Molina to Move to Bigger Troy HQ

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The company has about 300 em- Estimate: Medicaid biz could bring 150-300 jobs ployees in Troy. Yu said the company does not know precisely how How did they pay for it? BY KIRK PINHO py 90,000 square feet. many employees it will add be- AND JAY GREENE The company also continues to cause of state contracts “still com- Some ballpark estimates CRAIN’S DETROIT BUSINESS look for downtown Detroit office ing down the pipeline.” space for a satellite office. Jim Berkemeier, vice president The state’s third-largest Medic- Sunny Yu, a spokeswoman for CRAIN’S aid HMO plans to double down on Long Beach, Calif.-based Molina of Southfield-based Advocate Com- mercial Real Estate Advisors, said MICHIGAN BUSINESS headquarters office space in Troy COSTAR GROUP INC. Healthcare Inc., the parent company to keep up with a rapidly growing Molina Healthcare of Michigan will of Molina Healthcare of Michigan, 90,000 square feet could accommo- workforce tied to expanding Med- move into the Troy Corporate Center. said its operations in the state will date 450-600 employees, or 150-300 icaid business in Michigan. continue to “continue to grow and new hires, based on the industry Molina Healthcare of Michigan is in the Troy Corporate Center on West hire as needed.” Michigan’s expan- standard of 150-200 square feet of moving in the third quarter to a pur- Long Lake Road east of Crooks sion of Medicaid has been a boon office space per person. chased 197,000-square-foot building Road. It’s planning to initially occu- for business. See Molina, Page 33

Tourism dollars conjure dreams of fields, Page 19 Market rise Second Stage could help restore city Families on staying in biz, staying together, Page 11 pension cuts This Just In BY CHAD HALCOM CRAIN’S DETROIT BUSINESS Willow Run Airport names The pension benefit cuts Detroit retired Marine pilot as director has proposed for more than 21,000 retired city employees in bank- Christopher Mullin, 51, a re- ruptcy court could prove fairly cently retired U.S. Marine “We have stores or boutiques that you can’t find everywhere,” short-lived, depending on how Corps pilot and aviation offi- said Michelle Lewis, who opened Painting with a Twist in quickly the pension plans get out- cer, has been appointed di- Ferndale in 2010 and expanded three years later. side funding and whether the rector of Willow Run Airport. JOHN SOBCZAK stock market continues to thrive. Mullin will assume control Much of the narrative about of day-to-day operations at the post-bankruptcy pension benefits commercial and cargo airport has dealt in immutable numbers: that straddles Van Buren Compensation cuts of 6 percent Township and Ypsilanti and 26 percent, respectively, for Township after being hired Finding Ferndale the Police and Fire Retirement Sys- by Wayne County Airport Authori- tem and General Retirement System, ty CEO Thomas Naughton, ac- rector of the Ferndale Downtown Development Authority. even deeper cuts if they oppose the cording to a Friday statement. In 2000, vacancy in downtown Ferndale was well City’s biz-friendly moves attract city’s plan of adjustment in court, Mullin replaces Sean Bros- over 30 percent, she said. Today, the core downtown no cost-of-living adjustments for nan, who was promoted to is just 2 percent vacant, and the outskirts of the years to come, and a drastic over- vice president of mainte- companies, spur expansions downtown are just 4 percent vacant. haul of retiree health care. nance and airfield operations Small-business expansions are only part of the But the plan allows for trustees for both Detroit Metropolitan BY KIRK PINHO story in Ferndale. Industrial companies are invest- to approve restoring some lost ben- Airport and Willow Run. CRAIN’S DETROIT BUSINESS ing in new space, a mixed-use development that will efits, and COLA, if at any time the Mullin retired from the add needed office space and parking downtown is hree years after Michelle Lewis opened her more conservative projections re- Marines in October. He was a being planned, and businesses throughout the inner first Painting with a Twist franchise in down- quested by the city call for the military jet pilot and served ring suburb are growing their workforces. Ttown Ferndale, business was so good that she plans to become more than 80 per- 29 years in aviation support City officials and business owners credit an im- needed to double the studio’s size to 5,000 square cent funded by 2023. and planning roles. proved Michigan economy and a simpler city busi- feet on West Nine Mile Road. And those restorations, once The airport authority is ness licensing and permitting process to Ferndale’s Lewis’ story isn’t an aberration downtown, where given, would be permanent. the seven-member board that latest investment spurt. 14 businesses have expanded into larger space dur- That sounds a long way off right oversees both airports. It hasn’t been easy, said Mayor David Coulter, ing the last two years or are opening this year, ac- — Bill Shea cording to Cristina Sheppard-Decius, executive di- See Ferndale, Page 32 See Pension, Page 33

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Page 2 CRAIN’S DETROIT BUSINESS April 14, 2014

MICHIGAN BRIEFS Harsh winter weather damages Lake Michigan, The Associated Press reported. The modifications Michigan’s fruit trees, vines Is Buffett about to swallow Kellogg for breakfast? are intended to resolve a dispute Now that the thaw is upon us to with federal regulators over dump- Stories about Kellogg Co. usually begin with some targets or “elephants.” Kellogg also may appeal to stay (pause for prayer), the state’s ing the ash into the lake. The 410- reference to Tony the Tiger and usually riffs on PepsiCo Inc., owner of Quaker oatmeal, or Nestle SA, fruit farmers can check their trees. foot Badger offers 60-mile cruises be- “they’re great!” The humor probably was lost on said Edward Jones & Co. tween Ludington and Manitowoc, Some already have found damage, residents of Kellogg’s hometown of Battle Creek Kellogg spokesman Kris Charles said the compa- Wis., between May and October. the Michigan Farm Bureau said in a sometime in the mid-1970s, so let’s move on to the ny doesn’t respond to speculation. A 3G representa- report. “There certainly is going to Ⅲ Last month, Michigan Briefs fact that some folks think Warren Buffett may want tive declined to comment, and Buffett didn’t re- be some bud damage and potential noted that Kalamazoo-based Bron- to add Kellogg to his holdings. spond to a request for comment sent to an assistant. damage to the wood,” said Ken son Healthcare planned to open a Kellogg, maker of breakfast cereal and assorted Like Heinz’s ketchup, Kellogg’s products probably health clinic in a Meijer Inc. store in Nye, a horticulture and forestry snacks, surged the most since 2009 this month amid will be around a century from now, fitting Buffett’s specialist with the bureau. Portage. Last week, the Grand speculation it might become the industry’s next preference for brands with staying power, said Tom Rapids Business Journal reported Michigan is the national center takeover target, Bloomberg News reported. The com- Russo, a partner at Lancaster, Pa.-based Gardner for tart cherry production and also that the Walker-based retailer pany’s well-known products may entice billionaire Russo & Gardner. Kellogg also meets several of Buf- strengthened a relationship with a major producer of apples and Buffett, who teamed with 3G Capital last year to ac- fett’s financial criteria for acquisition candidates. He New Jersey-based U.S. Vision, sweet cherries. “Apples probably quire H.J. Heinz & Co., said analysts at Gardner Russo & usually prefers “simple” businesses with “consis- which operates in 50 of Meijer’s 200- weren’t affected too much, but Gardner. tent” earnings power and “good” returns on equity plus stores. Under the new relation- we’ll see some damage to cherries, In his latest letter to Berkshire Hathaway Inc.’s while employing little or no debt, according to his an- ship, U.S. Vision, the sixth-largest peaches, grapes and blueberries,” shareholders, Buffett said he’s still looking for big nual report. optical retailer, will be Meijer’s ex- Nye said in a statement reported clusive vision center. by The Associated Press. Ⅲ The health of this year’s crop de- industrial purchasing managers ents. The Grand Rapids Business MICH-CELLANEOUS Michigan State University is join- pends in part on how the spring every month, said his index of new Journal reports that The B.O.B. ing food and drink makers and sell- shapes up, he said. “The best-case orders showed strong improve- restaurant in downtown Grand Ⅲ Bank of America Corp. will sell ers to create the Center for Research on Ingredient Safety, The Associated scenario now is for us to stay cool ment, while his production index Rapids plans to devote a chunk of 11 branches in central and eastern Press reported. MSU and the Grocery as long as possible.” shows more modest gains. The em- a vertical garden — that is, a gar- Michigan to Columbus, Ohio- ployment index also improved. den planted on the wall of a build- based Huntington Bancshares Inc., Manufacturers Association say the Another survey, this one by PNC ing — to 1,500 herb and vegetable Bloomberg News reported. Hunt- center “will serve as a reliable and Surveys suggest economy’s up, Bank, found increased optimism plants for use by The B.O.B.’s ington’s branch network will ex- unbiased source for information, research, training and analysis on and stronger hiring plans among chefs. pand into Midland, Alma, Port poised to persist its perkiness the safe use of chemical ingredients small-business owners in Michi- The garden, left over from last Huron, Gratiot, St. Clair, Algonac Growth in West Michigan’s in- in consumer packaged goods.” gan for the next six months. year’s ArtPrize competition, was and Richmond and will grow in dustrial sector began to accelerate the creation of West Michigan the Saginaw and Bay City areas. Ⅲ Three months after a fire de- in March, MLive.com reported, artist Dave MacKenzie. The paper Ⅲ Lake Michigan Carferry, opera- stroyed a big chunk of Fifth Third citing a survey conducted by econ- Grand Rapids restaurant plans notes that Jared Miller, executive tors of the S.S. Badger, say they’ve Park, home of the West Michigan omist Brian Long, director of sup- chef at The B.O.B., is “extremely begun retrofitting the ship to allow Whitecaps, the team opened its 2014 ply chain research for Grand Valley to grow locally on a wall garden excited.” Which probably means ash from its coal-fired burners to be season on schedule. The White- State University. Well, this certainly is a new ap- he’s not the guy who’s going to stored onboard while the boat hauls caps are the Class A minor-league Long, who surveys the region’s proach to locally grown ingredi- have to harvest the crops. passengers and vehicles across affiliate of the Detroit Tigers.

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April 14, 2014 CRAIN’S DETROIT BUSINESS Page 3 Arena JV shares expertise, risks Inside ISTOCK PHOTO pose center to be venture and Olympia Development of Barton Malow teams with Detroit, built west of Michigan, the arena developer on Woodward Av- behalf of Red Wings owners Mike enue at I-75 in and Marian Ilitch, will be signed Indianapolis construction firms Detroit. by April 30, said Alex Ivanikiw, se- BY BILL SHEA the majority partner in a joint ven- The other com- nior vice president at Barton Mal- CRAIN’S DETROIT BUSINESS ture formed to construct a $450 mil- panies in the ow and one of the executives over- lion, 18,000-seat arena scheduled to joint venture are seeing the project. Olympia will The local construction giant that open for the 2016 hockey season. Detroit-based manage the DDA-owned arena un- built the Detroit Red Wings’ current Barton Malow-Hunt-White last week White Construction der a 35-year concession manage- home will also build their next one. was approved by the Downtown De- and Indianapo- Ivanikiw ment agreement. Southfield-based Barton Malow Co. velopment Authority as the general lis-based Hunt Using a joint venture for con- Revamped charity poker was hired by the city of Detroit in contractor to oversee construction Construction Group. 1979 to build Joe Louis Arena and is of the 650,000-square-foot multipur- A contract between the joint See Arena, Page 31 rules in the cards, Page 6

for the Detroit Red Wings for $2.5 million in 1927. Company index Stadium projects using both public and private money became common These companies have significant mention in this If you fund it ... nationwide by the 1990s, and Comerica Park and Ford Field were week’s Crain’s Detroit Business: financed that way. The third Red Wings arena will be as well. Advocate Commercial Real Estate Advisors ...... 1 onstruction financing for stadiums in Detroit has been a mix of Financial data on Comerica Park and Ford Field are vexing. The original Alex & Beck ...... 29 public and private money — or both — since the Detroit Tigers built team construction contracts don’t reflect subsequent changes. The Allied Printing ...... 32 CNavin Field (which later became Tiger Stadium) in 1912 for teams don’t discuss their private financing. Public agencies said Altair Engineering ...... 29 $300,000. The team sold the stadium to the city for $1 in 1978. Detroit conflicting things. Art Van Furniture ...... 21 paid $400,000 to raze it in 2009. Autoliv ...... 25 Below are the best numbers available, based on published data and Barton Malow ...... 3 Detroit itself got into the stadium business when it built Olympia Stadium documents from public agencies and limited information from the teams: Barton Malow-Hunt-White ...... 3 Brass Aluminum Forging Enterprises ...... 32 Brembo North America ...... 25 part of a 30-year, $66 million Ⅲ How it operates: Chrysler Group ...... 25 COMERICA PARK deal inked in 1998. Comerica Bank ...... 4 Revenue: Tigers keep all Ⅲ How it was funded: Community Choice Credit Union ...... 4 Cost: $326 million Maintenance: Funded by Compuware ...... 25 Stadium authority bonds, Cooper-Standard Automotive ...... 25 Team: Detroit Tigers annual deposits of paid off by rental car and $300,000 from the Tigers Davenport University ...... 14, 15 Seats: 41,681 hotel room taxes: $86 and $250,000 from the DDA Denso International America ...... 7 million Detroit Red Wings ...... 3 Opened: 2000 Lease: 35 years. Six 10-year Downtown Development Dow Chemical ...... 25 Owner: Detroit-Wayne County options. Eaton Steel Bar ...... 14 Authority: $40 million Stadium Authority Rent: The Tigers pay $1 a year for Federal-Mogul ...... 25 Naming rights: Dallas-based Michigan Strategic Fund: the 35-year lease, then $1 million Fifth Third Bank ...... 4 Comerica Bank is paying the team $55 million annually for each of the six 10-year Flagstar Bank ...... 4 Ilitch family financing: $145 million Foley & Lardner ...... 31 NATHAN SKID/CDB $2.2 million a year until 2028 as lease extension options exercised. Friedman Integrated Real Estate Solutions ...... 33 General Motors ...... 25 Gregory J. Schwartz ...... 11 The Henry Ford ...... 23 DDA: $70 million Huron Valley State Bank ...... 4 FORD FIELD City: $15 million Ideal Group ...... 12 J.W. Westcott ...... 12 Cost: $500 million Stadium authority: $20 million Kelly Services ...... 25 Team: Detroit Lions Kolene ...... 12 Wayne County: $20 million Seats: 64,500 Lee Group ...... 16 Corporate contributions: Level One Bank ...... 4 Opened: 2002 $50 million Meritor ...... 25 Owner: Detroit-Wayne County Stadium Authority Michigan Culinary Tourism Alliance ...... 23 Lions: $325 million Naming rights: Ford Motor Co. paid the team $50 million Molina Healthcare of Michigan ...... 1 Ⅲ How it operates: MSX International ...... 25 in three lump sums in 2002 for 25-year rights. The Revenue: Lions keep all Oakland University ...... 15 automaker agreed in 2005 to pay another $6.6 million O’Connor Development ...... 29 through 2015 to add its name to the stadium roof and Maintenance: Funded by a $300,000 annual Olympia Development of Michigan ...... 3 elsewhere on the exterior. contribution by the Lions Orleans Landing ...... 5 Painting with a Twist ...... 1 Ⅲ How it was funded: Lease: 35 years. Six 10-year options. NATHAN SKID/CDB Plymouth Venture Partners III ...... 10 Prima Civitas ...... 14 Public Lumber ...... 11, 13 Ⅲ How it operates: Red Wings keep all under The Recovery Project ...... 16 JOE LOUIS ARENA Renaissance Venture Capital Fund ...... 10 lease approved in March. Under previous lease, Rust Belt Market ...... 32 Cost: $30.3 million city collected taxes on tickets, concessions and Search Optics ...... 32 Team: Detroit Red Wings suites sales that generated $2 million and Simmons & Clark ...... 12 $3 million annually. Southwest Solutions ...... 14, 15 Seats: 20,066 Maintenance: Red Wings pay Sweet Potato Sensations ...... 12 Opened: 1979 Talmer Bank and Trust ...... 4 Lease: Retroactive to 2010 through 2015, signed in Owner: Detroit Building Authority/Municipal Parking Department TI Automotive ...... 25 March Valentine Distilling ...... 32 Naming rights: None Rent: Old lease required $25,000 monthly and $252,000 Valeo North America ...... 7 Ⅲ How it was built: annual use tax. New deal is $1 million annually 2010-15, Vibe Credit Union ...... 4 minus credit for property taxes. Five one-year options. Wayne State University ...... 30 NATHAN SKID/CDB $30.3 million in municipal bonds repaid mostly with U.S. funds West Michigan Sports Commission ...... 20 White Construction ...... 3 Woodward Avenue Brewery ...... 32 Woodward Willis ...... 29 from the DDA and $188 million NEW RED WINGS ARENA from Olympia, the real estate arm of Wings owners Mike and Cost: $450 million Marian Ilitch’s business Department index Team: Detroit Red Wings holdings BANKRUPTCIES ...... 6 Seats: 18,000 Ⅲ How it will operate: BUSINESS DIARY ...... 26 Opens: 2016 Revenue: Red Wings keep all CALENDAR ...... 27 Owner: Detroit Downtown Development Authority Maintenance: Reserve fund funded CLASSIFIED ADS ...... 29 by the state bonds Naming rights: Olympia Development of Michigan KEITH CRAIN...... 8 retains the right to sell the name. Lease: 35 years. Twelve five-year options. LETTERS...... 8 Ⅲ How it will be built: $450 million in Michigan Rent: $11.5 million concession fee paid to DDA, for JOHN SULLIVAN Strategic Fund bonds, to be paid off by $262 million bond retirement Site of new arena for the Detroit Red Wings MARY KRAMER ...... 19 OPINION ...... 8 OTHER VOICES ...... 9 Is there a hole in your schedule? PEOPLE ...... 28 THIS WEEK @ Look for an event to fill that void at Crain’s Executive Calendar. Find it at RUMBLINGS ...... 34 crainsdetroit.com under the Events menu. Just look for the red bar at the top STAGE TWO STRATEGIES ...... 16 WWW.CRAINSDETROIT.COM of the home page. WEEK ON THE WEB ...... 34 ISTOCK PHOTO 20140414-NEWS--0004-NAT-CCI-CD_-- 4/11/2014 5:03 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS April 14, 2014 End of support for Windows XP no security threat, area banks say

BY TOM HENDERSON abled on an bitowsky, said the bank will not CRAIN’S DETROIT BUSINESS ATM, making only pay the $5,000 that Ohio-based a breach of se- Diebold Inc. is charging to upgrade Banks, credit unions and indus- curity impossi- each of his three ATM’s software, try analysts say customers have lit- ble,” said but he is paying an additional tle to worry about as a result of Mi- Patrick $1,000 to upgrade to software that crosoft Corp. ending support last Fehring, the will be compatible with chip-em- week for its 12-year-old Windows bank’s presi- bedded credit and debit cards when XP operating system, which until dent and CEO. they are introduced next year. recently ran about 95 percent of the Flagstar Farmington Hills-based Communi- 440,000 ATMs in the United States. Bank, the ty Choice Credit Union, which has $531 The ending of support means that Until recently, largest brick- million in assets, has also decided to as hackers find new ways into XP Windows XP ran and-mortar do an upgrade at its 11 ATMs that systems, Microsoft won’t be doing about 95 percent of bank head- will incorporate the new chip tech- patches or issuing security updates the ATMs in the U.S. quartered in nology, according to chief technolo- to fix problems. People using XP sys- Michigan, with $9.4 billion in assets gy officer Dan Monroe. tems, whether on their home com- — Ally Bank is bigger but has no Paul Mazur, the chief informa- puters or at businesses they deal branches — has 137 ATMs. “We tion officer at Novi-based Vibe Cred- with, eventually could be at risk. have taken steps to mitigate the it Union, said Vibe replaced its 14 Some banks, like Troy-based sunsetting of XP, and we are confi- ATMs last summer, with advanced Talmer Bank and Trust, have upgraded dent that there is no material risk,” technology platforms that will ATM systems to other newer operat- said Susan Cherry-Bergesen, direc- make the current upgrade to Win- ing systems. Some, like PNC Bank tor of corporate communications. dows 7 much cheaper than the and J.P. Morgan Chase, have signed Milford-based Huron Valley State standard upgrade price of $5,000. contracts with Microsoft to contin- Bank is a tiny bank, with two Tom Henderson: (313) 446-0337, ue supporting XP-based machines. branches and $90 million in assets. [email protected]. Twitter: “Banks are on top of this. There’s Its president and CEO, Jack Shu- @tomhenderson2 no risk to the public,” said Dennis Koons, president and CEO of the Lansing-based Michigan Bankers As- sociation. “From the consumers’ point of view, this is a non-event.” The problem of XP-enabled ATMs is not especially urgent, Avivah Litan, an analyst at the research firm of Gartner Inc., told Bloomberg. Banks with ATMs running XP “will need to get off of it eventually, but it’s not an emergency situation,” said Litan, who said banks and cash-machine operators long ago took extra security precautions to seal off ATM software from hackers. However, industry analysts say, consumers might think twice about using independent ATMs not affiliated with banks. “The industry is well aware of the problem. We’ve been gearing up for it,” said David Provost, president and CEO of Talmer Bank. Talmer began upgrading the software at its 77 ATMs just after the first of the year, at a cost of between $5,000 and $7,000 per machine, and is almost done, Provost said. “The vast majority of our ATMs run over an isolated network,” said Kathleen Pitton, vice president of corporate communications at Comerica Bank. “Because it’s on an isolated network, it doesn’t have the potential vulnerability that others are facing. Only two of our ATMs in Michigan require WE’LL GET YOU TO THE TOP. conversion to Windows 7.” Comerica has about 640 ATMs The GVSU Seidman College of Business full- or nationwide, about 350 of them in Michigan. part-time M.B.A. is raising the bar. West Michigan’s “We have been well aware of Mi- premier business college is making it their business BUSINESS CONDITIONS CAN CHANGE crosoft’s plan to discontinue sup- AS QUICKLY AS THE WEATHER. port for Windows XP and have made to give you the tools to go far. Get in on the ground our plans accordingly,” said Jack ƃoor and apply for your future today. Riley, senior vice president and We can help. When businesses face the changing demands of market director for Fifth Third Bank growth, purchasing goods, or making payroll, they require a strong, in Michigan. yet flexible solution. Our asset-based lending solutions can be the Community bankers say they are answer ... whatever the climate. on top of the situation, too. Farmington Hills-based Level One Bank has eight ATMs, and all Contact me today! are being upgraded to Windows 7. 888.999.8050 “In the meantime, the current ATM Windows XP software is se- Matt Dekutoski cure. … Many of the features enabled for a PC are purposefully dis- 20140414-NEWS--0005-NAT-CCI-CD_-- 4/11/2014 2:31 PM Page 1

April 14, 2014 CRAIN’S DETROIT BUSINESS Page 5 Developer: Orleans Landing construction may begin in September

Detroit native Richard units, 46 two-bedroom downtown that project, which we hope will be Baron, chairman and CEO units and 34 two-bedroom who move in starting construction in June. of St. Louis-based McCor- townhouses in the first from the sub- mack Baron Salazar Develop- phase, according to EDC urbs, and Explain the genesis of this project ment Inc., expects con- documents. The second they want to and when we can expect the second struction to begin in phase would consist of 132 be in a new phase to begin. September on the $55 mil- one-bedroom units, 48 community. My hope is that over a five-year lion first phase of the two-bedroom units and 28 We think the period or so, we can build out more Orleans Landing mixed-use two-bedroom townhouses. rents will be and have close to 500 units in that development along the De- It also would have 12,000 very compet- area. The hope is that it will also be troit riverfront. square feet of retail space. itive — prob- a stimulus for other development to Last week, Baron re- Baron spoke about the ably $1.70 per occur. There are a number of va- ceived approval from the Q&A project with Crain’s re- square foot cant parking lots run by General Mo- Detroit Economic Develop- porter Kirk Pinho: or something tors Co. close to the Renaissance Cen- Richard Baron, COURTESY OF MCCORMACK BARON SALAZAR DEVELOPMENT INC. ment Corp. on three resolu- A rendering of Orleans Landing, a mixed-use development like that. ter, and there are some streets — tions approving the follow- McCormack Baron What’s next for Orleans planned on the Detroit River. Franklin and others — where we Salazar Landing? ing for the proposed Talk a little hope there will be additional devel- Development We have to complete we’ll be able to handle it ourselves development: bit about your Detroit roots. opment to create a 24-hour kind of Allow the Detroit of- our financing. We have to without the need for a broker. I was born and raised in the city community with different kinds of fice of Saginaw-based AKT Peerless finish processing for our D4 mort- Probably there will be a fitness services, businesses, more housing, at Livernois and Seven Mile. Environmental & Energy Services LLC gage with the FHA (Federal Housing center of some sort, then our man- food and restaurants. So it will be- I was in college at Oberlin to perform remediation on the de- Administration), and we have to agement and leasing office as well, come a very, very nice new commu- velopment site, along Atwater and complete our architectural draw- and there may be an opportunity College, and then I went to the Uni- nity for the city. Franklin streets between the De- ings. At that point, once we have for some sort of coffee shop or versity of California-Berkeley for quindre Cut Greenway and Ri- all of our financing completed, some other small kind of restau- graduate school. Then I came to Anything else you want to add? opelle Street. The contract with then we go to construction. rant. But we are not sure exactly the University of Michigan for law I think we are very excited AKT is for up to $165,100; an own- how that will sort out. We’ll know school in 1968. Then I was in a fel- about it. I think that it will be a reer’s contingency of $24,765 was What’s the timeline for construc- more about that next year. lowship program and was as- ally fine project for the city, and also approved. tion and accepting residents? signed to the St. Louis Legal Aid So- I’m very excited about really com- Accept $1 million from the The construction program will What will the price ranges on the ciety as part of that program. ing back home to help the city in Michigan Department of Environmen- probably be 18 months, and we apartments and townhomes be? I never left until I relocated to this next phase of its renaissance, tal Quality for site remediation. hope that we’ll be bringing the Based on our experiences in oth- New York about seven years ago. I so we are glad to be a part of it. Commit McCormack Baron first tenants in sometime in the er markets, the residents will gen- married and my wife and stepson and the EDC to basic terms of a de- summer of next year. erally be younger. They’ll proba- are here, so I came here, but I com- Will you rent a unit there? velopment agreement that allows bly be single (or in) a roommate mute to St. Louis or places like De- I suspect we probably will, for the EDC to accept grant funding How about for nailing down retail situation, part of the downtown troit, where I go pretty frequently sure. and proceed with remediation tenants? workforce, although we never these days. We are also involved Kirk Pinho: (313) 446-0412, kpin- work on the site. We’ll be doing that (leasing). We know. Sometimes we get others with the Strathmore (Hotel) in Mid- [email protected]. Twitter: @kirkpin- There would be 210 one-bedroom think that it’s small enough that who are just interested in living town, working with Sue Mosey on hoCDB

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Page 6 CRAIN’S DETROIT BUSINESS April 14, 2014 Revamped charity poker rules go to state panel, could be law in May

BY SHERRI WELCH fundraising be- suppliers and permanent poker gested by some members” of the to apply for each millionaire party CRAIN’S DETROIT BUSINESS yond the poker rooms who attended a March hear- joint committee, Kalm said in an license. parties as an in- ing. email. Background checks on all New proposed rules for charity dication of their The resubmitted rules allow up “Our intent has been to favor dealers must be performed by state poker games could take effect as legitimacy. to two millionaire parties per loca- the charities and ensure we have a Gaming Control Board staff. early as May if the state’s Joint Rick Kalm, ex- tion per day, rather than one as viable licensed supplier pool.” The committee has until the end Committee on Administrative Rules ecutive director earlier proposed, and increase the Other significant changes pro- of April to file a notice of objection doesn’t oppose them. of the Michigan amount charities can pay licensed posed under the new rules: to the rules if it disagrees with Among other things, the rules Gaming Control suppliers for expenses to up to 45 No more than four millionaire them. It would then be required to would place new limits on the Board, resubmit- percent of the event gross profits, parties per week are allowed at introduce a bill to remove the rule- amount of money that permanent Kalm ted the rules to rather than the earlier 35 percent any one location. making authority from the Gam- poker rooms and licensed suppli- the committee proposed. Three representatives from ing Control Board, delay the rules ers can make from the games — March 25. That was just days after The new plan also eliminates a the benefiting charity must be pre- from being filed for a year and/or and limit the number of games he’d withdrawn an earlier set of rule that would have only allowed sent at games, rather than the two rescind the rules once the Gaming that can take place concurrently at proposed rules to address concerns charities to conduct the games at a now required. Control Board files them to give a single location. The rules would by the committee based on feed- site in their county or an adjacent Charities must have raised the Legislature time to act, com- also require charities to show back from more than 50 representa- county. $500 outside of the poker games mittee counsel and clerk Marge they’ve done other types of tives of charities, millionaire party “This was a compromise as sug- during the preceding year in order Martin said. Kalm said poker rooms will no longer be able to rent equipment, run games or take 50 percent of the proceeds from the games, as they had been allowed to under oversight by the Michigan Lottery Bureau. The rules allow only licensed suppliers to assist with games, he said. Locations will only be allowed to charge the charity a rental fee of up to $250 for the space. The new charity poker rules will go into effect if the committee doesn’t object to them, but that may not be the end to the issue. In March, Sen. Rick Jones, R- Grand Ledge, introduced SB 878 to amend the Traxler-McCauley- Law-Bowman Bingo Act, with 11 senators from both parties as co- sponsors. The bill is currently before the Committee on Regulatory Reform. Among other things, the bill would legitimize permanent charity poker rooms in Michigan and allow them to supply gaming equipment for the games. It would also provide a licensing code for dealers and suppliers that assist charities in running the games and establish checks to ensure charities are legitimate, Jones said last month. A separate provision in the bill would treat racetracks differently than other gaming venues, allowing for up to seven charity poker games at a track (compared with up to six games concurrently at other locations). While charities already could host millionaire parties currently at racetracks, the provision in the bill green-lights racinos, which haven’t been approved by state legislators. Sherri Welch: (313) 446-1694, [email protected]. Twitter: @sherriwelch

BANKRUPTCIES The following businesses filed for protection in U.S. Bankruptcy Court in De- troit April 4-10. Under Chapter 11, a company files for reorganization. Chapter 7 involves total liquidation. Larson’s Insurance Solutions Agency Inc., 34441 Eight Mile Road, Suite 102, Livonia, voluntary Chapter 11. Assets and liabilities not available. Oxford Big Boy Inc., 955 S. Lapeer Road, Oxford, voluntary Chapter 11. Assets and liabilities not available. Rainbow Enterprises Co. Inc., 29433 Southfield Road, Southfield, voluntary Chapter 11. Assets and liabilities not available. — Bridget Vis 20140414-NEWS--0007-NAT-CCI-CD_-- 4/11/2014 3:45 PM Page 1

April 14, 2014 CRAIN’S DETROIT BUSINESS Page 7 Belle Isle traffic to go high-tech for transport conference

BY DUSTIN WALSH beautiful loca- nology companies will take place Visteon Corp. and Northville-based east Michigan over the next five CRAIN’S DETROIT BUSINESS tion, and it’s ide- on Belle Isle. IAV Automotive Engineering Inc. years, Belcher said. al for us; it’s Southfield-based Denso Interna- Belle Isle will also host a special A Detroit-themed festival will For four days in September, risky to demon- tional America Inc. will have two event for first responders and stu- also be held on the island for the Belle Isle runners, picnickers and strate these demonstrations. It will showcase dents. event, featuring Michigan-based anglers will be replaced by talking technologies on its human-machine interface for The demonstrations come on the food, beer and music, he said. cars, driverless vehicles and high- public streets, two connected vehicles, which will heels of major announcements re- The conference and exhibit event tech traffic systems. and now we can communicate with each other and garding connected and driverless at Cobo aim to build the business The futuristic Belle Isle demon- do it in a con- the infrastructure, and its cars in Michigan and the U.S. case for these technologies as well strations are part of the Intelligent trolled environ- advanced-cruise control technolo- In February, the National High- as educate about their functions. Transport Systems 21st World Con- Belcher ment with amaz- gy featuring steering control. way Traffic Safety Administration an- MDOT is planning to operate a traf- gress, running concurrently at ing views of the “We’ll have these vehicles work- nounced it would begin working to fic management center in Cobo for Cobo Center Sept. 7-11. Detroit skyline.” ing together to give the passengers allow vehicle-to-vehicle communi- the event, allowing attendees to see The event occurs every three Prior to the state’s offer, ITS was a good feel and cation technology on consumer how the state manages traffic lights, years, this marking the first time working with the city of Detroit taste of our light vehicles. Late last year, Gov. traffic flow and freeways. it’s been to Detroit. It’s expected to for permits to test the autonomous products,” said Rick Snyder signed automated mo- The World Congress is hosting draw as many as 10,000 business ex- technologies on the public roads Terry Helgesen, tor vehicle legislation, allowing several sessions specialized for ecutives, legislators and re- near Cobo Center, Belcher said. senior vice pres- for manufacturers to test driver- global government officials, chief searchers to showcase the latest in- During the event, Belle Isle will ident of indus- less cars on Michigan roads. technology officers, executives novations in transportation. be closed for four days to the gen- try and govern- “We began putting this together and engineers. Belle Isle will host live demon- eral public, with the exception of ment affairs at four years ago and a lot of things As many as 30 heads of state strations of driverless cars, includ- owners of boats docked at the De- Denso. “The have come together … to make this DOTs will be on hand for the con- ing passenger vehicles, commer- troit Yacht Club. Belle Isle loca- the best World Congress we’ve ference as well as 15 foreign trans- cial trucks and military vehicles, Rob Morosi, communications Helgesen tion allows us to ever seen,” Belcher said. portation ministers, Belcher said. and robotics. specialist at the Michigan Depart- demonstrate our The U.S. Department of Transporta- The event will also include an The island became a state park ment of Transportation, said the in- technologies with fewer limita- tion is expected to make an an- investor component for startups in February, when Michigan convenience to the public is miti- tions and give people a true nouncement Sept. 7 in support of and entrepreneurs, including a leased the city-owned park for 30 gated due to the time of year. demonstration of how these ma- expanding the connected car pilot matchmaking event. years relieving bankrupt Detroit “The event is during the work chines work.” program in Ann Arbor. The speaker series includes Bill from managing the area. week, and the kids are back in Troy-based Valeo North America The University of Michigan’s Ford Jr., Ford Motor Co. executive Scott Belcher, president of school,” Morosi said. “With this Inc. will demonstrate its au- Transportation Research Institute chairman; Lowell McAdam, Veri- Washington, D.C.-based ITS Ameri- event, we’re looking at bringing in tonomous parking technology, launched a study in 2012 of 3,000 zon Communications Inc. chairman ca, said the state’s offer of using thousands of people to touch and which allows drivers to leave their vehicles equipped with vehicle-to- and CEO; Kirk Steudle, MDOT di- the park for the World Congress feel these technologies, and Belle vehicle at a parking lot entrance vehicle and vehicle-to-infrastruc- rector, and Robert Slimp, CEO of proved how serious the state takes Isle is an ideal location to show- and send it to a parking space via ture technology. The group is ex- HNTB Infrastructure. More details at its stake in automotive. case what the technology can do in their smartphones. panding that pilot to 9,000 vehicles itsworldcongress.org. “Michigan is blazing the trail a closed environment.” Local demonstrators will in- over the next two years. Dustin Walsh: (313) 446-6042, for investment in automotive tech- More than 30 demonstrations by clude Troy-based Delphi Automotive The USDOT wants to bring the [email protected]. Twitter: nology… ,” he said. “Belle Isle is a automakers, suppliers and tech- plc, Van Buren Township-based total to 20,000 vehicles in South- @dustinpwalsh

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Page 8 CRAIN’S DETROIT BUSINESS April 14, 2014 OPINION LETTERS Medicare doc data Road opinion lacked on taxes Editor: ments” Mr. Hubbell says Michigan Crain’s Detroit Business This is in response to the March needs, in straight talk translates to welcomes letters to the editor. tax increases. I am not supporting 31 Other Voices column from All letters will be considered for George Hubbell, “Road funding publication, provided they are or opposing tax increases to im- offers opportunity plan needs fixing,” Page 8. signed and do not defame prove our roads, but I wonder why Regarding the numbers the individuals or organizations. the first answer for every problem he release last week of records of $77 billion in writer used to say Michigan’s gas Letters may be edited for length is always more money. Addition- ally, the federal government has Medicare payments to doctors, drug-testing companies tax was the lowest in the Great and clarity. Lakes region: The state excise tax been asking for an increase in the and others is a rich source of data, but as with most Write: Editor, Crain’s Detroit T on gasoline is 19 cents per gallon. federal gas tax since it has been Business, 1155 Gratiot Ave., data, will take time — and, in this case, specialized computer But when other fees and taxes, Detroit, MI 48207-2997. spending more than it takes in. Mayor Mike Duggan, keynoter software — to be fully understood. such as the sales tax, are factored Email: [email protected] The big headline, of course, was the eye-popping numbers. in, the total tax burden more than at a recent function, pointed out that if the only suggestion people Getting top billing was a Florida ophthalmologist who was doubles for gasoline — a total of 39.10 cents per gallon, making less than half go toward trans- have for Detroit’s problems is paid nearly $21 million in 2012 and has been found to have more money and more people, Michigan’s rates some of the high- portation.” This makes the reader overbilled Medicare in the past. then that is no solution at all be- est in the Midwest. When compar- think that more than half of the 19 cause there is no more money or Closer to home is Dr. Farid Fata, the Rochester Hills oncol- ing Michigan to other states in the cents goes toward schools and gov- more people. Duggan reiterated ogist who received more than $10 million in 2012 Medicare Great Lakes region, you have to in- ernment, because of the failure to that he is looking for solutions for clude all taxes and fees beyond the point out the additional 20.10 cents payments and is awaiting trial for purposely misdiagnosing Detroit’s problems with the money patients and then administering unnecessary chemotherapy excise tax, as each state taxes dif- tax per gallon. Changing the fact and people the city has now. A re- and other treatments. ferently. that Michigan does not dedicate all freshing approach. One can only Second, Mr. Hubbell wrote that taxes on gasoline toward road con- On average, according to The Washington Post, the biggest hope that state and federal govern- “most of the taxes we pay at the struction and repair could be the chunk of Medicare spending goes to doctor overhead, at 43 per- ments will follow his lead. pump are dedicated to schools and first step to better roads. Sue Peters cent, with doctors taking 41 percent in compensation. Drugs and local government — only slightly The “common-sense invest- St. Clair Shores other costs are 13 percent and malpractice premiums 3 percent. For Fata, those percentages are nearly reversed: $8.2 million of his compensation was for drug payments, while he received about $704,000 in fees and $1.1 million to cover overhead. Fata and the Florida doctor represent the two largest areas of spending — oncology and ophthalmology — but they’re outliers TALK ON THE WEB that lead to the conclusion that the numbers are indicative of possible overbilling or fraud rather than an aging population and From www.crainsdetroit.com other causes. Fraud exists, but at a relatively small level, if the 3 Wings jobs moving over from the Re: Detroit Blight Authority steps Reader responses to stories and percent of billings estimate for Medicare fraud is accurate. aside in demolition efforts blogs that appeared on Crain’s Joe, this venue will be providing The big question, though, is whether costs can be reduced website. Comments may be primarily minimum-wage jobs. A in other ways without compromising the health of those Why the city leaders would think edited for length and clarity. family cannot be supported on that that they can do the job better than type of job. Medicare is intended to protect. anyone else is mind-boggling and ar- city lots for the first three hours Carolyn Mazurkiewicz Medicare cuts are a significant part of the funding mecha- rogant. The city should be saying to and earn honest money for the city nism for Obamacare. Making that work is probably less about anyone who can contribute to bring and help local businesses at the It’s nice that two of the three how much is paid to individual doctors and more about how a plan and resources it will coordi- same time. companies building the new arena analyzing what makes effective care. nate its efforts with. Instead, the Maurice are Michigan companies. city says, take your plan and get 257669 north of Eight Mile. Always punitive versus proac- Steve F tive. Will they ever learn? How Re: Oakland, Macomb counties: Swaps deal reasonable for city much is on the books for unpaid So now what? Is there an alterna- parking tickets? Why not offer the Detroit water plan lacks details Detroit got one step closer Friday to an expeditious exit from tive plan for demolishing blighted option of obtaining parking permits The outer counties are doing bankruptcy when U.S. Bankruptcy Judge Steven Rhodes ap- properties, or was that just a nice assigned to individual cars? On a what they should have done years monthly, quarterly, annual basis? proved a settlement of interest-rate swaps debt tied to casino rev- thought to entertain for a few ago. The city’s water department months? I want to know why this Regular cash flow. Two hour max has been mismanaged for decades. enue. project got the ax. per occasion of parking. So the outer counties have paid for The approved deal allows the city to settle the debt for $85 kb212513 Yvette Jenkins that and now are being asked to million — far less than earlier proposals of $200 million and pay again to bring the whole thing $165 million Rhodes rejected. Re: $45 parking tickets coming Re: Three construction companies to up to code. Nope. Most taxpayers There is some question about whether the swaps would have complete confidence that the How about eliminate all parking build new Red Wings arena well-run counties will propose a survive a court battle if the city chose to sue, but Rhodes on meters and let people spend their What happens to the construc- new, solid and financially attrac- Friday agreed that $85 million was a reasonable amount to pay money buying stuff from local tion jobs after the arena is built? tive system. to avoid protracted litigation. We agree. businesses? Or offer $1 parking at Other than the high-paying Red William J

KEITH CRAIN: The mayor is making all the right moves I will be the first to tell you that I First the lighting, and it to someone else who can be digested and solved. marathon. am a great fan of our new mayor. I now blight. will do something about I have a feeling that we will see a I admire the approach and think worked with Mike Duggan at the There is nothing it. whole lot of this tactic over the it will have great results in De- Detroit Medical Center and worse than blight to I guess I would only next few years as we start to im- troit. watched him do a great job turning ruin the image of a city. additionally encourage pact the neighborhoods all over Too often we have heard about around the hospitals. It didn’t al- The mayor is tackling him to give vacant land the city. grand plans that never get done. ways make people happy, but he the problem the same to neighbors next door All too often, we try to create Our mayor will announce pro- always got the job done. way he did when he was for a hundred bucks. grandiose schemes that somehow jects that will usually be greeted The thing I liked the best was the prosecutor. One Then they can get rid of never seem to pan out to anyone’s by universal comments of “why Duggan’s ability to bite off small small bite at a time, and the blight as well as fix satisfaction. Lots of fanfare, but lit- didn’t we do that before?” pieces to accomplish the hospital’s before you know it, you up the landscape. tle results. There is a heck of a lot of work goals. have a meal. It seems like a fairly The mayor is going to stay busy that has to be done. I see the same thing happening So if a property owner simple philosophy that taking on one task after another I have great optimism that we at the city, and I can only applaud doesn’t fix what’s wrong, the city the mayor is using. Small pieces, and getting them all done. Lots of will see progress slowly but surely. his efforts. will condemn the property and sell slowly attacking the problem so it small steps that will turn into a That’s a very good thing. 20140414-NEWS--0009-NAT-CCI-CD_-- 4/11/2014 11:56 AM Page 1

April 14, 2014 CRAIN’S DETROIT BUSINESS Page 9 OTHER VOICES: Be sure water department’s on right route

Most of us in Southeast Michi- break. For a quiring the repair of huge sink- should be required to look forward needs of the system and not mere- gan rely on a bus called the Detroit newer system, holes and associated service inter- rather than maintaining the status ly on the basis of the lowest price, Water and Sewerage Department this isn’t too ruptions. Or look at the wastewater quo — that is, merely providing which often means shortsighted for something: clean tap water, pu- bad. But for old treatment plant incinerating routine maintenance and reacting solutions. rified wastewater before it goes to infrastructure, sewage sludge in 50-year-old fur- to system failures. Practically Will this cost more? Certainly. the Detroit River and stormwater like much of naces rather than working toward speaking, this means dollars and But this old bus won’t last forever, conveyance. This is an old bus, in- DWSD, it means a 21st century solution. effort will need to be allocated to and neither will clean drinking creasingly needing maintenance the bus gets old- Still another example is the on- planning and budgeting for the fu- water, purified wastewater and and increasingly breaking down. er and older, going effort to separate stormwa- ture, especially in relation to the well-managed stormwater that Parts of this bus are more than 90 and repairs get ter from sewage so that large hidden (buried) and antiquated Southeast Michigan take for grant- years old. costlier and storms don’t swamp the waste- components of the system. ed. Thomas Doran There aren’t any new buses to be costlier. water plant and produce permit vi- This future planning and sys- Thomas Doran is an adjunct pro- purchased — not for most of South- Thus, the product — in this case, olations. For too many years, re- tem rehabilitation can be compet- fessor at Lawrence Technological east Michigan anyway, not for pure drinking water and purified sources have been allocated to itively evaluated, but on the basis University and a member of the Col- anything less than a fortune — so wastewater — deteriorates. For an merely operating a deteriorating of the ideas and approaches that lege of Fellows of The Engineering keeping this bus on the road is es- example, look at the severe disrup- system and to reacting to system contractors identify, on cost Society of Detroit. He has worked on sential. tion caused by old water mains rup- failures. economies associated with mea- water-related projects for more The newest DWSD proposal turing in Detroit this winter, re- If DWSD is privatized, bidders sures that address the future than 35 years. from Emergency Manager Kevyn Orr is to privatize the system, meaning private contractors would submit bids to manage and operate the system. Good for everyone, right? Detroit gets a big infusion of dollars, the three counties are off the hook and don’t need to worry about buying into a shaky system, and the public gets When you’re ready to get serious about your competitive bids for this big infrastructure system. Here’s the rub. Competitive bid- family’s ﬁnancial future, think Greenleaf. ding — a good thing in itself — fos- ters a “do only what is specified” At a certain level of wealth, a family’s wants, needs and desires invariably change. The merits of a family foundation approach, all too often meaning that things are fixed when they become clearer; philanthropy, and the values it imparts to younger generations, takes on greater meaning; and the long-term balance between wealth and harmony becomes ever more important. Issues relevant to generational wealth are best served by an advisor with long-term stability, unimpeachable integrity, proven competence and a steady hand. In short, that’s the Family and Foundation Services Division of Greenleaf Trust.

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Page 10 CRAIN’S DETROIT BUSINESS April 14, 2014 IS YOUR Renaissance VC CURRENT PLATINUM STANDARD to commit $4M FRACTIONALFRACTIONAL AND MANAGEDMANAGED BBUSINESSUSINESS AAVIATIONVIATION PRPROGRAMS.OGRAMS. FABRICATOR SERVING ALL SOUTHEASTERN MICHIGAN. just not cutting it? to Plymouth QUALITY Venture III

FABRICATION BY TOM HENDERSON SERVICES CRAIN’S DETROIT BUSINESS The Renaissance Venture Capital Fund, the Ann Arbor-based fund SINCE 1989 created by Business Leaders for Michigan, is expected to announce Monday that it has invested $4 million in Plymouth Venture Partners III. )DEULFDWLRQ0DFKLQLQJ PVP III is the latest and largest fund of Ann Arbor-based Plymouth Management Co., the venture capital firm founded by the dean of SERVICES FABRICATES Michigan’s VCs, Ian Bund, who CORPORATEEAGLE.COM :HOGLQJ 0LJ7LJ 6WDLQOHVV6WHHO was honored last year with the life- time achievement award at the an- &1&/DVHU&XWWLQJ DQG$OXPLQXP nual Crain’s M&A Awards. PVP III 3UHVV%UHDN%HQGLQJ :HOGPHQWV has a target of $60 million. 6DQGEODVWLQJ *XDUGLQJ That investment follows a re- 3RZGHU&RDWLQJ 3ODWIRUPV cent commitment in PVP III of $15 EEXECUTIVEXECUTIVE CCALENDARALENDAR 0DFKLQH%DVHV million from the state’s $120 million Venture Michigan Fund II, man- Regional event dates, locations and contacts, all in one place. aged by Southfield-based Grosvenor Capital Management LP. crainsdetroit.com/executivecalendar A-1 FABRICATION INC. “I’m really pleased by how fast fundraising has gone,” said Mark Eastpointe, Michigan Horne, Ply- mouth Manage- 586-775-8392 | Fax 586-775-8596 ment’s CEO and [email protected] | www.A-1fabrication.com managing partner. “We kicked off fundraising in November, we had a first close of $31 million in January, and our second Horne close in March got us to $50 million. So I’m expect- Tired of going over budget? ing to wrap things up this spring.” PVP I was $23 million and PVP II $41 million. Save money on your “Liquidity has improved, but people really understand now next project by giving us a what we’re doing with our growth- stage investing,” Horne said. The new fund will continue to call when you’re designing. target what has been an under- served market, said Chris Rizik, president and fund manager at Re- naissance Venture Capital, which raised its second fund of $65 million in 2012. This is the 16th investment for Rizik’s fund, which is a fund of funds that invests in other VC firms doing business in Michigan. “Plymouth has a really interesting focus,” he said. “They don’t invest in typical startups. They invest in companies with $2 million to $5 million in revenue that used to be serviced by the banks or other lenders but who can’t get a loan anymore because the banks are backing away from smaller companies. “So they fill a nice post-2008- crash niche, one that won’t end soon. So they’re unlike any other venture fund in town because they Helping you find the most are growth-stage-oriented. For us, efficient and cost effective it is a nice contrast to the other in- vestments we’re making.” solution to building your next Rizik also has joined Plymouth’s project. advisory board. “Renaissance has developed a great model here in Michigan,” Horne said. “They’re a premier KERKSTRA PRECAST fund of funds, and Chris adds a www.kerkstra.com great depth of experience.” Tom Henderson: (313) 446-0337, [email protected]. Twitter: @tomhenderson2 20140414-NEWS--0011-NAT-CCI-CD_-- 4/11/2014 11:41 AM Page 1

April 14, 2014 CRAIN’S DETROIT BUSINESS Page 11

INTERN MANAGEMENT 101 How a company can avoid learning the hard way, Page 14

growing small businesses

EDITOR’S NOTEBOOK DETROIT’S FAMILY FIRMS share their advice for staying in business,

Amy Haimerl is entrepreneurship staying together and building a brand in Southeast Michigan editor and covers the city of Detroit. She can be reached at (313) LESSONS LEARNED 446-0416 or at Sweet Potato Sensations: [email protected] The next generation wants to change the recipe for success, Page 12 Amy Haimerl Public Lumber Co.: The Sarafa family (pictured at right) picked a niche and Family biz: We hasn’t tried to turn the 87-year-old company into all can relate Home Depot, Page 13 I’ve always been an excavator’s daughter. As a kid, my dad rescued a fleet of old, yellow Tonka tractors from the dump behind my grandparents’ place. We had no idea they were a sign of our future. It was the middle of the 1980s, and the oil shale bust on the Western Slope of Colorado was in full force. My dad, like most of the dads in the area, hadn’t seen work in far too long. “I got tired of it,” my dad told me recently. “So I swore that I’d never let another man take my job.” So he did the craziest thing anyone in my risk-adverse family could imagine: He scraped together enough money to buy two D4 Caterpillars and started Bear Excavating and Construction. Those two tractors look so tiny now compared to the heavy iron that eventually would sit in our construction yard. But I remember the feeling of pride the day it all started. LARRY PEPLIN Dad had no mentors, no guides, To all the familiar qualities that go into any successful business, Christa Sarafa (left) adds this: “Unconditional love. If that’s not in place, you’ll never just determination. How do you hire? succeed,” said the second-generation owner of Public Lumber Co., with mother Fadiya Sarafa and brother Craig. How do you fire? How do you survive when margins are thin and the BY AMY HAIMERL insurance man is always at your door? CRAIN’S DETROIT BUSINESS Learn to communicate How do you build something strong Family communication can be enough to pass on to your kids? t’s all in the family here in De- trying under the best of circum- The company did grow, though, and troit. started to thrive. My brother went to 1 1 stances. Add in payroll, ringing From Henry Ford to Mike work for Bear and, my dad thought, phones, new products, demanding his dream was coming true. He was Ilitch, the metro area is brim- clients and it can be downright over- bidding million-dollar projects, keeping ming with iconic family debt low and cash on hand high. Kin whelming. brands that have survived But then the Great Recession hit and Figure it out. If you don’t, you’ll fail. through the third, fourth, the construction industry tanked. Thanks “I don’t know how other families do to my mother’s hard-earned frugality, the even fifth generations. it, but in this family there is an element company survived year one, year two, Hamilton Carhartt started year three with almost no work. of unconditional love that is in place,” his workwear business in Those hard times took a toll on my said Christa Sarafa, 41, a second-genera- parents’ marriage, and when it failed, I1889; 125 years later, Carhartt tion owner of Public Lumber Co., a lumber the business went with it. In 2012, my Inc. is still family owned. Kirlin Lighting and millwork company that started on brother and I sold off Bear at the Co. operates on East Jefferson Avenue equipment auction. I watched every Detroit’s east side in 1927. “If that’s not in piece of my family’s legacy roll across in Detroit with its fourth-generation do place, you’ll never succeed. You have to the auction floor. Every piece of yellow leader at the helm. The John E. Green have that, so whether you fight over iron looking, from the nosebleed Co., a Highland Park mechanical con- generation. That number comes from a seats, like those tiny tractors my dad something big or small, you can put it tractor, started in 1909 and is now one of 1987 study that is certainly getting long once rescued from the dump. aside instantly when you have to.” I’m still the daughter of an the region’s largest family-owned busi- in the tooth, but that experts say is still To help structure communication, excavator. I couldn’t be more proud of nesses. An Eastern Market staple, Roma accurate. Bloomfield Hills-based wealth manage- my father, mother and brother and Café, opened in 1890 and now has the The feeling of an uphill battle to stay their legacy. Being their daughter and ment firm Gregory J. Schwartz & Co. Inc. sister shaped who I am and how I third generation calling the shots at the relevant and thrive is a daily challenge instituted informal weekly meetings on interact with the world. It’s a unique Italian restaurant. for CEOs hoping to pass on their lega- Wednesday mornings. At those gather- and prestigious club that all of us But for all the successes, there are cies. And with 40 percent of family-busi- family-business kids belong to, ings, all five brothers — and dad — can challenges. Long hours. Challenging ness owners expecting to retire by 2017, despite our knowing jokes about long air the daily-grind issues that build up, hours and no vacations. communication. Difficult transitions. according to a Mass Mutual survey, I salute family businesses. Whether Trust. Flagging interest. there’s a lot of planning happening. leaving the quarterly board meetings you’re struggling in the first generation As a result, it’s become an old adage Crain’s talked with seven family for more serious and productive discus- or planning for the fifth, you are shaping sions. our community and helping our economy that just 30 percent of family-owned businesses to find out their secrets to to thrive. businesses survive through the second longevity. See Family, Page 12 20140414-NEWS--0012,0013-NAT-CCI-CD_-- 4/11/2014 11:44 AM Page 1

Page 12 CRAIN’S DETROIT BUSINESS April 14, 2014 Second Stage Lesson from Sweet Potato Sensations: Let the biz change or 26 years, the Thomas fami- want to see that go away. So how ly has been serving up Sweet do I stray true to my authentic self FPotato Sensations: sweet pota- I have to think and put my spin on the business so to cookies, sweet potato pie, sweet “ I can have the same love and same potato cake, sweet potato every- about it as a new dedication that they have dis- thing. All of it made fresh and from played over 26 years?” scratch, each potato washed by business. We’re For Cassandra, her faith is help- hand. ing her with the transition, as it “It all starts from my love for going from a 26- has always helped her guide the sweet potatoes and my wife’s love year-old business to business. for me,” said Jeffery Thomas, 61. “My strong faith in God has also But now they are looking at the thinking about it as been an integral part of keeping the business with fresh eyes as their business afloat at times when things daughters, Espy and Jennifer, take a 4- to 5-year-old were not good,” she said. “There on more responsibility. The next were many opportunities that we generation wants to evolve the business. could have stopped. That’s part of business from just a baker and ” the reason we’re still here today.” into more of a café. Jeffery Thomas For Espy, that translates as love “I have to think about it as a and passion. “When you are a second-genera- new business,” said Thomas. “If you put love into it, you get LARRY PEPLIN “We’re going from a 26-year-old tion business, you have to figure love back,” she said. “We sell tradi- Daughters Espy (left) and Jennifer Thomas (right) are taking more responsibility out where you fit,” said Espy, 33. business to thinking about it as a in Sweet Potato Sensations from parents Jeffery and Cassandra Thomas. Espy tion and memories. So when peo- 4- to 5-year-old business.” and Jennifer Thomas want the bakery to mix it up a bit as a café. “My challenge is trying to figure ple come in, they are our support- But he is also thrilled by the out how to marry what I love to do ers. Our customers feel like they change and the energy his daugh- sweet potato pancakes and waffles ing out. They are also talking about with what my parents have creat- are part of our business.” ters are bringing. They introduced on Saturdays, which have been sell- adding grits and salmon croquettes. ed. It was a sacrifice, and I don’t — Amy Haimerl

Family: Companies on how they stay in biz ... and stay together ■ From Page 11 “With something as sensitive as neighborhood. Thomas’ mother, Now, however, they both run a statement and my grandfather recession, well … . A lot of compa- family relationships, candor is not Cassandra, started the bakery in business unit of Ideal Group, said, ‘You’re all right, kid.’ I’d nies struggled while we survived.” always there,” said Edward the family basement in 1987, spe- which encompasses 11 different proven myself.” Schwartz, 45, president. “We’ve cializing just in sweet potato cook- operating units and six different But the company also remained benefited as a family business be- ies at the time. But now her daugh- companies, including Ideal Con- conservative in its finances even Cherish your cause candor has always been ters, Espy and Jennifer, are struction LLC and Ideal Shield LLC. as Simmons expanded into three 4 there. Both my father and my getting more involved and wanti- “I give people authority and let other malls. So when the economy customers mother were able to express their ng to evolve the business from a people run their companies,” said started turning, they were pre- “Treat your customers like they candid thoughts on the leadership bakery to a café. Frank Venegas Jr. pared and could let the high-price are gold,” said Shoemaker. “In the while also soliciting input.” That makes for a lot of cooks in That has been a transition for leases go and retrench in the De- end, that’s how your business sur- For Jim Hogan, the key is keep- the kitchen at times, so having Venegas, 62, who began passing troit store. vives.” ing family life and business life clear roles helps prevent animosi- stock and ownership to his chil- “We saw what was going on in Four recessions have taught separate. “Easier said than done,” ty or anxiety from brewing. dren this year. He started the com- the economy and knew we could him that lesson. Boom times are he shared with a knowing laugh. Having specific duties is also pany in 1979 after winning a Cadil- still do very nicely in Detroit,” he easy to build strong customer rela- But that’s what has kept his mar- helping Kolene Corp. navigate the lac in a Home Builders Association said. “We have always been very tions, but when the bear starts riage intact and him at the head of transition from the third to fourth raffle. He sold it for $12,000 and conservative in our finances, and roaring, that’s when you really the J.W. Westcott Co., which his generations. The 75-year-old chem- used the proceeds to bankroll his that’s been great for us.” prove yourself. great-grandfather started in 1874 ical company started in a garage first company, Ideal Steel. He now Kolene, too, has kept a tight grip “In tough times, customers may on Detroit’s west side and now employs 300 people in southwest on its finances. The company has and is best known for its mail and not be buying as much as they did boasts Alcoa, Boeing and Cummins Detroit, and company revenues ex- grown and expanded from its early sundry delivery service to the pass- in the past, but if you maintain Diesel among its customers. ceed $200 million. days of selling tricolethylene (the ing freighters on the Detroit River. that relationship, when things get “My grandfather was a worka- “I still come to work every day, dry cleaning chemical) to design- “Family businesses can make better they’ll come back on board,” holic,” said Roger Shoemaker, the but I can see where my role has got ing and building the equipment and break family ties,” said Shoemaker said. “The key that has third-generation chairman, CEO to change,” he said. that companies like Caterpillar Inc. Hogan, 57. “Keep them as separate allowed us to survive is very little and president. “He lived and use in conjunction with Kolene’s as possible. You keep the everyday debt, cash on hand and maintain- breathed Kolene seven days a chemicals. family matters in one location and ing close relationships with our week. He was always working. “It has sort of evolved,” said keep your business matters in customers.” That trait is what allowed Kolene Take risks, but be Shoemaker, who started with the your business location so that they Customer relationships are the to be successful.” family business in 1968. “We don’t drive a wedge.” 3 backbone of Ideal Group’s longevi- Now, with more than 30 employ- conservative would see a cleaning requirement ty, too. Venegas’ first piece of ad- ees, everyone works very hard, but in a Cat or Cummins tractor, and Building a business that can vice to new business is: “Do what in their defined roles. Family we would actually develop a prod- Stay in your lane stand the test of generations re- the customer likes.” members — including two great- uct and process to clean that par- 2 “That’s your daddy’s quires taking some risks. You Like Kolene, Ideal built its busi- grandsons — can fill almost any ticular component. Then we’d sell have to be willing to expand and ness around identifying ways to lane. Call him.” role in the business because they them both.” solve new problems plaguing exit- That was just the reminder Espy each started in the chemical plant grow, to let sons and daughters try But while the company grew, ing clients. Thomas needed from her mother. and worked their ways up. In fact, new things. But be conservative in Shoemaker was also very careful “We just got really good at what The salesman was calling, wanting neither Shoemaker nor his broth- those risks. not to taken on too much debt and we did, and when the customer to know if they needed more er or two sons have held positions Michael Simmons opened an keep cash on hand. He’s been said, ‘Can you do this?’ we raised syrup, while customers were at the outside the company. outpost of his family’s jewelry through four major recessions our hands and said, ‘Yes,’ ” Vene- counter and questions were flying “My grandfather and my father business, Simmons & Clark Inc., in during his tenure, so he is always at her. A million things buzzing at Northland Mall in 1985. That was a gas said. worked very closely together,” preparing for a rainy day. Customers are what keep Sim- her, and her first instinct was to said Shoemaker, 66. “I worked big leap for his father and grandfa- He also didn’t follow his com- drop everything and track down ther, who had been operating out mons coming into work every closely with my dad. My sons work petitors’ path to the Detroit sub- morning. He joined the jewelry the syrup order. of their Broadway location in very closely with me. But we also urbs even when everyone thought business full time in 1984, the day But no, that part of Sweet Potato downtown Detroit since 1925. But have very different roles in the or- Kolene was crazy. after he graduated from the Universi- Sensations is her father’s responsi- they wanted Simmons to grow and ganization. That helps.” “Everything was paid for. ty of Michigan, but he’d been work- bility. She just needed a reminder. develop a business he could take Linzie and Jesse Venegas can They’re all paid for, all three ing in the store since he was 6. “We step on each other’s toes, and pride in, too. certainly relate. They’ve been in- plants,” he said. “To move a com- “I started, unfortunately, by that can be tough,” said Thomas, 33. “I always wanted to open my volved in their dad’s business, Ide- pany from one location to another throwing away the garbage,” he “We have to have our roles.” own store, but my grandfather did- al Group Inc., since they were kids. is horrifically expensive, and we said, laughing. “The worst part is, Identifying and sticking to de- n’t really want to be a part of it,” “We both had to start out at the are debt adverse. In hindsight, I’m I’m still throwing away the fined duties has been critical to the said Simmons, 51. “But he gave me bottom,” said Linzie, 34. “I stuffed glad we didn’t. Had we moved the garbage.” success of the bakery, which is lo- envelopes; Jesse was pushing a authority to do it. After my first business to, say, Novi and taken on cated in Detroit’s Brightmoor broom.” year, I gave him my profit-and-loss $56 million in debt, when the 2008 See Next Page 20140414-NEWS--0012,0013-NAT-CCI-CD_-- 4/11/2014 11:44 AM Page 2

April 14, 2014 CRAIN’S DETROIT BUSINESS Page 13 Second Stage

From Previous Page

But he knows it’s all worth it when he helps third- and fourth-gen- Lesson from Public LumberLumber: Find, keep your niche eration customers, people who remember when his grandfather gave away cigars. The shop has sales in Christa Sarafa sends her cus- When Sarafa’s father and uncle 41. “When you run a hardware der my belt that made me the per- excess of a million dollars, but re- tomers to Home Depot on occasion, bought the store in 1976, it was a store in a blighted area, it’s very fect person to step in and reorga- peat customers are the success met- even though her family owns one traditional hardware store. You easy to steal things.” nize,” she said. ric that Simmons measures. of the few remaining lumberyards could buy hammers, screws, two- They also realized that they “There are days when I’m “I just fell in love with the busi- in the city of Detroit. That’s be- by-fours and more. Sarafa would would have to specialize to com- sweeping the showroom. All this ness, the idea that you’re taking cause she knows Public Lumber come in on Saturdays, when her pete with the big-box stores. They education, and I’m sweeping saw- part in somebody else’s life,” he Co.’s niche. father would bring doughnuts for added in millwork and started dust,” she said with a laugh. said. “We have a great tradition The 87-year-old company does- the staff, and sit at an old adding phasing out the construction- Now she, her mother and broth- and following.” n’t focus on the construction- machine and add up the books. grade lumber in favor of the higher are leading the company into grade material that you can get As the neighborhood around er-grade materials. the second generation of leader- cheap at any big-box store. It Seven Mile Road and Chrysler Sarafa, meanwhile, had pur- ship. Sarafa is leading the final doesn’t sell screws. There are no Freeway became more blighted, sued her own career away from evolution from neighborhood Cultivate non-family hammers. Instead, Public Lumber however, the Sarafas knew the the family business, including hardware store to lumberyard specializes in millwork and high- business needed to evolve. earning a law degree. But when and millwork facility. 5 leadership end lumber, especially the white “We knew we had to make a her dad became very ill, she came “I am so happy we don’t sell oak and mahogany used in boat change when four guys carried in home. He passed away, but she nails anymore,” she said. Jim Hogan never intended to be building. an assembled king-sized bed to stayed with the family. “Where’s the money in that?” a part of the J.W. Westcott Co., It wasn’t always that way. match a screw to it,” said Sarafa, “I had all of this experience un- — Amy Haimerl which was a family business on his mother’s side. After graduation, he was playing hockey and studying to teach high school. He didn’t see himself down on the Trust your children the people in the neighborhood one to do things different than the generation gap. She and her docks, working like a devil during thought you’re going to retire what their boss told them,” he sister are facing the same strug- shipping season, with 50-60 deliv- 6 and let go when you’re 65, but if you save said. “But that’s part of maturing.” gle with her parents. They want eries a day, 24 hours a day. your money and do real good, you After all, he adds, “you know to pass on the business, but the “Shortly after high school, dad This was the big year for Frank can retire at 62,” he said. “I did all how your kids are. If your kids are letting-go is hard, especially had problems with one of the em- Venegas. He turned 62 and could that, but now that I’m 62, I’m good kids, you should trust them when there is a long transition ployees, and I was ripe for the start transferring stock and own- thinking I don’t know about all to operate the business. … We sell period. pickings,” said Hogan. “I couldn’t ership to his children without fac- that.” to 55 companies now, and I would- “Parents are always your par- say yes; I couldn’t say no. I just had ing hefty tax penalties. He’s been It’s a process, and he’s taking n’t have done that if it weren’t for ents,” Thomas said, smiling and to pack my lunch and go. … The beaming about that milestone, each step slowly. He still goes into the kids. shaking her head. next thing you know, you’ve al- telling everyone around town of work each day, but he’s rethinking “I am tired, and they are filled “You know who you raised. Let ready been there 40 years.” the achievement. his responsibilities. It helps that with piss and vinegar and want to me do it. If the business is chang- Right there next to him has been But it also means he has to start his brother, Loren is the president, do something else.” ing, I can fill that role. Trust me.” his right-hand man, Paul Jagenow, the process of letting go. That he is so there is still first generation in At Sweet Potato Sensations, Amy Haimerl: (313) 446-0416, who is starting his 41st season. less excited about. the lead. Espy Thomas understands that [email protected]. Twitter: The captain of the J.W. Westcott II, “When I was growing up, always “I cannot come in and tell every- conundrum from the other side of @haimerlad Sam Buchanan, is entering his 30th – and he’s only 45. Neither is family by blood, but both are family by business. “It’s not a 9-to-5 job for them,” Hogan said. “That’s a reason our success can be continued. The legacy. It’s the people you are sur- rounded by, the ones who are carrying the ball.” And it doesn’t have to be family. Our business is In fact, Hogan doesn’t see either of his children taking up a spot behind their great-great grandfather’s desk. One son is playing family business hockey in Europe, and while the other is employed by the company, he hasn’t shown interest in owner- Every day, we work to provide family-owned businesses proactive ship. “I don’t think this is going to be solutions that can help ensure their success. Our CPAs & consultants, in their future, so I have a lot of de- wealth managers and corporate investigators work collaboratively to cisions to make,” Hogan said. provide you more ideas, more service and more experience. Ed Schwartz credits non-family leaders with making Gregory J. Schwartz & Co. a stronger firm. “It Contact me today to learn how. has gone a long way toward improving the way our company is managed,” he said. “It’s also helped strengthen the relationship between myself and my brothers.” But the company goes a step further in bringing outside experience and perspective inside its walls: Family members are re- Sandy Gohlke quired to graduate from college , CPA, CGMA and then spend at least two years Principal working elsewhere before they can 248.458.7940 join the family business. “It establishes professional ma- [email protected] turity and establishes a professional culture,” Schwartz said. “We want anyone, whether their last name was Schwartz or not, to have real work experience.” There are currently two college graduates in the third generation, 20 locations in Michigan, Ohio, Florida and Indiana but he’s not certain they want to be involved. So having trusted lead- rehmann.com | 866.799.9580 ers already in place gives Schwartz confidence in the company’s future. 20140414-NEWS--0014,0015-NAT-CCI-CD_-- 4/11/2014 12:05 PM Page 1

Page 14 CRAIN’S DETROIT BUSINESS April 14, 2014 Second Stage Internship shouldn’t be a learning experience for company

BY GARY ANGLEBRANDT finals and employers are prepar- SPECIAL TO CRAIN’S DETROIT BUSINESS TIPS FOR INTERN PROGRAMS ing to take on students as summer interns right after the tests are Everybody at some Big companies tend to have sum- Ⅲ Pay the interns. The stickier intern compensation regulations come into play for unpaid internships, especially at for-profit organizations, so paying over. But employers that mer interns lined up early in the interns is a smart way to go. haven’t hired interns before point has had year, but as some small and medi- Students have to pay for gas and meals the same as other workers. “I’m should slow down, said um-sized employers seek talent to not shy about telling employers that,” said Shelley Lowe, executive director Amanda Dumond, director of a bad help with an uptick in business or of career services at Davenport University. She tells employers to plan to talent initiatives at Prima Civi- with administrative or marketing spend at least $1,200, which “over 15 weeks is not outrageous.” tas in East Lansing. Dumond experience tasks, a common error is a poorly Ⅲ In lieu of pay, an employer might consider working with the school to manages the nonprofit’s planned intern program. with an make the internship count as credit. Credit can act as a stand-in for pay, Michigan Internship Initiative, That was the lesson learned Lowe said, and has the added benefit of involving an instructor who which helps small businesses internship when Eaton Steel Bar Co. Inc. in Oak pressures students to make the most of their internships. But employers and nonprofits create effec- Park took on its first intern in 2007. should consult a lawyer or human resources because regulations are tive internship programs. program. You Having put little thought into what getting stricter. Setting up a formal structure, the intern would be doing upon ar- Ⅲ Prepare specific projects. Have managers look at what they’re doing or identifying which managers will start to ask them rival, the company didn’t get as items on their “wish list” and consider whether an intern could do any of be involved, getting input from much benefit from the intern as it those, said Cindy Brown, executive director of Hello West Michigan. An HR those managers and planning spe- questions ... and you might have, and the intern also was manager falling short of time to develop a personnel handbook? An intern cific projects will save a lot of underwhelmed with the work. could research templates and what information to put in them. headaches. The purpose of the pro- realize they didn’t “It failed because we didn’t real- Ⅲ Adjust expectations. An intern is not a temp, said Mike Crudele, senior gram should be clearly estab- ly know what to do with him,” said accountant at the nonprofit Southwest Solutions. Temps are expected to lished, Dumond said. Is it to fill a have (a formal Steve Cramer, a purchasing agent have experience; interns aren’t and probably don’t. Start with the job soft spot in day-to-day work? To fill at Eaton who helped set up the in- description, matching the work with the interns’ level of experience. “Don’t the talent pipeline? intership plan) in tern program. “We left him there ask a beginning or second-year accounting student to come in and do “Everybody at some point has and let him get bored.” audits,” Crudele said. But it’s also good to hint that bigger projects could had a bad experience with an in- place. A switch to a new Oracle sales be in the cards if things progress rapidly. ternship program. You start to ask system prompted Eaton to try an Ⅲ Don’t forget older interns. Interns don’t have to be 22. They don’t even them questions and drill down, and Amanda Dumond, Prima Civitas intern. The company figured a stu- have to be enrolled, said Amanda Dumond, director of talent initiatives at you realize they didn’t have that dent might be more up to speed on Prima Civitas. “When we say the word ‘intern,’ it doesn’t necessarily mean structure in place,” Dumond said. ceived help through the initiative, the latest systems and could help ‘enrolled in an academic institution,’ ” she said. “It can be someone open The Michigan Internship Initia- usually through training sessions to learning in a new environment.” the transition through a paid in- tive launched in 2010, expanding held at colleges, high schools and ternship. — Gary Anglebrandt from an existing initiative begun workforce development agencies. And he did, but he was eager to by Cindy Brown, executive director Brown said the launch of an in- do more than administrative view, when it was too late to do have a need in that realm so it’s at Hello West Michigan, a talent at- ternship program starts with a tasks. He wanted to learn deeper anything about it. beneficial for the intern and also traction organization for the state’s clear job description and work plan. parts of the business to get the big- “We learned the lesson that we for the company,” Cramer said. west side. Prima Civitas carried “Set up expectations at the be- ger picture of what it does. Eaton need to find out what the interns This is the time of year when the effort to the rest of the state. ginning,” Brown said. learned this during the exit inter- coming in want to do and see if we college students are preparing for About 2,200 employers have re- The Michigan Internship Initia- tive’s main resource is its tool kit, which includes things like confidentiality agreements and steps for forming a program. It also con- nects experienced employers with ones just beginning their intern programs. Employers can call the initiative’s two point people, Du- mond and Brown, with questions. The services are free, thanks to funding from Charles Stewart Mott Foundation, Michigan State University and the Michigan Economic Develop- ment Corp., except when an employer asks for a program to be built from scratch. Then a fee is arranged. “It could be as simple as they can’t get the IT department on board because (IT managers) don’t want to give the intern access to the shared drive,” Dumond said of the types of questions employers have. “We let the department know that interns can sign confidentiality agreements just like employees. A lot of times they call because a little thing like that is preventing them from having a program.” It’s the rare case when the intern simply isn’t up to the task. In those cases, employers might try moving the students to another project or department, Brown recommended. “Most of the time, it’s just poor planning,” Brown said of internships she’s seen go sour. Mutual benefit Ahead of its next go at hiring interns in 2010, Eaton got help from the initiative and Central Michigan University, a school Eaton targeted for its supply chain management program, and planned its internship program step by step. The company brings in four or five interns a year, usually for 16-

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April 14, 2014 CRAIN’S DETROIT BUSINESS Page 15 Second Stage

From Previous Page can cause harm beyond wasting sor directly about it. Upon doing RESOURCES FOR EMPLOYER INTERNSHIP PROGRAMS time. Students who have a bad ex- so, the student learned it was just week stints. About 10 of them have perience will share notes back on the supervisor’s habit and had turned that into permanent full- Ⅲ Michigan Internship Initiative. To download a tool kit, go to primacivitas.org/our-work/talent and follow the links. campus. nothing to do with him. time jobs at the company, alleviat- “They’re taking that word back Businesses also get hung up by ing some of the worry about replac- Ⅲ Pure Michigan Talent Connect (postings and searches) can be found at mitalent.org. to their college,” said Brian Partie, not knowing where to look for in- ing members of its aging workforce. associate director of career ser- terns. Employee referral programs Because of his limited scope of ac- Ⅲ The Michigan Economic Development Corp.’s Shifting Gears program for workers changing careers: mitalent.org/misg-stakeholders vices at Oakland University and pres- can be effective, as long as the in- tivity, the first intern at Eaton had ident of the Michigan Career Educa- tern program structure is well orga- struggled to understand the compa- Ⅲ The Michigan Career Educator & Employer Alliance annual conference, June 18-20 in Ann Arbor. Employers can call Brian Partie, current alliance tor and Employer Alliance, which has nized beforehand, Dumond said. ny’s niche. That was changed for 500 members — half employers But approaching universities, some later interns. president, at his Oakland University office, (248) 370-3250, or go to mceea.org. and half career services people of which have dozens of career ser- “That’s the very first thing they Ⅲ from colleges and universities. vices staff members who have “in- learn when they come in — what The U.S. Department of Labor’s Fact Sheet No. 71 lays out the criteria for unpaid internships and is found at dol.gov. A 2013 National Association of Col- tern” in their title, can be daunting. we do and why we do it and where leges and Employers survey showed Eaton got around this by cold- we exist in the marketplace, our conversion rates of 48 percent for calling the head of CMU’s supply niche,” Cramer said. new ways to make money from a ed in the early line of steel-cutting saws the com- stages, end up interns becoming full-time em- chain management program. It also Eaton gives interns long-term ployees. That’s significant when now works with Eastern Michigan projects alongside day-to-day tasks pany had purchased to satisfy a key resenting the in- customer. The student, armed with terns. considering the cost of recruiting University and Oakland University. and are assigned a manager. and rolling the dice with new em- Going through career services They’re also put in rotational in- the latest knowledge on how to go “We usually about such a study, came through. catch it within ployees, Dumond said, especially usually yields a bigger pool of can- ternships, where they get experi- since interns who become employ- didates and helps with equal oppor- ence on the commercial and pro- “We’ll benefit for many years on two weeks. We’ll that project,” Cramer said. work it out or ees tend to stick around. tunity requirements, said Lowe at duction sides of the business to see “Interns are already exposed to Davenport. But in any event, em- what they like. Interns are paid $13-$15 an hour, pull the student depending on their commuting from the site,” the culture and company, they al- ployers shouldn’t assume their call Interns want large projects to ready know what they’re coming is unwelcome. “There’s not a facul- distance. Lowe said. sink their teeth into. “Some are Lowe into,” Dumond said. ty person on this earth that would- Another employer-side reason much better at it than some guys But, a lack of soft skills can n’t appreciate it,” Lowe said. for pulling an intern is if the em- who’ve been in the business 25 cause unpredictable problems to Another conundrum that comes Preparation, teamwork ployer indiscriminately dumps years,” Cramer said. arise, making the need for regular up is that, while a business could The best-run internship programs work on the student. The problem with Eaton’s first communication — with the stu- really use the help, it would take designate a supervisor for the intern Students aren’t exempt from get- attempt at hiring interns wasn’t dent and the school — all the more time from already thinly stretched and treat students like employees, ting themselves yanked, either, be that it dragged staff resources, but important. At Southwest Solutions, staff to create and manage the in- including formalities such as orien- that Eaton missed an opportunity it for general lack of ability or for a Detroit nonprofit, a Davenport tern program. The answer lies in to benefit more, he said. Subse- tation procedures, said Shelley specific “soft skills” problems, like accounting intern was ready to the question: Hire a business ad- quent interns have done things like Lowe, executive director of career making statements to customers pack it in last year because he kept ministration student, perhaps one manage accounts, place a $250,000 services at Davenport University. that aren’t within company policy. hearing his supervisor sighing with an interest in human re- order for steel and conduct market- Lack of preparation leads to “No employer should feel like and assumed the supervisor was sources, to manage the project. ing studies. Many are quick studies floundering, she said. A symptom they’re stuck with somebody,” unhappy with his work. “The first intern role can be to and can begin to relieve the staff of this is when staff members are Lowe said. But pulling interns for The student contacted his Dav- help develop the intern program,” workload within a few weeks. reluctant to give up tasks they any reason is very rare, she said. enport intern manager who told Dumond said. “And then get ready One student was asked to find hold dear. Workers, never consult- An unorganized intern program the student to talk to the supervi- to scale that intern program.” 20140414-NEWS--0016-NAT-CCI-CD_-- 4/10/2014 1:16 PM Page 1

Page 16 CRAIN’S DETROIT BUSINESS April 14, 2014 Second Stage For therapy biz, the first step in expansion: Research

The Recovery Project LLC was born Polly Swingle helped Charles Parkhill come out of adversity. Its founders met THE RECOVERY PROJECT LLC when one of them, Charles back from a spinal cord Location: Livonia Parkhill, injured his spinal cord injury. Today, they’re in Description: Physical and when a wave hit him just the business together as The occupational therapy and training Recovery Project and wrong way off a beach in Mexico provider for people with traumatic facing the challenge of in 1998, leaving him unable to brain and spinal cord injuries and how to expand into new move from the neck down. other neurological disorders markets. He made progress working with Founders and co-CEOs: Charles a Detroit Medical Center physical Parkhill and Polly Swingle therapist, Polly Swingle, and in Employees: 36 2003 the two formed the business Revenue: $2.6 million in 2013; to help others with traumatic $3.5 million estimated in 2014 brain and spinal cord injuries. In 2005, Parkhill took his first unassisted steps since the accident ing the elderly. — he now uses a wheelchair and The program, launched in June can walk short distances. By 2012, 2013, fueled a 5 percent boost in the company had reached $2.3 mil- revenue for the remainder of the lion in revenue. year. Parkhill projects revenue Problem: After some years in this year of $3.5 million as the pro- business, The Recovery Project gram fully gets rolling. faced more adversity, albeit of a Risks and considerations: In their more routine variety and one that research, the owners didn’t see all second-stage businesses face: many other clinics like theirs of- the need to enter new markets to fering elderly keep the enterprise growing. physical thera- Parkhill and Swingle saw their STAGE 2 py services, business missing out on a big mar- Parkhill said. “Other peo- COURTESY OF THE RECOVERY PROJECT ket in the elderly population. STRATEGIES “One obvious thing we recog- ple who fit our A look at mold weren’t nized is the elderly population in problem-solving the nation is growing,” Swingle doing it,” he by growing said. That said. “What programs can we of- companies fer? What kind of revenue can we made it risky get from this?” to devote staff But their business, targeted at time and materials to the program, neurological problems as it was, which so far has cost the business couldn’t just waltz into a new de- about $140,000 to build. mographic and begin treatment on Licensed physical therapists — score a new set of ailments. It lacked the the kind Medicare demands — connections or resources. The have seven-year degrees and cor- biggest hurdles would be develop- responding salary expectations, ing and then marketing a new pro- Swingle said. And Medicare reim- They Shoot. bursements in general lie in shift- gram. Solution: Parkhill and Swingle ing terrain, adding to the risk of an did market research and identified elderly care program. They Score! treatment areas of need among the On the other hand, doing noth- elderly — such as Parkinson’s dis- ing is rarely an attractive strategy ease and fall prevention — and be- for a growing business, either. Putting the puck in the net takes teamwork gan building physical therapy pro- “The risk is if we didn’t do something besides the aggressive neu- and execution. At Huron Capital, we like to grams around them. For marketing, they targeted the rological rehabilitation that we’d score the important goal: creating equity areas surrounding the company’s been doing,” Parkhill said. “We two locations — Livonia and Ma- need to do something else, or we’re value through business growth. Let’s talk comb Township — because their not going to grow.” research suggested that elderly pa- Expert opinion: When entering a about doing that together. Call us today! new market segment, businesses tients don’t or can’t drive far for shouldn’t under- physical therapy. estimate the The Recovery Project reached need for re- out to providers of elderly care, search to make and Swingle began speaking at se- sure that a need nior centers and events having to or desire for the We invest in PEOPLE. do with elderly care. product or ser- The business structured its pro- vice exists, said gram to meet Medicare reimburse- Mark Lee, presi- We build LEADERS. ment requirements and to fall dent of Lee Group within the allowed number of an- MI LLC, a mar- nual patient visits — 14. Lee keting consul- It also had to get staff up to tancy in Plymouth. Otherwise, he speed. The treatment regimens for said, money will be wasted. neurological patients involved “It’s typically more expensive to equipment and routines for re- get new customers than to retain training the brain to perform cer- existing ones,” Lee said. tain functions again. Treatment of To mitigate the risk, he said, problems that come with age re- businesses need to make sure that they do the research and that the Sector Focus Platform Criteria volve around strength, flexibility, balance and cardiovascular func- research plan is well thought out. Specialty Manufacturing Buy & Build Strategies tioning. In one case, Lee saw a soft drink Consumer Goods & Services Revenues: Up to $200M The Recovery Project hired two company’s newest product pulled Business Services EBITDA: $5M or more therapists and two support staff off shelves after six months. The Healthcare No Minimums for Add-ons workers for the new undertaking, problem wasn’t that the company and 14 of the company’s licensed forgot to do market research. It therapists were trained on the just did it on the wrong people. guidelines of elderly treatment. “It researched the existing audi- Two therapists — Swingle one of ence and did not get opinions from them — attended a three-weekend the target audience it wanted to at- | | Detroit Office: 313.962.5800 www.huroncapital.com Toronto Office: 416.234.0313 training program in Chicago to tract,” Lee said. gain special certifications in treat- — Gary Anglebrandt 20140414-NEWS--0017-NAT-CCI-CD_-- 4/10/2014 2:39 PM Page 1

April 14, 2014 CRAIN’S DETROIT BUSINESS Page 17

CRAIN'S LIST: LARGEST FAMILY-OWNED BUSINESSES Ranked by 2013 revenue

Company Year founded Percent of Address Revenue Percent First-generation Family members in management with relation to the business Rank Phone; website 2013/2012 change owner first-generation owner family-owned Type of business Kelly Services Inc. $5,413.1 -0.7% 1946 Terence Adderley, chairman, son 93% Outsourcing and consulting services as well as world-class 1. 999 W. Big Beaver Road, Troy 48084 $5,450.5 William Russell staffing on a temporary, temporary-to-hire, and direct-hire basis (248) 362-4444; www.kellyservices.com Kelly Ilitch companies 3,100.0 19.2 1959 Christopher Ilitch, president and CEO, Ilitch 100 Food, sports and entertainment industries. Companies include 2211 Woodward Ave., Detroit 48201 2,600.0 Michael and Holdings Inc., son Little Caesars Pizza, Olympia Entertainment, Detroit Red (313) 471-6600; www.ilitchcompanies.com Marian Ilitch Wings, Blue Line Foodservice Distribution, Champion Foods, 2. Olympia Development, Uptown Entertainment, and Little Caesar Pizza Kit Fundraising Program. Michael Ilitch owns the Detroit Tigers. Marian Ilitch owns MotorCity Casino-Hotel. Plastipak Holdings Inc. 2,295.3 -3.2 1967 William C. Young, president and CEO, son 58 Manufacturer of rigid plastic packaging containers and preforms 3. 41605 Ann Arbor Road, Plymouth 48170 2,371.7 William P. and for consumer products companies (734) 455-3600; www.plastipak.com Mary Young The Suburban Collection 1,599.3 16.7 1948 David Fischer, president and CEO, son; David 100 Automobile sales and service 4. 1795 Maplelawn Drive, Troy 48084 1,370.8 Richard Fischer Fischer Jr., vice president, grandson; Zachary (877) 471-7100; www.suburbancollection.com Fischer, director, grandson Sherwood Food Distributors LLC 1,539.9 1.1 1969 Howard Ishbia, executive vice president of sales 100 Wholesale food distributor 12499 Evergreen Road, Detroit 48228 1,523.4 Earl Ishbia and and marketing, son; Jason Ishbia, executive vice (313) 659-7300; www.sherwoodfoods.com Alex Karp president of finance and CFO, son; Joel Ishbia, 5. executive vice president of inventory management, son; Gary Karp, executive vice president of corporate affairs, son; David Ishbia, sales, son; Scott Ishbia, IT, son H.W. Kaufman Financial Group Inc./Burns 1,425.0 16.3 1969 Alan Jay Kaufman, chairman, president and CEO, 100 Insurance distribution, underwriting, brokerage, financing, 1,225.0 Herbert W. son claims administration, inspections, loss control, audits and real 6. & Wilcox Ltd. Kaufman estate 30833 Northwestern Highway, Farmington Hills 48334 (248) 932-9000; www.kaufmanfinancialgroup.com Walbridge Aldinger Co. 1,307.0 1.2 1916 John Rakolta Jr., chairman and CEO, son NA Construction company offering services in North America, 7. 777 Woodward Ave., Suite 300, Detroit 48226 1,291.1 John Rakolta South America and the Middle East. (313) 963-8000; www.walbridge.com Meridian Health Plan Inc. 1,164.7 19.2 1997 Jon Cotton, president, Meridian Health Plan of 100 Government programs health insurance 8. 777 Woodward Ave., Suite 600, Detroit 48226 977.1 David Cotton Michigan, son; Sean Cotton, general counsel and (313) 324-3700; www.mhplan.com director of human resources, son; Michael Cotton, president, Meridian Health Plan of Illinois, son Barton Malow Co. 1,145.5 13.9 1924 Ben Maibach III, chairman and CEO, son; Doug 75 General contracting, construction management, design/build, 9. 26500 American Drive, Southfield 48034 1,005.9 Ben Maibach Jr. Maibach, vice chairman, son; Ryan Maibach, engineer-procure-construct, integrated project delivery, self- (248) 436-5512; www.bartonmalow.com president, grandson perform services: civil, concrete, rigging and interiors Wolverine Packing Co. 1,060.0 -8.3 1937 Jim Bonahoom, president, son; Roger Bonahoom, 100 Wholesale meat packer and processor; wholesale meat, poultry 10. 2535 Rivard, Detroit 48207 1,156.0 Alfred Bonahoom vice president, son; Jay Bonahoom, vice president and seafood distributor (313) 259-7500; www.wolverinepacking.com Kenwal Steel Corp. 904.3 0.0 1947 Kenneth Eisenberg, chairman and CEO, son; 100 Steel service center 11. 8223 W. Warren Ave., Dearborn 48126 904.3 Sol Eisenberg Stephen Eisenberg, president, Burns Harbor, (313) 739-1000; www.kenwal.com grandson Barrick Enterprises Inc. 798.9 -1.4 1977 Trish Barrick, retail supervisor, daughter; Greg 100 Petroleum retailer and wholesaler 12. 4307 Delemere Court, Royal Oak 48073 809.9 Robert Barrick Barrick, general manager, nephew (248) 549-3737; www.barrickent.com The Diez Group 733.0 19.8 1973 April Diez, vice chair, daughter; Gerald Diez Jr., 100 Steel and aluminum sales, scallops/wave blanking, blanking 13. 8111 Tireman Ave., Dearborn 48126 612.0 Gerald Diez president, son; Sherry Diez, vice president, (exposed/unexposed), slitting, laser welding (313) 491-1200; www.thediezgroup.com daughter; Mark Diez, vice president, son Orleans International Inc. 631.0 -0.9 1937 Earl Tushman, president, grandson; Larry 100 Meat trader 30600 Northwestern Highway, Suite 300, Farmington 637.0 Max Tushman Tushman, vice president and secretary, grandson; 14. Hills 48334 Reed Tushman, director of operations, great (248) 855-5556; www.orleansintl.com grandson; Marc Tushman, director of logistics and operations, great grandson RKA Petroleum Cos. Inc. 608.6 -15.4 1954 Kay Albertie, managing shareholder and daughter; 100 Petroleum wholesaler, biodiesel, ethanol, E-85, jet A and jet A1 15. 28340 Wick Road, Romulus 48174 719.0 Hilmer Westphal Kari Elliott, CEO and granddaughter; Kyle Albertie, products, compressed natural gas and liquefied natural gas as (734) 946-2199; www.rkapetroleum.com Leemon president and grandson well as a hauler of crude oil Art Van Furniture Inc. 575.0 11.7 1959 Gary Van Elslander, president, son; David Van 100 Retail home furnishings 16. 6500 14 Mile Road, Warren 48092 515.0 Archie Van Elslander, senior director of merchandising, son (586) 939-0800; www.artvan.com Elslander PVS Chemicals Inc. 549.3 -3.0 1945 James B. Nicholson, president and CEO, son; 100 Manufacturer, marketer and distributor of industrial chemicals 10900 Harper Ave., Detroit 48213 566.0 Floyd Nicholson James M. Nicholson, vice president, grandson; 17. (313) 921-1200; www.pvschemicals.com David Nicholson, vice president, grandson; John Nicholson, vice president, grandson; Timothy Nicholson, vice president, grandson Lipari Foods LLC 540.0 7.6 1963 Thom Lipari, president and CEO, son; Lori Lipari 100 Wholesale deli, bakery, dairy, seafood, confections and nuts, 18. 26661 Bunert Road, Warren 48089 502.0 Vincent Lipari Adams, executive vice president, daughter specialty foods and packaging distribution (586) 447-3500; www.liparifoods.com ABC Appliance Inc. 395.0 0.0 1963 Martin Hartunian, president and CEO, son; John 100 Appliance, electronic, and bedding and furniture retailer 19. 1 W. Silverdome Industrial Park, Pontiac 48343 395.0 Gordon Hartunian Hartunian, vice president of information systems, (248) 335-4222; www.abcwarehouse.com son Letica Corp. 380.0 B 0.0 1968 Anton Letica, president, son NA Plastic packaging and paper cup manufacturer 20. 52585 Dequindre Road, Rochester 48307-2321 380.0 B Ilija Letica (248) 652-0557; www.letica.com General RV Center Inc. 355.0 17.2 1964 Robert Baidas, CEO and chairman, son; Loren 100 Recreational vehicle dealership 21. 48500 12 Mile Road, Wixom 48393 303.0 Abe Baidas Baidas, president and chairman, grandson; Wade (248) 349-0900; www.generalrv.com Stuff, vice president of operations, grandson-in-law Belle Tire Distributors Inc. 350.0 C 2.9 1922 Don Barnes Jr., chairman, son; Bob Barnes, owner, 100 Tire retailer, windshield replacement and repair, automotive 1000 Enterprise Drive, Allen Park 48101 340.0 Don Barnes Sr. son; Don Barnes III, vice president of store service and repair 22. (313) 271-9400; www.belletire.com operations, grandson; Kelly Wilson, training manager, granddaughter; Mike Barnes, manager in training Elder Automotive Group 343.6 -6.0 1967 Phillip Elder, president, son; Robert Elder, secretary 100 Automobile dealerships 23. 777 John R Road, Troy 48083 365.6 Irma Elder and treasurer, son (248) 585-4000; www.elderautogroup.com U.S. Manufacturing Corp. 334.0 16.4 1964 Brian Simon, president and CEO, son 100 Manufacturer of variable wall axle housings, hollow axle shafts, 24. 28201 Van Dyke Ave., Warren 48093 287.0 Joseph Simon Sr. transmission shafts and driveline components for the (586) 467-1600; www.usmfg.com transportation industry Commercial Contracting Group Inc. 285.0 -6.3 1946 William Pettibone, son 100 Building general contractor and process equipment installation, 25. 4260 N. Atlantic Blvd., Auburn Hills 48326 304.0 William Pettibone facilities management, including Design Build and construction (248) 209-0500; www.cccnetwork.com Sr. management services.

This list of family-owned businesses is an approximate compilation of the largest such businesses headquartered in Wayne, Oakland, Macomb, Washtenaw and Livingston counties. It is not a complete listing but the most comprehensive available. Crain's estimates are based on industry analyses and benchmarks, news reports and a wide range of other sources. Unless otherwise noted, information was provided by the companies. For some companies, the founders were later bought out by another family. Actual revenue figures may vary. NA = not available. B Plastics News estimate, North America injection molding. C Company estimate. LIST RESEARCHED BY BRIANNA REILLY 20140414-NEWS--0018-NAT-CCI-CD_-- 4/10/2014 2:43 PM Page 1

Page 18 CRAIN’S DETROIT BUSINESS April 14, 2014

CRAIN'S LIST: LARGEST MICHIGAN WOMAN-OWNED BUSINESSES Ranked by 2013 revenue

Company Revenue Revenue Michigan Michigan Percent Address ($000,000) ($000,000) Percent employees employees woman- Rank Phone; website Majority owner(s) 2013 2012 change Jan. 2014 Jan. 2013 owned Type of business Dakkota Integrated Systems LLC Andra Rush (Rush $726.0 $632.0 14.9% 906 753 55% Complete assemblies for original-equipment manufacturers 1. 1875 Holloway Drive, Holt 48842 Group LLC) (517) 694-6500; www.dakkotasystems.com president and CEO RKA Petroleum Cos. Inc. Kay Albertie 608.6 719.0 -15.4 75 89 100 Petroleum wholesaler, biodiesel, ethanol, E-85, jet A and jet A1 2. 28340 Wick Road, Romulus 48174 primary shareholder products, compressed natural gas and liquefied natural gas as well (734) 946-2199; www.rkapetroleum.com as a hauler of crude oil Detroit Manufacturing Systems LLC B Andra Rush (Rush 593.5 28.6 1,975.2 710 218 55 Provides full module assemblies; mechanical and robotic 3. 12701 Southfield Road, Building A, Detroit 48223 Group LLC) subassemblies; welding; plastic injection molding; and sequencing (313) 243-0700; http://dms-na.com president and CEO services to the automotive industry. Other services include program management;supply chain management; other MotorCity Casino Hotel Marian Ilitch 454.3 459.8 -1.2 1,948 1,973 100 Casino, hotel, dining, spa and theater 4. 2901 Grand River Ave., Detroit 48201 owner (866) 752-9622; www.motorcitycasino.com Elder Automotive Group Irma Elder 343.6 365.6 -6.0 248 268 100 Automobile dealerships 5. 777 John R Road, Troy 48083 CEO (248) 585-4000; www.elderautogroup.com Two Men and a Truck International Inc. Mary Ellen Sheets 310.4 261.2 18.9 NA 365 50 Franchised moving company; home moving and corporate 6. 3400 Belle Chase Way, Lansing 48911 founder relocation services, packing and unpacking services (800) 345-1070; www.twomenandatruck.com Strategic Staffing Solutions Inc. Cynthia Pasky 238.0 208.7 14.0 941 559 76 Provides consulting and staff augmentation services, vendor 7. 645 Griswold St., Suite 2900, Detroit 48226 president and CEO management programs, executive search services, call center (313) 596-6900; www.strategicstaff.com technology and a Detroit-based IT development center Buff Whelan Chevrolet Kerry Whelan-Thieleke 162.8 136.7 19.1 120 117 100 Automobile dealership 8. 40445 Van Dyke Ave., Sterling Heights 48313 president (586) 939-7300; www.buffwhelan.com Brazeway Inc. Hickman family/ 157.1 146.1 7.6 NA 48 65 Producer of aluminum frost-free evaporators for household 9. 2711 E. Maumee St., Adrian 49221-0749 Stephanie Boyse refrigerators and a leading supplier of HVAC and automotive- (517) 265-2121; www.brazeway.com president and CEO extruded aluminum tubing and tubular components Vesco Oil Corp. Marjory Epstein, Lillian 144.8 144.0 0.6 173 174 60 Distributor of automotive and industrial lubricants, petroleum and 10. 16055 W. 12 Mile Road, Southfield 48076 Epstein Stotland, Lena aftermarket products and chemicals (248) 557-1600; www.vesco-oil.com Epstein chairman, gm, gm Technical Training Inc. (TTi Global) Lori Blaker 118.5 104.0 13.9 NA NA 100 Staffing, outsourcing and training 11. 3903 W. Hamlin Road, Rochester Hills 48309 owner, president and (248) 853-5550; www.tti-global.com CEO Iconma LLC Claudine George 118.3 109.7 7.8 NA NA 100 Providing professional staffing services and project-based solutions 12. 850 Stephenson Highway, Suite 612, Troy 48083 managing member to a broad range of Fortune 1,000 organizations (888) 451-2519; www.iconma.com

This list of woman-owned businesses is an approximate compilation of the largest such businesses headquartered in Michigan. Percentage of the company that is woman owned may not be solely held by the leading shareholder. It is not a complete listing but the most comprehensive available. Crain's estimates are based on industry analyses and benchmarks, news reports and a wide range of other sources. Unless otherwise noted, information was provided by the companies. Actual revenue figures may vary. NA = not available. B Joint Venture between Faurecia North America and Rush Group, formed June 2012. ■ An expanded version of this list may be purchased at crainsdetroit.com/lists. LIST RESEARCHED BY BRIANNA REILLY

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April 14, 2014 CRAIN’S DETROIT BUSINESS Page 19

PUBLISHER’S NOTEBOOK

Contact Mary Kramer at mkramer @crain.com. CRAIN’S MICHIGAN BUSINESS Mary Kramer Compensation In sports tourism, creep worth diamonds – and soccer keeping eye on Fields It’s annual meeting season. Which fields – seen as a town’s means, in my case, that I am sending proxy forms back with rejections of new director slates and my handwritten best friend note: “WHERE are the WOMEN?” It’s also a time when we begin from fields seeing the lists of top-paid CEOs — the Crain’s Detroit Business list will run May 19. Compensation in Michigan — even at the big auto companies — generally seems tame compared with the eye-popping numbers you see for Wall Street types. But even after the economic meltdown, caused in part by many of those same Wall Street types, compensation is back up. Which could be one reason we’re seeing a steady drumbeat of populist themes, from raising the minimum wage to tax-the- rich campaigns. In too many companies, there’s a big disconnect between life at the top and what’s happening on the ground. In the 1970s, management guru Peter Drucker recommended that a CEO top out at about 20 times the compensation of the typical worker. In reality today, that factor is probably more than 300 times. Max De Pree, CEO of Herman Miller LARRY PEPLIN Inc. for much of the 1980s, was “Washington Township sees sports tourism as a vital part of growing our community,” township Clerk Kathy Bosheers says. The township plans to turn 200 listening. acres of rural field into soccer fields, volleyball courts, two pools and a community center. The company, founded in 1923 by De Pree’s father, had employee BY MATTHEW GRYCZAN American Hockey incentive and profit-sharing plans from CRAIN’S MICHIGAN BUSINESS League; Arend the beginning. When Max became “Don” Lubbers, the CEO, he heeded Drucker’s advice and tarting this month, battal- capped his own pay at 20 times the retired president of ions of kids age 8 and under average worker’s wages. Grand Valley State normally begin to swarm The Zeeland-based office furniture University; and Rich company is known for elegantly over baseball diamonds DeVos, who was simple design (think Eames and Aeron throughout Michigan for chairs) as well as a sense of social S honorary co-chair tournaments named Bunnyball and the responsibility. The pay caps seemed of the sports com- elegantly simple, too. WaCo Wolves Great Lakes Shoot-Out — plex committee. “When the difference between top as much a rite of spring for these peewee Washington and average pay is huge, you have an ballplayers as opening day is for Justin imbalance,” a Herman Miller Township is devel- Verlander and the Detroit Tigers. executive told a business reporter in oping a 200-acre par- 1990. “This company is a living This year’s long winter has post- cel at 30 Mile Road organism; it has got to be in balance.” poned some events, but it hasn’t damp- JON BROUWER east of M-53 that it Of course, capping pay could mean ened the drive of parents to travel dis- In the Grand Rapids area, the West Michigan Sports Commission is building a serious problems in recruiting top complex of 12 baseball fields that would be one of the state’s largest. hopes will satisfy tances, buy meals and visit other executive talent. Look at the haircuts the needs of its resi- General Motors Co. and Chrysler Group attractions when they attend one of the during these years but didn’t sink like dents, the village of Romeo, Bruce Town- executives took compared to peers more than 80 baseball tournaments in general vacation or corporate travel. while U.S. taxpayers held the stock. ship, Romeo Community Schools and a pri- Michigan this year, organized by the De Pree wrote several books about Up-and-coming sports such as vate enterprise called Total Soccer. leadership, including Leadership is an United States Specialty Sports Associa- lacrosse and girls volleyball are only fu- With an initial price tag of at least Art and Leadership Jazz. He took the tion for kids 18 and younger. eling an industry that has long catered to $20 million, the project will feature 20 “servant leadership” theme — that It’s that devotion baseball, softball, soccer and basketball. leaders also serve those they lead. outdoor soccer fields, a 270,000-square- How many CEOs do you know who feel COME HUNGRY to travel sports for In metro Grand Rapids, the push foot building to enclose two full-size foot- that connection? Food tourism: One youngsters that has from community-minded individuals ball/soccer fields, eight volleyball courts, The Dodd-Frank Wall Street Reform way to a traveler’s Washington Town- got the proverbial ball rolling to build a two pools and a community center. and Consumer Protection Act has a wallet is through ship near Romeo, ballpark with 12 fields that, when com- provision that will require companies the stomach, “Washington Township sees sports to report the ratio between top pay for Page 23 Grand Rapids and oth- pleted, will rank as one of state’s largest tourism as a vital part of growing our executives and the median salary of er communities look- baseball complexes. community,” said township Clerk Kathy company workers. The U.S. Securities ing for ways to capture tournament play Philanthropist and former U.S. Am- and Exchange Commission is Bosheers, who also serves on the parks supposedly putting rules together on and visitors’ dollars with improved, bassador to Italy Peter Secchia is credit- and recreation commission that serves that. larger sports complexes. Even in the ed with spearheading the effort to build Romeo and Bruce and Washington Maybe next year, that will be depths of the Great Recession, these par- the complex, joined by others so famil- townships. another data point on Crain’s list of ents found the cash to participate in iar to West Michigan: Dan DeVos, own- top-compensated CEOs. travel teams — sports tourism flatlined er of the Grand Rapids Griffins of the See Sports, Page 20 20140414-NEWS--0019,0020,0021,0022-NAT-CCI-CD_-- 4/10/2014 4:04 PM Page 2

Page 20 CRAIN’S DETROIT BUSINESS April 14, 2014 CRAIN’S MICHIGAN BUSINESS Sports: Dreams of fields ■ From Page 19 “We are a gateway community “Since that time at the national from the more heavily populated level, we’ve seen a lot more com- area to the south to a heavily rural munication between sports com- area,” Bosheers said. “We don’t missions, convention and visitors have a large industrial district, but bureaus, and park and rec depart- we have people daycationing here. ments on ways to schedule outside “If we can get people to come events that will benefit the commu- here for a visit, we can get them to nity — often enough to make a dif- live here also.” ference, but not so often that resi- Ice dancing arguably is the dents will become upset,” he said. Reliable, modernized grid poster child in Michigan now for During the past decade, Schu- the power of participation sports macher said, sports tourism Energy is essential to the way we live, work and play. to attract dollars from outside a stayed steady or grew, with an esti- community, spurred on when mated $8.3 billion in direct visitor Meryl Davis and Charlie White be- spending in the United States in ITC operates, builds and maintains the region’s came the first U.S. ice dancers to 2012, up more than 9 percent over electric transmission infrastructure. We’re a Michigan- win a gold medal in the recent the prior year. Winter Olympics in Sochi, Russia. What Michigan needs to do to at- based company working hard to improve electric More than half of all the ice danc- tract more sports tourism is up for ing teams that participated in the debate, but it seems clear there are reliability and increase electric transmission capacity Winter Olympics trained in the De- economic benefits to boosting the throughout the Midwest. troit area. The Davis-White team “heads and beds” statistics for ho- trained with two other Olympic ice tels, restaurants and other attrac- dancing teams at the Arctic Edge Ice tions in a community. Arena in Canton Township, while That’s certainly what metro nine other such teams trained at the Grand Rapids and Washington We’re ITC – your energy superhighway. Novi Ice Arena and three trained at the Township hope to achieve. Detroit Skating Club in Bloomfield Hills. A $7.8 million gamble This summer, Mike Guswiler Play ball! hopes to do little more than watch Michigan isn’t on a level playing the grass grow at the Art Van Sports field with warm-weather states Complex, about 10 miles north of when it comes to attracting “sports Grand Rapids. That, and maybe www.itctransco.com group consumers” year-round for take in a few of the baseball games outdoor events like youth baseball, scheduled to play after the August but the state can attract teams from launch of the 80-acre site, which throughout the Midwest and host eventually will become one of the national championships in sum- top five such Michigan complexes mer. in terms of number of fields for Tournament organizers such as events hosted by the USSSA. the USSSA and Game Day Baseball “We’ve been bringing potential look for larger complexes that can customers or tournament directors handle three days of competition up to the complex to tour it while it on one site and offer attractions has been under construction over other than just the sport. the past year,” said Guswiler, presi- The prediction 20 years ago that dent of the West Michigan Sports Annual Mackinac Edition ISSUE DATE: June 2 | AD CLOSE: May 15 “park and recreation departments Commission. The 501(c)3 organiza- could continue to be line items in tion owns the complex, paid for city and county budgets on the ex- through private donations. pense side that are liable to cuts, or “For our 2015 schedule — our first they could be part of the economic full operational year — we already development engines in their com- have 21 of maybe 27 playable week- Crain’s annual Mackinac Edition will feature two powerful sections: munities” has come to pass, said ends filled,” said Guswiler, who fig- Don Schumacher, executive direc- ures the season ranges roughly tor of the Cincinnati-based National from mid-April to mid-October. American Dreamers : Association of Sports Commissions, a The Detroit Regional Chamber trade organization. See Next Page Mackinac Policy Conference, May 27–30. Immigration Success Stories Read about the accomplishments of local immigrants who achieved business success, Bonus distribution and what it took to get there. on Thursday at the Governor’s speech

Page M13 The next president of Wayne State Business Education faces a rigorous learning curve, with priorities that include increasing enrollment and graduation rates, and Degree of Directory: New Business Educationn managing the culture clashes of academia difficulty

BY CHAD HALCOM | CRAIN’S DETROIT BUSINESS he 12th president of Wayne State University, expected to be named soon, faces a challenge over a decade in the making — re- versing several performance declines, including falling enroll- Programs in Southeast Michigan ment and a six-year graduation rate that recently tumbled below 30 percent. Fall enrollment numbers also have declined each year since 2009, the Michigan Legislature is growing weary of underperfor- T mance, and an often adversarial internal culture persists. Current President Allan Gilmour, who retires June 30, said he wishes he had done more R&D CHALLENGES with some of More transfer in tech transfer: LIST: Michigan Graduate Business those issues, but State pushes Wayne office to pull has accomplished more of its R&D a lot in his three weight, years at the post. Page M16 That includes set- A chemical ting the ground- reaction at lab: work for im- Researcher Greg proved Auner (right) graduation rates, goes from top Gilmour dog to the WAYNE improved student STATE STUDENT RETENTION retention and rounding up doghouse; Student retention and graduation rates for Wayne, GRADUATION State University RATES since the 2000-01 academic year. more than $212 million in fund- university says *Based on tracking an incoming class from six years earlier. For example, the 2001-02 graduation rate is the percentage of thos ing commitments toward a uni- it’s about Degree Programs who began as freshmen in fall 1996 who had graduated on or before Aug. 31, 2002. Retention rates are the year-over-year compari money, Page M17. students who return the next academic year. versity capital campaign. Diane Dunaskiss, a Republi- e students cation with the board on the issue. son of can member of the WSU board “We had a sense that the admis- of governors who was on the sion process and programs that 80% search committee, said contin- 77.7 Michigan public universIties, 2011-12 serve students were not very cus- uing improvement in retention 75.6 76.1 76.9 tomer-focused, people weren’t being 75.0 and graduation rates has been 71.7 77.1 helped or approached about what 70% 73.5 77.0 Retention 6-year a top priority in selecting the 69.2 1. they needed from the university to 70.6 69.7 UM-Ann Arbor 96% graduates new president. 68.9 1. UM-Ann Arbor 90% succeed, and as Allan came in he 2. MSU 91% “That’s been the key ques- Retention 2. MSU 77% validated that we were not incorrect 60% 3. Michigan Tech 83% tion for every candidate we’ve 3. Michigan Tech 65% about that,” she said. 4. Grand Valley 82% interviewed, and anyone who’s “There’s still room to improve. 5. 4. Grand Valley 63% involved in the search commit- UM-Dearborn 82% It’s not where it needs to be, but 5. Western Mich. 56% tee process knows that reten- 50% 6. Wayne State 77.0% there is progress. And, hopefully, 6. Central Mich. 54% tion is something we think this 7. Central Mich. 76% we can grow our student base with 7. Northern Mich. 51% group has the skills and the in- 6-year graduates 8. Eastern Mich. 76% students who are academically pre- tent to address,” she said. “Or 40% 8. UM-Dearborn 49% pared or attracting more people to 9. Western Mich. 74% we wouldn’t be interviewing 9. Ferris State 47% some of our graduate and profes- 34.5 33.7 35.9 10. Northern Mich. 73% them.” 31.7 33.6 10. Eastern Mich. 40% sional schools.” 11. Oakland U. 73% Debbie 30% 33.1 30.9 10. Oakland U. 40% 31.0 32.3 31.7 12. Ferris State 71% Dingell, the 12. Saginaw Valley 38% 28.1 13. Saginaw Valley 70% Democratic The seeds of the slump 26.4 13. UM-Flint 37% chairman of 20% 14. UM-Flint 70% The performance issues at WSU 2000- 2002- 14. Lake Superior 35% the board at 2004- 2006- 15. Lake Superior 70% have many roots, including policies 2001 2003 2008- 2010- 2005 2007 15. Wayne State 28.1% Wayne State, plus 2009 2011 that admitted underprepared stu- also said re- Academic year dents, a culture not focused enough tention and on students, a declining number of Source: WSU Office of Budget Planning & Analysis, and IPEDS (the Integrated Postsecondary Education Data System, at the Nationa graduation for Education Statistics) college-age students in the state and rates were funding issues. persistent is- Dingell l Center Gilmour also noted that six-year sues, but Gilmour made some graduation rates don’t tell the whole progress with them, via new story for universities like WSU that admissions standards that take have a large number of part-time effect this fall for first-time students. freshmen, and more communi-

KENNY CORBIN LIST: Largest Private Companies See Wayne, Page M14 in Southeast Michigan

For information, contact Marla Wise at [email protected] or (313) 446-6032. crainsdetroit.com 20140414-NEWS--0019,0020,0021,0022-NAT-CCI-CD_-- 4/10/2014 2:53 PM Page 3

April 14, 2014 CRAIN’S DETROIT BUSINESS Page 21 CRAIN’S MICHIGAN BUSINESS

From Previous Page as Kentucky,” Guswiler said. “And vary widely depending on the met- Guswiler makes no bones about we were specifically looking at ropolitan area, but the West Michi- the fact that a major emphasis of participatory sports that kids gan Sports Commission uses an his organization is to improve oc- would get involved in.” average of $463 per family as the cupancy at the roughly 7,000 rooms In those sports, families with rule of thumb. within driving distance of the players ages 14 and under look at Early on, visiting tournament di- sports complex. That improve- the quality of the tournament and rectors asked whether a satisfactory ment, in effect, would raise receipts caliber of competition, but they range of accommodations would be collected through the 15 percent also consider the event as a mini- available near the Art Van Sports lodging excise tax that will help vacation where “you’re not always Complex — there aren’t any hotels fund the complex’s operation and playing baseball or softball, so in nearby Rockford. Guswiler and maintenance. what else is there to do?” Guswiler others were relieved to discover Of the 15 said. percent, 6 per- Direct spending for the trip can See Sports, Page 22 centage points go to the state and 5 percentage points to Kent County. The remainder is a marketing as- sessment that Guswiler goes to Experi- ence Grand Rapids, a nonprofit that markets the metro area as a destination and partly funds the sports commission. INANCIAL OLUTIONS The Art Van Sports Complex, F S along U.S 131 in Plainfield Town- BUILT ON GENERATIONS OF TRUST ship, fills a gap in the West Michi- gan lineup of sports parks. It also helps balance the concentration of Insurance complexes in other metropolitan ar- • eas that attract groups of sports con- • Employee Benefits sumers. A survey of the locations for USS- • Retirement Planning SA events in Michigan found the largest to be the VerSluis/Dickinson Softball Complex in Kalamazoo, with 535 Griswold Street, Suite 1600 • Detroit, MI 48226 • www.lovascogroup.com • 313.394.1700 14 fields, followed by Homer Howard Park in Southgate and Victory Park in A Member Firm of M Financial Group. Registered Representative with M Securities: Canton Township, each with 12 Securities offered through M Holdings Securities, Inc., A Registered Broker/Dealer, Member FINRA/SIPC. fields, and the Redcoat Sports Com- LoVasco Consulting Group is independently owned and operated. plex in Midland, with 10 fields. Oth- er large complexes with eight fields each include Mt. Clemens Memorial Park in Mt. Clemens, Rotunda Fields in Dearborn and South Westnedge Park in Portage. Guswiler said supporters of the Grand Rapids area sports complex initially hoped a local government would fund the project and place it in its parks-and-rec inventory. But Legal Experience “unfortunately, the timing and the economic conditions just didn’t al- ® low for that,” he said. “So we kicked off the ‘Everyone Wins’ In Your Corner. campaign in 2010 and raised $6.8 million for the construction costs.” ■ 25 years’ experience providing legal counsel Warren-based Art Van Furniture to family and other private businesses Inc., the state’s largest furniture retailer, pushed the project over the ■ Real estate and economic development (with top by locking in 10-year naming a particular knack for packaging incentives and rights with a $1.8 million commitment to the campaign. credits to make the impossible deal possible) One unique feature to the com- In Your Corner. plex is the Nate Hurwitz Miracle ■ Field, which uses rubberized turf for wheelchairs and walkers so that children with physical and mental disabilities could play baseball. The field is named after Hurwitz, a ju- nior at Forest Hills Eastern High School who succumbed to Duchenne mus- cular dystrophy in 2012. Kent County sold the complex site, valued at more than $1.5 million, to the West Michigan Sports Commission for $400,000. The county also made a $1.2 million commitment several years ago to establish the sports commission as an entity. Otherwise, the county has been somewhat hands-off on the Art Van Sports Complex because its primary emphasis is the regional parks and trails system, said Roger Sabine, Kent County parks director. “In terms of travel baseball and softball, we anticipate drawing ■ Metro Detroit ■ Grand Rapids ■ Kalamazoo ■ Grand Haven ■ Lansing Contact Fred Schubkegel at fl [email protected] from Michigan, Illinois, Indiana, Ohio and maybe teams as far away 20140414-NEWS--0019,0020,0021,0022-NAT-CCI-CD_-- 4/10/2014 4:06 PM Page 4

Page 22 CRAIN’S DETROIT BUSINESS April 14, 2014 CRAIN’S MICHIGAN BUSINESS Sports: A new game plan for tourism ■ From Page 21 that visiting families will travel up Warren-based to 40 minutes from the venue, ac- Art Van cording to sports tourism studies. Furniture paid Within a 20-minute range of the $1.8 million to put its name on complex, visitors can reach the bulk the new 12-field of the approximately 7,000 rooms in sports complex Kent County. near Grand “Will developers see an opportu- Rapids for 10 DETROIT JUNE 09-12, 2014 nity here and develop something years. closer?” Guswiler said. “I think JON BROUWER it’s very feasible, and the city of Rockford is interested in having ject that would start with 20 out- having an indoor facility and us some lodging available.” door soccer fields if it receives the having a community center, we necessary variances from Wash- could have year-round activities in- ington Township, said Chris stead of activities just in the fall. Build with hopes they will come McInally, part owner in the Total “We also would have more It’s not baseball that Washing- Soccer project in Washington things to do than just be a specta- ton Township hopes will be the big Township and manager of the To- tor at a tournament. Parents that draw to its community but soccer, tal Soccer operation in Royal Oak. come to watch their older kids in a football, lacrosse and volleyball Total Soccer also has complexes in tournament may want to take played on a 200-acre site it bought Wixom, Fraser and Novi. their younger ones somewhere to in December. Work this year would include swim, and we could offer day pass- “What happens in this small cor- leveling the land and seeding the es to our community pool.” ner of Macomb County is that peo- site so that fields would be ready to Sports tourism for the facility ple come out here in the fall, and go for outdoor games in the spring may be fueled further by the fields weekends are packed with people next year. Construction on a for lacrosse and volleyball — two visiting several of the largest or- 270,000-square-foot building for the sports rapidly gaining in populari- chards on the east side of the indoor fields would commence in ty. state,” Bosheers said. “People may spring 2015 for an October opening. “I’m 41 now, and as a kid playing not realize that we are a destina- Bosheers said Washington Town- soccer, we had unpaid coaches and tion area, but we have some of the ship is in discussions with Romeo dads of players on the team who most beautiful golf courses on the Community Schools, the city of would coach,” said McInally, who east side of the state here.” Romeo, Bruce Township and corpo- played college soccer for Clemson Bosheers and others want to rations about what amenities the fi- University and professionally with capitalize on those leisure-time ac- nal complex may offer and how to the Detroit Neon indoor soccer REGISTER TODAY! tivities and attract sports groups use 80 acres that would remain va- team, which played at The Palace of with a complex that carries a first- cant under the existing plan. Auburn Hills. “Soccer now has really phase price tag of $12 million. “With our fingers crossed, we are evolved into a sport with full-time bigMevent.com | 800.733.4763 Total Soccer, a brand launched hoping that our community center paid positions for coaching. by professional soccer player, will be open in 2016,” she said. “We Lacrosse is the next sport that is coach and manager Brian Tinnion are hoping to construct a competi- ready to do the same thing.” in 1984, may begin work in the tive pool as well as a family pool, Matthew Gryczan: (616) 916-8158, next couple of weeks on an addi- meeting rooms and gyms with fit- [email protected]. Twitter: ness equipment. With Total Soccer @mattgryczan THE BIG M Conference features three days tional $8 million to $10 million pro- of presentations and networking activities designed to connect you to the people, technologies, and innovations that will increase competitiveness and profitability. Dow GE Steelcase Ford Dell Comau

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April 14, 2014 CRAIN’S DETROIT BUSINESS Page 23 CRAIN’S MICHIGAN BUSINESS State group sets the table to attract culinary tourists

BY AMY LANE from the 10 restaurants, markets, nary tourism in general gets better such as The Henry Ford can gain good. We’re trying to change that.” CRAIN’S DETROIT BUSINESS orchards and attractions currently in this area, we all will do well.” from culinary tourists, Eisenhuth In addition, about half a dozen listed on Travel Michigan’s web- Food is a major part of the story said. years ago, The Henry Ford started a For a growing number of people, site to possibly as many as 200 des- of The Henry Ford, from working “There’s a stigma that’s still out program to source food locally from traveling isn’t just about reaching a tinations within a couple of years, farms to events to restaurants such there from long ago that museums, vendors and family farms. The ef- destination — it’s about food and publicizing the variety of what vis- as the Eagle Tavern, which offers historical attractions don’t have fort has become a priority and pro- drink. itors might do in the area. 1850s-era food served by staff in pe- very good food,” he said. “Nobody motion throughout the institution’s Culinary tourists, as they’re “We need to promote each other riod clothing. ever thinks, I’m going to go to that known, seek local tastes and experi- better,” Eisenhuth said. “If culi- There’s much that historic sites museum because their food is See Food, Page 22 ences and are willing to travel long distances and spend more than other leisure travelers, according to the World Food Travel Association. And they’re a segment that Michigan wants to attract. “We know we’re getting a lot of new people that have never been to Michigan before. We have the chance, when those people come to this state, to impress them with what’s different,” said Linda Jones Jones, leader of the Michigan Culinary Tourism Alliance. “Our culinary culture is one of those things that can be part of their tourism experience; that can be a lasting, positive part of their trip here.” The alliance — an evolving volunteer organization started in 2009 by the Michigan Grape and Wine In- dustry Council, of which Jones is executive director —works to connect people and pieces of the state’s food tourism landscape, from culinary schools to farmers markets, grow- ers to restaurants and accommodations to attractions. SBA PREFERRED LENDER | TERM LOANS | REAL ESTATE LOANS | LINES OF CREDIT The alliance has two main goals: Promote Michigan as a culinary tourism destination and encourage restaurants to serve more locally made and grown food and bever- ages. The grass-roots organization received seed money from a U.S. De- partment of Agriculture grant to help $194,000,000 in pay for staff time and some activities such as the creation of 14 local and regional “foodie tours,” posted on the website of Travel Michigan, Commercial Loans which is collaborating with the alliance. The Tourism Alliance re- lies largely on networking and col- laboration and the members of two in 2013. of Michigan’s largest industries: agriculture and tourism. In Southeast Michigan, one ener- gizing force is Jesse Eisenhuth, The Your hometown Henry Ford’s director of food service and catering. As a re- advantage. gional point person for the alliance, Eisenhuth pulls together “anybody that has an Being local means we’re able to leverage approvals and decisions right from our interest in culi- Eisenhuth home ofﬁ ce here in Michigan. It means more answers backed by the knowledge nary tourism” in we've gained from being rooted here since 1917. This means a lot for the business Wayne, Oakland and Macomb customers we help daily. Trust us, that’s a big advantage for small business. counties — be it orchards, restaurants, venues, farms or others. www.thefsb.com/sba | 866-372-1275 “I want anybody that … wants to help promote the region and the great culinary things we have going on here to be involved,” said Eisen- huth, who hosted his second regional meeting April 7 at The Henry Ford. His immediate goal is to expand the region’s online foodie tour 20140414-NEWS--0023,0024-NAT-CCI-CD_-- 4/11/2014 11:40 AM Page 2

Page 24 CRAIN’S DETROIT BUSINESS April 14, 2014 CRAIN’S MICHIGAN BUSINESS Food: One way to a tourist’s wallet is through the stomach ■ From Page 21 food service and catering. More travelers increasingly seek an au- culinary tourism, McCole said. and communications at the Michi- nary tourist spends double that of than 60 percent of purchases last thentic and local experience over- The restaurant industry — in gan Restaurant Association, which a generic tourist on a trip overall year were through farmers, food all, said Dan McCole, a researcher which about one in four sales dol- has been working with the Michi- and triple on fine dining. producers or suppliers within a 200- and an assistant professor in the lars are already travel- and tourism- gan alliance from its inception. They also spend more than oth- mile radius of The Henry Ford or in department of community sustain- related — sees the potential. “There’s a lot of people that are com- er leisure travelers. A study for the state, Eisenhuth said. ability at Michigan State University. Michigan is a big tourism state, ing, and they need to eat,” she said. the Portland, Ore.-based World Local sourcing is one of the top Interest in elements such as with an influx of people that’s “real- And they spend. According to re- Food Travel Association found the 2014 menu trends cited by the Na- farmers markets, local food, brew- ly year-round,” said Adriane De Ce- search cited by the Ontario Culinary average culinary traveler spend- tional Restaurant Association, and eries and wineries all plays into uninck, vice president of marketing Tourism Alliance, the average culi- ing nearly $1,500 on trips, including transportation, lodging, entertainment, food and dining. That compares with about $1,200 spent by leisure travelers. The In Michigan, Jones said, top assets include wineries, the burgeon- ing craft beer and spirits industries, highly regarded chefs and dining venues, and offerings rang- GO TO ing from fresh fish — promoted in a statewide “Catch & Cook” program that joins charter boat operators, restaurants and others — to advisors for wild game and an assortment of LENDING fruits and vegetables that help Michigan businesses. make Michigan the second-most to growing businesses agriculturally diverse state for commodities after California. remains our top priority. The potential is good to build Hitachi Business Finance culinary tourism, Jones said. “I Hennessey Capital is now think we’ve just barely scratched the surface of this.” Offering a world of ÁH[LEOH financing The Michigan alliance plans to McDonald Hopkins PLC RSWLRQV for companies that want to grow. work with elected officials and state 39533 Woodward Avenue, Suite 318, Bloomﬁeld Hills, MI 48304 • 248.646.5070 agencies to find financial resources Stephen M. Gross, Detroit Managing Member 248.658.1100 ZZZ.+LWDFKL%XVLQHVV)LQDQFH.FRP “to aid in the development of a more formal strategy for culinary Chicago • Cleveland • Columbus • Detroit • Miami • West Palm Beach tourism in Michigan,” Jones said. A benefit of the alliance, she mcdonaldhopkins.com Carl J. Grassi, President said, is that it’s a conduit for sharing information so that “people doing interesting things with food in Detroit,” for example, can learn about what’s going on in regions such as Traverse City or Grand KEYNOTE ADDRESS: Rapids and vice versa. A goal this year is to continue to foster the formation of regional groups, Jones said. Such groups can identify assets and people interested in promoting culinary tourism and provide a network to feed information toward statewide efforts such as this year’s second annual, end-of-summer public relations campaign by the Michigan Department of Agriculture and Rural Development highlighting “the fla- vors of Pure Michigan.” Jones is encouraging regional groups to update the list of foodie tours visited by about 1,000 people a month on the state website. At the local level, foodie tours are being developed by convention and visitors bureaus, such as Tra- Mary Ann Hynes verse City Tourism’s Tasty Traverse Senior Counsel tour. TUESDAY, MAY 13 Dentons The self-guided tour, available as a print brochure and on the organi- 2-7:30 p.m. zation’s website, includes area food artisans and wine, spirits and cider The Westin Book Cadillac, EDUCATIONAL SESSIONS: producers, with each listing telling a small story about the location. Business Regulations Detroit Traverse City Tourism sought Employment product diversity and ease of visi- Intellectual Property (IP) tor access, among considerations for the brochure. And, said media International relations manager Mike Norton, Registʑr Woday Leadership “we wanted to make it places where Mergers and Acquisitions people were actually making some- crainsdetroit.com/events thing.” The brochures are among those or (313) 446-0300 GENERAL AND IN-HOUSE most requested at the visitor center, and staff members also take COUNSEL AWARDS them to travel and industry shows. Program and Dinner It’s something other communities could do easily, Norton said. “And it’s just a matter of recognizing, often, what’s right under your nose.” 20140414-NEWS--0025-NAT-CCI-CD_-- 4/11/2014 11:57 AM Page 1

April 14, 2014 CRAIN’S DETROIT BUSINESS Page 25

Monthly Italy WHERE MICHIGAN DOES BUSINESS

employees for 2013 Autoliv Inc. taly has the third-largest economy in the Crain’s World Watch Monthly report Products: Temporary staffing, search and Based: Auburn Hills eurozone, despite suffering from high showcases companies that are already lead- selection, and outsourcing and consulting Operations: Office in Orbassano Ipublic debt and structural impediments ers in growing global markets — and those Top executives: Natalia Shuman, senior Employees: 19 to economic growth. In 2013, its public debt that are expanding operations. vice president and general manager Top executive: Fulvio Podio, managing di- passed 133 percent of its GDP, which de- Each World Watch features a different (EMEA and APAC regions) and COO rector clined 1.8 percent to $2.068 trillion, while its country. If you know of a Michigan compa- (North Asia); Stefano Giorgetti, country Clients: Fiat SpA, Lancia Automobiles SpA, level of unemployment rose to 12.4 percent. ny that exports, manufactures abroad or general manager Alfa Romeo, Ferrari SpA, Maserati, Tofas Nearly 75 percent of the Italian economy is from the services sector, with has facilities abroad, email Jennette Smith, tourism being one of its largest indus- managing editor, at [email protected]. Meritor Inc. Brembo North tries. Engineering products, textiles and Based: Troy clothing, production machinery and mo- America Inc. COMING UP Operations: Manufacturing and technical tor vehicles are its largest exports. May: Spain/Portugal center in Cameri, near Milan, which is its Based: Plymouth Major trading partners include Ger- June: Israel head of European axle development Operations: Parent many, France, China and the United Employees: More than 500 company Brembo SpA States. has its headquarters, Products: Axles and gear sets Top executive: Joe Plomin, president, In- research and develop- Employees: 730 ment center and two ternational, Europe and Asia Pacific Products: Sealing and trim systems Clients: Industrial Vehicles Corp., Renault SA, plants in Stezzano, and Milan, Stezzano, Top executive: Fernando de Miguel, presi- Daf Trucks NV, Ford Otosan and Volvo Car Corp. other plants in Mapel- COURTESY OF BREMBO N.A. dent of Cooper Standard Europe Cameri lo, Curno, Turin and Brembo employs Clients: Astra Veicoli Industriali SpA, CNH In- Brescia. about 3,000 dustrial; Deere & Co., Fiat SpA, Guardian Auto- MSX International Inc. Employees: Around throughout Italy. motive- Europe SA; Industrial Vehicles Corp.; JC 3,000 Busalla Bologna Based: Detroit Bamford Excavators Ltd.; Magirus International Products: Car brakes, pistons, Marchesini Turin, Cirie, Operations: Headquarters in Pomezia near Gmbh; Maserati; Paccar Inc.; Pininfarina SpA; Florence wheels, Sabelt safety seats and harnesses Orbassano, Rome, office in Turin, and office and train- PSA Peugeot Citroën; Scania Group; Volkswa- Livorno Top executives: Alberto Bombassei, chair- Druento ing center in Milan gen Group; Volvo Car Corp. man of Brembo SpA; Matteo Tiraboschi, ex- ITALY Employees: Approximately 300 ecutive deputy chairman of Brembo SpA; Products: Automotive industry products Daniel Sandberg, president and CEO of Dow Chemical Co. Rome, Pomezia including providing parts and accessories Brembo North America Inc. sales programs, dealer standards and Based: Midland process improvements, training, technical Clients: BMW AG, Fiat-Chrysler, Daimler AG, Naples Operations: Head office in Milan, sales of- Melfi Ford Motor Co., General Motors Co., Honda support services, warranty products. fice for Dow AgroSciences in Bologna and Capri Motor Co., Harley-Davidson Motor Co., Mit- Battipaglia Top executives: Emiliano Nebbioso, man- other facilities in Correggio, Fombio, Moz- subishi Motors Corp., Tesla Motors, Volkswa- Brindisi aging director, MSX International Italy zanica, Mozzate, Parona and Pisticci gen Group Clients: Ford Motor Co., Jaguar Land Rover Ltd., . Employees: 720 General Motors Co., Renault-Nissan Alliance, Products: Polyurethane systems, ion ex- BMW AG, Mercedes Benz AG, PSA Peugeot Cit- change resins for water treatment, agricul- roen and Volkswagen Group, among others Chrysler Group LLC ture products, resin adhesives used in food Based: Auburn Hills packaging, and epoxy resins, among others RGIS LLC Operations: Fiat SpA has its headquarters Top executive: Giuliano Tomassi Marinan- in Turin, and 45 plants and 35 research and geli, president and managing director, Dow Based: Auburn Hills development centers throughout Italy. Italy contractors at GM Powertrain Operations: Offices in Milan, Rome and Employees: 62,500 More information: In 1960, Dow opened its Products: Opel vehicle models; diesel en- Bologna, and remote teams in Turin, Padua, Products: Designs, engineers, manufac- first sales office in Milan. gines and control systems that equip trucks Florence, Sardinia, tures, distributes and sells vehicles for for GM brands globally Sicily, Naples and mass market under the Fiat, Alfa Romeo, Federal-Mogul Corp. Top executives: Roberto Matteucci, manag- Bari Lancia, Abarth and Fiat Professional ing director of Opel Italy; Pierpaolo Anto- Employees: 20 brands and distributes Chrysler brands Based: Southfield nioli, managing director and global diesel full-time, 1,000 such as Jeep and Mopar. Comau, Teksid, Operations: Manufacturing locations in sector executive director at GM Powertrain part-time Magneti Marelli are part of Fiat, and Fiat Carpi, Chivasso, Cuorgne, Druento and Clients: 122 Opel dealers; GM brands Products: Physi- owns Ferrari and Maserati. Mondovi, and distribution center in Verona More information: General Motors operates cal inventory, fixed Top executives: John Elkann, chairman, Employees: Approximately 1,000 through the Opel brand and General Motors asset inventories, Fiat SpA; Sergio Marchionne, CEO, Fiat SpA Products: Ignition products, sealing prod- Powertrain in Italy. Chevrolet announced Electronic Shelf Label installation COURTESY OF RGIS LLC More information: Chrysler Group LLC is ucts, engine bearings, wipers and friction last year that it would cease selling new RGIS employs 20 full- for retailers 100 percent controlled by Fiat SpA following products cars in Europe by 2015, and much of Chevro- timers and 1,000 part- the acquisition of a minority interest in Top executive: Gian Maria Olivetti, vice let Italia operations are expected to stop Top executive: Gio- timers in Italy. Chrysler previously held by the VEBA president and chief technology officer, Fed- sales by the end of June. vanni Grimaldi, trust. The companies announced in Janu- eral-Mogul Powertrain, and president, Federal- country manager ary that the parent organization, Fiat Mogul Italy Clients: Carrefour SA, Ipercoop, Conad, Finiper Chrysler Automobiles NV, would be incorporat- Kelly Services Inc. SpA, Leroy Merlin, Inditex SA (Zara), Burberry, Arnoldo Mondadori Editore SpA, Sephora ed in the Netherlands. General Motors Co. Based: Troy Operations: Italian headquarters in Milan; Compuware Corp. Based: Detroit branches in Bassano del Grappa, Bologna, TI Automotive Inc. Operations: Opel National Sales Co. is locat- Cittadella, Ferrara, Florence, Genoa, Mi- Based: Auburn Hills Based: Detroit ed in Rome, and General Motors Powertrain- randola, Modena, Montebelluna, Parma, Pi- Operations: Fluid carrying systems plants Operations: Main office in Milan, and oth- Europe has an engineering and development acenza, Rome, Thiene, Turin, Treviso, in Brindisi, Busalla and Melfi, and HVAC er office in Rome center in Turin. Varese and Vicenza Employees: 25 plant in Cisliano Employees: 158 at Opel; around 560 plus Employees: 128 full-time, 1,600 temporary Products: IT software and services for ap- Employees: 460 plication performance management and Products: Brake pipes, HP diesel pipes, mainframe development and maintenance Meritor has a manufacturing and technical center near Milan. zinc-coated tubes, brake lines, clutch lines, Top executive: Emanuele Cagnola, sales di- power steering lines, and receiver driers rector and accumulators for air conditioning Clients: UBI Banca, Sec Servizi Top executives: Salvatore Aloisi, plant manager; Enrico Traversa, general manager; Maurizio Paesante, plant manager Cooper-Standard Automotive Inc. Clients: Fiat SpA, General Motors Co., Ford Based: Novi Motor Co., Nissan Motor Co., Lamborghini SpA Operations: Locations in Battipaglia and and BMW AG, among others. Cirie — Bridget Vis COURTESY MERITOR INC. 20140414-NEWS--0026-NAT-CCI-CD_-- 4/11/2014 11:11 AM Page 1

Page 26 CRAIN’S DETROIT BUSINESS April 14, 2014

BUSINESS DIARY ACQUISITIONS & MERGERS land in East Palatka, Fla., for the de- CONTRACTS velopment of a McDonald’s restaurant. XanEdu Publishing Inc., Ann Arbor, a Plex Systems Inc., Troy, a software The project is pre-leased under a long- publisher of customized course mate- supplier, added customers using the term ground lease and is expected to rials for higher education, and Plex Manufacturing Cloud, including be completed during the third quarter SharedBook Inc., New York City, Green Flash Brewing Co., San Diego; of 2014. Agree also closed on acquisi- announced a merger that includes Old Mill Kettle Corn, Chickamauga, tions with an aggregate purchase price SharedBook’s AcademicPub and Ga.; and Morley Candy Makers Inc., of approximately $9.5 million that in- noneducational operations, such as Clinton Township. Website: plex.com. clude an O’Reilly Auto Parts store and Blog2Print. The combined entity Family Dollar store, Lincoln Park; a Burroughs Inc., Plymouth, a provider plans to operate under the XanEdu Buffalo Wild Wings restaurant, Indi- of technology services, and Tidel Engi- brand. Websites: xanedu.com, anapolis; a Dollar General store, Irv- neering LP, Carrollton, Texas, a sub- sharedbook.com. ington, N.J.; and a Goodyear Tire & sidiary of Sentinel Technologies Inc. Agree Realty Corp., Farmington Hills, Rubber Co. outlet, Forest, Va. Website: and provider of cash management so- closed on the acquisition of a parcel of agreerealty.com. lutions and robbery deterrent products, reached an agreement by which Burroughs will provide technical phone support, installation and onsite maintenance to Tidel customers covered by warranty contracts. Web- sites: burroughs.com, www.tidel.com. THINKSuccess Tanner Friedman Strategic Communi- cations LLC, Farmington Hills, and Think Madonna Graduate School the Michigan Business Network, an online business news outlet, are pro- ducing and broadcasting the radio show “Communicating Business,” DISCOVER THE MADONNA DIFFERENCE! hosted by Matt Friedman, co-founder of Tanner Friedman. Web- Personal instruction in small classes sites: michiganbusinessnetwork.com, tannerfriedman.com. Certificate, master’s and doctorate programs Beaver Aerospace & Defense Inc., t Livonia, a subsidiary of Phillips Ser- Research opportunities Expert professors vice Industries and a manufacturer Convenient online, on-campus and hybrid classes and designer of custom ball screws and broad-range actuation products Outstanding preparation for a doctorate for the aerospace and defense industries, was selected to provide high-performance inertial separator actuators AREAS OF STUDY for the new Daher-Socata TBM 900 #VTJOFTTt$SJNJOBM+VTUJDFt&EVDBUJPOt)VNBOF4UVEJFTt)JTUPSZt)PTQJDF Aircraft. Website: beaver-online.com. -JCFSBM4UVEJFT-FBEFSTIJQt/VSTJOHt3FMJHJPVT4UVEJFTt1TZDIPMPHZt5&40- MOVES APPLY TODAY! Global Telecom Solutions, a May 1 deadline for some programs. telecommunications consulting firm, 734-432-5667 t [email protected] moved its headquarters from 22221 Greater Mack Ave., Suite A, St. Clair madonna.edu/grad /MadonnaUniversityGraduateSchool Shores, to 1501 Sixth St., Detroit. Telephone: (313) 371-9440. Website: www.gtsdirect.com. NEW PRODUCTS Altair Engineering Inc., Troy, released the HyperWorks 12.0 Student Edition, free software geared toward aspiring structural and mechanical engineers. Website: altair.com. BrassCraft Manufacturing Co., Novi, a Masco Corp. company and manufacturer of plumbing products, introduced its Zip-It tool to plumbing con- ContinuityTrusted for 75 years. y tractors for common clogged drain problems. Website: brasscraft.com. We’ll be here for generations. Johnson Controls Automotive Experi- ence, Plymouth, the electronics, interiors and seating unit of Johnson Con- trols Inc., Milwaukee, announced it Schechter Wealth is an has developed FreshPer4mance coat- ing, which repels dirt, liquid and stat- investment advisory and advance ic. Website: johnsoncontrols.com. NEW SERVICES life insurance design firm. RouteOne LLC, Farmington Hills, a Web-based credit application management system for dealers and finance One of a few firms nationally sources, announced that Friendly Fi- nance Corp., Baltimore, a subprime that has a multi-disciplined team lender, is available as a lender on the RouteOne credit application platform. Dealers who have a relationship with consisting of one or more Friendly Finance now can process credit applications electronically to JDs, CPAs, LLMs, CFAs, CLUs, Friendly Finance through RouteOne. Websites: routeone.com, friendly CAPs, MBAs, PFS and ChFCs financecorp.com. Virtual Interactive Agency, Farming- providing advice on a wide variety ton Hills, a marketing agency, launched a new website, viathink.net. of financial issues that wealthy families face. DIARY GUIDELINES Email news releases for Business Diary to cdbdepartments@ crain.com or mail to Departments, Crain’s Detroit Business, 1155 Gratiot Ave., Detroit, MI 48207- 2997. Use any Business Diary item as a model for your release, and look for the appropriate category. Without complete information, your BIRMINGHAM, MI | NEW YORK, NY item will not run. Photos are welcome, but we cannot guarantee 248.731.9500 | WWW.SCHECHTERWEALTH.COM they will be used. 20140414-NEWS--0027-NAT-CCI-CD_-- 4/11/2014 11:05 AM Page 1

April 14, 2014 CRAIN’S DETROIT BUSINESS Page 27

CALENDAR

WEDNESDAY provides a forum through which they president and CEO, HantzGroup Inc.; er. Other players and coaches are Doyle, consultant, Anne Doyle Strate- APRIL 16 can share practical know-how and in- and Glenda Price, co-chair, Blight Re- scheduled to attend. Presiding officer: gies for Leaders, and author of Power- spire leadership. With Valerie Brader, moval Task Force; moderated by Tom Christopher Ilitch, president and CEO, ing Up: How America’s Women Achiev- Crain’s M&A Awards. 5-9 p.m. Crain’s deputy legal counsel, executive office Walsh, business columnist, Detroit Ilitch Holdings Inc. MotorCity Casino ers Become Leaders. She completed Detroit Business; Association for Cor- of the governor, state of Michigan; Free Press. The featured leaders will Hotel, Detroit. $45 DEC members, $55 work for the U.S. State Department in porate Growth, Detroit chapter. Event Paula Sorrell, vice president of entre- discuss the latest updates and sustain- members’ guests, $75 nonmembers. Spain regarding women’s leadership. honors companies and executives in preneurship, innovation and venture ability effects of their respective pro- 11:30 a.m. speaker reception open only The Dearborn Inn, Dearborn. $50 mem- the categories of Best Small Deal of the capital, Michigan Economic Develop- jects. Westin Book Cadillac Detroit. to board, life and gold members. bers, $60 nonmembers, $35 full-time Year, Best Large Deal of the Year, Deal- ment Corp.; and Teresa Szymanski, $45 DEC members, $55 members’ Contact: Detroit Economic Club, (313) students. Contact: (866) 385-1784; email: maker of the Year – Adviser, Dealmak- COO, Lansing School District. Lansing guests, $75 nonmembers. 11:30 a.m. 963-8547; email: [email protected]; [email protected]; website: er of the Year – Buyer/Seller, and Life- Country Club, Lansing Charter Town- speaker reception open only to board, website: econclub.org. womcomdetroit.org. time Achievement. Select award ship. $35 Inforum members, $55 non- life and gold members. Contact: De- members. Contact: (877) 633-3500; web- troit Economic Club, (313) 963-8547; winners will share best practices and Matrix Awards Celebration. 5:30-9 p.m. Reinventing Michigan: Getting It Right. site: inforummichigan.org. email: [email protected]; website: inside stories from their top deals. May 15. The Association for Women in Getting It Done. 11 a.m.-1:30 p.m. May econclub.org. Troy Marriott, Troy. $75 ACG mem- Communications Detroit Chapter. 16. Sterling Heights Regional Chamber bers or nonmembers in groups of 10 or M-1 Light Rail, Blight Removal and Ur- Platinum-level sponsor: Crain’s Detroit of Commerce & Industry. With keynote more, $80 individual sales to nonmem- ban Farming — Moving Detroit For- 2014 Detroit Tigers Outlook. 11:30 a.m.- Business. AWC Detroit will honor speaker Gov. Rick Snyder. MacRay bers. Contact: Kacey Anderson, (313) Banquet Center, Harrison Township. ward. 11:30 a.m.-1:30 p.m. April 30. De- 1:35 p.m. May 7. Detroit Economic Club. three women or organizations that $35 chamber members, $50 nonmem- 446-0300; email: [email protected]; troit Economic Club. With Matt With David Dombrowski, president, make significant differences in peo- website: crainsdetroit.com/events. bers. Contact: Lori Cline, (586) 731-5400, Cullen, president and CEO, Rock Ven- CEO and general manager, Detroit ple’s lives through acommunications ext. 11; email: [email protected]; web- tures LLC and M-1 Rail; John Hantz, Tigers; and Brad Ausmus, Tigers manag- medium. With keynote speaker Anne site: suscc.com. THURSDAY APRIL 17 Government Contracting 101. 9 a.m.- noon. Schoolcraft College Business De- velopment Center. Learn what it takes to sell goods and services to the federal government and the state. Schoolcraft College VisTaTech Center, Livonia. $45. Contact: Carrie Vroman, (734) 462- 4438; email: [email protected]; website: schoolcraft.edu. HEALTHPLUS UPCOMING EVENTS Doing Business in Latin America. 8- 11:30 a.m. April 22. Michigan Hispanic HAS THE Chamber of Commerce, Cadena Group. With Jeff Jorge, executive partner, Global Development Partners Inc.; Kyle Anne Sasena, vice president and international product specialist, Level One Bank; and Noel Nevshehir, director, in- RIGHT PLAN ternational business services, Automa- tion Alley. Level One Bank headquarters, Farmington Hills. $25 MHCC members, $35 nonmembers. Contact: Nilda Thomas, (248) 792-2763, ext. 103; FOR YOUR email: [email protected]; website: mhcc.org.

Inner Circle Capital Region 2014. 11:30 a.m.-1:30 p.m. April 24. Inforum. Event celebrates women in the inner BUSINESS circle of the business community and Nannette Benman, HealthPlus Director of Sales and Account Management EIGHT MILE BLVD. ASSOCIATION HOSTS LEADERSHIP LUNCHEON Join the Eight Mile Boulevard Association 11 a.m.-2 p.m. April 25 at Cobo Center, Detroit, for a panel We are here to provide the right advice, the right options and the right service. discussion with Detroit Mayor Mike Duggan and county executives At HealthPlus, we know that the Affordable Care Act is changing the landscape of healthcare, and our Robert Ficano (Wayne), Mark Hackel (Macomb) and L. Brooks expert staff is available to help you ﬁnd a plan that meets your needs. Patterson (Oakland). Charlie Langton, legal analyst, WWJ 950, Nannette Benman, Director of Sales and Account Management: will moderate, and Lt. Gov. Brian Calley will deliver closing remarks. “ We have several high-deductible plans and Health Savings Account options available that meet the needs Topics to include Eight Mile Road of your employees and organization. And, if you want to make a bigger, more positive impact on both revitalization, Michigan State Fairgrounds redevelopment and the employee health and healthcare costs, ask us about our Worksite U Wellness Program.” proposed Regional Great Lakes Water Authority. This year’s event will recognize the “Faces of Eight Mile,” paying homage For more information on our new plan options, call your agent or HealthPlus today. to business owners, public officials and community leaders who embody 1-800-530-9071 the diversity and strength of the Eight Mile corridor community. Crain’s Detroit Business is among the event’s promotion partners. Event co-chairmen are Ferndale Mayor David Coulter, Farmington Mayor William Galvin and Hazel Park Mayor Jack Lloyd. Tickets are $60 in advance or $70 at the door; tables of 10 are available for $500. Young professionals are eligible for a discounted rate of $35 per ticket. The Right Plan for a Healthier You Register at eightmile.org/ leadership_luncheon. Online registration closes April 21. ©2014 HealthPlus of Michigan, Inc. For more information, call Executive Director Jordan Twardy at (248) 398- 3388, or email [email protected]. 20140414-NEWS--0028-NAT-CCI-CD_-- 4/11/2014 11:13 AM Page 1

Page 28 CRAIN’S DETROIT BUSINESS April 14, 2014

PEOPLE CONSULTING manager, Metro Consulting Associ- counting, consulting and taxation se- LAW ates LLC, Plymouth. nior manager, from manager; and Tim IN THE SPOTLIGHT Robert McLeod to senior director, Rossow to tax senior manager, Farm- Alderney Advisors LLC, Southfield, ington Hills branch, from manager. from senior manager, transaction ad- Nicole Haviaras to senior manager, visory services, Ernst & Young LLP, UHY LLP, Sterling Heights, from man- Detroit. ager. Also to senior manager from manager: Chris Lamb, Jenna Lamb, FINANCE Amy Perzanowski; Brandon Ernat and Bob Kendall to manager, from senior Ryan Thies to accountant. In the UHY LLP Farming- COO, Stout Risius ton Hills office, the following moved to Ross Inc., South- senior manager from manager: Car- field, from direc- olyn Johnson, Chad Kime and Loni Richmond Nepper tor of operations. Winkler. The following to manager Roush Cassia David Richmond to project manager, Seth Anderson from senior accountant: Kevin Burns, Thomas Petterle Greg McEvoy, Kim Pomaville and Tara engineering department, Spalding to assurance The Engineering Society of Detroit, DeDecker Associates Inc., Rochester senior manager, Treat. Chris Thomas to partner, Fontinalis Rehmann, Troy, Partners LLC, Detroit, from Southfield, has named Matt Roush Hills, from senior project manager, Douglas Shinkle to senior associate, its director of communications and from manager. Resource Capital Advisors LLC, founder/managing director, and Lau- McGill Associates PA, Asheville, N.C. public relations. He succeeds Della Also, David Nepper to project manag- Also, Mark Northville, from senior analyst, Duck- ra Petterle to partner from managing Cassia, who has been named to er, survey department, from project Thies De Mara to ac- er Worldwide LLC, Troy. director, remaining CFO. the newly created position of manager of communications at Detroit Public Television, Wixom. Roush, 57, had been technology editor for WWJ 950, where he wrote a daily enewsletter covering high tech from a Michigan perspective and contributed to on-air reports. Before that, he spent more than 10 years at Crain’s Detroit Business, covering banking, “ HOW CAN DTE ENERGY finance, retailing and high tech. Roush has participated in ESD activities for several years as a HELP MY BUSINESS SAVE?” volunteer, host, moderator and master of ceremonies at events. In 2013, the ESD awarded him a Each business is different, so DTE Energy offers an online Interactive Business tool which Distinguished Service Award for his work advancing public lets you get information tailored to your speciﬁc business environment. From grocery understanding of the engineering profession. stores to warehouses, you’ll ﬁnd tips, incentives, rebates and more that will help you Roush earned a bachelor’s degree reduce your energy use. We also provide a number of other online tools to help our in speech, communication and theater at Albion College. business customers use less energy and save more money. At the ESD, Cassia, 42, was director of marketing and public relations and managing editor of Technology Century magazine. She also chaired ESD’s Public Relations Committee and Social Media Task Force. DTE wants to help you save, so get started at She has a bachelor’s degree in journalism and political science dteenergy.com/interactivebusiness from Oakland University and an English teaching certificate from the University of Michigan.

MANUFACTURING

Ziparo Kay Peter Ziparo to vice president and general counsel, Visteon Corp., Van Bu- ren Township, from assistant general counsel. Kelly Kay to business development relationship manager, United CNC Ma- chining, Auburn Hills, from business development officer, PNC Bank, Troy. MARKETING Julie Edgar to manager of public relations, Your People LLC, Southfield, from freelance journal- ist, Oak Park. Scott Rourke to sales manager, Di- etz Trott Sports & Entertainment Management, Start saving today visit: Farmington Hills, Edgar from account ex- dteenergy.com/interactivebusiness ecutive, Detroit Tigers, Detroit. Mary Pat Geiger to director of sales, Specific Media LLC, Royal Oak, from sales director, Genesis Media LLC, Birmingham. 20140414-NEWS--0029-NAT-CCI-CD_-- 4/11/2014 6:05 PM Page 1

April 14, 2014 CRAIN’S DETROIT BUSINESS Page 29 Home again, mayor’s chief talent officer for city talks tactics

Bryan Barnhill started ing employment would people who are invested in their for interview and onboarding. breakthrough. Through a series of his political career as a elude them. communities, people like himself interactions, you’ll arrive at a pot “paper passer outer” for “It was a difficult time,” as a kid. Do you have any go-to questions of gold at the end of the rainbow. former Detroit City Council he said. “I spent all of my “I want to expose young talent to that you ask each candidate? President Charles Pugh. life doing the right thing careers in city government so they I do. They are really designed to Are you still hiring? Now he’s the man to im- so that I could avoid the can see it as a viable option,” he elicit responses that help me get to I’m not trying to fill cookie-cut- press in Mayor Mike Dug- position where I’m an said. “We’re developing an intern- know who a person is and how ter roles; I’m trying to identify tal- gan’s administration. adult without a job living ship program.” they think and what they value. I ented and compassionate people. The 27-year-old is Dug- at my parents’ house. Crain’s Entrepreneurship Edi- ask people from time to time, “Tell Then we back our way into how gan’s chief talent officer, “It was hard to stay motor Amy Haimerl talked to Barnhill me about a time when you’ve had they can add the most value. At the tasked with finding the tivated, so I learned to about his role as the chief talent of- to make an ethical decision on the same time, we’ve been in office right people to hire for discipline myself to see ficer and how he finds candidates. job.” It’s just about the conversa- since January, and we realize staff positions and ap- Q&A the positive in every situ- tion and the follow-up probing. there are other organizational point to boards and com- ation. That’s a discipline You were the mayor’s campaign You really get to know people. needs. For example, we identified missions. Bryan Barnhill, that I maintain every day manager. Now you are the chief talent a need to have a person spearhead- That’s no small task in a City of Detroit and that I am thankful for officer. What does the role encom- What type of candidates are you ing our international business de- town where everyone, having.” pass? seeking? velopment so we can attract more from small businesses to million- The tide turned, however, when Generally speaking, I’m respon- I’m looking for people who have global investment in the city. We dollar corporations, says they are Rochelle Riley wrote a piece in the sible for putting the right people in had experience restructuring or- found a guy who is Moroccan and struggling to find quality employ- Detroit Free Press about the state’s the right places to achieve our ob- ganizations or creating processes German, married a Nigerian wife ees. brain drain and Barnhill’s strug- jectives. I focus on recruiting very and systems or transforming orga- and has been a global consultant. The Detroit native — Barnhill gle. After the story dropped, Barn- talented people to occupy high-lev- nizations. I’m looking for people grew up on the city’s east side, hill’s phone wouldn’t stop ringing. el roles in the administration. how have had experience incorpo- Was he from Detroit? near the City Airport — brings a That one experience changed rating ethical values in their deci- He lives in Boston Edison. unique perspective to the search, everything. It brought Barnhill That’s a challenge for businesses sion-making. though. Despite a degree from Har- into contact with Pugh, and even- throughout the region. How did you Has anything surprised you? vard University and experience at a tually to the attention of Duggan, start? Do you have any tactics? The most surprising thing was New York City real estate firm, he who tapped him to run his may- I talked to the mayor about the Part of what I do is just meet realizing that I didn’t have to focus struggled to find work after he re- oral campaign. values of his organization and people and have conversations. It’s on selling people, that a lot of peo- turned home to Detroit. Now it is Barnhill’s job to be the what traits matter to him. Then I such a powerful thing to do. A lot ple are attracted to the mission of He and several friends from person who can change the tide of started to develop questions that of people just really haven’t real- improving Detroit. It’s remarkable high school had scattered to the others’ lives. would help extract those character ized how significant it is to have to see the amount of talent that winds, but they had decided they But he’s not just looking for ex- traits. That’s the tactical aspect of the right type of conversation and wants to be here. wanted to come home and put in perienced people with perfect ré- it. I got some great advice from the right type of interaction. Amy Haimerl: (313) 446-0416, the hard work of investing in their sumés. Barnhill is also committed some great people. Deloitte was It might be through a casual con- [email protected]. Twitter: city. They just never thought find- to finding and nurturing young very helpful in creating a process versation that you have a major @haimerld

Midtown, Corktown projects get state aid boost JOB FRONT

BY DUSTIN WALSH group plans to turn the dilapidated six apartment units above. POSITIONS AVAILABLE CRAIN’S DETROIT BUSINESS Thomas Beck house into three res- The project is expected to create idential units with more than 1,000 50 jobs and is supported by $200,000 THE SOUTHEASTERN MICHIGAN CHAPTER OF THE Three mixed-use projects in De- square feet of commercial retail in state grants. The Detroit Develop- NATIONAL ELECTRICAL CONTRACTORS ASSOCIATION (SMCNECA) troit will result in about $9.1 mil- space on the first floor. ment Fund and Detroit Investment lion in capital investment, includ- The project is expected to create Fund will finance approximately 66 is preparing for a transition in management and leadership over the next five years. ing state incentives totaling $1.123 seven jobs and is supported by a percent of the project. Toward that end, SMCNECA is seeking a candidate to work with the current Executive million, the Michigan Economic De- seven-year property tax abatement Woodward Willis LLC received a Vice President and eventually assume the role of Chapter leadership and administration. velopment Corp. announced from the city of Detroit and $55,000 $745,000 grant toward its con- The ideal candidate will have a demonstrated ability to acquire the skills, knowledge, and Wednesday. in grants from Midtown Detroit Inc. struction of a new $6.4 million tools required to successfully manage an electrical construction association in our market. The projects, receiving perfor- These include, but are certainly not limited to: O’Connor Development, under Dia- three-story mixed-use space at @ mance-based grants from the monds & Rifles LLC and Gold Cash Woodward and Willis in Midtown. Labor relations skills for the construction industry @ Michigan Strategic Fund, are expect- Gold LLC, plans to renovate the The commercial and retail space Membership service and development of a volunteer membership organization @ ed to create 157 jobs. three-story vacant building at 2100 project is expected to create 100 Taft Hartley trust fund administration Alex & Beck LLC will receive a Michigan Ave. The $1.9 million jobs and is supported by a 10-year @ Business development, and general administrative skills $178,000 grant for its $839,000 rede- project in Detroit’s Corktown area property tax abatement by the This position is also SMCNECA’S liaison to our national organization and other velopment of a building at 3980 will result in a first-floor restau- city of Detroit, estimated at $2.3 regional and local organizations. Candidates interested in applying or further exploring Second Ave. in Midtown. The rant called Gold Cash Gold with million. this unique career opportunity should send a resume to: SOUTHEASTERN MICHIGAN CHAPTER NECA PO BOX 4207 TROY, MI 48099 Altair to pay nearly $26M in trade secrets lawsuit BY CHAD HALCOM between 2005 and 2007 and took Adams/Solver. MARKET PLACE CRAIN’S DETROIT BUSINESS jobs at Altair. Five of those em- MSC also had made allegations ployee claims were dismissed pri- involving improvements Altair Troy-based Altair Engineering Inc. or to trial. made to another software product, MANUFACTURING SERVICES LEGAL SERVICES is on the hook for all but a sliver of At issue were 3-D model proto- MotionView, that competed with a $26.5 million judgment in a law- typing software products using its own Adams/Car software, but CKX Supplier Solutions STOCK BROKER suit alleging misappropriation of computer-aided design and simu- those claims were resolved prior • Specializing in Chrysler Supplier Issues • Production Tooling Veriﬁ cation MISCONDUCT? trade secrets and breach of confi- lating real-world conditions, at to the trial. • Engineering/Sales/Purchasing Services dentiality agreements, involving • ED&D/Prototype Tooling both companies. “At about the same time, Altair Cathy Kirk Has Your Stock Broker simulation software. Jurors found that Altair had undertook an aggressive program ckxllc.com Caused You Jurors took about two days in de- misappropriated some source code to induce Adams/Car customers to 586-612-9363 [email protected] Substantial Losses? liberation this week after a six- as well as concepts or processes abandon Adams/Car and adopt Al- week trial before U.S. District that get used to write code from tair MotionView,” the lawsuit Call Us For Personalized STOCK LOSS Judge Avern Cohn in Detroit to MSC, and that the employees had states. BROKER AT FAULT award damages to California-based also breached one or more of vari- Detroit-based Dykema Gossett Service: (313) 446-6068 MSC Software Corp. in a 2007 lawsuit. ous non-solicitation, confidentiali- PLLC represented MSC in the law- FAX: (313) 446-034 7 We’re Committed To Helping You Recover! Jurors awarded about $26.3 mil- ty or severance agreements with suit, with Anthony Rusciano of E-MAIL: cdbclassified @crain.com lion of that against Altair; about MSC. Bloomfield Hills-based Plunket & INTERNET: CONTACT: $170,000 more was awarded After the Altair hires began, ac- Cooney PC as co-counsel. Troy- www.crainsdetroit.com/section/classifieds against three former MSC employ- cording to the MSC lawsuit, Altair based IP law firm Young Basile Han- PETER RAGEAS ees who left the company in 2005 began putting resources into a lon & MacFarlane PC represented See ATTORNEY AT LAW and 2006. software product called Motion- Altair, and Lipson, Neilson, Cole, Crainsdetroit.com/Section/Classifieds 313-962-7777 MSC has alleged previously at Solve that competed directly with Seltzer & Garin PC defended the in- for more classified advertisements FREE CONSULTATION least eight employees had left MSC an MSC product called dividual employees. 20140414-NEWS--0030-NAT-CCI-CD_-- 4/11/2014 5:07 PM Page 1

Page 30 CRAIN’S DETROIT BUSINESS April 14, 2014 Passed-over med school grad learns life lesson, gets 2nd chance

BY JAY GREENE to apply for the thousand or so un- ly. We traded stories, and I told CRAIN’S DETROIT BUSINESS filled residency slots nationally dur- him I hadn’t matched. He wanted ing the so-called “Scramble.” On March 17, 2013, Nick Frame’s name to be involved,” he said. “He Nick Frame waited a whole year “There was one open ER spot. I helped me with my application for March 21, also known in the applied to that. Some surgery, pre- wasn’t called for a residency slot. and my whole life.” medical field as “Match Day.” liminary and family medicine Frame said Meza helped him un- At Detroit’s MGM Grand Hotel & slots,” he said. He joined more than 1,500 other derstand how to learn from his Casino, with about 269 other gradu- But Frame said he didn’t put a lot mistakes. ates of Wayne State School of Medi- of effort into it and didn’t match in newly graduated medical students “He said the setback I had (losing cine, Frame found out he had the Scramble either. He was disap- a residency slot) doesn’t really de- matched with Mercy Health St. pointed he didn’t find a position nationwide — and one other fine who I am or my goals as a per- Mary’s Hospital in Grand Rapids as a along with 98.5 percent of his class- Wayne State student — with son or physician,” Frame said. first-year medical resident in fami- mates at Wayne State who did “You have to roll with it and keep ly medicine. He starts work July 1. match with a residency program. college debt of more than $200,000 moving forward. His kind words “I was excited, ecstatic, really Frame said given all the talk the helped me get my confidence back.” happy,” said Frame, 26, who decid- past few years about the need for who weren’t selected by a teaching hospital. But one of the biggest pieces of ad- ed his senior year at Eisenhower more physicians to care for an addi- vice Meza gave Frame was to con- High School in Shelby Township tional 30 million insured patients sider a career in family medicine. that he wanted to become a doctor. under the Patient Protection and While medical students are situation with his father, Phil “I never had considered it be- “I did want emergency medicine, Affordable Care Act, it didn’t make awarded medical degrees or osteo- Frame, and a number of physician fore. I first wanted to become a sur- but I think family medicine is a bet- sense to prevent more than 1,000 pathic degrees, the M.D. or D.O. mentors. geon and later an emergency medi- ter fit for my personality as a well-educated U.S. trained doctors monikers, when they graduate, During the past year, with the cine physician,” he said. whole,” he said. “After residency, I each year from practicing medicine they can only be licensed by state help of James Meza, M.D., Margit By talking often with Meza, can still go out and do emergency in hospital residency programs. medical boards as professional Chadwell, M.D., Frame kept his Frame said he learned family med- medicine.” “I tried not to think about what physicians after completing a resi- hand on medicine by volunteering icine has a wide scope of practice. As happy as Frame is now, it else I would do for a career,” he said. dency program. at the Robert R. Frank Student Run “I can take care of children, was a different emotion he experi- With $250,000 in medical school To become a practicing physi- Free Clinic in Detroit. adults and the elderly as well. That enced a year ago on Match Day. debt, Frame planned on paying cian, more than 40,000 medical “The advice I received was stay appealed to me because I have al- On March 17, 2013, Frame’s name down his debt with his post-residen- school graduates each year com- clinically active this year and apply ways enjoyed working at the free wasn’t called for a residency slot. cy salary and by practicing in an un- pete for nearly 30,000 first and sec- next year. Another goal I decided to clinic,” Frame said. He joined more than 1,500 other derserved medical area with vari- ond-year residency slots. accomplish was to get back to what newly graduated medical students ous loan forgiveness programs from This year, 29,671 graduates drew me to medicine in the first nationwide — and one other Wayne hospitals or government programs. matched into one of 9,600 accredited place, namely the free clinic,” Good news State student — with college debt of residency programs, including Frame said. Frame’s efforts the past year paid more than $200,000 who weren’t se- 16,400 graduates of U.S. schools and At the clinic, Frame said he met off last month with his selection as lected by a teaching hospital. Physician supply priorities 9,287 graduates of international Chadwell, one of the physicians in a family medicine resident by St. “I was stunned, absolutely,” he Despite studies that show the schools, according to the National charge. She created the position of Mary’s, a 344-bed Catholic hospital said. “I can’t even remember the U.S. will face a shortage of about Residency Matching Program. post-graduate clinical director for owned by Livonia-based Trinity specifics of that. I had no idea what 130,000 doctors by 2025, the U.S. Over the past 18 years, graduate Frame. While a volunteer, Frame Health. to do.” has an artificial cap on the num- medical education funding, which said he worked 25 to 30 hours per “I applied to 80 to 90 emergency Frame said over the next several ber of doctors accepted into hospi- is primarily paid for by Medicare, week. medicine programs and about 40 weeks he went through the motions tal residency training programs. has been frozen. However, teaching “I worked closely with Dr. Chad- family medicine programs in the hospitals have increased the num- well, the executive board and a Midwest, mostly in Michigan, ber of funded residency slots by group of students,” he said. “I did a Ohio and Illinois,” said Frame, about 12 percent since 1996 to about little of everything. I saw patients, noting that he only applied to 30 110,000 residents from 98,000 by us- filled in the gaps where needed. I hospitals his first go-round. ing their own funding sources. ran chart reviews with students Frame said he feels very lucky to In recent years, talk has sur- where we looked at patient needs be selected by St. Mary’s, a hospital faced about legislation to increase one week before their visit so we he described as “excellent” and “of- residency slots by as many as could come up with a game plan fering me lots of opportunities.” 15,000. But how to pay for addition- when they came in.” Over the next two months before al doctors without raising the Frame said the past year he has he reports in middle June for ori- deficit or cutting other programs learned more about delivering pa- entation, Frame said he will start has stymied such efforts. tient care, and the intricacies looking for housing. about administering a clinic. “Of all the places I visited, Grand Dr. Frame makes a new plan He also met Meza, whom Frame Rapids was the best place,” the De- described as a person who not only troit-born Frame said. “The down- After the initial shock of not gave him invaluable medical ca- town is fantastic, and they have put matching, Frame’s dream of being a reer advice but also with general tons on money into the health care doctor slowly returned after some life issues. infrastructure of the city.” soul-searching and discussing his “We kind of bonded immediate- Phil Frame said being in Grand Rapids also will help the family finances as daughter Chelsea, who is a senior at Grand Valley State Uni- THE MILLER LAW FIRM versity in nearby Allendale Town- ship, will live with Nick until she Changing the Odds in our Clients’ Favor graduates in December. Nick also graduated from Grand Valley. “It saves us from having to sign a one-year lease on an apartment for her,” Phil Frame said. “She gets a roomie she likes and has a lot of experience living with, and Nick gets a roommate who actually likes cooking, doesn’t mind doing laundry and is fastidious about cleaning.” Frame said he is very much looking forward to his three years at St. Mary’s. “I know it will be harder than I The Miller Law Firm is Recognized expected, and I expect to be busy. as a Leader in Complex Business Litigation Right now I am focusing on my job, my program and my education. This is the foundation that will Q Automotive Supplier Counseling Q Commercial and business lawsuits carry me through for the rest of

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Referral fees honored on contingency fee cases the most of it.” Jay Greene: (313) 446-0325, 950 West University Drive, Suite 300 248-841-2200 millerlawpc.com [email protected]. Twitter: Rochester, Michigan 48307 @jaybgreene 20140414-NEWS--0031-NAT-CCI-CD_-- 4/11/2014 6:17 PM Page 1

April 14, 2014 CRAIN’S DETROIT BUSINESS Page 31 Arena: Construction joint venture helps share expertise, risk ■ From Page 3 struction is commonplace for such there’s risk involved. They burden Pontiac Silverdome in the mid-1970s, revenue over the past five years. The arena massive projects, said Ivanikiw. the bonding capacity of each firm,” and, more recently, the $24.5 mil- Hunt, which launched in 1944, be- “This is not something that’s un- he said. lion expansion of Spartan Stadium gan building sports facilities in the Olympia has disclosed very lit- usual,” he said. “No single organi- and the $226 million Michigan Stadi- early 1960s, and has done more than tle about what the arena will look zation is going to have enough of um expansion and upgrade. 100 venues since then, the firm said. like, or even its specific placement the right kind of talented people to The process It was hired last year to be con- Aside from Ford Field, its pro- within the site footprint. do a project of this size.” The selection process for the are- struction manager for the $300 mil- ject list includes the Barclays Cen- In May 2012, the Red Wings’ The joint venture will act as a na began in October 2013, Ivanikiw lion redevelopment of Daytona In- ter, Marlins Park, Citi Field, Lucas Oil ownership selected Dallas-based stand-alone company to organize said, and the field of bidders was re- ternational Speedway’s milelong Stadium, University of Phoenix Stadi- HKS Inc. as the arena architect, ac- construction of the arena, he said. duced to two. The names of the oth- grandstand. um, Miller Park, Heinz Field and cording to Sports Business Jour- Staffers from each company will er firms were not disclosed. Barton Malow has 1,500 employ- Amway Center. nal. The team and firm declined to work on different aspects of the ef- More meetings followed before ees and 13 offices. It also builds of- It has 700 employees in nine of- confirm or deny the report. HKS fort rather than each company Olympia chose Barton Malow- fices, schools, hospitals and facto- fices nationwide. Hunt also builds will design the venue with the handling specific portions. Hunt-White last week. ries. airports, casinos, offices, perform- Cambridge, Mass.-based architec- While Barton Malow’s résumé “Hunt is one of the premier White Construction, which had ing arts venues, hospitals, conven- tural firm NBBJ, the sports indus- includes many sports venues, it de- firms, as is Barton Malow, in han- $31.3 million in 2012 revenue, was tion centers and hotels. try trade magazine said. cided it needed help. dling projects like this,” Raij said. part of the construction manage- It is known that the long side of “We needed more sports experi- The next step is to finalize the ment team with Hunt and Detroit- the arena will be parallel to Wood- ence, so we reached out to Hunt,” contract with Olympia by April 30, based Turner Construction Co. that The financing ward, and its footprint is estimat- Ivanikiw said. “We suggested to then quickly move into planning, built Comerica Park. Property taxes collected by the ed to be about 2.5 blocks. them we form a team.” procurement and construction. White also was part of a joint DDA in a downtown district will A single 500-space garage is part White was added in late 2013 be- The construction group also will venture with St. Clair Shores- pay for $261.5 million, or 58 per- of the project, but no surface lots. cause of the firm’s familiarity with begin an effort to train and hire De- based JM Olson Corp. to handle cent of the arena’s construction The plan says the new arena will working in Detroit, he said. troit residents to build the arena. turning the old seven-story, cost, while team owners are to pro- have 1,200 premium seats and It’s vital to have a firm such as 750,000-square-foot J.L. Hudson Co. vide the remaining $188.4 million. 10,000 square feet of retail includ- White to help navigate local poli- warehouse into commercial office Olympia, which will operate the ing a Red Wings merchandise tics and understand the local prac- The companies space attached to Ford Field. arena under a 35-year concession store, restaurants and other retail. tices and rate of availability of em- All three firms have a rich histo- The company last year was agreement with the DDA, is the Olympia has committed to ployees, said Irwin Raij, a partner ry of sports venue work. hired as a subcontractor for the property development arm of the building or attracting another $200 and vice chairman of the sports in- Barton Malow had $1.1 billion in $137 million private-public M-1 Rail Ilitches’ $2 billion business em- million for development around dustry team in the Miami office of 2013 revenue, and most recently streetcar project along Woodward pire, which includes the Red the arena, such as retail, commer- the Foley & Lardner LLP law firm. was in the news as being named Avenue, which will include a stop Wings, Detroit Tigers and Little Cae- cial office space and housing. “That local tie really helps bring the managing partner of a joint near the arena. sars. Joe Louis will be razed and the it all together. You’ve really got to venture overseeing a four-year, Bernard White, the company’s Under the deal, Olympia keeps site redeveloped after the new know your market. This is local, $150 million renovation of the founder, president and CEO, de- all revenue generated by the are- venue opens. The state is paying sensible and consistent with in- famed 91-year-old Rose Bowl stadi- clined to comment. na, including concessions and up to $6 million for the demolition dustry practices,” he said. um in Pasadena, Calif. Hunt Construction Group is one parking, and all money from any once the Wings leave JLA. Joint ventures or partnerships Its other high-profile sports of the largest sports stadium and naming rights deal. There will be Bill Shea: (313) 446-1626, spread the risk allocation, Raij said. work includes designing, building arena builders in the world. The 12 five-year renewal options for its [email protected]. Twitter: “These are large projects, and and financing the $55.7 million firm has averaged $1.9 billion in 35-year management deal. @bill_shea19

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Page 32 CRAIN’S DETROIT BUSINESS April 14, 2014 Ferndale: Biz-friendly moves attract companies, spur expansions ■ From Page 1 and the city had to take a long hard look inward to make some changes. EXPANDING FERNDALE “One of the challenges any com- Retail and small-business munity like Ferndale faces is evolv- expansions in Ferndale during the ing from a mentality that you are a last 24 months: writer and enforcer of rules to Black Owl LLC, restaurant: treating businesses as customers in Opening in September in 8,000 your community,” he said. square feet at 345 E. Nine Mile “Municipalities have been be- Road. Owners: Thom Bloom, hind the curve in terms of looking Reagan Bloom and Scott Myrick. at economic development that Employees: 45. way, but we’ve embraced the no- Blue Nile Ethiopian Restaurants tion that when businesses locate Inc.: 1,100 more square feet at 545 and grow in Ferndale, it strength- W. Nine Mile Road. Owner: Seifu Lessanework. Employees: 10. ens our city overall.” Looking down Nine Mile Boston Tea Room Psychic Road in downtown Ferndale, Readings and Intuitive Counseling: where the core vacancy Magnet for the nontraditional 1,700 more square feet at 224 W. rate is just 2 percent. Nine Mile Road. Owner: Lewis, who owns the Painting Heatherleigh Navarre. Employees: 5. WIKIPEDIA with a Twist franchises in Fern- C! Tech Solutions Inc.: 800 more dale and Farmington, had original- square feet at 23257 Woodward foot Brass Aluminum building and and no beer will be served onsite. way system, they are assessed by ly considered locating her Fern- Ave. Owner: Ryan Meray. additional employees, said Mar- The building sold for $160,000, the state and the state collects the dale location in Royal Oak before Employees: 2. garet Fitzgerald, CFO of Allied according to Washington, D.C.- taxes under Michigan’s Public Act it opened in September 2010. Ferndale Collision & Auto Repair Printing. It has 94 employees and based real estate information ser- 282 of 1905. “I was just spinning my wheels” Inc.: 2,500 more square feet at four locations in Ferndale on vice CoStar Group Inc. Delacourt and Coulter said spe- in Royal Oak trying to get city ap- 180 Vester St. Owner: Dennis Woodward, Hilton Street, Wanda cific expansion plans have not yet provals, she said. “I was ready to Zoma. Employees: 7. and Rosewood Street. Efficiencies at City Hall been submitted to the city. Patrick rock and roll with this. Ferndale Go Comedy! Improv Theater LLC: On Burdette Street, Search Optics Waldron, a CNR spokesman, said wasn’t as popping, but it just 2,800 more square feet at 261 E. Inc. has about 85 employees and ex- Delacourt said licensing and there are plans to expand the facil- Nine Mile Road. Owners: PJ seemed to be the new spot where pects to grow to 150 by the sum- permitting have been streamlined ity for additional container stor- Jacokes, Gerald Knight, Tommy mer, said Christian Fuller, chief between 2011 and last year at the age. How large the expansion folks started going. So I turned to LeRoy and Chris DiAngelo. relationship officer for the compa- would be has not been determined. Ferndale, and it just seemed to be Employees: 14. request of the Mayor’s Business ny, which moved to Ferndale from Council. He said that since then, the “We are working on a plan for the perfect place.” Greenleaf Bodywork LLC, San Diego three years ago. It is on an expansion that is being devel- In her more than three years massage therapy: 800 more city has refined its approval downtown, Lewis has noticed a square feet at 251 E. Nine Mile track to reach its five-year goal of processes and the technology used oped and we plan on meeting with range of businesses expanding and Road. Owner: Kelly Battaglia. 300 employees, Fuller said. by city inspectors. the city of Ferndale in the coming more unique businesses entering Employees: 16. Search Optics is a marketing For example, temporary certifi- weeks to review and discuss those the market. M-Brew, brewery and firm specializing in search engine cates of occupancy are now al- expansion plans,” Waldron said. “We have stores or boutiques coffeehouse: Opening June 1 in optimization and Web development lowed, free occupancy certificate that you can’t find everywhere, not 6,500 square feet at 177 Vester. for the automotive industry. walk-throughs to identify issues Geographic advantage just the ‘Joe Blow’ store on the cor- Owner: Dean Bach. Employees: 15. “It’s wonderful to get a new retail ahead of time are available, and ner or the average liquor store or Modern Natural Baby LLC: 2,700 business that hires a couple folks, building inspectors use tablets for Beyond the railways, Ferndale’s anything like that,” she said. “It more square feet at 200 W. Nine but when you can attract a compa- faster inspections and more time proximity to freeways like I-696 kind of rounds out the whole atmos- Mile Road. Owners: Emily Murray, ny that hires hundreds of people efficiency. and I-75 and major roads like John Murray and Debbie Clear. and pays millions of dollars in tax- “We implemented all of that Woodward Avenue and Eight Mile phere of the Ferndale flavor, which Employees: 7. is more of a different flavor than es, it has the potential to help firm stuff almost immediately,” Dela- and Nine Mile roads make it a Painting with a Twist: 2,500 up the financial foundation of your court said. “To get companies to prime location for expansion and you might find in average cities.” more square feet at 200 W. Nine There is also new downtown of- community and attract jobs,” Coul- agree to expand and invest in their investment, Osiecki said, especial- Mile Road. Owner: Michelle Lewis. ly for distribution or service-relat- fice development planned that will Employees: 22. ter said space, they need to know that the upgrade local offerings, said Derek Companies like Autolights LLC, community is behind them.” ed companies. Public House, restaurant: 2,400 Credit Union ONE has added an- Delacourt, director of the Community square feet at 241 W. Nine Mile Roe Photo LLC and Dearborn Axle Inc. Coulter said he formed the coun- & Economic Development Department. Road. Owner: Jeff King. have also added a total of 20 new cil in the model of Oakland County other 18 employees at its Ferndale Jake Sigal, the founder and for- Employees: 30. jobs in Ferndale for a total invest- Executive L. Brooks Patterson’s headquarters on West Nine Mile, mer CEO of Ferndale-based Livio Ra- Rouge Makeup and Nail Studio ment of $1.4 million, according to Oakland County Business Roundtable. and 57 total, Delacourt said. dio, which was acquired by Ford Mo- LLC: 1,000 more square feet at Irene Spanos, economic develop- “I don’t mind stealing good Osiecki said the streamlined tor Co. last year, plans to turn two 23341 Woodward Ave. Owners: ment and community affairs direc- ideas,” he said. government improvements have city-owned surface parking lots be- Cheryl Salinas-Tucker and Jeny tor for Oakland County. been additional selling points. hind the former Old Navy store at Bulatovic. Employees: 7. Still other kinds of businesses “The local Nine Mile Road and Woodward Av- The Fly Trap, restaurant: 800 have diversified their business Railroad real estate government, in- enue into a mixed-use development more square feet at 22950 model — such as the Rust Belt Mar- Ferndale’s role as a logistics hub spectors and Woodward Ave. Owner: Kara ket on the northwest corner of economic devel- with at least 100 residential units, McMillian. Employees: 12. may be expanding, although the office space for second-stage tech Nine Mile and Woodward. city is wary of too much growth in opment team Treat Dreams, ice cream store: companies, and a parking struc- The 15,000-square-foot artist and this segment. have been very 2,000 more square feet of space helpful in get- ture, Delacourt said. designer market, which used to be The Canadian National Railway at 22965 Woodward Ave. Owner: ting uses that “We are pursuing those second- open only during weekends, is Co., formerly Grand Trunk Western Scott Moloney. Employees: 14. may not be al- stage tech and automotive-related now hosting events throughout the Railroad, has purchased a pair of Source: Ferndale Downtown Development lowed in other companies,” Delacourt said. “Those Authority week, Delacourt said. properties on Fair Street in the communities, would fit fantastically in Ferndale.” Chris Best, who owns and oper- last six months, and is planning to Osiecki such as a brew- Sigal said the additional office and expansion project for Brass ates the market with his wife, expand its intermodal transporta- ery or a distillery,” he said. space would increase foot traffic Aluminum Forging Enterprises LLC on Tiffany, said about 4,000 square feet tion facility on 29 acres on Fern What challenges remain for Fer- during the day downtown and the Wanda Street. Brass Aluminum, of the Rust Belt Market center has Street. The railroad has a meeting parking structure would improve Valentine Distilling Co. and Allied been gated off for events like wed- with the city later this month. ndale? Osiecki said much of the ex- the parking situation during Printing Co. are expected to occupy dings and bar mitzvahs. Film pro- CNR purchased properties at isting industrial inventory is out- nights and weekends. Sigal is ne- a 220,000-square-foot building that duction companies from California 350-360 Fair St. and 380 Fair St., dated and requires substantial gotiating to buy the lots but has will be renovated. have also inquired about reserving Delacourt said. Those 60,000- modernization. Plus, there isn’t a not submitted site plans for the A 100,000-square-foot building the space for wrap parties, he said. square-foot ($975,000) and 29,000- wealth of office space, he said. project. will also be constructed in the pro- The market, which occupies the square-foot ($775,000) buildings That’s where the Sigal project is Construction would begin in the ject, which the Michigan Economic former Old Navy store, has served were purchased in December, ac- key, Coulter said. summer of 2015 at the soonest, Development Corp. said will create as incubator space for Rock City cording to CoStar. The sellers were Going forward, the city is look- Delacourt said. about 50 full-time Brass Alu- Eatery and HenriettaHaus Coffee listed as Dragutin Pernik and Hand ing outside the downtown bound- minum jobs and another 50 by oth- Roasters LLC, both of which now of Grace Charitable Organization. aries for continued expansion and Product manufacturing er building tenants. have locations in Hamtramck, Coulter said he would oppose an redevelopment in the city, he said. Valentine Distilling makes vod- Delacourt said. expansion if it “would take those “We saw the opportunity for kas, gins and whiskey, and Allied Industrial and manufacturing Further south and east, the industrial buildings off the (city) growth in the larger industrial and businesses are also showing a re- Printing provides printing and in- Woodward Avenue Brewery also pur- tax rolls and create a lot of indus- commercial sectors that had been newed interest in Ferndale. formation management services. chased an 11,000-square-foot build- trial rail traffic in a place very neglected in our community to Last month, the Michigan Strate- Allied Printing plans $10 million ing on Saratoga Street, said Matt close to a neighborhood.” gic Fund Advisory Committee ap- in investment over the next five Osiecki, vice president of industri- Currently, the buildings are as- some extent,” he said. proved $718,000 in city tax-incre- years. That investment is for new al brokerage in the Southfield of- sessed by Ferndale and the city Kirk Pinho: (313) 446-0412, kpin- ment financing incentives for an equipment, an additional 61,000 fice of CBRE Inc. WAB will only collects the taxes on them. If the [email protected]. Twitter: @kirkpin- $8.6 million industrial renovation square feet at the 220,000-square- move its brewing operations there, properties become part of a rail- hoCDB 20140414-NEWS--0033-NAT-CCI-CD_-- 4/11/2014 5:43 PM Page 1

April 14, 2014 CRAIN’S DETROIT BUSINESS Page 33 Pension: Market rise could lift depth of city cuts www.crainsdetroit.com EDITOR-IN-CHIEF Keith E. Crain ■ From Page 1 GROUP PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] now — the general system was just next month, and U.S. Bankruptcy obligation bonds. All told, those If the two pension funds, post- ASSOCIATE PUBLISHER Marla Wise, (313) 446- under 60 percent funded, while the Court Judge Steven Rhodes ex- contributions put a large dent in bankruptcy, expect at any time to 6032 or [email protected] EXECUTIVE EDITOR Cindy Goodaker, (313) 446- police and fire fund was about 78 pects to review it at a confirmation the unfunded liability of $2.03 bil- exceed 80 percent funding by 2023 0460 or [email protected] percent funded on a market-value hearing in July — the pension lion in the general system and under actuarial projections, the MANAGING EDITOR Jennette Smith, (313) 446- 1622 or [email protected] basis, at the end of fiscal 2012, ac- plans will receive a combined $816 $1.43 billion in the police-fire sys- trustees are authorized to increase MANAGER, DIGITAL STRATEGY Nancy Hanus, cording to the systems’ own valua- million in funding from various tem, as previously estimated by ac- pension benefits through restora- (313) 446-1621 or [email protected] MANAGING EDITOR/CUSTOM AND SPECIAL tion reports. But the adjustment sources. Those include the state tuary Milliman Inc. tions or cost-of-living adjustments, PROJECTS Daniel Duggan, (313) 446-0414 or plan could infuse the plans with a [email protected] ($350 million, which has yet to be Anthony Randazzo, director of so long as the increases don’t put SENIOR EDITOR/DESIGN Bob Allen, (313) 446- combined $1.9 billion of new capital approved by the Legislature); pri- economic research for the Los An- the plan back under an 80 percent 0344 or [email protected] SENIOR EDITOR Gary Piatek, (313) 446-0357 or in about nine years, and recent vate foundations ($366 million); geles-based Reason Foundation, said target. [email protected] rates of return are far exceeding and a private nonprofit corpora- it’s reasonable the police-fire sys- Once given, officials have said, WEB EDITOR Kristin Bull, (313) 446-1608 or [email protected] the city’s projections and could tion to acquire the Detroit Institute tem could get on track to exceed 80 those future increases also cannot WEST MICHIGAN EDITOR Matt Gryczan, (616) 916- close the funding gap faster. of Arts and its assets ($100 million). percent funding, and possible for be rescinded even if funding levels 8158 or [email protected] WEB PRODUCER Norman Witte III, (313) 446- “We’re generally, I think, re- Also going to the general sys- the general pension to be ade- or market conditions change. 6059, [email protected] maining in a bull market for at least tem, under Detroit’s current plan, quately funded as well, if all those The two current pension plans EDITORIAL SUPPORT (313) 446-0419; YahNica Crawford, (313) 446-0329 another two years,” said David is a proposed $675 million in con- requests are met. also would be frozen effective June NEWSROOM (313) 446-0329, FAX (313) 446- Tawil, co-founder and portfolio tributions from the Detroit Water But there are many contingen- 30 under the city’s proposal, in fa- 1687 TIP LINE (313) 446-6766 manager of New York City-based and Sewerage Department by 2023, cies in that forecast, he said, not all vor of new defined-benefit plans REPORTERS Maglan Capital, a hedge fund that in- and recouping funds the general of which are under Detroit’s con- with different features for active Jay Greene, senior reporter: Covers health care, insurance, energy utilities and the environment. vests in distressed assets, including retirement system previously control. employees. Experts told Crain’s (313) 446-0325 or [email protected] some risky government bonds. tributed into annuity savings for “The performance of the invest- that a freeze could also reduce Amy Haimerl, entrepreneurship editor: Covers entrepreneurship and city of Detroit. (313) 446- “So let’s assume the city gets participating city employees. ments for Detroit over the next five those plans’ unfunded liabilities 0416 or [email protected] what it wants in a confirmation City officials propose to recom- years will depend on outside factors, since thousands of current employ- Chad Halcom: Covers litigation and the defense industry. (313) 446-6796 or [email protected] hearing. We could see a good con- pute those annuity contributions like what happens in the future with ees won’t be accrue any additional Tom Henderson: Covers banking, finance, tinuous run for another year after for 2003 through 2013 to correct for the quantitative easing policy by the benefits under them in the future. technology and biotechnology. (313) 446-0337 or [email protected] that, and maybe with extra capital “imprudent and excessive” contri- Federal Reserve,” which is the prac- The plan of adjustment calls for Kirk Pinho: Covers real estate, higher education, that funding does go to a much bet- butions, and return the difference to tice of regulating interest and mon- the general and police-fire pension Oakland and Macomb counties. (313) 446-0412 or [email protected] ter place for the pensioners,” he the plan. Officials close to the bank- ey supply through government pur- funds to presume investment rates Bill Shea, enterprise editor: Covers media, said. “That could happen. And if ruptcy have estimated that proposal chases of securities, he said. of 6.25 percent and 6.5 percent, re- advertising and marketing, the business of sports, and transportation. (313) 446-1626 or that’s the case, the question will alone in the adjustment could re- “Former chairman (Ben) Ber- spectively, in computing future lia- [email protected] Nathan Skid, multimedia editor: Also covers the then be, what was the point of the coup $300 million to $400 million. nanke has said explicitly that bility. In fiscal 2013, the plans re- food industry and entertainment. (313) 446-1654, bankruptcy?” Another $13 million or more (quantitative easing) has helped a ported actual investment returns of [email protected] Dustin Walsh: Covers the business of law, auto Assuming Detroit gets all it could go to the pensions from a great deal to support the perfor- 12.23 percent and 18.5 percent. suppliers, manufacturing and steel. (313) 446- wants under the proposal — far proposed settlement the city mance of investment products that Chad Halcom: (313) 446-6796, 6042 or [email protected] Sherri Welch, senior reporter: Covers nonprofits, from a certainty as 170,000 creditor reached this past week with three institutional investors (like pen- [email protected]. Twitter: services, retail and hospitality. (313) 446-1694 or ballots still have to go out for votes insurers of unlimited tax general sions/trusts) often invest in.” @chadhalcom [email protected] LANSING BUREAU Chris Gautz: Covers business issues at the Capitol and utilities. (517) 403-4403 or [email protected] ADVERTISING SALES INQUIRIES (313) 446-6052; FAX (313) Legislation would 393-0997 Molina: HMO plans move to larger HQ SALES MANAGER Tammy Rokowski SENIOR ACCOUNT EXECUTIVE: Matthew J. ■ From Page 1 Langan ADVERTISING SALES Christine Galasso, Jeff extend National Yu said Molina will have a new- “The prospects for growth are LLC managed the building on be- Lasser, Sarah Stachowicz CLASSIFIED SALES Angela Schutte, manager, hire estimate in about a month. very good because Michigan is half of the previous owner, Miami (313)-446-6051 “With new projects coming down expanding Medicaid eligibility Beach, Fla.-based special servicer DIRECTOR OF MARKETING AND EVENTS Heritage Area the pipeline, like Healthy Michigan and the early sign-ups are coming LNR Partners Inc., Lasky said. Elizabeth Buscher DIGITAL MARKETING MANAGER Plan and the dual (Medicare and in very quickly,” he said. Glenn DesRosiers, vice presi- Jennifer Chinn Medicaid) demonstration, we will In terms of enrollment, Detroit- dent for Friedman, said Molina AUDIENCE DEVELOPMENT DIRECTOR Eric Cedo designation most likely add more staff in the based Meridian Health Plan, United was originally going to lease four EVENTS MANAGER Kacey Anderson SENIOR PRODUCER FOR DIGITAL/ONLINE near future,” Yu said. Healthcare Community Plan and floors at 880 W. Long Lake total- PRODUCTS Pierrette Dagg Healthy Michigan is the state’s Molina are the three largest Med- ing 120,000 square feet but ended SENIOR ART DIRECTOR Sylvia Kolaski Legislation has been introduced SALES SUPPORT Suzanne Janik, YahNica Crawford new Medicaid program for people icaid HMOs in the state, Baum- up buying the building instead. to extend the MotorCities National PRODUCTION MANAGER Wendy Kobylarz at or below 133 percent of the feder- garten said. They are all expected Yu said Molina does not plan to Heritage Area designation for the PRODUCTION SUPERVISOR Andrew Spanos al poverty level. Eligibility covers to hire additional employees, he lease the unoccupied space to oth- state, which promotes auto CUSTOMER SERVICE a single adult with annual income said. er tenants. tourism and the preservation of MAIN NUMBER: Call (877) 824-9374 or write of $15,000 or less and families of Molina could take on tens of Berkemeier said Molina’s new [email protected] historic automotive sites. four with annual income below thousands of new Medicaid en- building has been vacant since SUBSCRIPTIONS $59 one year, $98 two years. The original federal legislation Out of state, $79 one year, $138 for two years. $34,000. rollees, Baumgarten said. BBDO North America closed its of- Outside U.S.A., add $48 per year to out-of-state that created the heritage area des- rate for surface mail. Call (313) 446-0450 or fice there in 2010 and eliminated (877) 824-9374. ignation in 1998 is set to expire Under health care reform, an es- In 2009, Molina was the state’s 450 local jobs when it lost the SINGLE COPIES: (877) 824-9374 Sept. 30, so the Detroit-based Mo- timated 320,000 uninsured people largest Medicaid HMO, with Chrysler LLC marketing account REPRINTS: (800) 290-5460, ext. 125; torCities National Heritage Area Part- will be enrolled in Medicaid this about 200,000 members. Meridi- (717) 505-9701, ext. 125; or lindsay.wilson that year. @theygsgroup.com nership is working on awareness year. By 2021, 470,000 will be cov- an, which operated at the time Department of TO FIND A DATE A STORY WAS PUBLISHED: building. ered, said the state under Health Plan of Michigan, was Molina will be moving to the (313) 446-0406 or e-mail [email protected] Community Health Over the past 15 years, the des- . a close second at 197,000. Troy Corporate Center from 100 W. CRAIN’S DETROIT BUSINESS IS PUBLISHED BY CRAIN COMMUNICATIONS INC. ignation has brought more than Stephen Harris, Molina’s Michi- Since then, however, Meridian Big Beaver, a multi-tenant building. CHAIRMAN Keith E. Crain $6 million in matching federal gan president, said the company has gained about 90,000 members PRESIDENT Rance Crain projects to add between 25,000 and to 290,434, while Molina gained Crain’s reported in December TREASURER Mary Kay Crain dollars through the National Park Executive Vice President/Operations Service to help fund education, 30,000 Medicaid members this about 12,000 for a total of 212,914 in that Molina was considering William A. Morrow preservation and promotion ef- year. 2014, said the Michigan Department moving to downtown Detroit. Executive Vice President/Director of Strategic of Financial and Insurance Services Harris said at the time that the Operations Chris Crain forts tied to Southeastern and “If we get beyond that, we are . Vice President/Production & Manufacturing prepared,” said Harris. “We are United is second-largest with company had not yet decided Dave Kamis central Michigan’s automotive Chief Information Officer and labor history. already increasing staffing in 242,185 members. where to move. Anthony DiPonio Without renewal of the designa- health care service areas.” Total enrollment for the 24 Opening space downtown, G.D. Crain Jr. Founder (1885-1973) Medicaid HMOs in Michigan which was discussed among real Mrs. G.D. Crain Jr. Chairman (1911-1996) tion, ongoing projects like the ren- New hires this year will in- EDITORIAL & BUSINESS OFFICES: clude nurses, social workers and stands at 1.28 million, said DFIS. estate sources late last year, is 1155 Gratiot Ave., Detroit MI 48207-2732; ovation of the Model T Automotive (313) 446-6000 Heritage Complex and Packard call center employees to answer Molina’s real estate planning still on the table, Yu said. Cable address: TWX 248-221-5122 AUTNEW DET Automotive Plant, both tourist members’ questions, he said. has an eye toward future needs. “We are considering the option CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is published weekly, except for a special issue the draws, could be at risk, Shawn Po- “Healthy Michigan requires us The late February sale of the of opening a satellite office in third week of August, and no issue the third week building at 880 W. Long Lake was downtown Detroit,” she said. of December by Crain Communications Inc. at maville, managing director of the to schedule new members for a 1155 Gratiot Ave., Detroit MI 48207-2732. partnership, said Friday. primary care physician visit for “north of $10 million,” accord- San Diego-based McKinney Advi- Periodicals postage paid at Detroit, MI and additional mailing offices. POSTMASTER: Send Last week, U.S. Rep. John Dingell within a few months of joining ing to Washington, D.C.-real es- sory Group hired Bloomfield Hills- address changes to CRAIN’S DETROIT BUSINESS, and U.S. Sen. Carl Levin introduced the plan. We need to build tele- tate information service CoStar based Forum Group LLC to repre- Circulation Department, P.O. Box 07925, Detroit, MI 48207-9732. GST # 136760444. Printed in companion bills to extend the her- phonic models to take care of Group Inc. sent Molina locally. U.S.A. itage designation until Sept. 30, this,” Harris said. Molina currently occupies Kirk Pinho: (313) 446-0412, Entire contents copyright 2014 by Crain Communications Inc. All rights reserved. 2030. Pomaville sent an email to Allan Baumgarten, a Min- 60,000 square feet in the Liberty Cen- [email protected]. Twitter: Reproduction or use of editorial content in any manner without permission is strictly supporters, asking them to contact neapolis-based health researcher ter office complex at Big Beaver @kirkpinhoCDB prohibited. their legislative leaders and push who publishes the Michigan and Livernois roads in Troy. Jay Greene: (313) 446-0325, for the federal extension. Health Market Review, said Moli- Farmington Hills-based Fried- [email protected]. Twitter: — Sherri Welch na’s expected hiring makes sense. man Integrated Real Estate Solutions @jaybgreene 20140414-NEWS--0034-NAT-CCI-CD_-- 4/11/2014 5:42 PM Page 1

Page 34 CRAIN’S DETROIT BUSINESS April 14, 2014 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF APRIL 5-11 OMPANY NEWS vesting $122 million in a All this correspondence Judge OKs city’s C five-year expansion plan has led to real estate specula- General Motors Co. expected to create 545 jobs. tion about whether Com- Orr: Parking plans to invest $449 million Sterling Heights-based puware will eventually sell, $85M swaps deal at its Detroit-Hamtramck and who some of the interest- auto supplier Key Safety Sys- Assembly Plant and tems is close to being ed buyers could be for the etroit won permis- Brownstown Battery As- bought by Chinese private modern Campus Martius sion to pay UBS AG sembly to build the next- equity firm FountainVest fines hike right building. Dand Bank of America generation Chevrolet Volt Partners Would Dan Gilbert, whose Corp. about $85 million to for $700 million to and two future vehicles, $800 million, Bloomberg re- Quicken Loans Inc. already cancel interest-rate swaps, Automotive News reported. occupies a big chunk of in a deal that may help the ported. Sterling Heights-based thing to do space in the building, be in- city speed the end of bank- General Dynamics Land Sys- Sweet Lorraine’s Fabu- terested in buying the 15- ruptcy. The settlement, ap- tems is reviewing options lous Mac n’ Cheez will open story building to add to his proved by after the U.S. Army Materiel its fourth location, at Cass s surely as parking play panels vary. I’m downtown portfolio? U.S. Bank- Command denied its protest and Warren avenues, this enforcement cars youngish with fairly good Whether it makes sense ruptcy over a bidding process that summer. Aseem to roll up at the eyesight, and I have trouble for Gilbert is something for Judge the company claims favors The Specialty Medicine exact moment a meter ex- reading some of them.” him and his Bedrock Real Es- Steven rival BAE Systems Inc. Compounding Pharmacy in pires in Detroit, the price of In Orr’s original plan of ad- tate Services to figure out. Rhodes, Farmington Hills- South Lyon and its owner parking in the city appears justment, the EM said that The building, which opened yields a based Aco Hardware, which were fined $100,000 and the to be on the way up. the city projects writing in 2003, was built for $350 payout of in January announced it pharmacy’s license re- Last week, we learned 323,000 parking tickets, boot- million. The new headquar- $42.5 mil- would transition its stores Emergency Manager Kevyn ing 2,760 vehicles and raising ters was seen as an act of voked by the state for dis- lion apiece Orr offi- $11.4 million for the 2013 fis- good corporate citizenship Rhodes to Ace Hardware stores, said tributing tainted dextrose cially cal year, which ends in June. by company co-founder Peter to UBS and it would close stores in injections. proposes Karmanos Jr., who retired last Bank of America’s Merrill Dearborn, Saline and First-quarter revenue raising year. Lynch unit to terminate the Tecumseh rather than con- for Detroit’s three casinos the city’s Bedrock and Compuware swaps; Detroit would pay vert them. was down 5.9 percent from standard declined to comment last an additional $4.2 million a Visteon Corp. an- a year earlier, but up 13 parking week about a possible real month until late 2015 to sat- nounced $800 million in percent from February fine to estate sale. isfy the balance. new financing, including a 2014, said the Michigan Gam- $45. For In other bankruptcy $600 million seven-year ing Control Board. those of news: loan and $200 million re- you who State women’s golf group City creditors, led by volving line of credit to pay Orr haven’t hosts benefit scramble Financial Guaranty Insurance for bond redemption and OTHER NEWS been caught at an expired Co., lined up four tentative other things. meter lately, the current tab The Michigan Women’s bids of as high as $2 billion Idaho-based US Ecology The Michigan Strategic is $20 — $10 if you pay it Golf Association will host its to purchase all or parts of Inc. announced an agree- Fund board OK’d $6.8 mil- within 10 days. inaugural Legacy Celebra- the Detroit Institute of Arts ment to acquire Wayne- lion from the Michigan Eco- tion May 19 at the Travis The $45 fee would also Compuware building: collection. The creditors based EQ — The Environmen- nomic Development Corp. for Scuttlebutt, but no sale. Pointe Country Club in Ann apply to parking in no- asked U.S. Bankruptcy Court tal Quality Co. for $465 the Michigan Pre-Seed Fund Arbor to honor the game’s parking zones, blocking an to order the city to cooper- million from New York 2.0, supporting high-tech leading women. alley or driveway and other ate with the interested par- City-based Kinderhook Indus- early-stage companies. The The event will include an scenarios. The cost of ille- New chatter over possible ties. tries LLC. fund will be managed by In- 18-hole scramble, lunch, gally parking in a handicap Wayne County wants Troy-based Talmer Ban- vestMichigan, a new Detroit- Compuware building sale dinner, auction, raffle and spot would jump to $150 U.S. Bankruptcy Judge corp Inc. announced the based nonprofit. Ever since the takeover awards program. from $100. Steven Rhodes to appoint a sale of its 11 branches in battle that was launched in MWGA will honor Shirley The Troy City Council And the changes could mediator to return Oakland Wisconsin to Town Bank, a December 2012 between Com- Spork, founding member of authorized an offer of $1.05 bring double penalties; if and Macomb counties to subsidiary of Rosemont, puware Corp. and New York- the Ladies Professional Golf million to Grand/Sakwa you park at a two-hour me- the negotiating table on Ill.-based Wintrust Financial based Elliott Management Association; Betty Richart, Properties LLC to reacquire ter but stay four hours, you forming a regional water Corp. Separately, Talmer Corp., there’s been chatter U.S. Golf Association commit- the 2.7-acre Troy Transit Cen- could be ticketed twice. agreed to sell its branch in about Compuware’s head- tee member and Golf Associ- authority to manage the De- ter property after the courts While the proposal Albuquerque, N.M., to New quarters building in Detroit. ation of Michigan honorary troit Water and Sewerage De- found it had reverted to awaits a public hearing Mexico-based Grants State At the time Elliott governor; and Mary Fossum, partment. Grand/Sakwa ownership. process, insiders believe the Bank. Sale prices wern’t launched the later-called-off Michigan State University parking fine hikes are pret- disclosed. The Detroit Blight Au- $2.3 billion bid for Com- women’s golf team coach. ty much a done deal. Orr ON THE MOVE Ally Financial Inc. thority will no longer focus puware, it and other institu- Proceeds of the event ben- could refine his plan based raised $2.38 billion in its on structural blight re- tional investors, including efit the MWGA Girls Golf Toyota Motor Corp. vet- on feedback, but he has the initial public offering, moval, at the request of city Sandell Asset Management Program and the collegiate eran Yoshiaki Kato, 59, was legal authority to make the Bloomberg reported. The officials. Founder and Corp. of New York, said the golf teams of MSU, Eastern named president of Ply- heftier fines so. stock started trading on the Chairman Bill Pulte said the Michigan University and the mouth-based Aisin Technical Consultants recommend- company had too much New York Stock Exchange nonprofit will focus on non- University of Michigan. Center of America, replacing ed that Orr increase the money locked up in head- under ALLY. structural blight removal. quarters expenses. Tickets for the event, Takashi Aoyama, who re- fines because a $30 parking An attorney for Novi- Jim Wigginton, manag- In November, another in- which include all the day’s mains senior technical ad- ticket actually costs the city based Lotus Bancorp Inc. ing partner of True North Eq- vestor, Starboard Value LP of activities, are $150 and can viser. $32 to issue and process. and Lotus Bank argued in uity LLC, Birmingham, do- New York, wrote to CEO Bob be purchases at mwgolf.org. Jennifer Rass, 42, re- Orr’s plan of adjustment Oakland County Circuit Court nated $5 million to the Paul and asked him to sell the signed as senior communi- also points out the city’s that top bank executives, University of Michigan Com- building and lease it back as cations manager of Detroit- current fine schedule is un- Midtown ribbons for Foster who are being sued for al- prehensive Cancer Center to a way to unleash sharehold- based Quicken Loans Inc. derpriced compared with leged discrimination, had a establish two endowed fel- er value. Care Awareness Month Separately, Jennifer Kulczy- other large cities. First Amendment right to lowships supporting thy- ck, 40, was named vice pres- Small business owners say The Children’s Center and send derogatory emails roid cancer research. the new fines could hurt busi- hundreds of volunteers plan ident of communications about Asian Indians. The Midtown Viaducts ness, but are mainly con- to deck Detroit’s Midtown for Gilbert’s Rock Ventures Clinton Township- Public Art and Light Project cerned about customers neighborhood in blue rib- LLC and Bedrock Real Estate based automotive publish- will fund up to $75,000 per feeling fairly treated. bons April 29 to recognize Services LLC. er Tweddle Group Inc. an- project for artists/design- “I say $45 is fine if Foster Care Awareness Jeffrey Brown was ter- nounced an equity ers to decorate two Mid- they also address some Month in May. minated as executive direc- investment from Los Ange- of the other issues of Ribbons will adorn tor of the Oakland County les-based firm The Gores town railroad viaducts. Ap- fairness,” said Rachel lampposts, storefronts Community Mental Health Group LLC, led by Alec Gores, plication deadline for the Lutz, owner of the Pea- and trees up and down Authority. brother of investor and De- Midtown Detroit Inc.-orga- cock Room and Emerald Woodward Avenue, from The Detroit Artists Mar- troit Pistons owner Tom nized project is April 30. boutiques in Midtown. Ferry Street through ket named Matt Fry, 45, for- Gores. Details were not dis- Federal prosecutors “The meters aren’t well-lit Grand Circus Park. mer director of marketing closed. said Michael Grundy spent enough or well-maintained In Michigan, more than for the Detroit Institute of Cleveland private eq- $10,000 on hair plugs, a por- enough for people to read 14,000 children are placed in Arts, as its director. He suc- uity firm The Riverside Co. tion of the $700,000 in kick- them. The city will write foster care annually, accord- ceeds Nancy Sizer, who left bought Southfield-based Di- backs he accepted when he tickets at meters that don’t ing to The Children’s Center, in March. Fry led market- versified Property Solutions. was assistant Wayne Coun- function. They are inconsis- a nonprofit, which provides ing at the Walters Art Muse- Terms were not disclosed. ty executive and head of foster care services for about tent. Some accept coins; um in Baltimore for the Novi-based Eberspaech- Wayne County HealthChoice, 200 children each day. some accept cards. The dis- past three years. er North America Inc. is in- AP reported. DBpageAD_DBpageAD.qxd 4/3/2014 10:46 AM Page 1 DBpageAD_DBpageAD.qxd 3/27/2014 9:29 AM Page 1