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Page 3 Bid to privatize city parking Governor’s race putting likely to expire without Orr City steps up to receive Tiger Stadium site pitches spots before voters’ eyes BLOOMBERG NEWS Inside Stephen Ross says the University of Michigan’s David Brandon is “probably TALES FROM CAMPAIGN 2014 the most qualified athletic director in Networking works to create Analysts say TV ads the country.” University boards: Contests are less about the candidates new VC fund, Page 4 and more about who’s atop the ticket, Page 3 help Schauer, so far Biz has nothing to ad: Some companies are pulling back on ad buying so as not to get lost in political ads or be BY CHRIS GAUTZ associated with them, Page 28 Major donor CAPITOL CORRESPONDENT Economic numbers point to ... Pollsters may see a statistical dead heat in the gubernatorial race, but If television viewers feel as if they are being bom- economist David Sowerby sees a clear winner, Page 28 barded with political ads lately, it’s not just percep- Ross backs tion, it’s reality. adding to the broadcaster bonanza of ad buying. A recent analysis by the Center for Public Integrity Through Sept. 21, television spots in that race to- found that Michigan viewers were seeing one politi- taled 25,151, with 7,562 airing in the Detroit market, ac- cal ad every two minutes. And that was just count- cording to the Michigan Campaign Finance Network, embattled ing the ads in the U.S. Senate race. And that was just which cited Kantar Media/Campaign Media Analysis for the second week of September, when 4,419 ads Group. Talks between McLaren, were shown. So far, a total of more than $10 million has been “You can’t watch TV right now without being in- spent on TV ads by the campaigns of Gov. Rick Sny- DMC over Karmanos are undated with ads,” said Kelly Rossman-McKinney, Brandon der and his Democratic challenger, former U.S. Rep. heating up, Page 6 CEO and principal of Truscott Rossman, a bipartisan Mark Schauer, along with their allies. More than strategic communications firm in Lansing. BY BILL SHEA The hotly contested gubernatorial race is only See Ads, Page 28 CRAIN’S DETROIT BUSINESS The University of Michigan’s This Just In largest donor is giving an unequiv- Redico adds to out-of-state ocal vote of confidence to Athletic Director David Brandon, who has portfolio with Mo. purchase been under criticism for a strug- gling Wolverines football team Redico LLC has added along with increased event prices 900,000 square feet of office and marketing gimmicks. and retail space to its portfo- “He’s probably the most quali- lio with the purchase of the fied athletic director in the coun- CityPlace office complex in try. I think he’s terrific,” said bil- Creve Coeur, Mo., a suburb lionaire real of St. Louis. estate developer The purchase price on the Stephen Ross, a deal that closed Friday was UM alumnus not disclosed. who has given It marks the second Mid- the university west office purchase outside $310 million in of Michigan for the South- recent years. field-based company, which Ross, who bought the six-building com- owns the Nation- plex from the Missouri-based al Football Koman Group. How an Oakland University medical student Brandon League’s Miami “It’s part of our decision to Dolphins and is estimated by Forbes build our presence in the used Google Glass to give doctors a second to be worth $6 billion, said his do- Midwest. Previously we had nations to the athletic department been investing on the coasts,” set of eyes. See Page 11 happened because he trusts Bran- said Dale Watchowski, presi- don. dent, COO and CEO of Redico. “I wouldn’t have given my gift to In December, Redico bought the athletic department if I didn’t the 80,000-square-foot 10 North believe in Dave,” said Ross, who Dearborn building in Chica- spoke with Crain’s from London, go’s Loop area for $11.5 million where the Dolphins were sched- and opened a small office Surgeon uled to play the Oakland Raiders on there, according to Washing- Sunday at Wembley Stadium. ton, D.C.-based real estate in- “You don’t go around giving formation service CoStar Group $100 million if you don’t feel there Inc. The CityPlace complex is is going to be bang for the buck.” 94-percent leased. — Kirk Pinho optimization See Ross, Page 27 GLENN TRIEST

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Page 2 CRAIN’S DETROIT BUSINESS September 29, 2014

MICHIGAN BRIEFS Schuette sues one propane firm tion and is the only U.S. mine where nickel is the primary mineral. over price gouging, settles with 2nd New at CMU: A belchelor’s degree in beer-making Ⅲ Kalamazoo-based Zeigler Auto Attorney General Bill Schuette Group Inc. has acquired the Rosen filed suit in Berrien County Circuit On rare occasions in our state, a story comes Similar programs operate at the University of Califor- Nissan store in Gurnee, Ill., MiBiz Court in Southwest Michigan along where one can almost imagine half of Michi- nia’s Davis and San Diego campuses and at Oregon reported. The acquisition should against Pennsylvania-based Ameri- gan’s population lining up to deliver their one-lin- State and Central Washington universities, in case push the Zeigler to sales of 30,000 Gas Propane Inc., alleging violations ers. Such is the case here. And, yes, again, it in- your kid’s ACT score doesn’t cut it with CMU. Cen- new vehicles this year and rev- of the Michigan Consumer Protec- volves beer. tral’s program will include classroom and lab work enue of around $850 million. tion Act for price-gouging last win- Last week, The Associated Press reported, Central in biochemistry, chemistry and microbiology as well Ⅲ Officials of the Benton Harbor ter. Michigan University in Mt. Pleasant announced plans as a 200-hour internship in a “production-scale facili- Area Schools voted to enter into a Schuette also reached an agree- to launch a degree program in “fermentation sci- ty.” To say nothing of all that independent study. consent agreement with the state to ment with Kansas-based Ferrellgas ence” in the fall of 2015. The objective: Support the In related brews … er, news: address a $15.5 million deficit, The Partners LP under which more than state’s fast-growing craft brewing industry, now a $1 Ⅲ The HopCat bar in Grand Rapids — soon to open a Associated Press reported. 600 propane customers will receive billion-plus annual business. Detroit watering hole — was crowned one of the five Ⅲ The Battle Creek-based W.K. Kel- a share of more than $100,000. The And just a wild guess here: Neither Gov. Rick Sny- “Great American Beer Bars” in the U.S. in the Brewer’s logg Foundation said Linh Nguyen, agreement resolves an earlier an- der — nor, for that matter, any other Michigan gover- Association’s 2014 “Great American Beer Bar” survey. the organization’s former vice presi- nounced investigation. nor from now until the United Nations takes control Ⅲ The city of Grand Rapids has a significant lead dent of learning and impact, had of the United States — is likely to deliver a speech in the USA Today “Best Beer Town” competition. been promoted to COO. He will lead about the lack of talent in fermentation science. Last call for polling is Oct. 13. operations and oversee the founda- Grand Rapids ArtPrize tion’s vice presidents. competition bans artist nology for A&E Television. Corp. began work at an underground Find business news from MICH-CELLANEOUS Ⅲ The Michigan Court of Appeals nickel and copper mine in Mar- around the state at crainsdetroit Downtown Grand Rapids is Ⅲ Mercy Memorial Hospital System ruled that Lansing-based Jackson quette County in the Upper Penin- .com/crainsmichiganbusiness. again an objet of art lovers’ affec- in Monroe signed a letter of intent to National Life Insurance Co. should sula after a 12-year struggle over the Sign up for the Crain’s Michi- tions as its annual ArtPrize interna- join ProMedica, a not-for-profit, mul- not have fired a white employee, $800 million project. The Eagle Mine gan Morning e-newsletter at tional competition continues its tihospital system based in Toledo, Angela Shaft, who offended a black employs more than 300 for produc- crainsdetroit.com/emailsignup. run through Oct. 12. The event has Mercy Memorial said in a release. co-worker, overturning an Ingham a prize pool of $560,000 and encom- The systems will begin a period to County judge. The Associated passes more than 1,500 entries from determine details of the deal and ex- Press reported that in 2012 Shaft ORRECTION 51 countries. Give or take one. pect that to take several months. sent an email to Candace Jones C That one would be a stunt artist Ⅲ Oscar-winning documentary about finding a ticket to a basket- Ⅲ A story on Page 3 of the Sept. 22 issue should have said that Athens named Gurmej Singh, known as filmmaker Michael Moore no longer ball game between the Ku Klux Acquisition LLC, not Rock Ventures LLC, owns Greektown Casino-Hotel. Artist SinGh, who was permanent- is on the Michigan Film Office Adviso- Klan and the Knights of Columbus to Athens is a Rock affiliate. Also, the casino, not Rock Ventures, se- ly banned after repeatedly break- ry Council, The Associated Press re- benefit a Jewish group. Shaft sub- cured the permit to expand the I-375 ramp to Lafayette Street. ing public safety rules. Maybe it ported. Gov. Rick Snyder replaced mitted a picture for an employee Ⅲ Phil Incarnati, CEO of McLaren Health Care Inc., should have been in- was the 3-mile-long painting he un- Moore with Ted Serbinski of De- newsletter. Jones complained, and cluded in a list of top-paid nonprofit health care executives in metro furled last year without permis- troit Venture Partners LLP. Serbins- Shaft was fired for violating the in- Detroit that was published on Page 14 of the Sept. 22 issue. He had to- sion, or the effigy of Saddam Hus- ki, who will serve a four-year surer’s harassment policy. tal compensation of $8,823,941 in 2012. sein in a cage the year before that. term, is a former director of tech- Ⅲ Toronto-based Lundin Mining

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September 29, 2014 CRAIN’S DETROIT BUSINESS Page 3 New pitches for Tiger Stadium site Inside City considers 2 plans for retail, residential

BY KIRK PINHO firms recently responded to the The DEGC issued the RFP in Fisher Fwy. Service Drive

AND DUSTIN WALSH city’s request for proposals with March for development of two city- Zone 2

Zone 3 Trumbull Ave. CRAIN’S DETROIT BUSINESS plans for a mixed-use development owned parcels on the Tiger Stadium including retail and residential site, called Zone 1 and Zone 2. Lar- The “Corner” at Michigan and space. son Realty and Roxbury are the fi- Cochrane Ave. Zone 4 Trumbull, former home of Tiger Eric Larson, president and CEO nalists for the redevelopment, but Stadium, is getting closer to redevel- of Larson Realty, is also the CEO of it’s not clear when the DEGC will opment as the Detroit Economic the Downtown Detroit Partnership. Sta- make its final decision. The Old Growth Corp. weighs plans from two cy Fox, co-founder of Roxbury, has Tiger Stadium Conservancy Inc. and McLaren bid for new hospital developers — both with close ties to been Detroit’s deputy emergency the Detroit Police Athletic League Inc. Zone 1 the city. manager since October 2013. She are also working on a proposal to re- hits skids in Lansing, Page 5 The developers under considera- leaves that post Oct. 1 to become se- store the baseball field and build a Michigan Ave. tion are Detroit-based The Roxbury nior vice president and general new headquarters for PAL on Zone 2 developers are finalists to redevelop Group LLC and Bloomfield Hills- counsel of Wilmington, Del.-based Zones 1 and 2. Detroit PAL HQ, restored based Larson Realty Group LLC. The DuPont. See Stadium, Page 29 baseball field planned for Zones 3 and 4. Company index These companies have significant mention in this week’s Crain’s Detroit Business: College board races less Barbara Ann Karmanos Cancer Institute ...... 6 Beaumont Health System ...... 11 BioStar Ventures ...... 12 about candidates, more Center for Automotive Research ...... 17 Children’s Hospital of Michigan ...... 15 about who’s atop ticket Code Fellows ...... 26 CourseWeaver ...... 16 Crossroads Consulting Group ...... 22 Deloitte ...... 22 Detroit Economic Development ...... 29 Party Detroit Economic Growth ...... 3 Detroit Medical Center ...... 6 Detroit PAL ...... 3 FoveOR ...... 11 schools Functional Fluidics ...... 15 Global Productivity Solutions ...... 22 BY CHRIS GAUTZ Grand Circus ...... 26 CAPITOL CORRESPONDENT Karp & Associates ...... 10 Larson Realty Group ...... 3 Among the candidates for seats Lear ...... 17 on the governing bodies of three of Ludlow Ventures ...... 4 the state’s top universities, many Main Street Strategies ...... 28 have years of business and profes- McLaren Health Care ...... 5, 6 sional experience, personal wealth Michigan Chamber of Commerce ...... 5 and strong name identification. Michigan State University ...... 3, 13, 14, 16 But if recent history proves cor- O’Connor Realty Detroit ...... 29 rect again, none of that will matter Old Tiger Stadium Conservancy ...... 3 much, if at all. PHOTOS BY ANJANA SCHROEDER Nearly 1,000 spaces of the 2,600-space Joe Louis Arena garage are not Phenometrics ...... 14 Who is running at the top of the being used because of structural disrepair. The city of Detroit has agreed Rock Ventures ...... 10 ticket on the November ballot al- to make more than $2.5 million of improvements. Roxbury Group ...... 3 most always mat- SMZ ...... 28 ters more than A UNIVERSITY Tanner Friedman Strategic Communications . . . . . 28 who is actually Truscott Rossman ...... 1 WHO’S WHO running for the United Auto Workers ...... 17 two seats each on Candidates for University of Michigan ...... 1, 3, 7, 11 the University of Effort to privatize city parking boards at Versicor ...... 12 Wayne State, Michigan board of Wayne State University ...... 3, 11, 15 UM and MSU, regents, Michigan William Davidson Institute ...... 7 Page 26 State University board of trustees and Wayne State University board of likely to expire without Orr governors. Party affiliation and the year of the election end up being the decid- from bankruptcy, his spokesman Department index ing factors more so than anything Duggan ‘not a fan’; THE D’S GREAT said the parking plan is now BANKRUPTCIES ...... 6 else, said Bill Ballenger, a former LEAN FORWARD parked in the hands of the city’s state Republican lawmaker and elected officials. BUSINESS DIARY ...... 24 founder and associate editor of the Syncora deal a thorn Report details A review of bids collected Aug. CALENDAR ...... 23 Lansing-based Inside Michigan how to improve 25 for a private lease of the city’s CAPITOL BRIEFINGS...... 5 Politics newsletter. BY CHAD HALCOM 18 city services, $23.4 million parking operation is Page 22 CLASSIFIED ADS ...... 25 CRAIN’S DETROIT BUSINESS not expected to yield a contract, “If you have a strong perfor- KEITH CRAIN...... 8 mance by one party at the top of the Orr spokesman Bill Nowling said. ticket, they are going to sweep,” he Kevyn Orr’s impending departure from Detroit “The request-for-proposal quotes are there for the MARY KRAMER ...... 9 said. means an idea to privatize the municipal parking de- mayor or council to look at, and it’s up to them how OPINION ...... 8 In 2006, a year Democrats swept partment is as likely to expire as a city parking meter. they want to proceed,” he said. “I don’t ever want to OTHER VOICES ...... 8 say anything’s dead, but realistically … we don’t see because of the strong national Day-to-day control of the city was transferred PEOPLE ...... 24 back to the mayor and City Council last week per a it as a viable option right now.” wave election, Republican — and RUMBLINGS ...... 30 future university athletic director council vote. Orr is retained solely to oversee the Nowling said the city received five bids, of which WEEK ON THE WEB ...... 30 — David Brandon, then CEO of bankruptcy case. His remaining task as emergency three appeared viable and were under review as of Domino’s Pizza Inc., lost his seat on manager is to usher the city’s plan of adjustment mid-September. But while a parking decision isn’t the UM board, despite television through confirmation before U.S. Bankruptcy Judge final, the city is no longer expected to enter into a Steven Rhodes. See Boards, Page 26 With Orr focused on navigating the city’s exit See Parking, Page 29

Wayne State a bit more stately THIS WEEK @ The university closed last week on the $2.3 million purchase of the Hecker-Smiley mansion in Midtown ... or hadn’t you heard? Catch WWW.CRAINSDETROIT.COM up on other news you may have missed at crainsdetroit.com.

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Page 4 CRAIN’S DETROIT BUSINESS September 29, 2014 Networking strategy of Ludlow Ventures founder helps propel a new VC fund

BY TOM HENDERSON phone apps on a heads-up display CRAIN’S DETROIT BUSINESS on the windshield and allows hands-free operation by voice. At 1:30 p.m. Sept. 17, a call came In August, Navdy hit $1 million in with the good news Jonathon in orders in the week it launched Triest and his Detroit-based Ludlow an online sales campaign. Ventures LLC had been hoping for. Another reason for Ludlow hav- An investor was on the line to coming a broader reach than would mit $600,000 to Ludlow’s new ven- UpTo’s calendar for smartphones seem likely was networking Triest ture capital fund. began before launching his own Triest — who started raising the company in 2009. fund, Ludlow Ventures II LP, last year LUDLOW’S ADVENTURES For example, Brad Feld, one of — had been tar- Here are some of the companies the co-founders of the Foundry geting $15 mil- Ludlow Ventures has invested in: Group, said he met Triest before lion, to be in- UpTo Inc., which is developing a he started Ludlow at TechStars, a vested in calendar for smartphones, Detroit mentor-driven organization that early-stage tech- Chalkfly LLC, which sells office runs tech incubator programs in nology and con- and janitorial supplies online, New York City, Seattle, San Anto- sumer product Detroit nio and Boulder. Feld is an in- companies. uBeam Inc., a maker of wireless vestor in the new fund and serves With this call, charging technology for portable as an adviser as well. he had gone devices, Los Angeles “Ludlow has an ability to identi- slightly past his Navdy, a maker of heads-up fy strong entrepreneurs and com- Triest goal and, slight displays for cars, San Francisco panies in their infancy and, with as that might be, it allows him to Lob, a company founded by great hustle, leverage their net- use a venture capitalist’s favorite University of Michigan students that does cloud-based printing and work to help them grow. A lot of adjective to describe a fund: over- logistics, San Francisco their early success has come from subscribed. AngelList, connects investors with their give-before-the-get approach, “Being oversubscribed is cer- entrepreneurs and helps companies a deeply held belief of mine about tainly flattering and a testament to recruit talent, San Francisco how VCs should work with entre- our initial traction,” Triest said. Sprig, health-food-on-demand preneurs,” Feld told Crain’s. He said his limited-partner in- The delivered to your door, San Weiser, though, said the quality vestors include Karen Davidson, Francisco the widow of former Detroit Pistons of Triest’s co-investors isn’t what Roadtrippers, online trip impresses him, that rating a VC by owner Bill Davidson, and Marc planning service, Cincinnati Weiser, managing director of his whom it co-invests with can be GO TO — Tom Henderson misleading. own venture capital firm, Ann Ar- “What is impressive about the bor-based RPM Ventures. is far from the VC hot spots of firm is that in a few short years advisors for Intellectual Property Triest, a member of the Crain’s Boston and Silicon Valley, Triest they have been able to find deals 20 in their 20s class of 2011, has co-invested with some of the before other investors even have launched Ludlow Ventures in 2009 bigger names in the business, in- them on their radar. This is the re- as an investment vehicle for fami- cluding the Boulder, Colo.-based sult of being smart and hustling ly members, and he raised money Foundry Group, which has more harder to generate great invest- from them as needed to do deals. than $1 billion under management opportunities,” he said. His father, Brent Triest, is an at- ment, according to its website; San torney who manages several private Francisco-based Founders Fund, “Jonathon has built his reputa- equity firms. His great-uncle, War- which has $2 billion under man- tion with entrepreneurs by being McDonald Hopkins PLC ren Coville, co-founded Guardian In- agement; and Menlo Park, Calif.- willing to roll up his sleeves and 8PPEXBSE"WF 4VJUF #MPPNöFME)JMMT .*t dustries Inc. with Bill Davidson and based Andreessen Horowitz, which work to help with his portfolio Stephen M. Gross, Detroit Managing Member was president of the Guardian Photo has $4 billion under management. companies, which is not the case with many seed investors.” $IJDBHPt$MFWFMBOEt$PMVNCVTt%FUSPJUt.JBNJt8FTU1BMN#FBDI division from 1955 to 1985. “He definitely punches above A fund of $15 million is small by his weight class,” Weiser said. Another company Ludlow has mcdonaldhopkins.com Carl J. Grassi, President national standards and smaller Triest said he sources deals by invested in is Los Angeles-based than average for Michigan funds, serving as a mentor at technology uBeam Inc., whose founder and but it is larger than several first- accelerators across the country, CEO, Meredith Perry, was profiled time funds raised here recently. which gives him entrée to compa- this summer by The New York For example, Tom LaSorda, for- nies and technologies before they Times and named by Business In- mer CEO of Chrysler Group LLC, last are ready for investment. He is a sider as one of the 30 most power- year launched IncWell LLC, a seed- mentor at such accelerators as Up ful women in tech under age 30. stage fund in Birmingham, with West Labs in Silicon Valley, The Ludlow has invested in two rounds less than $5 million; Ann Arbor- Brandery in Cincinnati and Highway of funding for the company. based Huron River Ventures closed 1 in San Francisco. Marissa Mayer, the CEO at Ya- on its first fund of $11 million last Triest said he also has a network hoo Inc., has been reported by vari- year; and Ann Arbor-based Reso- of sources who are involved with ous sources as another of uBeam’s nant Venture Partners announced a product launches for new compa- investors. goal of $10 million when it began nies. One of them, Adam Lisagor, UBeam is developing a way to its first fund in 2010. is listed on Ludlow’s website as en- wirelessly charge devices by con- A DVISOR S POTLIGHT Though the new fund hadn’t hit trepreneur-out-of-residence, a play verting electricity to sound waves the finish line, Triest began invest- on the more common title of entre- that travel through the air and are ing from it last year and has in- preneur-in-residence. converted back to electricity by a re- vested in 28 companies. Lisagor is founder of Los Ange- ceiver attached to electronic devices. ARON OISELLE A L Included are two in the portfolio les-based Sandwich Video Inc., “I can say that Jonathon is one Vice President of Employee Benefits of Detroit Venture Partners, the VC which did product-launch videos of the most determined, support- firm founded by Dan Gilbert, Josh for Groupon Inc., airbnb, Square Inc. ive and loyal investors I’ve ever Aaron has 15 years of experience in the employee health and benefits Linkner and Brian Hermelin, both and Lyft Inc. Triest said Lisagor encountered. He is very hands on field. With a strong actuarial and financial background, Aaron is able to housed in the Madison Building will tip him off to cool early-stage with the company and really runs communicate well with CEOs/CFOs, while addressing the very real and downtown — UpTo Inc., which is de- products for vetting. the extra mile to help out constant benefits issues that face HR managers. Born and raised in the veloping a calendar for smart- “Typically I’ll write a small founders,” Perry, who founded her Detroit area, Aaron believes that reviving the city can be achieved by phones, and Chalkfly LLC, which sells check to the founders to start company in 2012, told Crain’s. office and janitorial supplies online. attracting and retaining the best talent, and a significant part of that starts things, then try to find a larger VC She raised $1.7 million in her Ludlow is also based in the Madi- to become the lead investor,” said seed round, which Triest partici- with providing a well thought out and cost effective benefits program. son Building, but Triest has more of Triest. pated in. She declined to say how a national focus, with investments Triest said an example of that is much she is raising in her A round, 535 Griswold Street, Suite 1600 • Detroit, MI 48226 • www.lovascogroup.com • 313.394.1700 in companies based in California, Navdy Inc., a San Francisco company in which Triest is also investing. A Member Firm of M Financial Group. New York, Nevada, Nebraska, that has been getting media buzz for Tom Henderson: (313) 446-0337, LoVasco Consulting Group is Independently Owned and Operated. Ohio, Pennsylvania and Colorado. its dashboard-mounted device that [email protected]. Twitter: Though he has a small fund and displays text messages and smart- @tomhenderson2 20140929-NEWS--0005-NAT-CCI-CD_-- 9/26/2014 3:36 PM Page 1

September 29, 2014 CRAIN’S DETROIT BUSINESS Page 5 McLaren bill opposition leaves few options

The fast-paced effort to talk with his caucus “We want to making a difference.” came in the workforce composi- give Flint-based McLaren members more about stay, but make The state also outperformed the tion and cost, and labor and capital Health Care Inc. a special Capitol the issue before moving no mistake. At surrounding Great Lakes states. formation categories, finishing 38th exemption to build a new Briefings forward. some point in Michigan ranked best in the cat- in both. In 2012, the state ranked hospital near Clarkston The opposition to the time, McLaren egory of state debt and taxation at 45th in both categories. hit a snag last week and bill includes the Detroit will build a new, 12th, though it was ranked 10th in Chris Gautz: 517-403-4403, the next step is in doubt. automakers, Michigan state-of-the-art 2012. [email protected]. Twitter: Many business groups, Manufacturers Associa- facility,” Incar- The lowest ranking for the state @chrisgautz health systems and labor tion, Small Business Asso- nati said. “Our unions voiced their oppo- ciation of Michigan, Michi- home is right sition to Senate Bill 1073, gan Nurses Association, Incarnati here in Michi- sponsored by Majority the UAW and Blue Cross gan. As we grow Leader Randy Blue Shield of Michigan into a system of the future, our Chris Gautz Richardville, R-Monroe, SB 1073 would allow new investments may not be.” at a hearing last week, McLaren to transfer Let the Giant Buy Your and no vote was taken on the bill. beds from its McLaren Oakland in That may have been because Pontiac to the new hospital. Such a State climbs competitive index Richardville does not have the transfer has been denied by the When the Michigan Chamber votes to move the bill out of the state and the courts in recent Foundation unveiled the Northwood five-member committee he chairs. years because it doesn’t meet state University Competitiveness Index in The two Democ- certificate-of-need requirements. 2012, Michigan was, well, not that rats on the panel McLaren CEO Phil Incarnati said competitive. IT A$$ET$ are opposed, he doesn’t see what the problem is, That year, the state was ranked and as Gongwer and called the opposition “arro- 47th in the study by Northwood News Service re- gant” in its attempt to tell residents University, which looks at more ported, Sen. of northern Oakland County that than 200 metrics, including tax Dave Hilden- they should have to travel long dis- and regulatory policy and employ- brand, R-Lowell, tances to get to a hospital. ment growth. is also opposed. He said the bill will save lives in The latest version of the study, Unless Pontiac by keeping the Pontiac released last week, showed Michi- Richardville can hospital open and save lives in the gan has shot up to 30th, up from 39th Richardville persuade his Clarkston area because a hospital last year. colleague to change his vote, the would be closer. Utah was highest in the study. other solution is to discharge the Without the bill, Incarnati said, Rich Studley, president and bill from committee to the Senate he may have to close McLaren CEO of the Michigan Chamber of E-waste recycling/data destruction/computer liquidation floor, where the entire Senate Pontiac, where 1,435 people work. Commerce, said these are good could vote on it instead. Future investments in Michigan signs that show “strong leadership Call: 248-891-7330 or Email: [email protected] Richardville said he wants to also may not happen, he said. in the state’s economic policy is

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brighthouse.com/brightideas 20140929-NEWS--0006-NAT-CCI-CD_-- 9/26/2014 3:39 PM Page 1

Page 6 CRAIN’S DETROIT BUSINESS September 29, 2014 Talks progress between McLaren and DMC over Karmanos

BY JAY GREENE productive and Officials at the DMC said it sold DMC’s cancer CRAIN’S DETROIT BUSINESS substantive,” Detroit Medical business to Karmanos in 2005 for a said Conrad Mal- Center and below-market price of $9.9 million Talks are heating up to settle the lett Jr., DMC’s McLaren Health because it included an exclusive af- lawsuit between McLaren Health chief adminis- Care hope to filiation into perpetuity. Karmanos Care Corp. and Detroit Medical Cen- trative officer. reach a had offered a no-strings $45 million ter over the acquisition last year of “The issues in settlement on deal for the DMC cancer operations. Barbara Ann Karmanos Cancer Insti- front of both par- McLaren’s “We have always believed there acquisition of the tute by McLaren. ties are complex is a business solution to this litiga- Barbara Ann Officials for DMC and McLaren and we certainly Karmanos Cancer tion,” said Greg Lane, McLaren’s said they hope to reach a compre- Mallett agree that the Institute by the chief administrative officer. hensive settlement by the end of parties are work- end of the year. While not listing all the settle- the year. The trial is expected to being hard to work out a mutually sat- ment and contractual talk items, gin sometime in the first quarter isfactory settlement.” asked the court to declare DMC’s DMC’s suit against McLaren Lane said the agreement would next year in Oakland County Circuit On the same day McLaren’s 2005 affiliation agreement with charges “tortuous interference” “reinforce the commitment for Court before Judge Wendy Potts. board agreed to acquire Karmanos Karmanos to be an “unreasonable and “breach of contract” with the Karmanos to remain on the DMC “We agree with our colleagues at in September 2013, McLaren filed a restrictive covenant” that violates prior contractual agreement it has campus, to put capital dollars into McLaren that talks so far have been lawsuit against DMC in which it Michigan’s antitrust laws. with Karmanos. the (cancer) program and develop a strong and meaningful relation- ship with DMC and McLaren.” McLaren has already pledged to spend $80 million over the next four years to upgrade Karmanos’ downtown hospital and expand two outpatient centers, in Farm- ington Hills and Monroe. Lane said the two companies also are talking about a new pur- “ IS IT REALLY EASY chased services agreement with DMC. Before the sale, Karmanos CEO Gerold Bepler told Crain’s that DMC was overcharging Kar- TO SAVE MONEY BY manos for most services and would not discuss lower rates. “There are a lot of synergies with DMC,” Lane said. “We see more cooperative competition go- SAVING ENERGY?” ing forward.” In its lawsuit, McLaren said it It’s never been easier to save your business money. Replace old incandescent exit signs wants to use Karmanos’ name on its cancer centers at McLaren Oakland, a with LEDs, and you can save up to 95% on energy costs. An energy management system hospital in Pontiac; McLaren Cancer that turns lighting equipment off during downtime can save you a lot. And installing a Institute Clarkston; and other McLaren health care facilities in programmable thermostat to automatically lower heating temperatures during off hours Oakland County. will save you even more. Plus, you can tour our Interactive Business and Lighting Advisor But DMC and Karmanos’ 2005 sale agreement also prohibits Kar- tools for more ways to save. For additional cost-saving tips, go to dteenergy.com/biztips. manos from marketing or adver- Saving money has never been easier. tising its services in the tri-county area of Oakland, Wayne or Ma- comb counties with anyone other than DMC, court documents say. Officials for McLaren and DMC said it is possible that the settlement could include McLaren com- pensating DMC for the loss of marketing rights for Karmanos in Oakland County. “There could be some funds ex- changed,” Lane said. “We have many details to work out.” Another option, say officials, is that Karmanos could be jointly marketed and advertised by DMC and McLaren in Southeast Michigan. DMC was acquired by for-profit Tenet Healthcare Corp. last October after Vanguard Health Systems Inc., another for-profit chain, took over DMC on Jan. 1, 2012. McLaren, a nonprofit system, owns and operates 12 hospitals in Michigan, including Karmanos. Jay Greene: (313) 446-0325, [email protected]. Twitter: @jaybgreene

BANKRUPTCIES The following business filed for protection in U.S. Bankruptcy Court in De- troit Sept. 19-25. Under Chapter 11, a Start saving today, visit: company files for reorganization. dteenergy.com/savenow Chapter 7 involves total liquidation. A.M. Total Being Fitness LLC, 5500 Auto Club Drive, Dearborn, voluntary Chapter 11. Assets and liabilities un- known. — Dustin Walsh 20140929-NEWS--0007-NAT-CCI-CD_-- 9/26/2014 3:35 PM Page 1

September 29, 2014 CRAIN’S DETROIT BUSINESS Page 7 Davidson Institute chief stresses education as biz, UM expertise

Paul Clyde was named thinking of private-sector For example, there is a treat- If you looked at the markets to- challenges around the world be- the new president of the development, we worked ment for diarrhea that is well- day versus 25 years ago, the land- cause of the geopolitical factors that William Davidson Institute at with institutions, both known and that WHO recom- scape has changed completely. That are affecting them. None of those the University of Michigan in multinationals as well as mends. In a survey of clinicians in was before India had gone through would be surprises to people. Ann Arbor in June, re- local companies and insti- the rural parts of Uganda a couple its reforms. Since the 1990s, it has placing interim President tutions in these emerging years ago, it found that less than 10 been growing like gangbusters. Where can the WDI have the most Rosemary Harvey. markets to try to help percent of the clinicians were rec- Much of India is developed, al- impact and why? Clyde, 51, is now in them become profitable ommending it. That’s not trans- though there are still significant If you take education, we are go- charge of developing and and more effective in portation or infrastructure. parts of India that are underdevel- ing to sort of broaden our focus to managing the 22-year-old what they are doing. It is, Some of the things that I worked oped. As you’re talking about a think about developing educational institute’s strategy for re- in my view, a thriving pri- with are hospitals and clinics that whole country, that one is hard to institutions and education as a busi- searching and developing vate sector that will play have begun to develop ways to pro- imagine turning around. It will con- ness. We can tie in the expertise business and public policy Q&A the most important role in vide health care to the poor in the tinue to grow in significant ways. from the other schools at the Uni- solutions focused on chal- the development of these community, but we are trying to But more importantly, in sub- versity of Michigan and bring our lenges and opportunities Paul Clyde, economies. work with them to develop ways to Saharan Africa, there wasn’t a lot approach on the business side of in emerging economies William Davidson do that without relying on dona- of hope. But even there, we are see- things and start thinking of health around the world. Institute What are some specific tions. One of the organizations we ing examples of organizations that care and education as business — The Ann Arbor native examples of that? worked with was Aravind Eye Care are succeeding, making real head- really working with them, not just is also academic director of part- We’ve got two prongs to health System in India. way. We are seeing multinationals having one-off projects. time MBA programs in UM’s care. One major area is on supply dipping their toe in it because they Stephen M. Ross School of Business, is chain management and market dy- What are some of your priorities realize these are the markets that What else is important to add about a graduate of Indiana University and namics. We have been involved in and how will those be achieved? growth is going to come from. the institute and your work? earned his master’s and doctorate projects with USAID (the U.S. Agency I’d like to push us more into tak- South Africa has always been The most important thing about degrees from the University of Califor- for International Development), the ing on more detailed, significant the big one. Nigeria has grown the institute is its affiliation with nia, Los Angeles. From 1990 to 1996, World Health Organization, and we are roles with some of our partners. now in terms of size, but in terms the Ross School and other schools at he was an economist in the anti- trying to figure out ways to more ef- We do projects with a wide variety of stability it’s not there. South the university and combining that trust division of the U.S. Department fectively get drugs into the rural of organizations and local insti- Africa — there are two economies with our approach of testing out of Justice. He will continue to lecture parts of these countries. A lot of the tutes. We have operations going on there. There are parts of it that are business models. I’m working on a in the Ross School on business eco- health care problems we know about in education. We are working with very much like Europe and parts project right now with some in the nomics and public policy. can easily be addressed by medi- financial institutions as well. that are very underdeveloped. nursing school and the Democratic He spoke with Crain’s Detroit cines that are proven to be effective. We have, through our relation- Some of the other interesting Republic of Congo and doing work Business reporter Kirk Pinho. ship with UM, opportunities to do ones are Uganda, Rwanda, Tanza- with medical schools in Uganda, Is it infrastructure or transportation a variety of student projects valu- nia that don’t necessarily pop up. Ethiopia and India. The Davidson Give us an overview of the William systems that pose the greatest chal- able to the company, the local mar- They’ve shown steady progress in Institute has sponsored work in a Davidson Institute and its work. lenge to that? ket and to the students because the last few years. large number of countries in health The William Davidson Institute It can be, but it more has to do they get a unique experience. care, education and a wide variety was focused on the private sector with the businesses themselves. What about emerging economies of different industries. What I’d like and assisting the private sector in The way I think of it, it has more to What does the William Davidson In- that are less likely to succeed? to do is focus it a little bit more in the role it could play in the develop- do with the information flows to stitute view as the most secure There certainly are some econ- some areas where we can take ad- ment of economies. When you’re and from the patients. emerging markets and why? omies that continue to face severe vantage of the expertise at UM.

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Page 8 CRAIN’S DETROIT BUSINESS September 29, 2014 OPINION Wrong move for Cadillac Follow GM’s lead KC CRAIN OTHER VOICES The creative vibe is here Business, corporate leaders in United Way drive in Detroit, not in New York must rally against N.Y. move he economy is getting better; per capita income is up n Sept. 23, we had our Automotive News Mar- wo events happened in Detroit this week that ex- slightly in Michigan. keting Seminar in New York and I listened to emplified the mindsets that exist within two of T But human needs are still great. And that’s why em- OMatt VanDyke, director of global Lincoln mar- TDetroit’s very different worlds — the sports ployers — and those fortunate to be working — should consid- keting, talk about how Ford moved the operations of world and the business world. er a pledge to United Way for Southeastern Michigan during the Premier Automotive Group to California many The first was an announcement by GM that the Cadil- years back. That was when Ford lac brand is moving to New York. its annual fundraising campaign this fall. owned Aston Martin, Volvo and The second was when one of the Since 2008, United Way has focused on impacts in key ar- Jaguar/Land Rover. Tigers’ best hitters was intentionally eas: education, financial stability for families and basic needs. He said the biggest issue was hit by a pitch in a critical game. It has stepped up to new and emerging challenges, too, such as that the move ended up being the It was the responses to these managing the new Detroit Water Fund for aiding Detroit resi- same people relocated to a new ge- events that were most revealing. ographic area. Now, Lincoln has Both instances involve a potential dents unable to pay their water bills. developed Hudson Rouge, a team blow that could have significant neg- United Way kicked off its campaign last Monday; its goal is of luxury and fashion folks that ative impact. The first, on a recover- $42 million, up $2 million from what it raised in the 2013-14 helped launch the new Lincoln Mo- ing but fragile city trying to emerge campaign. tor Co. in late 2012. This team from bankruptcy. The second on a KC Crain works on marketing and vehicle Tim Smith The chair for the campaign, Dan Ammann, president of team trying to make the playoffs. launches out of New York. Matt says these non-auto- The response by the Tiger teammates was swift. General Motors Co., announced last week that the General Mo- motive folks give a different perspective. The Lincoln They were out of the dugout immediately, sprinting tors Foundation will match all new or increased giving by leadership still works in Dearborn close to product onto the field to protect their player. In that move, company employees. That should help increase the net. planning and design. they made a clear and direct statement to the other This follows other GM investments in United Way, most General Motors announced last week that Cadillac team and the league. Do not mess with us. will be moving its headquarters to New York. particularly the pledge of $27 million to help increase gradua- The response to the Cadillac announcement was al- They’re setting up an office in trendy SoHo. I’m not most nonexistent. tion rates at seven area high schools and the 65 United Way- sure if it will be the headquarters or just a marketing How can we sit by and allow our biggest corporate cit- supported early learning centers in the region. office, but it seems to me they’re missing an opportu- izens, and most established brands, to push Detroit That’s a great start to an important campaign. Now it’s up nity. I know I’m biased, but I can’t think of many backward, and not forward? The claim that the Cadillac cooler places to have a marketing office than Detroit. to others to step up and bring more resources. brand needs to be in New York to “develop attitudes in They don’t have to be in the Renaissance Center. common with our audience” is ludicrous. The fact that They could build a new space in Corktown or Eastern this news broke during the Detroit Regional Chamber’s Market and take advantage of all the creativity that MICHauto Conference, and during the Detroit Design is exploding in the city right now. City parking merits viable plan Festival, should have brought a resounding slap down Technology will have to play a large role in how from our business and corporate leaders. the brand communicates. The president of Cadillac A plan to privatize Detroit’s city-owned parking looks like- We must be united in our effort to show the world will be in New York and all the product planning, de- we are not what they think we are. We are celebrating ly to depart with Emergency Manager Kevyn Orr, who as of sign and manufacturing will be elsewhere. what we are, what we’ve accomplished and the oppor- last week remains EM for the purposes of finishing up the GM is a heavyweight when it comes to supporting tunities that exist in Detroit. Detroit with its RenCen investments and many phil- bankruptcy but not for operations. (See story, Page 3.) And then GM allows a new guy, a month on the job, Although there are responses to a request for proposals is- anthropic investments, especially in education. But I find it extremely interesting that the only automaker to tell the world: Detroit is exactly what you think it sued over the summer to operate the garages, Mayor Mike really embracing Detroit in its branding is owned by is, and I’m taking my new job and moving out. Duggan is in general opposed to privatization because of the an Italian, now Dutch, company. Chrysler has done a To say in the same breath that he is proud of Cadil- loss of operational control. great job of using the Detroit brand. It’s impossible to lac’s Detroit roots, but that his marketing team can’t understand the luxury market without being in New Many of the mayor’s prior successes in other positions fully measure the positive impact of the “Imported York, is reinforcing a negative stereotype about Detroit. have been tied to the ability to control a lot of variables, so his from Detroit” campaign. There is a reason why Shinola chose to have its How can we compete in the world when we watch one view is understandable. However, the mayor also has been headquarters in Detroit and not SoHo or Brooklyn. All of the largest and most recognizable global brands tell known for challenging orthodoxies, so we would hope he the data and focus groups said they would sell more the world they want out of Detroit? Where’s Detroit’s wouldn’t throw possible choices off the table before evaluating watches if they were stamped with “made in Detroit.” I team sprinting out of the dugout? Where are our leaders telling GM that this is a mistake? Who’s reminding all the facts. understand the difference in the brands, but you would them that Ford did this same move years ago with the The decision shouldn’t be about whether to privatize or not have to think Detroit can do luxury, too. We should just hope the Cadillac team in NYC can Lincoln brand, but it lasted just a few years? to privatize — hiring vendors to provide government services feel from a distance the vitality of the resurgent De- Who’s gonna tell Mr. Johan de Nysschen, the new sometimes works well, sometimes it doesn’t. The point, troit creative vibe. head of Cadillac, that his comments are both insulting though, is to devise the best plan for repairing, maintaining KC Crain is executive vice president/director of cor- and inaccurate? I am. Join me. Share, comment, forward — make and operating the garages for the benefit of the city residents. porate operations for Crain Communications Inc. and group publisher of Automotive News, Autoweek, your voice heard. The mayor in general seems to keep those interests front Crain’s Chicago Business, Plastics News, Rubber & Tim Smith is president and CEO of Detroit-based and center. We trust he’ll do the same here as well. Plastics News and Tire Business. Skidmore Studio. KEITH CRAIN: Two Detroit eyesores that have to be fixed It has been quite a while since from his existing bridge. thing to do is tear it Hopefully, the plans for this jail perfect photo op for every visiting we were able to get the cement Somehow, this rail- down. Perhaps it should will be transferred to somewhere journalist who comes to write about plants on Detroit’s riverfront torn road station has some- even be condemned, if outside of downtown Detroit. But our city seems simply absurd. down, and it has made a dramatic thing to do with his plan. for no other reason in the meantime, let’s hope that Both of these structures have ex- difference in the waterfront. There are some tunnels than it is a hazard. Dan Gilbert’s plan for demolishing isted far too long without positive Now we have to turn our atten- under the station, and I Meanwhile, right in the structure can come to pass. resolution. I am not sure how we tion to two major architectural eye- have no doubt it will be- the middle of downtown It is amazing that these two struc- ever got those concrete monstrosi- sores that need the entire communi- come a pawn in whatev- is the legacy of our tures, separated by decades, can ties removed from the riverfront, ty’s action to get rid of or fixed up. er Matty Moroun’s grand Wayne County Execu- create such a blight on our image. because it took several decades. The Michigan Central Depot rail- plan turns out to be. tive Robert Ficano: the The city is doing a great job of But it happened, and I hope that road station is a giant eyesore that By all accounts, it half-built or less county attacking blight in our city, and we’ll find the same government almost symbolizes the plight that would take far too much jail. Sitting in a spot that there is a real program to elimi- magic to make these two struc- Detroit has had for the last few money to fix up the sta- was pretty inappropriate nate abandoned houses or to sell tures disappear as well. decades. We all know the owner and tion for some business use, and so to begin with, it stands as a symbol them with plans for renovation. Maybe we can ask the Ilitches to how he has fought the new bridge it would seem that unless someone of the corruption and inefficiency of To continue to allow these two tear them down when they’re being built just a bit downriver comes up with a plan, the best our county government. eyesores to remain standing as the building their new arena. 20140929-NEWS--0008,0009-NAT-CCI-CD_-- 9/26/2014 11:42 AM Page 2

September 29, 2014 CRAIN’S DETROIT BUSINESS Page 9 MARY KRAMER: Rebuilding city takes patience, vision

In 1990, a Crain’s reporter and restaurants and shops. neighborhoods that ters who had achieved great finan- How true. It was 20 years ago an intern walked the downtown It’s an inspiring vision families want to live in cial and/or professional success that we tallied the empty hulks streets, block by block, to identify and seems realistic. and schools they want outside of metro Detroit came downtown. “Midtown” was known vacant space, then looked up the Last month, histori- to send their kids to. home to see and experience their as the “Cass Corridor” in those records to determine the square an Thomas Sugrue Today, we have too hometown. days, too. footage. I’m not sure the city itself spoke to the annual many neighborhoods Dan Doctoroff, an “expat” who A favorite observation from a had this kind of data at that time. meeting of the Citizens without hope, populat- was deputy mayor of New York Homecoming expat and corporate The tally: Nearly 50 empty build- Research Council. Sug- ed by people who have City after 9/11, cautiously com- consultant Sara Sefcovic: “Detroit ings in the central business dis- rue, who teaches at the no alternatives. De- pared Detroit to Harlem, which is big enough to matter in the trict, the equivalent in office space University of Pennsyl- troit’s low barrier of started attracting diverse resi- world, but small enough that you 1 to 3 /4 times the size of the Renais- vania, wasn’t opti- entry — especially dents — and many immigrants — can matter in it.” sance Center at that time. We mistic that big down- cheap housing — just in the past decade. The real growth Mary Kramer is publisher of called the package “The Incredible town projects translate might be enough to at- came when federal dollars prop- Crain's Detroit Business. Catch her Hulks.” to neighborhood pros- tract new residents. ping up what existed tapered off, take on business news at 6:10 a.m. Some of those buildings were perity. (My question: What would But good schools are critical. he said. Mondays on the Paul W. Smith show “camouflaged” during the Super Detroit be like without them? An- Last month, Crain’s took a lead “Rebuilding takes patience,” he on WJR AM 760 and in her blog at Bowl XL game in Detroit in 2006, swer: More like East St. Louis.) role in an inaugural event, the De- said. It doesn’t happen in a year or www.crainsdetroit.com/kramer. Roger Penske recalled recently. Sugrue’s right, though. We need troit Homecoming. Former Detroi- an election cycle. E-mail her at [email protected]. Penske marvels at the change today. Fewer empty buildings — a recent Detroit News tally estimated the number to be 13 — and a lot more people on the street. (Thank you, Dan Gilbert, for literally creating a market for downtown real estate.) And last week, the Ilitch family broke ground on their piece of downtown — a hockey arena and lively, contiguous blocks of shops and restaurants connected to it. A hugely important project from the family that was among the first to reinvest downtown. The M-1 streetcar project is tear- ing up Woodward, but when it’s done in 2016, it will connect the dots, from the riverfront to the cultural center and medical complexes. More density. More construction jobs. More permanent jobs in the

TALK ON THE WEB From www.crainsdetroit.com Re: Lowe Campbell Ewald plans uncertain after news of Cadillac move Why does GM not want a De- troit-based luxury car represented in Detroit? It seems like a very poor decision that will only end up cost- ing the consumers more money. Detroit Rock

Not to wish Cadillac any ill will, but moving to California in 1998 didn’t do much to help Lincoln-Mer- cury. Michael Elledge

Re: Work starts on Red Wings arena If I were getting a taxpayer-fi- nanced facility from which I could pocket the proceeds, I would be throwing a party too. Carolyn Mazurkiewicz

The city should just green space the JLA site. It’s a horrible location for redevelopment. David Silverman

Re: Senate bill allowing new McLaren hospital in Oakland attracts foes There is a CON system in this state for a reason. This new hospital doesn’t meet those requirements. So why change them? If there is no need and we have a CON system, then tough luck. If this passes, then you might as well get rid of the CON system completely. LCS 20140929-NEWS--0010-NAT-CCI-CD_-- 9/26/2014 11:54 AM Page 1

Page 10 September 29, 2014 wmich.edu/GoWest Gilbert buys former sound studio building on Griswold

BY KIRK PINHO CRAIN’S DETROIT BUSINESS

Dan Gilbert’s purchase of a small Griswold Street building in Capitol Park marks another real estate deal for a part of Detroit drawing new loft projects and re- habbed office space. Gilbert bought the vacant 8,700- square-foot structure at 1250 Gris- wold St. between Grand River Av- enue and State Street earlier this Download the free Layar App month. Scan this pgpage for inteinteractiveractive contcontentent “Develop- GO WEST. ment plans are not determined, however we will focus on retail PEOPLEPEOPLE COMECOME HERE BECAUSEB THEY’RE LOOKING FOR SOMETHING. It’s not about packing up for the first the car and goinggoing to a ddifferent town. For them it’s about discovery. What they find is a challenge— floor,” said Jennifer Kul- something unexpected—that opens up new frontiers. When you come here, you’ll find there are czycki, vice frontiers already inside you, just waiting to be found. Go West. Discover. Explore. This is one of president of America’s great universities. A lot of people who have become successful—skilled, happy, wealthy communications for and influential—started by heading West. Gilbert’s Rock Western Michigan University. It’s your turn to GRAB THE REINS. Ventures LLC. COSTAR GROUP INC. Dan Dietz, 1250 Griswold St. president of Bloomfield Hills-based Dietz Com- mercial, which represented seller Patrick Harwood, said the sale closed Sept. 18. Harwood, co-owner of Pearl Sound Studios in Canton Town- ship, bought the building 18 years ago and eventually leased it to In- dustry Sound Studio, which moved out about three months ago, Dietz said. “They didn’t have to sell it, but they recognized the development Timothy K. Kroninger in the area,” Dietz said. “There’s been a lot of demand the last four ® months. When the activity started In Your Corner. happening, it became obvious that it was going to be in the path of a lot of foot traffic.” Varnum is pleased to welcome Tim Kroninger The building, which was built in to the fi rm. 1945, was listed for $750,000. “It sold for a fair price,” Dietz ■ Extensive experience in intellectual property, said. contract, corporate and general business law. In addition to recent Gilbert deals in Capitol Park, there is also ■ Works with clients in strategically analyzing, the redevelopment of three buildings in the area by Richard Karp, evaluating, protecting, and enforcing their principal of Lansing-based Karp intellectual property. and Associates LLC Karp plans to turn the 126,000- square-foot building at 1212 Gris- wold into office space for Archdio- cese of Detroit employees and 56 loft-style apartments. Karp’s plans for the 72,000- square-foot Capitol Park Building at 1145 Griswold includes retail/office space and 63 apartments, while the Farwell Building’s plan at 1249 Griswold includes first- floor retail and 83 apartments. In April, Gilbert bought the 42,000-square-foot building at 119 State, the 10,000-square-foot Church Building at 45 W. Grand River and the vacant lot at 28 W. Grand River. Gilbert also owns buildings at 1215 and 1265 Griswold. ■ Metro Detroit ■ Grand Rapids ■ Kalamazoo ■ Grand Haven ■ Lansing Contact Tim Kroninger at [email protected] Kirk Pinho: (313) 446-0412, [email protected]. Twitter: @kirkpinhoCDB 20140929-NEWS--0011-NAT-CCI-CD_-- 9/26/2014 10:35 AM Page 1

September 29, 2014 CRAIN’S DETROIT BUSINESS Page 11

A CONVERSATION WITH WHAT’S BLUE AND GREEN? MSU prof grows profits for school with his blueberry John research, Page 13 Shallman, Wayne State University University research Meet WSU’s innovation rep In May, Wayne State University announced it had recruited two local Making brand names in technology commercialization to beef up its tech transfer office. Kenneth Massey, who has 28 years in biotechnology, most recently as managing director of MicroDose Life Sciences LLC of Farmington Hills and its venture capital fund, was named senior director of Google eyes venture development. John Shallman, who has more than 24 years in tech commercialization, most recently as director of commercialization at Royal What do you think about a Oak-based Beaumont Health System and before that with the Michigan Economic Development Corp., was doctor who takes his eyes named senior director of licensing. Crain’s reporter Tom Henderson talked with Shallman. off the patient during How did you get recruited? I met Joan Dunbar (named the head of tech transfer at WSU last year) after I moved surgery? In her search for a back here from New Jersey in 2004 to join the MEDC. This was one of the opportunities where I was absolutely not solution, an OU medical looking to move on. I was very happy at Beaumont. But the scenario as Joan explained it — that she was revamping the department, that Steve Lanier was student turned to coming in as the new vice president for research, that they were building an environment that didn’t exist before — it Google Glass. was a perfect opportunity for me. The state wanted WSU to become more active about tech transfer; what’s the plan? In the past, not enough was getting out to the street, so it was a department ripe for growth. The key thing is, we’re creating a foundation that didn’t exist. So how are things going? I’m still kind of PHOTOS BY GLENN TRIEST getting to know all the department Florence Doo, a second-year medical student at Oakland University, listens to Jeffrey Fischgrund, M.D., during a spinal surgery at Beaumont Hospital. Both heads, but there’s pent-up demand to are wearing Google Glasses as a demonstration of how surgeons may be able to operate in the future without having to look away from a patient to see vitals get things licensed. You also have to and other information on video screens. Doo has formed a company to make the Google Glass device. groom the faculty about what industry’s needs are. We’ve got some fascinating things going on you can build nice BY TOM HENDERSON The scope of the device’s capabili- portfolios around — metal deposition CRAIN’S DETROIT BUSINESS ty is broad. Surgeons would be able and chip manufacturing; exciting things to access CAT scans, MRIs and X- in cell isolation, where there’s a real lorence Doo, a second-year rays that were taken previously and interest and a need to be able to harvest medical student at Oakland look at current X-ray or camera- certain kinds of cells and isolate them, University, has her hands full. generated images of an operation in which could potentially lead to some progress, including computer-as- pretty big deals near-term; and on the Not with school, although sisted navigation. software side, health care IT is one of that certainly keeps her busy, the things Joan asked me to chaperone. F Supporters say it’s invaluable for but with starting and growing a medical teaching hospitals to be able to There are software research tools for show, through the Internet, images drug discovery, for example. We have device company that plans to use Google applications coming out there that are Glass to deliver heads-up displays to of an operation in progress to students anywhere. Currently, those almost fully formed products already, surgeons. and software can be marketed much images are available on various faster than other biotechnology. The benefit? Surgeons don’t have to take screens throughout the operating Such as the software Patrick Hines, a their eyes off their patients during proce- room, forcing surgeons to continu- doctor at Children’s Hospital and a dures to look around at video screens scat- ally focus their attention away from the patient. Wayne State researcher, has tered around the operating room displaying Doctors and nurses focus on a single patient during surgery developed? (See related story, Page the information they need. – but they also monitor TV screens scattered about the Doo, who turned 25 this month, 15.) The fascinating part of what he’s Surgeons can pull up important images operating room. first drew attention for her idea of doing is dealing with the unmet needs such as CAT scans — and even transmit im- keeping surgeons focused on patients of the African-American community and ages of the operation in progress for teaching OU Inc., Oakland’s on-campus tech incubator. last May when she finished second in those with sickle cell anemia, which purposes — all while keeping their eyes on the a Google Glass Challenge put on by MedTech often gets overlooked. She’s also in the final stages of negotiating task at hand. Boston, an innovation network. the designing and building of a working pro- She was one of 12 finalists and the only totype and has funding sources lining up to If you know someone medical student, winning a consultation invest as she needs capital. interesting in banking, The big idea with White House Innovations Fellow Nayan finance, technology Doo’s company is called FoveOR LLC — Despite her status as a student at OU, Doo Jain. or biotechnology “fove” coming from the word “fovea,” a spe- is even taking part in weekly classes that The other finalists and most of the 50 who whom Tom Henderson cialized part of the eye for high-acuity vi- provide practical advice and mentoring to entered the challenge were M.D.s. should interview, call sion. “OR” is the abbreviation for operating would-be entrepreneurs. The classes are put After being told she was one of the Google (313) 446-0337 or room. on in Ann Arbor by David Brophy, director write thenderson Glass Challenge finalists, Doo started ap- @crain.com. Doo has the avid support of leading sur- of the Center for Venture Capital and Private proaching OU professors to vet her idea. geons at Royal Oak-based Beaumont Health Equity at the University of Michigan’s Stephen System and is getting support services from M. Ross School of Business. See Google, Page 12 20140929-NEWS--0012-NAT-CCI-CD_-- 9/26/2014 10:35 AM Page 1

Page 12 CRAIN’S DETROIT BUSINESS September 29, 2014 Focus: University Research NEW ARRIVALS

FRACTIONAL AND MANAGED BUSINESS AVIATION PROGRAMS. Google: Docs see patients, vital signs SERVING ALL SOUTHEASTERN MICHIGAN. ■ From Page 11 “It seemed like it would be valu- “I want to keep it at Beaumont,” ed eye tracker. able and someone was needed to Doo said moments after observing a The actual cost was $178, she get this done,” said Doo, who has spinal surgery in the operating said. filed one provisional patent on her room at the behest of Jeffrey Fis- “I discovered I could build idea. “I asked myself, ‘Am I the chgrund, M.D., one of her mentors, things,” Doo said. “But it caused a right person?’ I said: ‘You know Beaumont’s chief of orthopedic crisis. I thought maybe I should go what? You might as well try it.’ ” surgery and chairman of the de- into engineering instead of med- partment of orthopedic surgery at ical school.” OU’s William Beaumont School of Med- But the crisis passed for Doo, a Testing the market icine. native of Huntington Beach, Calif., Based on her success at the Glass A reporter and a photographer who got her undergraduate degree Challenge, Doo was asked to go to had been invited into the O.R. to in neuroscience in 2010 at Wellesley New York City this month to meet watch the surgery, too, to see how College outside Boston and her with one angel investor. She said the handful of doctors and nurses master’s in medical sciences from KING AIR B200 she had feelers from a West Coast used the various TV screens scat- BU in 2012. tech network asking her whether tered about and to get a feel for Beaumont’s Almany said it was she would be willing to move to Cal- how Google Glass would be of val- too early to start negotiating terms ifornia if funding were available. ue during surgery. for an investment in FoveOR by Doo said “no.” Though not long “You heard what she just said. BioStar, which is raising its third CORPORATEEAGLE.COM a resident of Michigan, she wants She wants to keep it at Beaumont. and largest fund. Almany couldn’t to grow the company here as a We’ll keep it here,” Fischgrund disclose details because of restric- joint effort with her Beaumont said. tions by the U.S. Securities and Ex- supporters. “I have funds available to me. change Commission but is targeting There’s philanthropy and other between $100 million and $200 mil- sources of money we can tap into. lion, according to The Wall Street It’s a priority to get this funded, Journal. let’s put it that way.” “I’m just mentoring her for “Obviously, Flo’s pretty dynam- now,” Almany said. “If we had ic. She has the drive,” Fischgrund started negotiating terms this ear- said a few days before the spinal ly, it would have been taking ad- surgery. vantage of her. We’ll see how “When I heard about her idea, I things develop, but certainly fund- called her up and had her in the op- ing her at some point is an option.” erating room within 48 hours. Not What needs to be developed now having to lift your head up from is a working prototype. the patient takes you to the next Through Amy Butler, OU Inc.’s level of confidence.” executive, Doo was introduced to Word spread quickly among de- Christie Coplen, partment chairs at Beaumont president of about what Doo had in mind, Fis- Royal Oak-based chgrund said. “We all started out- Versicor LLC, a bidding each other — ‘No, I want maker of elec- her to work with me.’ ” he said. tronic control Another of her mentors is units for med- Steven Almany, a cardiologist at ical device man- Beaumont and an associate profes- ufacturers that sor at the OU medical school. He is also provides also one of the managing directors consulting, engi- WE’RE SHAPING THE FUTURE Coplen of Petoskey venture capital firm neering services BioStar Ventures LLC. and prototyping for startups. “Florence came to me and asked Coplen is helping FoveOR with OF BUSINESS IN MICHIGAN. me if her idea was something of val- its prototype plans. Versicor, she ue,” Almany said. “She gave me a said, also will help Doo pitch to po- Our award-winning programs and innovative research in cutting-edge fields road map of what this would look tential investors. like. “A minimally viable product help students make an impact and allow our corporate partners to thrive. “There’s a long way to go, obvi- will involve some hardware inter- ously, but this is the kind of thing face with Google Glass and soft- Together, our talented faculty, students and alumni make that will be the future of medi- ware to pull data down from the cine.” hospital, manipulate it into the University of Michigan-Dearborn a leader in business education. cloud and then pull it back down into Glass,” she said. Learn more at cob.umd.umich.edu. Tapping the experts Surgeons would be able to oper- UM’s Brophy is a director of ate the system and change images BioStar Ventures. When Almany on the heads-up display with ver- told him what Doo was up to, Bro- bal commands. phy said, he suggested she apply While Google Glass is where for his weekly practicum, which Doo is starting, she said it will be meets for three hours each important to have FoveOR’s tech- Wednesday. About 50 would-be en- nology work with head-up displays trepreneurs applied for the cur- besides Google’s — such as that de- rent class and 15 were accepted, in- veloped by Oculus, a maker of vir- cluding Doo. tual reality headsets now on the “She’s smart and she’s an inno- market; Epson, which markets vator,” Brophy said. “She built a Moverio smart glasses; and Aveg- $10,000 device for $250 when she ant Corp., an Ann Arbor-based was at Boston University. maker of 3-D headsets that raised a “Her head is in the right place. $4 million round of venture capital She’s already dealing with intel- in June. Avegant’s headsets are lectual property and negotiating meant for video gamers as well as contracts, and the space she wants for watching any video source on to be in is quite exciting.” mobile devices, including stream- The $250 device was a reference ing video. to a device Doo cobbled together Said Doo: “We’re starting with during graduate school at BU to Google Glass, but we’ve got to be track the eye movements of video device-agnostic. We can’t just fo- game players for a neuroscience cus on Google.” class. She used open-source soft- Tom Henderson: (313) 446-0337, ware, two Web cameras and a pair [email protected]. Twitter: of lab goggles for her head-mount- @tomhenderson2 20140929-NEWS--0013-NAT-CCI-CD_-- 9/26/2014 10:36 AM Page 1

September 29, 2014 CRAIN’S DETROIT BUSINESS Page 13 Focus: University Research Graduate programs The berries are blue, the research that change lives! turns money-green for MSU prof Open House MONDAY, OCTOBER 6, 2014 BY TOM HENDERSON 5 – 7 p.m. CRAIN’S DETROIT BUSINESS ROOM 2102 IN THE MAIN ACADEMIC BUILDING James Hancock has a passion for blueberries. And a passion for making them better. Citing the six new varieties of blueberries that Hancock has developed over the years as a professor of Graduate School horticulture at Michigan State Univer- TO RSVP OR FOR MORE INFO: sity — not to mention the $6 million Sharon Urso, 734-432-5739 in royalties that his varieties have [email protected] generated for the school since 2003 madonna.edu/gradopenhouse — Hancock has been awarded the MSU technology transfer achieve- BUSINESS t CRIMINAL JUSTICE t EDUCATION t HIGHER ED & STUDENT AFFAIRS t HISTORY ment award for 2014 by the school’s HOSPICE t HUMANE STUDIES t LEADERSHIP t NURSING t PASTORAL MINISTRY t PSYCHOLOGY t TESOL tech transfer office. Besides the royalty revenue, the recognition is a nod to decades of advancements. After 14 years of trial and error by Hancock and his team, in 2004 MSU released three new varieties of high-bush blueberries — the Drap- er, Liberty and Aurora. It released a THE MILLER LAW FIRM Changing the Odds in our Clients’ Favor fourth variety, the Huron, three years ago, and this year has released two more, the Calypso and Osorno. Each variety has its own patent. Distributors collect a 30-cents-a- bush royalty for each bush they sell to their growers, with all of that money going to MSU. While the intent is to extend the growing season for blueberries and to extend their range — the Osorno, for example, was named for a city in Chile in a hot climate that tradition- al high-bush blueberries wouldn’t tolerate — Hancock has a more KEVIN W. FOWLER The Miller Law Firm is Recognized mundane reason to do what he does. By creating six varieties of blueberries, James Hancock has generated Forget extended growing seasons $6 million in royalties for Michigan State University. as a Leader in Complex Business Litigation and forget extended ranges, Han- cock said the real motivation for his Berry Blue Farms & Nursery LLC also Q Automotive Supplier Counseling Q Commercial and business lawsuits work is “for better fruit, better qual- VERY BERRY have breeding agreements with Q Employment litigation Q Shareholder and partnership disputes ity.” MSU allowing them to use Han- Referral fees honored on contingency fee cases Blueberry work began at MSU in According to the Michigan Ag cock’s varieties to create new vari- the early 1960s when horticulturist Council: eties that can expand into hotter cli- 950 West University Drive, Suite 300 248-841-2200 millerlawpc.com Stanley Johnson, best known for de- The state has the largest mates. Rochester, Michigan 48307 veloping the popular Red Haven blueberry crop in the nation, with a 2013 harvest of 114 million In 2004-05, licensing agreements peach, created the Northland and were concluded with distributors Blue Haven blueberry varieties. pounds valued at $122.7 million. Blueberries are grown on 600 that covered Canada and South But blueberry development family farms in the state. America. In 2012, agreements were kicked up a notch after Hancock Michigan yields an average of extended to South Korea, with joined the school in 1979. 5,000 pounds of blueberries per Japan, New Zealand and Australia Before MSU released his first acre on the almost 21,000 acres gaining coverage in 2013 and China three new varieties, the dominant devoted to them. this year. varieties in Michigan were more The state has been the No. 1 “Dr. Hancock’s legacy of blue- than 50 years old. The old varieties producing state for blueberries for berry breeding has increased the were harvested at the same time, 70 years. access to healthy, antioxidant-rich were difficult to harvest by ma- Blueberries are regarded as the fruit for families around the chine and did not store well. best source of antioxidants, are a world,” Rich Chylla, executive di- The Liberty has a late harvest remedy for gout because of their rector of MSU Technologies, said in season, from mid-August into Sep- inflammatory-fighting polyphenols, a news release about Hancock’s tember, and the Aurora is even lat- have only 80 calories per cup, are award. MSU Technologies is a tech high in vitamins A and C, and are a er. All store well and can be har- transfer arm of the university. vested by machine. good source of manganese for bone “Pairing that with the multimil- Today, Hancock’s first four vari- development and dietary fiber. lion-dollar impact it’s made for eties account for about 10 percent — Tom Henderson growers across Michigan and in- of worldwide acreage of high-bush ternationally, the strength of his blueberries. er” for farmers because its in- research program has created a Oregon-based Fall Creek Farm & creased size and firmness make it win-win for everyone involved,” Nursery Inc., the world’s leading cheaper to pick and easier and Chylla said. blueberry nursery stock company, cheaper to process. distributes MSU’s varieties to its The Liberty, while not as big or Hancock, 64, said he is cutting customers. Dick Mombell, Fall as firm and therefore not quite the back his workload at MSU but still Creek’s commercial sales manag- grower’s favorite, “is the people’s will be tinkering with blueberries er, said the MSU varieties have di- choice when it comes to taste, no in the years to come. rectly led to an increase in acreage doubt about it,” he said. “I wouldn’t call it retiring,” he devoted to blueberries in the Pacif- The Aurora’s strength is that it said. “I’ll be around half time.” ic Northwest. extends the growing season well Tom Henderson: (313) 446-0337, Mombell said the Draper line into September. [email protected]. Twitter: “has been a dramatic game-chang- Fall Creek and Florida-based @tomhenderson2 20140929-NEWS--0014-NAT-CCI-CD_-- 9/26/2014 10:37 AM Page 1

Page 14 CRAIN’S DETROIT BUSINESS September 29, 2014 Focus: University Research SHAPING A RESURGENT CITY Helping algae grow has become AND STATE. a growth industry for MSU spinoff

Grand Valley State University is developing the talent and BY TOM HENDERSON resources to help re-energize Detroit and Michigan. Our Detroit CRAIN’S DETROIT BUSINESS Center at Madison and John R supports the services Grand Valley With distributors now in place to provides in metro Detroit. In addition, our College of Education cover major world markets, rev- offers in-service training and graduate degree classes to teachers enue should start spiking later this employed in the charter schools authorized by Grand Valley. Our year for Phenometrics Inc., a Michigan charter schools staff provides advice and oversight to charter State University spinoff that makes bioreactors for growing algae. school boards and staff -- the kind of help that places Grand “We’ve loaded the cannons and Valley charter schools among the state’s top performers. And, our now we’re closing deals,” CEO small business and technology development service helps new Michael Chaperian said. “The plan and existing small businesses to succeed, creating jobs and a year ago was to take our reactors economic stability in Detroit and everywhere in Michigan. to global markets, and that’s what we’ve been up to.” Visit online or call (800) 748-0246 to learn more about the Chaperian said the company, innovation and creativity that is Grand Valley State University. which was founded in 2010 and began operations in 2011, now has independent distributors for China, India, Australia, Europe and Cana- Grand Valley’s Detroit Center da. “We didn’t want to do direct sales. As a small company, that is

very challenging,” he said. “We’ll KEVIN W. FOWLER still sell direct to the U.S. market, How did testing algae become a business for Michael Chaperian, CEO of but that’s about it.” Phenometrics Inc.? Turns out algae helps make nutraceuticals, cosmetics and Phenometrics, which employs biofuels; helps with waste removal and is attracting federal grant money. four, sells its reactors, which are about the size of a coffee maker, for MSU Technologies to commercialize In 2010, the Michigan native $10,000 in the U.S. and for $14,950 in the work of David Kramer, the moved back to the state and began other countries. Chaperian said John A. Hannah Distinguished consulting for Spartan Innovations. Phenometrics has no U.S. competi- Professor in photosynthesis and “Phenometrics was based on a tors, with its main competition a bioenergetics in the department of great idea and had a very good pro- company in the Czech Republic biochemistry and molecular biolo- totype, and there was tremendous named Photo Systems Instruments, gy. Work was performed under a demand for its product, but it need- whose reactors sell for $30,000 to grant from the National Alliance for ed management experience,” said $40,000. the Advancement of Biofuel and Bio- Chaperian, who officially joined the Phenometrics generated rev- mass Consortium, which is funded company as CEO in January 2013. enue of about $1 million last year by the U.S. Department of Energy. Some of Phenometrics’ customers and will exceed that a bit this year, Kramer’s work at MSU was con- have been its best marketers, too. with a sharp increase expected ducted in the DOE Plant Research For example, Aurora Algae Inc., a Hay- next year, Chaperian said. In Feb- Laboratory. His work has also ward, Calif., company that makes al- ruary, the company hired Timothy been supported by the National Sci- gae-based products for the pharma- Alavosus, a 17-year veteran of the ence Foundation, the National Insti- ceutical, nutrition, aquaculture and biotech industry, as vice president tutes of Health and the U.S. Depart- biofuels markets, conducted an in- of sales and marketing. ment of Agriculture. ternal study to document how using Phenometrics’ photo bioreac- In 2012, Phenometrics got Phenometrics’ bioreactors in re- tors allow academic researchers $50,000 through the Michigan Eco- search labs actually helped the com- and for-profit companies to test al- nomic Development Corp.’s Michi- pany’s field work. gae growth in the lab under the gan Microloan Fund Program, Aurora, which lists Phenomet- Tablet Users: same conditions algae will face in which is administered by Ann Ar- rics as a partner on its website, Have you seen what’s NEW at large outdoor ponds. bor Spark. gave the company rave reviews crainsdetroit.com? The reactors mimic such envi- Since then, Phenometrics has and later let it use the results as ronmental or production condi- been able to fund growth through part of a presentation in June at tions as temperature, light intensi- sales — an enviable position for a the annual International Confer- ty, turbidity (clarity) and carbon tech startup. The company is prof- ence on Algal Biomass, Biofuels & dioxide through algae’s various itable and hasn’t had to take on Bioproducts in Santa Fe, N.M. growth phases to know what helps any equity capital, either in the Among the conclusions Aurora or hinders growth. form of angel or venture capital in- reached were that Phenometics’ Algae is used to make nutraceu- vestments, Chaperian said. equipment “allows selection of the ticals — products deemed a cross He jokes that after a career best-producing strain for produc- between food and medicine — fish spent mostly with drug discovery tion for a local environment, pro- food and animal feed, cosmetics startups, “I finally went to work vides for rapid optimization of pro- and biofuels. Algae is also used in for a for-profit company. In drug duction conditions (and) provides waste removal and is an area of discovery, you can spend hun- a clear path to scale up, reducing growing research and support dreds of millions of dollars and capital expenditure, risk and time through federal grants. never get to market.” while optimizing growth, produc- “Asia and India, in particular, Chaperian began working with tion and return on investment.” are huge markets for algae byprod- Phenometrics in 2012 as a consul- Peter Ralph, director of plant ucts,” Chaperian said. tant at Spartan Innovations, a non- functional biology and climate He said nondisclosure agree- profit funded by the Michigan State change at the University of Technology, ments prohibit him from identify- University Foundation to help com- Sydney in Australia, uses a bank of ing some of his clients, but they in- mercialize university research. Phenometrics reactors in the lab of clude biofuel and aqua-farming Chaperian, who has a Ph.D. in bio- the school’s Algal Biofuels Group. companies in Europe and petro- chemistry, was the director of On a video on the UTS website, chemical and biofuel companies in biotechnology development at Ari- one of Ralph’s team members Australia, India, Japan, Argentina, zona State University from 1997 to 2002. points to the reactors and de- Israel, Singapore, China and Abu There he helped launch OmniScience scribes them as “state-of-the-art Dhabi. Pharmaceuticals Inc. Chaperian then technology.” Ralph said the biore- Another Israeli customer is us- moved to Boston and helped a start- actors have helped his team “push ing Phenometrics’ bioreactors to up there, SelectX Pharmaceuticals Inc., the envelope of algae research.” improve its processes for making raise $45 million in venture capital Tom Henderson: (313) 446-0337, fish food, Chaperian said. to develop antibiotics to fight hospi- [email protected]. Twitter: Phenometrics was licensed by tal-based infections. @tomhenderson2 20140929-NEWS--0015-NAT-CCI-CD_-- 9/26/2014 10:37 AM Page 1

September 29, 2014 CRAIN’S DETROIT BUSINESS Page 15 Focus: University Research WSU doctor’s research set to be the lifeblood of a startup

BY TOM HENDERSON ongoing research and development. of targeting the needs of patients cides what product to make. He’s as CRAIN’S DETROIT BUSINESS Whether Hines receives the with sickle cell disease. Because of sharp as it gets, and I have no doubt grant will influence where Func- the sickle shape of cells, blood does- he’s going to be a success.” Patrick Hines is moving full tional Fluidics establishes an of- n’t flow well through vessels. Hines has recruited a COO and a speed ahead as he adds entrepre- fice and lab. He has been talking “Patrick is a remarkable guy chief science officer to help run neur to his other titles — which with TechTown Detroit, the WSU-af- with a brilliant mind,” said Adrian things day to day while he concen- are doctor in the intensive care filiated incubator in Midtown. Fortino, a vice president of Invest trates on his twin day jobs of re- unit at Children’s Hospital of Michi- Mast Therapeutics confirmed Detroit and a director of its two early search and critical care medicine. gan in Detroit and assistant profes- that it was a customer but declined stage investment funds, the Detroit But he plans to be active in the com- sor of pediatric critical care medi- to discuss specifics. Hines, a mem- Innovate Fund and First Step Fund. pany in a role yet to be defined. cine at Wayne State University. ber of last October’s class of Hines got his medical degree John Cunningham is the COO, a In June, the WSU board of gov- Crain’s 40 under 40, said a nondis- and Ph.D. in pharmacology from former mentor-in-residence at the ernors granted approval for Hines closure agreement prohibits him the University of North Carolina. He tech transfer office at Wayne State to license his research at the from discussing details. joined Children’s Hospital in 2009. who had been asked to mentor school for a startup company, Func- The idea is for doctors to use a Fortino has advised Hines on Hines when he was thinking of tional Fluidics LLC. In July, before tiny amount of a patient’s own blood turning his research into a compa- starting a company. Cunningham, the legal paperwork with WSU had TOM HENDERSON and observe how it flows through ny and is willing to be an investor in turn, recruited Ke Liu, an engi- been signed, the company had When he wasn’t working as a doctor at Children’s Hospital of Michgan or small channels cut into a plate about down the road. What Hines has neer with a background in mi- landed its first customer, doing as a professor at Wayne State the size of an index card that’s at- now is a fledgling contract re- crofluidics, as science officer. contract research for San Diego- University, Patrick Hines was creating tached to a microscope and PC. search organization, the kind of “I was really impressed with based Mast Therapeutics Inc. a company, Functional Fluidics. Hines has developed a way to service organization that invest- Patrick out of the gate. He’s a dy- Functional Fluidics’ microflu- have the blood pulse through the ment funds tend to avoid. namic person with a great back- idic devices help drug companies year and $750,000 next. channels similar to the way it puls- Once he builds up a consistent ground and great people skills,” evaluate how drugs designed to Even before Hines got to the es through the patient’s body. revenue stream by helping other Cunningham said. “He’s identified fight such things as deep-vein point of asking the board of gover- The doctor can evaluate how companies do their research, a real need in the marketplace, thrombosis and pulmonary em- nors for a license, his research was fast or slowly the blood clots and Hines and his team plan to morph which was his own personal diag- bolisms may increase the unwant- being funded by Biogen Idec Inc., a decide what drug to use, if neces- Functional Fluidics into a maker nostic need that he’s been strug- ed side effect of causing blood clots. large pharmaceutical company sary, to straddle the fine line be- of microfluidic devices. gling to find a solution for. They also help individual physi- based in Weston, Mass. He also has tween too much bleeding and too Once the company becomes a de- “What will be interesting is how cians assess which drugs to use to received funding from private much clotting. vice maker, too, it becomes a wor- many other people share his need. treat patients when clotting is a foundations and the National Insti- Currently, Functional Fluidics thy target of venture capital, Forti- It’s starting to look as if there are a concern, particularly African- tutes of Health and expects to hear buys the microfluidic plates off the no said. “They need to find a sizable number of clinicians who do Americans with sickle cell anemia. soon whether he will receive a shelf from San Francisco-based Flux- product, eventually,” he said. share it. We’ve got customers wait- Functional Fluidics projects phase-one Small Business Innova- ion Biosciences Inc. But Hines said But for now, “Patrick’s doing it ing for us to deliver our services.” revenue from work for Mast Ther- tion Research grant of $225,000 the company’s business plan calls the old-fashioned way,” Fortino Tom Henderson: (313) 446-0337, apeutics and other pharmaceutical from the National Heart, Lung and for it to eventually design and build said. “He’s getting a critical rev- [email protected]. Twitter: companies at about $100,000 this Blood Institute of the NIH to support its own devices, with a main focus enue stream coming in while he de- @tomhenderson2

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Page 16 CRAIN’S DETROIT BUSINESS September 29, 2014 Focus: University Research Do your homework? Startup offers to track that, other educator tasks

BY TOM HENDERSON CRAIN’S DETROIT BUSINESS

A company aiming to turn a long- time nonprofit educational service at Michigan State University into a for- profit company is raising a Series A venture capital round of $4.5 million. CourseWeaver Inc., incorporated in May 2013 and launched this past TEXTBOOK LEADERSHIP January, allows teachers and professors to customize their course ISN’T JUST LEARNED materials and track students’ progress on assignments online. It also offers Web hosting services to FROM TEXTBOOKS. universities that would rather out- source course and homework man- Getting a master’s in business or organizational leadership agement. KEVIN. W. FOWLER administration isn’t just about the lessons you learn. It’s The company’s roots go back to CEO Robert Fulk said CourseWeaver expects to hire 15-20 additional employees 1992 when CAPA, or computer-as- by the end of this year, adding to the four currently there. about the values you take away. Concordia University Ann sisted personalized approach, was Arbor’s Christ-centered education develops the kind of leaders piloted by a small physics class at tion to develop a complete learning generate revenue of $700,000 this businesses need now more than ever. MSU. It has evolved over the years management system. year. The company expects to be into an ability to provide students By the time CourseWeaver was profitable in 2016 on revenue of $9.6 With flexible scheduling, online courses and multiple locations, personalized quizzes and exams incorporated last year, the system million and targets revenue of $50 CUAA makes growing those skills easier than ever before. and to give students instant feed- was being used by more than 160 in- million in 2018. back through the Internet on as- stitutions, from middle schools to In February, CourseWeaver signments in progress. universities such as Ohio State Uni- bought Haslett-based EduCog LLC, a The CAPA project morphed into versity, the Massachusetts Institute of company founded in 2004 to offer LON-CAPA in 2001 — the LON Technology and Harvard University. universities and K-12 schools host- Contact us to learn more. degree.cuaa.edu standing for LectureOnline — as a CEO Robert Fulk said Course- ing, support services, textbook result of a $4 million grant in 2000 Weaver is now up to 250 institutions content conversion and training to from the National Science Founda- in nine countries and is on track to support LON-CAPA. This month, the company signed a contract with the state’s Michigan Virtual University to deliver the new Web platform currently being developed by CourseWeaver to all K- 12 schools in the state. CourseWeaver has four employees and is housed in a small incubator space in MSU’s Technology In- novation Center in East Lansing. Fulk said he hopes to close his $4.5 million fundraising round {Our two cents.} within 60 days and has been negotiating leases for much larger off- campus space. He expects to hire 15-20 employees, including 10 software engineers, by the end of this Sign up for a Plante Moran Webinar year. “We’ll have two main revenue Fall is finally here and Plante Moran is prepared streams,” Fulk said. “The first, with a webinar series that you do not want to which we’re already doing, is from charging schools for Web hosting, miss. With topics ranging from fraud prevention service support and integration to year-end tax planning, each session is with our platform. “Eventually, we’ll also collect li- CPE-approved.* Double-booked? Don’t worry. censing fees from students using Visit our archives and enjoy the presentation customized course content.” at your convenience. Sign up today and find Hugo Braun, a partner in Ann Ar- bor-based North Coast Technology In- out why Plante Moran’s webinars offer vestors LP, is vetting CourseWeaver and said his venture capital firm may join the round. a higher return on experience. “The education market is in- credibly hot right now and is ripe for technology innovation,” he said. “It’s kind of like health care, where everyone knows that what’s been done is inefficient but it’s been hard to change. “What’s interesting about CourseWeaver is it’s coming out of an environment where they’ve al- Register at webinars.plantemoran.com. ready developed a suite of products and have a lot of universities that * Plante Moran is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor have been using it for years, albeit of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have it for free. The trick is converting final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors them to paying customers.” may be submitted to the National Registry of CPE Sponsors through its website: www.learningmarket.org. Tom Henderson: (313) 446-0337, [email protected]. Twitter: @tomhenderson2 20140929-NEWS--0017-NAT-CCI-CD_-- 9/26/2014 10:38 AM Page 1

September 29, 2014 CRAIN’S DETROIT BUSINESS Page 17 UAW-Lear fight shows stubbornness of two-tier wage hold

BY DAVID BARKHOLZ 170 workers for the subassembly catch veteran workers, Dias said. CRAIN NEWS SERVICE plant from a nearby parts plant Canadian auto workers have re- This is a sticky problem for the UAW. I that currently supplies Lear. fused to accept a two-tier system. The United Auto Workers this “ Those hires will immediately see Cole said the UAW accepted a summer vowed again to end the don’t think we’ll see the their wages jump to $11 an hour two-tier system at the Detroit 3 in practice of paying workers in the from $8.50 today. 2007 to provide cost relief and en- same plant different wages for the elimination of tier two this time And all 300 subassembly work- courage the carmakers to bring same work. But a contract signed ers who eventually staff the Lear parts-supplier jobs back into De- last week at a Lear Corp. seat plant around (in contract talks). subassembly plant will have first troit 3 plants at more competitive in Indiana illustrates just how dibs to transfer to the higher-wage wages. hard it will be to eliminate so- Maybe some erosion of it. seat assembly plant when jobs After the recession, though, the called two-tier ” open, the UAW said. use of two-tier wages exploded be- wages. David Cole, Center for Automotive Research yond what was originally expect- When the four- ANALYSIS ed as the Detroit 3 quickly ramped year agreement Tier creep Subassembly workers will earn a a combined 130,000-person UAW up production to what now is pre- was announced, it appeared the New UAW President Dennis maximum of $15.25 at the end of workforce that is now 25 percent recession levels, Cole said. The UAW had put all 730 workers at the Williams said tackling two-tier the contract with hires starting at two-tier workers earning about $16 new hires were at lower wages. plant on a track to earn the maxi- wages is a prior- $12 an hour. an hour in wages versus $28 an What further opened the door to mum wage of $21.58 by contract ity of the union end. The vast majority of the work- This balancing act that eliminat- hour for legacy workers, Cole said. two-tier wages was the union’s when he was agreement at General Motors ers were two-tier workers earning ed two-tier wages in one plant only Closing that hourly gap com- elected in June $11 to $14 an hour. to re-establish it at another demon- pletely is probably too expensive Corp.’s Orion Assembly plant to al- at the UAW Con- low most of that workforce to be Then, more details became strates why two-tier wages are in one four-year contract cycle, stitutional Con- available from Southfield-based likely to survive the UAW-Detroit Cole said. That’s especially true if paid less to permit GM to build its vention in De- subcompact Chevrolet Sonic there, Lear and the union. The UAW ex- 3 contract negotiations next year, the Detroit 3 try to keep their over- troit. said David Cole, chairman emeri- all hourly labor cost increases at Cole said. planation of the contract omitted a Two-tier tus of the Center for Automotive Re- about the rate of inflation, which “It kind of got out of hand,” he key concession the union had wages are divi- search in Ann Arbor. they achieved in the 2011 contract said. made to Lear to keep the contract sive on the fac- affordable for the supplier. negotiations. Williams At Chrysler Group LLC today, al- tory floor be- That is, about 120 of the work- Lear also said cost increases at most 40 percent of the hourly cause new employees earn lower ers at the seat-assembly plant Erosion, not elimination Hammond, Ind., will rise “consis- workforce receives lower, two-tier wages and benefits than veteran were given a new job classifica- “This is a sticky problem for the tent with cost-of-living” under the wages. At this point, it’s going to tion of “subassembly” worker. UAW,” said Cole, who has wit- new contract. co-workers for doing the same be tough returning to a one-tier They were told they would move nessed decades of Detroit 3-UAW The UAW sees the contract as a jobs, said Jerry Dias, president of system when even a Lear plant in the coming weeks to a different contract talks. “I don’t think we’ll win because all workers will get Unifor, the successor union to the with 720 workers couldn’t achieve plant in the area and not be paid see the elimination of tier two this raises, including the employees re- Canadian Auto Workers. it, Cole said. the higher wages of their co- time around. Maybe some erosion designated as subassembly work- It is especially onerous because He added: “You’re seeing the dif- workers in the seat-assembly of it.” ers. the new hires are on a different ficulty of getting back to parity.” plant. But they would get raises: The Detroit 3 are profiting from Also, Lear will be hiring about compensation track and can never From Automotive News

Michigan exporting opportunities are easier than you think

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Global Trade Days connects you one-on-one with experts from Brazil, Canada, China, Mexico and UAE to begin your global THURSDAY, OCTOBER 16 8:30 a.m.–4:30 p.m. export expansion to these dynamic markets. Learn about: Management Education Center, Troy • Assistance with vetting, ﬁnding foreign buyers, market research and appointment setting FRIDAY, OCTOBER 17 8:30 a.m.–4:30 p.m. • Regulatory, customs and duty assistance • Trends in top export markets Suburban Collection Showplace Diamond Center, Novi • Success stories from participating Michigan companies Pre-scheduled one-on-one meetings only • Upcoming Michigan trade missions and events

For more event and registration information, visit michiganbusiness.org/global-trade DBpageAD_DBpageAD.qxd 9/18/2014 3:19 PM Page 1

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At Brooks Kushman, we are committed to INNOVATION. Recognized as a leader in patent prosecution strategies, intellectual property litigation, and trademark protection, our attorneys and agents strive to meet our clients’ evolving needs. The depth and technical background of our professionals allow us to deliver unprecedented IP strategies.

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September 29, 2014 CRAIN’S DETROIT BUSINESS Page 19

CRAIN'S LIST: INTELLECTUAL PROPERTY LAW FIRMS Ranked by number of IP lawyers

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Crain’s Detroit Business was proud to convene The Detroit Homecoming Sept. 17-19

where 160 ex-pats returned to Detroit to reconnect and reinvest. Many people and

companies contributed to the success of the program and we are grateful. The kickoff

event was only the beginning. These former Detroiters are already creating plans to make

a difference and we are looking forward to following their successes in the days to come.

HOST COMMITTEE: MARY SUE COLEMAN CHRISTOPHER ILITCH RIP RAPSON EX-PAT HOSTS: president, University of Michigan president and CEO, Ilitch Holdings, Inc. CEO, Kresge Foundation MITCH ALBOM RICHARD BARON author/radio host/columnist SHERY COTTON JOHN C. KENNEDY WALTER ROBB co-founder and chairman, Meridian Health Plan president/CEO, Autocam Medical co-CEO, Whole Foods McCormack Baron Salazar TONYA ALLEN CEO, Skillman Foundation MIKE DUGGAN SERGIO MARCHIONNE NANCY SCHLICHTING MIKE JBARA Mayor of Detroit chairman and CEO, Chrysler Group LLC CEO, Henry Ford Health System president, Alternative MARY BARRA Distribution Alliance CEO, General Motors Co. DAVID FOLTYN WILLIAM MARTIN LOU ANNA SIMON “We’re ready to buy a business here tomorrow,” chairman and CEO, Honigman president, FirstMartin Corp. president, BRIAN OWENS Warren Buffett, chairman and CEO, Berkshire Hathaway SANDY BARUAH Michigan State University vice president, global head of CEO, Detroit Regional Chamber EDSEL B. FORD II JERRY NORCIA brand strategy, eBay Ford Motor Co. president and MATT SIMONCINI MANOJ BHARGAVA chief operating of cer, DTE Energy president and CEO, ERIC RYAN co-founder, Method CEO of Living Essentials LLC, DAN GILBERT Lear Corporation “Detroit is big enough to matter in the world, maker of 5-Hour Energy chairman and founder, CYNTHIA PASKY CO-DIRECTORS: Rock Ventures/Quicken Loans president and CEO, A. ALFRED TAUBMAN “ I hang around a lot of cool crowds and this was the coolest ever. but small enough that you can matter in it,” DAVE BING Strategic Staf ng Solutions founder, The Taubman Company JIM HAYES Former Mayor of Detroit ROD GILLUM retired publisher, Fortune magazine The genuine connection of Detroiters and the careful selection and Sara Sefcovic, vice president, Sloane & Co. partner, Jackson Lewis ROGER PENSKE M. ROY WILSON recruiting you did created a magical grouping,” MARGE BYINGTON POTTER chair, Detroit Economic Growth Corp. founder and chairman, president, MARY KRAMER Continental Rail Gateway Penske Corp. Wayne State University publisher, Crain’s Detroit Business Jules Pieri, co-founder and CEO, The Grommet

SPEAKERS: ANDY DOCTOROFF DAN GILBERT JERRY NORCIA ANDRA RUSH senior advisor for chairman and founder, president and chief operating of cer, founder, president and CEO, “Detroit needs to be about continuous improvement, MITCH ALBOM transportation initiatives, Rock Ventures/Quicken Loans DTE Energy Rush Group LLC multi-tasking the challenges of today while author/radio host/columnist State of Michigan BERRY GORDY JR. JACQUES PANIS VERONIKA SCOTT “If Detroit was a stock, I’d be a buyer,” continuing to build a culture of success and optimism,” TONYA ALLEN DAN DOCTOROFF founder, Motown Records president, Shinola CEO and founder, Dan Doctoroff, president and CEO, Bloomberg LLP CEO, Skillman Foundation president and CEO, Bloomberg LP The Empowerment Plan Mike Jbara, president, Alternative Distribution Alliance JOHN HANTZ RON PARKER RICHARD BARON JON COTTON founder, Hantz Woodlands president and CEO, GEORGE STEWART co-founder and chairman, president, Meridian Health Plan Executive Leadership Council managing partner, McCormack Baron Salazar JIM HAYES, Woodward SA-PK LLC KEITH CRAIN co-director, Detroit Homecoming CYNTHIA PASKY WITH GENEROUS SUPPORT OF: MARY BARRA chairman, founder, president and CEO, GOV. RICK SNYDER CEO, General Motors Co. Crain Communications Inc CHRIS ILITCH Strategic Staf ng Solutions State of Michigan president and CEO, BRENDA BELCHER, KC CRAIN, Ilitch Holdings ROGER PENSKE, ANDY STEFANOVICH principal, Ben Carson School of executive vice president/ founder and chairman, corporate curator and provocateur Science and Medicine director of corporate operations, GREG JACKSON Penske Corp. Crain Communications Inc chairman, president and CEO, . CHUCK STOKES DTE Energy Strategic Staf ng Solutions Microsoft University of Detroit Mercy RALPH BLAND, Prestige Automotive Group QUINTIN PRIMO III editorial director, WXYZ-TV Ford Motor Co. Skillman Foundation Moosejaw Verizon CEO, New Paradigm Schools NICOLE CURTIS co-founder, Capri Capital Michigan State Housing Development Authority Bank of America Dakkota/Rush Group Family of Companies WXYZ-TV host, Rehab Addict — cable TV show MARY KRAMER BANKOLE THOMPSON Rock Ventures/Quicken Loans Butzel Long University of Michigan SPECIAL THANKS TO

ELI BROAD, publisher, Crain’s Detroit Business RIP RAPSON editor, Michigan Chronicle Chrysler Group LLC Comerica Bank Wayne State University College for Creative Studies founder, The Broad Foundations PETE DAWKINS, president and CEO, JP Morgan Chase Detroit Economic Growth Corp. W.K. Kellogg Foundation David Whitney Building/Whitney Partners retired vice chair, NATHAN LABENZ Kresge Foundation SAM VALENTI III Display Group Deloitte John Kennedy/Autocam Medical Detroit Institute of Music Education WARREN BUFFETT Citigroup Private Bank co-founder, Social Proof president and CEO, Pulse 220 Henry Ford Health Systems/HAP Carhartt Display Group investor WALTER ROBB Valenti Capital LLC Downtown Detroit Partnership Honigman First Merit Bank Epicurean Group MAYOR MIKE DUGGAN NOAM KIMELMAN co-CEO, Goldman Sachs Hudson Webber Foundation College for Creative Studies Ilitch Holdings/Comerica Park GWEN BUTLER, City of Detroit founder, Detroit Food Academy Whole Foods Market FRANK VENEGAS Ilitch Holdings, Inc. KPMG Miller Can eld Michigan DNR/Globe Outdoor Activities Center president and chief operating of cer, chairman/CEO, Ideal Group Capri Capital MICHAEL EVANS KEVIN NIXON JALEN ROSE Lear Corp. Lambert Edwards & Associates Penske Corp. Premier Creative Group senior developer/founder, co-founder, Detroit Institute broadcaster, ESPN Meijer Lowe Campbell Ewald Shinola Detroit Pulse 220 Loveland Technologies of Music Education and founder, Jalen Rose Academy Richard and Jane Manoogian Foundation Michigan State University/Broad College of Business Talmer Bank and Trust Rock Ventures/Quicken Loans DBspreadAD_DBspreadAD.qxd 9/25/2014 1:25 PM Page 1

Crain’s Detroit Business was proud to convene The Detroit Homecoming Sept. 17-19

where 160 ex-pats returned to Detroit to reconnect and reinvest. Many people and

companies contributed to the success of the program and we are grateful. The kickoff

event was only the beginning. These former Detroiters are already creating plans to make

a difference and we are looking forward to following their successes in the days to come.

Page 22 CRAIN’S DETROIT BUSINESS September 29, 2014 With recommendations in, Detroit ready to get leaner

BY KIRK PINHO suggested. In fact, Deloitte was so “We are train- AND AMY HAIMERL engaged with the process that ing internally to THE LEAN TEAM GAME PLAN CRAIN’S DETROIT BUSINESS managing partner Mark Davidoff use (the recom- offered to be the organizer of all mendations) as a Ⅲ Advanced Manufacturing Group LLC, Royal Oak. Traf- Detroit is ready to “Lean For- the activity. framework and fic signs project, to process requests for signs; through ward.” “We were so excited about the look at the ac- the Department of Public Works. The first phase of Mayor Mike opportunity and what was about to tions that were Ⅲ Dawn Thompson, independent consultant, formerly Duggan’s plan to teach and apply be undertaken that we said we will recommended,” of Warner Norcross & Judd LLP, Clinton Township. Fa- lean-management principles to take one project but we will also Cowher said. cilitate obtaining permits for special events and valet city agencies is complete, and the head up a project management of- “Are we going services; through Public Works. teams are looking at Ⅲ Deloitte LLP, Detroit. Find improvements in snow re- fice for all 18 Cowher to implement recommendations for projects,” them? Are we go- moval processes, driver assignments or materials; how to improve 18 Davidoff said. ing to implement some variation of through Public Works. city services. We were so Ⅲ “ The recom- them? Or, when we dig into the data Global Productivity Solutions LLC, Clinton Township. Stream- The mayor excited ... that mendations analysis, maybe some of these rec- line procurement processes; through purchasing division issued a plea are part of an ommendations weren’t necessarily of the Finance Department. for help to we said we ongoing the right actions to take.” Ⅲ Grant Thornton LLP, Southfield. Expedite issuing income business exec- process led by To make building inspections tax refunds; through the General Services Department. utives at the will take one Aimee more efficient, for example, the re- Ⅲ Jama Consulting LLC, Livonia. Speed up securing a cer- Crain’s News- Cowher, the view team recommended that in- tificate of occupancy; through the Buildings, Safety, Engi- maker of the project but we city’s new di- spectors from the Department of neering and Environmental Department. Year lun- rector of lean Building, Safety Engineering and Envi- Ⅲ Mary Martin, city of Detroit. Reduce delays and bureau- cheon at the will also head process man- ronment be sent to properties cracy in business licensing, encourage development and MotorCity Casi- agement, who owned by the same person at the create a one-stop-shop for assistance. Also coordinating no Hotel in up a project dubs it “Lean same time and on a street-by-street other reviews at the Fire Department and Municipal February, asking Forward.” basis. That would cut back on in- Parking Department. them to be a part of management office Cowher, 44, spection response time. Ⅲ Metro-West Appraisal Co. LLC, Detroit. Review methods of lean-process teams to for all 18. is the former In addition, inspectors were rec- maintaining vacant lots, response to complaints and coor- streamline city depart- CEO of Clin- ommended to cite property owners dinating with city developmental agencies; through Gen- ments and engage ” ton Town- more frequently for violations. Ac- eral Services. Mark Davidoff, Deloitte LLP workers. As a result, ship-based cording to the report summary, Ⅲ MPM Consulting, Waterford Township. Increase the 18 teams of city em- Global Produc- the Department of Administrative rate of on-time starts of city buses; through the Depart- ployees and volunteers from 23 tivity Solutions LLC, which was one Hearings received about 600 tickets ment of Transportation. businesses were formed to review Ⅲ of the firms that responded to the from the building department last Osirius Group LLC, Troy; Patriot Systems Inc., Troy. Re- everything from special event per- mayor’s request for help. Last year. If more citations are issued, view the process of following up on complaints about mitting to the procurement process. month, Cowher replaced Mary that would generate more im- lighting and handling repairs; through the Public Light- Now, seven months later, De- ing Department. Martin in the city’s lean post; Mar- provement to residential and com- loitte LLP, which focused on issues Ⅲ Plante Moran PLLC, Southfield. Leading two project tin accepted a job as associate hos- mercial properties. surrounding snow removal, has is- teams, one to streamline site-plan review, through Build- pital director for operations and Recommendations also includ- sued a report that illustrates the ings Safety; and another to review and prioritize pothole repair pro- clinical services for the University ed that site plan reviews should battery of fixes that all 18 teams jects and follow up on citizen complaints; through Public Works. of Michigan Health System in July. be done by the Planning and Devel- Ⅲ Companies on the Plante Moran team: Belfor USA Group Inc., Birm- opment Department instead of the ingham; Karoub Associates Inc., Lansing Township; Mercy Education building department. That “re- Project, Detroit; Wayne County Airport Authority; DAJ Consulting, Laurel, moves the bottleneck that has his- Md. torically impeded project ap- Ⅲ PMC (Production Modeling Corp., Dearborn); University of Michigan-Dear- proval,” the report summary born. Select codes for enforcement and streamline processes, and ex- says. plore revenue opportunities; through Buildings Safety. Things like reorganizing the Ⅲ PricewaterhouseCoopers LLP, Detroit. Reduce the av- building department’s Licensing erage time of hiring and onboarding from 144 days and Permitting Division website to 45 days; through the Human Resources De- and correcting materials online partment. and in print with updated location Ⅲ Vedant Ghang, UM graduate school. Refine the and contact information would process of evaluating and removing diseased trees; also save trips for people applying through General Services. for business licenses, the report Ⅲ Weblyn Group, Northville. Reduce response time to said. So would creating checklists respond to and track IT issues from city employees. for new business owners. Ⅲ Western Michigan University Bronco Force executive education pro- Other areas that will be focused gram, Kalamazoo. Two auto parts replacement projects, for General on are snow removal, potholes and Services and DDOT. public lighting. The common theme: All of them have been points of concern for city business- will be a change to what they have and imagine what all the solutions es and residents for years. been doing for the last however- are, but I guarantee you they will “The architecture of the report many years.” uncover solutions in a 90-day, fo- is driven by things Cockrel cused effort,” Cowher said. that directly affect called the re- The Project Lean review largely citizens, which is a port a good mirrored a similar process Dug- really good thing, and The architecture starting point, gan initiated as CEO of the Detroit things that “ but one that Medical Center. impact the of the report raises a larger “It was just obvious that he city’s ability is driven by issue about (Duggan) was looking for the busi- to function,” city govern- ness community to lean in and be said Sheila things that ment. helpful,” Davidoff said. Aside from Cockrel, a “But at Deloitte, other local companies former Detroit directly affect some point, that sent volunteers included Price- City Council there is this waterhouseCoopers LLP, Plante member and citizens, underlying, Moran PLLC and Metro-West Ap- the founder really big praisal Co. LLC. of Detroit which is a question of The departments reviewed were government relations whether the public works; public lighting; and firm and advocacy really good thing. city is really building, safety engineering and company Crossroads ” organized in environment, as well as others in Consulting Group. Sheila Cockrel, an appropri- its finance and human resources Still, streamlining Crossroads Consulting Group ate manner,” departments, general services, Detroit’s government she said. transportation and information won’t be a cakewalk. And she expects more recom- technology services. “Change is hard,” Cowher said. mendations by the end of the year. Davidoff expects good things “There will be some people who “These are being led by the per- from the Process Lean review. really engage and embrace that op- son who leads each department, to “This is serious business,” he portunity to improve, and it will come up with how we can do this said. “The positives of this first be challenging to others because it better. I couldn’t possibly sit here phase will be infectious.” 20140929-NEWS--0023-NAT-CCI-CD_-- 9/26/2014 10:39 AM Page 1

September 29, 2014 CRAIN’S DETROIT BUSINESS Page 23

CALENDAR THURSDAY LLP. Cobo Center, Detroit. $45 DEC website: econclub.org. members, $55 guests of members, Business Leaders for Michigan CEO OCT. 2 $75 others. Contact: (313) 963-8547; Summit, 8 a.m.,-3 p.m. Nov. 13. Busi- email: [email protected]; website: ness Leaders for Michigan. The third HealthcareNEXT: Using the New Sci- econclub.org. ence of Leading Change to Create annual event, with keynote speaker High-Performance Teams. 7:30-9:30 Inno-vention 2014: A Medical Main Peter Diamandis, chairman and CEO, a.m. Inforum Michigan. With Doug Street Conference. 6:30-8:30 p.m. Oct. X Prize Foundation, and the author of Finton, master trainer for Vital 21, 7:30 a.m.-4:30 p.m. Oct. 22. Medical Abundance — The Future Is Better Smarts, in a workshop on learning Main Street, Oakland County Advan- Than You Think. Westin Book strategies for leading change. Macki- tage. An event showcasing the life sci- Cadillac, Detroit. $125. 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Join the cludes networking reception, confer- then take a behind-the-scenes tour open house Michigan State ence and luncheon; register at of the company headquarters. The Pa- 3373 busch drive - Grandville, MI University basket- medicalmainstreet.com; website: rade Co., Detroit. $20 members, ball coach for a advantageoakland.com. $50 nonmembers (includes continen- plant & office tours * networking * Food special breakfast The Price Is Right: Are You Offering a tal breakfast); preregistration is event. San Mari- Competitive Wage? 11:30 a.m.-1 p.m. required. Contact: Maggie Oldenburg, no Club, Troy. Oct. 21. Automation Alley. A “lunch (313) 596-0482; email: moldenburg@ $15 junior and stu- ’n’ team” with Colby Spencer-Cesaro, detroitchamber.com; website: dent members, research director, Workforce Intelli- detroitchamber.com. rsvp: $25 members, $35 gence Network for Southeast Michi- nonmembers; pre- gan. as she discusses how small- to https://kpopenhouse. eventbrite. com registration re- Izzo medium-sized companies can attract CALENDAR GUIDELINES quired. Con- and retain a skilled workforce. Au- tact: Melanie Davis, (313) 872-7850; tomation Alley Resource Center, If you want to ensure listing online email: [email protected]; website: Troy. Members, $20 advance, $40 at and be considered for print adcraft.org. door; nonmembers, $30 advance, $50 publication in Crain’s Detroit Michigan Energy Forum — Alterna- at door. Preregistration deadline is Business, please use the online tive Fuel Technologies, 5-7 p.m.. Ann Oct. 17. Contact: (800) 437-5100; email: calendar listings section of Arbor Spark. A panel will discuss op- [email protected]; website: www.crainsdetroit.com. Here’s portunities and key issues associated automationalley.com. how to submit your events: with alternative fuel technologies and Inforum BoardAccess Workshop: Kick- From the Crain’s home page, click will touch on opportunities for entre- start Your Board Experience. 1-5:30 “Detroit Events” in the red bar preneurs and technology innovation p.m. Oct. 27. Inforum Michigan. With near the top of the page. Then, occurring in Michigan. Spark Cen- Jennifer Dudley, partner, Warner Nor- click “Submit Your Entries” from tral, Ann Arbor. Free; registration cross & Judd; Blaire Miller, entrepre- the drop-down menu that will ends Oct. 1. Contact: (734) 761-9317; neur and partner, The Hunter Group; appear and you’ll be taken to our email: [email protected]; web- Nancy Phillippart, general partner online submission form. 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Barra. 11:30 a.m.- Emagine Royal Oak, Royal Oak. $20 1:30 p.m. Oct. 28. DRC members, $50 nonmembers; pre- Detroit Economic registration required. Contact: Club. With Mary Janelle Arbuckle, (313) 596-0340; Barra, CEO of Gen- Research for a Brighter Future email: jarbuckle@ detroitcham eral Motors Co. De- ber.com; website: detroitchamber.com. troit Marriott at the Renaissance CBS Radio Detroit Tour. 4-5:30 p.m. Lawrence Technological University is leading Center, Detroit. Oct. 8. Engineering Society of Detroit. $45 DEC members, Join the ESD for an insider’s look at the way to a safer, healthier world. CBS Radio Detroit’s new headquar- $55 guests of members, $75 others. From groundbreaking research to ters in Southfield, including WWJ Barra 950, WXYT-FM 97.1, WVMV-FM Contact: (313) 963- 98.7, WOMC-FM 104.3 and WYCD- 8547; email: [email protected]; improve the longevity of bridges FM 99.5. CBS Radio, Southfield. $25 website: econclub.org. ESD members, $60 nonmembers (first- The Future of Global Healthcare From to studies on using electrospun time members can join ESD and at- Your Local Pharmacy, 11:30 a.m.-1:30 tend tour for free). Contact: (248) 353- p.m. Oct. 31. Detroit Economic Club. nanofibers for knee ligament 0735; email: [email protected]; website: Gregory Wasson, president and CEO www.esd.org. of Walgreen Co., and Nancy Schlicht- regeneration and building robots Membership Maximizer. 5:30-7:30 p.m. ing, CEO, Henry Ford Health System, Oct. 15. Detroit Regional Chamber. will discuss the merger of Walgreens that interact with humans Networking session with information and Alliance Boots and global health about DRC programs and benefits. care trends. Westin Book Cadillac, De- effectively and safely, Lawrence Free to members. Contact: Robin troit. $45 DEC members, $55 guests of Reinhart, (866) 627-5463; email: members, $75 others. 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Contact: (313) meyer, chairman and CEO, KPMG 963-8547; email: [email protected]; 20140929-NEWS--0024-NAT-CCI-CD_-- 9/26/2014 10:40 AM Page 1

Page 24 CRAIN’S DETROIT BUSINESS September 29, 2014

PEOPLE

ARCHITECTURE N THE SPOTLIGHT Drew Melow to in- I terior designer, McLaren Macomb, Mt. Clemens, Kraemer Design has named Thomas Brisse Group PLC, De- president and CEO. troit, from interi- Brisse or designer, Scar- replaces Mark cello Associates O’Halla, who Inc., Southfield. Also, Jennifer El- was promoted more to project ar- to executive chitect, from pro- vice president Kohs Thomason-Redus Melow ject architect, and COO of Ehresman Associates Inc., Troy. Flint-based stein to chief administrative officer, McLaren Jewish Family Service of Metropolitan CONSULTING Health Care Detroit, West Bloomfield Township, Inc. from chief information officer. Elise Iafrate to business development consultant, Rain BDM, Bloomfield Brisse Brisse brings Cheryl Kohs to director of marketing, Hills, from business development man- 27 years of Lutheran Social Services of Michigan, ager, Warner Norcross & Judd LLP, hospital operations experience to Detroit, from vice president, PCG Southfield. his new role. He most recently was Campbell, Dearborn. executive vice president of John Kontos to director of business de- Michelle Malamis to director of devel- operations for Beaumont Health velopment, Cambridge Consulting opment, Kadima, Southfield, from ex- Group, Troy, from business develop- System and before that held administrative positions at ecutive director, Canton Community ment consultant, Arthur J. Gallagher & Foundation, Canton Township. Co., Bingham Farms. Beaumont Troy, including senior vice president/hospital president Caen Thomason-Redus to director of FINANCE and vice president of operations. corporate partnerships, Sphinx Orga- Brisse, 51, earned a bachelor’s nization, from manager of corporate Michael Stolnack to vice president of partnerships. credit administration, Clarkston State degree in sociology and a master’s Bank, Waterford Township, from in health service administration bank examiner, Michigan Depart- from the University of Michigan. SERVICES ment of Insurance and Financial Ser- Greg DeSandy to director of sales for vices, Lansing. Bill Johnson to director of finance, Cobo Center, SMG, Detroit, from di- MVP Collaborative Inc., Madison rector of sales and marketing, Augus- LAW Heights, from CFO, Xcend Group Inc., ta Marriott at the Convention Center, Ilana Ben-Ze’ev to Brighton. Augusta, Ga. partner, real es- Max Muncey to account supervisor, Mary Engelman to director of govern- tate department, The Quell Group Inc., Troy, from se- ment and public relations, OpTech Honigman Miller nior account executive. LLC, Troy, from executive director, Schwartz and Greater Farming- Cohn LLP, Bloom- NONPROFITS ton Area Cham- field Hills, from Scott Harrison to ber of Commerce, dean of students, vice president for Farmington. Wayne State Uni- advancement and versity Law external relations, School. TECHNOLOGY Ben-Ze’ev Detroit Symphony Orchestra, Detroit, Rejji Hayes to se- MARKETING from executive di- nior vice presi- Joanne Bender to associate director of rector of board en- dent and CFO, ITC content development, 2XL Co. Inc., gagement and Holding Corp., 1HHGDQ,QYHVWPHQW Troy, from freelance writer and re- strategy. Novi, from inter- searcher, Troy. im CFO. 5HDO(VWDWH/RDQ" Harrison Shaindle Braun- Hayes BUSINESS DIARY ACQUISITIONS & MERGERS key performance indicators. Web- erville, Ohio. Website: theguaran sites: msgcu.org, idashboards.com. tee.com/us. Butzel Long PC, Bloomfield Hills, acquired May, Simpson & Strote PC, Yottabyte LLC, Bloomfield Township, Halla Visteon Climate Control Corp., a Bloomfield Hills. Website: butzel.com. a provider of software-defined data subsidiary of Visteon Corp., Van Bu- storage and data centers, and creators ren Township, has started production Penske Automotive Group Inc., Bloom- of yCenter and yStor, announced that field Hills, has signed an agreement to at its new manufacturing facility, Cli- Chemical Bank, Midland, has de- acquire MTU Detroit Diesel Australia, mate Systems Mexicana SA de CV, ployed the yStor software-defined Victoria, Australia, a distributor of Queretaro, Mexico. Website: storage solution to help maintain its diesel and gas engines and power sys- hvccglobal.com. growing IT infrastructure. Website: tems, operating in Australia, New Rainbow Child Care Center, Troy, an yottabyte.com. Zealand and the Pacific. Website: early education provider, has opened penskeautomotive.com. a new school at 2065 Three Mile Road, EXPANSIONS Walker. Website: rainbowccc.com. CONTRACTS The Better Health Store Inc., Novi, has Waveform Technology LLC, Troy, a opened a Better Health Market at Advanced Photonix Inc., Ann Arbor, a data center and Internet bandwidth 14105 Hall Road, Shelby Township. &DOOXV supplier of optoelectronic sensors, de- provider, has added 1 megawatt of Telephone: (586) 884-6160. Website: vices and instruments used by the test electrical infrastructure upgrades to thebetterhealthstore.com. /RDQDPRXQWVDQGDERYH and measurement, process control, support the Bitcoin mining segment, medical, telecommunications and Cupcake Station, Birmingham, has which has received 40,000 square feet $GGLWLRQDODYDLODEOHORDQV homeland security markets, was opened a location at 205 S. Main St., of data center floor space for Bitcoin awarded a contract of about $1.6 mil- Rochester. Telephone: (248) 651-5401. mining equipment. Website: wave 6%$86'$/RDQV lion from a leading military contrac- Website: cupcakestation.com. form.net. 2ZQHU2FFXSLHG5HDO(VWDWH tor that acts as a prime supplier for Daifuku America Corp., a subsidiary of Wright & Filippis Inc., Rochester Hills, /LQHVRI&UHGLW the U.S. Navy’s guided missile weapon Daifuku Webb Holding Co., Farming- has launched a wholly owned sub- system. The contract, for a custom ton Hills, opened 8,000 square feet of sidiary, A4 Access, dedicated $FFRXQWV5HFHLYDEOH photodiode, is expected to be complet- new office space and a complete re- to providing accessibility products (TXLSPHQW ed within 18 months. Website: model of its building at 6700 Tussing and related services. Website: %DQN:RUNRXWV advancedphotonix.com. Road, Reynoldsburg, Ohio. Website: a4-access.com. daifukuwebb.com. Creative Breakthroughs Inc., Troy, an 101 Mobility LLC, Wilmington, N.C., IT risk management company, has Gongos Inc., Auburn Hills, parent which provides accessibility equip- entered into an agreement with Fire- company to Gongos Research and O2 ment, has opened Mobility of Livonia Mon LLC, Overland Park, Kan., a Integrated, has launched its third at 13995 N. Haggerty Road, Unit 817, provider of security intelligence, to business unit, Arti|fact. Founded on Plymouth. Telephone: (734) 367-4105. use the FireMon Security Intelligence the philosophy of insight curation, Website: http://101mobility.com/Liv Platform. Websites: firemon.com, Arti|fact contextualizes and pre- oniaMI/index.php. cbihome.com. serves knowledge inside organiza- Michigan Schools and Government tions, making it more consumable, im- NAME CHANGE Credit Union, Clinton Township, se- mersive and memorable. Website: ZZZHFOLSVHFDSLWDOJURXSFRP lected iDashboards Enterprise Suites gongos.com. Clean Green Energy LLC, Brighton, a 2UFKDUG/DNH5G6\OYDQ/DNH0, by iDashboards, Troy, a supplier of The Guarantee Co. of North America renewable energy company, has ³6LQFH´ business intelligence dashboard tech- USA, Southfield, has opened a branch changed its name to CGE Energy. Web- nology, to create dashboards to track at 470 Olde Worthington Road, West- site: cgeenergy.com. 20140929-NEWS--0025-NAT-CCI-CD_-- 9/26/2014 5:28 PM Page 1

September 29, 2014 CRAIN’S DETROIT BUSINESS Page 25 Fed weighs impact of jobless boomers in labor market

BY VICTORIA STILWELL jobless workers 25 to 34 years old covery and labor market, the Fed Economists at Goldman Sachs BLOOMBERG NEWS were long-term unemployed. Be- economists found. Group Inc. in New York are wager- You’re not going cause younger workers are less Central bankers can influence ing the cyclical effect is probably Constantine Kortesis says he “ likely to drop out of the labor how much of this slack is erased on the higher end of the Fed re- can sense the odds of finding work to get a bounce-back force for reasons such as disabili- by keeping interest rates low to searchers’ range, meaning there’s at his age are against him. ty or retirement, they have a high- boost growth, whereas there is lit- a large amount of labor-market “I’ve gotten to the point where I of the baby boomers er probability of being pulled tle they can do about more perma- slack waiting to come online as know it’s just a waste of time” to back in, said Dana Saporta, U.S. nent shifts in the workforce. New the economy improves, according apply for jobs, said Kortesis, 61. suddenly getting economist at Credit Suisse Securi- York Fed President William Dud- to a Sept. 10 research note. “Once you get past 50 years old, no- younger. ties USA in New York City. ley last week said he favors let- They found that other econo- body really wants to talk to you.” ” From the fourth quarter of 2007 ting the economy run “a little mists agree. A full percentage Kortesis, a former senior engi- as the recession was about to start hot” by allowing the unemploy- point of the decline in labor-force Jim Stock, Harvard University neering project manager at Elec- through this year’s second quar- ment rate to fall a little below participation is due to cyclical tronic Data Systems Corp. in metro ter, the labor force participation what central bankers consider op- factors, according to the median Detroit, says he was let go more Weighing the balance is a criti- rate — or the share of the work- timal. estimate of 15 papers on the topic than five years ago in a round of cal issue for Fed officials as they ing-age population with a job or The Fed is carefully monitor- analyzed by Goldman Sachs. mass firings after the company gauge labor-market strength for looking for one — declined by 3.1 ing the labor market and any re- “We believe the evidence con- Hewlett-Packard was acquired by signs that it’s safe to raise the percentage points to 62.8 percent, maining slack as it winds down tinues to show a meaningful Co. The certified manufacturing benchmark rate for the first time the lowest since 1978. an unprecedented monetary stim- cyclical effect on the participa- engineer is looking for steady em- since 2006. The Boston Fed find- The drop in participation has ulus aimed at lifting the economy tion rate,” Goldman economists ployment that’s yet to materialize, ings illustrate just how difficult it helped cut unemployment more out of the worst recession in the David Mericle and Sven Jari and now he’s counting the days un- will be for monetary policy to pull than projected by Fed policymak- post-World War II era. Stehn wrote. til he can apply for Social Security. older Americans, who make up a ers. The jobless rate was 6.1 per- “The labor market has yet to Certain elements of labor mar- Since 1980, just 20 percent of 55- fully recover,” Fed Chair Janet ket slack may be flying under the large share of the long-term unem- cent in August, down from 7.2 per- to 59-year-olds who leave the work- Yellen said during a Sept. 17 press radar for some economists, illus- ployed, back into the workforce. cent in the same month last year. force during economic slumps or conference following a meeting of trating the blurry line between “You’re not going to get a In order to be considered unem- in early stages of recoveries are the policy-making Federal Open what is cyclical and structural. bounce-back of the baby boomers ployed, a worker has to be active- employed again within four years, Market Committee. “There are For example, Kortesis, who now suddenly getting younger,” said ly looking for a job. according to a study by Federal Retiring baby boomers account still too many people who want lives near Lake Michigan in the Jim Stock, an economics professor Reserve Bank of Boston economists for 1.3 percentage points of a 2.8- jobs but cannot find them, too northern part of the Lower Penin- at Harvard University, referring to Daniel Cooper and Maria Jose Lu- point decline in participation many who are working part time sula, exhausted his unemploy- the generation born between 1946 engo-Prado published last month. since the end of 2007 through this but would prefer full-time work, ment benefits in October. and 1964. “There’s this vague line Re-entry improves the younger year’s second quarter as calculat- and too many who are not search- He said he would take a job if between structural and cyclical,” the worker, with the share climb- ed in research by Fed econo- ing for a job but would be if the la- one were easily available in his he said. Figuring out where it lies ing to 41 percent of 45- to 54-year- mists. They adjusted the gauge bor market were stronger.” field. “is actually quite important for the olds and 78 percent of 25- to 44- for population shifts and a re- If the decline in participation is A position wouldn’t even have year-olds, according to their Fed because it gives an indication design of the government survey, mostly structural, it means to be full time, Kortesis said. “All research. of how far the labor market is from and the results were published by “we’re going to arrive at full em- it would take was if somebody just Kortesis personifies the gray recovery.” the Washington, D.C.-based ployment sooner,” said Michael said, ‘Hey, I got a job for you.’ ” area between the so-called cyclical About 40 percent of unemployed Brookings Institute this month. Feroli, chief U.S. economist at J.P. He keeps busy by putting the component of the drop in work- Americans 55 to 64 years old had Such demographics will continue Morgan Chase & Co. in New York, finishing touches on the cottage force participation during this eco- been jobless for 27 weeks or more to weigh on the rate going for- referring to the level of jobless- where he and his wife, who is sup- nomic expansion, which can be in- in August, according to U.S. Labor ward, they found. ness consistent for stable infla- porting the couple by juggling fluenced by the strength of the Department data. That’s higher Anywhere from 0.25 percentage tion. He estimates the cyclical three jobs, now live. While that’s recovery, and irreversible struc- than any other group except for point to 1 percentage point of the component of the drop in partici- stressful, she’d like him to finish tural elements such as an aging those 65 and older. decline in participation is attrib- pation since 2007 is “less than a the construction project and forgo population. Meanwhile, almost 30 percent of utable to the effects of a weak re- percentage point.” the job search, Kortesis said. MARKET REAL ESTATE PLACE OFFICE SPACE OFFICE BUILDING COMMERCIAL PROPERTIES AUCTIONS BUSINESS SERVICES û BLOOMFIELD HILLS û û DOWNTOWN BIRMINGHAM, MI û û MOTEL FOR SALE û REAL ESTATE IN BUY or SELL a BUSINESS EXECUTIVE OFFICE SUITE FOR LEASE MACKINAW CITY, MICHIGAN A BLOOMFIELD HILLS On Straits of Mackinaw and overlooking Expert Results! the Mackinac Bridge. 24 units plus Call Bill 248-505-5840 living quarters. Large repeat business. U Owners Retiring. 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Page 26 CRAIN’S DETROIT BUSINESS September 29, 2014

BOARD CANDIDATES: A WHO’S U Seattle firm plans Wayne State University University of Michigan Michigan State University board of governors board of regents board of trustees Detroit location to train Web developers

BY SHERRI WELCH ence and Web development. CRAIN’S DETROIT BUSINESS Demand for Web and mobile de- Kelly Thompson Behm White Owen Perles velopers in Detroit is only a frac- Seattle-based Code Fellows LLC tion of that in Seattle, Smith said. Democrats Democrats Democrats has set its sights on opening a De- Last week, Code Fellows Ⅲ Marilyn Kelly, 76, Bloomfield Ⅲ Michael Behm, 46, Grand Ⅲ Faylene Owen, 78, East troit location by next summer to pulled the number of jobs on Hills. Former Michigan Supreme Blanc. Attorney, chairman of Lansing. Incumbent, founder and help meet local demand for Web Court justice, State Board of Business Forward Michigan; co- former owner of Mica Corp., a simplyhired.com in several major and mobile developers. Education member and Michigan founder and former president of small market research and cities for positions in one of the five Court of Appeals judge. Level Field Institute. communications firm; former The company’s CEO, Kristin code areas it teaches. There were Ⅲ Dana Thompson, 42, Ann Arbor. Ⅲ Kathy White, 48, Ann Arbor. director of special projects for Gov. Smith, a Troy na- 3,352 openings in metro Detroit ver- Attorney, clinical professor of law Two-term incumbent, chair of board James Blanchard. tive, was in town sus 5,981 in Portland, 15,766 in Seat- and director of the University of of regents, law professor at Wayne Ⅲ George Perles, 80, Haslett. during the re- tle, and 26,334 in San Francisco. Michigan’s Entrepreneurship State University Law School and Incumbent, former Michigan State cent Crain’s-led “While Detroit isn’t as large as Clinic. the U.S. Military Academy at West University athletic director and Detroit Home- Seattle or San Francisco, there are Point, N.Y. football coach, founding CEO of the coming event to still a ton of open positions that Motor City Bowl. pave the way. represent talent that companies She met with have not yet found,” she said. organizations of- “We hope to make a bigger fering incubator pipeline of talent so that they don’t Smith and co-meeting operate without this talent for long space and with and to help people improve their the Detroit Economic Growth Corp. and lives and careers.” its vice president of business devel- And there are lots of opportuni- opment, Olga Stella, whom Smith ties for growth in Detroit, she said. said she knew in high school. Busuito Jasti Software is broadly used in the Steele Weiser Smith, 39, is contacting area em- automotive industry inside vehi- Republicans Foster Sakwa ployers as a first step in develop- cles, in manufacturing processes Republicans Ⅲ Michael Busuito, M.D., 60, Troy. ing the local training Code Fellows and in managing supply chain logis- Ⅲ Robert Steele, M.D., 57, Republicans Plastic surgeon, Somerset Plastic will offer in the Detroit market. tics, and it’s taking off in health care Surgery. Ypsilanti. Founding shareholder of Ⅲ Melanie Foster, 59, East Ⅲ Michigan Heart PC, full-time Lansing. Served one term on Detroit has “a great growth tra- with the advent of electronic med- Satish Jasti, 55, West jectory and a lot of openness to ical record systems and online por- Bloomfield Township. Vice cardiologist. board. Manages a real estate president and senior loan officer at Ⅲ Ron Weiser, 69, Ann Arbor. portfolio, former president of new ideas that will help the compa- tal communication between doctors the Bank of Ann Arbor; former Founded McKinley Associates Reinhold Landscape. ny grow ... and be part of this next and patients, Smith said. president, founder and CEO of Novi- Inc., a national real estate Ⅲ Jeff Sakwa, 54, Farmington evolution of what Detroit is going Technology is also playing a big based Lotus Bancorp Inc. investment company; former Hills. President and CEO of to be,” Smith said. role in the operations of other tra- Michigan Republican Party Farmington Hills-based Noble It also doesn’t hurt, she said, that ditional businesses, she said. chairman; former U.S. ambassador Realty. since she is from metro Detroit, she “In Seattle, we’ve been sur- to the Slovak Republic. has relationships with people here prised at the breadth of industries who can run a satellite location. that have this talent need,” Smith “It’s a matter of when we open in said. “It’s really going in and find- Detroit, not if we open there,” Smith ing where there’s this need for tal- Boards: What’s in a name? Not much said. “We’re hoping to have a present and crafting the right curricu- ence in Detroit by next summer.” lum” to meet it. ■ From Page 3 Code Fellows, which launched a Since its launch in Detroit early year and a half ago, teaches people commercials with Bo Schembech- last year, Grand Circus LLC has pro- Michigan to write code through three levels of ler campaigning for him. vided similar types of technology Union courses that add up to four months training to more than 500 people In 2010, Democrat Colleen Mc- If Republicans sweep of training that costs $12,000. through workshops and boot Namara lost her seat on the MSU They range from a technology camps held over several weeks, board during a national wave all six university board overview to an eight-week inten- said Grand Circus CEO and co- election for Republicans. sive focus on one of five technolo- founder Damien Rocchi. In 2008, Danialle Karmanos ran seats, all three boards gy tracks it offers to train would-be He couldn’t say how many of the for a seat on the Wayne State board would go from having a developers: Ruby on Rails and total are working now in jobs tied to but lost, as did all other GOP candi- Full-stack Java Script for creating dates. She tried again in 2010 and that training, since not all were seek- 6-2 Democratic majority Web apps; iOS Development for ing new jobs, but he points to stories won along with every other Repub- cellphones and iPads; Front-End lican running for the three boards. of former pizza delivery drivers and to being evenly split UX used in website design/mar- personal trainers now working in In 2004, former Republican keting; and Python, which is used House Speaker Paul Hillegonds Web development and quality assur- between the two parties. to make websites and in other ance testing of code. lost a race for a seat on the Wayne data-intensive applications such Rocchi also said that of 42 people State board in a year dominated, as research and medical labs. who took place in a July-August though not swept, by Democrats. Kerry, Republican Melanie Foster mocrats. The company guarantees that boot camp for .NET developers and T.J. Bucholz, president of Lans- won a seat on the MSU board but But if Republicans sweep all six within nine months of graduating, quality assurance testers, 70 per- ing-based Vanguard Public Affairs, lost a re-election bid in 2012 and is seats, all three boards would go its graduates will get a job offer for cent are in jobs already. And 100 has worked in both Democratic seeking a spot again this year. from having a 6-2 Democratic ma- at least $60,000 per year or Code Fel- percent of the 12 people trained as and Republican administrations. Ballenger said that because the jority to being evenly split be- lows will reimburse tuition. junior iOS developers in a sepa- He said that because of frequent race for governor is expected to tween the two parties. Smith projects the company, shifts in party dominance, some be close, this could be the first “This could be a big deal,” Bal- which has graduated more than rate, apprenticeship program with candidates are just lucky based time in 10 years where there is lenger said. “The Democrats have 250 people since its March 2013 Detroit Labs have been hired. on when they seek the position, not a one-party sweep. nothing to gain and everything to launch, will reach $5 million in “There’s a chronic shortage in as voters rarely know anything “There is a good chance you lose.” sales this year. More than 80 per- some of these new skills, and we about the candidates. will get a split on one or more of While university board mem- cent find jobs within three months think Detroit is a great place to In the past two presidential these boards this year,” he said. bers are not as partisan as law- of graduation as Web and mobile build a business,” Rocchi said. election years, the Democratic And then names might matter. makers in Lansing, he said, issues developers, and all but a few find “We feel strongly about building a candidates for the three boards Two of the better-known candi- can arise that can be ideologically employment as software develop- business by doing good and creat- all won. And in 2010, the last non- dates this year are former Michi- driven — such as collective bar- ers within six months, Smith said. ing jobs for Detroit.” presidential election year, the Re- gan State football coach George gaining rights for graduate stu- Last week, Code Fellows an- If Code Fellows is able to help publican candidates swept. Perles, who is seeking re-election dents, domestic partner benefits nounced plans to open its second out with that mission, “we think The last presidential election to the MSU board, and former and other cultural issues. location, in Portland, Ore., with it’s a great thing,” he said. year that wasn’t a Democratic Michigan Supreme Court Justice Chris Gautz: (517) 403-4403, the November launch of its four- Sherri Welch: (313) 446-1694, sweep was in 2004. That year, when Marilyn Kelly, running for the [email protected]. Twitter: week Foundations I course to [email protected]. Twitter: Michigan voted narrowly for John Wayne State board. Both are De- @chrisgautz teach the basics of computer sci- @sherriwelch 20140929-NEWS--0027-NAT-CCI-CD_-- 9/26/2014 5:09 PM Page 1

September 29, 2014 CRAIN’S DETROIT BUSINESS Page 27 Ross: Major UM donor says criticism of Brandon ‘hurting’ UM ■ From Page 1 Ross is the chairman of the uni- crashing down to earth?” he wrote. that if he’s fired without cause pri- School of Business, earned an ac- school of education, and $250,000 versity’s $4 billion “Victors for “Tickets used to be underpriced, or to Jan. 1, 2016, the university counting degree from Michigan in each for the university’s art muse- Michigan” fundraising campaign. and you knew that when you must pay him his remaining base 1962 after transferring from the um, urology department and busi- The athletic department and the scalped them for more than you salary and his remaining deferred University of Florida. That was fol- ness school. business school are splitting $200 paid. Now they’re overpriced, and compensation. Firing him after lowed by a law degree from Wayne Brandon’s Michigan roots are million that Ross pledged to the you know that when you try to sell that date reduces the payout to 50 State University in 1965 and a mas- deep: He was a high school quar- university in September 2013. He them through Michigan’s Official percent of both the remaining base ter’s of law degree the next year terback from South Lyon who also gave $100 million in 2004 to the Scalper, StubHub, and get far salary and deferred compensation. from New York University. played sparingly under head foot- business school that prompted UM less.” The for-cause firing reasons un- He is chairman and majority ball coach Bo Schembechler, and to rename it for him. Brandon also has been under a der the deal are limited to failing owner of The Related Cos. LP, the later switched to defensive end. Ross, 74, has not suggested his microscope for two recent inci- to carry out his job duties, felony real estate development firm he He began his career, on the rec- donations to the university would dents: convictions and other legal issues, founded in New York in 1972. ommendation of Schembechler, at cease if Brandon were fired, and The regents on July 17 reject- and NCAA violations. Ross is a Detroit native who Cincinnati-based Procter & Gamble said he hasn’t spoken to anyone at ed the athletic department’s re- Any suggestion that Brandon grew up in Miami Beach and lives Co. and in 1979 joined Livonia- UM about him. quest for fireworks during the may be ousted has come from the in New York. His uncle was the based Valassis Communications Inc. A source within the university, Sept. 13 home football game blogosphere and social media, and late Max Fisher, the noted Detroit when it was called GFV Communica- who agreed to speak only on the against Miami University, and the fueled by the football defeats that philanthropist and industrialist. tions Inc. condition of anonymity, said con- Oct. 11 game against Penn State. magnify displeasure over price in- Ross began his career as a tax at- He was CEO there from 1989 to cerns about Brandon and UM ath- Fireworks have been approved creases and marketing ploys. torney with the Detroit office of 1998 and was hired in 1999 as CEO letics are a talking point, but little for games in the past, so the rejec- The university source who Coopers & Lybrand, which later be- of Ann Arbor-based Domino’s Pizza else at this point. tion was seen by some as a mes- would speak about Brandon only came PricewaterhouseCoopers. Inc., a job he left to become athletic “There’s no movement to push sage by the regents to Brandon of without attribution said the UM director in 2010. Brandon out,” the source said, their displeasure with him. administration could have hashed He also has served on the uni- who noted that any change would On Sept. 22, a photo on Twitter out any serious concerns about ‘He wants to win’ versity’s Board of Regents. go through the university presi- revealed that two $75 tickets for the him on Sept. 18 when the regents Brandon himself is a donor: In He also was among the five final- dent, to whom the athletic director Sept. 27 game against the University approved the $168 million Athlet- 2006, he and his wife, Jan, gave $4 ists to become NFL commissioner reports, and would be a long-term of Minnesota would be given away ics South Competition and Perfor- million to the university. About $2 in 2006. process rather than a sudden dis- for every $3 Coca-Cola product pur- mance Project. million of that was earmarked to As a football team owner, Ross missal. chase at the Michigan Union on “That’s where this could have build a modern neonatal intensive said he’s familiar with being un- Ross, who will be in Ann Arbor campus — prompting howls of out- played out, and it didn’t.” care unit at the C.S Mott Children’s der fire. for the football game against Penn rage over tickets being devalued and Women’s Hospital. David Bran- “I know that feeling. I know how State University on Oct. 11, said it is and accusations that UM wanted to don’s twin sons, Nick and Chris, it is when you don’t win games, “hurting Michigan by pressuring” ensure at any price its streak of Money talks were treated as newborns at the how people react,” he said, chuck- Brandon, 62, who declined to com- 100,000-plus attendance continued. Ross’ financial commitments to university hospital when they ling. “It’s got to be killing him, ment. The athletic department said the Michigan make him a voice to were born prematurely. from that standpoint. He bleeds Ross said he only occasionally giveaway was a misunderstanding whom the university listens. Money for the gift also set up a blue all the way. His passion for talks to Brandon, and has not since with Coke, which bought a batch The school’s sprawling collec- $250,000 David and Jan Brandon Michigan isn’t exceeded by any- negotiating the leasing of Michi- of tickets for promotional purpos- tion of athletics buildings and Scholarship Fund for student ath- body. He wants to win.” gan Stadium this summer for $2.6 es, and shouldn’t have happened. sports venues for its 931 student- letes, $750,000 for the athletic de- Bill Shea: (313) 446-1626, million for the Manchester United- Other criticism of Brandon has athletes has been named the partment, $500,000 for a digital [email protected]. Twitter: Real Madrid match Aug. 2. included what some say is the fail- Stephen M. Ross Athletic Campus. records storage center for the @bill_shea19 Ross and Brandon negotiated ure to hire Les Miles or Jim Har- His money is paying for new fa- the deal for Ross’ New York City- baugh as football coach, the sched- cilities for both athletic and acade- based Relevant Sports to use the sta- uling of mediocre non-conference mic support, including the $168 dium for the match, which was football opponents, market-driven million Athletics South Competi- part of the wider International pricing for single-game tickets, tion and Performance Project, Champions Cup exhibition tourna- and replacing student seating by which includes a men’s and ment. seniority with general admission. women’s lacrosse stadium, indoor AMERICAN LEAGUE “He’s a tough business guy,” The latter was later revised. track, outdoor track, men’s and Ross said. women’s soccer team building, The revenue from the soccer Football and contracts and a team and performance cen- match is an example of the ter. DIVISION SERIES fundraising that Brandon was Looming over everything are “It’s something that’s damn im- hired to do as athletic director. the football team’s struggles. pressive, and that’s what Michi- “All of our (Big Ten Conference Going into Saturday’s home gan is about, the combination of athletics) departments crave capi- game against Minnesota, Michi- sports and academics,” Ross said. tal to build facilities to compete at gan was 2-2, a record that included He previously donated $5 million & WILD CARD the highest level,” Brandon told humiliating losses to Notre Dame toward the construction of what be- Crain’s in February for a story and the University of Utah. came the 38,000-square-foot, three- about the football coach job having Head coach Brady Hoke’s career story Stephen M. Ross Academic Cen- a donor’s name added to it as a for- win-loss record through his fourth ter, an academic study space for UM mal title. “All of these departments season at UM going into Saturday athletes that opened in 2006 at a cost TICKETS ON SALE NOW are out trying to maximize the op- was 28-15 (15-9 in the Big Ten). He’s of $12 million. He also gave $5 mil- portunity to raise funding sup- 1-2 against both archrivals Ohio lion for the Michigan Stadium ex- Postseason luxury suites still available port.” State University and Michigan State pansion and $50,000 to the College of The athletic department’s cur- University. Literature, Science, and the Arts for rent budget estimates $151 million Ross said that even if the foot- the Henry Pearce Endowed Schol- in revenue against $145.9 million ball team continues to struggle, he arship, and scholarship support for in expenses. doesn’t expect Brandon to fire student athletes. Fans and pundits have grum- Brady Hoke in midseason. Brandon played a major role in bled as UM has struggled on the “In college, you don’t change Ross’ donations. Brandon ex- field, and Brandon has been a tar- coaches in the middle of the sea- plained what he was going to do get since he was hired in 2010 with son. That’s just not rational. That with the money, and took him a plan to give the athletic depart- will hurt the whole program,” he around the campus to explain the ment a corporate-style overhaul — said. “Michigan isn’t going to act plan, Ross said. and raise money. that way. It’s not the SEC. I’m sure “No one has a bigger vision for Brady feels the pressure and Michigan athletics, all sports,” knows his job is on the line.” Ross said. “He really cares about Criticism Michigan signaled its approval the whole department, all the stu- One of Brandon’s leading critics of Brandon’s work when it gave dent athletes. Now is the time to be is author John U. Bacon, a UM him a new contract in July 2012 supportive of him. He will do the alumnus and journalist-turned-au- that pays him a base salary of right thing.” thor/speaker, who noted in a Ya- $900,000 in 2014-15. The six-year Ross said he first met Brandon hoo Sports column in June that deal is through 2018, and pays him after the latter became athletic di- 6,000 UM students didn’t buy foot- a $5.55 million base, and he can rector in 2010, and has spent time ONLY AT ball ticket packs this season. earn up to $1.3 million in deferred with him. He said he was close to “I’ve come to believe it’s not compensation through 2018. He Brandon’s predecessor, the retired scandal that will bring down col- gets fringe benefits such as free Bill Martin. lege athletics, but greed. How long tickets, use of two cars, a golf club “I really liked (Martin), and he can these numbers, fueled by in- membership, and travel reim- set the stage for Dave,” Ross said. Limit 12 tickets per game, per person. Some restrictions apply. creasingly unhappy fans, continue bursement for his wife. Ross, whose name is on the While supplies last. Tickets not available by phone or box ofﬁce. to skyrocket before they come Brandon’s contract stipulates 6,000-student Stephen M. Ross 20140929-NEWS--0028-NAT-CCI-CD_-- 9/26/2014 5:21 PM Page 1

Page 28 CRAIN’S DETROIT BUSINESS September 29, 2014 Ads: Analysts say television ads are helping Schauer – so far ■ From Page 1 $6 million of that has been spent in the Detroit TV market, according to the Campaign Finance Network. In the 2010 race for governor between Snyder and Lansing Mayor Virg Bernero, the two sides spent $23 million, but that includes the Strategist Dan ad buys during the heated pri- Pero, who ran maries in both parties. John Engler’s first The spending was not as heavy campaign for during the general election be- governor in 1990, cause it was never really a close said the ad race. Snyder cruised to victory by messaging of Democrat Mark 18 percentage points. Schauer “is very The reverse is the case this year disciplined. as neither candidate had a primary They’ve got three opponent. Now Snyder and Schauer talking points, find themselves statistically tied, ac- and they say them cording to recent polling. (For an- over and over AARON ECKELS other view, see story, this page.) again.” Gov. Rick Snyder needs to start MARK SCHAUER FOR GOVERNOR But are all the ads working? running ads that attack his opponent Many analysts credit the politi- the way the Democrats have been cal ads the Schauer campaign has attacking Snyder, says John Truscott been running for making this a of Truscott Rossman. Research has tight race. shown that voters typically need to see an ad five or six times before the TV political barrage keeps other ad buyers away Schauer’s messaging “is very disciplined. They’ve got three talk- message sinks in. “It’s a longer season, there’s more of it and it’s been ing points, and they say them over BY CHRIS GAUTZ CAPITOL CORRESPONDENT running for a lot longer than usual,” Michelson said. and over again,” said Republican “Nobody has laid a glove on For his clients, he said, it’s not so much about be- political strategist Dan Pero, who Schauer at this point,” Truscott State political ads are dominating the airwaves, ing around the negativity of the political ads. It’s ran former Gov. John Engler’s said. but it’s not just because both sides have the money more to do with the uncertainty that comes with ad first gubernatorial campaign in When they do, he thinks to spend on them. buying this time of year, because broadcasters have 1990 and his re-election in 1994. Schauer’s poll numbers may slide Some businesses are pulling back their ad buying the ability to pre-empt other advertising to ensure Pero said Schauer’s ads have fo- by as many as five points. so as not to get lost in the midst of all the political political ads are put on air, he said. cused on the tax on some pensions But it takes time to make that ads, or be associated with them. But not all of his clients are staying off the air. that Snyder signed into law as well happen, Truscott said. Research “They don’t want their message surrounded by Some have to still be active on TV because of timeli- as the reduction in the Homestead has shown that voters typically negativity,” said Matt Friedman, co-owner of Tanner ness issues, Michelson said. Property Tax exemption, which need to see an ad five or six times Friedman Strategic Communications. SMZ does work for the Detroit Tigers, who need to many seniors relied on, and the before the message sinks in. Friedman said his firm has get the word out about playoff tickets, and the Michi- controversial notion that Snyder And many voters in the state clients that have gone completely gan Lottery, another client, has new games it wants cut education funding by $1 billion. will start to receive their absentee dark on television and plan to do to promote, he said. It’s on that point that many Re- ballots in the mail this week, so Tr- so through Election Day, with one But it’s those coming Tiger playoff games, and publicans have been waiting for uscott expects even more televi- client that hasn’t been on TV since other live sporting events and newscasts, that are Snyder to finally fire back on and sion ads to air and then again in July. Friedman said clients are becoming more attractive to political campaigns to make clear he actually has in- the last week or two before Elec- making up for the loss of exposure air ads during, making less room for other business- creased spending on education by $1 tion Day. on TV with more Internet and es to advertise even if they wanted to do so. billion. The Schauer campaign’s “Independents don’t tune in un- print ads, and are budgeting for a “Media buying inventory is tight, but exceptional- claim does not account for the feder- til the last few weeks anyway,” Tr- longer stretch of TV ads next year. ly tight this year,” Friedman said. al stimulus funding that dried up uscott said. “You don’t run a cam- Jamie Michelson, president of With more TV viewers recording their favorite Friedman the year Snyder took office. And paign for the people that have the Troy-based advertising agency shows and watching them later and fast-forwarding state funding of K-12 education has already made up their mind.” SMZ, said he also has clients that aren’t advertising as past commercials, political campaigns want to make gone up every year Snyder has been DiSano said Snyder’s ads have much, if at all, during the election season. sure their ads often run during programming that in office, totaling more than $1 bil- not been focused or as well-done as He said some of that is planned, though, as much people will watch live. lion. Schauer’s, start- as a year in advance. But this year has stood out, he “That’s DVR-proof,” Friedman said. “Mark Schauer is lying,” said ing with the gov- said, with the political ads starting much earlier and Chris Gautz: (517) 403-4403, [email protected]. John Truscott, president of Truscott ernor’s Super continuing all year. Twitter: @chrisgautz Rossman. “You Bowl ad that have to go after showed him that. You have to emerging from a get that on the swimming pool air.” in scuba gear. Sowerby: Economic numbers add up to Snyder win But Joe Snyder’s ads Pollsters may be touting a statistical dead heat in the low side, Snyder wins with 53 percent of the DiSano, a part- then touted Michigan’s gubernatorial race, but economist David vote, Sowerby later told Crain’s. ner with Main Michigan as the DiSano Sowerby stands by the analysis he has used to call “Today, the misery index has improved, or de- Street Strategies, comeback state every race since 1994. It’s a nonpartisan measure, he clined, and prosperity has improved. Game, set, a Democratic po- but then later assured voters that said, that determines whether the match,” he said. litical consulting while “they might not feel” the Truscott “incumbent party” has a chance “If you go back to 1978, this has accurately predict- firm, said voters economic recovery yet, they will. in November. ed the outcome in every gubernatorial election ex- don’t look at fact-checking websites “It’s asking voters to have short- A numbers wonk, Sowerby cept for 1990. In 1990, it was simply too close to call,” or research the claims made in ads. term memory loss,” Disano said. uses two metrics — the “misery Sowerby said. In that race, incumbent Gov. James “Stacks of facts can’t turn index” that plots unemployment Blanchard lost to Republican challenger John En- around what people feel. Voters and inflation, and the “prosperi- gler. don’t pay attention to actuarial ta- But what’s their agenda? ty metric” reflecting job and in- To explain his theory, Sowerby said: “Technically, I bles,” DiSano said. One thing both sides agree on so come growth. take two independent variables in a regression equa- On Friday, the Snyder campaign far is that viewers watching the ads By that measure, Sowerby told tion as a predictive, with a high correlation of the per- debuted its first ad that hits back have no idea what Snyder would do Sowerby the audience of the Conference of cent of vote to the incumbent parties.” on the claim of education spending if given a second term and only a Western Wayne’s annual dinner in Sowerby said he has gone back to the early 1960s, cuts. slightly better idea of what Schauer Dearborn last week, Gov. Snyder wins with 57 per- and the theory has never failed to predict the out- DiSano doesn’t think it will work. would do if he was elected. cent of the vote. With room for statistical error, on come. “People vote their pocketbooks,” he said. “That’s contrary to what people Snyder’s ads so far have been see when they go to their kid’s spent defending his record or ex- school,” he said. plaining what he has done, while alternative, Pero said. he would pay for raising spending to recovery is a journey worth tak- Truscott said that with fewer Schauer’s ads have introduced DiSano said Schauer has made on education or the other ideas. ing and the trip will get smoother than 40 days until the election, him to voters and attacked Snyder the case, after attacking Snyder for “What he’s offering is very as we go on,” Pero said. “Are we time is running out to disabuse on a host of issues. cutting education, that he would vague.” Pero said. going to take this road to recovery, voters of the notion that Snyder “Voters don’t know what either make education spending a top Snyder ads that talk about how or are we going to take a detour ... has slashed education spending. candidate wants to do in the next priority if elected. he fixed the state’s budget problems into more (former Gov. Jennifer) And, he said, the campaign needs four years,” Pero said. Truscott agrees that Schauer has and that the state is now on a road Granholm?” to start running ads that attack Schauer will need to transition been running good ads but said to recovery are something easy for Chris Gautz: (517) 403-4403, Schauer the way the Democrats away from attacks on Snyder and they open him up to attacks be- voters to visualize, he said. [email protected]. Twitter: have been attacking Snyder. explain to voters why he is a better cause he has yet to articulate how “I think voters will see the road @chrisgautz 20140929-NEWS--0029-NAT-CCI-CD_-- 9/26/2014 5:10 PM Page 1

September 29, 2014 CRAIN’S DETROIT BUSINESS Page 29 Parking: Meter’s running on plan to privatize www.crainsdetroit.com ■ From Page 3 EDITOR-IN-CHIEF Keith E. Crain GROUP PUBLISHER Mary Kramer, (313) 446-0399 parking lease deal before it wraps a city spends about $32 on writing ParkIndy is a joint venture of or [email protected] ASSOCIATE PUBLISHER Marla Wise, (313) 446- bankruptcy plan confirmation tickets and processing costs for Xerox and local minority owners 6032 or [email protected] hearing before Rhodes in October. every $30 parking fine it collects. One thing elected Denison Global Parking and Evens EXECUTIVE EDITOR Cindy Goodaker, (313) 446- 0460 or [email protected] For now, the city will work within The overall city parking Time, and paid the city over $3 mil- MANAGING EDITOR Jennette Smith, (313) 446- the parameters of its current park- RFP called for experienced officials and lion, or nearly half of its total $6.1 1622 or [email protected] DIRECTOR, DIGITAL STRATEGY Nancy Hanus, ing plan, which includes limited bidders to submit quotes for million of meter revenues, in 2013, (313) 446-1621 or [email protected] deals with outside operators. One a 30- to 50-year lease to man- Emergency its third year as operator under MANAGING EDITOR/CUSTOM AND SPECIAL PROJECTS Daniel Duggan, (313) 446-0414 or thing elected officials and Orr agree age, maintain and improve the lease deal. That’s compared [email protected] on: Infrastructure, both meters and all or part of the city’s 6,884 Manager with just $339,000 of operating in- SENIOR EDITOR/DESIGN Bob Allen, (313) 446- parking spaces in seven 0344 or [email protected] structures, needs some TLC. come for the city on $2.15 million SENIOR EDITOR Gary Piatek, (313) 446-0357 or garages, 3,200 on-street me- Kevyn Orr total revenue in 2010, its last year [email protected] tered parking spaces, a relat- under city management. WEB EDITOR Kristin Bull, (313) 446-1608 or Outside operators agree on: Both [email protected] ed boot and towing service, Xerox also took over parking me- RESEARCH AND DATA EDITOR Sonya Hill, (313) Complicating matters, Nowling and violation enforcement. ter operations in Oakland, Calif., in 446-0402 or [email protected] That included the 2,600-space parking meters WEB PRODUCER Norman Witte III, (313) 446- said, is that the current parking 2010, and has parking contracts 6059, [email protected] plan includes an option for creditor Joe Louis Arena garage, of which with several other California cities, EDITORIAL SUPPORT (313) 446-0419; YahNica and structures need Crawford, (313) 446-0329 Syncora Guarantee Inc. to enter a long- nearly 1,000 spaces were closed said Carl Langsenkamp, vice presi- due to structural disrepair. The NEWSROOM (313) 446-0329, FAX (313) 446- term lease to operate and collect rev- dent for global public relations. 1687 TIP LINE (313) 446-6766 city has agreed to make more than some TLC. enue from the city’s Grand Circus Langsenkamp would not con- REPORTERS $2.5 million of improvements to parking garage at 1600 Woodward firm whether Xerox was among Jay Greene, senior reporter: Covers health care, that garage, regardless of whether insurance, energy utilities and the environment. Ave., after Syncora settled with the officials have said the parking the bidders for Detroit parking, a lease deal is signed, even though (313) 446-0325 or [email protected] city earlier this month. plan initiated by Orr was unlikely but Nowling said the city was look- Amy Haimerl, entrepreneurship editor: Covers the Michigan Strategic Fund earlier entrepreneurship and city of Detroit. (313) 446- The Grand Circus garage is the this year approved up to $6 million to yield a contract without Orr in ing for proposals that increased re- 0416 or [email protected] third-largest of seven city-owned office. The mayor’s communica- curring city revenue like the Indi- Chad Halcom: Covers litigation and the defense for demolition of the arena itself. industry. (313) 446-6796 or [email protected] garages that were originally expect- Groundbreaking was Thursday tions director, John Roach, said anapolis contract had done. Tom Henderson: Covers banking, finance, ed to come under an operating lease Friday only that the issue is “cur- “We’re always looking into technology and biotechnology. (313) 446-0337 or on a new arena and entertainment [email protected] to a private contractor. That means district along Woodward near I-75, rently under review.” putting in an (request for proposals) Kirk Pinho: Covers real estate, higher education, the valid bids likely would need to Duggan has said previously he bid on public parking systems, when Oakland and Macomb counties. (313) 446-0412 or with Olympia Development of Michi- [email protected] be updated before the city could gan expected to operate the new is “not a fan of privatization” as a we see them. But I can’t tell you Bill Shea, enterprise editor: Covers media, reach a decision, Nowling said. local government restructuring where we’re at with Detroit’s (specif- advertising and marketing, the business of sports, arena starting in 2017. The state and transportation. (313) 446-1626 or Orr sent out the bid request in will demolish Joe Louis after the tool because of the loss of opera- ic) request,” Langsenkamp said. [email protected] early August despite a 6-2 vote of tional control; sometimes cities The bidder request in August Dustin Walsh: Covers the business of law, auto Detroit Red Wings’ last lease, ap- suppliers, manufacturing and steel. (313) 446- the Detroit City Council July 29 to proved in March, expires. can simply more efficiently man- said Detroit had “pro forma operat- 6042 or [email protected] reject seeking contractor bids. The age their assets. ing income” of $12.3 million on Sherri Welch, senior reporter: Covers nonprofits, That deal, approved for $1 mil- services, retail and hospitality. (313) 446-1694 or state emergency manager law al- lion per year retroactive to 2010, Besides structures that need re- $23.4 million of parking system rev- [email protected] lowed Orr to proceed without also called for a $5.2 million pay- pair, the city has previously esti- enue in the fiscal year ended June LANSING BUREAU Chris Gautz: Covers business issues at the Capitol council approval during his 18- ment to the city to resolve a dis- mated about half of its parking me- 30, 2013. But a Comprehensive An- and utilities. (517) 403-4403 or [email protected] month appointment by Gov. Rick pute with the Wings over cable TV ters are broken. Orr had argued nual Financial Report for the same ADVERTISING Snyder, which expired last week. programming fees, and for the city that privatization deals in other year said the city’s Parking Fund SALES INQUIRIES (313) 446-6052; FAX (313) Another move by Orr was to push to bear the garage repair cost. The cities have improved repair times had lost $2.9 million over the same 393-0997 to increase parking revenue. He in- 350-space Detroit cultural center and operating rates. year, after it paid down bond debt SALES MANAGER Tammy Rokowski SENIOR ACCOUNT EXECUTIVE: Matthew J. creased parking violation tickets garage along Third Street is also Norwalk, Conn.-based Xerox Corp. and other non-operating costs. Langan starting June 1 from $20 to $45 for closed due to disrepair. helped make improvements to more Chad Halcom: (313) 446-6796, ADVERTISING SALES Christine Galasso, Jeff expired meters, and from $30 to $45 than 3,600 parking meters in Indi- [email protected]. Twitter: Lasser, Joe Miller, Sarah Stachowicz CLASSIFIED SALES Angela Schutte, manager, for double parking or blocking a Best practices anapolis after ParkIndy LLC entered a @chadhalcom (313)-446-6051 driveway, after an analysis by city 50-year lease deal in 2011 worth Tom Henderson contributed to DIGITAL MARKETING MANAGER consultants determined that the When it comes to parking, city more than $200 million for the city. this story. Jennifer Chinn AUDIENCE DEVELOPMENT DIRECTOR Eric Cedo EVENTS MANAGER Kacey Anderson SENIOR PRODUCER FOR DIGITAL/ONLINE PRODUCTS Pierrette Dagg SENIOR ART DIRECTOR Sylvia Kolaski SALES SUPPORT Suzanne Janik, YahNica Crawford Stadium: PRODUCTION MANAGER Wendy Kobylarz ‘The Corner’ finally may have a new life PRODUCTION SUPERVISOR Andrew Spanos ■ From Page 3 CUSTOMER SERVICE 3 and Zone 4. want to see the site developed. out to the neigh- of Detroit PAL. “It’s about making MAIN NUMBER: Call (877) 824-9374 The Detroit Economic Development “We are thinking of this site a borhood people. it a place where Detroiters feel or [email protected] Corp. was scheduled to pick a de- lot like Campus Martius,” he said. It’s the perfect proud and creating an environment SUBSCRIPTIONS $59 one year, $98 two years. Out of state, $79 one year, $138 for two years. veloper for commercial redevelop- “This is really a community center fit, keeping it an for the next generation to play ball.” Outside U.S.A., add $48 per year to out-of-state ment by Aug. 26, according to the that we want to build there, their urban develop- Detroit PAL provides games, rate for surface mail. Call (313) 446-0450 or RFP, but developers are still wait- town square in the neighborhood.” ment.” sports leagues, camps and clinics (877) 824-9374. SINGLE COPIES: (877) 824-9374 ing for final approval. Larson declined to get specific Cooley said to more than 11,000 children in the REPRINTS: (212) 210-0750; The DEGC declined to reveal a with his group’s proposal but said multifamily city in 11 different sports. Its cur- or Alicia Samuel at [email protected] TO FIND A DATE A STORY WAS PUBLISHED: timeline for the process. it will “wrap the rents in Cork- rent headquarters are on Willis (313) 446-0406 or e-mail [email protected] “(The DEGC) is taking the time old ballpark town are about Street west of Woodward Avenue CRAIN’S DETROIT BUSINESS IS PUBLISHED BY necessary to develop recommenda- with a series of $1.50 per square in Midtown. CRAIN COMMUNICATIONS INC. Cooley CHAIRMAN Keith E. Crain tions to the EDC board that have neighborhood- foot and $12 to Also as part of the agreement, PRESIDENT Rance Crain high possibilities for success,” Bob style retail and $15 per square foot for retail. PAL and the conservancy have TREASURER Mary Kay Crain Rossbach, media relations repre- residential.” PAL and the conservancy have conditional rights to develop the Executive Vice President/Operations William A. Morrow sentative for the DEGC, wrote in “Corktown is until Sept. 30 to issue plans to the area along the Fisher Freeway, Executive Vice President/Director of Strategic an email to Crain’s last week. a very unique DEGC. The plan is to build a new Zone 3, until Jan. 1, 2018. Operations Chris Crain Executive Vice President/Director of Corporate Roxbury, developers of the David neighborhood,” PAL headquarters along Cochrane Ritchey said the group currently Operations KC Crain Whitney Building, the Globe Trad- Larson said. Street; the baseball field would cov- has no plans for Zone 3. Vice President/Production & Manufacturing Dave Kamis ing Co. building for the Michigan De- “This is an oper about the same footprint as the The site of Tiger Stadium has seen Chief Financial Officer partment of Natural Resources and oth- Larson portunity to fill field on which the Tigers played redevelopment plans in the past. Thomas Stevens Chief Information Officer er local projects, proposed a the area with 24-7 activity and to from 1912 to 1999, until Comerica Plans dating back to before 2006 Anthony DiPonio development of 180 market-rate one-, continue to strengthen the link- Park opened downtown in 2000. included total demolition for con- G.D. Crain Jr. Founder (1885-1973) two- and three-bedroom apartments ages between downtown and Cork- The EDC will then have 15 busi- struction of a major retail store and Mrs. G.D. Crain Jr. Chairman (1911-1996) EDITORIAL & BUSINESS OFFICES: as well as retail space with two large town and get back the street-level ness days to determine the project a $200 million rehabilitation within 1155 Gratiot Ave., Detroit MI 48207-2732; anchor tenants and an additional action that’s been missing for feasibility, according to a July the shell of the stadium to include (313) 446-6000 6,000 square feet of “neighborhood some time.” memorandum of understanding. luxury condos and a health club. Cable address: TWX 248-221-5122 AUTNEW DET CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 retail space,” said James Van Dyke, Ryan Cooley, owner of O’Connor Once approved, Detroit PAL, the In 2000, St. Louis-based Mc- is published weekly, except for a special issue the third week of August, and no issue the third week vice president of development. Realty Detroit LLC in Corktown, said conservancy and the EDC will ne- Cormick Baron Associates Inc. proof December by Crain Communications Inc. at “We have an interest from a num- the project, and the development gotiate a development agreement. posed redevelopment in the stadi- 1155 Gratiot Ave., Detroit MI 48207-2732. Periodicals postage paid at Detroit, MI and ber of groups who want a presence plans, fill a need in the area. The The group currently has the um, but talks with the city additional mailing offices. POSTMASTER: Send there, including a Detroit sports- developers also worked to include bulk of a $3.8 million federal ear- apparently broke down. address changes to CRAIN’S DETROIT BUSINESS, Circulation Department, P.O. Box 07925, Detroit, themed restaurant, which would be feedback from other stakeholders mark for redevelopment of the site In 2001, a group of private in- MI 48207-9732. GST # 136760444. Printed in very exciting,” Van Dyke said. in their proposals, he said. in the wings. vestors pitched leasing the stadi- U.S.A. Entire contents copyright 2014 by Crain He added that Roxbury has been “The retail space demand is “We’re still sorting out the final um to make it a home for minor- Communications Inc. All rights reserved. Reproduction or use of editorial content in any meeting with the Corktown busi- there; there is no space in Corktown details, but we want to restore the league and college baseball games. manner without permission is strictly prohibited. ness community and neighbor- available,” Cooley said. “Everyone ball diamond and capture the magic The stadium was demolished in hood associations on how they working on (the project) reached of the field,” said Tim Ritchey, CEO 2009. 20140929-NEWS--0030-NAT-CCI-CD_-- 9/26/2014 5:33 PM Page 1

Page 30 CRAIN’S DETROIT BUSINESS September 29, 2014 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF SEPT. 20-26 Macomb-OU Incubator GM names TURNING SHOVELS FOR ARENA Duo Security offers tech cash, support The Macomb-OU Incubator, Blanchard to lead the Sterling Heights-based business incubator run by Oakland University, is offer- city initiatives VC round ing $20,000 in cash and in- kind services in a business- eneral Motors Co. ap- pitch competition open to pointed John Blan- young, fast-growing tech G chard as lead execu- companies. tive for the company’s caps season First place is $8,500 in initiatives and projects with- cash and a package of sup- in the city of Detroit and t was a good summer ents and family work 1,200 port services from the incu- communities throughout for Dug Song, CEO and acres east of Saginaw. bator, with second place Southeast Michigan. Blan- I co-founder of Duo Secu- “We are excited to have worth $1,500 in cash and chard, 52, has been director rity Inc., an Ann Arbor- earned the trust of farmers support services and third of GM local government rela- based, fast-growing around the country,” Voll- place worth $500 in cash tions since 2011. He will con- provider of highly secure, mar, CEO and co-founder of and support. tinue to represent the com- cloud-based authentication the Ann Arbor-based compa- The contest is open to pany on several local boards services for companies. ny, said in a press release. Michigan-based companies and commissions. ANJANA SCHROEDER/CRAIN’S DETROIT BUSINESS On June 21, the Ann Ar- The Web-based software with revenue of $2.5 million Construction of the new Detroit Red Wings arena got bor Skatepark, a 30,000- soaks up publicly available or less that have been in underway Thursday with a ceremonial groundbreaking at the square-foot data — mar- venue’s Woodward Avenue and Fisher Freeway location. Gov. business for five years or ON THE MOVE park free to ket prices, Rick Snyder (from left), Ilitch Holdings Inc. President and less. The deadline for entry all skating rainfall, Thomas Shafer was CEO Chris Ilitch, Mayor Mike Duggan and Detroit City is Oct. 14, with finalists an- enthusiasts, crop rota- named president of Troy- Council President Pro-Tem George Cushingberry Jr. launched nounced on Oct. 28 and the opened in tions and in- based Talmer Bank and Trust the $650 million project, which also includes plans for a 45- pitch contest on Dec. 11. Veterans ventory — and COO of its holding com- block entertainment district. Finalists will also get a Memorial and delivers pany, Talmer Bancorp Inc. one-hour prep session for Park in Ann it to farmers David Provost, president and Rochester Hills, effective counsel, were arraigned on their pitches. Arbor. For in easy-to- CEO of Talmer Bancorp and in December. Stores in charges of misconduct in Entrepreneurs can apply years, Song, view dis- chairman and CEO of the Flint, Burton and Port office and willful neglect of at www.oakland.edu/ Song a member of Vollmar plays. Farm- bank, had been the bank’s Huron also will close. duty tied to the troubled macombouinc. the 2012 class of Crain’s “40 ers can access the president; there had been no Detroit-based United Wayne County Jail project, under 40,” had been one of cloud-based system from the COO at the holding compa- Way for Southeastern Michi- AP reported. the main organizers behind field, allowing them to bet- Internet’s down, so let’s ny. Shafer had been presi- gan launched its annual giv- Detroit’s transporta- getting park space set aside ter manage operations on dent of Ohio-based First ing campaign, setting a goal tion system is getting more Place Bank for his fellow hobbyists. the spot. use the Volt! , acquired by to raise $42 million, up $2 than $32 million in federal Talmer in 2012. million from its 2013-14 goal. Summer ended last Mon- Things ground to a halt and state grants to buy up Mark Forchette was The Chaldean Communi- day, Sept. 22, the day it was one morning this month at to 50 new hybrid and clean Car czar on Cadillac move: named president and CEO ty Foundation was set to announced that Duo Securi- Buff Whelan Chevrolet in Ster- diesel buses for its aging at Plymouth Township- break ground on a $3 mil- ty had raised $12 million in It’s not driving me crazy ling Heights after the deal- public fleet, AP reported. based Delphinus Medical lion, 11,500-square-foot a Series B round of venture ership’s Internet connec- Construction started The state’s car czar is Technologies Inc. Forchette, community center in Ster- capital, led by Benchmark, a tion went dead. Staffers on Sea Life Michigan, a downplaying the move by formerly president and CEO ling Heights. The project, Silicon Valley-based firm, couldn’t run lease pay- 35,000-square-foot aquari- General Motors Co. to spin at Santa Clara, Calif.-based slated for completion next um being built at the Great and joined by Google Ven- ments, find cars in invento- its Cadillac brand into a medical device maker Opti- year, will replace the foun- Lakes Crossing Outlets in tures, True Ventures and ry or report sales to the fac- separate business unit and Medica, replaces Mark Mors- dation’s 2,500-square-foot Auburn Hills. The attrac- Radar Partners, three other tory. Then a lightbulb came move its global headquar- field, interim president and leased location. tion, from London-based West Coast VCs. on for Matthew Oleszczuk. ters to New York City. CEO since October. Rhode Island-based Merlin Entertainment plc at In 2009, Song and Jon The new-car salesman re- “This is not a massive Citizens Financial Group Inc., the Taubman Centers Inc.- Oberheide co-founded Duo. membered that a few of the thing,” said Nigel Francis, se- which operates Charter One owned mall, is scheduled to In 2000, Song was one of five showroom models were COMPANY NEWS nior automotive adviser for branches in Michigan, had open next spring. self-described geeks and equipped with 4G LTE ser- the state of Michigan and a Japan-based Yazaki its initial public offering Republican Gov. Rick hackers who co-founded Ar- vice, a feature that Chevy is senior vice president at the Corp., with its Yazaki North on the New York Stock Ex- Snyder and Democratic op- bor Networks, a University of rolling out across most of Michigan Economic Develop- America Inc. subsidiary in change after reducing its ponent Mark Schauer Michigan spinoff doing net- its 2015 models. The connec- ment Corp. Canton Township, agreed in target price. The IPO, agreed to appear Oct. 12 at work security that would tion through OnStar pro- In all, about 50 jobs will federal court in Detroit to which raised $3 billion, a televised town hall-style attract $33 million in ven- vides a mobile hot spot that leave the state next year pay $100 million in a civil was the largest bank IPO in forum, breaking their im- ture capital over the next gives users a high-speed In- when Cadillac moves its case related to its three-year a decade in the U.S. passe over whether to de- two years. ternet connection for up to sales and marketing team to criminal prosecution of au- bate the state’s issues side In 2010, Arbor Networks seven devices. was sold for an undisclosed New York. tomotive supplier price-fix- THER NEWS by side this fall. “It’s a small number of Oleszczuk put a ’15 Volt ing. About $24 million of the O The Detroit Symphony sum, which by all accounts plug-in hybrid into accesso- made a nice return for in- jobs,” Francis said. “Every settlement is earmarked for The Equal Employment Orchestra’s neighborhood job counts, but this has al- ry mode, keeping it plugged auto dealerships; $76 mil- Opportunity Commission concert series will contin- vestors, to Texas-based Tek- into a charging station to tronix Corp. most certainly more to do lion will go to consumers. filed its first lawsuits to ue this year on the with the executive and avoid battery drain. Within The Institute for Popula- protect transgender people strength of a $3.75 million where that person wants to 30 minutes, several sales tion Health, the nonprofit that in the workplace, accusing grant from the William AgriSight software grows have his top office.” consultants’ desktop com- acts as the city of Detroit’s R.G. & G.R. Harris Funeral Davidson Foundation. The trust with nation’s farmers In its official announce- puters were connected. health department, was to Homes in Garden City and DSO has renamed the per- ment, new Cadillac Presi- The staff members were lay off about 135 employees, a Lakeland, Fla., eye clinic formances the William Business is sprouting for dent Johan de Nysschen said laughing because the signal according to a Worker Ad- of illegally firing employ- Davidson Neighborhood Jesse Vollmar. the move came because strength topped the dealer- justment and Retraining No- ees who were making a Concert Series. In January, his company, “there is no city in the world ship’s internal network. tice filed with the state. transition to female, AP re- President Barack Oba- AgriSight Inc., raised $4 mil- where the inhabitants are Oleszczuk then fired up a Dexter-based Northern ported. ma issued a federal disaster lion. He was recognized as a more immersed in a premi- Malibu, to connect another United Brewing Co. LLC plans Wayne County Circuit declaration for Macomb, Crain’s “20 in Their 20s” um lifestyle than in New seven desktops. Once both to open its fourth Jolly Pump- Court Judge Sheila Gibson, Oakland and Wayne coun- winner this spring. And York.” He went on to add cars were beaming signals, kin microbrewery and dis- who was repeatedly late to ties in the wake of massive now he’s announced that that “establishing our new sales staffers used the op- tillery location early next work, was suspended with- flooding last month, mak- more than 15 percent of the global headquarters in Soho portunity as — what else? year in Detroit. The space in out pay for 30 days, effec- ing available federal fund- nation’s row crop farms use places Cadillac at the epicen- — a selling tool. the historic Willys Overland tive Oct. 8, AP reported. ing to those affected. AgriSight’s software, ter of sophisticated living.” “One lady asked why the Building at 441 W. Canfield The Michigan Supreme Court Michigan Gov. Rick FarmLogs, to manage their Wrong, Francis said. Volt was on, and we told her St. in Midtown will join loca- accepted a settlement be- Snyder said that the finan- crops. That means his com- “I think we’ve got a much that our landline was down tions in Ann Arbor, Dexter tween Gibson and the state cial emergency has been pany has more than $11 bil- better standard of living in and the 4G connection was and Traverse City. Judicial Tenure Commission. resolved in Allen Park, and lion in crops under manage- Detroit than you would ever keeping our network go- Kmart announced the Carla Sledge, former he appointed a transition ment. have in New York,” Francis ing,” Oleszczuk said. “She closing of five Michigan Wayne County CFO, and advisory board to aid the Not bad for a fifth-genera- said. “My money goes a lot thought that was pretty im- stores, including locations Steven Collins, the county’s return to local control after tion farm boy whose par- farther here, that’s for sure.” pressive.” in Madison Heights and chief assistant corporation two years, AP reported. DBpageAD_DBpageAD.qxd 9/17/2014 4:29 PM Page 1

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