.S. Green Building Council’s LEED buildings spread around, and Environmental Design — was 7. Wyoming 753,000 8 4.19% LEED program. said Dennis King, corporate opera- set up by the Washington, D.C.- 8. Troy 683,000 4 3.79% Grand Rapids has 20 percent of tions officer for Southfield-based based Green Building Council to 9. Ann Arbor 672,000 7 3.73% the LEED-certified square footage Harley Ellis Devereaux, an architec- provide objective criteria to rate 10. Allendale 538,000 6 2.99% in Michigan, according to a tural firm that does business the environmental performance of Source: U.S. Green Building Council Crain’s analysis of the state’s certi- across the country. buildings and office spaces. Besides having the largest per- centage of Michigan’s LEED space, Grand Rapids dominates on the number of spaces, with 55 certified buildings and 10 certified interiors. The closest to Grand Rapids is Detroit, with five buildings and two interiors. Grand Rapids’ heavy LEED presence was sown by the office furniture industry, said Renae Hesselink, chairwoman of the West Michigan chapter of the Green Building Council. Grand Rapids-based Steelcase Inc., Holland-based Haworth Inc. and Zeeland-based Herman Miller Inc. were involved with the LEED movement early as they distributed office furniture to LEED projects across the country, Hesselink said. “The furniture industry has been building its supply chain around this program for a long time,” said Hesselink, who also is vice president of sustainability for Muskegon-based Nichols, a distrib- utor of custodial supplies and green cleaning products. “The furniture industry is still very active nationally on the USGBC committees, so we have a tight connection on the west side of the state,” she said. Herman Miller, for example, has two of its Zeeland buildings and their interiors certified. Steelcase has its 600,000-square- More ﬂexible. More affordable. foot building in Caledonia certified, as well as two office spaces in near- by Grand Rapids. Haworth’s More small business-friendly. 300,000-square-foot headquarters building in Holland is also certified. But the commitment to LEED buildings is built into Grand Rapids’ philanthropic community as well, Hesselink said. Philanthropic groups that made their money from furniture — the Wege Foundation, for example, created by Steelcase founder Peter Wege — tend to push for environ- mentally responsible buildings. Running a small business is a big responsibility. Fortunately, we’re here to The Grand Rapids Art Museum, the help with a whole range of new small business-friendly plan designs—HMO, Grand Rapids Community Foundation building and the Grand Rapids Bal- PPO and EPO. Not only are they more affordable, they’re extremely ﬂexible. let Co. are all examples of this emphasis. You can virtually design your own plan. Many plan designs are even HSA “On all of those projects, some- compatible. Of course, they also include preventive care, our customizable where in donors you’re going to find the Wege name,” she said. wellness programs, and access to over 18,000 doctors and the leading area Harley Ellis’ King said he ex- hospitals. Contact your agent or call HAP today at (800) HAP-PLUS. pects Michigan to gain more LEED buildings as the economy picks up. “In Detroit, for example, there aren’t a lot of new buildings of any kind, let alone LEED-certified,” he said. “The LEED movement is a trend that has legs. So as we see hap.org companies starting to reap the re- wards, we’re going to see more companies looking for it.” Daniel Duggan: (313) 446-0414, [email protected] 20110411-NEWS--0017-NAT-CCI-CD_-- 4/7/2011 4:56 PM Page 1

April 11, 2011 CRAIN’S DETROIT BUSINESS Page 17

CRAIN’S MICHIGAN BUSINESS CRAIN'S LIST: MICHIGAN'S LARGEST LEED CERTIFIED BUILDINGS IN THE LEED Ranked by gross square footage Here’s a look at some of the largest buildings and interiors in Project name Michigan certified under the Rank Address Square feet of project Certification level Certification date Owner U.S. Green Building Council’s LEED program (details in lists at General Motors Lansing Delta Township Plant 1,500,000 Gold June 30, 2006 General Motors Co. 1. 8175 Millet Highway, Lansing 48917 left). Based on points for environmental features such as Chrysler Trenton Engine Plant 825,751 Gold March 10, 2010 Chrysler Group LLC energy efficiency, building 2. 2300 Van Horn Road, Trenton 48226 materials and proximity to public transportation, the projects are Blue Cross Blue Shield of Michigan * 792,630 Certified Oct. 9, 2007 Blue Cross Blue Shield of 3. 600 Lafayette, Detroit 48226 Michigan given a basic, silver, gold or platinum certification. Steelcase Wood Furniture Manufacturing Plant * 600,000 Silver Sept. 28, 2001 Steelcase Inc. 4. 4100 68th St., Caledonia 49316 LaSalle Bank Financial Center * 477,000 Gold April 26, 2007 LaSalle Bank 5. 2600 W. Big Beaver Road, Troy 48084 Metro Health Hospital * 468,801 Certified Nov. 13, 2008 Metropolitan Hospital 6. 5912 Byron Center, Wyoming 49509 Stryker Medical * 433,171 Silver N/A Stryker Corp. 7. 3800 E. Centre Ave., Portage 49002 Ice Mountain Bottling Plant 410,976 Certified Jan. 31, 2003 Nestle Waters North America 8. 19275 8 Mile Road, Stanwood 49346 Blue Cross Blue Shield of 404,040 Gold July 19, 2006 Archon Group / Ford Motor Co. Fairlane Green Phase I Michigan parking garage, Detroit 9. Fairlane Drive and Oakwood Blvd., Allen Park 48101 Fabri-Kal Kalamazoo 388,956 Silver April 22, 2010 Fabri-Kal 10. 4141 Manchester Road, Kalamazoo 49001 Skyline High School 380,450 Silver March 20, 2009 Ann Arbor Public School 11. 2555 Maple Road, Ann Arbor 48103 West Ottawa Public Schools - New High School 325,489 Certified May 12, 2006 West Ottawa Public Schools 12. 3685 Butternut Drive, Holland 49424 One Haworth Center * 308,000 Gold Feb. 19, 2010 Haworth Inc. 13. 1 Haworth Center, Holland 49423 Steelcase Wood Furniture Manufacturing Plant, Caledonia Renovation of the Motherhouse 300,000 Certified Aug. 2, 2006 St. Mary College and Academy 14. 610 W. Elm Ave., Monroe 48162 Michigan Technical Education Center - Lansing 290,536 Certified June 29, 2010 Lansing Community College 15. Community College 5708 Cornerstone Drive, Lansing 49817

Listed are buildings in Michigan that have been certified under the Leadership in Energy and Environmental Design award by the U.S. Green Building Council. Under the LEED program, buildings are awarded points based on environmental features such as energy efficiency, building materials and proximity to public transportation. Levels of certification are based on the number of points amassed. The projects are then given a basic, silver, gold or platinum certification. LaSalle Bank Financial Center, * Pictured at right. Troy SOURCE: U.S. GREEN BUSINESS COUNCIL CRAIN'S LIST: MICHIGAN'S LARGEST LEED CERTIFIED INTERIORS Ranked by gross square footage

Project name Rank Address Square feet of project Certification level Certification date Owner Metro Health Hospital, Wyoming Steelcase WorkLab * 90,000 Platinum Aug. 25, 2009 Steelcase Inc. 1. 1101 44th St. SE, Grand Rapids 49508 Walbridge Aldinger Project WOW 51,400 Silver May 26, 2010 Walbridge Aldinger 2. 1 Kennedy Square, Detroit 48226 United Way for Southeastern Michigan 50,000 Silver Sept. 29, 2010 United Way for Southeastern Michigan 3. 660 Woodward Ave., Detroit 48226 West Michigan Center for Arts and Technology 38,700 Silver Sept. 17, 2008 West Michigan Center for Arts and 4. 98 E. Fulton, Grand Rapids 49503 Technology Stryker Medical, Portage Siemens Industry Inc. 36,855 Certified Jan. 7, 2010 Siemens Industry Inc. 5. 45470 Commerce Center Drive, Plymouth 48170 Herman Miller Building B, west renovation 32,900 Gold Dec. 15, 2008 Herman Miller Inc. 6. 855 E. Main Ave., Zeeland 49464 Plante & Moran * 32,730 Gold Oct. 2, 2009 Plante & Moran PLLC 7. 634 Front Ave. NW, Grand Rapids 49504 8. Herman Miller BG main site 30,000 Certified Dec. 9, 2004 Herman Miller Inc. 855 E. Main, Zeeland 49464-0302 One Haworth Center, Holland URS 29,500 Silver Sept. 16, 2009 URS Corp. 9. 27777 Franklin Road, Suite 2000, Southfield 48034 United Building, second floor 28,800 Certified Aug. 16, 2007 Tower Pinkster Titus Associates Inc. 10. 242 E. Kalamazoo Ave., Suite 200, Kalamazoo 49007 Steelcase Global HQ 4E 28,380 Certified Feb. 18, 2010 Steelcase Inc. 11. 901 44th St., Grand Rapids 49501 Bicycle Factory - Grand Valley State University 25,603 Gold Aug. 16, 2010 Grand Valley State University 12. 201 Front St. SW, Grand Rapids 49504 13. Herman Miller Front Door Renovation 25,503 Gold Oct. 31, 2005 Herman Miller Inc. 375 W. 48th St., Holland 49423 Steelcase WorkLab, Grand Rapids Kandu Inc. 23,000 Certified March 4, 2008 Kandu Inc. 14. 11253 James St., Holland 49424 Aquinas College Academic Building 22,261 Silver June 5, 2009 Acquinas College 15. 1607 Robinson Road SE, Grand Rapids 49506

Listed are the office interiors in Michigan that have been certified under the Leadership in Energy and Environmental Design award by the U.S. Green Building Council. Under the LEED program, individual office spaces are awarded points based on environmental features such as energy efficiency, building materials and proximity to public transportation. Levels of certification are based on the number of points amassed. The projects are then given a basic, silver, gold or platinum certification. * Pictured at right.

SOURCE: U.S. GREEN BUSINESS COUNCIL Plante & Moran, Grand Rapids 20110411-NEWS--0018-NAT-CCI-CD_-- 4/7/2011 4:27 PM Page 1

Page 18 CRAIN’S DETROIT BUSINESS April 11, 2011 CRAIN’S MICHIGAN BUSINESS Pro golf tours return to tee it up in state

BY JASON DEEGAN SPECIAL TO CRAIN’S MICHIGAN BUSINESS

Better days are ahead for Michi- gan’s professional golf tournament scene, which withered away in 2010 as corporate sponsors tight- ened their belts. A new Futures Tour women’s pro- Working Capital fessional tournament in the Upper Peninsula — the Island Resort Cham- Hintz Aldridge pionship at Sweetgrass, near Escana- ba — debuts this June, nearly two Tour attracts up-and-coming years after the final Buick Open in women trying to advance to the IN ACTION Grand Blanc Township, the last LPGA Tour. major professional golf tourna- “We basically sold (sponsorship ment played in the state. opportunities) out in under a We partner with business owners across Michigan to help their second stage The real prizes come in 2012: two month,” Mancilla said. “It was a companies succeed beyond expectations. Our working capital options increase Champions Tour majors featuring huge response.” professional male golfers age 50 KitchenAid, a division of Benton cash ﬂow and our network capital connects entrepreneurs with the people and and older and, possibly, a return of Harbor-based Whirlpool Corp., the PGA Tour to metro Detroit. signed on as presenting sponsor of resources they need to expand. For the first time, the U.S. Senior the Senior PGA Championship Open and Senior PGA Championship from 2011 through 2014. That agree- will be played in the same state. ment helped Benton Harbor land Let us put our growth capital and financial wisdom to work for your business! Yet tournament organizers don’t the tournament in 2012 and 2014. think they’re competing for media Hintz said the story behind Har- attention, corporate sponsors or bor Shores — how the entire resort fans. and real estate development is be- The Senior PGA, to be played ing used to rejuvenate the strug- HennesseyCap.com May 24-27, 2012, at the Golf Club at gling Lake Michigan city — should Harbor Shores in Benton Harbor, help attract corporate business. and the U.S. Senior Open, to be Hospitality packages include 10- held July 12-15 at Indianwood Golf & guest skyboxes for $14,000 on the Country Club in Lake Orion, will be 16th hole, 20-guest reserved skybox- separated by nearly 170 miles and es for $32,000 on hole 17 and 40-guest seven weeks’ time. The tourna- private suites for $84,000 on hole 15. ments will bring Champions Tour “It is just a good feeling when stars Tom Watson, Fred Couples you hear what they are doing” at and Bernhard Langer to Michigan. Harbor Shores, Hintz said. “We “I think we’ll have a little bit of hope it causes people to invest.” competition, but that will be good Over at Indianwood, Aldridge for everybody. It will make us said three rooms and six tables in work harder,” said Jeff Hintz, the clubhouse and four tents on tournament director for the Senior PRESENTS the course already have been sold PGA Championship. for the U.S. Senior Open. Packages His counterpart at the Senior range from $225,000 for a 100-per- Open — Keith Aldridge, vice presi- son package in the men’s grill of dent of Indianwood — expressed the clubhouse to $20,000 for 10 more concern about competition guests at a dining room table. from a potential PGA Tour event in “This summer will be a big push metro Detroit. The Detroit Golf Club for us” to sell more, Aldridge said. is actively seeking a tournament, Both tournaments expect to A sponsored webinar although a PGA Tour representa- boost their local economies. Ald- tive declined to comment. ridge said officials at the United “That would be some serious States Golf Association told him the PART ONE OF A THREE-PART SERIES competition,” Aldridge said. “I tournament will have an economic think it would hurt them and us to impact of $35 million to $40 million. have both at the same time. There Hintz said the most recent eco- Protecting are only so many dollars to go nomic impact numbers for the around.” Benton Harbor area come from the yourself At least one Michigan company 2007 Senior PGA Championship at Joe Angileri, Mark Ford, Robert Biskup, is starting to pump some of those Kiawah Island, S.C., an event that Partner, Principal , Director, dollars back into the game. In generated $23 million, according to from fraud: Deloitte LLP Deloitte & Deloitte Financial March, General Motors Co. returned the Office of Tourism Analysis at Touche LLP Advisory Services LLP to golf by sponsoring the Cadillac the College of Charleston. Data security, social media Championship in Miami. Nick The Senior Open could attract and cloud computing Twork, director of communications up to 120,000 spectators to metro Join us to learn more about: for Cadillac, said the GM luxury Detroit for the week, roughly dou- brand would “like to bring golf back ble the 60,000 people Hintz esti- Risks associated with social media (e.g. to Detroit,” but hurdles remain. mates for the Senior PGA Champi- potential damage to brand image from employee, “The biggest obstacle is the onship in Benton Harbor. customer, or other third-party postings). date,” Twork said. “There aren’t a Behind the scenes, contracts are whole lot of open weekends (on the being negotiated with local busi- Protecting your business when an out-of-sight, PGA Tour schedule) at this point.” nesses. Aldridge said the Warren- If the Island Resort Champi- based Andiamo Restaurant Group out-of-mind myriad of computer tasks happen on onship at Sweetgrass is any indica- will handle catering at the Senior April 28|Noon – 1 p.m. EST someone else’s equipment, i.e., in “the cloud”. tor, other Michigan companies ap- Open. He’s in talks to attract one of pear ready to invest in tournament the Detroit automakers as a car To learn more, please visit Preventing fraud, and mitigation strategies to golf. Tournament co-Chairman sponsor. Lexus is the national car www.crainsdetroit.com/crainsevents consider if/when fraud occurs. Tony Mancilla said his event, at sponsor of the USGA. the Island Resort & Casino, attracted Said Aldridge: “It would look FREE to Crain’s readers 22 major sponsors, including three pretty disappointing if we had just banks and a hospital. The Futures Lexus in the parking lot.” 20110411-NEWS--0019-NAT-CCI-CD_-- 4/7/2011 4:26 PM Page 1

April 11, 2011 CRAIN’S DETROIT BUSINESS Page 19 CRAIN’S MICHIGAN BUSINESS Golf course owners see fog lifting

BY JASON DEEGAN more choices for people to play. We SPECIAL TO CRAIN’S MICHIGAN BUSINESS have changed some of the price structures, but we also looked at the After several years of pessimism times and days that we needed peo- and doubt, golf course owners and ple (to fill up empty tee sheets). We operators around the state feel adjusted some twilight rates by good about their prospects for the changing the time of the day. We coming season. made specials for local people. We Positive signs — auto industry are trying to fill as many tee times bonus checks, pre-sold golf pack- with different price structures than ages at Michigan golf shows, the we ever used to.” continued funding of the state’s Growing the game and attract- Pure Michigan tourism promotion ing new players, including women campaign, the pent-up enthusiasm and juniors, remain major prob- of winter-weary golfers and better lems, however. vibes from the economy — all add “We’re building some momen- up to hope, something in short sup- tum,” said Graham of the Golf Asso- ply in recent years. BRIAN WALTERS ciation of Michigan. “Is that going According to Golf Datatech, an in- Shepherd’s Hollow in Clarkston is one to lead to growth year after year? I dustry research firm in Kissim- of the public courses expected to see hope so. I feel more bullish today mee, Fla., rounds of golf in the a bump in rounds played. than I have in quite a while. We’re state were down 1.6 percent last “There are very few country moving in the right direction.” year from 2009. But that number clubs that are stable,” Richards outperformed the national average said. “The middle-of-the-road coun- decline of 2.3 percent. try club has lost half its members. Gaylord Golf Mecca, a marketing That just freed up $6,000 to $8,000 to alliance of 21 courses near Gay- play at Shepherd’s Hollow (a 27-hole lord, reported a 4 percent increase course in Clarkston) and play up in rounds played last year. Paul north.” Beachnau, executive director of Joe Basso, secretary-treasurer the Gaylord Area Convention and Visi- of the Detroit Club Managers Associa- tors Bureau, which oversees the al- tion, said metro Detroit is oversat- liance, expects 3 percent to 5 per- urated with private clubs. David cent growth in rounds played this Graham, executive director of the season, a number Beachnau said Golf Association of Michigan, said he SM was conservative. can envision a future with fewer HEALTHBYCHOICE ACHIEVEMENTS. “The turnaround of the auto private clubs throughout the state. companies has been huge. People Basso, general manager and CEO are starting to put some money of Birmingham Country Club, said his back in their pockets. With high club has been fortunate, adding A NEW WAY TO IMPROVE YOUR gas prices, that will be to our bene- members the past 18 months. fit, too. People will stick close to “You’ve got clubs in the area that home.” have lost 50 to 100 members over BOTTOM LINE. Kevin McKinley, director of golf the past two to three years,” he at Treetops Resort in Gaylord, said said. “They are surviving, but they “the efforts of Travel Michigan and are having to reinvent them- the Pure Michigan golf campaign selves.” over the past few years, including Discounted greens fees are the the use of local Gaylord footage in new normal at public courses look- national media buys, has helped to ing to attract more players, al- increase our out-of-state golf busi- though some think the practice ness, which is higher than it ever must be scaled back for long-term has been.” success. Dave Richards, owner of Resort Jim Dewling, president of Total & Golf Marketing in Bloomfield Golf Inc., which operates seven Hills, said an informal poll last courses in Michigan, said Mystic year indicated that 10 percent of Creek, a 27-hole course in Milford, the business at high-end courses attracted 2,000 more rounds last he contacted came from out-of- year than in 2009. But discounting state golfers. He said one of his cut into a stagnant bottom line. clients, Forest Dunes Golf Club in “The revenue came from the dri- Roscommon, saw its rounds in- ving range and pro-shop sales increase 29 percent last year. stead of the greens fees,” Dewling “The group business is coming said. “Rounds are all driven by back. ... People are willing to spend price point. ... We’re all stealing more money,” Richards said. (customers) from each other.” Enhancing that economic im- Bernie Friedrich, vice president pact: The state now has fewer of golf, marketing and retail at courses competing for those addi- Boyne USA Resorts, takes a different tional dollars. approach. He thinks that creative The meltdown of the economy golf packaging last year helped changed the golf industry in Michi- Boyne have its best year since gan. There is less competition to- 2006. The company owns and oper- day — nearly 30 18-hole courses and ates eight courses and three re- as many as 25 nine-hole and shorter sorts in northern Michigan. so-called executive courses closed By offering so many choices and As health care costs climb and worker health declines, in the state over the past decade. prices, Boyne increased the num- The Traverse City area was hit ber of rounds of golf nearly 10 per- employers are asking for more from their beneﬁts plans. We particularly hard, with three top- cent, Friedrich said. Some pack- can help. Our new HealthbyChoiceSM Achievements plan notch courses closing since 2008: ages included breakfast. Packages combines excellent beneﬁts with opportunities to improve High Pointe and LochenHeath, both with unlimited golf were popular. your employees’ health and reduce costs — theirs and yours. in Williamsburg, and King’s Chal- The key, Friedrich said, is “get- lenge in Cedar. LochenHeath and ting the price of golf where the Call your agent or Priority Health at 800 471-2504 or visit King’s Challenge, now called Mani- masses can afford it, so the masses priorityhealth.com to learn more. tou Passage, have since reopened can play and grow the game.” under new owners. Richards calls northern Michigan The surviving public courses one of the best value golf trips in should benefit from the declining the country. memberships of private clubs. Said Freidrich: “We have a lot DBpageAD.qxp 4/5/2011 9:59 AM Page 1

Getting deals done: That’s the business of Dawda Mann.

Dawda Mann business attorneys Bill Rosin, Earl Johnson, Jessica Allmand, Bob Anderson and their colleagues are dedicated to helping businesses and the individuals who own them – no matter where they are in the world. We serve Fortune 500 corporations, automotive OEMs and suppliers, and emerging businesses. Looking for a law ﬁrm dedicated to the needs of business? Call Dawda Mann. DAWDA MANN Taking on our clients’ challenges as our own

Dawda, Mann, Mulcahy & Sadler, PLC 39533 Woodward Ave, Ste 200, Bloomﬁeld Hills, Michigan 48304 | (248) 642-3700 | www.DawdaMann.com 20110411-NEWS--0021-NAT-CCI-CD_-- 4/7/2011 5:06 PM Page 1

April 11, 2011 CRAIN’S DETROIT BUSINESS Page 21

general and in-house counsel awards In-house attorneys’ role in complicated times: Guides

through the maze ISTOCKPHOTO.COM From automaker bankruptcies to the Awards. More than 60 attorneys were lude towards retirement are long gone.” ness Law Section and the Oakland County reinvention or sale of major companies in nominated, and nine winners and final- Judges (see below) looked at evidence Bar Association. The awards will be pre- Michigan, the best legal minds shepherd- ists were selected in six categories. of significant achievements to idenfity sented in an evening reception and ing those transactions don’t always work Standout corporate and in-house counsel the winners. Examples include transac- strolling dinner that follows an afternoon for law firms. As in-house and general attorneys navigate complicated contract tions, cost containment and community summit with speakers, panels and educa- counsels, they serve a single client — the negotiations, defend their companies in legal service. tional sessions. The event will be held at company that employs them. high-stakes litigation and defend some of The May 3 summit and awards event to the Suburban Collection Showplace in Novi. This year, Crain’s joined three profes- an organization’s most important assets. honor the winners is presented in part- For a more detailed story on the awards sional organizations to create our first- As one nominee noted: “The days when nership with the Association of Corporate event and summit, see Page 29. To regis- ever General and In-House Counsel in-house counsel could be viewed as a pre- Counsel, the State Bar of Michigan’s Busi- ter, visit www.crainsdetroit.com/events

ment bailout amid the economic Overall Winner collapse in late 2008 but also has THE HONOREES slowed its efforts to return to an in- The contest judges felt so strongly t a glance, the legal strategy vestment-grade credit rating. about the accomplishments of at Ford Motor Co. under The SEC and capital markets David Leitch (left) of Ford Motor A David Leitch may seem team, a division of the corporate Co. that they created an overall counterintuitive — hold the line on and commercial practice group, winner category to provide special litigation, avoid delegating to out- oversees public disclosures updat- recognition. Other honorees: side firms, give your team members ing investors on its debt, which was Publicly Traded Companies, added responsibilities and eventual- reduced by $14.5 billion during 2010. Revenue Over $1 Billion ly you will have less work to do. The company also in February Winner: Todd Wiseley, Valassis But it seems to have worked. obtained final approval before U.S. Communications Inc., Page 22 Leitch, group vice president and District Judge Stephen Murphy in Finalist: Robert Spence, SPX Test general counsel at Ford for six Detroit on a settlement without and Measurement, Page 22 years, said the Dear- damages with a class of salaried and Publicly Traded Companies, UDGETS born automaker has hourly employees who sued in 2006 Revenue Under $1 Billion B cut his department for violations of the federal Employ- Winner: Jay Knoll, Energy Corporate about in half ee Retirement Income Security Act. Conversion Devices Inc., Page 24 Counsel through buyouts and At issue in that case was whether Finalist: Chris Heaphy, Taubman prez: Don’t structured cuts since Ford should have offered options Centers Inc., Page 25 expect spending to he took the post. To- within 401(k) plans that included Privately Held Companies, pick up with day around 100 attor- Ford stock, or advised employees Revenue Over $1 Billion economy, neys work in litiga- on the stock value, when it plunged Winner: David Sherbin, Delphi Page 32 tion, corporate and in the past decade while the compa- Automotive LLP, Page 25 commercial, intellec- ny went through employee buy- Finalist: Holly Leese, Chrysler tual property, tax law and regulato- outs, layoffs and lost market share. Group LLC, Page 26 ry compliance practices, plus the The company agreed to offer ad- Privately Held Companies, company’s general auditor’s office. visory services to employees on Revenue Under $1 Billion But Ford legal has adapted retirement investments, in lieu of Winner: Gabe Karp, ePrize LLC, through team members “wearing DAVID LEITCH damages, and paid less than Page 26 more hats” and finding greater de- $1.3 million to cover attorney fees Age: 50 Nonprofit partmental efficiency. Leitch said Title: Group vice in the settlement. By comparison, his department also makes initial General Motors Corp. in 2008 settled Winner: Carol L.J. Hustoles, president and general Western Michigan University, assessments on all litigation and counsel for $37.5 million a 401(k) class ac- Page 28 then prepares to take all cases to Company: Ford Motor Co. tion filed in 2005, after its stock trial after that stage. Claim to fame: Advising had dropped 75 percent. AWARDS JUDGES As a result, Leitch estimates law- Ford and overseeing “We made some good judgments suit caseloads dropped from around disclosures on the private early on in choosing not to settle Rob Kurnick Jr., president, 2,500 pending claims a few years ago borrowing that allowed the the case but also in making deci- Penske Automotive to about 2,000 today. He also esti- automaker to avoid a sions that really set the value of Michael Polotzke, CFO, mates that the automaker prevails government bailout, and its it,” Letich said of the Ford labor Plastipak Holdings Inc. in 80 percent of matters that go to subsequent $14.5 billion case. “It’s a little harder for the Lisa DeMoss, director, graduate trial, so the total payout on court reduction in debt. plaintiffs to make a case in court insurance program, Cooley Law judgments is lower over time than if that we should have advised them School (former Blue Cross Blue DAVID DALTON Shield of Michigan general counsel) the company had settled cases. not to invest with us after our The trial-ready strategy also is term strategy that only works if they were heavily involved in Toy- stock price went on later to make a Lorraine Shaloub, vice president, general counsel. intended as a deterrent to plaintiff you’re willing to execute it over an ota (over uncontrolled acceleration) very substantial rise.” External affairs and public policy firms looking for early settlements extended period. and factors that aren’t related to us.” The company also boasts a for Chrysler Canada on cases of marginal worth. “Our caseloads are down signifi- Leitch’s team also advised the 77 percent participation rate in pro Lloyd Semple, dean, University “This strategy started before I cantly, though showing the exact company in a 2006 mortgage of most bono legal work, including volun- of Detroit Mercy School of Law got here, so I can’t take credit for cause-and-effect is a tricky thing. of its assets to borrow $23.5 billion teer work for legal clinics or tax ad- Janet Kelley, senior vice president it — but we constantly tweak and The plaintiffs’ bar can also get dis- to finance restructuring, a move vice to low-income taxpayers. and general counsel, Meijer Inc. refine it,” he said. “And it’s a long- tracted, and we know for a while that helped Ford avoid a govern- — Chad Halcom 20110411-NEWS--0022,0023-NAT-CCI-CD_-- 4/7/2011 4:22 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS April 11, 2011 Focus: General and In- Ho Publicly Traded Companies, Revenue Over $1 Billion

cooley.edu TODD WISELEY Age: 41 Title: General counsel and senior vice president of administration and corporate secretary Company: Valassis Communications Inc., Livonia Claim to fame: Coordinated and led four law firms in Valassis’ successful lawsuit against its archrival that Cooley ended with a $500 million settlement.

odd Wiseley graduated from Year-round the University of Michigan’s T law school in December 2007 It was a big and became a full-fledged lawyer “ Options the following May — a career move project to jump into sought for him by his employer, right off the bat. ... It Winner Livonia-based January • May • September direct-mail and undoubtedly could be newspaper coupon marketer Valas- sis Communications Inc. the biggest case in RON, CLASS OF MAY 2011 He would end up quarterback- ing Valassis’ successful litigation my career. against Rupert Murdoch-owned ” At Cooley, many people are finding that it is possible to fit law school into their busy lives. competitor News America Marketing Todd Wiseley, Valassis Communications Inc. With four campuses across Michigan – Lansing, Auburn Hills, Grand Rapids, and Ann Arbor – Inc. in an unfair-competition case. The archrivals share the entire Cooley offers classes year-round, days, evenings, and weekends. Students receive a legal education U.S. coupon market. shared mail service for 10 years. that provides them with the knowledge, skills, and ethics that distinguishes Cooley’s over 15,000 News America settled for Wiseley had been working as a $500 million in January 2010, on the CPA on the finance side since 1992, graduates worldwide. eve of a trial before U.S. District but Valassis in 2005 told him it Learn about Cooley Law School at cooley.edu Court Judge Arthur Tarnow. Part wanted him to be a lawyer. He of the deal was an agreement that News America would use Valassis’ See Next Page 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 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.” Scan this code to learn more about Cooley Publicly Traded Companies, Revenue Over $1 Billion ICG.0311.037.AD ROBERT SPENCE Age: 54 Title: Vice president of business development and general counsel Company: SPX Test and Measurement, Canton Township Claim to fame: Leading SPX through several acquisitions, including three in four months.

ver the past seven years, France, Germany and Scotland. Charlotte, N.C.-based SPX Spence was able to get the deals O Corp. grew its footprint done quickly because of his knowl- through more than a dozen acqui- edge and understanding of legal is- sitions, largely on the back of its sues and business development, in-house coun- said Tom Riordan, president and sel team led by CEO of Neenah Enterprises in Finalist Robert Spence. Neenah, Wis., and former group Spence, vice president at SPX. president of business development “Bob has a good sense of exist- and general counsel for SPX and ing business and how to put a deal based in Canton Township, navi- together,” Riordan said. “Because gated three acquisitions in just three months during 2007 — in See Next Page

HERO NOMINATIONS WANTED Crain’s Detroit Business responsible for a is seeking nominations discovery or for developing for Health Care Heroes, a a new procedure, device special report on health or service that can save care professionals that will run in lives or improve quality of life. the Sept. 12 issue. Physician — Honors a physician The program will honor top-notch whose performance is considered medical innovators and patient exemplary. advocates — the inspiring leaders Allied health — Honors an who bring new meaning to the word individual from nursing or allied “dedication” through their efforts to health fields deemed exemplary by save lives or improve access to care. patients and peers. Winners will be chosen in five Trustee — Honors leadership categories: and distinguished service by a Corporate achievement in health health care trustee. care — Honors a company that has A panel of health care judges will created an innovative health choose the winners. Visit benefits plan or has solved a www.crainsdetroit.com/nominate to problem in health care submit a nomination. The deadline administration. is May 6. Questions? Contact Advancements in health care — Jennette Smith at (313) 446-1622 Honors a company or individual or [email protected]. 20110411-NEWS--0022,0023-NAT-CCI-CD_-- 4/7/2011 4:23 PM Page 2

April 11, 2011 CRAIN’S DETROIT BUSINESS Page 23 In- House Counsel Awards

From Previous Page dominate. graduated in two-and-a-half years The Wayne County verdict was and was promoted to general coun- under appeal, but the federal court sel on July 1, 2009. settlement resolved both the feder- That meant he was Valassis’ inal and state court matters, along house lead on the News America with a separate civil case at Los An- cases that had been in three differ- geles County Superior Court. ent courts since 2006, and he had to Now that the News America liti- coordinate the activities of the law gation is over, there’s a sense of re- firms the company was using: lief personally and among Valassis Miller, Canfield, Paddock and Stone executives, Wiseley said. PLC, Ann Arbor; Plunkett Cooney “It was obviously a historic PC, Bloomfield Hills; David Mendel- event in our company’s history,” son PC, Birmingham; and The he said. “There was a sense of Baskin Law Firm PC, Detroit. ‘Wow, I can’t believe it’s over.’ ” Innovative legal “It was pretty much a baptism by There’s also a little humor at the fire,” he said. “I had to really get up expense of the rookie general to speed and be the primary liaison counsel. strategies to for four local law firms that were “There were a lot of jokes about representing us. It was a big project peaking too early,” he said, chuck- to jump into right off the bat, for ling. help build your Valassis or any general counsel, pe- Wiseley was the only in-house riod. It undoubtedly could be the attorney working on the cases. biggest case in my career.” Three others in the internal legal business - one Valassis had been seeking $1 bil- department handled the day-to-day lion in damages. business of running the legal side It won a $300 million jury ver- of the company. block at a time. dict against News America in July Now he’s working on the legal 2009 before Wayne County Circuit paperwork stemming from the set- Judge Michael Sapala for unfair tlement. He also oversees the com- competition and tortious interfer- pany’s human resources depart- ence with business practices. ment, but the News America case Valassis alleged that News is never too far from his mind. America coerced client companies “I stop once a month and pinch Learn more at How can we assist? to participate in its freestanding myself. I can’t believe it’s behind P: 248.539.9900 insert, or FSI, newspaper products us,” he said. FOSTERSWIFT.COM E: [email protected] in markets where Valassis tends to — Bill Shea

From Previous Page LANSING | FARMINGTON HILLS | GRAND RAPIDS | DETROIT | MARQUETTE | HOLLAND of his financial and legal experience, he can play the good cop or (Spence) has a bad cop in putting deals together, “ balancing the legal side and finan- good sense of cial liabilities without having to leave the negotiating room.” existing business SPX’s most recent transaction, led by Spence last summer, al- and how to put a deal lowed SPX to enter the China mar- together. ket by taking a minority stake in ” Launch Tech Co. Ltd. in Shenzhen. Tom Riordan, Neenah Enterprises “Entering these strategic markets gave us the ability to show off motive test and measurement unit, our entire product portfolio, even which Spence works for, is based if the company represents only a in Canton Township. Spence was small part our overall goals,” he also the founding member of the said. Legal Issues Council for Troy- Since Spence joined SPX in 2001, based professional organization the manufacturer of equipment for Original Equipment Suppliers Associa- the power, auto and industrial in- tion. He served as chairman of the dustries has grown revenue from council in 2003. $3.9 billion to $4.9 billion. Its auto- — Dustin Walsh

WIXOM MICHIGAN I-96 at BECK RD Enterprise Business Park

Great Image & Location RIGHT PRICE Join Industry Leaders From 4,000 to 28,000 Sq Ft RIGHT SIZE Konica Minolta New Construction WILL FINISH TO SUIT Business Solutions Combine Office, Warehouse & Hi-Tech Henry Schein Dental Centers Ground Monument & Building Signage Smith & Nephew Grade Level Doors & Loading Docks Orthopedics

For Leasing Information ... Call:

John Fricke 248-948-9000 THE TEAM No Signature. No Results. 20110411-NEWS--0024,0025-NAT-CCI-CD_-- 4/7/2011 3:21 PM Page 1

Page 24 CRAIN’S DETROIT BUSINESS April 11, 2011

Professional Jet Management Focus: General and In-House Counsel Awards Publicly Traded Companies, Revenue Under $1 Billion

just in money but also in time. You JAY KNOLL want to avoid it if you can.” Age: 47 Last year, ECD thought it might Title: General counsel and chief administrative officer be facing a possible lawsuit by a Company: Energy Conversion Devices Inc., Rochester large Chinese battery maker that Hills was considering not renewing a li- Claim to fame: A savvy negotiator who balances ECD’s cense. The key to a settlement, said need to protect intellectual property with a common- Knoll, was understanding the li- Experience the difference. sense approach based on the cost of litigation. censee’s need for ECD to be flexible “and for us to have the disci- All inclusive management at an affordable ﬁ xed cost. pline not to overreach in our nergy Conversion Devices has demands or to overreact when our •Forming partnerships now about 250 patents and has de- licensee’s demands didn’t meet out expectations. •Small, midsize and large cabin jets E veloped a reputation as an Litigation is very innovative but relatively small “ “We got the license renewed to •Reduce your total operating cost company on the worldwide stage. costly, not just in our satisfaction. Did we get all we •Maximize your aircraft efﬁ ciency But it’s one wanted? No. Did they get every- while enhancing your aircraft that is willing to money but also in thing they wanted? No. But we Winner both got something we could live appearance, performance & value www.skywayavjets.comwww skywayavjets com litigate fiercely to protect its in- time. You want to with.” tellectual property. Knoll said his legal team was also Call today for more information, Geoff Sherman 1.248.568.0979 In fact, its two main business avoid it if you tested last year by ECD’s changing thrusts are the manufacturing business model. Over the past 12 and installation of its flexible so- can. months, it has evolved its solar lar roofing materials for large ” business from simply providing construction projects and licens- Jay Knoll, roofing materials for contractors to No one covers the ing its patents — particularly Energy Conversion Devices Inc. managing and developing large Detroit Regional BONUS patents involving nickel-metal roofing projects on its own. hydride batteries for consumer That required much more com- DISTRIBUTED TO ALL MACKINAC counsel and chief adminstrative Chamber Mackinac use. officer, said the secret is being able plex legal work. Instead of just CONFERENCE ATTENDEES Nearly every maker, if not all to reach an agreement short of a signing off on a contract to supply Policy Conference makers, of AA and AAA batteries lawsuit that leaves both ECD and a material to a project manager, Crain’s PLUS! DIGITAL DISTRIBUTION for consumer use worldwide have licensee satisfied. ECD now has to handle permits, like to 50,000 Web readers license agreements with ECD. “Our patent portfolio is battle- roof leases and contracts with sup- AD CLOSE: May 12 ECD’s annual revenue is $300 mil- tested, and we’re battle-tested in lit- pliers. “It’s far more complex and lion. igation,” said Knoll, who has been requires far more engagement and For advertising opportunities, call Marla Downs But lawsuits are time-consum- ECD’s general counsel for 10 years. creativity,” said Knoll. at 313.446.6032 or e-mail [email protected] ing and costly. Jay Knoll, general “But litigation is very costly, not — Tom Henderson Turn to the “deal-makers” at Howard & Howard.

Areas of M&A Expertise:

Our top ranked M&A group offers scalable resources and vast industry expertise to cover every aspect of your M&A transactions from qualifying buyers, IP due diligence, negotiation of deal documents, to post-closing integration. Applying innovative thinking and trusted insight, we deliver deals from the millions to the billions to help make your merger, acquisition or divestiture successful and cost effective – everytime.

Hear from our M&A specialists at the Crains’ General and In-house counsel summit on, There’s no substitute for experience. Howard & Howard. Law for business. Tuesday May 3, 2011 www.howardandhoward.com | 248.645.1483

Ann Arbor, Michigan | Detroit, Michigan | Chicago, Illinois | Peoria, Illinois | Las Vegas, Nevada 20110411-NEWS--0024,0025-NAT-CCI-CD_-- 4/7/2011 3:22 PM Page 2

April 11, 2011 CRAIN’S DETROIT BUSINESS Page 25

Focus: General and In-House Counsel Awards Exceptional Leadership. Publicly Traded Companies, Revenue Under $1 Billion Privately Held Companies, Delivered. Revenue Over $1 Billion CHRIS HEAPHY Age: 53 DAVID Title: Senior vice president, general counsel and secretary SHERBIN Company: Taubman Centers Inc., Bloomfield Hills Age: 51 Claim to fame: Keeps the legal team involved early Title: Vice on in business processes, such as retail leasing, to president, speed things up and head off problems. general counsel and chief he most important legal is- Heaphy and the legal depart- compliance Michigan’s Premier Retained sues Chris Heaphy has re- ment are closely involved with officer T solved are perhaps the ones the company’s business units to Company: Delphi Automotive Executive Search Firm that didn’t occur. advise on business deals early on. LLP, Troy Heaphy, general counsel for And there’s no shortage of deals: Claim to fame: Navigating Bloomfield Taubman owns 26 malls across Delphi through its four-year Hills-based the country and signs leases regu- Chapter 11 bankruptcy in which Finalist Taubman Cen- larly. the supplier shed nearly $6 billion in debt and $22 billion ters Inc., has Part of being involved means LLC in liabilities. made it a priority that employees knowing how to help. He recently International Executive Search can raise issues or concerns moved the legal leasing function Tel: +1.248.645.1551 • www.huntergroup.com anonymously and without fear of in-house to speed up the leasing avid Sherbin faced the retribution. Through that, he’s process for potential tenants. challenge of his career in been able to reduce claims “That’s the advantage of having D October 2005 when his em- through early intervention. a general counsel, that you can ployer, then-Delphi Corp., filed “They have many ways to com- get involved early in the business Chapter 11 bankruptcy. municate with us, anonymously, meetings,” Heaphy said. He led a not anonymously, by phone, by Before joining Taubman in Winner team of in- email,” he said. “We keep posters June 2005, Heaphy represented house and ex- on the walls in the kitchens and Taubman for nearly 20 years. He ternal lawyers break rooms, and make sure the represented the company for 19 through four years of litigation information is available.” years at Miro Weiner & Kramer PC. involving a securities class-ac- It’s part of a larger compliance When the firm dissolved in 2004, tion suit, contract disputes with program focusing on extensive Heaphy went to work for Honig- the United Auto Workers and its for- training and education. Training man Miller Schwartz and Cohn and mer parent General Motors Corp., and education starts on the first continued to represent Taub- and a pullout by its reorganiza- day for company employees, fol- man. tion sponsors in 2008 during the lowed by regular retraining. — Daniel Duggan See Next Page 2 We get you

2. Definition The legal team at Sullivan, Ward, Asher & Patton consists of award-winning lawyers with real-world experience in your industry. Unlike other law firms that rely solely on textbook knowledge, we have worked in your field and have a first-hand understanding of the legal issues you’re facing. As a client, you’ll benefit from our collective expertise and out of the box thinking tailored specifically to your case. Not to mention, our long-standing national reputation as one of the best law firms in the Midwest.

Visit us at swappc.com to ﬁnd out more.

Michigan Ofﬁce 248.746.0700 | Illinois Ofﬁce 312.214.3175 20110411-NEWS--0026,0027-NAT-CCI-CD_-- 4/7/2011 4:24 PM Page 1

Page 26 CRAIN’S DETROIT BUSINESS April 11, 2011

From Previous Page Privately Held Companies, industry downturn. “We had an extraordinarily Revenue Over $1 Billion complicated legal strategy,” he said. “We had to settle all the HOLLY LEESE bankruptcy issues as the economy was imploding, which at the Age: 55 time was unprecedented.” Title: Senior Delphi — which supplies vice president, general counsel electronics, entertainment sys- and secretary tems, and thermal, powertrain Company: and safety technology to the au- Chrysler Group tomotive industry, as well as LLC medical and consumer equip- Claim to fame: ment — exited bankruptcy in Overseeing and preparing October 2009 when Elliott Man- argument and brief templates for agement Corp. and Silver Point arbitration appeals by dealerships Capital LP acquired its assets, al- appealing their termination. lowing the supplier to emerge. Delphi shed nearly $6 billion in debt and $22 billion in pension, union and retiree liabilities. “Our entire legal team did a phenomenal job (through bankruptcy), and David’s lead- Privately Held Companies, ership was the cornerstone of that success,” said Rodney Revenue Under $1 Billion O’Neal, Delphi’s CEO. “He was a force and absolutely critical GABE KARP in leading us through to a bright future.” Age: 41 Earlier this month, Delphi Title: announced it would buy back Executive vice I’M AN MSU LAW ALUM... president and GM’s equity stake in the suppli- general counsel er for $3.8 billion to simplify its Company: capital structure and acquired EPrize LLC, Preparing future lawyers to use the Pension Benefit Guaranty intellect, ambition, and ethics Pleasant Ridge Corp.’s ownership stake for Claim to to solve the world’s problems. $594 million. fame: Leading ePrize through the www.law.msu.edu Sherbin serves as the first legal nettles of sweepstakes vice president of the Adat promotions based on new Shalom Synagogue in Farming- communications technologies. ton Hills and will serve as its president in 2012. n 2004, when Gabe Karp joined — Dustin Walsh what was then a 5-year-old I provider of online sweepstakes services to some major brands, he We had to settle was heading into uncharted legal “ territory. all the bankruptcy EPrize was Winner trying to get issues as the into sweepstakes campaigns using text mes- economy was sage systems. The question at the time, he said, imploding, which wasn’t so much about existing laws regarding online sweepstakes — at the time was there weren’t any — but what other laws might be used against them. unprecedented. With brands such as Nextel and ” Coca-Cola among the early cus- David Sherbin, tomers asking for text-based cam- Delphi Automotive LLP paigns, Karp knew there would be 20110411-NEWS--0026,0027-NAT-CCI-CD_-- 4/7/2011 3:42 PM Page 2

April 11, 2011 CRAIN’S DETROIT BUSINESS Page 27 Focus: General and In-House Counsel Awards

icking the right battles — wasn’t prudent for a recipient of in its practice groups for corporate Leese said Chrysler legal lost sev- and spotting the top talent U.S. Treasury funds.” affairs, commercial affairs, trade- eral people in that period but offset P — have helped Holly Leese It was far more Instead, Chrysler in 2010 resolved marks, patents, employment, trade the downsizing with a “serendipi- navigate the tricky legal waters of “ disputes with 310 of the 418 dealer- and distribution and product lia- tous” influx of new talent. bankruptcy re- difficult than any ship claims in the federal arbitra- bility, including five attorneys in The automaker picked up new Finalist organization, tion process short of a hearing. Mexico and two in Canada. attorneys from the nation’s top staff cuts and one of us expected. The company prevailed in 76 of That’s around the same size as law firms that shed jobs after the the global eco- In fact, we had the 108 cases that reached a final before bankruptcy, when Robert lending market collapse that dried nomic downturn. outcome. Nardelli became chairman and a up several of their major practice Leese, a Chrysler staff attorney wanted to bring a Leese said 16 of the 32 winning series of buyout offers began to groups in early 2009. for 31 years and senior vice presi- dealers received letters of intent or trim the staff. — Chad Halcom dent, general counsel and secre- constitutional resolutions after the hearings; an- tary for the automaker since 2008, other 16 are litigating terms of rein- said up to half of her current staff challenge. statement in various courts, with FOR LEASE was involved in the national ” the lion’s share in Detroit. streamlining of dealers during re- CRYSTAL GLEN Holly Leese, Still, about 90 percent of all cas- 39555 ORCHARD HILL PLACE organization. Chrysler Group LLC es were resolved for “substantially NOVI, MI “It was far more difficult than less” than what a full arbitration any one of us expected. In fact, we was set up (by Congress),” she would cost, she said. had wanted to bring a constitu- said. “But we weren’t in a political Chrysler legal has 48 attorneys tional challenge to the process as it position to do that, or at least it

no way to fly under the radar. able to steer ePrize away from en- up promotions — whether the pro- “When you’re doing something tanglements with lottery regula- motions are run by ePrize or not. for Coca-Cola, you can’t hide that,” tions and subsequently became a His work caught the attention of Karp said. sought-after expert on modern the Puerto Rican government. In The main problem was that of a sweepstakes campaigns. He said 2009, the island wanted to rewrite concept associated with lotteries he has spoken at 30 conferences its regulations pertaining to called “consideration,” meaning is about online and text-based sweep- sweepstakes and invited Karp to there a financial cost to the con- stakes, related privacy issues and help. The regulations went into ef- » Beautifully Finished Suites FOR MORE INFORMATION PLEASE CONTACT: sumer when choosing to acquire online customer reward programs. fect later that year, turning the is- From 667 - 15,360 SqFt the ticket. EPrize today reports annual rev- land from a place notorious for its DAN VERDERBAR » Upgrade Your Image, Without [email protected] With a lottery, the answer is a enue of $49 million. difficult sweepstakes regulations Increasing Your Costs clear “yes” because the purchase Recognizing an opportunity to to one with a near-perfect model » Highly Visible, Easy to Locate, of a ticket is required to partici- use ePrize’s rare legal experience, that states can follow, Karp said. Professional Class A Ofﬁ ce Space 248.324.2000 pate. In the case of a text message, he turned ePrize’s legal department The rewrite means the common » Amenities Include: Café, Hair Salon, WWW.FRIEDMANREALESTATE.COM which can have a small fee from a cost-containment center to a verbiage on contests saying “void Tenant Conference Facility, Full charged for it by the mobile carri- profit-making one by offering cus- in Puerto Rico” could become a Service On-Site Management ofﬁ ce eCODE 160 er, the answer is less clear. tomers indemnification against law- thing of the past. INFORMATION IS SUBJECT TO VERIFICATION AND NO LIABILITY FOR ERRORS OR OMISSIONS IS ASSUMED. WE HAVE NO REASON TO DOUBT ITS ACCURACY, BUT WE DO NOT GUARANTEE IT. As general counsel, Karp was suits and consultations on setting — Gary Anglebrandt 20110411-NEWS--0028-NAT-CCI-CD_-- 4/7/2011 3:40 PM Page 1

Page 28 CRAIN’S DETROIT BUSINESS April 11, 2011 Focus: General and In-House Counsel Awards Nonprofit “It is a continuing, proactive, versity’s two foundations. CAROL HUSTOLES preventative approach throughout Hustoles said her risk manage- It is a continuing, Age: 58 each and every day that I am at the ment efforts have included a focus “ Title: Vice president for legal affairs and general university,” Hustoles said. “We on having people throughout the proactive, counsel try to work with our (university) university recognize that her office Employer: Western Michigan University clients to say call us before the fi- exists and can help with myriad preventative Claim to fame: Heightening awareness of how legal nal decision is made or the final matters. Examples include review- issues can impact university areas, and a preventative letter goes out, or if you’re thinking policies and practices, drafting approach approach to reduce risk of litigation and legal liability. ing about policies, before imple- and reviewing contracts, address- menting them … call us so that we ing student affairs and faculty is- throughout each and can provide another set of eyes, sues, and advising on laws that af- every day that I am n her 12 years as Western Michi- cited in results: A drop in litigation the legal perspective.” fect areas including research, gan University’s chief legal coun- over the past One of two in-house attorneys, employment, intellectual property at the university. I sel, Carol Hustoles has main- Winner decade, from 12 Hustoles’ university clients in- and international subjects. ” tained a focus on outreach, lawsuits in vari- clude the board of trustees, presi- One item she instituted was a communication and prevention. ous stages in dent and vice presidents, adminis- Web page that contains information Carol Hustoles, It’s helped the university avoid 2001 to none currently, and no law- trators, deans and associate deans, and legal resources on such areas as Western Michigan University or reduce liability and is a factor suits lost during that time. and affiliated entities like the uni- copyright law, freedom of information requests, collective bargaining agreements and a contract review checklist. The checklist helps university administrators consider key questions like payment terms, indemnification issues and compliance with current law. Jan Van Der Kley, associate vice president for business and finance at the university, said Hustoles “has done extensive review of forms, practices and policies to ensure that we are compliant with both federal and state requirements” and is active nationally and with colleagues at other universities, gathering knowledge that benefits Western. She said Hustoles has diverse expertise — whether it’s property transactions, contractual or personnel issues, or Michigan’s constitution — that is important in a university with broad operations. One current area of assistance is with a new school of medicine that the university is establishing, helping sort through such areas as legal structure and relationships with and between two hospitals and the university, Van Der Kley said. “She’s so dedicated and is so knowledgeable,” Van Der Kley said. “We have had significant pe- riods of time when we have actually had no legal issues at all, and that’s because of the great advice and counsel she provides.” That not only saves the university money, but “it helps to set the tone of the institution as one of high standards and good ethics Every lawyer must pass the bar. and sound practice,” she said. Ours go on to raise it. — Amy Lane Online database gives access to nonprofits’ financial information Wayne Law, a Best Value Law School, offers students Attorney General Bill Schuette a strong and comprehensive legal education. And we and the state’s Charitable Trust Section have launched an online are always getting better. In the last month alone, we database to give access to the financial information filed by partnered with Windsor Law for North America’s ﬁrst Michigan charities and others that have registered to do fundraising Transnational Environmental Law Clinic, celebrated in the state. The site, AGCharitySearch, in- a record number of outstanding student performances at moot court and cludes information on Michigan charities and out-of-state charities mock trial competitions, and brought more than a dozen legal scholars and that are raising money here, as well as professional fundraisers. practitioners to campus for innovative lectures. It’s no wonder our graduates The database also provides financial data for the charities, tak- go on to make signiﬁcant contributions in their communities and beyond. en from their IRS tax forms, and for larger charities the audited statements they provide to the AG’s office. For smaller nonprofits law.wayne.edu not required to fill out 990 forms, AGCharitySearch provides finan- AIM HIGHER facebook.com/WayneStateLawSchool cials taken from their registration materials. — Sherri Welch 20110411-NEWS--0029-NAT-CCI-CD_-- 4/7/2011 5:16 PM Page 1

April 11, 2011 CRAIN’S DETROIT BUSINESS Page 29 Focus: General and In-House Counsel Awards Legal eagles fly high at Crain’s inaugural awards program, summit

BY ROGER CASTILLO ban Collection Showplace in Novi, nior vice president for labor, im- Crain’s awards) immigration and employee bene- SPECIAL TO CRAIN’S DETROIT BUSINESS will offer strategies and insights migration and employee benefits leads Ford’s liti- fits issues that are pending in Con- from some of the most influential le- for the U.S. Chamber of Commerce. gation, tax, cor- gress and the federal agencies, Crain’s Detroit Business and its gal leaders from our region and the Maura Corrigan, director of the porate and intel- while Corrigan was appointed Jan. partners in the inaugural General nation. Among the topics of inter- Michigan Department of Human Ser- lectual property 6 by Gov. Rick Snyder as the direc- and In-House Counsel Awards will est: labor and employment law, vices and a former Michigan efforts. tor of the Michigan Department of honor top legal minds and provide compliance, intellectual property, Supreme Court justice, will speak Before work- Human Services. a forum for legal education at a diversity and law department man- during the awards celebration. ing for Ford, For more information or to regis- May 3 summit. agement best practices, plus the lat- Solomon, a career NLRB attor- Leitch was ter, visit crainsdetroit.com/events or The Association of Corporate Coun- est trends in the automotive sector. ney, was named acting general deputy counsel call (313) 446-0300. The cost of the sel, Michigan Chapter is working Speakers for the event include: counsel by President Barack Oba- Leitch to President summit is $75 a person, $70 per per- with Crain’s — along with the Lafe Solomon, acting general coun- ma in June. It is the agency’s top George W. Bush, son for groups of 10 or more and $90 State Bar of Michigan Business Law sel for the National Labor Relations position for investigation and advising the president and his staff for walk-ins. For the awards recep- section and the Oakland County Bar Board; David Leitch, general counsel prosecution. on a variety of legal issues. (See sto- tion only, the cost is $60 each, $55 for Association — to co-host the event. and group vice president for Ford Leitch (named this year’s over- ry on Leitch, Page 21.) groups or 10 or more and $75 for The summit, 1-8 p.m. at the Subur- Motor Co.; and Randy Johnson, se- all winner for the inaugural Johnson is responsible for labor, walk-ins.

CRAIN’S SEEKS NOMINATIONS FOR 40 UNDER 40 AWARDS Crain’s Detroit Business is seeking nominations for the 2011 class of 40 Under 40, which recognizes young achievers based on factors such as financial impact and civic and community leadership. Winners will be profiled in the Oct. 3 issue, and Crain’s will celebrate their achievements at an October event. To be eligible, nominees must be under age 40 as of Oct. 3, 2011. For sponsorship opportunities, please call (313) 446-6052. Nominations must be received by April 13. Visit www.crainsdetroit.com/nominate to fill out the online form. Questions? Contact Jennette Smith, deputy managing editor, at [email protected] or (313) 446- 1622.

CRAIN’S SEEKS SALUTE TO ENTREPRENEURS NOMINATIONS Do you know an entrepreneur who deserves applause? Entrepreneurs make up a growing portion of Michigan’s employment base and are of increasing interest to the local business community. Crain’s Detroit Business will publish in its Nov. 21 issue a “Salute to Entrepreneurs.” These awards will recognize problem-solving, innovation and business acumen among entrepreneurs and second-stage companies. Winners will also be honored at an awards event on Nov. 17, at Greektown Casino Hotel. Our goal is to highlight the next generation of entrepreneurial Employers & Lawyers Working Together leaders who are helping to reinvent Southeast Michigan. Nominations %ORRP¿HOG+LOOV3DUNZD\6XLWH%ORRP¿HOG+LOOV0, are due by July 22. Visit www.crainsdetroit.com/nominate 3KRQH to submit a candidate or for more www.ogletreedeakins.com information. Questions? Contact Gary Anglebrandt at (313) 446- 1621 or [email protected]. 20110411-NEWS--0030,0031-NAT-CCI-CD_-- 4/7/2011 3:27 PM Page 1

Page 30 CRAIN’S DETROIT BUSINESS April 11, 2011 Focus: General and In-House Counsel Awards Flat fees for legal work can fall flat without proper planning

BY CLAIRE BUSHEY The catch-all term of alternative in use for the majority of legal CRAIN NEWS SERVICE fees describes a number of pricing work. According to a 2010 survey structures, including fixed fees, by the Washington, D.C.-based As- It was an awkward situation: contingency fees, volume dis- sociation of Corporate Counsel, The law firm had agreed to file the counts, or a combination of them. 84 percent of in-house counsel use client’s trademark application for In theory, the fees offer clients standard hourly rates for the bulk a fixed fee, but an unexpected de- more predictable legal expenses of their outside legal work. velopment pushed the legal work- and reward lawyers for efficient Most law firms aren’t rushing load outside the scope of the origi- service while removing the temp- to embrace alternative fees either. nal agreement. tation to tack on needless billable The same survey found that At least that’s hours. 86 percent of in-house counsel re- how the attor- But even with ported resistance from outside neys at Davis Mc- Many lawyers guideposts, some- firms about using a payment Grath LLC saw it. “ times the scope of arrangement other than the bill- The client didn’t are trained to get to work is unpre- able hour. agree, failing to dictable, leaving a understand that the bottom of firm in the lurch. the flat fee only Patrick Stanton, Learning from mistakes encompassed a something and 44, office managing Flat fees require discipline and straightforward member of Detroit- planning to make them profitable, filing with no le- spend whatever based Dykema Gos- and the legal profession possesses gal snags, firm sett PLLC, said his a spotty reputation when it comes member Kevin time necessary. firm recently han- to time-management and budget- Thompson says. ” dled a commercial ing. “The client David Brown, Much Shelist lease for a shop- “Many lawyers are trained to said, ‘I paid you ping center that get to the bottom of something and to file it,’ ” said grew more com- spend whatever time necessary ... Thompson, 40, who also heads the plex than expected. Although the and that may be inconsistent if law practice management and time “was way over the original you told the client $100,000 in fees,” technology committee for the deal,” the firm honored the said David Brown, 50, chairman of Chicago Bar Association. “It was a arranged fee to preserve the rela- the management committee at law little difficult. They finally real- tionship with its client. firm Much Shelist Denenberg Ament ized we weren’t trying to extort “We said, ‘We’ll stick by it, as & Rubenstein PC, also in Chicago, them for more money, but it was long as you remember next time which has annual revenue of uncomfortable at first.” that we did,’ ” he recalls. $40 million to $50 million. Alternative fee arrangements — Alternative fees are designed to To ensure lawyers don’t become so called because they present an provide transparency and pre- victims of their own zeal, experts alternative to the once-ubiquitous dictability for clients and lawyers say, they need to carefully choose billable hour — have gained trac- alike. But while flat-fee structures which legal matters to handle on a tion in the legal world in the past are becoming more commonplace, fee basis, use historical data to set few years thanks in part to the re- they aren’t the panacea some advo- realistic fees, learn from mistakes cession. The buzz prompted one lo- cates might have imagined. and sometimes prioritize the long- cal lawyer to jokingly dub alterna- And despite the furor to declare tive fees “the new black.” the billable hour dead, it remains See Next Page 20110411-NEWS--0030,0031-NAT-CCI-CD_-- 4/7/2011 3:27 PM Page 2

April 11, 2011 CRAIN’S DETROIT BUSINESS Page 31 Focus: General and In-House Counsel Awards

From Previous Page ity alternative fees bring to their outside counsel costs. But some in- term client relationship over house counselors, notably Richard short-term gain. Baer, general counsel for Denver- Julissa Ruiz, 36, is a solo practi- based Qwest Communications Inter- tioner in Homewood, Ill., who han- national Inc., have criticized flat dles family law, fees, arguing they immigration and encourage law real estate mat- To create a firms to cut cor- ters. She bills “ ners to maximize many cases on a successful profits. flat-fee basis and Allstate Corp.’s insists on pay- alternative fee law department ment up front to chief of staff, minimize her fi- arrangement, you Bruce Goldberg, nancial risk. Still, 51, said the North- she’s learned to need someone who brook, Ill.-based be choosy. She insurance giant is once accepted a works for the client testing fees. divorce case in- with legal “You can’t just volving children flip a switch,” he that exceeded experience. said. “We want to what she’d ” give alternative planned when cal- Mike Evers, Evers Legal Search fees a try, see how culating the fee. they work out, , She doesn’t take Leaders in the Making Today, more than ever learn from them those cases anymore. and proceed from there.” Explore over 100 undergraduate, global competition and corporate streamlining require innovative thinking and leadership abilities. “I took the risk and took the In the end, both parties must feel master’s, and doctoral programs hit,” she said. “It’s trial and error, Continuing your education can be key to ensuring your success. From biomedical engineering to like they’re benefiting or the in Colleges of Architecture and really, on these types of things.” health information technology management, Lawrence Technological University offers innovative arrangement won’t last. Matthew Design, Arts and Sciences, Historical data can cut the risk Share, director of marketing at of costly error, many attorneys Engineering, and Management. degrees and fast-track certificate programs to prepare you for the jobs of the future. Alfa International, a global network say. Knowing how long it took in of law firms, said lawyers and the past to file a summary judg- Waive your application fee at www.ltu.edu/applyfree clients share responsibility to ment motion or take a deposition keep tabs on billing and revisit the can help law firms predict how 2011 2011 2011 terms if a clear winner or loser AMERICA’S BEST BEST COLLEGES MILITARY much time and effort a similar UNIVERSITIES in the Midwest FRIENDLY emerges. U.S. News & Princeton SCHOOL measure will take in the future, World Report® Review® “Whenever you’re starting a G.I. Jobs® allowing them to set an appropri- brand-new process, it’s never go- ate fee. ing to be perfect the first time out,” Lawrence Technological University | 21000 West Ten Mile Road, Southfield, MI 48075-1058 | 800.225.5588 | [email protected] | www.ltu.edu Share said. In-house legal knowledge is key This story originally appeared in Even for clients, the advantages Crain’s Chicago Business. of alternative fees aren’t necessarily clear-cut. Unless a company employs a general counsel, it’s probably wiser to stick with the billable hour, said Mike Evers, 46, president of Evers Legal Search, a Chica- go firm with $1 million in annual revenue that places in-house lawyers with companies. CFOs usually lack the legal expertise to know whether a given fee consti- tutes a good deal. “To create a successful alternative fee arrangement, you need someone who works for the client with legal experience who knows Congratulations to our clients who are it’s a good arrangement,” Evers said. Many clients praise the reliabil- Crain’s General and In-House Counsel

LEARN TO PROTECT YOUR Award winners and ﬁnalists BUSINESS FROM FRAUD Crain’s Detroit Business and Deloitte LLP present part one of a free, three-part webinar, “What Chris B. Heaphy Jay B. Knoll Every Private Company Needs to Know,” noon-1 p.m. April 28. The Taubman Company LLC Energy Conversion Devices, Inc. Panelists include Joe Angileri, managing partner for Michigan, Deloitte LLP; Mark Ford, principal, Deloitte & Touche LLP; and Robert Biskup, director, Deloitte Financial Advisory Services LLP. Among the topics to be discussed David G. Leitch will be data security in the world of social networking and cloud Ford Motor Company computing, and the top things you should consider to protect your business from fraud. For more information or to register, visit Honigman Miller Schwartz and Cohn LLP www.crainsdetroit.com/events. For DETROIT LANSING OAKLAND COUNTY ANN ARBOR KALAMAZOO sponsorship information, contact www.honigman.com Marla Downs at (313) 446-6052 or [email protected]. 20110411-NEWS--0032-NAT-CCI-CD_-- 4/7/2011 5:12 PM Page 1

Page 32 CRAIN’S DETROIT BUSINESS April 11, 2011 Focus: General and In-House Counsel Awards Corporate law budgets to remain lean despite uptick in the economy

BY CHAD HALCOM CRAIN’S DETROIT BUSINESS Companies are still reluctant Don’t expect corporate legal “ budgets to expand with the econo- to spend more and are hesitant to my, as most general counsel offices expect both internal and ex- revisit legal budgets for now. ternal spending to resist the ” recovery throughout 2011. Brian Smith, “You continually have pressure Association of Corporate Counsel on corporate counsel to do more with less. And I don’t expect that Corporate legal counsel re- on outside legal services nation- pressure is going to change anytime versed a budget growth trend of wide. The median U.S. legal budget soon,” said Brian Smith, president more than 10 years and cut total le- was $24 million. of the Association of Corporate Coun- gal spending by 1 percent in the Local experts don’t expect de- sel Michigan chapter since Jan. 1. U.S., according to the 2010 law demand for legal services to grow “The company may grow with partment survey released in Octo- again soon, even though the na- the economy, but what we tend to ber by Hildebrandt Baker Robbins, a tional recession ended more than find is when the economy does Houston-based legal consulting 18 months ago, according to the worse some areas of legal activity and professional services firm. U.S. Department of Commerce. expand, and others decline. Total legal spending growth “General counsel (attorneys) “As a whole, even though the ranged from 5 percent to 9 percent might be under less pressure, but economy is getting better, compa- over the preceding nine years, at just because business is improv- nies are still reluctant to spend an average of 7 percent. Inside le- ing doesn’t mean they’re going to more and are hesitant to revisit legal spending was up about 1 per- gal budgets for now.” cent, offset by a 5 percent decline See Next Page

Congratulations, counselor.

Western Michigan University General Counsel since 1999 and Vice President for Legal Affairs since 2002

Carol L.J. Hustoles

Winner of Crain’s 2011 Government/Nonproﬁt General Counsel Award 20110411-NEWS--0032,0033-NAT-CCI-CD_-- 4/8/2011 10:39 AM Page 2

April 11, 2011 CRAIN’S DETROIT BUSINESS Page 33 Focus: General and In-House Counsel Awards

From Previous Page The ratio of outside legal spend- have license to radically increase ing to internal spending dropped their legal spend,” said Justin Companies may from 2.2 to 1 in 2000 to 1.5 to 1 in Klimko, president and managing “ 2009, according to the 2010 “Manag- shareholder at Detroit-based try to reduce ing Outside Counsel Survey” by the Butzel Long PC. national ACC organization and “They can tend to get whip- legal Serengeti Law, a legal project man- sawed, too. Companies may agement and electronic billing firm. try to reduce legal spending spending by Total legal spending amounted by hiring outside lawyers, so to 0.56 percent of total corporate hiring outside revenue in 2009, compared with CODE RED some work moves outside again. But they still do want lawyers. 0.46 percent in 2000, according to arrangements (with outside the survey. ” There typically isn’t room in Are you in danger of compliance violations? firms) that give a continued Justin Klimko, corporate legal budgets for “like- sense of what their total legal Butzel Long PC budgets will be.” to-have” line items, experts say. Butzel convened an alternative State University Law School as well “You either have litigation to fee study group last year on best as past general counsel for the Fed- defend or you don’t, or there’s a practices among firms that man- eral Trade Commission. change in the law that requires age flat corporate legal budgets by “My little sense is, in-house de- some regulatory compliance,” offering various fee alternatives to partments have done a little more Smith said. “But you will either the standard billable hour. The hiring in specializations or niches have something to do, or don’t group is expected to present its they have a need to build on. When have something to do. There aren’t Business Systems Solutions findings to the firm’s leadership a specialty comes along, some- a lot of things in the budget that Management Systems Consulting | Training | System Improvements are just nice to do.” within two months, Klimko said. times an outside firm will lead on BUSINESSSYSTEMSOLUTIONS.ORG 313.505.5524 The ACC has 422 members in its that before a company may take at- Chad Halcom: (313) 446-6796, | Michigan chapter, and Smith said torneys in-house.” [email protected] most of the Southeast Michigan But Smith, who is also corporate membership, particularly the au- counsel at the Dundee office of tomakers or other local manufac- Waltham, Mass.-based Holcim Inc., turing companies, will probably said he expects some companies see flat total legal budgets in 2011 will actually try to handle “as even if company revenue im- much as possible” internally and proves with the economy. only outsource a few specialties, “The question is going to be, will such as environmental law or la- corporate counsel grow by more bor and employment litigation. hiring inside, or will the new He also said some pressures to billing and fee arrangements grow legal spending will come from they’ve created make their outside outside the company, like litigation counsel more appealing to hire? or compliance with new changes in That’s still difficult to answer,” federal law or heightened regulato- said Stephen Calkins, professor ry agency enforcement under the and past interim dean at the Wayne Barack Obama administration.

EEZKZ >KKD&/>,/>>^ dZK/d >E^/E' EtzKZ< t^,/E'dKE͘͘

>>/EK&&/^ /:/E' ^,E',/ Dy/K/dz DKEdZZz

DDZ>yDhE/

hd>>KE' WZK&^^/KE> KZWKZd/KE

d>͗ϯϭϯϮϮϱϳϬϬϬ &y͗ϯϭϯϮϮϱϳϬϴϬ DBpageAD.qxp 4/4/2011 11:51 AM Page 1

WHEN LAW FIRMS & With broad expertise including forensic IN-HOUSE COUNSEL accounting, damage quantiﬁcation, transaction Require ﬁnancial experts in either the and restructuring support, Conway MacKenzie boardroom or the court room, they works closely with legal counsel to achieve turn to Conway MacKenzie. optimal results.

Ab_[N_\b[Q 0_V`V` :N[NTRZR[a i A_N[`NPaV\[ .QcV`\_f i 9VaVTNaV\[ @b]]\_a i CNYbNaV\[ 3\_R[`VP .[NYf`V`

7HENFACEDWITHCHALLENGESINLITIGATION TRANSACTIONSORRESTRUCTURINGS LAW½RMSANDIN HOUSECOUNSELCOUNT ONTHEEXPERTISE OF#ONWAY-AC+ENZIE &ROMLITIGATIONSUPPORT ANDEXPERT TESTIMONY TOTURNAROUNDANDCRISISMANAGEMENT #ONWAY-AC+ENZIE HASTHEEXPERIENCETOGET THEJOBDONERIGHT#ONTACTUSAT TO½NDOUTMOREABOUTOURSOLUTIONS

.A9.;A. i 0560.4< i 1.99.@ i 1.FA<; i 12A?<6A i 3?.;83B?A i 5

April 11, 2011 CRAIN’S DETROIT BUSINESS Page 35

statewide in conjunction with the monthly Clark Hill PLC (Chicago) and Garan Lucow and may soon look at markets outside the Expanded Crain’s list Crain’s Michigan Business edition. Miller PC (Merrillville, Indiana). state. The firm reports 153 attorneys, includ- This year’s rankings include Grand John Gillooly, executive committee chair- ing 14 partners and associates in Novi. captures statewide changes Rapids law firms Varnum LLP, Miller Johnson, man at Garan Lucow, said the firm’s nine “The Novi office has been one of the ost Michigan law firms have flat Rhoades McKee PC and Smith Haughey Rice & Michigan offices saw a little attrition offset fastest-growing and has a very respectable employment levels or have seen Roegge PC, along with Lansing-based Foster, by the Indiana growth, and it has its sights tax practice,” he said. “And we do look at M marginal losses to attrition or later- Swift, Collins & Smith PC. on possible new offices in northwest Ohio growing into other areas of the Midwest, al moves, but several have found new Local law firms also climbed in rank and Chicago. Nyal Deems, former mayor of like the Chicago market, to offer clients the growth by tapping into out-of-state markets. through acquisitions of small firms outside East Grand Rapids and a partner on Var- resources of being a Great Lakes area or Crain’s Detroit Business’ annual list of top Michigan, including Detroit-based Dickin- num’s policy committee, said the firm has Midwestern firm.” law firms is one of several lists expanded son Wright PLLC (Las Vegas and Toronto), found recent growth in Southeast Michigan — Chad Halcom

CRAIN'S LIST: LARGEST MICHIGAN LAW FIRMS Ranked by number of attorneys in Michigan Company Michigan Worldwide Address attorneys attorneys Jan. Rank Phone; website Top Michigan executive Jan. 2011/2010 2011/ 2010 Michigan office locations Representative clients Miller, Canfield, Paddock and Stone PLC Michael Hartmann 269 349 Detroit, Ann Arbor, Grand Meritor Inc., Comerica Inc., Chrysler Group LLC, DTE 1. 150 W. Jefferson, Suite 2500, Detroit 48226 CEO 286 352 Rapids, Kalamazoo, Lansing, Energy, Ford Motor Co. and affiliates, NCAA, University of (313) 963-6420; www.millercanfield.com Saginaw, Troy Michigan, Valassis Communications Inc. Dickinson Wright PLLC William Burgess 218 289 Ann Arbor, Bloomfield Hills, JPMorgan Chase, Federal Mogul, Blue Cross Blue Shield of 2. 500 Woodward Ave., Suite 4000, Detroit 48226 CEO 220 260 Detroit, Grand Rapids, Lansing Michigan, Ford Motor Co., AT&T, Magna, MGM Mirage, (313) 223-3500; www.dickinsonwright.com Kellogg Co., Enbridge Energy Co. Honigman Miller Schwartz and Cohn LLP David Foltyn 213 228 Ann Arbor, Bloomfield Hills, BlackEagle Partners LLC; DTE Energy Co.; General Motors 2290 First National Building, 660 Woodward Ave., Detroit 48226 CEO and chairman 223 223 Detroit, Kalamazoo, Lansing Co.; Huron Capital Partners LLC; Ramco-Gershenson 3. (313) 465-7000; www.honigman.com Properties Trust; Quicken Loans Inc.; Taubman; Trinity Health Warner Norcross & Judd LLP Douglas Wagner 188 221 Grand Rapids, Holland, Lansing, Amway Corp., Borg Warner, Consumers Energy Co., Dow 4. 900 Fifth Third Center, 111 Lyon St. SW, Grand Rapids 49503 managing partner 219 219 Muskegon, Southfield, Sterling Chemical Co., Fifth Third Bank, Mercedes-Benz Financial (616) 752-2000; www.wnj.com Heights Services USA, Whirlpool Corp. Dykema Gossett PLLC Rex Schlaybaugh Jr. 180 339 Ann Arbor, Bloomfield Hills, General Motors Co., Ford Motor Co., Bayer Corp., John 5. 400 Renaissance Center, Detroit 48243 CEO and chairman 200 360 Detroit, Grand Rapids, Lansing Hancock Life Ins. Corp., International Transmission Co. (313) 568-6800; www.dykema.com Clark Hill PLC John Hern 178 210 Birmingham, Detroit, Grand NA 6. 500 Woodward Ave., Suite 3500, Detroit 48226 CEO 170 206 Rapids, Lansing (313) 965-8300; www.clarkhill.com Varnum LLP Lawrence Murphy 153 166 Grand Rapids, Grand Haven, Kellogg Co., Herman Miller Inc., MPI Research, Fifth Third 7. Bridgewater Place, P.O. Box 352, Grand Rapids 49501-0352 managing partner 152 152 Kalamazoo, Lansing, Novi Bank, Citizens Bank, SAF Holland, Independent Bank (616) 336-6000; www.varnumlaw.com Plunkett Cooney PC Henry Cooney 150 165 Bloomfield Hills, Detroit, Flint, Fifth Third Bank, First American Title, Huntington National 38505 Wodward Ave., Suite 2000, Bloomfield Hills 48304 president and CEO 148 159 Grand Rapids, Kalamazoo, East Bank, Michigan Municipal League, PNC Bank, St. John 8. (248) 901-4000; www.plunkettcooney.com Lansing, Marquette, Mt. Health System, William Beaumont Hospital Clemens, Petoskey Bodman PLC Ralph McDowell 126 142 Ann Arbor, Cheboygan, Detroit, Comerica Bank, Archdiocese of Detroit, Ford family, Sixth Floor at Ford Field, 1901 St. Antoine St., Detroit 48226 chairman 140 140 Troy Detroit Medical Center, Freudenberg-NOK GP, Pulte 9. (313) 259-7777; www.bodmanlaw.com Homes of Michigan, Caraco Pharmaceutical Laboratories Ltd. Butzel Long Justin Klimko 123 146 Detroit, Bloomfield Hills, Ann William Beaumont Hospitals, University of Michigan, 10. 150 W. Jefferson, Suite 900, Detroit 48226 president and managing 176 215 Arbor, Lansing Oakland Community College, MGM Grand Detroit, Fifth (313) 225-7000; www.butzel.com shareholder Third Bank, Fisker Automotive Foster, Swift, Collins & Smith PC Terry Blakely 107 107 Lansing, Farmington Hills, NA 11. 313 S. Washington Square, Lansing 48933 executive director 100 100 Grand Rapids, Detroit, (517) 371-8100; www.fosterswift.com Marquette, Holland Jaffe, Raitt, Heuer & Weiss PC Richard Zussman 101 101 NA Sun Communities Inc., Belfor USA Group Inc., The Fisher 12. 27777 Franklin Road, Suite 2500, Southfield 48034-8214 managing partner 100 100 Group, Oppenheimer & Co., Redico, Strength Capital (248) 351-3000; www.jaffelaw.com Partners, First Michigan Bank Kitch Drutchas Wagner Valitutti & Sherbrook PC Ronald Wagner 97 107 Detroit, Lansing, Mt. Clemens, Ascension Health, CVS Drugs, Detroit Medical Center, 13. 1 Woodward Ave., Suite 2400, Detroit 48226 managing partner 100 110 Marquette HCR Manorcare, Henry Ford Health System, MHA (313) 965-7900; www.kitch.com Insurance Co., Motor City Electric Co. Trott & Trott PC Executive committee 91 91 Grand Rapids, Farmington Hills Bank of America, Chase, Citifinancial, Wells Fargo, 14. 31440 Northwestern Highway, Suite 200, Farmington Hills 48334; 74 74 Comerica (248) 642-2515; www.trottlaw.com Smith Haughey Rice & Roegge William Hondorp 89 89 Grand Rapids, Traverse City, Northwestern Michigan College, Hanover Insurance, 15. 200 Calder Plaza Building, 250 Monroe Ave. NW, Grand Rapids managing partner NA NA Ann Arbor Burnette Foods, MPIE, Trinity Health, University of 49503; (616) 774-8000; www.shrr.com Michigan Health System Miller Johnson Betsy Raymond 88 88 Grand Rapids, Kalamazoo Gordon Food Service, Stryker Corp., Steelcase Inc., 16. 250 Monroe Ave. NW, Suite 800, Grand Rapids 49503 COO NA NA Spectrum Health (616) 831-1700; www.millerjohnson.com Garan Lucow Miller PC John Gillooly 87 90 Grand Blanc, Port Huron, NA 1000 Woodbridge, Detroit 48207 chairman of executive 91 NA Lansing, Marquette, Grand 17. (313) 446-1530; www.garanlucow.com committee Rapids, Ann Arbor, Traverse City, Detroit, Troy Harness, Dickey & Pierce PLC Executive committee 75 114 Troy NA 18. 5445 Corporate Drive, Suite 400, Troy 48098 77 119 (248) 641-1600; www.hdp.com Giarmarco, Mullins & Horton PC Executive committee 71 NA Troy NA 19. 101 W. Big Beaver, 10th floor Columbia Center, Troy 48084-5280; 71 NA (248) 457-7000; www.gmhlaw.com Howard & Howard Attorneys PLLC Mark Davis 69 121 Ann Arbor, Royal Oak AEES Inc., BASF Corp., Dow Corning Corp., KISS, Konami 20. 450 W. Fourth St., Royal Oak 48067 president and CEO 81 131 Gaming Inc., Magna Mirrors of America Inc., Sears (248) 645-1483; www.howardandhoward.com Holdings Corp., ThyssenKrupp Brooks Kushman PC Mark Cantor 64 67 Southfield Ford Motor Co., Lear Corp., Compuware, HoMedics Inc., 21. 1000 Town Center, 22nd floor, Southfield 48075 president 63 67 Masco Corp., Domino's Pizza Inc., Living Essentials LLC, (248) 358-4400; www.brookskushman.com Wayne State University Secrest, Wardle, Lynch, Hampton, Truex and Mark Morley and Bruce Truex 61 64 Farmington Hills, Grand Rapids, Chartis, AT&T Inc., Auto-Owners, Eaton Corp., Zurich, co-chairman, executive 64 64 Lansing, Mt. Clemens Hartford, city of Novi, State Farm, Progressive, and city of Morley PC committees Farmington Hills 22. 30903 Northwestern Highway, Farmington Hills 48334-3040 (248) 851-9500; www.secrestwardle.com Kerr, Russell and Weber PLC Executive committee 55 55 Detroit, Troy Wade-Trim Associates Inc., Microsoft Corp., Michigan State 23. 500 Woodward Ave., Suite 2500, Detroit 48226 55 55 Medical Society, Volkswagen of America, Quantum Fuel (313) 961-0200; www.krwlaw.com Systems Technologies, Textron Inc. Maddin, Hauser, Wartell, Roth & Heller PC Steven Sallen, president 50 50 Southfield NA 28400 Northwestern Highway, Southfield 48034-1839 Michael Maddin, president 47 47 24. (248) 354-4030; www.maddinhauser.com emeritus Mark Hauser, CFO Rhoades McKee PC Robert Shaver 47 47 Grand Haven, Grand Rapids NA 25. 161 Ottawa Ave. NW, Suite 600, Grand Rapids 49503 president NA NA (616) 235-3500; www.rhoadesmckee.com

This list is an approximate compilation of the largest law firms in Michigan. It is not a complete listing but the most comprehensive available. Unless otherwise noted, information was provided by the law firms. Total number of attorneys does not include "of counsel." NA means not available. LIST RESEARCHED BY ANNE MARKS, CAMILLE PIPPEN AND PATRICE BUSHART 20110411-NEWS--0036-NAT-CCI-CD_-- 4/8/2011 11:03 AM Page 1

Page 36 CRAIN’S DETROIT BUSINESS April 11, 2011

PEOPLE BUSINESS DIARY ARCHITECTURE ACQUISITIONS Heights, has been selected by Galpin pansion program to accommodate in- Motors, North Hills, Calif., to be the creased business with the Leona and Chris Mackey to partner, SHW Group IN THE SPOTLIGHT Project: Worldwide, Auburn Hills, an dealership’s exclusive supplier of Xyron engineering plastics product LLC, Berkley, from project executive. engagement marketing agency net- Dearborn-based clothing GPS-based stolen vehicle recovery families. Production capacity will in- work, acquired Partners+Napier, manufacturer Carhartt Inc. has and driver convenience systems. crease 30 percent with the addition of CONSULTING named Susan Telang CFO. Rochester, N.Y. Partners+Napier will become part of the Project: World- Airfoil Public Relations, Southfield, a new compounding line and periph- Greg Davidson to Telang, 42, wide agency network, and will con- has been chosen by Cirba Inc., Rich- eral equipment. The company is also chief information had been an tinue to be independently managed mond Hill, Ontario, Canada, a data adding an additional line in the lab officer, Urban Sci- assurance from its Rochester headquarters. center intelligence software for R&D, new product development ence, Detroit, partner at provider, to be its agency of record. and improved customer support. from chief infor- Hydraulex Global, Chesterfield Town- Plante & Moran Qualitech, Bingham Farms, a tech- Website: asahikaseiplastics.com. mation officer, ship, a holding company, acquired PLLC in Hydraulic Repair and Design Corp., nology integrator and software re- Active Aero Southfield. seller, was selected by Daiek Prod- NAME CHANGES Group, Belleville; Puyallup, Wash. She succeeds ucts Inc., Troy, a manufacturer of Sport View Technologies, Brighton, and Lisa Pidun to mirrored closet doors and glass show- enterprise project Linda Hubbard, CONTRACTS an audiovisual and electronic er enclosures, to install computer systems integrator, changed the management di- who is now Pixofactor Entertainment, Royal Oak, Davidson equipment and software. company’s working name and brand rector, from busi- executive vice a video gaming and entertainment McKenna Associates, Northville, has ness unit project Telang president and content-development company, has to SVT. Website: www.sportview been selected by Delhi Charter Town- management of- COO. signed a software license agreement technologies.com. ship to update the township’s wireless fice lead, commer- with Unity Technologies, San Fran- Telang earned a bachelor’s degree ordinance and better position the cial solutions cisco, Calif., a provider of the Unity NEW PRODUCTS in accounting from Wayne State township to handle cell tower permits, business unit, development tool for highly interac- University. regulate tower locations and heights, Borries Marking Systems, Ann Arbor, Perot Systems tive 3D content on the Web, mobile and negotiate tower lease rates. introduced a new generation of high- Inc., Plano, Texas. and console platforms. speed motor drives for its program- MEDIA Wayne State University, Detroit, and Atlas Oil Co., Taylor, entered into a mable dot peen and scribe marking Macomb Community College, Warren, FINANCE Kim Voet to news director, WDIV-Chan- retailer agreement with Bazi Interna- machines. nel 4, Detroit, from assistant news di- signed the Honors WayneDirect and Laurene Funk to tional Inc., Denver, Colo., to carry RouteOne, Farmington Hills, offers a rector. Bazi fruit-based energy drinks. Bazi Honors Transfer agreement which will vice president offer high-achieving Macomb Commu- free Android application, available Pidun and regional sales also entered into agreements with for download from the Android mar- NONPROFITS with Nino Salvaggio International nity College students on-site courses manager, Macomb Lake Shore Group, and scholarships through WSU’s Irvin ket, for automobile dealers. Website: Flagstar Bank, Troy, from assistant Ulises Silva to communications pro- Marketplace, Troy, and Plum Mar- www.routeone.com. kets, Farmington Hills. D. Reid Honors College. vice president branch management, gram officer, Detroit Local Initiatives Great Oaks Landscape Associates, De-Sta-Co, Auburn Hills, a global au- Bank of America, Support Corp., Detroit, from managing Cooper Standard Automotive Inc., tomation and work-holding company, Novi, signed a memorandum of un- Novi, has been awarded the contract Troy editor, Being Latino Online Magazine, announced the release of a new prod- derstanding with Nishikawa Rubber for landscape construction for the Blue Jim Suchara to Detroit; and Angelita Espino to sus- uct, the Camco RSD rotary servo dri- Co. Ltd. Nishikawa will sell a 20 per- Cross Blue Shield Lyon Meadow Con- vice president of tainable communities director, from ference Center renovation project, ve. Website: www.destaco.com. business systems director of racial justice and cultural cent interest in its existing sealing business in Thailand to Cooper Stan- New Hudson, by the general contrac- development, collaboration, New Detroit Inc., De- dard. Cooper Standard will sell a mi- tor, Barton Malow Co., Southfield. NEW SERVICES Amerisure Mutual troit. Insurance Co., nority interest in its existing sealing Graphic Sciences Inc., Madison business in Myslenice, Poland, to EXPANSIONS Farmington Hills, REAL ESTATE Heights, a document imaging and from vice presi- Nishikawa. Nishikawa has acquired Wesley Dental Associates PC moved records management company, dent and chief John DeGroot to vice president, re- additional shares in the U.S. joint from 332 W. Tienken, Suite C, to 2565 S. launched a new website: www.scanit technical officer, search, Grubb & Ellis Co., Southfield, venture, returning to its original Rochester Road, Suite 101, Rochester today.com. 60 percent majority position. Cooper EEI Global, from research manager. Hills, to accommodate a new implant Plante & Moran managing partner Standard will increase its majority Suchara Rochester Hills. center. Telephone: (248) 844-9977. Web- Gordon Krater, Southfield, has position in the joint venture in Mexi- SERVICES site: www.wesleydds.com. launched a blog to address current is- Kim Keeling to controller, Main Street co. Bank, Bingham Farms, from CFO, Signature Associates, Southfield, sues facing organizations. Website: Conrad Mallett Jr., president and CEO, Friendly Automotive Group Inc., Clin- Warren Bank, Clinton Township. Sinai Grace Hospital, Detroit, elected a commercial real estate firm, opened gordon-kraterblog.plantemoran.com. ton Township, has selected the TMV a new office in Holland. Telephone: The firm also has launched a blog to Kurt Haras to managing director, to the board of directors, Kelly Ser- Group, Birmingham, to handle its en- Quarton Partners, Birmingham, from vices Inc., Troy. (616) 396-7788. Website: www. track proposed changes to the Michi- tire marketing account. signatureassociates.com. gan Business Tax. Website: director. Brian Bach to director and CFO, McGraw Wentworth, Troy, has been Altair Engineering Inc., Troy, a tax-blog.plantemoran.com. Michigan CFO Associates, Sterling chosen by Henry Ford Community Col- HEALTH CARE Heights, from president, CFO Services provider of simulation technology and EPrize, Pleasant Ridge, announced a lege, Dearborn, to manage the insti- engineering services, opened an office LLC, Troy. new multichannel platform allowing Donna Wellington to vice president of tution’s strategic group benefits plan. in Huntsville, Ala., to support its aero- integration among social networks, operations, Henry Ford Hospital, De- John Branstetter to vice president of BorgWarner Inc., Auburn Hills, was space and defense work. Altair also be- microsites and mobile. Website: troit, from senior site administrator, marketing and communications, Rave contracted by Deutz Corp., Norcross, gan operating its Aero Academy in www.eprize.com. Henry Ford Medical Center, Detroit. Computer Inc., Sterling Heights, from Ga., to supply its latest B-series gen- Huntsville to provide free training for The Oakland County Business Fi- president, Incontrol Logistics, High- eration turbochargers for the newly local aerospace engineers on Altair’s nance Corp., Waterford Township, INDUSTRY GROUPS land Township. developed Deutz 6.1-liter six-cylinder modeling and simulation software. announced a pilot program for com- heavy-duty diesel engine, used in the Kevin Mlutkowski to director of sus- Website: www.altair.com. mercial real estate refinancing. Tele- SUPPLIERS agricultural machinery segment. tainability, American Concrete Insti- NSF International, Ann Arbor, phone: (248) 858-0765. Website: tute, Farmington Hills, from manag- Justin Schroeder to chief technology Federal-Mogul Corp., Southfield, has opened a testing lab in Shanghai, Chi- www.oakgov.com. er, marketing. retained Lazard Ltd., New York, N.Y., officer, Movimento Inc., Plymouth, na, called NSF Shanghai Testing Satellite Vending Co., Wixom, a sub- from vice president, global product to assist the company in evaluating Technology Co., which will test food strategic alternatives to enhance sidiary of VendTek Wholesale Equip- LAW management. equipment, dietary supplements and ment Inc., Wixom, unveiled a remote shareholder value. ingredients, and consumer products. Jill Miller to partner, Jaffe Raitt Heuer Kevin Grady to vice president and monitoring service that hooks up Stout Systems, Ann Arbor, has Website: www.nsf.org. & Weiss PC, Southfield, from associ- CFO, Inteva Products LLC, Troy, from standard food and beverage ma- signed agreements to provide IT ate. transitional finance manager. Jungle Java, Canton Township, a chines online to monitor their activi- staffing services to The Advisory chain of children’s entertainment fa- ty directly from office computers. Board Co., Washington, D.C., a con- cilities, opened a new site at 44595 En- Website: www.satellitevending.com. sulting and technology services firm. terprise Drive, Clinton Township. Ilumisys Inc., Troy, a developer and Telephone: (586) 203-0500. Website: PUBLICATIONS Mission Grand Slam! producer of solid-state lighting tech- www.junglejavaplay.com. nology, granted a license for light- The Community Health and Social Chef George Vutetakis has published emitting diode fluorescent tube re- Services Center, a nonprofit that pro- a new book, Vegetarian Traditions: placements to Lumenor Energy vides health and wellness services to Favorite Recipes from My Years at the Services, Bay Harbor Island, Fla. uninsured and underinsured people Legendary Inn Season Cafe. Website: Tanner Friedman Strategic Communi- in Detroit, broke ground on a new, www.thevegetarianguy.com. cations, Farmington Hills, signed $17 million health center and admin- three new clients: The Interactive istrative facility at 5635 W. Fort St., STARTUPS Manufacturing Experience event Detroit. Website: www.chasscenter. Water Gait Veterinary Rehabilitation, Does your law firm score when it counts? jointly presented by the American org. a pet rehabilitation center, opened at It could happen. Machine Tool Distributors’ Associa- Jaffe Raitt Heuer & Weiss PC, South- 15220 Southfield Road, Allen Park. tion, Rockville, Md., and the Society field, has opened a sixth law office in Telephone: (313) 422-3318. Website: , Dear- The attorneys at McDonald Hopkins are on a mission of Manufacturing Engineers Wynnewood, Pa. Website: www. www.watergaitvetrehab.com. to help our clients hit a Grand Slam. born; the Ira Kaufman Chapel, South- jaffelaw.com. field; and Avian Control, manufac- Mobile Technology Association of Attorneys on a Mission® tured under contract from Avian WOW Internet Cable and Phone, Michigan, Southfield, a nonprofit Enterprises LLC, Holland, by Stone Madison Heights, has completed in- trade association for Michigan’s Your mission is our mission. We never lose sight of it. Soap Co. Inc., Sylvan Lake. stallation of its fiber optic cable net- mobile technology industry. Tele- work in Birmingham. Website: phone: (248) 470-3257. Email: info@ , Oak Park, se- Azure Dynamics Corp. www.wowway.com. lected Lotus Lightweight Structures, gomobilemichigan.org. Website: Worcester, England, for Transit Con- LaVida Massage, Commerce Town- www.gomobilemichigan.org. nect Electric Bus upfitting in Europe. ship, opened a new wellness center at Rochester Ballroom, a ballroom 39552 Woodward Ave., Bloomfield dance studio, at 322 S. Main St., A business advisory and advocacy law firm® Also, Azure Dynamics has opened a European headquarters in London. Hills. Telephone: (248) 593-8661. Web- Suite 220, Rochester. Telephone: 39533 Woodward Avenue, Suite 318, Bloomfield Hills, MI 48304 • 248.646.5070 The 4,800-square-foot headquarters site: www.bloomfieldhills.mi. (248) 651-7746. Website: www. Carl J. Grassi Stephen M. Gross will handle engineering, sales, market- lavidamassage.com. rochesterballroom.com. President Detroit Managing Member ing, service and manufacturing of the Domino’s Pizza, Ann Arbor, opened Movement Search & Delivery, a pro- Azure’s electric powertrain for Eu- its first store in Poland. Website: fessional executive search firm, at 20 Chicago • Cleveland • Columbus • Detroit • West Palm Beach rope. Website: www.azuredynamics. www.dominos.com. W. Washington, Suite 14, Clarkston. www.mcdonaldhopkins.com com. Asahi Kasei Plastics North America Telephone: (248) 630-0140. Website: GuidePoint Systems, Madison Inc., Fowlerville, announced an ex- www.movementsearch.com. 20110411-NEWS--0037-NAT-CCI-CD_-- 4/8/2011 11:26 AM Page 1

April 11, 2011 CRAIN’S DETROIT BUSINESS Page 37 Extra

People

Rand O’Leary has been named Nonpatients a virtue senior vice president and COO of Henry Ford Wyandotte Hospital. New businesses, revenue sources boost hospitals’ bottom lines O’Leary will be responsible for day- BY JAY GREENE to-day operations of CRAIN’S DETROIT BUSINESS the hospital and assist in the otsford Hospital, an independent, 330- O’Leary development of bed osteopathic community teaching organization goals and planning. B hospital in Farmington Hills, found Before joining Henry Ford Wyandotte an unusual formula for increasing its Hospital, O’Leary served as regional operating income by 51 percent: Form a vice president, clinical and support nonprofit ambulance company and ex- services at Henry Ford Macomb pand it nationally in joint ventures with Hospital. local hospitals. Jocelyn With patient care revenue growth Giangrande, of slowing because of Medicare cuts and Henry Ford Health expenses increasing because of growing System, has been amounts of charity care and bad debt, named president of hospitals have been seeking to reduce the Greater Detroit costs through efficiency and quality im- Association of provement to bolster bottom lines. African Americans in But some hospitals in Southeast Human Resources. Michigan, like Botsford, Oakwood Health- The greater care, Detroit Medical Center and William Detroit association Beaumont Hospitals, also are relying on Giangrande is the local chapter growth in nonpatient revenue and di- affiliate of the National Association of versified business activities to help pay African Americans in Human for medical equipment and other infra- Resources. structure investments. Giangrande is director of workforce Over the next five years, Community diversity, affirmative action and equal EMS, a subsidiary of Botsford Health Care, employment opportunity for Henry Botsford’s parent holding company, is Ford. projecting a 20 percent annual growth in Joel Kahn has net income, up from 10 percent the pre- been appointed vious five years, said Paul LaCasse, medical director of M.D., Botsford’s CEO. (See story, Page wellness and 39.) medical director of “The challenges of hospitals are get- preventive ting more acute and severe with cardiology and Medicare and Medicaid cuts and pay- cardiac ments from other sources declining,” rehabilitation for the said LaCasse. “We need to be smarter Detroit Medical and faster, and that is why we have these Center. other businesses to generate income, Kahn Kahn will be in charge of developing a preventive like Community EMS and our senior liv- cardiology clinic to identify and lower ing facility.” the risk of heart disease in patients In 2010, Southfield-based Community and will lead the reopening of a EMS earned $3.9 million for Botsford standard and intensive cardiac Health Care, an 8.3 percent increase rehabilitation program, both at DMC from 2009, increasing the system’s oper- Cardiovascular Institute. ating income to $11.5 million, a 21 per- GLENN TRIEST He will also provide ongoing cent increase from the previous year. Including investment income, Bots- “We need to be smarter and faster,” said Botsford Hospital CEO Paul LaCasse, M.D., (left) education on wellness. with Community EMS CEO Greg Beauchemin, “and that is why we have these other Kahn is a fellow of the American See Nonpatients, Page 38 businesses to generate income.” Community is Botsford’s nonprofit ambulance company. College of Cardiology, the American College of Physicians and a fellow of the Society of Cardiac Angiography and Intervention. He is also a member of the Oakland County Medical Society, REVENUE PICTURE Michigan State Medical Society and the Figures for selected hospitals in Southeast Michigan. Nonpatient figures include revenue from gift shops, laundry, meals sold to employees and guests, American Heart Association. hospital space rental, sale of drugs to nonpatients, housing rental, parking lots and vending machines. They exclude contributions, donations and Hadi Berry has been named vice investment income. president of medical affairs for Detroit Nonpatient revenue Patient revenue Other revenue* Medical Center’s Detroit Receiving 2006 2009 Change 2006 2009 Change 2006 2009 Hospital. Beaumont Hospital, Royal Oak $31.7 million $22.3 million (29.7%) $1.1 billion $1.2 billion 9% 2.9% 1.9% Berry will be responsible for Beaumont Hospital, Troy $4.6 million $5.8 million 26% $405.6 million $491.2 million 21.1% 1.1% 1.2% managing all issues and processes Botsford Hospital $8.3 million $8.9 million 7.2% $245.6 million $285.9 million 16.4% 3.4% 3.1% related to physicians and patients at Detroit Receiving Hospital. Berry is Children’s Hospital of Michigan $14 million $37.5 million 168% $287.9 million $333.8 million 15.9% 4.9% 11.2% board-certified in osteopathic internal Crittenton Hospital $3.8 million $3.1 million (18.4%) $172.7 million $221.7 million 28.4% 2.2% 1.4% medicine. Berry has served as associate Detroit Receiving Hospital $32.9 million $25.7 million (21.9%) $196.3 million $244.6 million 24.6% 16.8% 10.5% program director for inpatient operations Henry Ford Hospital $86.4 million $87.2 million 0.9% $982.6 million $1.1 billion 12% 8.8% 7.9% at Wayne State University. He also has Oakwood Medical Center $14 million $18.4 million 31.4% $516.4 million $598.7 million 15.9% 2.7% 3.1% worked as an associate professor at St. Joseph Mercy Ann Arbor $43.9 million $55.9 million 27.3% $561.6 million $599.9 million 6.8% 7.8% 9.3% Wayne, the University of Toledo and the University of Michigan. * As a percent of net patient revenue. Sources: Crain’s research; Cost Report Data Resources LLC, Louisville 20110411-NEWS--0038-NAT-CCI-CD_-- 4/8/2011 11:33 AM Page 1

Page 38 CRAIN’S DETROIT BUSINESS April 11, 2011 Health Care Extra Oakwood moves up e-records conversion Nonpatients: A virtue ■ From Page 37 BY JAY GREENE Witt, adding that the entire Epic said the new system also will in- CRAIN’S DETROIT BUSINESS system will be completed in 2014. Of crease the amount of data available ford’s net income grew 29.7 percent the $100 million cost of the system, to staff, improving quality. to $18.8 million in 2010 from $14.5 Oakwood Healthcare, a four-hospi- UM expects to receive about $50 mil- “Right now we don’t have all the CareTech sale may tal system based in Dearborn, has million in 2009. lion in federal incentive payments. physician notes in the patient CEO Greg Beauchemin of Com- signed a contract with Epic Systems Most other health systems in record, and we don’t have it in real Corp., a Verona, Wis.-based infor- munity EMS said the 29-year-old bring windfall to Southeast Michigan have installed time,” Smith said. “Now the infor- company is growing through joint mation technology company, to or are in the process of buying a mation will be available immedi- purchase its suite of electronic venture ambulance and patient variety of information systems. ately.” transportation contracts because DMC, Oakwood health record and financial infor- They include Henry Ford Health Sys- Oakwood selected Epic through mation systems. hospitals are seeking both to lower tem, St. John Providence Health Sys- a recommendation from its consul- their operating costs and generate Dearborn-based Oakwood The entire cost of the four-year tem, Detroit Medical Center, St. tants, Santa Rosa Consulting in project, including Epic licensing incremental revenue. Healthcare and Detroit Medical Joseph Mercy Health System and its Southfield. “Hospitals understand they will Center’s investment in CareTech fees, hardware and employee parent Trinity Health. DeWitt said more hospital sys- training, is expected to total $60 not make the earnings from patient Solutions, a Troy-based national “It will be very positive for the tems are buying Epic because the operations as they used to,” Beau- information technology compa- million, said Paula Smith, Oak- organizations because the data company’s full “enterprise” sys- wood’s chief information officer. chemin said. ny, could one day present the they will have to treat patients will tem allows competing hospitals to Other revenue comes from a va- nonprofit hospital systems with But Medicare’s electronic health be very robust,” DeWitt said. “You share patient data through Epic record incentive payments to Oak- riety of sources that include gift a windfall profit. are reporting out on various quali- Everywhere program. shops and vending machines, park- CareTech, founded in 1998 by wood, which start in 2012 for hos- ty metrics, and this (encourages) Besides Oakwood, UM and pitals and physicians who comply ing lots, laundry services, medical Oakwood and Detroit-based Com- you to pay really close attention to Beaumont, Grand Rapids-based supplies, cafeteria services, rental puware Corp., has been growing at with federal meaningful use guide- quality.” Spectrum Health Systems, and lines, are expected to pay for half properties and pharmaceuticals an 8 percent annual rate the past Some of Oakwood’s 300 different McLaren Health Care and Hurley Med- sold to nonpatients, Schuhmann five years and projects that the project’s costs, Smith said. programs, purchased from 50 ven- ical Center, both in Flint, use Epic, “We decided to move up our said. It also could include grants growth pace to continue through dors, that run its patient care, fi- DeWitt said. from research activities. 2016, said James Giordano, its five-year implementation nance and clinical information Diederich said Oakwood plans timetable for the upgrades to take Said Schuhmann: “They need to president. DMC joined the own- systems were originally installed to install Epic in three phases over be creative because of the pressure ership ranks in 2000. advantage of the incentive pay- in the 1980s and updated over time, the next four years. During the ments,” Smith said. on patient margins.” While CareTech currently Smith said. first phase, from 2011 to 2013, the does not contribute to Oakwood Several other hospitals in South- For example, hospitals have been Because Oakwood bought each Epic inpatient clinical and finan- and DMC’s cash flow from opera- east Michigan use Epic, including increasing rental revenue from system individually, Smith said, cial systems will be installed at tions, the for-profit company has Royal Oak-based William Beaumont properties they own, he said. they required multiple interfaces to Oakwood’s four hospitals, he said. “If a hospital has two wings and saved the hospital systems mil- Hospitals and the University of Michi- communicate with each other that The ambulatory information their census drops, they will seek lions of dollars on their informa- gan Health Systems in Ann Arbor. increased operating costs to main- systems at physician offices and to rent it out to companies that tion management systems over UM Health Systems bought tain. Oakwood’s information tech- outpatient centers will be installed don’t compete with them,” Schuh- the past 13 years, Giordano said. Epic’s ambulatory, revenue cycle, nology department has grown to 200 in 2013 and 2014. Laboratory and mann said. For example, CareTech saved financial and emergency depart- people, Smith said. cardiology departments will be in- Last month, St. Joseph Mercy DMC 30 percent, or $100 million, ment information system last sum- “With our move to Epic, we can stalled in 2014. Saline signed a 15-year lease to rent on a five-year contract, Giordano mer. UM Health plans on adding simplify, reduce costs and don’t “Diederich said 80 Oakwood em- a 21,000-square-foot section of for- said. DMC pays CareTech about Epic’s inpatient, pharmacies and need all those bodies to make it ployees, including 40 information mer inpatient space to Evangelical $60 million annually for its IT medical record systems in 2013, work,” said Smith, adding that it is technology workers and 40 clinical Homes of Michigan. services, according to a DMC fi- said Jocelyn DeWitt, its CIO. too early to know how many staff department staffers, will be Terms of the deal were not dis- nancial report. “We are right on track to have members will be needed when the trained to operate the Epic system. closed, but Evangelical said it But one day, CareTech could the full ambulatory system in- entire system is installed in 2014. Jay Greene: (313) 446-0325, would spend $2.5 million on the return a windfall for Oakwood stalled by August 2012,” said De- Joe Diederich, Oakwood’s COO, [email protected] lease and capital improvements. and DMC, when, as expected, it Evangelical Homes plans to ex- is sold or becomes a publicly pand its short-term rehabilitation traded company, Giordano said. unit and support services. Both are “It is part of our annual discus- adjacent to each other on West Rus- sions,” Giordano said. “There is sell Street in Saline. no secret that this market space is Beaumont Hospitals also reaps hot. All our competitors have millions of dollars in nonpatient been bought up by Fortune 500 revenue through such ventures as companies. … The thinking is the Beaumont Commercialization Cen- that the return would be gravy.” ter and ownership in the Northwood Over the past year, CareTech Shopping Center at 13 Mile Road and has doubled the number of hospi- Woodward Avenue. tal clients to more than 150 na- The Commercialization Center tionwide. primarily helps inventors on the In fiscal 2010, CareTech in- Beaumont hospitals’ medical staffs creased revenue to $154 million develop medical device products. from $153.3 million in 2009. Annual revenue from several — Jay Greene patents, mostly in radiation oncolo- controller, said nonpatient revenue gy and orthopedics, has averaged and income from affiliates is an im- about $2 million per year, which is portant part of the company’s over- split between Beaumont and the all performance. physician inventors, said John “Income from our joint-venture Shallman, the center’s director. type activities has been slightly “The hospital is looking at big in- higher the past several years,” said cremental revenue from this opera- Elsey, noting that income from af- tion, and we are looking to grow filiates has accounted for 5 percent this business line,” he said. to 10 percent of operating income Overall, Beaumont’s 2010 other the past several years. operating revenue was $87 million, Other income at Oakwood Hospital 4 percent of total revenue and a 10 and Medical Center, the system’s flag- percent increase from 2009, said ship hospital in Dearborn, in- CFO Dennis Herrick. In 2009, Beau- creased 31 percent to $18.4 million mont’s other revenue amounted to in 2009 from $14 million in 2006. 3.7 percent of total revenue, he said. For example, Oakwood has in- Mark Lezotte, a health care attor- creased retail goods sold at Oak- ney with Hall Render in Troy, said wood Hospital, including offering a forward-thinking hospitals are di- mother and baby shop and an ex- versifying into occupational medi- panded gift shop, Elsey said. cine and wellness services to em- “We do rely on (other income) to ployers, selling financial auditing supplement the bottom line,” he services and generating revenue said. “It potentially is a bigger con- from outpatient labs and through tributor in future years.” joint ventures with physicians. Jay Greene: (313) 446-0325, Matt Elsey, Oakwood’s corporate [email protected] 20110411-NEWS--0039-NAT-CCI-CD_-- 4/8/2011 10:41 AM Page 1

April 11, 2011 CRAIN’S DETROIT BUSINESS Page 39

DUSKY N A Health Care Extra S OH IO

Joint ventures, new services keep I was just voted CFO. fficer) (Chief Fun O All the credit went to me for planning an incredible Botsford ambulance service growing outing, even though Cedar Point did most of the work. Thanks to them, our entire group had grow as our joint ventures grow,” tal or the doctor,” Beauchemin said. BY JAY GREENE a blast. Cedar Point had something for CRAIN’S DETROIT BUSINESS he said. “The information will help make Community EMS CEO Greg sure they (stay healthy and) don’t everyone: tasty food, sizzling shows, a Community EMS, a Southfield- Beauchemin said each year the get admitted back to the hospital.” beach, and of course the best rides based ambulance company found- company adds at least two joint Starting in 2012, hospitals will in the universe. ed by Botsford Hospital in 1982, has venture or management contracts be financially penalized for pa- w The friendly staff took care of carved out a broad geographic with hospitals and is expanding its tients who are readmitted for the Ne er! eek dS niche in the profitable patient consulting services. same condition within 30 days. Win everything; from making sure we got the transportation business. But Beauchemin thinks his lat- Some hospitals that are interest- absolute best deal on tickets, to catering an By forming joint ventures with est idea will prove especially bene- ed in the program include Bots- several hospitals in Southeast ficial — not just to improving qual- ford, DMC and Scott and White all-you-can-eat meal. The planning went by Michigan — including Botsford, ity care to patients and reducing Healthcare in Temple, Texas, Beau- just as fast as some of the rides. Oakwood Healthcare, William Beau- costs to hospitals, but to Commu- chemin said. Cedar Point also has a discounted ticket mont Hospitals and Detroit Medical nity EMS’ strategic growth plan. Another service expected to be Center — and expanding the ser- Later this year, Beauchemin launched soon for Community EMS program that’s good any day! Just visit vice nationally into Illinois, Ohio, said the company plans to start is automobile repair services for cedarpoint.com/groups or call 1-800-448-2428 Kentucky and Texas, with Florida contracting with hospitals nation- hospitals, Beauchemin said. Hospi- to get all the details on both programs. later this year, Community EMS wide to offer a physician extender tals operate vehicle fleets but also You’ll have the time best time ever! posted $3.9 million in net income service that could reduce costly want to provide a service to their Later, last year, a 20 percent increase hospital readmissions. employees. Botsford and Oakwood, from 2009. It works like this: Hospitals hire as joint-venture partners, already Linda Paul LaCasse, M.D., CEO of Community EMS to send para- use the service, he said. Botsford Hospital, said Communi- medics and nurses to check on the “Some other hospitals like Beau- ty EMS has become an integral medical status of recently dis- mont Hospital Troy want us to do it part of its strategic plan and a charged patients. for them. It is a revenue stream for “larger contributor to earnings to “Using wireless technology, we them, plus it helps employees.” our system.” will hook patients up to telemetry Jay Greene: (313) 446-0325, “We project (the income) to and send the data back to the hospi- [email protected]

Investment income rebound helps CON Roundup moderate hospitals’ bottom lines Crittenton files ©2011 Peanuts Worldwide LLC. Peanuts.com BY JAY GREENE mates that the state’s 150 hospitals CRAIN’S DETROIT BUSINESS will absorb $7 billion in Medicare cuts, increasing the importance of to build tower Despite the stock market nose- investment income, other income dive in 2008 — when hospitals na- and charitable donations. Crittenton Hospital Medical Center Your Bank’s tionally lost $17 billion — invest- Medicare cuts are expected to hurt in Rochester Hills filed an applica- ment income and charitable Michigan hospitals more than hos- tion to construct a previously an- contributions continue to be the pitals elsewhere because of already nounced $65 million patient care major source of hospital revenue low profit margins, said Peter tower. Not Lending? and income, dwarfing “other rev- Schonfeld, association senior vice If approved by the Michigan Depart- enue” sources like gift shops and president, policy and data services. ment of Community Health, the tower cafeteria services and helping to While Michigan hospital total will consist of six stories and 128,300 boost bottom lines. margins dipped to a negative square feet of new construction For example, six-hospital Henry 0.8 percent in 2009 from 7.2 percent plus 16,700 square feet of renova- Ford Health System, Detroit, lost in 2007, U.S. hospitals averaged a tions. $44.7 million on investment in- 5 percent total margin, only slight- The third through fifth floors are come in 2008 but rebounded in 2009 ly lower than 6.9 percent in 2007. planned as dedicated patient units, with an investment income gain of Michigan hospitals are expect- consisting of 20,400 square feet of $46.8 million. ing some relief starting in 2014, new construction with 30 beds, total- The investment turnaround when health care reform will start ing 90 replacement beds to work to- helped boost Henry Ford’s net in- to provide health insurance subsi- ward a more private bed model. come to $30.4 million in 2009 from dies to people who purchase pri- The first floor of the tower will in- $8.5 million in 2008. In 2010, Henry vate policies and Medicaid exclude building systems. The second Ford earned $61.9 million in net in- pands to cover more people. floor will house medical education, come, including $64.9 million in in- Nationally, the number of unin- pharmacy and a waiting area vestment income. sured is expected to drop from Filings approved: In 2009, William Beaumont Hospi- Ⅲ 15 percent to 8 percent. Michigan’s Father Murray Nursing Center, tals in Royal Oak reported $9 mil- uninsured rate is expected to fall to Center Line, Father Murray Nursing lion in investment income and and Rehabilitation Centre LLC, lease ours are 1.5 percent from 11 percent. $90 million in other securities and the real estate and equipment at the “There will be a reduction in . derivative gains to boost net in- 231-bed Father Murray Nursing hospital payments, but the idea is Call for a free consultation. come to $104.8 million. Its 2010 net Center, $30 million. there will be less uncompensated Loan amounts: $1,000,000.00 and above. income was $78.5 million, which Ⅲ Goldengate Rehabilitation at care as those populations become included $49.4 million in invest- Riverside, Trenton, move 78 beds insured or covered by Medicaid,” s Investment Real Estate s Equipment ment income. This was a year after from Aberdeen Rehabilitation and Schonfeld said. “The problem is s Owner Occupied Real Estate s Turnaround Consulting Beaumont reported a net income Skilled Nursing Center at 5500 Fort Medicaid only pays 55 percent of s Lines of Credit s Loan Modiﬁcations loss of $214 million for 2008, includ- St. in Trenton, $3.1 million. ing $45 million in investment in- costs. Michigan hospitals already Letters of intent: s Accounts Receivable s Bank Workouts come losses. lose money on patient services.” Ⅲ Harbor Oaks Hospital, New Balti- While investment income has Because of past losses from pa- more, add 10 adult and 10 child psy- since rebounded to help stabilize tient care, hospitals over the past chiatric beds, also renovate mental bottom lines, future hospital profit 10 years have been focusing more health space, $8.7 million. margins are murky because hospi- on nonpatient revenue sources, Ⅲ Advanced Surgery Center LLC, tals have agreed to 4 percent annu- such as renting meeting rooms, Dearborn, begin surgical services in al reimbursement cuts from providing catering and developing a freestanding surgical outpatient Medicare starting this year as part wellness centers to generate rev- facility with three operating rooms, 800.509.3552 www.eclipsecapitalgroup.com of health care reform. enue, Schonfeld said. $6 million. From 2011 to 2019, the Michigan Jay Greene: (313) 446-0325, 2207 Orchard Lake Road, Sylvan Lake, MI 48320 “Since 1997” Health and Hospitals Association esti- [email protected] — Shawn Wright 20110411-NEWS--0040-NAT-CCI-CD_-- 4/8/2011 10:59 AM Page 1

Page 40 CRAIN’S DETROIT BUSINESS April 11, 2011

CALENDAR

nonmembers $40, $50 at the door. In- 8547; email: [email protected]; TUESDAY cludes lunch. Contact: (800) 427-5100; website: www.econclub.org. APRIL 12 email [email protected]; website www.automationalley.com. M&A Deals Gone Bad. 7 a.m. break- IN4M: After Hours. 5:30-7:30 p.m. April fast, meeting 8-9 a.m. The Association 28. Inforum. With Rochelle Riley, for Corporate Growth, Detroit chap- Government Fore- columnist, Detroit Free Press. Detroit ter. With Steven Beckett, partner, cast Luncheon. Institute of Arts. $29 members, Peninsula Capital Partners LLC; 11:30 a.m.-1:30 $39 nonmembers, includes light hors Steve Blow, president, Eisbrenner p.m. April 21. d’oeuvres and cash bar. Contact: Public Relations; others. Oakland Birmingham (877) 633-3500; website www.inforum Hills Country Club, Bloomfield Hills. Bloomfield Cham- michigan.org. Members $25, guests $45. Contact: ber of Commerce. Sharon Kimble, (877) 894-2754; email With Phil Power, Detroit Economic Club. 11:30 a.m.-1:30 founder, The Cen- Managing wealth is more than investing. [email protected]; website p.m. May 3. With Parag Khanna, direc- www.acg.org/detroit. ter for Michigan; L. Brooks Patter- tor, Global Conference Initiative, New Find us at PMFA.com. American Foundation and author of Power son, Oakland County executive. How to Run the World, discussing key Townsend Hotel, global issues affecting the world today, THURSDAY Birmingham. $50 what public-private partnerships are APRIL 14 chamber mem- best suited for your organization to en- bers, $60 others, gage in, and how they can result in sys- Women Mean corporate table temic change. Detroit. Athletic Club. Business. 6-9 p.m. $370. Contact: Members $45, guests $55, nonmembers Mercy High (248) 644-1700 ext. $75. Contact: Allison Czarnik, (313) 963- School; Chil- 24; email: an- 8547; email [email protected]; dren’s Hospital of [email protected]; website: www.econclub.org. Michigan. With website: , Denise Ilitch www.bbcc.com/ president, Ilitch events/chamber. CALENDAR GUIDELINES Enterprises; Faye Patterson Nelson, CEO, De- If you want to ensure listing online and be considered for print Ilitch troit Riverfront Powerful Drivers Reshaping Health Conservancy; oth- Care. 11 a.m.-12:30 p.m. April 21. Info- publication in Crain’s Detroit ers. Mercy High rum. With Leanne Kaiser Carlson, Business, please use the online School, Farming- teacher, writer and futurist, Kaiser In- calendar listings section of ton Hills. $20. Pro- www.crainsdetroit.com. Here’s stitute, Brighton, Colo. Detroit Mar- ceeds to the Mer- how to submit your events: riott Renaissance Center. $50 Inforum cy High School From the Crain’s home page, click Scholarship members, $65 nonmembers. Contact: (313) 578-3227; email: klinegar@ “Detroit Events” in the red bar INVESTMENT MANAGEMENT I *TRUST SERVICES Fund. Website: www.inforummichigan.org; website: near the top of the page. Then, www.mhsmi.org. click “Submit Your Entries” from *INSURANCE SERVICES I *TAX PLANNING www.inforummichigan.org. the drop-down menu that will ESTATE PLANNING I WEALTH MANAGEMENT How to Become a appear and you’ll be taken to our BUSINESS TRANSITION I PHILANTHROPIC PLANNING Government Con- Detroit Economic Club. 11:30 a.m.-1:30 online submission form. Fill out QHHGTGFVJTQWIJCHſNKCVGUQH2/(# Nelson tractor. 9 a.m.- p.m. April 27. With Dave the form as instructed, and then noon. Procurement Technical Assis- Dombrowski, president, CEO and click the “Submit event” button at tance Center of Schoolcraft. Learn to general manager, Detroit Tigers; and the bottom of the page. That’s all sell your goods and services to the fed- manager Jim Leyland. Detroit Tigers there is to it. eral government and the state of players and coaches are scheduled to Michigan. Washtenaw Community attend. MotorCity Casino Hotel, De- More Calendar items can be found College, Ann Arbor. $40, advance reg- troit. $45 DEC members, $55 guests, on the Web at istration required. Contact: (734) 462- $75 nonmembers. Contact: (313) 963- www.crainsdetroit.com. 4438; email: [email protected]; website: www.schoolcraft.edu/cepd.

Financial Issues in Health Care. East- ern District of Michigan chapter, Fed- CAREER MARKET eral Bar Associa- tion Bankruptcy and Health Care MOVES PLACE Committees. 4- 6:30 p.m. With Mike Duggan, MANAGEMENT ANNOUNCEMENTS & president and SERVICES CEO, Detroit Med- WARREN DDA/TIFA DIRECTOR ical Center; Steven Rofsky, The City of Warren Downtown Development BUSINESS SERVICES Authority seeks a regionally-minded professional to managing direc- perform as Executive Director of both the tor, head of re- Downtown Development Authority (DDA) and Tax Duggan structuring, Cain Increment Finance Authority (TIFA). The ideal Brothers, New candidate will be an ambitious manager and strategic thinker who develops policy and leads York; others. Westin Southfield. $60. multiple projects. Warren is Michigan’s third-largest Contact: David Lerner, (248) 901-4010; city, and the combined annual budget of its DDA email [email protected]. and TIFA is approximately $6 million. A full job description and qualification are available at www.cityofwarren.org/c.e.d.development. On-line cover letter and resumes only. Send to COMING EVENTS [email protected]. Competitive REQUEST FOR PROPOSALS Changing the Perception of Our Re- salary and benefit package DOQ. The deadline for submission is Friday, April 15, 2011. gion. 5-8 p.m. April 19. Women in De- REQUEST FOR PROPOSAL fense Michigan The City of Warren and the Downtown Development Authority are EEOC Compliant. The Area Agency on Aging 1-B (AAA1-B) Chapter; National is seeking proposals from organizations Defense Industri- or individuals who are interested, NON-PROFIT al Association; experienced and knowledgeable in others. With Tam- preparing an analysis of potential Business Development Specialist - Michigan business opportunities that will allow the my Carnrike, company to utilize its core competencies COO, Detroit Re- First Children’s Finance (FCF) is seeking a and assets to develop new business gional Chamber. Business Development Specialist to work with the opportunities within its southeast Sterling Inn, Ster- Michigan and Corporate staff to ensure the Michigan market. ling Heights. $35 effectiveness of FCF’s services in Michigan, AAA1-B is a non-profit organization WID/NDIA mem- including (1) loans to child care providers; (2) whose mission is to enhance the lives of management assistance and business planning to bers, $45 non- older adults and adults with disabilities. child care providers; and (3) private sector The full text of the request for members, $10 engagement. proposal is available on our website Carnrike more at the door. Salary and benefits competitive with nonprofit www.aaa1b.com under "Doing Contact: (248) 643-6590; email: business development specialist salaries for Business with Us". [email protected]; comparable organizations in Michigan. website: www.wid-mi.org. Please visit www.FirstChildrensFinance.org for EQUIPMENT & a complete job description. MERCHANDISE Facebook: A Deep Dive for Business Interested applicants should submit a cover letter Owners and Marketers. 11:30 a.m.-1 detailing how their experience meets the requirements of the position with a resume to the TELECOMMUNICATIONS p.m. April 20. Automation Alley. attention of: Learn to effectively use social media Carol Zapfel AVAYA . . . NORTEL . . . IP OFFICE . . . BCM marketing. Automation Alley, Troy. [email protected] PARTNER . . . NORSTAR Preregistration closes April 18. Mem- www.FirstChildrensFinance.org Wire and Install Services . . . Systems/Parts bers $20 in advance, $30 at the door; [email protected] (800) 342-5666 20110411-NEWS--0041-NAT-CCI-CD_-- 4/8/2011 3:47 PM Page 1

April 11, 2011 CRAIN’S DETROIT BUSINESS Page 41 Local retailers divided on market impact of Whole Foods

BY NANCY KAFFER Foods’ Midwest division. grocer has shown interest in the of ours or not, there are some summer, said co-owner Michael CRAIN’S DETROIT BUSINESS Whole Foods works to bring lo- area; Detroit Mayor Dave Bing ex- things you’re able to get at their Solaka, vice president for business cal food vendors pressed optimism store you can’t get at ours … but strategies at Henry Ford Health Sys- News that Austin, Texas-based into its stores about such a deal we’ve got a little ambiance to our tem. Whole Foods Market Inc. may be con- through its forager We’ve just got to during a luncheon store.” “You can read it a lot of different sidering a store in Detroit’s Mid- program, said “ two weeks ago. If the grocer decides to site a ways, but on behalf of my brother town provoked a range of respons- Kate Klotz, pick up Whole Foods store in Midtown, industry aver- Peter and I, number one is maybe es from local retailers. Whole Foods’ won’t confirm ages suggest that it would take at we’re doing the right thing by On the one hand, there’s oppor- Midwest pub- our game whether it’s inter- least 18 months to rehab an exist- opening up a food store if the big tunity — Whole Foods has a track lic relations ested in Detroit. ing building and at least three guys think there are merits,” Sola- record of working with locally manager, and make “What can you years to build a store from the ka said. “It’s always been about owned vendors to place products which in- do, though?” said ground up. making the pie bigger instead of in its stores. cludes educa- sure we’re Paul Willis, one of Small-business owners say they fighting over the same little But some small retailers are tion about the owners of Good- plan to spend the time before a po- piece.” worried that the Midtown market the process. serving our well’s Natural Foods tential Whole Foods opening by But will Ye Olde Butcher Shoppe isn’t yet robust enough to support “We’re Market at West growing services and products be able to compete? multiple organic grocers. happy to sell clients. Willis and Cass. that will give a competitive advan- “That’s going to be tricky,” he Midtown bakery Avalon Interna- their products if ” The market, open tage. said. “There are only so many peo- tional Breads, on West Willis and they meet our Paul Willis, for five years, has Willis and his four partners plan ple that have the disposable in- Cass, recently inked a deal that quality stan- Goodwell’s Natural Foods Market annual revenue of to expand the store’s prepared food come in this market to shop at a placed some breads and vegan dards,” Klotz said. about $500,000. offerings. Pizza by the slice and gourmet grocery store. On the oth- products in Whole Foods’ five Another round of Whole Foods- “We’ve got to just pick our game samosas have been surprise hits, er hand, this gives us an opportu- Michigan stores. Chesterfield is-coming-to-Detroit buzz took off up and make sure we’re serving he said. And gluten-free products nity to not be the highest-priced Township-based Achatz Handmade after Crain’s reported April 11 that our clients. I’m sure they’ll go over have been a growing segment of grocery store.” Pie Co.’s products are carried in Midtown Detroit Inc. President Sue to Whole Foods. Who wouldn’t? the store. Small retailers and national the 40 stores that comprise Whole Mosey confirmed that the organic Whether you’re a loyal customer “It was kind of shocking news to chains complement each other in us,” said Hollis Smith, co-owner downtown areas, said Susan Pol- with wife Kim of Kim’s Produce on lay, executive director of the Ann Woodward Avenue between East Arbor Downtown Development Author- Willis Avenue and East Canfield ity, using the example of Ann Ar- REAL ESTATE Street. “I can’t say we’re not happy bor-based Borders Group. Inc.’s because it’s good for the city, but downtown shop and the city’s we’re very cautious about it be- plethora of independent book- AUCTIONS PROPERTY MANAGEMENT cause it could mean we would have stores. to close our doors.” “What I think it did was brought Kim’s Produce opened last Janu- out the best in both,” she said. ary, and Smith said he’s concerned “They both went to their that the store, which sells locally strengths.” ! " "#$ %&'%& () * Professional Multi-Family Management grown, organic produce and has A small retailer, she said, can % +, £%#$. /%&) for over 45 years. about $120,000 in annual sales, has- beat a large chain “on service or WE SPECIALIZE IN n’t had the time to develop a solid awareness or a buyer’s club. … + 0 +%1 customer base. That’s where small organic food " # $%& $ £(&) % * + *& #&,& )&-) • Increasing Occupancy • & & . ./0123- - ")$ 4567& # & WE MANAGE YOUR ASSET TO “With Whole Foods (potentially) sellers have a chance to distin- &-) $- # " 0189.3+1.:89+:;8 coming down the line, it’s not go- guish themselves — how are we ACHIEVE GREATER CASH FLOW. 898(! 9(89%.:89+:(.3£(.3<89/ ing to happen today or tomorrow, different from Whole Foods? The Our Model Works. ;8+3=8(19 &) 5# ))-& $=)& 5#- > and we are here now, we are pro- little guy can really distinguish $ & )& $ =, #-6& )6 CALL JEFFREY KAFTAN AT 248-352-3800 viding these things that you’re himself by having something top- % +, 23 % + www.KaftanCommunities.com seeking now,” he said. “We are notch.” -$- 5 & * )) $ ,6 "-& $ #7()) " providing fresh organic fruits, or- The mix between local and na- . " $$ # ))-)$& * + *= 6# ))- LUXURY PROPERTY $&6> >!4 ganic meats, natural milk, gluten- tional retailers is a compromise free products.” successful downtowns must nego- . $$ & +%+3%+4 + ++4 + Private Acreage with 265’ Smith said he plans to concen- tiate, Mosey said. ,% +%& 5! &+6 % $ Sandy Beach on Lake Huron trate on growing the store’s gro- “You need both, that’s the bot- &. 78,9:9/;; ,31)* 6 + ? & $ Located at the end of a private road on over 4.8 cery delivery service. tom line,” she said. “For continued "& , - ) 6 & # " &>\ >4A(, + & acres of Northern Michigan woods, less than an Ye Olde Butcher Shoppe was confidence in the market by other 6> # " &">& ) 6;))6 # -&-$4# > =&! \)?) 0B " hour north of the Zilwaukee Bridge in Tawas scheduled to open last May at 3100 investors, they want to see some of City, is a hidden gem. Woodward Avenue, the spot once those flagship nationals, but we ; ) $$ ) " & 5&" & >\ The unique sandy beach, all 265 feet, occupied by short-lived upscale also want to make sure that we 44, ###& " $$ "&,& )&-) ) 4 disappears into the shimmering waters of Lake market Zaccaro’s. But there have have a very local flavor kind of Huron. No steel retaining walls -- you can been delays, and the market is now walk or drive across the beach right into Lake # expected to open this spring or See Whole Foods, Page 42 Huron. ! There is a classic log cabin built in 1937 that INDUSTRIAL PROPERTY OFFICE SPACE was a destination for certain Detroit auto tycoons with 3 stone fireplaces, including one Industrial Building Office Space Available for Lease right off the beach. 40,000 sf warehouse • $2.50 sq ft. • 30 ft Legal Aid and Defender Assocation, Inc. See listing and photos at eave height • 6 loading docks • one drive- currently has office space available for www.forsalebyowner.com. Price reduced to in door. Excellent condition. 1-mile from Lease. 24-hour security & CCTV. $984,900. If you’re looking for the ultimate Metro Airport. Class A Rd. Taylor, MI Please contact Mrs. Cleveland at in privacy with scenic shores, call for a tour (313) 967-5555 or at (248) 802-6219. Call Sabadash 313.608.6904 [email protected] for details. MISCELLANEOUS OFFICE/ENGINEERING SPACE ANNOUNCEMENTS 83 acres • 5,000-20,000 Sq Ft R1 zoning Macomb Twp. $550K • Great Troy location Having Delivery Problems with your Subdivision - Fenton Twp. 100 lots. • Wired, Move-in Ready Japanese metal stamper lately? Then buy • Short or Long Term Leases your own, right here in Detroit. Heavy gauge Water, sewer, roads. Ready to build. specialist. 50 presses up to 500 tons, $675K OBO. Owner wants it sold! 2170 E Big Beaver, Troy, MI in-house die-making. Accepting reasonable Veterinarian Business 248-247-1800, ext 1963 offers. 734.547.5481 - 25 years in Or Stop in Any Time business. With real estate. $330K land contract available. Located in Northern COMMERCIAL PROPERTIES Detroit. New Center Area------Tech Town Bill McMachen 586-915-4441 Four Buildings For Sale CallCall [email protected] 70,000 Square Foot Cluster For Sale • 30,000 Sq. Ft. • 22,500 Sq.Ft. yy • 10,000 Sq. Ft. • 7,500 Sq. Ft. Tuxedo Shop Priced to Go ~ $22-35 Per Square Foot odaoda Complete Inventory tt Call: 313-886-6500 313-215-3893 — — — — — — — — — — For Lease Advertise your for a custom advertising 1,600 sf - Grosse Pointe Products and Services in program • 313.446.6068 Call: 313-886-4700 Crain’s Detroit Business 20110411-NEWS--0042-NAT-CCI-CD_-- 4/8/2011 3:48 PM Page 1

Page 42 CRAIN’S DETROIT BUSINESS April 11, 2011 Whole Foods: Reaction Golf: Dealmakers return to links ■ From Page 41 ■ From Page 1 neighborhood. We want to see audience but they’re the benefi- riety of ways, said Steven Brady, small independents as well as na- ciary of (people) being reminded Oakland Hills’ director of instruc- tional chains.” to come downtown. ” tion. We’ve got a pro-business But that doesn’t mean the The arrival of a national retail- “The game itself is full of obsta- “ process will be painless. er like Whole Foods is a double- cles, hazards, unexpected results, governor, and that has given a lot “There’s always a time in the edged sword, said Neil Stern, a etcetera. So, many folks use the middle while the market is grow- senior partner with Chicago- game as an ‘interview’ to see how of people some ing, where if you overbuild, it’s based retail consulting firm others handle bumps in the road,” tough for folks,” Mosey said. McMillan Doolittle. he said. encouragement. “Whether you’re food, a coffee “They work really hard with There’s been an increase in golf- ” bar, a grocer, it’s about the mix, small businesses that are produc- tour bookings and golf events this Kate Moore, Michigan Golf Course Owners Association and growing population simulta- ers and suppliers to them. They year at some of the state’s resorts, neously.” do an awful lot with local produc- a trend expected to pick up as ifesting itself in more than just a lic and private companies obtain National chains also bring ad- ers and suppliers to bring them Michigan’s weather improves, round on the links at a swanky pri- financing capital. And a lot of his vertising and marketing dollars, into the store,” he said. said Kate Moore, executive direc- vate club. deals were born on the golf course, said Jana Ecker, planning direc- But for competitors, it’s a dif- tor of the Michigan Golf Course Own- “Business golf is coming back, said Meyering, who began his tor of the city of Birmingham. ferent story. ers Association, a Lansing-based but in a couple different ways,” business golf career after serving “It helps promote not only “From a retail standpoint, trade group. said St. Clair-based golf and travel as a U.S. Marine Corps officer during their business but the downtown they’re competitive as a retailer She also attributes renewed in- writer Janina Jacobs, who found- the Korean War. as a whole,” she said. “But we’ve with small mom-and-pop special- terest in business and recreational ed the metro De- “When you take to the golf seen a lot of success in our down- ty organic shops,” Stern said. golf to Rick Snyder’s election. troit chapter of course, it’s a personal thing be- town with local retailers as “Hopefully what you’d say about “We’ve got a pro-business gover- the Executive cause you like each other. You can well.” anybody coming into market is nor, and that has given a lot of peo- Women’s Golf As- talk very freely because there’s no Pollay concurs. that they will expand awareness ple some encouragement because sociation in 1993 one around you,” he said. “What we’ve seen is the big of market, and perhaps every- they see that as a positive for busi- to boost busi- For some, golf is purely a busi- guys, Borders, Whole Foods, body thrives as a result of it. But ness in general,” she said. ness golf. ness tool instead of a hobby. have the big advertising budgets, the reality of retail is a zero-sum The rebound is gradual. Club member- “That’s pretty much the only the speakers, the musician who’s game, and if the market is not ex- “Everybody’s coming back ships are tough time I golf,” said Leslie Zawada, promoting the new CD, and they panding, it has to take business around slowly,” said Bill Hobson, because they who just opened Civil Engineering can put a big ad in the newspa- from somewhere.” owner of Frankenmuth-based Hob- can’t write off Solutions Inc. in Attica near Lapeer. Jacobs per,” Pollay said. “The small re- Nancy Kaffer: (313) 446-0412, son Media Inc. and producer of the dues like they “I think it’s a great opportunity tailer, their audience is a local [email protected] TV and radio show “Michigan Golf used to, so people are flocking to to take potential clients and to nur- Live.” “It’s a trickle, a few drips Michigan’s more expensive public ture existing relationships with and drops here and there.” courses — many of which rival pri- clients. You have a whole day with He blames some of the decline vate courses in other states, said each other and you get to know on the battering the Detroit 3 took Jacobs, who co-owns Detroit’s Ca- them. It’s pretty common in our in- in Washington and from the me- pers Steakhouse. dustry.” dia. The automakers were labeled “You don’t have to belong to a Dan Richards used golf to main- as profligate spenders, and things private club to do business golf,” tain business relationships with such as corporate golf club mem- she said. major clients such as Kmart, Kelly berships — already on the decline The other trend she’s said she’s Services Inc. and AAA Michigan when because of the economy — were seen is doing business on the dri- he worked for Michigan Bell and lat- scrapped by many companies fear- ving range instead of on the links. er AT&T Inc. in the 1980s and ’90s. ful of being tarred with the same “Then you don’t have the issue Sometimes it was playing, and brush. of slowing any foursome down,” sometimes it was sponsorship of “Golf unfairly was punched in said Jacobs, who rates golf courses major events, such as the 1985 U.S. the gut by Congress and labeled an annually for Golf Digest and is a Open at Oakland Hills, and treating unnecessary evil that needed to be golf analyst on radio and TV. “It clients to expensive perks. eradicated,” Hobson said. can give you more time with your “It was kind of like business golf Fear of being viewed as wasteful client.” on steroids,” he said. at the height of the automotive cri- There is optimism on golf’s aca- sis led General Motors Co. to scrap demic front, too. its sponsorship of the Buick Open in Jan Brintnall owns DeWitt- Charity events 2009. That move was a death sen- based Jan Brintnall Golf School LLC Most business connections in tence for the state’s annual PGA and teaches a business golf pro- golf occur during large outings — Tour event, which dated back to gram for Michigan State University’s such as cause-related fundraisers 1958. In March, GM returned to Eli Broad College of Business. and chamber of commerce scram- golf tournament sponsorships and The program launched a year bles — because of the number of has said it would like to sponsor a ago, and she’s had about 300 stu- people participating, said Vic Chi- tournament in Michigan. (See sto- dents in that time. She said she ex- asson, who has taught a business ry, Page 18.) pects interest in business golf to golf class at Eastern Michigan Univer- At least one Michigan company rebound. sity. is starting to pump some of those “As the economy improves, “The outing has taken over,” he dollars back into the game. In more people will start to conduct said. March, General Motors returned business golf again,” she said. Three years ago, there were to golf by sponsoring the Cadillac about 1 million organized golf out- Championship in Miami. Nick ings nationally, according to the Twork, director of communica- The golfers Phoenix-based Golf Tournament As- tions for Cadillac, said the GM lux- Carl Meyering, founder of the sociation of America. ury brand would “like to bring golf Meyering Corp. in Grosse Pointe That dropped to about 800,000 back to Detroit,” but hurdles re- Farms, said he over the past two years. main. would spend Player count dropped from 80 “The biggest obstacle is the $25,000 annually per event to 72, and the average net date,” Twork said. “There aren’t a on his private donation fell in that time to $5,000 whole lot of open weekends (on the club member- per outing from $8,000, said Phil PGA Tour schedule) at this point.” ship but would Immordino, the GTAA’s president. “When people get concerned get $100,000 in Roughly 90 percent of outings about the economy and start cut- new business are fundraisers and the rest are ting back, business golf is going to from relation- competitions. fall by the wayside,” said Judy An- ships forged on The organization didn’t have a the links. Michigan-specific breakdown. derson, who up until a few years Meyering ago ran the Sterling Heights-based “If a guy is re- Early research this year shows consultancy Business Golf ally serious about being successful, those numbers beginning to creep Unlimited. “Businesses didn’t want he’s got to go where the big (busi- up, Immordino said. this to be known, how much mon- ness) hitters are — the private “I see a lot of optimism. People ey they were spending on it.” clubs,” he said. “Then you build are doing events they may have your relationships because people held off in the past couple of years. are always curious about what you The golf courses are booking more Recovery do. Then you get an opportunity to events.” The uptick that insiders say is make your sales pitch.” Bill Shea: (313) 446-1626, happening in business golf is man- Meyering’s company helps pub- [email protected] 20110411-NEWS--0043-NAT-CCI-CD_-- 4/8/2011 3:46 PM Page 1

April 11, 2011 CRAIN’S DETROIT BUSINESS Page 43 Venture: Blazing trail Paint: Pigment supply running dry ■ From Page 3 ■ From Page 1 egy is to make initial invest- with our OEM customers to mini- gets approved and online, Xirallic ments of between $250,000 and mize disruptions,” he said in an may be back on line,” he said. $750,000, with follow-on invest- emailed statement. “We are also It’s an emotional “Timing is a big issue.” ments in each company totaling closely monitoring the limited “ John Taylor, director of supply $2 million to $3 million as devel- availability of Xirallic pigments business, and people chain programs at Wayne State Uni- opment milestones are met. and the potential impact to our re- versity, said Merck could have and The investment of $1 million in finish customers.” get wedded to certain should have authorized another Flud is in partnership with Lud- Pittsburgh-based PPG Industries pigment supplier to produce the low Ventures LLC of Southfield, an Inc., with its automotive coatings colors. patented Xirallic under a short early-stage investment firm operations based in Troy, also is ” term contract to prevent bottle- founded in 2009 by Jonathon Tri- Gilbert Hermelin trying to create an alternative to Mike Wall, neck. est that has had a very busy 2011 the metallic or “pearl” effect of IHS Automotive Inc. “In the interest of supply chain to date. This will be its seventh coming rehab, and Bingham Merck’s Xirallic pigment. ors,” he said. “If they are on the unity and maintaining the perfor- investment this year. Farms-based Sachse Construction “We formed teams to tackle the bubble, it might push them over mance of the supply chain, they Flud was founded last year and will design and build the space. problem as quickly as possible the edge and they might not buy (Merck) should be finding ways to currently has fewer than 10 em- Detroit Labs LLC, a for-profit en- and, at this point, we’re still work- the car.” contract alternative suppliers, ployees, but will ramp up hiring tity recently created by Detroit ing on alternatives,” said Mike Ford Motor Co. also has restricted even just for a few months to keep and open a Detroit office soon, said Venture Partners’ founders but Millar, manager of strategic mar- dealer orders for Tuxedo Black the supply chain intact,” he said. Linkner, Detroit Venture Part- not part of its portfolio, will be a keting. “We have proposed alter- and Royal Red, Candy Red and Red “It would be repaid with loyalty to ners’ CEO and managing partner. tenant in the Madison building natives to the OEMs but haven’t Fire paints used on the Ford F-150 the supplier and would have kept “This is a hot company in a hot incubator and offer Web and moved forward yet.” and Super Duty pickups, Explorer, OEMs from restricting paint op- space. They could have taken smartphone-application develop- The problem is that the effect Xi- Expedition, Focus, Taurus, Lin- tions while consumers are still money from Silicon Valley or ment services for the VC firm’s rallic gives to automotive paints coln MKS and Navigator. buying.” Boston, but they chose to take it portfolio companies and other can’t be easily replicated, said “This paint pigment is really a Despite Merck’s confidence in a from us,” he said. Gilbert-related companies. Stacey Russell, marketing commu- global platform component itself,” June production start, the plant’s The investment in hiredMY- Linkner said that while the nications manager for Southfield- Wall said. “It creates a challeng- proximity to the damaged and un- way is for nearly $500,000 and in- firm has drawn inquiries from based OEM coatings group and au- ing situation to satisfy consumer stable Fukushima nuclear plant cludes some individual investors. institutional investors such as tomotive refinish solutions unit of demand as we go into the spring could change that timeline at any It, too, was founded last year and pension funds and from family Ludwigshafen, Germany-based selling season.” moment. has fewer than 10 employees. offices and high-net-worth indi- BASF Corp. Merck will resume partial pro- The 7.4-magnitude tremor that “I’ve been working with them viduals, the founders decided to The Xirallic pigment produces a duction of the pigment by June 1, struck near the reactor on Thurs- the last year or so to help them re- start investing their own money glitter effect, especially in sun- the company said in a statement day leaves more questions than fine the concept,” said Linkner. He right away rather than wait for light. Darker paints with the pig- last week. answers about the ongoing crisis, said employers won’t pay any list- months to have a formal first ment have a metallic appearance, It could take just as long for oth- Taylor said. ing fee until they make a hire. He close from outside investors. and lighter colors produce a pearl- er suppliers to create alternatives, “We just don’t know the true sta- said would-be employees would “We will be taking on limited like appearance. meaning suppliers looking to capi- bility of the reactor,” he said. “Any pay a token fee if a recruiter reads partners, but we’ll fund the first “It can’t be easily replaced with talize on alternatives have to work (supplier) plant close to the reactor their résumé resume but would be few deals with our own capital,” the quality our customers expect, fast, Millar said. has a lot of uncertainty moving paid $100 by the website if the post- said Linkner. “The approach is and that’s the biggest challenge “Even if the automakers decide forward.” ing led to a job. to do the first few deals ourselves right now,” she said. to go in a different direction with a Dustin Walsh: (313) 446-6042, Linkner said requiring job and get our systems in place. BASF also is working with different pigment, by the time it [email protected] seekers to pay a token fee pre- We’ll look to bring in outside in- OEMs to provide alternative pig- vents floods of applications to vestors later this year.” ments. employers from those who are He said he couldn’t discuss a Gage Products Inc., a Ferndale- clearly unqualified. target size for the VC firm’s first based company that cleans and Linkner said Detroit Venture fund for fear of violating U.S. Se- services automotive painting sys- Partners has looked at about 200 curities and Exchange Commission tems, has already been dispatched deals since Nov. 1. rules, “but we plan to invest by several automakers to clean out “We’ve had great deal flow,” he more than $100 million over the painting systems that used Xiral- 800-292-3831 said. He said the firm hopes to next couple of years.” lic. have at least eight portfolio com- “We built this model to focus Automakers must clean the Xi- indiantrails.com panies by the end of the year and on three categories — the jockey, rallic paint systems before intro- add 10-15 companies next year which is the entrepreneur; the ducing a non-metallic paint to and “and north of 15 a year in horse, which is the business; and keep production lines moving, 2013 and beyond.” the race, which is the market op- said Dan Finkiewicz, chairman Ludlow Ventures and Detroit portunity,” said Linkner. and president of the 110-employee Venture Partners have also “Digital companies are very company. ONE HU G ND teamed up to fund a convertible capital efficient. You don’t need Gage has 12 cleaning jobs lined IN R T E A D note of $100,000 that will be millions to build a plant. If they up at plants across the globe over R Y B E

E A

L R

awarded to the winner of the hit, you can scale them up quick- the next two weeks to clean out Xi- S Funded By Night contest at the ly,” said Linkner, whose own dig- rallic systems. In a routine year, C 100 FutureMidwest Conference in East- ital company, Pleasant Ridge- the company averages two clean- ern Market, April 28-29. based ePrize, grew quickly after ings per month, Finkiewicz said. Would-be entrepreneurs will its founding in 1999, corralling a Automaker executives said the make pitches for funding for stable of Fortune 500 companies typical response has been to in- their new businesses the first to run their online promotional form dealers that some colors are day of the event, with the winner campaigns. at a premium, or just not available announced that night. Chris Rizik, CEO of the $50 mil- at all. Linkner said the vast majority lion Renaissance Venture Capital Chrysler Group LLC doesn’t expect of companies that get funding Fund I LP, said that it was smart of any production impacts from the will be headquartered in Detroit, Detroit Venture Partners to start shortage but has restricted new ve- and those that remain based else- investing now rather than wait hicle orders in 10 colors, said Katie where will develop some pres- for institutional partners. He said Hepler, manager of purchasing ence in the city. it is very difficult for first-time communications for the automak- “I can’t imagine us doing a deal fund managers, even those with er, in an emailed statement. that doesn’t involve the city of such entrepreneurial track The colors are: Brilliant Black, Comfort and Detroit. We’re going to create a records as Linkner and Gilbert, Deep Cherry Red, Redline, Inferno, Silicon Valley in the Madison to get money from institutional Bronze Star, Rugged Brown, building,” he said. “We want to investors right out of the gate. Hunter Green, Ivory, Billet Silver make it a creatively rich environ- “Fortunately, they are smart and Blackberry Pearl. t$IBSUFST Luxury ment. We want people running up guys with their own money, and As paint and pigment suppliers and down the stairs, feeding on they can start investing and build- rush to engineer alternatives, the t5PVST each other’s energy. Dan’s vision, ing a track record,” said Rizik. “A Xirallic shortage could affect auto and I support it, is if we can build track record is the first thing an sales, said Mike Wall, senior man- t4IVUUMFT 00 some density here, we can really institutional investor looks at. ager of strategic analysis for $100 change the game.” “I’m happier seeing them out Northville-based IHS Automotive t$POWFOUJPO4FSWJDFT SAVE OFF Quicken Loans closed on the now doing deals rather than wait- Inc. purchase of the 48,000-square- ing for months to raise institution- That’s because consumers often t$PSQPSBUF&WFOUT foot Madison Theatre building in al money, because they can add a make buying decisions based on Contact Indian Trails for details. Must use this downtown Detroit in January. lot of value in the meantime.” color, he said. t4DIFEVMFE4FSWJDF promotional code at time of booking: 2011CDB-APR The Detroit office of Gensler Archi- Tom Henderson: (313) 446-0337, “It’s an emotional business, and tecture is the architect for an up- [email protected] people get wedded to certain col- 20110411-NEWS--0044-NAT-CCI-CD_-- 4/8/2011 5:36 PM Page 1

Page 44 CRAIN’S DETROIT BUSINESS April 11, 2011 Arts collaboration kicks off website for volunteers

BY SHERRI WELCH Shepherded by the Cultural Al- site for two years. “There is a new breed of volun- on maintaining volunteer relation- CRAIN’S DETROIT BUSINESS liance and MNA, the collabora- “After those two years are up, teers,” said Friman, president of ships, Mullins said. tions are working to help identify we’re expecting … the majority of Envisions Design Ltd. in Saline. “We’re looking at how to reach An online clearinghouse for vol- new operating models to help the our members will have experience People who are out of work and out and help people feel they are unteers — the first of six local arts arts sector realize cost efficiencies in the value of this, (and) they’ll résumé-building aren’t just inter- part of this organization.” and culture collaborations in de- and attract new patrons. then pay an annual fee” to remain ested in stuffing envelopes or tak- Volunteers “bring expertise and velopment to help stabilize the sec- Four local organizations devel- a part of it,” Lyon said. ing tickets anymore. Baby boomers help to our team here, but … it’s the tor — is expected to roll out at the oped the idea for the cultural vol- The annual fee will be less than want to “get in, do something inter- opportunity to engage our commu- end of this month. unteer project: Arts & Scraps, De- $100 per organization and will help esting and move on to something nity and have people feel like The Cultural Alliance for Southeast- troit Artists Market, Edsel & Eleanor fund VolunteerMatch’s ongoing else interesting,” Friman said. they’re part of our organization” ern Michigan is beta testing a web- Ford House and the University of technical support of the cultural “A well-worded posting will that’s most attractive, Mullins said. site that lists volunteer opportuni- Michigan Exhibit Museum of Natural volunteer site, Friman said. bring in more people than a gener- The Charles H. Wright Museum of ties at local arts and cultural History. “By having the ic (posting).” African American History in Detroit organizations and lets residents “The idea for this program real- Cultural Alliance The new site has used VolunteerMatch to at- sign up online. ly came out of our members’ need promote volun- We will be able to and volunteer tract volunteers for the past couple “Whenever people get to partici- to connect with and do a better job teerism for “ recruitment of years, said volunteer coordina- pate in arts and culture, that’s a re- with volunteers,” said Cultural Al- arts and more workshops are tor Reba Johnson. ally cool area … (that’s) different liance Executive Director Maud culture, we bringing local The museum has about 300 vol- from other volunteer experi- Lyon. will be able effectively arts and cultural unteers on its roster, most han- ences,” said Lynne Friman, one of Human resources is the single to more ef- groups volun- dling special events and other the consultants biggest cost for any arts organiza- fectively reach out to a teers and exper- front-line volunteer activities that who helped de- tion, she said, and using more vol- reach out tise they didn’t promote the museum. But after at- velop the web- unteers, as other nonprofit subsec- to a much much broader previously have. tending just one of the Cultural Al- site and pro- tors do, would be a huge help. broader The Edsel & liance-sponsored workshops, “I gram, and now The Cultural Alliance is work- pool of vol- pool of Eleanor Ford learned enough to immediately ap- manager of coming with the well-known national unteers,” House had no ply (it) and get some valuable re- munity rela- website VolunteerMatch to develop Lyon said. volunteers. volunteer pro- sults,” Johnson said. tions and mar- and power its cultural volunteer Just under half ” gram when Pres- With focused wording on a vol- keting alliances website — which is embedded at of Cultural Al- Maud Lyon, Cultural Alliance for ident Kathleen unteer opportunity she posted, she for the Cultural VolunteerMatch.org until it goes liance members Southeastern Michigan Mullins arrived was able to attract a highly skilled Alliance. Friman live in late April. The Cultural Al- have been trained to post volun- in 2008. The Grosse Pointe Shores volunteer to help her manage the “But they liance website name is under teer opportunities, and about 45 organization launched a volunteer museum’s volunteer database. may not realize they can get be- wraps until late this month. are actively using the new cultural program about a year and a half “When the museum utilizes vol- hind the scenes at the (Detroit Insti- “The health and human services volunteer site. The alliance hopes ago so it could better engage visi- unteers to accomplish its mission, tute of Arts), the Edsel & Eleanor Ford sector has used VolunteerMatch to have 75 percent of its members tors and patrons, Mullins said. it saves staff time and dollars,” House or any of our member orga- extensively, but arts and culture, posting on the new site by the end The museum now has 20-30 vol- Johnson said. nizations — through volun- not so much,” she said. “So this is of this month and 90 percent by the unteers working events to repre- The Cultural Alliance is devel- teerism.” breaking ground for Volunteer- end of the year, Friman said. sent the Ford House, assisting with oping an advertising campaign to The project is supported by a Match.” To help arts organizations think education programming, helping promote the new website, on a $132,000 grant over two years, as VolunteerMatch.org will contin- differently about how they attract visitors and even helping tend the budget of about $30,000, Lyon said. one of the six collaborations fund- ue to power and support the local volunteers and understand what gardens. And it’s looking for more. It hopes to launch the campaign ed in October through the Michigan website after its independent today’s volunteers are seeking The cultural volunteer site rep- — which could include online ads, Nonprofit Association with $2 mil- launch, Friman said. when they volunteer, the alliance resents not only an additional re- social media and billboard ads — lion in grants from the Troy-based The Cultural Alliance’s 128 has tapped consultant Jill Fried- cruiting tool for volunteers but in May. Kresge Foundation and New York- members are receiving a free sub- man Fixler, president of JFFixler also a way to connect with other Sherri Welch: (313) 446-1694, based Ford Foundation. scription to the cultural volunteer Group in Englewood, Colo. nonprofits to share best practices [email protected] Severstal: Steeled for future Coalition to drive transportation issues ■ From Page 3 BY AMY LANE da turned back. nealing (heat treatment) line that will heat Institute. CAPITOL CORRESPONDANT The projects include route and track im- and cool steel strips in a process that cre- “I think the use of these steels will be con- provements and maintenance, and an Ann ates lighter, stronger steel. The project has- sidered the progressive standard over the A new coalition of business, community, Arbor station that would serve trains and n’t begun construction, as it’s waiting for next 10 years, and it has given the industry environmental and other interests plans to buses. the loan approval. a competitive edge against other specialized press a transportation funding and policy Last fall, the Municipal League and oth- A tandem pickle line and cold-rolling materials,” Gravatt said. agenda in Lansing, Washington and local- ers pressed for action on a bill that could mill where raw steel is dipped in acid and Analysts project auto production will ly. provide state matching funds for formed into steel strips. The project will see reach about 13 million vehicles, up from The Transportation For Michigan, or $161.1 million in federal grants awarded to completion in September 2011. 11.6 million in 2010, providing more oppor- Trans4M, coalition hopes to gain traction Michigan for the high-speed passenger A wide-exposed hot-dip galvanized line, tunity for steelmakers, Gravatt said. on issues such as more money for Michi- rail projects along the Detroit-Chicago which will strengthen the steel with a coat- Severstal is one of two major Detroit-area gan roads and bridges and matching funds corridor. But the Legislature never ap- ing of zinc, to be completed in January 2012. steel manufacturers. Pittsburgh-based Unit- that can leverage federal dollars for high- proved the measure, and the bill died at Advanced high-strength steel can reduce ed States Steel Corp. produces advanced speed rail — items that have failed to win year’s end. a vehicle’s weight by as much as 25 percent high-strength steels for the automotive mar- approval despite other Weinfeld said the coalition also plans to and cut emissions by up to 15 percent, ac- ket at its Detroit and Ecorse mills, but it de- individual and joint lob- revisit the comprehensive 2008 recom- cording to the American Iron and Steel Insti- clined to comment on its output or con- bying efforts. mendations of a public-private state tute. tracts. “We’re hopeful we’ll transportation task force on Michigan’s “Advanced high-strength steels meet the Severstal reported a net loss of $1 billion be able to accomplish transportation needs and funding alterna- needs of the automotive customers by re- on revenue of $9.6 billion in 2009, but grow- something by building tives — recommendations that included a ducing weight and emissions while main- ing demand last year decreased its 2010 net public awareness and variety of tax and policy changes — and awareness with policy- taining or improving safety,” said Nancy loss to $577 million on revenue of $13.6 bil- “put that back on the table as a starting makers on the need to be Gravatt, vice president of communications lion. point.” investing in transporta- for the steel institute in Washington, D.C. Upon completion, the new Severstal Dear- Another area of attention may be region- tion … the whole multi- And with federal corporate average fuel born lines will boost production capacity at Weinfeld al funding mechanisms, such as a regional modal transportation economy regulations looming — rising to the plant to 900,000 tons of advanced high- sales tax for infrastructure and transporta- system” that includes not just roads and 34.1 mpg in 2016 — lightweight steel is in strength steel, Natalya Ivanova, a Moscow- tion, Weinfeld said. bridges but transit and rail operations, even higher demand. based spokeswoman for Severstal, told Other coalition members are the Michi- “The government mandates to increase Bloomberg last week. said Arnold Weinfeld, director of strategic gan Environmental Council, the Michigan light-vehicle mileage as well as improved In March, Severstal Dearborn was award- initiatives and federal affairs with the Chamber of Commerce, the Community Eco- crash-worthiness has encouraged automak- ed a $10 million brownfield tax credit for the Michigan Municipal League, a member of the nomic Development Association of Michigan, ers and steel producers to come together to project from the Michigan Economic Growth coalition. the Detroit Branch NAACP, the Michigan develop products and technologies to meet Authority. For example, the Snyder administration Suburbs Alliance, Transportation Riders Unit- the new standards,” Pruett said. Severstal acquired the Dearborn plant last week submitted an application to the ed and The Right Place Inc. in Grand Sixty percent of automotive vehicles in from Rouge Steel Co., a former unit of Ford U.S. Department of Transportation for about North America contain parts made of ad- Motor Co., in 2004. $200 million for high-speed rail improve- Rapids. vanced high-strength steel, according to the Dustin Walsh: (313) 446-6042, ments, competing with other states for a Amy Lane: (517) 371-5355, Southfield-based Steel Market Development [email protected] share of $2.4 billion in rail funds that Flori- [email protected] 20110411-NEWS--0045-NAT-CCI-CD_-- 4/8/2011 6:18 PM Page 1

April 11, 2011 CRAIN’S DETROIT BUSINESS Page 45 Residencies: Funding cap has impact on Michigan www.crainsdetroit.com ■ From Page 1 EDITOR-IN-CHIEF Keith E. Crain PUBLISHER Mary Kramer, (313) 446-0399 or Medicare funding — specifical- offer them residency programs in- to come to the U.S. for training. ciety, thinks the state’s new med- [email protected] EXECUTIVE EDITOR Cindy Goodaker, (313) 446- ly, graduate medical education — state will result in losing their in- “Quite a number of slots are ical schools will fill this need. 0460 or [email protected] is expected to take further cuts un- tellectual talents to other states.” filled by foreign medical gradu- “We have a need for physicians DEPUTY MANAGING EDITOR Jennette Smith, der health care reform as the na- However, more federal funding ates,” Colletti to be in front of patients, shown (313) 446-1622 or [email protected] SENIOR EDITOR Bob Allen, (313) 446-0344 or tional budget deficit worsens, said isn’t off the table as national orga- said. “For a with those areas of need,” Forzley [email protected] Peter Coggan, president and CEO nizations continue to lobby Con- while, we’re go- said. “Our medical schools have WEST MICHIGAN EDITOR Matt Gryczan, (616) 916- of the Grand Rapids Medical Educa- gress, said John Prescott, chief ing to have caught the message and are focus- 8158 or [email protected] COPY DESK CHIEF Gary Piatek, (313) 446-0357 or tion and Research Center and associ- academic officer at the Washing- enough residen- ing education on those special- [email protected] ate dean for graduate medical edu- ton, D.C.-based Association of Ameri- cy slots. But ties.” ASSISTANT NEWS EDITOR Jeff Johnston, (313) cation at MSU’s College of Human can Medical Colleges. eventually, the Outside of creating physicians, 446-1608 or [email protected] DATA EDITOR Anne Marks, (313) 446-0418 or Medicine in Grand Rapids. “We’re facing unprecedented foreign medical medical schools and teaching hos- [email protected] The implication is that Michi- health care reform, but the reality grads are going pitals are a major economic engine WEB DEVELOPER Steve Williams, (313) 446- gan’s medical students will be is we have an aging population to get pushed within the communities they serve 6059, [email protected] forced to leave the state to com- and an aging physician popula- out.” — generating a total economic im- WEB EDITOR Gary Anglebrandt, (313) 446-1621, Kelley [email protected] plete their residency programs — tion,” he said. “When we look at Mark Kelley, pact in Michigan of $24.2 billion EDITORIAL SUPPORT Robertta Reiff (313) 446- which is detrimental to increasing health care on a national level, we executive vice president and chief and $1.3 billion in tax revenue, ac- 0419, YahNica Crawford, (313) 446-0329 NEWSROOM (313) 446-0329, FAX (313) 446- the number of new physicians in need to make sure we’re training medical officer at Detroit-based cording to a 2009 study by the Asso- 1687 TIP LINE (313) 446-6766 Michigan, Coggan said. enough physicians to take care of Henry Ford Health System and CEO ciation of American Medical Colleges. REPORTERS In-state training goes a long way that population.” of the Henry Ford Medical Group, said Michigan’s three new medical Daniel Duggan: Covers retail, real estate and toward creating doctors who will The residency programs — foreign residents are often the best schools will create additional tax hospitality. (313) 446-0414 or [email protected] remain in Michigan to practice. Six- which on average cost nearly medical students at a hospital. revenue for the state through prop- Jay Greene, senior reporter: Covers health care, ty-one percent of Michigan doctors $100,000 a year per resident — also “A lot of times, these residents erty, income and sales taxes — insurance and the environment. (313) 446-0325 or [email protected]. completed their residency pro- won’t receive help from the state. are the smartest people in their which, in turn, could fund more Chad Halcom: Covers law, non-automotive grams here, and 39 percent attended In the 2011 fiscal year, Michigan’s country and they are coming here programs. manufacturing, defense contracting and Oakland and Macomb counties. (313) 446-6796 or medical school in-state, according teaching hospitals face a $67 mil- to train,” he said. “We’ve had great But the state’s own $1.7 billion [email protected]. Tom Henderson: Covers banking, finance, to the state medical society. lion overall cut in Medicaid fund- success with foreign residents at budget deficit may absorb the ad- technology and biotechnology. (313) 446-0337 or “What I wish happened was ing for residency programs. Henry Ford, and it would be a ditional revenue, Kelley said. [email protected]. Nancy Kaffer: Covers small business, the city of more discussion on how many res- The Detroit Medical Center faces a shame to lose those positions.” Henry Ford has 850 residents in Detroit, Wayne County government. (313) 446- idency positions $23 million cut, while UM, which CMU’s school its system — with about 50 funded 0412 or [email protected]. Bill Shea, enterprise editor: Covers media, we need to build trains 1,100 residents at its three will concentrate from the system’s operating bud- advertising and marketing, the business of sports, up the physician hospitals, faces a $15.5 million cut on educating pri- get, without Medicare and Medic- and transportation. (313) 446-1626 or [email protected]. manpower and in funding. mary-care doc- aid payments. Nathan Skid: Multimedia reporter. Also covers the food industry and entertainment. (313) 446-1654, how those are UM funds about 100 residents tors for rural or “The bottom line is it’s going to [email protected]. linked to all without federal and state funding. underserved take tremendous leadership to get Sherri Welch: Covers nonprofits and services. these medical Lisa Colletti, the university’s as- communities. this to work,” Kelley said. “Most of (313) 446-1694 or [email protected] Dustin Walsh: Covers auto suppliers, steel, higher schools,” Cog- sociate dean and director for grad- Gregory Forz- us are not clear how to solve this education and Livingston and Washtenaw gan said. uate medical education, said some ley, chief med- problem, but we know we’re going counties. (313) 446-6042 or [email protected] LANSING BUREAU “Residency of the increase of medical students ical information to have to do it without a lot of ex- Amy Lane: Covers business issues at the Capitol, programs are in the state probably will translate officer at St. pansion and without a lot of gov- telecommunications and utilities. (517) 371-5355, Coggan FAX (517) 371-2492, [email protected]. or 115 W. absolutely criti- into more residency slots for Forzley Mary’s Health ernment support.” Allegan, Suite 220, Lansing 48933. cal. They govern the future physi- Michigan students — which means Care in Grand Rapids and chair- Dustin Walsh: (313) 446-6042, ADVERTISING cian workforce, and an inability to fewer foreign students will be able man of the board of the medical so- [email protected] ADVERTISING DIRECTOR Marla Downs, (313) 446-6032 or [email protected] SALES INQUIRIES: (313) 446-6052; FAX (313) 393-0997 ADVERTISING SALES Christine Galasso, Matthew J. Langan, Lori Tournay Liggett, Tamara Rokowski, Cheryl Rothe, Dale Smolinski Coupons: CLASSIFIED SALES (313)-446-0351 Innovations keep company growing MARKETING MANAGER Irma Clark EVENTS MANAGER Nicole LaPointe ■ From Page 3 MARKETING ARTIST Sylvia Kolaski SALES SUPPORT Suzanne Janik, YahNica Crawford has sites focusing on niche areas The company adopted its cur- the market can circulate and hit coupons to groups of people who CIRCULATION Candice Yopp, Manager. — SaveOnDining.com and rent name in 1995. A year later, all the stores, but a guy with a little buy in to the offer. MARKETING COORDINATOR Kim Winkler SaveOnTravel.com — and is devel- Gauthier moved into the Chicago store in Troy can do it also. That’s “Direct mail has all spent a lot of PRODUCTION MANAGER Wendy Kobylarz oping a smartphone app. market when a similar company really our lifeblood — the oil money trying to monetize coupons PRODUCTION SUPERVISOR Larry Williams Gauthier started his career as closed shop. change, the restaurant, the hair sa- online, but Groupon did us all a fa- CUSTOMER SERVICE

owner of a print shop and realized “I got a call from the manager lon. And we try to get value for our vor by making people understand MAIN NUMBER: Call (877) 824-9374 or write he could pitch the idea of a coupon out there. He had seven salespeo- homeowners, to bring them things there’s value there, that you could [email protected] SUBSCRIPTIONS $59 one year, $98 two years. booklet to his printing customers. ple and himself but didn’t have a they use every day.” save money by printing coupons Out of state, $79 one year, $138 for two years. He started offering coupons in 1981 product to sell,” he said. “He asked Gauthier said the company pays out,” he said. “I have 300 to 400 Outside U.S.A., add $48 per year to out-of-state rate for surface mail. Call (313) 446-0450 or as Val-U-Guide, but they quickly (us to) consider opening in Chica- a lot of attention to what he calls restaurants that run with us in the (877) 824-9374. became a side product as he ven- go.” the “top 25,” service businesses Detroit market, with great deals SINGLE COPIES: (877) 824-9374. tured into purchased editorial con- A move into Minnesota came such as salons, carpet cleaners and like buy one get one free, and you REPRINTS: (800) 290-5460, ext. 125; (717) 505-9701, ext. 136; or rosie.hassell tent. Marketplace Magazine was four years later, Gauthier said. window replacement companies. don’t have to spend anything. Just @theygsgroup.com. distributed from 1984 to 1987 — in- The region was chosen because it “The mailbox is still a very pow- print it out and take it in. But peo- TO FIND A DATE A STORY WAS PUBLISHED: (313) 446-0367 or e-mail [email protected]. cluding a brief distribution part- was relatively close and had poten- erful way for small businesses to ple weren’t doing it, and it’s tough nership with Crain’s — when Gau- tial for a million-home circulation. advertise,” he said. “It’s one of two to charge for something you’re not CRAIN’S DETROIT BUSINESS IS PUBLISHED BY CRAIN COMMUNICATIONS INC. thier shifted the business focus Save On Everything operated in things that are working: direct getting a lot of redemption on. CHAIRMAN Keith E. Crain back to coupons. In 1992, the com- Houston from 2004 to 2010, closing mail and the Internet.” Groupon really brought awareness PRESIDENT Rance Crain pany became Mike’s Marketshare last November. Gauthier said the An Internet presence, multiple that you could find value online.” SECRETARY Merrilee Crain TREASURER Mary Kay Crain Coupons. company’s performance in that markets and a versatile price While Save On Everything lost Executive Vice President/Operations “The coupons were sort of the market never met his expectations. structure are crucial for coupon business during the recession, an William A. Morrow Group Vice President/Technology, redheaded stepchild, but we decid- Like most companies, Save On distributors in today’s market- increased sense of frugality can Manufacturing, Circulation ed to do coupons full time because Everything lost business when the place, said Don Duncan, owner of heighten customer appreciation of Robert C. Adams Vice President/Production & Manufacturing we weren’t making any money in economy crashed in 2008, with a 35 two local Val Pak franchises, Livo- coupons, Gauthier said. Dave Kamis the magazine,” he said. percent drop in some markets, nia-based Val Pak Associates Inc. “Coupon usage over the last year Chief Information Officer Paul Dalpiaz But Gauthier had to re-evaluate Gauthier said. and Val Pak of Western Michigan. and a half has increased signifi- Corporate Circulation/Audience Development the business model. So it was time to evaluate the “There are some companies in cantly,” he said. “Saving money is Director Kathy Henry “We were charging about $265 company’s business model again, metro Detroit that market all over ‘in’ today. There was a time when G.D. Crain Jr. Founder (1885-1973) for a coupon, but it was costing us he said, ultimately changing the the country that have been doing people were embarrassed to push a Mrs. G.D. Crain Jr. Chairman (1911-1996) EDITORIAL & BUSINESS OFFICES: $285. It doesn’t take a rocket scien- size of the coupon book to offer a well,” he said. “That rounds things coupon across the table. Right now, 1155 Gratiot Ave., Detroit MI 48207-2732; (313) tist to figure out that’s not going to greater range of pricing options. out a little bit.” though a lot of the small businesses 446-6000 work,” he said. Small businesses can purchase Online coupons, Duncan said, we deal with are strapped for cash Cable address: TWX 248-221-5122 AUTNEW DET CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 So Gauthier asked his cus- coupons that will be mailed exclu- give clients another option, and and one of the first things that go is is published weekly, except for a special issue the third week of January, a special issue the fourth tomers if they’d mind if he started sively to homes in their areas, while multiple price points mean that advertising, I believe that what we week of August, and no issue the third week of printing coupons on the front and larger companies can buy areawide buying in remains attractive even went through is going to have a December by Crain Communications Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. Periodicals back of the booklet’s pages, circulation. A quarter-page coupon, to small businesses without lots of lasting effect on all of us. As a busi- postage paid at Detroit, MI and additional mailing offices. POSTMASTER: Send address changes to promising that they’d not be in sent to 25,000 homes, can cost as lit- cash. nessman, I’m much more frugal ... I CRAIN’S DETROIT BUSINESS, Circulation proximity to a competitor. tle as $250; a full-circulation, full- Save On Everything has had on- don’t think people are going to go Department, P.O. Box 07925, Detroit, MI 48207- 9732. GST # 136760444. Printed in U.S.A. “I started charging $200 a page ad can be as much as $14,000. line components for years, Gau- back to wasting money just be- Entire contents copyright 2011 by Crain Communications Inc. All rights reserved. coupon, so I was getting $400 for “It allows just about anybody” to thier said, but it owes a debt to cause they have it.” Reproduction or use of editorial content in any the same piece of paper,” he said. advertise, Gauthier said. “So a high-profile companies like Nancy Kaffer: (313) 446-0412, manner without permission is strictly prohibited. And business took off. Belle Tire with about 60 locations in Groupon, which offers online [email protected] 20110411-NEWS--0046-NAT-CCI-CD_-- 4/8/2011 5:18 PM Page 1

Page 46 CRAIN’S DETROIT BUSINESS April 11, 2011 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF APRIL 2-8

producer of “The Ralphe Ⅲ Ann Arbor-based get. Oakland County has Armstrong Show,” an on- Musicians Adeona Pharmaceuticals Inc. used a three-year budget line music program hosted said it has reached an for several years. $3.8M for old by the legendary Detroit Ⅲ Bloomfield Township agreement to sell about 1.7 bassist. ratify DSO million shares of stock for has obtained the first AAA Weeks after a chance about $3.5 million to a new bond rating in its history meeting at a mutual institutional investor, the from Standard & Poor’s in stadium site friend’s place in December, contract proceeds of which will be advance of a $3 million Armstrong asked Fields if used to continue develop- bond sale to finance im- he’d be interested in pro- embers of Local 5 of ment of a zinc-based treat- provements to its sanitary ducing a show. the American Federa- ment for symptoms of sewer system. The idea, already in the M tion of Musicians on Alzheimer’s disease. Ⅲ Former Detroit Mayor still on deck works, was given a boost Friday ratified the tentative Ⅲ American International Kwame Kilpatrick is back at a when Bing gave Fields contract with The Detroit Group has paid the Michigan state-run prison in Jackson o, $3.8 million. Go- Richner, a some extra free time. Symphony Orchestra, ending a Office of Financial and Insur- County after a judge ap- ing once? Going partner at “The Ralphe Armstrong six-month strike that was ance Regulation $3.25 mil- proved a transfer from the S twice? law firm Show” will run 6-8 p.m. Fri- one of the longest in sym- lion as part of a 50-state, federal prison in Milan. He The deadline to spend a Clark Hill days on the UDetroit Network phony orchestra history. $100 million settlement for needed to return to state $3.8 million federal ear- PLC, was at UDetroit.com beginning Musicians returned to re- alleged underreporting of prison to be considered for mark aimed at redevelop- named exec- May 20. hearse Thursday as voting workers’ compensation in- parole in July. He’s jailed ment of the old Tiger Stadi- utive direc- The show will spotlight took place, in preparation surance premiums. for violating probation in a um site is approaching, tor of Michi- musicians, artists, entre- for free, sold-out concerts Ⅲ Beleaguered Communi- criminal case that forced according to the office of gan Film preneurs and creative pro- scheduled for the weekend. ty Central Bank Corp. missed him out of City Hall in 2008. U.S. Sen. Carl Levin, the Richner First, a jects. Contract details were not a March 31 deadline for fil- Ⅲ The 2010 census found Michigan Democrat who ob- statewide The first show will fea- immediately released. ing its report for the year that some Detroit neighbor- tained the funds in 2009. group representing studios, ture Detroit singer and ac- that ended Dec. 31 and in a hoods grew, according to a The money must be oblig- equipment providers, in- tress Freda Payne, who is notification of the late fil- report from the Southeast ated by Sept. 30 and spent dustry workers and others best known for her hits ON THE MOVE ing warned the U.S. Securi- Michigan Council of Govern- within five years, Tara An- in the movie, television and “Band of Gold” and the Ⅲ Clarence Sevillian, for- ties and Exchange Commis- ments. The west-side Hub- dringa, Levin’s press secre- digital media production in- Vietnam War protest song mer CEO of Doctors’ Hospital sion that “it is unlikely that bard-Richard neighbor- tary, said last week. dustry. “Bring the Boys Home.” of Michigan, we will be able to file our hood grew 3 percent, while The Detroit Economic The group last week an- Read the full story at De- has been 2010 Form 10-K by April 15, the Jeffries neighborhood Growth Corp., which directed nounced Richner and a 12- troitMakeItHere.com. named CEO 2011, if at all.” in Midtown grew 13 per- all questions about the ear- member board of directors of POH Re- The Mt. Clemens-based cent. The upper east cen- mark to Levin’s office, is- that now includes Linden gional Med- bank-holding company has tral area south of Ham- sued a request for proposals Nelson, CEO of Raleigh Michi- Econ club history exhibit ical Center been unable to raise capital tramck gained 123 for the site last year. It has gan Studios in Pontiac, the on display at museum in Pontiac, and may be shut down by residents. said that none of the propos- state’s largest film studio, succeeding regulators. Ⅲ Detroit Public Schools als it has received are vi- and Bill Black, executive di- The Detroit Economic Club Patrick Lam- Ⅲ Tata Technologies Inc. has hired the National Asso- able. rector of Teamsters Joint is celebrating its diamond berti. has formed a vehicle devel- ciation of Charter School Au- The funds don’t have to Council 43 in Detroit. anniversary with a new ex- Sevilian Ⅲ The opment group based at its thorizers to evaluate and be spent at old Tiger Stadi- John Truscott, president hibit opening Saturday at Southfield Community Foun- Novi headquarters. The recommend new charter um, according to the terms and principal of communi- the Detroit Historical Muse- dation has named Raquel group will lead work at school operators as part of of the bill, but must be spent cations firm Truscott Ross- um, called “Detroit Eco- Robinson its new executive Tata centers in the United the district’s plan to trans- for the preservation and re- man LLC, which is working nomic Club: 75 Years of Re- director, succeeding inter- Kingdom, India and Ger- form 45 of its schools into development of a public with Michigan Film First, markable Speakers and im Executive Director Brid- many, much of it on elec- charter schools. park and related business Compelling Conversa- said Richner will be aiding get Hurd. Robinson is for- tric vehicle technology. Ⅲ The Michigan econo- activities in Detroit’s Cork- tions.” the group with organiza- mer executive director of my is on the mend and pro- town neighborhood. tional activities, advising The exhibit features pho- jected to add 64,600 jobs this tographs and artifacts, as Vision ’007 Northwest Detroit on legal matters and doing Youth and Family Services, a OTHER NEWS year, according to data some lobbying. well as audio and video of compiled by the University of Richner tabbed to lead the speakers the club has program of Hartford Memori- Ⅲ Robert Bobb said he is Richner also is chairman al Church in Detroit. willing to consider staying Michigan. Michigan is ex- new pro-film rebate group of the University of Michigan’s hosted. pected to continue its Visitors will see the origi- on as emergency financial A statewide film-industry board of regents. manager of the Detroit Pub- growth in 2012, adding nal bell used to bring the 61,500 jobs at an annual group fighting to preserve COMPANY NEWS lic Schools beyond June in meetings to order, ledgers rate of 1.9 percent. Michigan’s film tax incen- Ⅲ Quicken Loans has com- the wake of Michigan’s new Ex-city official Fields lands from the days of club Ⅲ Oakland County said tives continues to beef up, pleted its purchase of the financial oversight law, the founder Allen Crow and a that five life-science compa- expanding its board of di- online gig with jazz bassist 14-story, 505,000-square-foot Associated Press reported. roster of the original mem- nies either located or ex- rectors and naming former Chase Tower in downtown Ⅲ Though asthma afflicts Al Fields, dismissed last bers. panded operations during Republican state represen- Detroit and also has final- more than 1 million people month by Detroit Mayor For details, including the first three months this tative and attorney Andrew ized the purchase of a 1,095- in Michigan, Southeast Dave Bing as group execu- times and ticket prices, call year, generating $34.8 mil- space parking garage two Michigan isn’t even in the Richner to aid its cause. tive of utilities, has found (313) 833-1805 or visit De- lion in total investment in blocks away, Chairman Dan top 10 as far as environmen- Grosse Pointe Park’s himself a new gig: full-time troitHistorical.org. the quarter and creating or Gilbert says. tal and medical factors and retaining about 1,000 jobs. Gilbert is also in talks to numbers of people affected, That compares with just acquire the Ritz-Carlton Ho- according to a new study by under $26.9 million in total tel at Tower City Center in the Asthma and Allergy Foun- investment from the incep- downtown Cleveland, dation of America. Detroit was tion of the Medical Main Crain’s Cleveland Business ranked 23rd and Grand Street program in 2008 reported. The hotel is with- Rapids 62nd in the U.S. through 2010, for a total of in a few hundred feet of the Ⅲ A federal government 15 companies committing Horseshoe Casino Cleveland shutdown could halt more BEST FROM THE BLOGS $61.7 million to date. operations planned by than 900 contract awards to READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS Ⅲ Detroit Mayor Dave Gilbert’s Rock Gaming and companies every business Bing appointed two com- Caesars Entertainment Corp. day through the U.S. Army missioners to the Detroit Let capitalism do its work What directs website traffic? Ⅲ Cerenis Therapeutics SA, Tacom Life Cycle Management Water and Sewerage Board: a closely held company Command in Warren if the Bradley Kenoyer of Ford Motor If the presence of Despite the buzz based in Ann Arbor and shutdown lasts more than a Co. and Linda Forte, senior large-scale“ operators and“ proliferation of self- Toulouse, France, is testing few weeks, the command’s vice president of business leads to some weaker styled social media a compound in a new class executive director said Fri- independent gurus and specialists, affairs at Comerica Inc., of drugs that mimic high- day as the budget battle con- businesses falling by social media thus far completing Bing’s appoint- density lipoprotein — also tinued. A shutdown could the wayside, well, has had very little direct ments to the board. that’s … a necessary impact on most website known as good cholesterol also put in jeopardy much of evil in the name of traffic. — to purge clogged arter- a projected $16 billion in progress. ies. Cerenis founder Jean- spending for 2011, he said. OBITUARIES ” Louis Dasseux told Ⅲ The Wayne County ” Bloomberg News Service Board of Commissioners ap- Ⅲ Francis O’Brien, retired Reporter Nathan Skid’s Detroit-area restaurant blog Reporter Bill Shea’s “For Immediate Release” blog on that three major drugmak- proved an ordinance allow- Oakland County Circuit Court can be found at www.crainsdetroit.com/skid the media, transportation and marketing can be found ing the county executive to judge, died March 31. He at www.crainsdetroit.com/shea ers have approached Cere- nis with written proposals. propose a multiyear bud- was 78. DBpageAD.qxp 4/6/2011 4:24 PM Page 1

Ignite Small Business Growth

Here’s some food for thought – and a chance to hear about how the food industry is Wednesday, May 11 growing in Michigan! Start your day with a leadership talk by Howdy Holmes, CEO of MSU Management Education Center, Troy Chelsea Milling, the maker of the iconic Jiffy Mix brand baking products. No matter what AND industry you’re in, you can beneﬁt from advice from a CEO whose company has been led KEYNOTE SPEAKER by family for eight generations. Howdy S. Holmes Stay the day to attend Catalyst, a conference for emerging and established small President and CEO businesses and entrepreneurs. The breakfast and conference will bring together hundreds Chelsea Milling Co. of the region’s business leaders to help attendees identify tangible opportunities for Maker of Jiffy Mix growth. Brought to you by Crain’s Detroit Business, the Detroit Regional Chamber and the PRESENT Walsh Institute. PANELISTS Join us to network and get tips on growing your business – regardless of what product or Daniel Carmody service your company makes or sells. President Eastern Market Corp. Igniting Small Business Growth Pricing: 7:30-10:15 a.m. $75 for Crain’s Attendees and Crain’s Program Joseph McClure Detroit Regional Chamber members 10:15 a.m. - 4 p.m. IN PARTNERSHIP WITH Co-Founder Catalyst Conference McClure’s Pickles $90 for all other guests 4 p.m.-5:30 p.m. On-site Pricing: Networking Reception Pam Turkin $90 for Crain’s Attendees and Founder Detroit Regional Chamber members REGISTER AT:www.detroitchamber.com/catalyst Just Baked Cupcakes LLC $125 for all other guests For $75 rate Enter promotion code: CRAINS

TITLE SPONSOR PREMIER SPONSOR MAJOR SPONSORS GIVE AWAY SPONSOR LOCATION SPONSOR CATALYST SPONSORS

TITLE SPONSOR Join Crain’s General & In-House Counsel Summit May 3 PREMIER SPONSOR GENERAL SPEAKER SPONSOR Keynote speakers include: TRACK SPONSORS Maura Corrigan Director, Michigan Department of Human Services; Former State Supreme Court Justice IN PARTNERSHIP WITH Randy Johnson ® Sr. Vice President, Labor, Immigration and PEN AND NOTEPAD SPONSOR Employee Beneﬁts, U.S. Chamber of Commerce David Leitch MAJOR SPONSORS PRESENTED BY General Counsel and Group Vice President, Ford Motor Company VIP TITLE SPONSOR VIP LOCATION SPONSOR OPENING REMARKS SPONSOR Lafe Solomon Acting General Counsel, National Labor Relations Board Recognition event, educational BAG SPONSOR GIVE AWAY SPONSOR sessions and awards summit To register visit: www.regonline.com/2011counsel. May 3, 2011 REGISTRATION: WATER BOTTLE SPONSOR SUPPORTING SPONSOR LOCATION SPONSOR Suburban Collection Showplace, Novi Summit & awards: Awards reception & $75 each strolling dinner ONLY (formerly Rock Financial Showplace) $70* groups of 10+ $60 each $90 walk-ins $55* groups of 10+ BREAK SPONSORS Summit...... 1 – 5:30 p.m. $75 walk-ins Award Reception & Strolling Dinner....5:30 – 8 p.m. *For group rates please call 313.446.0300 DBpageAD.qxp 4/6/2011 10:28 AM Page 1

WITH VERIZON TECHNOLOGY, YOU’RE NOT JUST BOOSTING PRODUCTIVITY, YOU’RE INCREASING POTENTIAL.

NEW! SAMSUNG 4G MOBILE HOTSPOT OR VZW 4G LTE USB MODEM 551L Connect on the fastest 4G network in America $149.99 2-yr. price – $50 mail-in rebate $ 99 debit card. New 2-yr. activation on a 4G 99EACH Mobile Broadband plan required.

NEW! ThunderBolt™ by HTC

VZW 4G LTE USB Samsung 4G LTE ThunderBolt™ Verizon Exclusive Modem 551L Mobile Hotspot by HTC Verizon’s first 4G LTE smartphone $ 99 No rebate required. New 2-yr. Business Apps 249 activation & data pak required.

TO GET THE BEST TECHNOLOGY FOR YOUR BUSINESS, 1.800.VZW.4BIZ(4249) SEE A SMALL BUSINESS SPECIALIST AT A VERIZON STORE TODAY. verizonwireless.com/smallbusiness

Activation fee/line: $35 IMPORTANT CONSUMER INFORMATION: Subject to Cust Agmt, Data Plan & credit approval. Up to $175 early termination fee ($350 for advanced devices). Offers & coverage, varying by svc, not available everywhere; see vzw.com. While supplies last. Restocking fee may apply. LTE is a trademark of ETSI. © 2011 Verizon Wireless. D5031