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20140922-NEWS--0001-NAT-CCI-CD_-- 9/19/2014 7:18 PM Page 1 ® www.crainsdetroit.com Vol. 30, No. 38 SEPTEMBER 22 – 28, 2014 $2 a copy; $59 a year ©Entire contents copyright 2014 by Crain Communications Inc. All rights reserved Page 3 round is McLaren revives push for scheduled new Oakland hospital to be bro- ken on Gthe new Red Wings How to arena on Sept. 25. It’s the first step not only for the project, but for the larger area of devel- pay for a opment around it. ‘Fail jail’ fix unlikely until Bill Shea answers after Ficano leaves office some commonly asked questions Gilbert aims to quicken about the project’s new arena lanes with new I-375 ramp cost and financing. See Page 17 Nonprofit Compensation Social service agencies turn to incentive pay for execs, Page 11 This Just In Expats join Detroit’s comeback story Molina Healthcare to lease part of DMP building First event sparks inspiration HIGHLIGHTS The Homecoming Molina Healthcare of Michi- was created to be an gan will lease space for a – including city mortgage plan immersion, packed satellite office in the Dan with speakers and Gilbert-owned Detroit Media CRAIN’S DETROIT BUSINESS experiences. But it Partnership building at 615 W. ayor Mike Duggan took MORE FROM HOMECOMING was supposed to create excitement, Lafayette Blvd. Auto technology: Southeast his Detroit story to a na- too. Highlights: Tom Lasky, managing Mtional audience last week. Michigan is at the center of the Berry Gordy Jr., member of Bloomfield Hills- At the Detroit Homecoming, Dug- auto industry’s reinvention, for the based Forum Group Commer- second time, Page 20 founder of Motown gan described in words and slides Records, returned to cial Real Estate LLC, which Homecoming headlines: From real his plans for rebuilding the city Detroit from Los represented Molina, would estate investment to philanthropic post-bankruptcy, one street light, Angeles to receive the plans, Page 20 not disclose the size of the blighted house and sewer main at a inaugural Detroit lease but confirmed that one time. Complete Homecoming coverage, Homecoming detroithomecoming.com has been signed. But, he told an audience of about “Legend” award for A real estate source said 150 Detroit “ex- creating a musical get mortgages,” he told the crowd. Friday that the space was patriates” as legacy. Duggan had the right audience. 30,000 square feet. well as local Adam Levinson, now By the time the Detroit Home- Jennifer Kulczycki, vice pres- business and leading a hedge fund coming adjourned Friday after- in Asia, announced a ident of communications for civic leaders, he noon, a group of expats had $10 million pledge to Gilbert’s Rock Ventures LLC, had a problem: said she could not confirm hatched an idea of raising $10 mil- the Detroit Children’s Even though Fund, a side fund the lease or the square lion to issue mortgages in the city. homes sold created by the Josh Scott, founder of Craftsy, an footage. through the Skillman Foundation. Molina earlier this year online community for makers, led a city’s Build- Singer and brainstorming session that pro- purchased a building in the ingDetroit.com songwriter Michael duced the idea of raising $5 million Troy Corporate Center for Duggan auction website Posner, a Southfield from Detroit expats, and finding a its headquarters. The com- are coming in at sales prices of native, returned from local bank or foundation to match pany has about 300 employ- $50,000 or more, mortgage ap- AARON ECKELS California to close that sum. He also said a bank would ees in Troy; it’s unknown praisals are coming in lower than HERE’S THE PITCH: During a Friday business pitch the formal program have to administer the program. competition, Carla Walker-Miller of Walker-Miller by performing his how many may move to De- selling prices — creating a big prob- “And I’ll write the first check for Energy Services told how her business, which sold song, “Buried in troit. lem for buyers. — Kirk Pinho components of the electric grid before the recession, Detroit,” a homage to “The single biggest problem to nearly went broke before reinventing itself. the city. removing blight is that we can’t See Homecoming, Page 21 TITLE SPONSOR What’s behind their success? Oct. 7•7:30 a.m.•MSU Management Education Center Register at crainsdetroit.com/events•313-446-0300 NEWSPAPER 20140922-NEWS--0002-NAT-CCI-CD_-- 9/19/2014 4:15 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS September 22, 2014 MICHIGAN BRIEFS Towns along Lake Michigan $1 billion program to cut emis- sions from coal-fired power plants expect strong tourism season 2 global suppliers promise nearly 1,000 jobs near GR to settle air pollution complaints, While the economic recovery The Associated Press reported. helped bolster tourism numbers in Nearly 1,000 jobs and $169 million in investments project includes local support. The plants are in Essexville, Luna Pier, Muskegon and West Olive. West Michigan this year, a steady are coming to two communities near Grand Rapids, In the second announcement, Plasan Carbon Com- Ⅲ After 41 years of running the Pure Michigan advertising push courtesy of automotive suppliers based in China posites said it would create up to 620 jobs over three Cascade Engineering family of compa- from the state and community level and Israel. years as it spends $29 million to consolidate opera- nies, Fred Keller will hand over the helped bring in regional visitors, In Greenville, Dicastal North America Inc. plans to tions from Bennington, Vt., its former headquar- CEO duties to Mark Miller, particularly from out of state, MiBiz create up to 300 jobs over four years as it develops a ters. The company is in line to receive up to $6 mil- MLive.com reported. Miller, a De- reports. plant to build 3 million aluminum alloy wheels a lion through a Michigan Business Development troit native and Wayne State Universi- Sally Laukitis, executive direc- year on the former campus of United Solar Ovonic Program performance-based grant, including local ty graduate, currently is president of tor of the Holland Convention and Visi- LLC, a subsidiary of Auburn Hills-based Energy support from the city of Walker, according to The Conversion Devices Inc. that closed in 2012 — as did Right Place Inc., the Grand Rapids area’s economic Grand Rapids-based Cascade Engi- tors Bureau, agreed that a lot of the neering. Keller, who founded the growth has been on the fringes of its parent. Dicastal is a new North American entity development organization. created by China-based CiTiC Dicastal Co. Ltd. Plasan Carbon, whose parent is Israel’s Plasan company in 1973, will remain chair- the traditional tourism season. For The $8.5 million state incentive package for the SASA Ltd., is now based in Wixom. man. example, hotel occupancy rose 4 Ⅲ Walker-based Meijer Inc. ex- percent in April and 10 percent in pects to give out 30 percent more May compared with last year. MiBiz reported. But the industry is city has installed a window that al- way for the state to improve the flu shots this year over last, Preliminary numbers show still projected to pick up during the lows visitation from the comfort of speed and comfort of Amtrak ser- MLive.com reported. In 2013, the tourism spending is on track to second half of the year and into 2015. your vehicle. Curtains automati- vices between Detroit and Chicago. retailer provided 103,000 shots to grow again this year, said Michelle The updated outlook, prepared cally open when a vehicle pulls up, The Detroit News reported the Sen- customers. Grinnell, public relations manager by IHS Global Insight for the Grand and mourners get three minutes to ate cleared the final barrier by end- Ⅲ In other news about Meijer, for the Michigan Economic Develop- Rapids-based Business and Institu- view a body as music plays. ing an investigation of a passenger under a settlement with the feder- ment Corp. Michigan saw $18.7 bil- tional Furniture Manufacturers Asso- Funeral home President Ivan rail car purchase. Transportation al Consumer Product Safety Commis- lion in travel spending in 2013, up 24 ciation, now projects 2014 shipment Phillips said many people fear fu- officials plan to buy two sets of cars sion, the company will pay $2 mil- percent from an eight-year low of growth of 3.3 percent to $9.2 bil- neral homes, and this is one way to and engines to allow trains to reach lion to settle charges that it $15.1 billion in 2009, according to lion, followed by 6.8 percent address that problem, if the family 110 mph and cut the travel time be- knowingly sold and distributed data provided by the MEDC. Last growth next year to $10.3 billion. of the deceased so chooses that op- tween Detroit and Chicago by up to hundreds of recalled products year also set a record for leisure Through midyear, industrywide tion. At least three other U.S. fu- two hours in the years to come. through a system it operated with travel at $13.8 billion. orders were off 1.4 percent to $4.70 neral homes offer drive-through The $58 million trains would re- a third-party contractor. Meijer billion, while shipments inched service. Although it remains un- place 30- to 40-year-old Amtrak neither acknowledges nor denies upward 1.1 percent to $4.60 billion. clear whether any asks whether cars. The money would come from the charges. Updated office furniture forecast: you would like large fries.