Snyder Hits Road to Push Prop 1

20150323-NEWS--0001-NAT-CCI-CD_-- 3/20/20155:47PMPage1 how, Page11 Bob Paultotell restructuring: Compuware lessons inleadership UM bizschooltoofferDPS contain healthcarecosts? Direct primarycare:Canit reached itsloftypresence Looking Back:HowDetroit week withtherestofstory. ments of as thisone,usingtheele- above thisblurb. the papernowinyourhands. office sportinganewlook. Business rent design, than 750issuesusingitscur- NEWSPAPER same must-read Next week: New look, iac:MAAwards Finance: M&A Page 3 We hopetoseeyounext Yes, that’stheexactissue Now lookatthepicture Take alookatthecopyof How new,youask? Next week,aftermore will cometoyour Crain’s Crain’s Detroit new look. ©Entire contentscopyright2015byCrainCommunicationsInc.Allrightsreserved www.crainsdetroit.com Vol.31,No.12 portunity toattractnewaudiences. tied totheexhibit,capitalizingonop- groups arehostingprogramsthematically area restaurantsandshops. to otherartsandculturalgroups, extending wellbeyondthemuseum’swalls region, countryandworld. ready drawingpeoplefromaroundthe O “Double PortraitofDiegoandI,”FridaKahlo,1944 far beyondreaches theDIA Rivera-Kahlo show’s impact Institute ofArtsandhasbecome,inasense,newDetroitindustry. The economicimpactoftheDiegoRiveraandFridaKahloexhibithasextendedbeyondwallsDetroit Snyder hitsroadtopushProp1 About twodozenlocalartsandcultural But theeconomicimpactofexhibitis the Rivera andFridaKahloexhibitat nly aweekintoitsfour-monthrun,theDiego Detroit InstituteofArts CRAIN’S DETROITBUSINESS B Y tion Day,Gov.RickSnyderlastweekbe- Plan’s perils:Complexadd-ons,statechamber’s stance DAVID HALL gan makingtheroundstostumpfora S With justsevenweeksleftbeforeElec- HERRI contentious ballotproposalthat CRAIN’S DETROITBUSINESS W ELCH would generate$1.2billion B for Michigan’scrumbling roads byincreasingthe state salestax. is al- Y Critics, however,sayPro- B ILL MARCH 23–29,2015 ATTORNEYS ATLAW S HEA notes at from entréestakenKahlo’scookbooksand and dishescreatedwithRiveraKahloinmind, And adozenarearestaurantsareofferingdrinks amendment approvedbythevoters measure requiresaconstitutional tax onepercentagepointto7percent.The campaign facestoincreasethestatesales hill strugglethe“SafeRoadsYes”vote a visitonMarch19,acknowledgedtheup- ernments. crease fundingforschoolsandlocalgov- bills linkedtothemeasurethatwouldin- and confusingbecauseofthe10other posal 1ontheMay5ballotistoocomplex (see ouradonpage2) Intellectual Property World Rocking the El Zocalo Eatery Snyder, whospokewith featuring pan-searedbeeftongueand Then there’sHamtramck’s in Guanajuato,Mexico. “ash-baked beets,”amongotheringredi- ents, thathailsfromRivera’sbirthplace and freshlimeaskeyingredients. Street as Tequila’scousin,Maraschinoliqueur tail withMezcal,adistilledspiritknown PHOTOS COURTESYOFTHEDETROITINSTITUTEARTS with “Panzón+Friducha,”adish ’s “OdetoDetroitIndustry”cock- in Detroit’sMexicanTownto See Kahlo,Page37 knows), (yes,he the DIA his firstvisitto and Kahlo reflects onRivera Crain’s F DIA MIA? Crain’s RIEME ORGIVE Rock City Bill Shea Page 11 during Union terview with of acrumbledconcretebridgetohisin- making thecase.Heevenbroughtapiece and whySnyderhimselfissoactivein campaign coalitioninthecomingweeks, tations willbemadetogroupsbythe fiat. rather thanvialegislativeorexecutive This isonereasonhundredsofpresen- “It’s hard.It’sataxincrease,”hesaid. it necessary. tus ifthefederalgovernmentdeems put upto36aircraftonbackupsta- the fleetbutallowedserviceto in Decemberhaltedaplantoretire Defense AuthorizationActpassed mise versionofthe2015National service. Mostrecently,acompro- members ofCongresswhokeepitin who wanttoretireitandsenior get sortiesbetweenmilitaryleaders intact throughseveralyearsofbud- retire theA-10Thunderboltjet. that adoptsa Congress passesa2016defensebill for thefirsttimein100yearsif come abasewithoutfighterplanes in HarrisonTownshipcouldbe- and maintenanceofitsA-10s. are directlytiedtoflight,operation 180 full-timeand455part-timejobs Selfridge officialsestimatethatabout Selfridge jets could retire Defense bill WNJ.com Last month,theAirForcean- The A-10fleethasflownlargely Selfridge AirNationalGuardBase COURTESY OFNORTHROPGRUMMANCORP. CRAIN’S DETROITBUSINESS B Y C Crain’s HAD

U.S. AirForce See Selfridge,Page36 $2 acopy;$59year See Roads,Page35 H ALCOM as aphysicalre- plan to ® 20150323-NEWS--0002-NAT-CCI-CD_-- 3/20/2015 3:27 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS March 23, 2015

MICHIGAN BRIEFS Huntington to open 43 branches reported. In January, Eagle Alloy Inc., Port City Group Inc. and Fleet En- at Meijer stores statewide Talent so important, it now has its own department gineers Inc. launched the Muskegon Two years after announcing an Manufacturers Health and Wellness agreement with Meijer Inc. to open Last December, Crain’s reported on Gov. Rick Strategic Fund. Steve Arwood, CEO of the MEDC, also Clinics. The clinics provide routine bank branches in the Walker- Snyder’s executive order creating the Michigan De- heads Talent and Economic Development. care similar to what employees based retailer’s stores, Huntington partment of Talent and Economic Development along The Talent Investment Agency will coordinate job would receive from a primary care Bank said it plans to open 43 full- with the Michigan Talent Investment Agency. Both preparedness and worker training programs. physician. service branches in Michigan this were scheduled to start operations in March. Which Agency head Stephanie Comai said efforts will in- Ⅲ Grand Rapids-based Davenport year and will add 250 jobs would be this month. clude trying to create a pipeline for all talent in the University has appointed Pamela statewide, The Associated Press And so The Associated Press confirmed that last state, from students to those already in the work- Imperato the new dean of the Don- reported. With the additions an- week, Talent and Economic Development launched. force who need new training. One area of emphasis ald W. Maine College of Business, the nounced, Huntington Bank will Its aim: Make Michigan a national leader in talent will be on connecting the unemployed to training school said in a news release. employ 2,300 in Michigan. development for skilled trades such as manufactur- and job opportunities. Another focus will be promot- Ⅲ Vermont-based Orvis Co. Inc. is The expansion by Columbus, ing, welding, electrical work and automotive pro- ing jobs in the skilled trades. opening a West Michigan store in Ohio-based Huntington Bancshares duction. “We need to change the conversation about these Grand Rapids, MiBiz reported. Inc. will mean Huntington Bank Talent and Economic Development will bring to- opportunities” in skilled trades, Comai said. “For The retailer also has a store in has more than 220 branches in gether the Michigan Economic Development Corp., Michi- too long, those jobs were maybe not looked on very Royal Oak. Michigan. The Huntington offices gan State Housing Development Authority and Michigan favorably, but they are high paying and in demand.” Ⅲ The newspaper Military in Meijer stores will replace Times recently ranked Saginaw Val- branches operated by Chase Bank. ley State University No. 20 nationally units will be “delivered, under opment in south Texas to provide Group. Terms were not disclosed. on its list of the best educational construction or planned.” power to one of its plants, the Mid- Ⅲ Michigan State University re- institutions for military-affiliated Looking for apartment in GR? Factors for the apartment con- land Daily News reported. Dow is ceived a $6.9 million grant from students seeking an education in struction boom? Millennials and the first company in the U.S. to the National Science Foundation to business, MLive.com reported. Good luck with that, website says empty-nesting baby boomers are power a manufacturing site with improve science teaching in mid- Ⅲ The U.S. Internal Revenue Ser- The Grand Rapids-Wyoming moving back into city centers and renewable energy at this scale, the dle and high school. vice charged Fontrise Charles of metropolitan statistical area had a are interested in options other paper reported, and will become Ⅲ FutureMark Manistique will Kalamazoo with filing false tax re- 1.6 percent apartment vacancy than owning. Developers such as the third-largest corporate pur- close its paper mill in the Upper turns for others over a three-year rate at the end of last year — the John Wheeler of Grand Rapids- chaser of wind energy in the Unit- Peninsula this week, WLUC-TV re- period, along with filing her own lowest in the country, according to based Orion Construction have ed States. ported. The mill had emerged from false returns, The Associated the real estate research website pointed to the historically low in- Ⅲ Holland-based JR Automation bankruptcy in 2012. Press reported. Charles promoted Zillow.com. The national rate was terest rates as a great reason to do Technologies LLC was acquired by Ⅲ Midland-based Northwood Uni- herself as the “No. 1 Tax Lady.” 7 percent. new construction right now. Crestview Partners, a New York versity is selling its West Palm According to the 2015 forecast City-based private equity firm. Beach, Fla., campus to Keiser Uni- Find business news from released by the real estate broker- ICH CELLANEOUS Crestview teamed with members versity, MLive.com reported. around the state at crainsdetroit age Colliers West Michigan, down- M - of JR Automation’s management Ⅲ Three Muskegon-area manu- .com/crainsmichiganbusiness. town Grand Rapids will see “in- Ⅲ Midland-based Dow Chemical to buy the manufacturer of cus- facturers have created their own Sign up for the Crain’s Michi- creased investor activity,” MiBiz Co. signed a long-term agreement tom-automation equipment from on-site health care clinics to better gan Morning e-newsletter at reported. About 1,300 apartment with a new wind farm under devel- the Grand Rapids-based Huizenga manage employee health, MiBiz crainsdetroit.com/emailsignup.

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March 23, 2015 CRAIN’S DETROIT BUSINESS Page 3

Crain’s March 25, 1985, issue detailed plans for the first lofts in Inside LOOKING BACK Eastern Market. The idea was a forerunner to a wave of loft projects throughout the city in the decades to come. Read more at crainsdetroit.com/30 A lofty idea to build upon

BY KIRK PINHO ed in the first legal lofts in Detroit, Rory Bolger, zoning specialist with CRAIN’S DETROIT BUSINESS Crain’s reported in 1985, the year the city planning commission. the nine-unit development opened. For years, primarily artists and Rocco “Rocky” Russo and his Lofts were allowed under provi- photographers occupied unsanc- brother, Dominic Russo, laid the sions added to the 1984 Detroit City tioned lofts in Detroit, living and foundation for what today is a Code, which defines a loft as “a working in space not approved by thriving residential loft market in dwelling unit in a building origi- what is now the Buildings, Safety En- Leuliette leaves Visteon a the Eastern Market area. gineering & Environmental Department. nally constructed for other than Three decades ago, the now-de- Few people thought the develop- residential use containing one or slimmer supplier, Page 4 ceased brothers, who were founders ment would work, said Robert Hei- more rooms or enclosed floor of Rocky Produce Inc. and The Rocky In- de, Rocco’s son-in-law and the pro- spaces arranged for living, eating, vestment Co., developed what today ject manager on Rocky Peanut are known as the Rocky Peanut Lofts sleeping and/or a home occupa- Lofts. tion, [and] which contains bath- LARRY PEPLIN at the corner of Russell Street and “ ‘Rocky is crazy,’ people said. Since the completion of the Rocky Company index the Fisher Freeway. room and kitchen facilities.” ‘No one will want to live at Eastern Peanut Lofts, several more loft Originally planned as the A. Ja- The city’s loft ordinance became developments have come online in These companies have significant mention in this week’s Crain’s Detroit Business: cobs Lofts, the $300,000 project result- effective in June 1985, according to See Lofts, Page 34 Eastern Market, including FD Lofts. Architectural Salvage Warehouse Detroit ...... 29 Beaumont Health ...... 14 Beaumont Health System ...... 14 BlackEagle Partners ...... 20 BlueSky Health ...... 3 Botsford Hospital ...... 14 UM to give Butzel Long ...... 25 Compuware ...... 11 Detroit Building Authority ...... 29 Detroit Institute of Arts ...... 1, 11 Detroit Public Schools ...... 3 DPS staff E&B Brewery Lofts ...... 34 Eastern Market ...... 3 Esperion Therapeutics ...... 28 FD Lofts ...... 34 Forgotten Harvest ...... 26 leadership Forthright Health Management ...... 36 Frida ...... 37 Garden City Hospital ...... 18 Hopeful Harvest ...... 26 La Feria ...... 37 training Lead Head Glass ...... 29 Loft Warehouse ...... 34 BY KIRK PINHO Ludlow Ventures ...... 24 CRAIN’S DETROIT BUSINESS Martin Waymire ...... 35 Michigan Association of Health Plans ...... 36 Faculty from the University of Michigan Chamber of Commerce ...... 25, 35 Michigan Stephen M. Ross School of Michigan Opera Theatre ...... 37 Business will provide free leader- Michigan State Medical Society ...... 36 ship training to Detroit Public Schools Music Hall Center for the Performing Arts ...... 37 administrators and select princi- Nikki’s Ginger Tea ...... 26 pals, teachers and other staff. Oakwood Healthcare ...... 14 Olympia Medical Services ...... 36 The program, scheduled to be an- O2 Investment Partners ...... 17 nounced Monday, is an effort to im- PC Treasures ...... 17 prove things like safety, academic Peacock Room ...... 37 performance, and district leader- Plante Moran ...... 19 ship and school principals and staff Premier Private Physicians ...... 3 to support high-performing schools GLENN TRIEST Priority Health ...... 36 in the district, John Blanchard, M.D., doesn’t bill health insurers for services. Instead, through his Premier Private Physicians PLC Reclaim Detroit ...... 29 said Kim office in Troy, he sells subscriptions for primary care to patients at about $200 a month. Rocky Peanut Lofts ...... 3 Cameron, the Sandwich Fund ...... 24 Selfridge Air National Guard Base ...... 1 William Russell Small Business Association of Michigan ...... 35 Kelly Professor Sun Communities ...... 16 of Management TechTown Detroit ...... 6 and Operations Push for direct primary care United Physicians ...... 36 in the Ross University of Michigan ...... 3 School and a pro- Visteon ...... 4 fessor of higher tests and extended time with a medical doctor. Wayne State University ...... 6 education in the Backers see it as answer His patients usually carry health insurance, so if a WWP Strategies ...... 35 Cameron School of Educa- referral to a specialist or diagnostic test is required, tion, who will be leading the effort. to rising health care costs Blanchard helps his patient find the right provider. Department index “We will start right away,” But Blanchard said if health insurers offer high- Cameron said. “We will start with BY JAY GREENE deductible health insurance plans that cover the BANKRUPTCIES ...... 4 concierge services or if a self-insured employer of- senior leadership in the system and CRAIN’S DETROIT BUSINESS BUSINESS DIARY ...... 30 we will also identify some other fered the service in its health benefits plan, he and CALENDAR ...... 32 people who we identify as positive amily physician John Blanchard, M.D., has other physicians could lower their monthly fees to energizers, people who have impact been pushing the direct primary care service about $100. CLASSIFIED ADS ...... 33 on the system because of their posi- Fconcept of concierge medicine for more than 14 Some practices — estimated at up to 75 in Michi- KEITH CRAIN...... 8 tive energy.” years through his Premier Private Physicians PLC office gan — already offer lower monthly fees, including LETTERS...... 8 The first meeting between Ross in Troy. Jeff Huotari, M.D., at BlueSky Health in Howell. Huo- OPINION ...... 8 tari charges $30 a month for comprehensive prima- School faculty and about 30-40 DPS As a private physician who doesn’t bill health in- OTHER VOICES ...... 9 administration, principals and staff surers for services, Blanchard sells subscriptions for ry care services and some procedures. PEOPLE ...... 31 is expected by April 1, Cameron primary care services to patients, mostly executives, Last year, state Sen. Patrick Colbeck, R-Canton at about $200 per month. The subscriptions cover a RUMBLINGS ...... 38 See DPS, Page 33 catalog of primary care services, limited diagnostic See Care, Page 36 WEEK ON THE WEB ...... 38

Distill my heart THIS WEEK @ The Motor City Gas microdistillery is open in Royal Oak. Go a round or two in an online photo gallery, WWW.CRAINSDETROIT.COM crainsdetroit.com/whiskey

TONY BARCHOCK 20150323-NEWS--0004-NAT-CCI-CD_-- 3/20/2015 3:28 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS March 23, 2015 Slimmer Visteon keeps focus on auto cockpit electronics

BY DAVID SEDGWICK jointed product portfolio. displays, vehicle security systems keted rear-seat entertainment, au- total of $7.4 billion. CRAIN NEWS SERVICE When Van Buren Township- — and the software needed to run dio systems and Bluetooth linkups The Johnson Controls acquisi- based Visteon was spun off in 2000, these products. Lots and lots of for MP3 audio players. And when tion has given Visteon enough When Tim Leuliette steps down the company made glass, climate software. the company was in bankruptcy in scale to compete. In his Jan. 5 in- as CEO of Visteon Corp. late this control, bumpers, fuel tanks, And that is where the money is 2010, Visteon spurned a bid by terview, Leuliette said Visteon is year, he will leave behind a compa- axles, steering components, in-ve- these days. During a January in- Johnson Controls to buy its electron- the top global supplier of instru- ny working in just one product hicle entertainment, navigation terview with Crain’s sister publi- ics and interiors units for $1.25 bil- ment clusters, and is No. 3 in cock- sector: cockpit electronics. systems, headlights and power- Automotive News cation , Leuliette, lion. pit electronics, behind Continental That’s a radical change for Ford train cooling systems. 65, said half of Visteon’s 4,000 engi- When Leuliette was named CEO AG and Denso. Motor Co.’s former in-house parts Now, the company produces in- neers are software developers. in 2012, restive investors believed Visteon and its top rivals are po- division, which had a vast, dis- strument clusters, infotainment As if to underline that expertise, Visteon was Visteon showcased its reconfig- moving too sitioned to claim a substantial urable instrument clusters at Inter- slowly to nar- chunk of a promising growth mar- national CES in Las Vegas in Janu- row its product ket. ary. Car owners can create a new lineup — a key Over the next five years or so, look for their speedometer and reason for for- North America’s infotainment tachometer by downloading a soft- mer CEO Don market is likely to grow 10 percent ware upgrade. That’s a long way Stebbins’ abrupt annually, predicts Praveen Chan- from the old Visteon’s glass, departure. drasekar, an analyst with Frost & bumpers and fuel tanks. So, Visteon Sullivan, a consulting firm based in At International CES, Visteon sold the interi- Leuliette Mountain View, Calif. also touted its ability to integrate a ors unit in 2014, “By 2020, infotainment is going vehicle’s instrument cluster, cen- followed by the climate control di- to be a no-brainer,” Chandrasekar ter console and head-up display vision, a $3.6 billion deal, early said. “The tier-one suppliers will into one harmonious package. Au- this year. be the enablers in this game.” tomakers value that kind of exper- Meanwhile, Leuliette has been tise, said Mike Robinet, managing expanding Visteon’s electronics director of Southfield-based IHS division. In 2014, he purchased Secure future? Automotive. Johnson Controls’ electronics op- Chandrasekar estimates that Integration of a vehicle’s dis- eration — which produced instru- hardware will account for 60 per- plays “is the secret sauce of this ment clusters, head-up display market,” Robinet said. “It’s really units, infotainment displays and cent of the segment’s revenue, critical to integrate the hardware body electronics — for $265 mil- with software generating the rest. with the software.” lion. Which explains why software With a sole focus on cockpit elec- plays such a big role within Vis- tronics, Leuliette has put all of Vis- teon. Downsizing Visteon teon’s eggs in one basket — but it “It’s pretty obvious that every- It’s not as if Leuliette suddenly looks like a sturdy basket. The thing in the vehicle will be soft- woke up one morning and decided 2015 revenue of the slimmed-down ware-enabled,” Chandrasekar to focus on infotainment. company is projected at about $3.3 said. As far back as 2001, Visteon mar- billion — less than half of its 2013 Visteon and other suppliers may find themselves outflanked by Google and Apple, as vehicles grow more dependent on the cloud for data, apps and services, Chan- THE MILLER LAW FIRM drasekar cautions. Changing the Odds in our Clients’ Favor But during his Feb. 26 earnings call with industry analysts, Leuli- ette noted that Visteon’s electronics unit lined up $1.3 billion in new contracts and renewed business last year. Leuliette, who announced on March 16 that he would step down when Visteon appoints his succes- sor, can argue that the company’s future is secure. “We’re happy with the business we’ve got,” Leuliette said. “We’re happy with the order book we’ve got. And we’re happy with the business backlog. We’ve got a lot to execute in 2015, so that’s (our) primary focus.” From Automotive News

BANKRUPTCIES The following businesses filed for protection in U.S. Bankruptcy Court in De- troit March 13-20. Under Chapter 11, a company files for reorganization. The Miller Law Firm is Recognized Chapter 7 involves total liquidation. Coliseum Bar & Grill Inc., 1109 Decker as a Leader in Complex Business Litigation Road, Walled Lake, voluntary Chapter 11. Assets and liabilities not available. JLJ Enterprises, 1172 N. Wayne Road, Westland, voluntary Chapter 7. Assets Q Q Automotive supplier counseling Commercial and business lawsuits and liabilities not available. RSG Real Estate Enterprises LLC, 1315 Q Employment litigation Q Shareholder and partnership disputes Lone Pine Road, Bloomfield Hills, voluntary Chapter 7. Assets and liabili- Referral fees honored on contingency fee cases ties not available. A Custom Transmission Inc., 10430 950 West University Drive, Suite 300 Beech Daly Road, Taylor, voluntary Chapter 7. Assets and liabilities not Rochester, Michigan 48307 248-841-2200 millerlawpc.com available. — Natalie Broda DBpageAD_DBpageAD.qxd 1/5/2015 2:38 PM Page 1 20150323-NEWS--0006-NAT-CCI-CD_-- 3/20/2015 3:29 PM Page 1

Page 6 CRAIN’S DETROIT BUSINESS March 23, 2015 WSU’s shared-services plan aims to help TechTown run leaner

BY TOM HENDERSON light bill has to be paid at the same “We’ve got 65 building engineers that instead of trying to keep the CRAIN’S DETROIT BUSINESS time each month.” who take care of the whole cam- lights on.” Rick Nork, WSU’s CFO, said he pus. Adding one facility to that is Staebler said one immediate Too much autonomy for Tech- has identified $200,000 in cost sav- not a big deal.” benefit for employees at Tech- Town Detroit turned out to be too ings, about $120,000 of that by shift- If a TechTown roof springs a Town and tenants is the much- much of a good thing. ing TechTown’s telephone and IT leak, there is no need for Staebler faster Internet speed now avail- Wayne State University has services to the school to get out the able. He said when he started at launched a shared-services model and some of it by pro- phone book TechTown earlier in the month, that plans to save more than viding economies of or get online upload and download speeds were $250,000 a year for the technology scale through either We balance the to find a con- at 2 megabytes. and business incubator, which the school’s “ tractor be- With a switch over to WSU sys- was founded in 2000 with support existing ser- budget each cause some- tems, he’s now got gigabyte speeds by then-President Irvin Reid. vice and one already both ways, which is 500 times TechTown opened its doors in equipment year, but’s it’s in the faster. 2004 on Burroughs Street in Mid- contracts, in- not without school’s em- Staebler said that reducing town in a 135,000-square-foot build- cluding a 20 ploy can TechTown’s autonomy will have ing designed by Albert Kahn in percent re- consistent come take a immediate benefits for Wayne 1927 and donated by General Motors. duction in the look. State, too. Since then, one of its ongoing cost of office effort. Grants “Some of Last October, WSU announced problems has been how to pay for supplies be- this has al- that James Anderson, founder of staffing and overhead, a problem cause of come in at ready kicked Detroit-based Urban Science Appli- that many nonprofits share, ac- TechTown opened its doors in 2004 WSU’s current multi- in. Some of it cations Inc., and his wife, Patricia, cording to Ned Staebler, WSU’s and has since struggled with paying year supply contract. will be in 30- had made a $25 million gift to the for staff and overhead. different times. vice president for economic devel- Nork said he ex- ” 60 days. Some College of Engineering to create opment. pects to easily be able Ned Staebler, TechTown of it will be 90 the James and Patricia Anderson In addition to that title, Staebler ly don’t allow for money to be to get to $250,000 in days,” said Engineering Ventures Institute. assumed the titles of president and spent on staffing and overhead. savings, and that doesn’t include Nork. The goal is to help launch start- CEO of TechTown on March 16, re- He said that Smith spent much the saving to TechTown by having “As someone who has to look at up companies based on the work of placing Leslie Smith, who left of her time trying to fund the incu- a president and CEO whose salary budgets at TechTown and make engineering faculty and students. to become president of the new En- bator’s operational costs. He said is already on WSU’s books. payroll, I’ll be highly motivated to “One of the first things I said to trepreneurship-Powered Innovation one of the reasons he will be able WSU will also handle payroll, get that $250,000 off my books,” our entrepreneurs-in-residence at Center in Memphis. to replace her on a part-time basis risk management and insurance said Staebler. TechTown when I started was, Staebler said that foundations as president and CEO is that the and human resources and turn “Every penny I can take off the ‘OK, when are you going to start and other organizations, such as shared-services model will elimi- over much of the building mainte- operation’s side is a reduction in having office hours at the College the New Economy Initiative, the nate a lot of her grunt work. nance and repair. time I have to spend. My mission of Engineering?’ ” said Staebler. Michigan Economic Development “We balance the budget each “This really doesn’t cost Wayne and the mission of TechTown isn’t “We’re starting to do that.” Corp., the Fisher Foundation and J.P. year, but it’s not without consis- State anything. It’s things we’re al- to be out fundraising to pay for Tom Henderson: (313) 446-0337, Morgan Chase, fund programs at tent effort,” said Staebler. “Grants ready paying for or just providing overhead, it’s to create jobs. I want [email protected]. Twitter: TechTown but that grants typical- come in at different times, but the economies of scale,” said Nork. to spend more of my time doing @TomHenderson2 DBpageAD_DBpageAD.qxd 1/29/2015 4:00 PM Page 1

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Page 8 CRAIN’S DETROIT BUSINESS March 23, 2015 OPINION LETTERS Good things to note: Enforce or eliminate wage rules Editor: that quality subcontractors can Crain’s Detroit Business Over the 20-plus years our com- compete without prevailing-wage welcomes letters to the editor. pany has been in business, we requirements and that general All letters will be considered for contractors can support and work have completed numerous projects publication, provided they are From DIA art to M&A in the construction industry. Be- with strong business owners and signed and do not defame their employees. ing a subcontractor to many state- individuals or organizations. few notes on things that have gone right recently: funded projects, mostly education- Letters may be edited for length I support legislation that either The success of the Diego Rivera-Frida Kahlo ex- al projects, I found Mary Kramer’s and clarity. puts some effort into enforcement of column on prevailing wage some- the prevailing-wage requirements hibit at the Detroit Institute of Arts is an immediate Write: Editor, Crain’s Detroit A what difficult to comprehend or eliminates them, saving the tax- Business, 1155 Gratiot Ave., reminder of why the “grand bargain” that saved the DIA’s art payers millions of dollars in high (“Prevailing-wage battle could Detroit, MI 48207-2997. — and its ability to at- hurt jobs initiatives,” March 9, wages with no strong evidence that Email: [email protected] tract exhibitions — was Page 15). We have worked on pre- it furthers our economy. so important. vailing-wage projects for more Steve Marszalek than 10 years and have found to be vailing-wage work is only tempo- President, Great Lakes Construction Services The exhibit, in addi- Royal Oak at odds with many of the items in rary — I need to retain my work- tion to being a boon for the prevailing-wage format. force and keep them working year- the DIA, also has broader First, as a subcontractor, prevail- round. There is no layoff pay, no Kudos to Keith Crain economic benefits. As ing-wage work, like most construc- union hall to sit at awaiting work, Sherri Welch reports on tion projects, must be bid. General and workers’ compensation is not for road tax column a fantastic fallback option. Page 1, more than 20 lo- contractors will typically select the Editor: lowest qualified bidder. As a cur- Other issues that prevailing cal arts and cultural I am a longtime subscriber to rent employer of 20, and back in the wage has created for many subcon- Crain’s Detroit Business. It’s an in- groups are hosting pro- day up to 50-100 employees, success- tractors are competition within teresting publication. However, grams tied to the exhibit, and some local restaurants are run- fully bidding on projects had a very our own ranks, the elimination of being oriented to business, it usu- ning specials tied to Kahlo’s and Rivera’s Mexican roots. low probability due to the competi- flexibility for bidding projects to ally takes the typical Republican utilities’ different wage and em- Special exhibits are important to museums because they tiveness, thus leaving our business stances of “cut my taxes,” “kill the to compete on multiple levels of jobs ployee classifications, and cre- bring in new visitors and new revenue. They’re important to unions,” “privatize everything it and projects to keep our workers ation of a short-term gain with no can including our schools.” the community because of the spinoff effect and because cul- employed. long-term benefits to our employ- But wonder of wonders, we can tural institutions are an important amenity. Prevailing-wage work is not nor- ees. Remember, prevailing wage all agree with Keith Crain’s col- The effect of selling off art would have been a shunning by mal; there are very few projects is an amount agreed to be paid to umn on March 16 (“Roads tax hike: the employees; the unions receive the broader art community. It was a bullet well-dodged. that will allow the opportunity to What’s a person to do?”). bid, so you are left to bid on mar- no benefit from this — no adminis- On March 15, Amy Haimerl wrote in her blog at crainsde- Quotes from the column: “mag- ket-rate projects where standard trative support, no funding retire- ic, smoke and mirrors,” “but get troit.com about a newly renovated East English Village house market labor rates dictate. We suc- ments, no financial support. those 80-ton trucks off our roads,” bought at auction for $10,500 by a cessfully navigated the larger Finally, very few, if any, general “legislative mumbo-jumbo,” Plano, Texas, investor. The house firms, such as Barton Malow and contractors enforce or require cer- “(Gov. Snyder) avoided the obvi- sold for its full $86,499 asking price Skanska, to create opportunities tified payrolls to support that sub- ous user tax by raising the gas tax for ourselves; however, the work is contractors are paying the neces- a day later, with multiple potential by, say, 20 cents,” “this proposal limited and not full time. Much of sary wages. The requirement of stinks.” buyers. prevailing-wage work — especial- certified payrolls along with third- Lansing Republicans come up The auction program itself still ly educational projects — is com- party verification would help elim- with nothing but dirty tricks, don’t has a lot of ground to cover to pleted during the summer, leaving inate many of the issues I have do their jobs to solve problems, achieve success, but this transac- a gap for the rest of the year, which faced. When competing for a pro- and just dump the tax increases on must be at market labor rates. ject, if a subcontractor knows it is tion is important beyond the one the public under the threat of “it’s Second, prevailing wage creates a not going to get caught, it will bid your fault if the roads don’t get house involved because it’s a build- wage difference with real market the amount necessary to get the fixed.” ing block of demand. One still-to-be- wages of more than 50 percent ver- job, despite knowing and agreeing Who in God’s creation voted for solved problem: High property taxes that burden everyone, sus competitive open shop projects. to pay prevailing wage. these gutless cowards to “lead” our but low-income property owners most of all. If a typical employee was making The enforcement on behalf of great state of Michigan? $16 per hour, a prevailing wage in- Our M&A Awards winners this year reflect a turn in the the state and general contractors I salute Keith Crain on this one. creases that amount to $35 to $44 per is a disaster. It is up to the employ- Richard Kennedy acquisitions market. Being recognized beginning on Page 11 hour or more, creating an artificial ee to file a claim with the state; Shelby Township are deals that map a path forward for local hospitals, a large inflation in the market. many employees are not aware of strategic acquisition by Sun Communities, and a deal that al- If my employees could make $44 these requirements despite rules Insolvency issue must lowed company owners to realize some value from their efforts per hour full time, that would ex- dictating the posting of wage ceed $88,000 per year, making them amounts — the construction in- be dealt with now while continuing to run the company and provide further val- very well paid for an unskilled po- dustry has turned its head to many Editor: ue to a new owner. sition. Remember, prevailing of these rules because it doesn’t As a past chairman of a Taft-Hart- Detroit’s acquisition market for several years was domi- wage covers skilled and unskilled want to get involved. The notion of ley pension plan, I appreciated the employees. Such amounts I would nated by distress deals, and then there were very few deals at “if it is not broke, who are we to fix sentiments outlined in Mary think would make lawmakers all as sellers and buyers waited out the economy. Last year, it?” is very apparent. Kramer’s March 2 column (“A wonder why they are not doing our they were out in force in a strategic way. We have found that in many of type of work. But remember, pre- the projects we are involved in See Letters, Page 9 KEITH CRAIN: Begin economic development at home There is a buzz around Detroit. In fact, while everyone Let’s spend as much time enough effort to help and retain ex- have to learn about these expansion Lots of small investments and star- is out chasing windmills, trying to understand the isting businesses in Detroit. plans earlier and then have the pro- tups, from retail stores downtown it might make a lot more needs and wants of com- There is a huge amount of com- grams in place to allow us to be com- to interesting and innovative sense for our city, county panies that have been petition for new investment from petitive on a global basis. restaurants, seem to be sprouting and state government to here for decades. Some of outside Michigan. We hear anec- Companies that have been in De- up daily. take a hard look at what’s them might deserve a dotes of zillions of dollars of incen- troit know the city and understand Yet we aren’t seeing any big in- in Detroit. Let’s see break and a great big in- tives and everything else to entice its assets and liabilities. They have whether it might be possi- centive not just for stay- vestments like an auto plant or sup- companies to settle in their region. weathered the economic storm of ble for our legislators in ing but for considering plier plant being planned for our But we’ve got hundreds, no thou- the recession and lived with the Lansing to create some expanding instead of bankruptcy of Detroit. If they aren’t city. We still have to see whether or bills that would package putting the next plant in sands, of businesses that have been not this is a sustainable trend or it’s some real incentives. Georgia or Mexico or here forever. They aren’t leaving our best prospects for economic de- just a blip on the radar screen. And not in the hopes of China. anytime soon, we hope. But they velopment, then I don’t know which Whatever it takes to encourage attracting out-of-state companies — In all the hoopla to try and at- may be considering putting that new would be better. investment and expansion in our whether they’re from Japan or Ohio tract new business from outside plant somewhere — and we don’t Let’s start rooting for the home- city still has to be our number-one — but instead to focus time and en- Detroit and Southeastern Michi- even know about it. We aren’t going town heroes. They have kept us priority. ergy on the companies already here. gan, we simply have not put forth to get a chance to bid on it either. We alive all this time. 20150323-NEWS--0008,0009-NAT-CCI-CD_-- 3/20/2015 10:01 AM Page 2

March 23, 2015 CRAIN’S DETROIT BUSINESS Page 9 OTHER VOICES: Michigan should be leading space race

President Barack Oba- vate-sector space explo- space industry will continue to de- ma’s decision nearly five ration. For a state that has velop, given that today’s space years ago to ground the such technical prowess There is no good reason why ... race is about constant invention, NASA shuttle program and and is always seeking “ advancing technology and risk put the future of American ways to diversify, staking businesses ... couldn’t make Michigan taking that only private industry space exploration into the a claim to the still-evolv- can deliver. hands of the private sector ing space industry should America’s go-to destination for unrivaled Homegrown Michigan engi- essentially launched a new be seen as an opportunity neers, manufacturers, technology race to space. unlike any other in mod- spacecraft design technology. firms and venture capitalists have Since then, there has ern history. are willing to pay millions for the University of Michigan” School of a unique chance to show the rest of proved to be no shortage of There is no good rea- chance to reserve spots on shuttles Engineering graduates on its staff, the world what can be accom- innovators from around the John Sitkiewicz son why successful tech- engineered for private space trav- advancing spacecraft design ini- plished when innovation and country wanting to take ad- nological businesses op- el, the potential financial returns tiatives in California. The ques- imagination come together. vantage of the revolutionary ap- erating outside of the state on investment are huge. tion is, why hasn’t someone at- Because when it comes to Ameri- proach to American space travel. couldn’t make Michigan Ameri- Interestingly enough, SpaceX, tempted to bring some of that can space exploration, the sky is re- In California, Texas and Florida, ca’s go-to destination for unrivaled which arguably is the country’s expertise back to Michigan to start ally the only limit. companies immediately began spacecraft design technology. most recognized space exploration a spacecraft design venture? John Sitkiewicz is a metro De- raising venture capital dollars and And seeing how many people player, has no less than two dozen Undoubtedly, the private-sector troit freelance business writer. unleashing research and development efforts to design aerial transport vehicles capable of bringing materials, scientists and astro- nauts to and from the Internation- al Space Station. Not to be outdone, businesses in Wisconsin and Indiana moved ahead with plans to enter the niche market of space tourism. Inexplicably, Michigan — home to some of the world’s greatest engineering minds and seasoned manufacturers — continues to be nowhere in the conversation on pri- WE BELIEVE LETTERS CONTINUED ■ From Page 8 warning: Watch pension plans”). PERSONAL ATTENTION When I was with the pension plan, “unfunded liabilities” used to be part and parcel of our plan, a IS BEST GIVEN IN PERSON. fact that did not deter the offering of the pensions that were guaran- teed. Now that the unfunded liabilities are being addressed head-on, When you work with the Huntington Private Client Group, we meet with you face-to-face. there is great uncertainty regard- ing the stability of future retire- Using our Listen, Plan, Advise® approach, we work with you to create a clear plan that fits ment benefits. The thing that really troubles your needs, giving you meaningful advice about the options available for meeting your me is the much bigger picture. Not objectives. As your goals change over time, we help you review your plan to make any only are public pension plans under stress, but private pension necessary revisions. And we keep you involved every step of the way. plans as well. The reason I say this is the guid- ing statistics that pension trustees and plan managers rely on in making plan decisions are mortality reports issued by the Society of Ac- tuaries. In its first revision since 2000, SAC estimates the average Eric W. Dietz 65-year-old man today will live 86.6 years, up from the 84.6 it estimated a decade and a half ago. The aver- Senior Vice President and Regional Manager age 65-year-old woman will live Private Client Group 88.8 years, up from 86.4. While Huntington National Bank longevity is wonderful, it will put increasing pressure on both public and private pension plans. All of these factors, in the bigger 220 Park Street picture, could create devastating, Birmingham, MI 48009 long-term problems as available public funds will be diminishing as 248.637.8206 phone the national debt grows, with most 248.824.4441 cell of the money going to debt service. Also, just think of the pressures [email protected] that will be exerted on the Pension Benefit Guaranty Corp.’s bulk- head as the debt and obligations grow. We also have the Social Se- curity Disability Fund’s potential- ly imminent insolvency to deal with. We are running out of mon- HUNTINGTON PRIVATE CLIENT GROUP ey, for pensions, infrastructure The Huntington Private Client Group is a team of professionals that includes Private Bankers and Personal Trust Administrators and Portfolio Managers from The Huntington and other essential programs. National Bank and licensed investment representatives of The Huntington Investment Company, who work together to deliver a full range of wealth and financial services.

This is a huge wake-up call that Member FDIC. ®, and Huntington® and Listen, Plan, Advise® are federally registered service marks of Huntington Bancshares Incorporated. Huntington® Welcome.™ needs to be taken seriously and is a service mark of Huntington Bancshares Incorporated. ©2014 Huntington Bancshares Incorporated. acted upon now, rather than later. Joe Neussendorfer Livonia DBpageAD_DBpageAD.qxd 3/17/2015 1:30 PM Page 1

Whatever the future looks like, we’re ready.

Whatever the future looks like, we’re ready. 20150323-NEWS--0011,0012-NAT-CCI-CD_-- 3/20/2015 10:02 AM Page 1

March 23, 2015 CRAIN’S DETROIT BUSINESS Page 11

REPORTER’S NOTEBOOK

Bill Shea writes about media, advertising and marketing, the business of sports and transportation. Call (313) 446-1626 or write bshea@ crain.com M&A Awards Bill Shea

Capitalism gets HONOREES last laugh at Deal over $100 million Winner: Beaumont Health System/ DIA exhibit Oakwood Healthcare/Botsford Hospital A September merger quickly created Beaumont This is embarrassing to admit, but Health, a system with eight hospitals and after 15 years living in Michigan and $3.8 billion in combined revenue, Page 14 almost nine years working downtown, Finalist: Sun Communities Inc./Green Courte March 15 was my inaugural visit to Partners LLC the Detroit Institute of Arts. Sun’s $1.32 billion purchase of Green Courte Shameful, I know. increased its portfolio value by about one-third to $5.1 billion, Page 16 After the visit, I regret wasting so many years. The museum’s collection Deal under $100 million is fantastic — Picasso! Monet! Rembrandt! Cezanne! Picasso! Van Winner: O2 Investment Partners LLC/PC Treasures Gogh! Gauguin! Degas! Van Eyck! Why buy a bundler of software for cable TV shopping Warhol! O’Keefe! — and it would have channels? It makes a lot of money, Page 17 been an unspeakable cultural tragedy if Finalist: Prime Healthcare Services/Garden City the artwork had been peddled at Hospital auction during the city’s bankruptcy. After a two-decade search, one of the region’s last What prompted me to finally get off independent hospitals finds a merger partner, my duff and get some DIA culture was Page 18 the public opening of the “Diego Rivera and Frida Kahlo in Detroit” exhibit. Dealmaker adviser I’m not necessarily enamored by Winner: Plante Moran PLLC. Dennis Graham, Rivera’s and Kahlo’s artwork, but I am partner intrigued by them because they Graham’s private-equity practice had another record- represent such a dichotomy: Rivera breaking year in 2014, with revenue doubling over was an ardent Mexican communist 2013, Page 19 hired by wealthy gringo capitalists to paint murals that certainly were going Dealmaker buyer/seller to spark ideological controversy. Kahlo was just as ardent. Winner: BlackEagle Partners LLC. Bryan Tolles and Jason Runco Critics from the right have dismissed Rivera and Kahlo’s artwork Crain’s 2011 Dealmaker of the Year closed on 13 transactions last year for a total value of more than as Stalinist agitprop, and there’s $267 million, Page 20 some truth to that. But even a hardcore capitalist and anti- communist such as I can acknowledge that criticism of Life got extra interesting for Compuware Corp’s then-CEO Bob Paul in 2012 when Elliott Management Corp. launched a takeover bid. Instead of seeing the capitalism isn’t without merit. All move as hostile, Paul weighed the criticisms and took steps to improve Compuware’s performance. political and economic systems are flawed, either inherently or through unsound execution — and early 20th century capitalism was certainly guilty of the exploitation memorialized within Rivera’s murals. Capitalism, however, gets the last Right moves, right time laugh: When visitors reach the end of the exhibition, they pass through a gift shop outside the gallery — souvenirs are a common revenue stream for Bob Paul to speak about Compuware’s winding path to sale museums, so this is no criticism of the DIA by me. I’m all for it. BY TOM HENDERSON software company, a bid he heard about by But one wonders what Kahlo would CRAIN’S DETROIT BUSINESS phone from Elliott about 60 seconds before the M&A AWARDS make of the museum selling a doll of news was officially announced. Crain’s Detroit Business, her for $19.95, or the $20 T-shirts. ay you live in interesting times” is Naturally, there’s a tote bag adorned Elliott Management, a hedge fund grown leg- in partnership with the with her face ($20), along with a known as the Chinese curse, though Association for endary by its aggressive pursuit of its economic Corporate Growth- booklet of temporary tattoos ($1.50), ‘Mscholars have been unable to find an interests, wasn’t happy by what it saw as an un- Detroit Chapter, holds paper dolls ($9.95), postcards (74-94 actual source to support the idea that it derperforming company and a weak its eighth annual M&A cents), a $16 notebook, a $1.95 was ever hurled derisively at people Awards 5-9 p.m. May 12 bookmark and a plastic “floating” pen share price. there. at the Troy Marriott, for $3.95. Books, movies, and Mexican To the surprise of at least some in- Troy. art and snacks are part of the offerings. Most likely, it is an English expres- dustry observers, Paul was eventually Tickets: $95 for ACG They also can be bought online. sion fancying itself up in apocrypha. able to come to a peaceful resolution members or Would Kahlo be offended by her There was nothing apocryphal, nonmembers in groups with Elliott, in large part because Paul image being used to sell souvenirs? though, about the interesting life Bob of 10 or more, $100 for Truth is, I have no idea. She and her didn’t act in a hostile manner to what individual sales to Paul, CEO of Detroit-based Compuware husband had few qualms about taking was perceived as a hostile takeover bid. nonmembers. Corp., lived in 2013 and 2014, which he Preregistration closes at money from American oligarchs “Bob did a great job with Elliott. He because they saw the opportunity to will discuss in a presentation and Q&A 9 a.m. May 11. If could have treated it as a hostile event, available, walk-in spread their message through art. So at the annual M&A Awards event put on by maybe she’d not be aghast at her face but he didn’t,” said Gurminder Bedi, the former registration will be $120 Crain’s and the Detroit chapter of the Association a person. being for sale on stationery if it would head of operations for Ford Motor Co. in Brazil inspire the proletariat, or something. for Corporate Growth on May 12 at the Troy Marriott. To register: and Argentina who was then chairman of Com- One thing I am certain that would Paul’s interesting days began in December crainsdetroit.com/events puware’s board of directors. “Bob didn’t view have mortified both Rivera and Kahlo: 2012 when New York City-based Elliott Manage- Questions: Kacey them as hostile. He treated them with respect. Anderson, The DIA exhibition of their life and work ment Corp. announced it was launching a $2.3 bil- is sponsored by Bank of America. [email protected], lion takeover bid for the computer services and See Paul, Page 12 (313) 446-3000 20150323-NEWS--0011,0012-NAT-CCI-CD_-- 3/20/2015 10:02 AM Page 2

Page 12 CRAIN’S DETROIT BUSINESS March 23, 2015 Finance: M&A Awards Paul: How Compuware hostile takeover became a bit less hostile ■ From Page 11 “Bob and the board agreed with liott, the company owned about 8 to address what he thought were cles was that Bain Capital and would- short-term hedge-fund guys that if some of Elliott’s criticisms and dis- percent of Compuware stock. The those legitimate criticisms, includ- be private equity partners were in- you give us the time, it’ll be better agreed with others, but we gave call came from Jesse Cohn, a portfo- ing that the board of directors was terested in gobbling up Compuware for you than selling us.” them a fair hearing.” lio manager with the interesting ti- made up of too many Detroit civic and merging it into Houston-based “Bob did everything possible he Paul said the offer by Elliott did- tle of head of U.S. equity activism, leaders and not enough IT experts, BMC Software, which would have could do to create value at the com- n’t come out of the blue. The hedge who had recently visited Com- and that the company needed to meant the loss to Detroit of an icon- pany. He proved himself as an op- fund had been buying Compuware puware’s headquarters. cut costs and shed underperform- ic company and thousands of em- erator,” said Cohn. “He took an un- stock, having to file reports with the Paul said it wasn’t Elliott’s fear- ing business units and should sell ployees. derperforming company and cut U.S. Securities and Exchange Commis- some reputation that convinced him its downtown headquarters. “The job at hand was for the costs, changed management, IPO’d sion as it passed certain thresholds. to play nice, it was that he agreed “Elliott is tough, but unlike some management team to convince our a division, sold off business units After Elliott passed the 5 percent with many of Cohn’s criticisms. activist hedge funds, they’re fair. institutional investors that we had it didn’t look as if anyone wanted threshold, other activist hedge Compuware co-founder Peter They do their homework. They do much more value to them as a to buy and did all the right things funds began buying stock, too. Karmanos Jr. wanted Paul to re- deep, deep research. They knew business here than to be sold and to get to the right place. There looked to be blood in the wa- sist Elliott, but after Karmanos’ re- their facts,” Paul said. moved to Houston,” said Paul. “We “It was staggering how much ter. tirement as executive chairman in But it wasn’t just Elliott that Paul had to convince the long-term in- Compuware accomplished in a When Paul got the call from El- March 2013, Paul had a free hand had to worry about. Word in IT cir- stitutional value investors and the year.” Consider: In January 2014, Compuware announced it had reached an agreement that ended Elliott’s takeover bid. A few days later, Compuware sold three business units to a Los Angeles-based private equity firm for $160 million. On Sept. 2, Paul dropped the bombshell news that the company Michigan’s Leading was going to be sold for $2.4 billion to Thoma Bravo LLC, a Chicago-based private equity firm. Corporate/M&A A few days later, Paul announced Compuware would be split in two, with the mainframe support business continuing to op- Practice erate under the Compuware name, and the business that helps companies monitor the performance of their software applications in real time to operate as Dynatrace. In October, Compuware’s board approved Paul’s plan to dis- Honigman’s Corporate/M&A practice has ranked number one in Michigan since tribute the 82 percent of the stock it owned in Covisint, which had 2004 according to Chambers USA: America’s Leading Lawyers for Business, a spun off in an IPO in 2013, to Com- puware shareholders. respected client and peer review publication. It notes: In November, Compuware signed a deal to sell its Detroit headquarters to Dan Gilbert’s Bedrock Real Estate Services and Strong M&A group recognized The team’s midmarket Meridian Health for $142 million. “ “ In December, Compuware as a dynamic private equity private equity practice is also shareholders approved the sale to Thoma Bravo. practice with international scope, highly respected for advising Tom Henderson: (313) 446-0337, [email protected]. Twitter: alongside sophisticated abilities funds and portfolio companies @tomhenderson2 in the ¿elds of securities and both in the USA and corporate governance, venture internationally. In November, Compuware Corp. ” signed a deal to sell its Detroit capital and emerging technology. headquarters in Campus Martius to Dan Gilbert’s Bedrock Real Particularly involved in signi¿cant Estate Services and Meridian Health for $142 million. middle-market transactions.” 180 Counsel to more than 180 corporate transactions that closed in 2014 $14 billion Total value of these 2014 transactions was nearly $14 billion

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A year ago, CEO Gene Michalski had tried to merge Royal Oak-based Beaumont Health System (above) with Detroit-based Henry Ford Health System, only to have negotiations break down.

Beaumont Health System/ CEOs decided “why don’t we have Oakwood Healthcare/ a three-way discussion because Botsford Hospital the geography is compelling and our services, mission, clinical ADVISERS care, education and research are all compatible,” Michalski said. Ⅲ Beaumont: Dickinson Wright PLLC But Michalski said he wanted to Ⅲ Oakwood: Dykema avoid problems that led to the Gossett PLLC failed merger a year earlier be- Ⅲ Botsford: Hall Render Killian tween Beaumont and Detroit- Heath & Lyman PLLC based Henry Ford Health System. Ⅲ All three: Kaufman Hall “We needed to resolve tough issues up front: headquarters loca- he merger last September tion, name, what roles (execu- that created Beaumont tives) would have and the T Health, the Royal Oak-based governance structure,” Michalski system with eight hospitals and said. “You decide the gating issues $3.8 billion in combined revenue, up front because if you put it off, it was completed quickly with no delays the inevitable, and too potholes to slow the deal. many bad issues can come about.” Ironically, it took CEOs Gene In March, after three months of Michalski of Beaumont Health Sys- having many dinners at the Skyline No jump’s to tem, Brian Con- Club in Southfield and rotating o big wh nolly of Oakwood meetings at hospital sites, the ex- en you Healthcare Inc. ecutives of “BOB” — as the Beau- r par and Paul La- mont-Oakwood-Botsford entity tne Botsford was lovingly called — signed a let- with the #1 M r Casse of &A All Health Care ter of intent. -Star. about nine By June, the hospital boards ap- months to guide proved the final merger plan. Dur- Beaumont ing the summer, the Federal Trade Health through Commission cleared the deal. the birthing Buying or selling a business can seem Michalski “We didn’t have any triggers process of the (outside influences that objected like the rational next step for growth – or your exit plan. But health system as well as federal to the merger),” Michalski said. taking that step can be a huge leap of faith into the unknown. antitrust approval. “You always have sticking points, Now the largest health system but there wasn’t any one thing Too much is at stake for you to risk a free-fall. Ranked first in Southeast Michigan, with an es- that was more difficult.” among all U.S. M&A firms by INSIDE Public Accounting, timated 35 percent inpatient mar- During the first six months of ket share, the new Beaumont Beaumont Health, Michalski said, Doeren Mayhew helps determine a deal’s fitness for flight Health has 33,000 employees, 5,000 the market share for the com- and brings the parties together as one high-performing group physicians, 153 outpatient sites bined entity is up, and the finan- and 3,500 volunteers. while maximizing your dollars. cial results are better than the “Brian and I are on the Michigan previous year for all legacy orga- Health & Hospital Association board, So, before you jump at the next opportunity nizations. and we started talking about “We had a banner year last to join forces, we invite you to see how we’ve strategic partnerships,” Michals- year” for combined operations, packed the parachute for other clients’ successful ki said. “I had already talked with Michalski said. “We just refi- Paul because we (our hospitals) nanced $100 million of debt and mergers and acquisitions. had many partnerships together.” saved $13 million.” At a casual dinner, the three — Jay Greene

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O2 Investment Partners is proud to receive Crain’s 2015 M&A Award, “Deal of the Year”, for its acquisition of PC Treasures.

O2 is grateful for the support of its management partners, advisors and ﬁnancial partners in the execution of 6 transactions in the last 6 quarters.

in partnership with the founders in partnership with management through its O2 Specialty Mfg Platform has acquired has acquired has acquired

in partnership with management has been acquired by has been acquired by has acquired

O2 Investment Partners is a Midwestern based private equity Q Transaction Value: $5 million to $50 million ﬁrm that seeks to acquire a majority interest in small and Q EBITDA:$2 million to $8 million (less for add-ons) middle market manufacturing, niche distribution, select service Q Industries/Business Types: Industrial manufacturing, niche and technology businesses. We will also consider opportunistic distribution, select service businesses, select technology acquisitions in other industries. We invest in businesses with segments, certain special situations earnings growth potential and a clear path to the creation of Q Geographic Focus: O2 invests in companies throughout the shareholder value. United States and Canada with a preference for the Midwest and Great Lakes region (Michigan, Wisconsin, Minnesota, www.o2investment.com Iowa, Illinois, Indiana, Ohio, Kentucky, Pennsylvania, New 40900 Woodward Ave #200 York, Ontario) Bloomﬁeld Hills, Michigan 48304 20150323-NEWS--0016-NAT-CCI-CD_-- 3/20/2015 10:04 AM Page 1

Page 16 CRAIN’S DETROIT BUSINESS March 23, 2015 Finance: M&A Awards FINALIST: DEAL OVER $100 MILLION Celebrating Four Consecutive Sun Companies, Inc. (NYSE:SUI) a Michigan- COURTESY OF SUN COMMUNITIES INC. based REIT purchased 58 manufactured housing WIth its purchase of Green Courte Partners, Sun Communities increased its supply of manufactured housing communities geared toward older Americans. communities and related assets from Green Courte Years of Sun’s current communities include Gulf Stream Harbor in Florida (above) and the Partners in a highly complex series of transactions Lost Dutchman in Arizona (below). with an aggregate purchase price of $1.3 billion. Best Deal Jaffe represented Sun Communities in the purchase. This marks the fourth consecutive year that Jaffe clients have been recognized in the Crain’s Deal of the Year issue—a tribute to both our outstanding clients and our impactful relationships. Recognition

Congratulations to our client:

SOUTHFIELD • DETROIT • ANN ARBOR • NAPLES Sun Communities Inc./ funds, private equity funds and Green Courte Partners LLC high-net-worth individuals. www.jaffelaw.com “We were able to beat out our competition based on a rather ADVISERS complex structure that was negoti- Ⅲ Sun Communities: Jaffe Raitt ated by Jaffe representing us with Heuer & Weiss PC; Merrill Lynch, the seller that consisted of three Pierce, Fenner & Smith Inc. different financial tranches,” Ⅲ Green Courte: DLA Piper, Shiffman said. Eastdil Secured LLC Jaffe Chairman Arthur Weiss said that in the ut of 80 bidders emerged past two years, one. Sun has pur- O The $1.32 billion purchased about 85 chase of Green Courte Partners LLC new manufac- by Southfield-based real estate in- tured housing vestment trust Sun Communities and recreation- Inc. not only increased Sun’s port- al vehicle com- folio value by about one-third to munities. $5.1 billion but also increased the And look for portfolio’s share of age-restricted Sun Communi- manufactured housing from Weiss ties to continue 13 percent of its roughly 89,000 res- its portfolio expansion. idences to 24 percent. In the second quarter of this That’s important because the year, the company expects to close country’s aging population is cre- on the $257.6 million purchase of ating more demand for such hous- seven individually owned manu- ing options. factured housing communities Gary Shiffman, Sun’s CEO and with about 3,150 residences chairman of the board, called around Orlando, Fla. Green Courte’s As part of the Green Courte portfolio of 59 deal, that company’s founder and manufactured chairman, Randall Rowe, and Vice housing com- Chairman and CIO James Gold- munities with man became members of the Sun 19,000 resi- Communities board. Green Courte dences “irre- is based in the Chicago suburb of Engineering/ Human placeable assets Business Computers Education Health Lake Forest, Ill. Technology Services because of their The two-phase deal — the major- location and ity of which closed in November — Shiffman their quality.” Sun, which and other recent acquisitions also “TO FIND QUALIFIED EMPLOYEES, I RELY ON was represented by Jaffe, lined up have required Sun to expand its a mix of cash, debt and stock is- corporate headquarters by about BAKER COLLEGE.” suances to finance the deal. And 20,000 square feet in the American by increasing its market share, Center building as the company has Sun increased its appeal to institu- hired an additional 75 employees. tional investors such as pension — Kirk Pinho .com Ready. Trained. Hire. By increasing its market share, Sun Communities increased its appeal to institutional investors such as The service is free—the result is just the person you’re looking for. pension funds, private equity funds and FIND THE RIGHT CANDIDATE FOR THE JOB AT HIREQUALIFIED.COM 6483HQ high-net-worth individuals. 20150323-NEWS--0017-NAT-CCI-CD_-- 3/19/2015 3:44 PM Page 1

March 23, 2015 CRAIN’S DETROIT BUSINESS Page 17 Finance: M&A Awards WINNER: DEAL UNDER $100 MILLION O2 Investment Partners LLC/ of the proceeds of the sale back delivered to the company’s second- PC Treasures into the company. largest customer. O2 and PC Trea- “The chemistry was good. We’re sures had to placate the customer, ADVISERS on the same page,” Hansen said. which meant terminating the deal Ⅲ O2: Honigman Miller Schwartz Hansen said PC Treasures’ two with the supplier. and Cohn LLP, Plante Moran co-founders will continue to run A third complication was the PLLC, Ducker Worldwide, the company, with O2’s taking a timing. The deal closed in Novem- Conway MacKenzie Inc., board position. ber, by far PC Treasures’ busiest Comerica Bank He said O2 is comfortable that it time of the year. Ⅲ PC Treasures: UHY Advisors can have strong management in- “They were in the middle of a Corporate Finance; Howard & put without impeding the rapid increase in the need for Howard Attorneys PLLC founders’ entrepreneurial spirit. working capital in the middle of Hansen said a second complica- the closing,” Hansen said. ay Hansen, a managing part- tion two weeks before the deal The deal was the first one at O2 ner at Bloomfield Hills-based COURTESY OF PC TREASURES INC. closed was a quality issue with one that was led by Vice President PC Treasures sells digital devices such as power banks and wireless speakers. JO2 Investment Partners LLC, Luke Plumpton. But what interested O2 Investment Partners in an acquisition was that PC of PC Treasure’s 30 vendors in Chi- said it took a while for him to get na. Inferior products were being — Tom Henderson Treasures bundled software for cable TV shopping channels, a lucrative business. his mind around PC Treasures Inc.’s business after a potential acquisition was brought to him by UHY Advisors Corporate Finance late in 2013. Auburn Hills-based PC Trea- sures sells a range of digital devices, which was easy to figure out. But it also was a bundler of software for cable TV shopping channels. What, he wondered, did a bundler of software for TV shows do exactly? As it turned out, make a lot of money with a big markup. “Any negotia- tion has its ups and downs,” Hansen said. “But what was unique about this deal was their business is so unique, it took us longer to understand Hansen their niche. It wasn’t confrontational in any way, but it took us longer to understand their business model. But finally the light went on.” The Home Shopping Network and QVC sell a lot of computers, tablets and laptops. They don’t make money selling the devices. They make money by bundling the devices they sell with software and product support, and that’s where PC Treasures comes in. PC Treasures buys thousands of software titles, packages them and resells them to the shopping chan- Remember it’s my nels — which is where the channels, in turn, make their margins. PC Treasures also provides customer support after the purchase. money, not theirs. Due diligence taught Hansen and Todd Fink, another managing partner, that there was money to When you reach a certain point in your life, you realize you need more be made in bundling. It also taught than just a savings account. You need a bank that can help protect, them that they were compatible nurture and grow your wealth. with Brian Austin and Les Thomas, who co-founded PC Trea- When it’s time, come to Comerica. sures in 1998 and showed their commitment by reinvesting some

PC Treasures sells a range of digital devices but also was a bundler of software for cable TV shopping RAISE YOUR EXPECTATIONS. channels. What did a bundler of software for TV shows do exactly? As it ® Business Wealth Management Personal turned out, make a lot of MEMBER FDIC. EQUAL OPPORTUNITY LENDER. comerica.com money with a big markup. CBP-4049 07/14 20150323-NEWS--0018-NAT-CCI-CD_-- 3/19/2015 3:44 PM Page 1

Page 18 CRAIN’S DETROIT BUSINESS March 23, 2015 Finance: M&A Awards FINALIST: DEAL UNDER $100 MILLION

GET IN ON THE CONVERSATION Garden City Hospital, one of the last independent hospitals in Southeast Michigan, looked for an Chad covers litigation and the defense industry. Keep up with Chad at crainsdetroit.com/blogs appropriate merger partner for more than two decades before finding Prime Healthcare Services. CHAD HALCOM TWEET @CHADHALCOM COURTESY OF GARDEN CITY HOSPITAL

Prime Healthcare Services/ pital’s underfunded pension plan. Garden City Hospital Prime also has pledged to invest $35 million in capital improve- ADVISERS ments over five years. Ⅲ Prime Healthcare Services: “We did restructure in many ar- Records None eas, including clinical,” George broken record said. In the past six months, he Ⅲ Garden City Hospital: Juniper Advisory LLC; Hall Render Killian said, Garden City has reduced its Were Made Heath & Lyman PLLC workforce by the equivalent of only 75 full-time employees and he board and management of now has about 1,400. to be Broken Garden City Hospital, one of “The hospital never made money Tthe last independent hospi- on operations and lost a lot the past five years,” he said. “We closed 2014 was a record year for closings at tals in Southeast Michigan, looked 2014 with a profit on operations.” for an appropriate merger partner Huron Capital, with 23 transactions totaling George said Garden City has im- for more than two decades before $300 million in deal value (total purchase proved in every area that can be finding Prime Healthcare Services, a measured: quality, efficiency, pa- price and dividends received). for-profit chain based in Ontario, tient satisfaction and financial. Calif., said Saju George, appointed We are grateful to those with whom we For example, George said, pa- Garden City’s chief administra- tients now wait only 24 minutes be- have worked and look forward to another tive officer last November. fore seeing a physician, compared active year in 2015. While negotiations to complete with 47 minutes before. The goal is the deal last less than 20 minutes, he said. We are currently seeking new investment year went “Door-to-discharge time in the opportunities in specialty manufacturing, smoothly, ER used to be 9.2 hours,” he said. George said, the business services, consumer goods & services, “Now it is less than seven hours.” board sorted and healthcare. Like many hospitals, George through three said, Prime uses a variation of initial offers be- lean process engineering tech- fore selecting niques to improve efficiency and Prime. operations. “With issues In May, Garden City plans to be- PEOPLE in the local mar- We invest in . gin phase one of its capital im- George ket and changes provement plan. So far, the hospi- in health care reform, (the board) tal has spent $8.5 million on a We build LEADERS. knew they had to affiliate to variety of patient care and diag- thrive,” said George, who previ- nostic equipment, George said. ously worked for Saginaw-based “We have a lot of restructuring St. Mary’s of Michigan, a division of and capital improvements Ascension Health Michigan. planned,” he said. “By the end of “They primarily chose Prime the year, we will completely redo because one of the objectives was radiology, cardiology, pharmacy to continue the legacy of the hospi- and obstetrics.” tal established over 60 years,” he Prime Healthcare was founded said. in 2001 by Prem Reddy, M.D., an Sector Focus Platform Criteria Under the terms of the agree- internist who is the company’s ment, which ultimately needed the Specialty Manufacturing Buy & Build Strategies chairman, president and CEO. approval of Michigan Attorney Consumer Goods & Services Revenues: Up to $200M Prime owns 34 hospitals in nine General Bill Schuette, Garden states with a dozen more in the Business Services EBITDA: $5M or more City will remain an acute-care Healthcare No Minimums for Add-ons pipeline. It also has a pending deal hospital for at least five years and to acquire 164-bed St. Joseph Mercy will continue providing the same Port Huron Hospital. levels of charity care to the com- Prime’s integration strategy is munity. to own a number of hospitals in The agreement, which closed for each market, region or state to $90 million in total, also called for gain economies of scale, efficiency | | | 500 Griswold Street - Suite 2700 Detroit, Michigan 48226 313-962-5800 www.huroncapital.com Prime to retire Garden City’s $55 and synergies, George said. million in debt and absorb the hos- — Jay Greene 20150323-NEWS--0019-NAT-CCI-CD_-- 3/19/2015 3:42 PM Page 1

March 23, 2015 CRAIN’S DETROIT BUSINESS Page 19 Finance: M&A Awards

WINNER: Last year, Plante Moran DEALMAKER conducted due diligence ADVISER on 152 prospective Plante Moran PLLC deals nationwide, Southfield including 17 for Detroit- Dennis Graham, partner based Huron Capital

he private equity practice at Partners LLC — “the Plante Moran PLLC had anoth- gold standard for Ter record-breaking year in 2014, with revenue from the group private equity doubling over 2013. That account- ed for more than 10 percent of the companies,” says top line, up from less than 3 per- partner Dennis Graham. cent in 2006, the year the practice was formed. The practice, headed by partner COURTESY OF PLANTE MORAN PLLC Dennis Graham, serves both financial companies, most of them private equity firms, and strategic buyers. It has more than 200 private-equity clients nationwide. On the buy Graham side, about 70 percent of Plante Moran revenue and about 80 percent of the due- diligence engagements were on behalf of financial buyers, including some family-office clients. Last year, Plante Moran conducted due diligence on 152 prospective deals nationwide, including 17 for Detroit-based Huron Capital Partners LLC. Engagements for Huron included due diligence on two new platform companies and 13 add-ons for existing platform companies. Have a good day, for a long time to come. While some of Plante Moran’s engagements were for large trans- In the discipline of wealth management, you might ask if Greenleaf Trust is good actions, most were in the middle- market deal value range of $20 mil- at everything. If that means everything you’ve worked for, everything you’ve lion to $200 million. “I’m very humbled by this saved and invested for, and everything you hope your wealth can make award, but it’s a team award,” said Graham, part of the founding possible from this generation forward, the answer is yes, yes and yes. team of three when Plante Moran put its private equity practice to- With our client centric focus, goals-driven investment approach, and gether in 2006. He was named na- the stability enabled by $7B in assets, we achieve remarkably tional leader for the practice in 2010. good things for our clients day after day after day. Today, the practice has about 30 employees and three partners, in- Please call us to learn more. cluding Matt Petrucci and Michele McHale. “We’ve got more than 200 private equity clients around the country, many of them in Chicago, New York and Boston. When it comes to Michigan, Huron is the gold standard for private equity companies,” Graham said. “Our firms work very well together. We have a common culture built around similar values.” Graham said that about 90 percent of Plante Moran’s engagements result in deals getting done, because would-be buyers and sellers already have signed term sheets when the firm is brought into the mix. “We help the company buy what they think they are buying,” Gra- ham said. “We’re the home inspec- tors. We make sure there’s no black mold and that the furnace works.” The Plante Moran practice has recorded a record year every year 34977 woodward avenue birmingham, mi 48009 greenleaftrust.com 248.530.6200 since 2009, Graham said. “And we’re off to a great start this year,” he said. — Tom Henderson 20150323-NEWS--0020-NAT-CCI-CD_-- 3/19/2015 3:41 PM Page 1

Page 20 CRAIN’S DETROIT BUSINESS March 23, 2015 Finance: M&A Awards WINNER: DEALMAKER BUYER/SELLER BlackEagle Partners LLC Bloomfield Hills Most of Featuring: Bryan Tolles, Jason Runco BlackEagle’s efforts MCMANUS ROGER L. MYERS DISTINGUISHED BUSINESS LECTURE President and CEO — 12 acquisitions Presbyterian Villages of Michigan lackEagle Partners LLC spent Entrepreneurial Ventures a large chunk of its $175 mil- totaling B lion investment fund in for the Senior Market 2014, closing on 13 transactions for $256 million — a total deal value of more than were on growing a TUESDAY, APRIL 14, 2015 $267 million. 7 p.m. Lecture Most of the firm’s efforts — 12 holding company, Madonna University Kresge Hall acquisitions ranging from $600,000 US LBM 4DIPPMDSBGU3PBEt-JWPOJB .* to $87 million and totaling $256 million — were on growing a hold- Holdings LLC. Lecture is open to the public at no charge ing company, US LBM Holdings LLC, Seating is limited a Green Bay, Wis.-based distribu- COURTESY OF BLACKEAGLE PARTNERS LLC R.S.V.P. to Lori by April 7 tor of building and construction 734-432-5589 or [email protected] materials to homebuilders, remod- elers and specialty contractors. industries. Temperform will serve BlackEagle has INSPIRING ENTREPRENEURS SINCE 1989 The company, which added $512 as the platform company for fu- to return money Presented by the Aging Studies Department and the School of Business million in revenue and about 1,100 ture acquisitions. to the limited madonna.edu employees, now has 97 locations in Bryan Tolles, a vice president of partners in the 19 states. BlackEagle, said the busy year of first fund. And One of the acquisitions was a deal-making if it wants to Michigan company, Standard Cos. was the culmi- raise a second of Grand Rapids, which has seven nation of “five fund, the firm GET IN ON THE CONVERSATION locations. years of activi- has to show Sherri covers nonproﬁ ts, services, retail and hospitality. BlackEagle made another ty, of hundreds strong returns Keep up with Sherri at crainsdetroit.com/blogs Michigan acquisition: Novi-based of thousands of Runco from the first. Temperform Corp., a small specialty miles flying “Given US SHERRI WELCH TWEET @SHERRIWELCH steel castings company that serves around the LBM’s size, someone way up the the mining, cement and aerospace country and food chain needs to buy it from our hundreds of little firm,” Runco said. “We’ve meetings with been invested in the company for Tolles industry opera- 5½ years, so it’s about that time. tors.” We’re actively listening.” Said Jason Runco, one of Another portfolio company pos- BlackEagle’s founding partners, sibly ready to help harvest some “Between Bryan and me, we’ve returns for investors is Rockford probably met with every company Products LLC of Rockford, Ill., a What’s the Big Deal? in this space of meaningful size in fast-growing maker of cold-formed the country in the last five years, vehicle components. and that’s not an exaggeration.” Runco credited Honigman Miller 2014 was another successful year for PMCF with headliner transactions In April, BlackEagle closed on Schwartz and Cohn LLP with across all of our key industry sectors another transaction for US LBM: BlackEagle’s keeping up its deal St. Paul, Minn.-based Lampert Lum- pace. ber, which has 33 stores. “We closed four of those deals Runco said the firm’s fund has a on the same day in April,” he said. has been acquired by little dry powder left, and the time “Without Honigman and what

has completed a recapitalization with has come to decide whether to they do, a firm of our size could

a portfolio company of raise another fund. never have gotten that done. “That’s to be determined,” he “I want to call out Mike DuBay said. “If we do raise another fund, in particular. He leads the effort that means signing on to do this for us there and is probably the for another 10 years. Do the part- best M&A lawyer in town.” ners want to do this again? I don’t BlackEagle, founded in 2005, was know. We’ve got investors who named Crain’s Dealmaker of the want us to.” Year in 2011 for completing seven Runco said that in either event, acquisitions in 2010, a recession a sale of US LBM is a necessity year that saw few deals in general. sooner or later. At some point, — Tom Henderson

has acquired

has been acquired by

PMCF is a middle market investment bank providing merger and acquisition advisory services to companies globally. PMCF provides a broad range of services including sale advisory, acquisition advisory, capital raising and strategic advisory. The firm has dedicated industry teams providing services to the industrials, business and technology services, plastics and packaging and medical technology industries. PMCF, an affiliate of Plante Moran, has offices in Chicago and Detroit and globally via its Corporate Finance International affiliates. For more information, visit www.pmcf.com.

Phil Gilbert Matt Jamison John Hart Bryan Hughes Joe Wagner 248.223.3326 248.223.3368 248.223.3468 312.602.3636 312.602.3607 [email protected] [email protected] [email protected] [email protected] [email protected] DBpageAD_DBpageAD.qxd 3/12/2015 5:14 PM Page 1 DBpageAD_DBpageAD.qxd 3/13/2015 8:52 AM Page 1

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March 23, 2015 CRAIN’S DETROIT BUSINESS Page 23

CRAIN'S LIST: LARGEST ACCOUNTING FIRMS Accounting firms Ranked by number of employees Most firms

Number of Number of employees employees Number of CPAs changed form Company Detroit area in Michigan Detroit area Address Jan. 2015/ Jan. 2015/ In audit/ In Jan. 2015/ Rank Phone; Website Managing partner(s) 2014 2014 accounting In taxes In consulting other 2014 since 1985 Plante Moran PLLC .5.,5:5 1,013 /$$C ;$< /9" <9 <; ;8 1. <8$CC.5:&?6:5,(%&?A.=:&!*$C;8 +,%(,%05:,5 -99 /;8$ ;< Looking at the names on Crain’s 1<$2;"<'<"CC7???30*,:+.5,3.+ list of largest accounting firms in 1985 and then at today’s list is like Deloitte LLP and its subsidiaries 5)>(. 977 /C"- ;8; /-- <"9 /$- <9" 2. 3:5.(:$<<9 5:5(&(%, 8"- 8- $/; in their original form: Plante Moran 3. 1;/;2;-$'9CCC7???30?3.+ +5):+,%(,% and Derderian, Kann, Seyferth and 05:,5 Salucci. Ernst & Young LLP .5%,A. 562 9$8 /" /$9 /9$ -$ 3=(:/CCC:5.(:$<<9 :5.(:. !+,%(,% "<8 9C9 /$ 15, their ranking then, and what 1;/;29<'8/CC7???3A3.+ 05:,5 happened to them: UHY LLP D,:&.,A5.:: 330 ;;C //" /CC 9C "" /$" No. 1: Coopers & Lybrand 5. <88<":,6=5A*>3=(:3=(:/-CC:5.(:$<<9 +,%(,%05:,5 <8/ < /8$ day’s list. 1;/;2<;C';CCC7???3)0+%3.+ No. 2: Touche Ross & Co. was The Rehmann Group LLC :>,**A 260 "8" 9" 9" 9< 9 /<$ acquired in 1989 by Deloitte Hask- 7. /"CC3(%>5..,#..55.A$C$ &(5+,, <"C "99 /<$ ins & Sells (then No. 8) to form De- 1<$2-"<'"CCC75&+,,3.+ loitte & Touche and is now known Doeren Mayhew & Co. PC 5)5? .5 204 5.=(:5.=(:/-CC5.A$C$ 66=5,5%(.,*, C $C< $/ practice in 2002. 10. 1<$2;9<',=5(,( 77 88 /9 ;- 8 /" ;C No. 9: Peat, Marwick, Mitchell 056(,: 9- 9- ;/ (GHD CPAs and Advisors) and Co. is now KPMG after a merg- 12. 3:3*(5&.56$CC 1"9288<'/CC7???3%&03.+ er with Klynveld Main Goerdeler in 1987; No. 6 on today’s list. Clayton & McKervey PC >(,5>A 67 98 ;9 /8 ; // ;$ No. 10: Alexander Grant & Co. 13. A3.+ joined 49 other firms, including the United Kingdom’s Thornton Baker, Gordon Advisors PC @=:(>.++(:: 62 9< < /9 // /C ;/ in 1980 to form Grant Thornton In- 14. /;C/3.,%).=(:5=(:8CC5.A$C$ USA in July 2010; now No. 10. 1<$29$-';$CC7???3063.+ No. 12 (tie): Jack Martin & Co. Fenner Melstrom and Dooling PLC (&*.::6&** 32 ;< /C /9 9 < /- became Martin, Arrington, Desai & +,%(,%05:,5 ;< ;C / 17. ;""3*..?5=(:3=(:8$C:5.(:$=(:;C"D5.A$C$ DPS CFO William Aldridge, was 1<$29$;'$"$"7???306,>(6.563.+ dissolved in 1998. Iannuzzi, Manetta & Co. PC 5,),,=BB( 29 <- 5.=(:/CC5.A$C$ +,%(,%05:,5 ; ; /- 1<$2<<'-C/C7???3+*6.03.+ New since ’85 MRPR Group PC 5).::5+., 27 <8 // // < ; /8 The following companies on the 22. <$//.5:&?6:5,(%&?A=(:CC.=:&!*$C;$ +,%(,%05:,5 < < /8 current list were created after 1985: 1<$2;"8'-CCC7???3+5053.+ Iannuzzi, Manetta & Co.; ShindelRock (Shindel, Rock & Associates PC) :>.) 25 <" /; /; /9 - /; founded in 1990 (No. 20). 23. </CC.:5(>=(:/C<.>($;88 <$ <$ /< Mattina Kent & Gibbons; 1<$2""';;7???36&(,*5.)3.+ founded in 1988 as Gofrank & Mat- Mattina Kent & Gibbons (,,:::(,5 25 ;8 < .,($/"C'/9<" +,%(,%05:,5 <9 <9 /< Associates PC); founded in 1991 18;$2$<8'

Page 24 CRAIN’S DETROIT BUSINESS March 23, 2015 Ludlow Ventures forms joint venture to fund product videos for startups

BY TOM HENDERSON lions of views in several days, and and smartphone apps on the wind- CRAIN’S DETROIT BUSINESS soon after, Coin was able to hit its shield and allows hands-free oper- crowdfunding goal of $50,000 in 40 ation by voice. Detroit-based Ludlow Ventures minutes. After two weeks, 6 mil- Last August, using Lisagor’s LLC has formed a joint venture lion had seen the video. promotional video, Navdy hit with an in-demand Los Angeles- Coin, which is still in beta test- $1 million in orders the week it based video producer to create ing, hopes to have a launched an product videos for cash-strapped formal product online sales startups in exchange for equity. launch this spring. We’ll get the best campaign. It The joint venture, Sandwich Fund Lisagor has been “ soon closed LLC, launched earlier this month. listed on Lud- and earliest on a seed Ludlow will fund the cost of mak- low’s website round of ing the videos, generally about as entrepre- deal flow. $6.5 million, $100,000, according to Jonathon neur-out-of- which includ- Triest, founder of the seed-stage residence, a Adam ed Ludlow, venture capital firm, which oper- play on the and the com- ates a national practice out of the more com- (Lisagor of pany is re- Madison Building. mon title ported to be Triest said the investment will of entrepre- Sandwich raising anoth- come out of a $15 million fund, Lud- neur-in-resi- er round of low Ventures II LP, that he finished dence, and he Video) hears $20 million. raising last September. He said he was made a partner Earlier this will split equity equally with Adam in the firm in ex- of deals ahead of the month, a pro- Lisagor, the founder of Sandwich change for tips on file in Forbes Video Inc., which has made demon- possible investments. guys on Sand Hill said that “Lis- stration videos for some of the As startups ap- Road at better agor’s compa- hottest recent tech startups, includ- proach Lisagor about ny makes ar- ing Square Inc., Groupon Inc., Airbnb, doing videos, he valuations. guably the Uber and Lyft Inc. alerts Triest to those ” best and most In November 2013, Sandwich he considers the most sought-after Jonathon Triest, Ludlow Ventures had its biggest success with a promising for seed- product video for San Francisco-based Coin stage investments. launch videos Inc., which makes a digital credit One example is Navdy Inc., a San in tech, ones that you’ve probably card that combines all your cards Francisco company that has media seen, though you might not have into one piece of plastic. buzz for its dashboard-mounted de- noticed they were all made by the The company’s video got mil- vice that displays text messages same guy.” Triest said Sandwich Fund has closed on its first deal for a company he declined to name because the video has not been made yet. “We’ll do five to 10 videos in the next year,” he said. “We’ll do it from the current fund to test the “Building a World Class model, and if it works well, we’ll raise a dedicated fund, as well. Sales OrganizaƟon” “We’ll get the best and earliest deal flow. Adam hears of deals ahead of the guys on Sand Hill Road at better valuations,” said Learn how to align Triest, referring to a street in Men- lo Park, Calif., known for its clus- your people, processes ter of venture capital firms. Triest said about a third of his second fund has been invested in and sales culture 32 portfolio companies, with much of the rest of the money reserved for follow-on investments in those funds and for footing the bill for May 6th upcoming Sandwich Fund videos. He said he plans to start raising 8:00-10:30 AM a new fund of at least $35 million in the next few months. That will be WesƟn SouthĮeld in addition to a possible dedicated fund for video production. Triest, a member of the Crain’s Join Dave MaƩson, CEO of Sandler Training and 20 in their 20s class of 2011, launched Ludlow Ventures in 2009 Gerry Weinberg & Associates as they lead as an investment vehicle for fami- top area sales execuƟves in this ly members, and prior to raising the current fund, he raised money leadership summit that will from them as needed to do deals. RevoluƟonize Your Sales OrganizaƟon! He has co-invested in two De- troit companies with Detroit Ven- ture Partners — Chalkfly, an online office supply company that was re- SeaƟng is Limited | Reserve Your Spot Today cently sold, and UpTo Inc., which makes calendar apps. Although based in the Madison www.gerryweinberg.sandler.com Building, most of Ludlow’s investments have been elsewhere, in- or Call 248-353-4030 cluding companies based in Cali- fornia, New York, Nevada, Nebraska, Ohio, Pennsylvania and Colorado. Tom Henderson: (313) 446-0337, [email protected]. Twitter: @TomHenderson2 20150323-NEWS--0025-NAT-CCI-CD_-- 3/20/2015 10:05 AM Page 1

March 23, 2015 CRAIN’S DETROIT BUSINESS Page 25 House bill would ban noncompetes; local attorney defends covenants

BY DUSTIN WALSH Fuhs cited a 1987 amendment to merce and Trade, has enough po- CRAIN’S DETROIT BUSINESS the Michigan Antitrust Reform litical backing to become law. Act in 1987, stemming from a Michi- “This is Lansing,” Lucido said. Noncompete agreements are un- gan Supreme Court decision in 1985 You simply don’t know what has der attack in Michigan. — which Crain’s reported on last legs and what doesn’t.” State Rep. Peter Lucido, R-Shel- week. Lucido is the bill’s only sponsor, by Township, has introduced Language from the ruling, which which doesn’t help it get passed, House Bill 4198, which, if ap- involved cases Follmer, Rudzewicz said John Truscott, president of proved, would & Co. v. Kosco and Nolta-Quail- Lansing-based public relations ban all noncom- Sauer and Associates v. Roche, laid and nonpartisan political consult- pete agreements the groundwork for a provision to ing firm Truscott Rossman LLC. between em- include noncompete clauses in the “If you don’t have co-sponsors, it ployers and em- Michigan Antitrust Reform Act, would hard to have wide-ranging ployees in the protections in the Michigan Uni- support,” Truscott said. state. form Trade Secrets Act in 1998 and The Michigan Chamber of Com- Lucido intro- federal rules as well. merce told Crain’s it would lobby duced the bill in Fuhs said the Supreme Court against the bill if it gains momen- February amid ruling explicitly states a noncom- tum in the House. a highly publi- Lucido pete agreement must be reason- “There is over 30 years of case cized debate able, unlike the Jimmy John’s law directed at Michigan’s current about noncompetes stemming agreements. law, and the courts have consis- from the use of the agreements by “Any attorney who practices in tently penalized employers who Champaign, Ill.-based Jimmy John’s this area knows that they need to develop overly broad noncompete Franchise LLC. Employees at Jimmy properly advise their clients on agreements,” Wendy Block, the John’s stores, sandwich makers, what is reasonable and what is not chamber’s director of health poli- were forced to sign noncompete reasonable,” Fuhs said. cy and human resources, via agreements contractually banning A class-action lawsuit has been email. “We believe the courts gen- them from leaving to work with a filed in U.S. District Court in Illinois erally work to strike a fair balance competitor, such as Subway. against Jimmy John’s for its use of when a noncompete is challenged, The freshman state representa- noncompete agreements. Jimmy weighing the interest of the em- tive calls noncompete agreements John’s did not respond to an in- ployer and the employee. We be- oppressive to workers, but local at- quiry from Crain’s on the issue. lieve the legislation is an overreac- torneys call the covenants neces- It remains unclear whether Lu- tion to extreme examples.” sary and say that amending a 30- cido’s proposed Michigan legisla- Dustin Walsh: (313) 446-6042, year-old law would make tion, which has been referred to [email protected]. Twitter: protecting intellectual property the House Committee on Com- @dustinpwalsh nearly impossible. Lucido’s legislation would alter an existing law that allows noncompetes during the sale of a business, limiting the former business owner from directly competing with their former company. He said forcing laborers to sign noncompetes is wrong and arguably against the law, citing a section of the 1984 Michigan Antitrust Re- form Act, which states, “Labor of a human being is not a commodity or an article of commerce.” “Asking employees to sign a noncompete is just another form we layer (on top of employment) to prevent them from working,” Lu- cido said during an interview with Crain’s. “There comes a time when you have to protect a business, but that protection goes away when you take away a man’s or woman’s right to a livelihood.” Lucido said the use of nondisclo- sure and proprietary confidentiali- ty agreements are adequate in protecting trade secrets without limiting a person’s right to employment. But Bernard Fuhs, partner and commercial litigator at Detroit- based Butzel Long PC, said those types of agreements simply aren’t enough to protect trade secrets. “If every human being abided by the honor system and could com- partmentalize confidential or trade-secret information and not draw on it or use it in any way, maybe it would work — but that’s not reality,” Fuhs said. “Nondis- closures standing by themselves are extremely difficult to monitor and police. (Noncompetes) are easier to police, and they simply work better by ensuring that a person is not in a position to wrongfully use or disclose the company’s relationships and secret information.” 20150323-NEWS--0026-NAT-CCI-CD_-- 3/20/2015 10:05 AM Page 1

Page 26 CRAIN’S DETROIT BUSINESS March 23, 2015

Invest Wisely Nikki’s Ginger Choose an Advisor Who Sees the Bigger Picture Tea to move WORLD CLASS MONEY MANAGERS | TRANSPARENT FEES INDEPENDENT ACTIVE TAX LOSS HARVESTING | ADVANCED TAX PLANNING into Forgotten As an Independent Registered Investment Advisor, Schechter is freed from the constraints and economic pressure many advisors face at large brokerage firms. We have no one telling us to “sell” a specific fund or proprietary product. Come discover the Harvest kitchen independent difference, where our clients get our best advice, solutions, and products no matter what.Trusted for 75 years. BY GARY ANGLEBRANDT SPECIAL TO CRAIN’S DETROIT BUSINESS

Nikki’s Ginger Tea LLC, which had been operating out of an east side Detroit church basement for 18 years, plans to move into a new commercial kitchen at Forgotten Harvest’s Oak Park headquarters by the end of the month. The move gives Nikki’s access to better equipment and increased storage space that allows the company to double or triple its current sales volume of about 60 cases a Bernie Kent, JD, CPA, PFS | Jason Zimmerman, MBA, CLU, CAP | Marc Schechter, CLU | John Stein, MBA, CFA week, said Monique Sasser, owner Brad Feldman, JD, CLU | Ilana Liss | Jeff Vieder | Aaron Hodari | Jordan Smith, JD, LLM | Paul Snider | Chris Hale of Nikki’s and a 2011 Crain’s Salute Kevin Beauchamp | Larry Leib, JD | Brian Young, JD, CLTC | Clune Walsh III to Entrepreneurs awardee. Nikki’s had been based at the Church of the Messiah in Detroit, but practical limitations pinched growth, causing the business to more slowly pace its acceptance of new customers. Besides space and Contact a Schechter Expert to learn more about how an Independent advisor can make a difference: WWW.SCHECHTERWEALTH.COM equipment limitations, the Call 1.866.731.9500 or email [email protected] BIRMINGHAM, MI | NEW YORK, NY kitchen was open to people passing through and was unavailable at Securities may be offered through NFP Advisor Services, LLC (NFPAS), Member FINRA/SIPC. Investment Advisory Services may be offered through NFPAS or Schechter Investment Advisors, LLC. Schechter Investment Advisors, LLC. is not affiliated with times since a church must contin- NFPAS. NFPAS does not provide legal or tax advice and is not a Certified Public Accounting firm. SIA is an SEC registered investment adviser; please consult the Firm’s Form ADV disclosure documents, available on the SEC’s Investment Adviser Public ue its work of being a church. Disclosure website. “If there’s a funeral, we can’t make tea at all,” Sasser said. Sasser said the church’s low rent and help were invaluable in getting her business off the ground. Nikki’s employs eight people and provides work to local youths to give them valuable early job skills. She will maintain a wholesale sales office at the church. Forgotten Harvest’s kitchen ac- M&A Experience tually belongs to Hopeful Harvest Foods Inc., a business launched last fall by the nonprofit to offer ser- ® vices to food entrepreneurs. All In Your Corner. profits feed back to the charity. Besides commercial kitchen use, Hopeful Harvest offers a com- Ŷ Mergers and acquisitions, private equity, angel bination of kitchen, manufactur- and venture capital, fi nance, and joint venture ing, processing, co-packing, ingre- dient sourcing and business transactions. consulting services, depending on Ŷ Commercial transactions, corporate structuring the customer’s needs, said its pres- and succession planning, real estate transactions, ident, Chris Nemeth. The facility comprises 3,000 tax planning matters, and 1031 exchange square feet of commercial kitchen transactions. space and 12,000 square feet of re- frigeration and freezer storage. The business invested $250,000 to build the facility. Nikki’s pays a monthly fee that covers the services it needs. The business gets access to machines that bottle, cap and label the teas, tasks that previously had been done by hand. A loading dock opens up possibilities for deals with distributors. Hopeful Har- vest’s staff workers are available to work at times when Nikki’s need extra hands. The ginger-based teas have ap- peared in a growing number of stores over the past three years, following the introduction of its products into a Whole Foods Market store in late 2011. The teas are in 77 stores First Tier Ranking in and are being introduced into an- Corporate Law and Commercial Litigation other 10 by way of Plum Market and The Better Health Store outlets. ■ ■ ■ ■ ■ Contact Pete Roth at [email protected] Metro Detroit Grand Rapids Kalamazoo Grand Haven Lansing Sasser expects her products to be in at least 120 stores by year’s end. DBpageAD_DBpageAD.qxd 3/12/2015 9:21 AM Page 1

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Page 28 CRAIN’S DETROIT BUSINESS March 23, 2015 Esperion plans $150M stock offering after positive drug trial

which carries the working name Final studies to begin this year of ETC-1002 and which treats high cholesterol and other car- BY TOM HENDERSON and were trading at $118.62 Thurs- diovascular risk markers for CRAIN’S DETROIT BUSINESS day afternoon. All of that is a far those who are intolerant to the cry from the $15 shares command- statin class of drugs, such as Lip- Following the release of positive ed a year ago. results from human trials of its itor and Torvastat, that are nor- The company hasn’t set any tim- mally used to treat such condi- cholesterol drug last week, which ing for the offering, saying it will sent its stock price rocketing in tions. be based on the market and other two days, Ann Arbor-based Esperi- Esperion said in a statement conditions. This offering follows a on Therapeutics Inc. (Nasdaq: ESPR) Tuesday that results from one of has announced it intends a public secondary offering of $98 million the drug’s ongoing trials offering of $150 million. last October. The company went showed an average reduction of Shares in the company opened public in an offering of $73 million low-density lipoprotein, the so- Tuesday at $75.55 and closed on the in June 2013. called bad cholesterol known as COURTESY OF ESPERION The company has had a series of Esperion Therapeutics Chief Scientific Officer Roger Newton (center) rings the good news at $99.60. They hit a 52- LDL, of 17. A higher dose in- Nasdaq opening bell soon after the Ann Arbor company's IPO in June 2013. week high of $104.24 on Wednesday positive results from its drug, creased the effect, cutting cholesterol by 24 percent. The market also reacted to news from company CEO Tim Mayleben that Mayleben based on those results the company plans to begin Phase 3 studies — the last phase needed before getting approval to go to market — later Crain’s 2015 Dealmaker of the Year. this year and that it expects to get approval from the U.S. Food Investing in businesses that want more than just capital. and Drug Administration to begin using the drug by the second half of 2018. Credit Suisse Securities LLC is acting as lead book-running manager for the proposed offering, with RBC Capital Markets LLC and UBS Securities LLC acting as joint book-running managers. Esperion said it expects to grant the underwriters a 30-day option to purchase up to $22.5 million of additional shares of stock. The company said in a filing with the U.S. Securities and Ex- change Commission that it intends to use the net proceeds from the offering to complete the clinical development of ETC-1002 and for working capital and general corporate and administrative expenses. A year ago, Esperion stock was trading at a little more than $15, and the analysts who covered the company predicted an average 12-month target price of about $30. In February, Esperion’s share price jumped $14 to $55.53 on results of a different human trial, which showed that when used in combination with ezetimibe, a drug marketed as Zetia by Merck, ETC-1002 lowered LDL levels by 48 percent. This iteration of Esperion was founded in 2008, when as part of closing its Michigan operations, Pfizer Inc. sold the name “Esperi- on” to Roger Newton, along with as some small molecules he wanted to develop into drugs. Newton, one of the team members that discovered Lipitor, founded the first iteration of Es- perion in 1998, took it public in 2000 and sold it to Pfizer for $1.3 billion in 2004. www.blackeaglepartners.com Tom Henderson: (313) 446-0337, [email protected]. Twitter: @TomHenderson2 20150323-NEWS--0029-NAT-CCI-CD_-- 3/20/2015 10:07 AM Page 1

March 23, 2015 CRAIN’S DETROIT BUSINESS Page 29 Recyclers sift rubble of Detroit homes to find, create treasures

BY CHRIS CHRISTOFF AND move all neighborhood blight, the unlikely products as well. One en- Ackley, 30, a former financial plan- ALEXANDRA MONDALEK task force concluded. trepreneur uses wood from vacant ner. They work from their 800- BLOOMBERG NEWS By April, the city will have used Detroit homes to create sunglasses. square-foot basement in Ferndale. half its $100 million in federal aid Gary Zimnicki and Mark Wallace Hanging tarps divide a glass-cutting Detroit’s 70,000 abandoned to tear down almost 4,000 build- make guitars. Zimnicki also makes station from their washing machine. homes are proving to be a treasure ings, and it plans to raze another ukuleles and mandolins from old “Having the Detroit connection trove for entrepreneurs who recy- 3,300 by later this year, according lumber that he says produces a has definitely helped us grow cle century-old lumber, glass and to Brian Farkas, projects director richer sound. While most of his faster because you get so much in- brick into everything from terrari- BLOOMBERG NEWS for the Detroit Building Authority. acoustic instruments use conven- terest,” Ackley said. ums to $4,500 guitars. It takes as long as three days to Beyond that, Duggan is searching tional wood, some buyers want an “It’s like a treasure hunt,” said remove resalable materials before for more money to continue demoli- instrument made from a 100-year- Craig Varterian, executive direc- wrecking crews level a structure, but tions, which have left swaths of va- old house, said Zimnicki, 57, whose Creating a hub tor of Reclaim Detroit, a nonprofit the process saves about 400 tons of cant land. Reusing materials from a home workshop is in Allen Park. To tap demand, the city is offer- debris per typical house and basement group that has stripped and sold fraction of demolished homes “It’s a cool thing to be involved ing to lease a 37,500-square-foot va- demolished from landfills. materials from almost 70 demol- would create jobs and feed new, lo- with preserving some of the past, cant warehouse it owns, plus sur- ished homes. Floorboards and fell below 700,000 from 1.8 million cal industries, proponents say. part of our heritage,” said Zimnic- rounding land, for $1 a year to a joists of early 20th century maple, Reclaim Detroit is one of several ki, showing a $4,500 guitar made of private operator who would create walnut, hickory, fir and even in the 1950s. While decrepit buildings are being stripped of reusable nonprofits that are deconstructing wood from a house built in 1910. a regional hub to recycle tons of ma- chestnut are prized for their densi- materials in other U.S. cities, the homes. It takes as long as three The top is made of Douglas fir from terials from demolitions. The cen- ty and fine grain. magnitude of Detroit’s decay holds days to remove resalable materials ceiling joists, rather than spruce. ter would create “critical mass” As Detroit ramps up demoli- limitless bounty for entrepre- before demolition. The back and sides are made from that would generate more demand tions of vacant dwellings, Mayor neurs, businesses and home-im- maple floorboards. and more jobs, said Farkas. Mike Duggan plans a reclamation provement devotees who see the Wallace’s Detroit-based compa- The plan is more ambitious than center in a city-owned building to Sunglasses, guitars Motor City’s rich history in ny makes solid-body electric gui- reclamation centers in other keep tons of rubble out of landfills ripped-out floors and walls. “When I got here in 2013, our tars from two-by-fours torn from cities, said Anne Nicklin, execu- and create jobs and merchandise. “Detroit debris as a marketing sales were near $9,000 a month; now homes, which create a butcher- tive director of the Building Materi- Recycling would become a center- tool is in vogue,” said Varterian, we exceed $90,000 a month,” said block appearance. als Reuse Association, a Chicago- piece of the city’s blight-removal 55, whose products include cutting Chris Rutherford, executive direc- “Wood from these homes came based nonprofit. She reviewed effort, which is struggling to main- boards and tables fashioned in a tor of Architectural Salvage Warehouse from old-growth forests; the grain Detroit’s request for proposals. tain funding. sprawling former automotive Detroit, a nonprofit that also recy- pattern is more dense, more beauti- The city wants to deconstruct at A typical house and basement warehouse. cles wood. He said he has 15 to 18 ful,” said Wallace, 37, who also heads least 10 homes a month, with all yields 400 tons of debris, meaning full-time employees, plus subcon- the Detroit RiverFront Conservancy. reusable materials going to the material from all of Detroit’s va- tractors and part-time labor. Glass and wood from Detroit reclamation hub, Farkas said. cant residential buildings would Bankruptcy exit There are plans to deconstruct homes become terrariums in the Stripping a house adds about 15 weigh about 28 million tons — Detroit, which emerged from its 100 structures in the coming year, hands of Derek Smiertka and Chad percent to the $12,500 average cost roughly equal to 280 of the largest record $18 billion municipal bank- Rutherford said. Ackley, who started Lead Head Glass of demolition, he said. U.S. aircraft carriers, fully loaded. ruptcy in December, had more than While reclaimed lumber has fur- LLC in 2013. Last year, they sold Home deconstruction also teach- The city’s 139 square miles (360 78,000 vacant buildings last year, nished many Detroit restaurants 1,500 in the U.S. for between $40 and es skills that can be transferred to square kilometers) were scarred according to a blight task force sur- and businesses, remnants of the $190, at a 50 percent margin. the construction trade, according by abandonment as its population vey. It would cost $850 million to re- city’s decay have found their way to Smiertka, 40, is an ex-lobbyist and to Reclaim Detroit.

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Page 30 CRAIN’S DETROIT BUSINESS March 23, 2015

BUSINESS DIARY ACQUISITIONS & MERGERS care. Websites: arbormetrix.com, Want to become one of the mhakeystonecenter.org. Agree Realty Corp., Bloomfield Hills, announced it has closed on the acquisi- Toggled, Troy, developer and producer healthiest workplaces in tion of 15 retail properties for an aggre- of next-generation solid-state lighting gate purchase price of approximately technology and a subsidiary of Altair $42.1 million. The properties are net Engineering Inc., announced that Michigan and improve your leased to 12 different tenants operating Koninklijke Philips N.V., Netherlands, is now a licensee to its patent portfolio in nine retail sectors in 10 states. Web- primarily related to LED replacements site: agreerealty.com. bottom line as well? for fluorescent tubes. The agreement Engineered Cooling Systems LLC, resolves all patent litigation between Brighton, a provider of oil coolers, radi- Toggled and Philips. Website: ators and heater cores, acquired the as- toggled.com. Join us sets of Vista Pro Automotive LLC, for breakfast Nashville, Tenn., and its Nuevo Laredo, EXPANSIONS Mexico, manufacturing facility through bankruptcy in December 2014. ECS has BorgWarner Inc., Auburn Hills, is ex- at metro Detroit’s combined with its affiliate Tube Wright panding capacity in Ningbo, China, Inc., Brighton, to form United Systems with a new production line for its lat- Group. Website: usgmfg.com. est exhaust gas recirculation valves most unique hospital engineered to reduce nitrogen oxide Paramount Precision Products Inc., emissions for passenger cars and com- Oak Park, a precision machine tooling mercial vehicles. BorgWarner expects company, has acquired Numerical Pro- to supply its latest EGR technology to WED.| APRIL 22 ductions Inc., Indianapolis, a CNC ma- a large Chinese automaker beginning chining company. The minority-owned in May. Website: borgwarner.com. supplier intends to expand its preci- Henry Ford West Bloomfield Hospital sion machining services to Midwest NEW PRODUCTS manufacturing companies. Website: pppcnc.com. Art Van Furniture Inc., Warren, an- 7:30 - 9:30 a.m. nounced that Paul’s TV inside Art Van Whitlock Business Systems Inc., Madi- Furniture locations has added an ex- son Heights, a print house serving lo- Hear from a panel of 2015 Healthiest Employers who are using wellness as a strategy clusive line of ProForm treadmills, el- cal, regional, national and internation- liptical machines, exercise bikes and to drive workplace productivity, employee health and community well-being. Panelists al clients over a broad base of rower equipment to its array of televi- will share their success strategies so your business (of any size) can create these industries, has acquired BRD Printing sions, home audio and in-home theater Inc., Lansing. Sales, customer service products. The fitness line is available same programs and turn your employees into happier and healthier individuals – and production will remain in both lo- at stores in Warren, Shelby Township, resulting in stronger bottom lines and increased productivity. HAP’s wellness experts cations. Website: wbsusa.com. Royal Oak, Westland, Taylor, Novi, Grand Rapids and Lansing. Websites: will be on hand to share tips for your success. CONTRACTS artvan.com, paulstv.com/fitness. ArborMetrix Inc., Ann Arbor, a provider of a private cloud-based STARTUPS To register, visit crainsdetroit.com/events or call (313) 446-0300 health care analytics platform, an- Fruit Fairies, Ann Arbor, founded by nounced that the Michigan Health & students attending the University of Hospital Association Keystone Center, Michigan, delivers healthy food bas- Okemos, has begun using a customized kets weekly to customers who sub- version of ArborMetrix’s Reg- scribe to the service. Website: istryMetrix to monitor obstetrics fruitfairies.com.

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DETROIT BUSINESS 20150323-NEWS--0031-NAT-CCI-CD_-- 3/20/2015 10:09 AM Page 1

March 23, 2015 CRAIN’S DETROIT BUSINESS Page 31

PEOPLE CONSULTING management supervisor, Berline Group Inc., Royal Oak, from field mar- James Sallee to keting manager, The Wendy’s Co., IN THE SPOTLIGHT senior regulatory LaSalle. specialist, King & The Barbara Ann Karmanos Cancer Institute has named Brian MacGregor Envi- NONPROFITS ronmental Inc., Gamble as Canton Town- Christopher Patten to associate direc- executive vice ship, from land tor of design thinking for K-12 innova- president and and water re- tion, Henry Ford Learning Institute, CFO. sources specialist, Dearborn, from faculty member, Par- Gamble brings Stantec Consult- sons The New School for Design, New more than 30 York, and consultant for Thriving, the ing Michigan Inc., years of school’s design research lab. Sallee Ann Arbor. business experience in HEALTH CARE SERVICES treasury Virginia Juncker Jeff Smith, D.O., to president, Anesthe- operations, to executive di- Gamble investment sia Staffing Consultants Inc., Bing- rector, programs ham Farms, from anesthesia medical management, and member debt management, financial director, Anesthesia Staffing Consul- services, Original tants Inc., Flint. analysis, and mergers and Equipment Suppli- acquisitions. Most recently, he ers Association, MANUFACTURING was vice president and assistant Troy, from man- treasurer for Henry Ford Health ager, organiza- John Lenga Jr. to System and vice president of head business tional optimiza- tion, Devon finance and CFO of Henry Ford group North Juncker West Bloomfield Hospital. America, Au- Facility Manage- toneum North ment LLC, Detroit. He replaces Michael Grisdela, who America Inc., Jeff Krupp to senior vice president of left the Detroit institute last Farmington Hills, OEM services, FordDirect, Dearborn, summer for St. Joseph Mercy from CFO, busi- from vice president of OEM services. Hospital in Ann Arbor. ness group North Also, Chris Johnson to vice president Gamble, 54, holds bachelor’s GET IN ON THE CONVERSATION Lenga America. of consumer acquisition, from senior degrees in accounting and finance Jay covers health care, insurance, energy, utilities and the environment. director of advertising, and Greg from Ferris State University, and McLaurin to vice president of dealer MARKETING he is an MBA candidate at Walsh Keep up with Jay at crainsdetroit.com/blogs operations, from senior director of College of accountancy. JAY Nancy Crawford to vice president, dealer operations. GREENE TWEET @JAYBGREENE

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Page 32 CRAIN’S DETROIT BUSINESS March 23, 2015

CALENDAR

tion Luncheon, supporting student WEDNESDAY outreach and student emergency fund, MARCH 25 HEALTHIEST EMPLOYERS features panel including Lila Lazarus, president of Kids Kicking Cancer and Inside the CEO Mind. 3 p.m. Detroit Re- BREAKFAST AND HOW-TO former reporter/anchor for WDIV- gional Chamber. Frank Venegas Jr. of Join Crain’s and Health Alliance Channel 4; Jackie Lovejoy, president, The Ideal Group will speak; a tour Dearborn Area Chamber of Commerce; Plan for breakfast and discover follows the presentation and question- Haifa Fakhouri, president and CEO, and-answer session. The Ideal Group how to make your business one of Arab American and Chaldean Council; Inc., Detroit. $25 chamber members, the healthiest workplaces in and Beth Chappell, president and $50 nonmembers (cost goes toward Michigan. CEO, Detroit Economic Club. Student membership). Contact: Maggie The Healthiest Employers and Culinary Arts Center, Henry Ford Oldenburg, (313) 596-0482; email: breakfast and awards presentation College, Dearborn. $15 luncheon tick- [email protected]; web- takes place 7:30-9:30 a.m. et. Walk-ins allowed. Contact: Kathy site: detroitchamber.com/events. April 22. A panel of 2015 Dimitriou, [email protected] or Healthiest Employers who are (313) 845-9620, or donate online at Ram: Redefining a Brand. 6-8 p.m. adding wellness strategies to drive my.hfcc.edu/RegForms/donation.asp. Marketing and Sales Executives of De- workplace productivity, employee troit. Joe Benson, head of the Ram health and community well-being brand, FCA US LLC, speaks. Golling UPCOMING EVENTS Chrysler Dodge Jeep Ram, Bloomfield will share their success stories so your business (no matter the size) Hills. $45 MSED members, $60 non- Health Care Leaders Forum. 7:30 a.m. members. Registration closes at 10 can create these same programs March 31. Detroit Regional Chamber. a.m. the day of the event. Contact: and turn your employees into Forum focuses on the Patient Protec- (248) 643-6590; website: msedetroit.org. happier and healthier individuals. tion and Affordable Care Act’s wins, HAP’s wellness experts also will losses and consequences for patients THURSDAY be on hand to share tips. and the business community, as well The event will be held at Henry as offering a five-year forecast of the MARCH 26 Ford West Bloomfield Hospital, health care industry. Federal Reserve Bank of Chicago-Detroit Branch, Business Leaders for Michigan Leader- 6777 W. Maple Road, West Detroit. $129 chamber members, ship Summit. 8 a.m.-noon. Speakers Bloomfield Township. Tickets are $179 nonmembers (fee includes mem- and panelists include Doug Rothwell, $25 for individuals, or $20 for bership). Contact: Janelle Arbuckle, president and CEO, Business Leaders Detroit Society of Human (313) 596-0340; email: jarbuckle@ for Michigan; Hans-Werner Kaas, se- Resource Management members. detroitchamber.com; website: detroit nior partner and director, McKinsey & Registration closes April 20 at chamber.com/events. Co.; Ray Leach, 9 a.m. If available, walk-in CEO, JumpStart registration will be $25 per person. Lunch With the Governor. 11 a.m.-1:30 Inc.; Brian Hicks, p.m. March 31. president and To register or learn more, contact Sterling Heights CEO, Hicks Part- Kacey Anderson at Regional Chamber ners, and chief ar- [email protected] or (313) of Commerce & In- Luxury suites available: chitect of Ohio 446-0300, or visit dustry. Gov. Rick Third Frontier; crainsdetroit.com/event/crains/ Snyder will speak Steve Arwood, 3235005/healthiest-employers. on reinventing Tue, Mar. 31 – Pistons vs Hawks at 7:30 p.m. CEO, Michigan Michigan, fol- Economic Devel- lowed by a Q&A. opment Corp.; MacRay Banquet Sat, Apr. 4 – Pistons vs Heat at 7:30 p.m. Michael Jander- sour, [email protected] or (248) Pierce 641-5900, ext. 244; website: greatlakes Center, Harrison noa, board of di- bisummit.com. Township. $40 for Wed, June 10 – Bette Midler at 6:30 p.m. rectors, Perrigo Co.; Charles “Chip” Mc- members of the Clure, managing director, Michigan Snyder Business Leaders of the Year. 6-9 p.m. Sterling Heights Capital Partners LLC; and Sandra Sun, June 14 – Rush at 6 p.m. Harvard Business School Club of Regional, Romeo/Washington, East- Pierce, chairman and CEO, FirstMerit Michigan. Dinner and awards ceremo- pointe/Roseville, Anchor Bay Area and Michigan. Lansing Center, Lansing. ny honoring Gordon Krater, managing Macomb County chambers; $55 non- Walk-ins allowed. Free. Contact: Jen- members. Contact: (586) 731-5400, ext. nifer Hayes, (313) 259-5400, email: partner, Plante Moran; and Sandra Pierce, chairman and CEO, FirstMerit 11; email: [email protected]; website: jenniferh@businessleadersformichi shrcci.com. gan.com; website: businessleaders Michigan. MSU Management Educa- formichigan.com/events. tion Center, Troy. Private reception for sponsors, 5:30 p.m. Tickets $150 and up, Beyond Traffic. 11:30 a.m.-1:30 p.m. available at hbsmi.org/store.html? March 31. Detroit Economic Club. An- , U.S. secretary of trans- 2015 Great Lakes Business Intelli- event_id=258. Contact: Amanda thony Foxx portation, is the keynote speaker. gence and Big Data Summit. 8 a.m.-5 Schubeck, (248) 930-4614 or amanda. p.m. WIT Inc. Summit is a cross-in- Westin Book Cadillac, Detroit. $45 [email protected]. Website: hbs dustry educational and networking DEC members, $55 guests of members, mi.org. event for IT and business executives and $75 nonmembers. Ticket sales end interested in big data topics and at noon March 30. Contact: (313) 963- trends. Keynote speakers include FRIDAY 8547; email: [email protected]; web- Boris Evelson, vice president, For- MARCH 27 site: econclub.org. rester Research, and Don Farmer, vice president of innovation and design, Women Leaders: Driving Our Future. 11 Social Security Workshop. 6:30-8 p.m. Qlik. Somerset Inn Hotel, Troy. $149. a.m.-1:30 p.m. Henry Ford College. March 31. Bridgeriver Advisors LLC. No walk-ins. Contact: Amanda Man- HFC’s 42nd annual Women’s Recogni- Dan Casey, financial adviser and au- thor of The Coming Inflation Crisis and the 4-Step Action Plan for Retirees, addresses five factors to consider when applying for benefits. A seminar is also planned April 2 at the same time and location. Warren Communi- ty Center, Warren. Contact: (800) 353-6730; website: socialsecuritycon fidence.com.

SUITES START AT $999 CALENDAR GUIDELINES If you want to ensure listing online Including: VIP parking, private restrooms, and be considered for print publication in Crain’s Detroit and up to $600 in catering credits! Business, please use the online calendar listings section of www.crainsdetroit.com. Here’s how to submit your events: From the Crain’s home page, click “Detroit Events” in the red bar near the top of the page. Then, click “Submit Your Entries” from the drop-down menu that will appear and you’ll be taken to our online submission form. Fill out the form as instructed, and then click the Pistons.com/premium “Submit event” button at the bottom of the page. That’s all there (248) 377-8477 is to it. More Calendar items can be found on the Web at www.crainsdetroit.com. 20150323-NEWS--0033-NAT-CCI-CD_-- 3/20/2015 5:40 PM Page 1

March 23, 2015 CRAIN’S DETROIT BUSINESS Page 33 DPS: UM faculty to teach leadership HelloWorld to relocate HQ to Southfield ■ From Page 3 BY BILL SHEA tower. Its lease will run through CRAIN’S DETROIT BUSINESS September 2026. said. The effort will continue over Earley pointed to improvement for DPS, the Education Achievement The firm’s broker was Brian the remainder of Emergency Man- in graduation rates, which went up Authority and Detroit’s charter Pleasant Ridge-based digital Piergentili, managing principal ager Darnell Earley’s term, which 6.5 percentage points from 2012-13 to schools on March 31. marketing and customer loyalty of the Southfield office of Chicago began in January after the former 2013-14, as a sign of progress but The coalition includes a broad program management firm Hel- real estate firm DTZ. Flint emergency manager replaced said plenty of work remains. spectrum of interests, including loWorld Inc. — the former ePrize The space will be designed by Jack Martin as the fourth EM in the “We must re-engineer the ser- the nonprofit, business, education Inc. — said it has signed an 11- architect Timothy Gawel of district, which vices that the dis- and labor communities. year lease for a new corporate Southfield-based Harley Ellis Dev- faces a nearly $170 trict provides to It is co-chaired by Tonya Allen, headquarters in Southfield. million budget schools and fami- president and CEO of the Detroit- ereaux Corp. We must The company is taking 43,000 deficit. lies to focus on based Skillman Foundation; the Rev. The 2.2 million-square-foot “ square feet over 2½ floors of the “Our objective is academic success, Wendell Anthony of Fellowship Southfield Town Center is owned re-engineer the Southfield Town Center, it said in to make major first and fore- Chapel and the Detroit branch of by New York City-based 601W a statement. change within 18 services that the most, and to en- the NAACP; David Hecker, presi- Cos. Transwestern handles leasing months because sure that this dent of AFT Michigan/AFL-CIO; John HelloWorld said it will relocate and management. Darnell Earley will district provides to progress not only Rakolta Jr., CEO of Detroit-based to the new space in the fourth HelloWorld was bought by be gone, but that continues, but ac- Walbridge Aldinger Co.; and Angela quarter. The new office allows it Connecticut-based private equity doesn’t mean our schools and celerates,” he said Reyes, executive director of the De- to add 20 percent more to its cur- firm Catterton Partners Corp. for an work stops in 18 in a statement. troit Hispanic Development Corp. rent staff of 300. estimated $100 million in August months,” Cameron families to focus on “We must also The Ross School and DPS effort is “The new office space is not 2012. said. “We are pret- take successful expected to help guide the imple- only necessary on a practical lev- HelloWorld revenue in 2012 ty serious about academic success, programs and mentation of Earley’s 10-point man- el as our team continues to grow, was $75 million, the most recent having this be a continue to repli- agement plan announced earlier but it also represents the incredi- numbers available for the pri- kind of ‘Holy cow, first and cate them.” this month. It focuses on addressing ble success HelloWorld has had vately-held company. how did they pull The program, academic competitiveness, cash over the last 10 years,” said Peter EPrize was launched as an on- that off?’ kind of foremost. the district and flow stability, higher education/col- DeNunzio, who was hired as Hel- line promotions and loyalty re- system.” ” Ross School said, laboration, governance, staff devel- loWorld’s CEO last year. wards management firm in 1999 Eventually, the Darnell Earley, emergency manager will complement opment, organizational develop- The company’s 10-year lease at by Josh Linkner, who sold the UM commitment work being done ment, special education, the 46,000-square-foot former firm in 2012. Catterton changed could include fac- by the Coalition for transportation, customer service Voigt-Pros’t brewery east of the name last year to HelloWorld. ulty from other UM schools offer- the Future of Detroit Schoolchildren, and a long-term funding strategy. Woodward Avenue near I-696 in The company has offices in ing insight into building mainte- which was announced in December Kirk Pinho: (313) 446-0412, kpin- Pleasant Ridge ends at the end of New York; Chicago; Los Angeles; nance, curriculum and other and expects to unveil its education [email protected]. Twitter: @kirkpin- 2015. HelloWorld is taking space Phoenix; Seattle; and Nashville, areas, Cameron said. system reform recommendations hoCDB in the 32-story 3000 Town Center Tenn.

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Page 34 CRAIN’S DETROIT BUSINESS March 23, 2015 Lofts: ‘The market here has filled whatever has been available’ ■ From Page 3 Market,’ and that turned out not to Demand for for-sale loft space in be true,” Heide said. Eastern Market has increased in re- Rocky Peanut Lofts sits above cent years as the central business the building that houses Supino’s, district and Midtown continue to Russell Street Deli and others. Thir- see occupancy rates around 98 per- ty years ago, the building needed cent, said Sabra Sanzotta, founder things like new electrical and wa- and broker of The Loft Warehouse, ter systems, and wall and window which primarily sells and leases replacements. However, the five lofts, condominiums and apart- retail tenants on the first floor did- ments from its office in FD Lofts at n’t generate enough revenue for Russell Street and Mack Avenue. the brothers to complete them. “There is almost nothing to buy So the 10,000 square feet of un- downtown,” she said. “This is about used second-floor space was con- the closest real estate to downtown verted into the lofts. that you can actually buy.” “We doubled the rentable Heide’s 34-unit FD Lofts is an ex- square footage,” Heide said. ample of that. Heide, owner of Ur- The Rocky Peanut Lofts, ranging ban Life Development LLC and York- from 800 square feet to 1,700 square shire Construction Co., is turning the feet, rented in 1985 for $600 to $1,200 rental units into loft-style condo- per month (about 70 to 75 cents per miniums, 22 of which have been square foot). The average loft rents sold and the remainder of which for $1.25 to $1.50 per square foot to- are under contract. day, Heide said. Rocco, who died in 2011, and Do- Since the project’s completion, several more loft developments minic, who died last year, left a last- have come online in Eastern Mar- ing impression on Eastern Market, ket, including E&B Brewery Lofts, said Heide, who also managed the Leland Lofts, FD Lofts, Detroit Candy Rocky Peanut Lofts until around Co. Lofts and 14-34 Howrani. 2001. Dan Carmody, president of East- “It was a catalyst for change in ern Market Corp., said the district that it was the beginning of the has about 120 loft units and that change at Eastern Market from strictly wholesale food and a little there is opportunity for another LARRY PEPLIN 400 to 500 residential units, includ- Of the 34 units in Robert Heide’s FD Lofts, 22 have been sold, and the remainder are under contract. bit of restaurants and introducing ing lofts, in the area along Gratiot the residential component,” he said. and the Dequindre Cut. gardless of the state of the econo- ant moves out of the 26-unit E&B take up occupancy, said Jim Pel- Kirk Pinho: (313) 446-0412, “The market here has filled my,” he said. Brewery Lofts at Winder and Or- lerito, owner of the lofts and De- [email protected]. Twitter: whatever has been available, re- One example: As soon as a ten- leans streets, another is ready to troit-based Pellerito Foods Inc. @kirkpinhoCDB

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March 23, 2015 CRAIN’S DETROIT BUSINESS Page 35

NATHAN SKID Proponents of Proposal 1 are stressing road repair funding and “safer roads” and not the complex state budget changes that would result if the measure passes in May. . Roads: A bumpy ride to the ballot ■ From Page 1 minder. measure efforts organized around because unions traditionally have The state Legislature punted on the state, but none have spent established get-out-the-vote appa- the issue, but Snyder said he be- much money to combat the referen- ratus available — something the lieves the ballot measure would fi- dum. One group, Citizens Against business sector is less adept. nally resolve the systemic issue of Middle Class Tax Increases, is orga- One ally absent from the pro- pothole-pocked, unsafe roads in nized by former Snyder adviser proposal campaign is the Michigan Michigan — and also build ade- John Yob, now CEO of Strategic Na- Chamber of Commerce. quate funds to maintain them. tional Consulting in Grand Rapids. While the odd bedfellows of De- “It’s a whole lot better than doing Yob’s anti-Prop 1 petition calls troit Chamber of Commerce, Business nothing,” he said, noting that re- the ballot measure “an unafford- Leaders for Michigan and Michigan placing or rebuilding a road is six able tax increase on struggling AFL-CIO have endorsed Prop 1, the times more expensive than repairs. families.” Michigan Chamber of Commerce And a multimedia campaign op- earlier this month said it will re- Uphill push posing the proposal created by the main neutral on the referendum. Coalition Against Higher Taxes and The state chamber polled its The challenge is selling to voters Special Interest Deals is backed by 6,700 members for their views and business groups a solution that Saginaw Township businessman about the ballot issue in January is complex and so far has only luke- Paul Mitchell. and February. The results forced warm support in polling. The polling The pro-Prop 1 initiative, mean- the organization, usually a Snyder support also evaporates when poll- while, has enough cash to run ally, to sit on the fence. sters elaborate on the series of pul- statewide broadcast ads. “We realized we were in a posi- ley and lever-like bills that go into The “Safe Roads Yes” effort had tion where there was not the level law if Prop 1 is approved. more than $3 million on hand at of consensus within our member- Further complicating the matter the last campaign finance report- ship to support or oppose the pro- is that the initial pro-Prop 1 team ing mile marker, on Feb. 10, ac- posal,” said Chamber CEO and of consultants quit at the end of cording to an analysis by President Richard Studley. January over undisclosed “philo- MLive.com. “The construction industry, es- sophical differences.” Roger Martin, partner at Martin pecially those in transportation in- The new team, led by Lansing- Waymire, said the campaign is frastructure, tended to be more based public relations firm Martin running three different 30-second supporting but not unanimous,” Waymire and Lansing-based GOP ad- pro-Prop 1 TV commercials on ca- he said. vertising agency WWP Strategies, is ble and network television in all Largely in opposition was retail, organizing the Prop 1 vote cam- state markets, along with radio especially those who sell expensive paign called “Safe Roads Yes.” spots in some markets. items such as vehicles, boats, jewel- He declined to disclose current The effort concentrates on the ry and appliances, which expressed campaign financials, but said road repair funding aspect of the worry about the sales tax increase spending has been on research, ballot measure rather than ex- on their businesses, Studley said. plaining the complex related pack- campaign consulting services, ad The state’s last sales tax in- age of changes. production and placement. crease was from 4 percent to 6 per- “The message that resonates As for Snyder’s road tour, he met cent in 1994. with everyone is safer roads,” Sny- with metro Detroit news outlets last The state chamber’s neutral der said. week, and made speeches to differ- stance is significant not only in That’s a slight departure from the ent groups, in support of Prop 1. philosophical discussions but be- original campaign, led by Lansing- “I just have a bigger soapbox,” cause it represents a potential finan- based public relations and nonpar- he said. “I may go fill a few pot- cial loss for the pro-Prop 1 coalition. tisan political consulting firm Tr- holes myself.” uscott Rossman LLC, which had a When questioned about the com- “Historically, when the cham- two-pronged strategy of selling the plexity of the plan, the governor ber takes a position, it committed referendum to voters as both a said a simple increase in Michi- a significant amount of human roads and schools measure. gan’s 19-cent gasoline tax is im- and financial resources to that ef- A series of bills attached to the practical because it would make fort,” Studley said. measure would drop the sales tax the state out of line with the rest of For Prop 1, he said, the chamber on fuel and ensure that school aid the nation’s fuel prices. will only answer questions its mem- fund revenue goes only to K-12 dis- The coalition also has an ally in bers have. tricts or community colleges — not Mother Nature, Snyder said, be- The issue does have some retail universities. cause the spring pothole season support: The Small Business Associ- Transportation funding would has the roads on voters’ minds. ation of Michigan has endorsed it. rise by about $1.2 billion a year, giv- “It represents a bipartisan coming a big boost to the $2 billion now promise by lawmakers, and given collected through fuel taxes and li- Seeking supporters the urgency of our road funding cense plate fees. And $11.8 billion in The two-term Republican gover- needs, it’s not prudent to go back to annual school funding would jump nor is looking for help from a non- the drawing table for other op- by at least $300 million, the equiva- traditional ally: organized labor. tions,” SBAM Board Chair Bonnie lent of $200 per student. Spring votes in nonpresidential Fowler said in a Feb. 9 statement. The proposal would also yield an election years traditionally have “Michigan needs to fix its roads additional $95 million from yearly low voter turnout, which Snyder and bridges, and Prop 1 will do the registration fees on cars and heavy acknowledged means that a rela- job.” trucks, with fees for heavy trucks tively small percentage of voters Bill Shea: (313) 446-1626, making up about half of that total. will swing the vote. Labor support [email protected]. Twitter: There are a number of anti-ballot is critical for that reason, he said, @Bill_Shea19 20150323-NEWS--0036-NAT-CCI-CD_-- 3/20/2015 4:57 PM Page 1

Page 36 CRAIN’S DETROIT BUSINESS March 23, 2015 Care : A more direct approach – an Obamacare alternative? ■ From Page 3 Township, heard about Blanchard come mainstream in Michigan — ical homes. Olympia Medical Services in Livonia, shortfall of primary care physicians and Huotari and the concept of di- and meet the insurance mandate Blue Cross officials declined to said he expects some physicians to that currently exist,” Billi said. rect primary care, and lightblubs in the Affordable Care Act — at comment specifically but said it try direct primary care, especially For example, Billi said, the aver- went on for the former health care least one of two things are needed. doesn’t offer this type of plan, but if insurers offer a wraparound pol- age internist treats up to 3,000 pa- IT executive who said he ran for of- One, either a health insurance it continues to evaluate it. icy with it. tients a year. But concierge doctors fice in 2010 because of his opposi- company needs to offer a high-de- Joan Budden, chief marketing “My brother in Scottsdale is devel- advertise themselves as treating tion to the Affordable Care Act. ductible, wraparound policy with a officer with Priority Health, said the oping a hybrid practice where he is 300 to 500 per year, he said. “This is the free-market solution direct primary care provision. Or Grand Rapids-based insurer also going to concierge medicine,” Bickle “Who is going to care for the oth- and the replacement for Oba- two, self-insured employers in has no plans to offer a wraparound said. “For those who want to drop er 90 percent of patients?” said Bil- macare,” said Colbeck, who also Michigan offer direct primary care policy for direct primary care, but $2,000, we will be available to you.” li, noting he knows of physicians voted against Healthy Michigan in their health benefits package and it continues to evaluate it. Matt McCord, M.D., an anesthe- in Florida who have switched to Medicaid, which narrowly was ap- also offer the insurance coverage. “We are concerned that con- siologist in Ann Arbor and secre- concierge medicine and have noti- proved in 2013 and covers more Under Section 1301 of Oba- sumers are misled into the type of tary with Docs4PatientCare.org, fied dozens of their patients they than 550,000 mostly formerly unin- macare, direct primary care is al- coverage they have” if they just said he supports the direct prima- must pay the extra fee or find a sured Michiganders. lowed to compete on health insur- purchase a direct primary care ry care model because it eases the new primary care doctor. Late last fall, Colbeck won pas- ance exchanges when combined package “when they need a com- administrative burden on physi- “While this solves a lot of prob- sage of Senate Bill 1033 — and in with a qualified high-deductible prehensive policy,” Budden said. cians while decreasing costs and lems for the individual doctor (low January, Gov. plan and a “qualified direct prima- Budden said direct primary care increasing patients’ access to med- reimbursement for valuable face- Rick Snyder ry care medical home plan.” is not insurance. “What if they ical care. to-face extended contact and care signed it — that The insurance plan could work need surgery or something outside “It correctly aligns the incen- coordination) it is not a scalable gives the green with direct primary care like this: of primary care office?” she said. tives for care because it engages model for the nation given the cur- light for doctors A health insurer would offer a “Why mislead the members about the patient more in the care mod- rent shortage of primary care.” to offer direct high deductible policy with direct that? We are trying to make health el,” McCord said. “We have a very Tom Valenti, founding partner of primary care primary care. A member would care easier; not more complicat- fragmented model now. The pri- Detroit-based Forthright Health Man- without fear of then select a direct primary care ed.” mary care doctor can organize agement LLC, a consulting firm that state insurance provider for the patient to exclu- Mike Williams, M.D., president care and do it in the most efficient advocates for direct primary care, department reg- sively see for primary care. Then of Bingham-based United Physicians way.” said telehealth services and other ulation. Some the insurer would reimburse the Inc., said direct primary care has a McCord said many physicians practice efficiencies could increase Colbeck states have ac- direct primary care provider for a place in the market but is expen- are worried about dropping their the number of patients handled by cused doctors who sell monthly negotiated monthly payment. sive for most people at $1,200 to insurance-based primary care direct primary care practitioners. primary care plans as selling in- But Rick Murdock, executive di- $2,400 per year unless a high-de- model because they also want to Over time, Valenti said, the surance without a license. rector of Michigan Association of ductible policy is affordable. continue care of Medicare and number of physicians choosing “Passing the bill was the first Health Plans, said the type of high- “It is nice for physicians if they Medicaid patients. primary care could increase be- step,” he said. “I want patients, deductible, or wraparound, insur- only see 500 patients a year,” Jack Billi, M.D., chair of quality, cause they might like the direct doctors and insurance companies ance plan envisioned by direct pri- Williams said. “The normal panel is efficiency and economics with the primary care practice style. to know about (direct primary mary care supporters doesn’t exist. 2,000 to 2,500 patients per physi- Michigan State “As new technology comes on care) and get on board.” “The bill (SB 1033) by itself will cian.” Medical Society, board, (direct primary care) physi- Blanchard, who also views di- not permit individuals to be com- Williams said it makes more said the medical cians could take care of 5,000 pa- rect primary care as an alternative pliant with ACA and the require- sense for a self-insured employer society doesn’t tients each and manage a team of to Obamacare and traditional ment for insurance coverage,” to offer a high-deductible policy to have a position dietitians, nutritionists” and ad- health insurance, said direct pri- Murdock said. “There may be one its employees and strike a contract on direct prima- vanced practice nurses, Valenti mary care has the promise to low- in the future.” with a direct primary care ry care other said. er health care costs. Murdock said negotiations are provider for a monthly fee. than it has de- But Billi said improving elec- For example, a recent study by ongoing with the Michigan Depart- “Companies are trying to reduce termined it is tronic health records, office effi- Seattle-based Qliance Medical Man- ment of Financial and Insurance Ser- their overall health care spend, not insurance. ciencies and reimbursement can agement LLC found a 20 percent re- “We have dis- vices that may “allow development and maybe by partnering with an Billi alleviate more problems for prima- duction in health care costs by em- of wraparound packages” and oth- insurer this can work,” he said. cussed it. I am ry care physicians. ployer-sponsored health plans that er currently prohibited products But Williams said he is not sure personally skeptical,” said Billi, “I am not opposed to trying also adopted direct physician care. for HMOs. physicians in Southeast Michigan who also is associate vice president things, studying them and modify- Hundreds of physicians who One source said Blue Cross Blue are ready. He said there would be for medical affairs at the University of ing them,” he said. “The best strat- practice direct primary care are in Shield of Michigan will likely not major resistance from hospitals Michigan Health System in Ann Ar- egy going forward is population some 24 states, according to the offer such an insurance package and insurers. bor. health and the efforts we are mak- American Academy of Private Physi- because direct primary care does “It does free you from the chains “If many of our primary care ing to coordinate care.” cians. not fit well with its efforts to en- of regulations, but the insurance physicians switch to concierge med- Jay Greene: (313) 446-0325, But for Colbeck and Blanchard’s courage primary care physicians model is very strong,” he said. icine or direct primary care, this [email protected]. Twitter: @jay- dream of direct primary care to be- to develop patient-centered med- Randy Bickle, D.O., CEO of will cause a huge worsening of the bgreene

Selfridge: Plan to move A-10s puts base in a holding pattern ■ From Page 1 nounced a plan to move 18 A-10s to for new KC-135s would likely mean and fighter aircraft have been sta- tratively on it.” ington Institute in Arlington, Va., and backup inventory on bases in oth- a net loss of about 300 jobs, includ- tioned at the facility since the base’s The base’s fleet of A-10s and their a defense industry analyst, is con- er states (Arizona, Nevada and ing 100 full time and 200 part time. inaugural flight in July 1917. The airmen were last deployed overseas vinced that when a defense autho- Georgia) and said it would consid- “Our number one mission at Sel- move to an all-refueler fleet will put to Kandahar, Afghanistan, in 2011 rization bill for fiscal 2016 gets intro- er converting another 18 later this fridge is to provide trained airmen Selfridge and the Wing in the com- and 2012. The unit and the current duced, it will include another year. Backup inventory aircraft and properly maintained aircraft pany of McConnell Air Force Base KC-135 fleet at Selfridge have also measure from Congress that saves act as replacements for others in to serve our state and nation. We near Wichita, Kan., which flies only been placed on notice for an over- the A-10 from retirement, just as in use that become unserviceable — hope to be able to continue doing KC-135s. The 171st Aerial Refueling seas deployment later in 2015, but years past. freeing up some accompanying that with the A-10 for the foresee- Wing is also KC-135s only at Colum- Carroll declined to elaborate on “You’ve got two things that you personnel to be retrained or reas- able future,” Brig. Gen. John bus Air Force Base in Ohio. where or when that would be. can count on here in the defense signed elsewhere. Slocum, commander of the 127th But Congress still needs to ap- Military leaders have previously bill,” Thompson said. “One is at But the president’s proposed de- Wing of the Michigan Air National prove the proposed change, when a said preserving the A-10 fleet could least until a new debt limit mea- fense budget for fiscal 2016, which Guard at Selfridge, said in a state- 2016 version of the NDAA Act gets delay initial operating capability sure is considered, we are stuck begins in October, adopts a plan to ment to Crain’s. introduced. In the meantime, base for the F-35, currently scheduled within Budget (Control Act of 2011) divest more than 250 A-10s in nine “The bottom line is, however, officials are waiting on direction for December 2016 for the Air caps. states and overseas between next that we have the people … who are from Washington, said Selfridge Force. That’s because the new air- “The other is, we are not going year and 2019, including all 18 fight- ready to take on any flying mis- public affairs chief Penelope Car- craft needs 1,100 “maintainers” to really be retiring the A-10. Most ers at Selfridge in fiscal 2017. That sion that our national leaders roll. and expects to find them largely by of the legislators don’t care greatly would be offset the same year by need. Give us a mission and we “Currently we’re not doing reallocating personnel from older one way or another about A-10, but adding eight new aerial refueling will excel at it. The 127th Wing is anything administratively with planes like A-10. those who do, care a whole lot. tankers, KC-135s, bringing Self- committed to our airmen and will that proposal yet, because we’re Lockheed Martin Corp., the prime “So it’s like a number of debates ridge’s total fleet to 16. work tirelessly to minimize im- preparing for (an overseas) de- contractor on the F-35, has said ranging from abortion to gun con- Selfridge officials estimate about pacts to our hometown … work- ployment of the A-10 later this previously to Crain’s the F-35 sup- trol — a minority cares deeply, 180 full-time jobs and 455 part-time force.” year,” she said. “And we would ports at least 22 companies and and the energy is on their side.” positions are directly tied to flight, Selfridge was first commissioned have to wait for the NDAA for more than 2,000 “direct and indi- Chad Halcom: (313) 446-6796, operation and maintenance of its A- as an aerial training camp when the 2016 to become law before we rect” jobs in Michigan. [email protected]. Twitter: 10s. But the proposed swap of A-10s United States entered World War I, know if we need to act adminis- Loren Thompson, COO of the Lex- @chadhalcom 20150323-NEWS--0037-NAT-CCI-CD_-- 3/20/2015 5:18 PM Page 1

March 23, 2015 CRAIN’S DETROIT BUSINESS Page 37 Kahlo: Exhibit buzz keeps businesses humming www.crainsdetroit.com ■ From Page 1 EDITOR-IN-CHIEF Keith E. Crain GROUP PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] Shops near the museum in De- ASSOCIATE PUBLISHER Marla Wise, (313) 446- troit’s Midtown neighborhood are 6032 or [email protected] EXECUTIVE EDITOR Cindy Goodaker, (313) 446- also seeing an uptick in business, 0460 or [email protected] as visitors take to the streets to ex- MANAGING EDITOR Jennette Smith, (313) 446- plore the neighborhood Rivera and 1622 or [email protected] DIRECTOR, DIGITAL STRATEGY Nancy Hanus, Kahlo called home during their (313) 446-1621 or [email protected] time in Detroit in 1932-1933. MANAGING EDITOR/CUSTOM AND SPECIAL PROJECTS Daniel Duggan, (313) 446-0414 or “Throughout our planning [email protected] SENIOR EDITOR/DESIGN Bob Allen, (313) 446- process, we knew this exhibition ... 0344 or [email protected] was an opportunity for us to en- SENIOR EDITOR Gary Piatek, (313) 446-0357 or gage our community in a way [email protected] COURTESY OF DETROIT INSTITUTE OF ARTS WEB EDITOR Kristin Bull, (313) 446-1608 or we’ve never done before,” said Clockwise from left: “Frida and Diego [email protected] Kathryn Dimond, director, com- RESEARCH AND DATA EDITOR Sonya Hill, (313) Rivera,” Kahlo, 1931, oil on canvas; 446-0402 or [email protected] munity relations at the DIA. “Self Portrait with Monkey,” Kahlo, WEB PRODUCER Norman Witte III, (313) 446- “The buzz for this has been some- 1945; “Window Display on a Street in 6059, [email protected] EDITORIAL SUPPORT (313) 446-0419; YahNica thing we have not heard before.” Detroit,” Kahlo, 1932, oil on metal; Crawford, (313) 446-0329 “The Making of a Motor,” Rivera, NEWSROOM (313) 446-0329, FAX (313) 446- 1932, charcoal on paper 1687 TIP LINE (313) 446-6766 Broad interest REPORTERS La Feria has also seen an uptick Jay Greene, senior reporter: Covers health care, The DIA has set attendance pro- insurance, energy utilities and the environment. jections for the Rivera and Kahlo in high school groups coming for (313) 446-0325 or [email protected] lunch in tandem with field trips to Amy Haimerl, entrepreneurship editor: Covers exhibit at 200,000 visitors, Dimond entrepreneurship and city of Detroit. (313) 446- said. Exhibit tickets are $12-$19 the DIA to see the new exhibition, 0416 or [email protected] apiece. he said, and it’s created some fixed Chad Halcom: Covers litigation and the defense menus for student groups in re- industry. (313) 446-6796 or [email protected] But it’s too early to estimate the Tom Henderson: Covers banking, finance, sponse. technology and biotechnology. (313) 446-0337 or projected revenue the exhibition “It’s refreshing and neat for us to [email protected] will bring the DIA during its 17- Kirk Pinho: Covers real estate, higher education, see that the exhibit brings people Oakland and Macomb counties. (313) 446-0412 or week run that launched last week from all over the state and we see [email protected] and runs through July 12. If early Bill Shea, enterprise editor: Covers media, that ripple effect,” Khalil said. advertising and marketing, the business of sports, attendance during its first week is “Hopefully, we’re creating a lot of re- and transportation. (313) 446-1626 or any indication, it could outpace [email protected] turn customers.” Dustin Walsh: Covers the business of law, auto figures for the last two major ex- The new pa- suppliers, manufacturing and steel. (313) 446- hibits at the museum in recent at three area venues — the Macomb tures of the opera at various com- 6042 or [email protected] trons coming in Sherri Welch, senior reporter: Covers nonprofits, years, the DIA said. Center for the Performing Arts in Clin- munity locations. Those have also tandem with the services, retail and hospitality. (313) 446-1694 or Four days into the exhibit’s run ton Township, the Berman Center for helped to fuel interest and curiosi- [email protected] DIA exhibit, last week, the DIA was seeing dou- Performing Arts in West Bloomfield ty in the opera and the exhibit, he ADVERTISING along with a ble the number of people who came Township and the DIA’s Detroit Film said. MOT put packages together SALES INQUIRIES (313) 446-6052; FAX (313) new patio the 393-0997 the first week to see its last two Theatre — to the N’Namdi Center for to transport people from Ann Ar- restaurant plans SALES MANAGER Tammy Rokowski blockbuster exhibits: “Rembrandt Contemporary Art’s contemporary bor and Flint areas to the exhibit, a to debut in the SENIOR ACCOUNT EXECUTIVE: Matthew J. and the Face of Jesus,” which ran American art exhibition; lectures at local restaurant and a perfor- Langan spring “could re- November 2011 to February 2012 the Ford Resource and Engagement mance of the opera, and all of the ADVERTISING SALES Christine Galasso, Joe ally blow up our Miller, Sarah Stachowicz and drew a total of 116,392 people; Center in Detroit’s Mexican Town; tickets — a busload from each city CLASSIFIED SALES MANAGER Angela Schutte, Khalil business in the and “Fabergé: The Rise and Fall,” Detroit Experience Factory tours of the — sold out, Brown said. (313) 446-6051 city highlighting the artists’ time By focusing on the broader most positive way,” he said. CLASSIFIED SALES Lynn Calcaterra, (313) 446- an exhibit that showcased imperi- 6086 al Russian treasures made by the here; a special Detroit Symphony Or- themes, in this case Kahlo, “it’s a AUDIENCE DEVELOPMENT DIRECTOR Eric Cedo House of Fabergé, which ran from chestra performance; the creation of way to introduce new people to the EVENTS MANAGER Kacey Anderson Retail tie-ins CREATIVE SERVICES DIRECTOR Pierrette Dagg October 2012 to January 2013 and a giant puppet of Rivera with Matrix art form, to whet the appetite and encourage them to take notice of Just across Kirby from the DIA is SENIOR ART DIRECTOR Sylvia Kolaski attracted just shy of 87,000 people. Puppet Theater; and a Michigan Sci- MARKETING COORDINATOR Ariel Black the Park Shelton building. Former- The DIA is marketing the Rivera ence Center exhibit on the scientific other things happening in the SPECIAL PROJECTS COORDINATOR Keenan ly known as the Wardell Apartment Covington and Kahlo exhibition in other discoveries that inspired the De- opera house,” he said. troit industry murals. A large number of the people Hotel, it was home to Rivera and SALES SUPPORT Suzanne Janik, YahNica Crawford Michigan markets, including Kahlo during their time in Detroit. EDITORIAL ASSISTANT Nancy Powers Grand Rapids and Flint, and it’s “This really drives people to look who’ve come to see “Frida” at the PRODUCTION MANAGER Wendy Kobylarz Macomb Center for the Perform- Two of the building’s tenants, the PRODUCTION SUPERVISOR Andrew Spanos running print and radio ads in out- at things to do and resources we ing Arts said it was their first time Peacock Room, featuring special oc- CUSTOMER SERVICE of-state markets like Chicago and have in our community already,” attending an opera. casion apparel for women, and Frida, MAIN NUMBER: Call (877) 824-9374 Toronto, said Jill Proctor, market- Dimond said. “They may already go to the (Ford) River Rouge plant, but “And several have expressed in- offering everyday and special occa- or [email protected] ing manager for special exhibitions. sion clothing for women in bright they may not know Diego Rivera terest in coming to the opera house SUBSCRIPTIONS $59 one year, $98 two years. The campaign is among the colors reminis- Out of state, $79 one year, $138 for two years. did his sketches there. It’s another to experience the full scale of what largest the museum has ever done cent of Kahlo’s Outside U.S.A., add $48 per year to out-of-state entry point for them.” MOT has to offer,” Brown said. rate for surface mail. Call (313) 446-0450 or and also includes national media own style, saw a (877) 824-9374. “If our cultural organizations outreach, she said. Prior to the ex- very noticeable SINGLE COPIES: (877) 824-9374 hibition’s opening,the DIA hosted work together, we touch 92 percent REPRINTS: (212) 210-0750; Food and drink bump in foot traf- or Alicia Samuel at [email protected] national reporters and art critics, of Michigan families on a regular Spurred by an invitation from fic last week and TO FIND A DATE A STORY WAS PUBLISHED: which spurred stories in national basis,” said Vincent Paul, artistic (313) 446-0406 or e-mail [email protected] the DIA to do so, a dozen area even in the week publications including The Boston director and president of the Music CRAIN’S DETROIT BUSINESS IS PUBLISHED BY restaurants created special drinks or so before the CRAIN COMMUNICATIONS INC. Globe The Washington Post, Hall Center for the Performing Arts. , the and menu items inspired by exhibition CHAIRMAN Keith E. Crain Carlos Santana will perform at PRESIDENT Rance Crain online ArtNet and Conde Nast Rivera and Kahlo, their Mexican opened, said Traveler, Proctor said. Music Hall April 4 as that venue’s TREASURER Mary Kay Crain heritage and art. owner Rachel Executive Vice President/Operations tie-in to the Latino theme. Lutz William A. Morrow Last year, as it was planning the “Our goal was to weave (the ex- Lutz. “Cus- And getting the patrons of each Executive Vice President/Director of Strategic exhibition, the DIA invited local hibition) into the rest of life here tomers have been talking about this Operations Chris Crain arts and cultural groups to come art form to explore other art forms in the city,” Proctor said. “It helps for weeks and months,” she said. Executive Vice President/Director of Corporate hear about the upcoming exhibit is inherent to each organization’s Operations KC Crain us to get the word out of the exhibi- Among the customers coming in Vice President/Production & Manufacturing and to create related program- mission to break down cultural tion and helps these restaurants last week were visitors from Eng- Dave Kamis ming. The idea, DIA Director Gra- barriers, Paul said. Chief Financial Officer get recognized.” land, Italy, France, Germany and Thomas Stevens ham Beal said at the time, was to “Frida” the opera had nearly Located five blocks from the DIA, Mexico and all over the U.S., Lutz Chief Information Officer help attract people from other sold out for all six performances as said. Anthony DiPonio La Feria is featuring a dish com- G.D. Crain Jr. Founder (1885-1973) parts of the country to Detroit by of late last week, Wayne Brown, prised of red-skinned potatoes, red Despite Woodward Avenue be- Mrs. G.D. Crain Jr. Chairman (1911-1996) providing complementary pro- president and CEO of the Michi- bell pepper and garlic salsa. And a ing under construction, year to EDITORIAL & BUSINESS OFFICES: gramming they could attend, in ad- 1155 Gratiot Ave., Detroit MI 48207-2732; gan Opera Theatre, said. MOT re- featured cocktail is the “La Pasión date, the Peacock Room and Frida (313) 446-6000 dition to the exhibit. cently added a sixth performance De Frida” cocktail with Corralejo — which in October replaced Emer- Cable address: TWX 248-221-5122 AUTNEW DET But local arts groups say the op- of the opera to meet demand. ald, a popup gift store in the same CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 Añejo tequila, tamarind, freshly is published weekly, except for a special issue the portunity to appeal to new audi- About 4,371 tickets had been squeezed lime and lemon juice and location — have seen a nearly 50- third week of October, and no issue the fourth ences brings a value of its own. week of December by Crain Communications Inc. sold to the opera performances as maraschino water. The two pay percent increase in revenue vs. the at 1155 Gratiot Ave., Detroit MI 48207-2732. of late last week, bringing in just homage to red, the color of passion, same period of last year, she said. Periodicals postage paid at Detroit, MI and additional mailing offices. POSTMASTER: Send Ancillary events under $235,000, surpassing MOT’s communism and love — and a color Everyone who knows of the fa- address changes to CRAIN’S DETROIT BUSINESS, $200,000 revenue goal, Brown said. equally revered in Spain. mous artist couple “loves them, Circulation Department, P.O. Box 07925, Detroit, MI 48207-9732. GST # 136760444. Printed in Nearly two dozen local arts and The fact that MOT’s founder and Just a week into the exhibit, the and everyone who doesn’t know U.S.A. cultural groups are offering pro- music director David Dichiera has restaurant has served guests from are intrigued once they hear Entire contents copyright 2015 by Crain Communications Inc. All rights reserved. grams related to the Rivera and wanted to mount that opera for Grand Haven, Flint, Port Huron, more,” Lutz said. Reproduction or use of editorial content in any Kahlo exhibit. some time tied in extraordinarily Lansing and Ann Arbor, in town to Sherri Welch: (313) 446-1694, manner without permission is strictly prohibited. They range from the Michigan with the DIA’s exhibit, Brown said. see the DIA exhibition, said co- [email protected]. Twitter: Opera Theatre’s “Frida” performed MOT is also performing over- owner Elias Khalil. @SherriWelch 20150323-NEWS--0038-NAT-CCI-CD_-- 3/20/2015 5:18 PM Page 1

Page 38 CRAIN’S DETROIT BUSINESS March 23, 2015 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF MARCH 14-20

Among the items: a strip of thick-cut bacon topped Denso to add 100 RONALD’S NEW HOME FOR KIDS with three deviled eggs and Jewish center fried jalapenos and pork rinds with cheese dip. Oth- jobs in $53.6M ers include the Chips-n-Dip Dog, a hot dog topped with expansion wants folks Lay’s potato chips and a house-made onion dip, and enso Manufacturing the Coney Quesadilla, a Michigan Inc. will coney dog, sauce and D add 100 jobs in a onions in a grilled tortilla. $53.6 million expansion of to go green The new items are cre- its auto components manu- ations of the Tigers’ con- facturing operations in Bat- ome Clean, Go The network said Gage cessionaire, Sportservice, a tle Creek, the Battle Creek Green! will write for its website unit of Buffalo-based Enquirer reported. C No, that’s not “throughout the summer Delaware North Cos. The Michigan Economic De- COURTESY OF RONALD MCDONALD HOUSE CHARITIES OF SOUTHEASTERN MICHIGAN some new cheer for Michi- and hopefully well into Oc- velopment Corp. announced Ronald McDonald House Charities of Southeastern Michigan gan State. tober.” Tavis Smiley show visits the expansion plans, saying has a new home. The facility moved from the DMC Children’s It’s a year-round commu- the company has been Hospital of Michigan into new, larger space on the second nity recycling program Detroit this week awarded $640,000 in state floor of the former Hutzel Hospital in Detroit; it opens this that the Jewish Community State Senate plan would funding through a business week. The new site is designed with bright colors and natural Late-night PBS talk host light throughout. For a sneak peek at the space, see Center of Metropolitan Detroit development performance- revive school bake sales Tavis Smiley will be in De- crainsdetroit.com/photo. has launched to raise mon- based grant. Brownies and doughnuts troit this week to film five ey for various community could be back in school episodes of his show. based company. DTE has Sec, an Ann Arbor auto cy- center projects through the bake sales under a measure Confirmed guests for the not replaced Hall, 55, but bersecurity supplier, Auto- recycling of electronic de- ON THE MOVE the Michigan Senate ap- program include Mayor said it is dividing up her motive News reported. vices and components. proved last week that Mike Duggan, U.S. Bank- Ⅲ Brian Whiston, superin- work within its public af- Terms were not disclosed. Devices that will be ac- would let districts raise ruptcy tendent of Dearborn Public fairs organization. Ⅲ Detroit Medical Center cepted and recycled for money by holding events Judge Schools since 2008, was Ⅲ Ken Marblestone, for- could go to trial this fall in cash by Livonia-based currently banned because Steven named Michigan’s top edu- mer president of Charter a class-action lawsuit on be- ElectroCycle include com- they don’t meet federal nu- Rhodes and cation official. Whiston, 53, One’s Ohio and Michigan half of metro Detroit hospi- puters, cellphones, LCD trition guidelines, The As- Skillman a former legislative aide operations for Rhode Is- tal nurses over alleged monitors, speakers, VCRs sociated Press reports. Foundation and lobbyist, will succeed land-based RBS Citizens Fi- wage collusion after the Mike Flanagan and DVD players, mi- Advocates for the change CEO Tonya , retiring as nancial Group, joined South- hospital lost an appeals state superintendent this crowaves, hard drives, say the guidelines have cre- Allen. field-based Cascade Partners court request in the court summer after nine years. docking stations, coffee ma- ated a confusing list of what The show LLC as a managing director case. Attorneys for more Ⅲ Nick Khouri, senior vice chines, laptops, keyboards, can and can’t be sold during will be and will run its new Cleve- than 20,000 nurses plan to Smiley president of corporate af- cables, printers, fax ma- school, and the lack of bake filmed at land office. ask a U.S. District Court fairs at Detroit-based DTE chines, copiers, servers, sales has hurt students’ the Community Arts Audi- judge to set a trial date. Energy Co., was named modems and routers. ability to raise funds for ex- torium at Wayne State Uni- Ⅲ The Motor City Gas mi- Michigan treasurer by Gov. OMPANY NEWS The program will not ac- tracurricular activities. versity. To check ticket C crodistillery opened in Roy- Rick Snyder. Khouri, 57, suc- cept refrigerators, alkaline Bill sponsor Sen. Patrick availability, see dptv.org. Ⅲ Detroit-based Henry al Oak. Meanwhile, Texas- ceeds Kevin Clinton, leaving based Twin Peaks Restaurant batteries, tube or projec- Colbeck, R-Canton Town- The focus of the week Ford Health System returned for an expected job in the opened its first Michigan tion TVs, air conditioners ship, said the bill allows for will include examining the to a net surplus in its fiscal insurance industry. location, in Madison or lightbulbs. more local control. School city’s downtown resur- 2014 thanks to rising patient Ⅲ Deputy legal counsel Va- Heights, and the first Kate Items may be dropped off districts would be able to gence, the challenges facing revenue, despite a decline lerie Brader was named to Spade New York outlet store at the D. Dan & Betty Kahn allow their schools up to in inpatient days, and rising long-time residents of the head the new Michigan in Michigan debuted at Building at the Applebaum three fundraisers per week premium revenue from in- city, the Arab-American Agency for Energy. Brader, 38, Great Lakes Crossing Outlets Jewish Community Campus at that don’t meet federal nu- surance operations. The community in Dearborn, is a former chief energy poli- in Auburn Hills. 6600 W. Maple Road in West not-for-profit six-hospital trition guidelines, but they the arts community and ed- cy officer at the Michigan Eco- Bloomfield Township, or at system reported a net sur- also could choose to keep ucation. nomic Development Corp. the Jimmy Prentis Morris plus of $27.8 million on $4.7 the number at zero. Ⅲ Aaron Dworkin plans to OTHER NEWS Building at the Taubman Jew- “This is a common-sense billion in revenue, an im- leave Detroit-based Sphinx Or- provement from a deficit of ish Community Campus at approach to it,” he said. BITS & PIECES Ⅲ Site plans for the rede- ganization, the music educa- $12 million on 2013 revenue 15110 W. 10 Mile Road in Senate Bill 109 now goes velopment of the former Ⅲ The Michigan Hispanic tion organization he founded of $4.5 billion. Revenue was Oak Park. to the House for considera- Michigan State Fairgrounds Chamber of 19 years ago, in July to be- up 3 percent for the 12 tion. could be submitted to the Commerce come dean of the University of months ended Dec. 31. Detroit Planning Commission FSD hires ex-News writer has elected Michigan School of Music, The- Ⅲ Taylor-based Masco this week. Developers be- New on Comerica menu: JoAnn atre & Dance. Dworkin, 44, Corp. expects to launch Top- hind the $160 million to cover Tigers on Web Chavez, vice will leave Sphinx in the Build Corp., a spinout public mixed-use project met with Tom Gage, the longtime Bacon topped with eggs president hands of his wife, Afa company, by midyear. Top- the Fairgrounds Advisory Detroit Comerica Park, blissful- and chief Sadykhly Dworkin, who is ex- Build, to comprise Masco’s Committee to discuss plans Tigers ly unencumbered by feder- tax officer ecutive and artistic director current installation compa- for the 157-acre site. writer for al nutrition guidelines, is at Detroit- and will become president nies Masco Contractor Ser- Ⅲ The Henry Ford has ac- and artistic director. vices of Daytona Beach, Fla., The Detroit rolling out a number of Chavez based DTE quired “Mathematica,” News who new calorie-filled items Energy Co., Ⅲ Barbara Yastine, 55, is and Service Partners LLC of which conveys the world of recently re- this spring during the De- as chairman of its board of stepping down in June as Glen Allen, Va., will be numbers and mathematics tired after troit Tigers season. directors. CEO of the banking unit at headquartered in Florida. through interactivity, as a being re- Ally Financial Inc., said the Ⅲ Bloomfield Hills-based permanent exhibition set moved Detroit-based auto lender, Taubman Centers Inc. is for display at the Dearborn from the Bloomberg reported. preparing to open a mall in museum in 2016. Gage Nord- beat, is now Ⅲ Darrious Hilmon, a Chica- Puerto Rico March 26. Ⅲ The day after Crain’s strom and Saks Fifth Avenue covering the club for go Urban League executive reported on the 5811 Gray- will anchor the $475 million FoxSportsDetroit.com, the re- and Detroit native, will join ton St. house that was the San Juan project. gional sports network said Ferndale-based Affirmations first home purchased in the Ⅲ Detroit’s Dan Gilbert is Friday. Lesbian and Gay Community Detroit Land Bank Authority’s among the investors in Bru- Gage, who covered the Center this week as execu- auction to be rehabbed and in Sports Capital, the New tive director. Hilmon, 46, put up for sale, the dwelling Tigers for The News for 36 York-based media, sports sold for its $86,500 asking years, was elected 2015 win- succeeds interim executive and marketing company price, its owner said. ner of the annual J.G. Tay- director Jon Fitzgerald, chief founded last year by former lor Spink Award, the Base- administrative officer. Ⅲ IMG Sports and Entertain- ball Writers’ Association of Karla Hall, who helped ment executive George Pyne, OBITUARIES America’s top honor. He’ll direct DTE Energy Co.’s cor- Bloomberg reported. receive it in July, during porate giving through the Ⅲ Tom LaSorda, former Ⅲ Edith Kaufman, long- the National Baseball Hall of COURTESY OF SPORTSERVICE DTE Energy Foundation for CEO of Chrysler Corp. and time owner of The Poster Fame and Museum’s induc- The Detroit Tigers will sell a calorie-heavy bacon and deviled several years before becom- Fisker Automotive Inc., said Gallery in Detroit’s Fisher tion weekend in Cooper- eggs concession item this season in one of the new menu items ing civic affairs manager in his venture capital fund In- Building, died March 12. She stown, N.Y. at Comerica Park. 2013, has left the Detroit- cWell has invested in Tower- was 80. DBpageAD_DBpageAD.qxd 3/10/2015 2:44 PM Page 1

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Call 877-633-1102 or visit sprint.com/dothemath to take advantage of this limited time off er.

*Savings based on well qualified customer with new-line activation or eligible upgrade. Comparison based on publicly-available information as of 02/13/15 between Sprint Lease 24 mo. contract to 2-year contract and device pricing on Verizon More Everything Plan for 10 lines using Samsung Galaxy S5. Upfront device cost: ($0/ Sprint vs. $1,999.90/Verizon. Monthly phone cost: $200/ Sprint vs. $0/Verizon excluding taxes and Sprint surcharges. Limited time off er $5 / mo. service credit x 10 lines: ($50) month Sprint vs. N/A Verizon for new-line or activation or eligible upgrade up to 24 months of lease term, provided the device remains active. 20 GB Shared Data: $90/Sprint vs. $140/Verizon. Monthly access with Unlimited talk + Text While on network: $150/Sprint vs $400/Verizon. Monthly Total 10 lines:$390/Sprint vs $540/Verizon. 24 Month total 10 lines: $9,360/Sprint vs $14,959.90/Verizon resulting in $5,599.90 savings over 24 months. Comparison does not include optional device purchase at the end Other monthly charges apply. See below. Monthly lease payments exclude taxes (varies by area). Monthly services charges exclude taxes and Sprint Surcharges [incl. USF charge of up to 16.8% (varies quarterly), up to $2.50 Admin. & 40¢ Reg. /line/mo. & fees by area (approx. 5 -20%)]. Surcharges are not taxes. See sprint.com/taxesandfees. Plan: Activ. Fee: $36/line. Credit approval req. Plan Details: Plans only available to Corporate-Liable business subscribers. CL discounts may apply only to monthly shared data charges. Includes unlimited domestic Long Distance calling and texting while on the Sprint Network. Data allowance as specified. Third-party content/downloads are add’l charge. Int’l svcs are not included. Data: Includes shared data across all subs. Depending on plans selected, includes 20GB of on-network data usage and 100MB off -network data usage. Add’l on-network data usage: 1.5¢/MB. Additional off -network data can be added by opt in only for 25¢/MB for tablets/MBBs. If conflicting share data allowances are applied to an account, the majority on account or most recent change may be applied for all lines. Mobile Hotspot usage pulls from your shared data and off -network allowances. Add-ons: Good for Enterprise™ or BlackBerry Enterprise Service 10 can be added to select data plans for an additional $15/mo. per line. Other BlackBerry smartphones can add BlackBerry Enterprise Server for $20/mo. per line. Messaging: Includes sending/receiving domestic texts (SMS) and pics/videos thru texts (MMS).Discounts: Discount of up to $20/mo./line will be applied within 3 invoices for customers that have chosen Lease. The discount will remain until a new device transaction. Discounts do not apply to basic/feature phone transactions. Usage Limitations: Other plans may receive prioritized bandwidth availability. To improve data experience for a majority of users, throughput may be limited, varied or reduced on the network. Sprint may terminate service if off network roaming usage in a month exceeds (1) 800 min. or a majority of min.; or (2) 100MB or a majority of KB. Prohibited network use rules apply-see sprint. com/termsandconditions. Lease:Terms for all other customers will vary including amount due at signing and taxes/fees. Req. qualifying device and service plan. No equipment security deposit required. Upon completion of 24 mo. term, customer can continue to pay monthly lease amount, purchase or return the device. Customer is responsible for insurance and repairs. Early termination of lease/service: Remaining lease payments will be due immediately, and requires device return or payment of purchase option device price in lease. $5/Mo. Lease Service Credit: Off er ends 04/09/15. CL only. Req. eligible device on 24 mo. Sprint Lease and new-line activ. or eligible upgrade on Sprint Business Share plan. Receive $5/mo service credit for 24 months with eligible device with Sprint Lease. No cash back. Account must remain in good standing to receive svc credits. Allow up to 3 billing periods for 1st svc credit to appear following activ. Avail. from Sprint Business Rep. only. No discounts apply. May not be combined with other off ers. Other Terms: Off ers and coverage not available everywhere or for all devices/networks. May not be combined with other off ers. Restrictions apply. See sprint.com for details ©2015 Sprint. All rights reserved. Sprint and the logo are trademarks of Sprint. DBpageAD_DBpageAD.qxd 3/12/2015 10:37 AM Page 1

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