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This issue in two sections (Section 1) Vol. 28, No. 23 JUNE 4 – 10, 2012 $2 a copy; $59 a year

©Entire contents copyright 2012 by Crain Communications Inc. All rights reserved Page 3 INVESTING IN RECOVERY Benefit corporation bills Snyder set have businesses concerned Manufacturing New plants, new profits to bypass rolls on when sun goes down Brembo SpA rides Legislature Women in business brakes for growth on bridge On corporate BY DUSTIN WALSH CRAIN’S DETROIT BUSINESS Michigan Strategic boards, where Brembo SpA’s braking systems have crossed the Fund is the vehicle are the women? Atlantic many times over the past 50 years on some of the world’s most exclusive imported sports cars. BY BILL SHEA Page M13 But the company’s first foray into the domestic CRAIN’S DETROIT BUSINESS market came in 1992 when it secured a contract to Gov. Rick Snyder will use the Game-changing women supply its high-performance brakes on what was Michigan Strategic Fund as a conduit then a new V-10 sports car called the Dodge Viper. to build a new Detroit River Read their stories on Pages Now, 20 years later, the Italian supplier recently bridge, rather than going through opened its first U.S. manufacturing plant in Homer, M15-M24. Celebrate them Aug. 8. the Michigan Legislature, sources southwest of Jackson, familiar with the matter have told See crainsdetroit.com/events and is poised to expand Crain’s. North American opera- Since enabling bills died in a tions. Brembo is riding state Senate committee last fall, This Just In the market’s fast-recov- Snyder has been seeking a way to ering volumes and au- authorize Michigan’s participa- Faurecia begins operations tomakers’ desire to tion in the $2.1 billion New Interna- capitalize on its high- GLENN TRIEST tional Trade Crossing project with- at Saline interiors plant performance brand Owner Zack Taylor made it a point to finish Lee Steel’s out going through the Legislature recognition. new headquarters in steel only — no wood trim. Auburn Hills-based Faure- — where Republicans have long Brembo brakes like this for Since opening its opposed the span. cia North America Inc. on Friday the Corvette ZR1 are meant North American head- The governor’s office declined to said it has begun operations to be seen, capitalizing on quarters in 2010 in Ply- at Ford Motor Co.’s Automotive the brand’s prestige. discuss specifics. mouth, Brembo North Technology steels “It is still all very much in Components Holdings LLC Sal- America Inc. has invested $150 million in the market ine interiors plant. progress. Conversations contin- with plans to invest $100 million over the next few ue,” said Geralyn Lasher, Snyder’s Faurecia leased a portion of years to expand its North American presence. the 1.6 million-square-foot for- press secretary. “There are differ- The high-performance brake systems and seat Lee Steel for future ent options out there. We’ve said mer Visteon Corp. plant after supplier is one of many foreign-owned subsidiaries acquiring the $1.1 billion book all along we’re exploring the op- looking to expand its presence in Southeast Michi- BY PAT SHELLENBARGER tions available to us.” of interiors business from the gan’s auto industry. plant last month. The plant SPECIAL TO CRAIN’S DETROIT BUSINESS For the past several weeks, spec- The largest foreign-owned au- ulation has been that the Snyder will supply cockpits, instru- tomotive supplier subsidiaries In his newly expanded Wyoming plant, Lee Steel ment and door panels and administration will use what is in Southeast Michigan, accord- Corp. CEO Zack Taylor walked next to his latest ac- known as an interlocal agreement center consoles to 12 Ford pro- ing to Crain’s May 21 list, gener- quisition: a behemoth of a machine called a “preci- grams, including the F-150, to get the joint Canadian-Michigan ated revenue growth of 27.2 per- sion multiblanking line with stretcher leveler.” bridge project under way. Expedition, Explorer, Focus, cent from 2010 to 2011. In layman’s terms, the $4 million contraption, Mustang, Taurus, and Lin- The Michigan Strategic Fund is Comparatively, the nine largest which began operating three months ago, can take an autonomous economic develop- coln Navigator and MKS. publicly traded Southeast Michi- a 70,000-pound roll of steel, stretch it, flatten it and Faurecia also announced ment board, has the statutory abil- gan-based suppliers generated turn it into whatever size sheets his customers ity to aid financing a project such Friday the creation of a call revenue growth of 16.7 percent want. And it takes just two employees to operate it. center for its Ford Customer as the NITC, and has been party to over the same period. Nearby, Taylor pointed to a machine that can interlocal agreements in the past. Business unit in Southfield. James Gillette, director of au- Gillette slit large rolls of steel into narrower widths much The office, occupying 50,000 Michigan’s Urban Cooperation tomotive analysis for Northville-based IHS Automo- faster than the older machine in his Detroit plant. Act of 1967 allows two or more gov- square feet of the Travelers tive Inc., said Southeast Michigan and the U.S. are “This line would outproduce the existing line in Tower I at 26555 Evergreen ernmental units to enter together Road in Southfield, will house See Brembo, Page 20 See Lee Steel, Page 19 into deals — interlocal agreements more than 200 employees. — for shared services, including More than 50 of those jobs will transportation and infrastructure, without having to seek legislative be new hires, with the rest Highlights from the island, coming from existing ACH approval. plant employees and from Pages 9-12, M1-M11 The law permits interlocal Faurecia, the company said in Vested interest agreements with other states and a release. Inside Canada — deals that require ap- Private 200: Diversification Survey says: What biz is thinking, of business in higher- proval from the governor rather — Dustin Walsh boosts companies on list, Page M1 doing in Michigan, Page M1 education funding, Page M27 See Bridge, Page 21

What’s the connection Oakland Community College. Yes, OCC. between a qualified

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Suwon, sellwashersintheU.S.for Corp. tronics Inc. claimed thatSeoul-based subsidies undercutU.S.producers. merce saidKoreangovernment chines madeinSouthKorea.Com- large residentialwashingma- Memorial DayIcanremember,”hesaid.“Iexpect Lakes Marina slower thanthatofpreviousrecessions.” consumer confidencecontinuetoimprove,albeit in thestateasemployment,personalincomeand Coburn said.“Thereisalotofthatpent-updemand terms ofboatsalesandretail/ancillarypurchases,” Michigan BoatingIndustriesAssociation Coburn, chairmananddirectoroftheLivonia-based “darkening thedoorways”ofboatdealers,saidJim pared withthistimelastyear,andbuyersareagain weekend, marinasreportedariseinbusinesscom- ing signsofbuoyancy.AftertheMemorialDay another indicationthatthestate’seconomyisshow- Boat industrysetssailtowardhorizonofpromisingsigns Daewoo wastoldtopay71per- In aDec.30complaint,Whirlpool Jeff Covey,generalmanagerofthe300-slip Michigan’s watersarestartingtofillwithboats— “We areslowlymovingintherightdirection 248.989.4200 and Samsung ElectronicsCo. , and ver in Muskegon,justcameoff“thebusiest Daewoo Electronics . advomas.com LG Elec- of paper thattheydidn’tthinkpeople later asvisitorsreturntothearea.” to businesses,theysaid,mightcome meet theirexpectations.Theboost projected influxofvisitorsdidn’t many individualbusinesses“the Benton Harborandfoundthatfor ness communityinSt.Josephand Harbor followedupwiththebusi- the ter thetournamentendedMay27, new the ported onBentonHarbor’shopesfor just round1forBentonHarbor Senior PGAimpactmixed,butit’s . 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CELLANEOUS Business Leadersfor Michigan Chamberof Chairman Matthew Michigan StateUni- officials saidthe , Sept.12-13in Nina ThekdiNina June 4,2012 I Lansing It isacon- West 20120604-NEWS--0003-NAT-CCI-CD_-- 6/1/2012 6:37 PM Page 1

June 4, 2012 CRAIN’S DETROIT BUSINESS Page 3

Inside Bills’ implications worry business Henry Ford lands 1st tenant for health park, Page 4 Questions arise over creating benefit corporations Our Community Central Bank “ stockholders sue, Page 17 BY SHERRI WELCH Studley. Barnett, D-Farmington Hills, members CRAIN’S DETROIT BUSINESS “There is concern about unin- would create a formal designation tended consequences, such as sug- for benefit corporations in Michi- feel they Bills that would create socially gesting that one type of business gan that protects them from share- Company index conscious benefit corporations in structure was better or preferen- holder lawsuits if they go public contribute Michigan are drawing opposition tial over another.” and preserves their social and These companies have significant mention in this over fears the new organizations Benefit corporations have a so- environmental purposes if they to their week’s Crain’s Detroit Business: might market themselves in a way called “triple bottom line.” They change ownership. Atlas Oil ...... M4 that makes other forms of for-prof- pay as much attention to people — Under the legislation, the new commun- Barton Malow ...... M4 it businesses look greedy. their employees, customers and corporate entities would be re- Becker Ventures ...... 13 “There’s a lot of question about the community — and their im- quired to file basic information ities no matter how Bloom General Contracting ...... M3 the intent and whether there’s re- pact on the planet or environment with the state like other corpora- they’re organized. Brembo North America ...... 1 ally a need for this new classifica- as they do to their profits. tions and report annually on their Cardinal Health ...... 4 tion,” said Michigan Chamber of House Bills 4615 and 4616, intro- ” Cascade Engineering ...... 20 David Jessup, SBAM Center for Healthcare Research & Transformation . . M24 Commerce President and CEO Rich duced a year ago by Rep. Vicki See Bills, Page 20 Central Michigan University ...... M27, M36 Chapter One-Michigan ...... M20 Colasanti Group ...... M1 Community Central Bank ...... 17 Detroit Jazz Festival ...... M22 Suppliers, Detroit Regional Chamber ...... M8 Detroit Symphony Orchestra ...... 22 Eastern Michigan University ...... M27, M28, M35 Ernst & Young ...... M13 OEMs add Faurecia North America ...... 1 Ferris State University ...... M27 Ford Motor ...... 3, 9 General Motors ...... 3, M16 3rd shifts to Ghafari Associates ...... M1 Grand Rapids Community College ...... M33 Grand Valley State University ...... M27, M30 Hella Corporate Center USA ...... 20 Henry Ford Health System ...... 4, M23 meet demand Honigman Miller Schwartz Cohn ...... M1 ImageSoft ...... 18 Inforum Center for Leadership ...... M14 More profitable Lake Superior State University ...... M27 Lee Steel ...... 1 than new plants Little Caesar Enterprises ...... M18 Loomis Sayles & Co...... M4 BY NICK BUNKLEY Macomb Group ...... M4 CRAIN NEWS SERVICE Madonna University ...... M36 Marygrove College ...... M21 The return of the domestic auto- Michigan Economic Development ...... M9 motive industry — and its contri- Michigan State University . . . . . M9, M27, M31, M33 bution to the Michigan economy — Michigan Tech ...... M27 can be seen in the middle of the JOE WILSSENS MotorCity Casino Hotel ...... M18 Third-shift workers arrive at General Motors’ Flint Assembly Plant. It’s part of auto industry players trying to “maximize night in plants here and across the North American Bancard ...... 22 their brick and mortar,” said IHS Automotive analyst Michael Robinet. country. Northern Michigan University ...... M27 At General Motors Co., nearly one GM — prodded by the Obama ad- the 83 assembly plants in North “The days of building vehicles Oakland Community College ...... M36 in five U.S. hourly workers now ministration’s auto task force, America will operate with three on two shifts and being satisfied Oakland University ...... M27 clocks in close to midnight and which viewed overnight downtime shifts of workers, and nearly half with that are finished,” Robinet Oliver/Hatcher Construction and Development . . . M1 goes home around sunrise. as a lost opportunity for profits — of all vehicles built here will come said. “They are absolutely going to Prima Civitas ...... M31 That soon will include the au- was the first automaker to begin from a three-shift plant, according maximize their brick and mortar Plastipak Holdings ...... 18, M4 tomaker’s Hamtramck plant and using three shifts widely as the in- to forecasts by IHS Automotive. “It’s as much as possible.” Present Value ...... M15 RJN Environmental ...... M3 already includes plants in Flint dustry recovered from the reces- never been that high,” said IHS an- Even when sales surpassed 17 RKA Petroleum ...... M4 and Delta Township, west of Lans- sion. Ford Motor Co., Chrysler Group alyst Michael Robinet. million vehicles a year in the early Rush Trucking ...... M22 ing. In fact, GM has more assembly LLC, Nissan Motor Co. and Kia Motors In addition to the GM plants, 2000s, no more than seven out of Sachse Construction ...... M1 plants in North America running Corp. have followed suit. In turn, Ford plants in Wayne and Dear- more than 100 assembly plants ran Saginaw Valley State University ...... M27 overnight than the entire auto in- many of their suppliers have born are running three shifts. on three shifts at any one time, ac- SET Enterprises ...... M9 dustry did at any point from 2000 added overnight shifts. Chrysler expects to add a third shift Skillman Foundation ...... M17 through 2009. By the start of next year, 22 of at its Detroit plant this year. See Third shift, Page 18 Start Garden ...... M11 Strategic Staffing Solutions ...... M15 UAW Retiree Medical Benefits Trust ...... M19 University of Detroit Mercy ...... M27 University of Michigan ...... 7, M9, M27, M33 University of Michigan-Dearborn ...... M27 Macomb banks on a business buying Mt. Clemens landmark University of Michigan-Flint ...... M27 Wayne State University ...... M9, M27, M33 BY RYAN KELLY terest, said Mark Deldin, deputy the time.” space, he said, but it does not want Wello ...... 20 SPECIAL TO CRAIN’S DETROIT BUSINESS Macomb County executive. The new listing price comes to play landlord. Western Michigan University ...... M27, M34 “It was up for sale, but it was from two appraisals, Deldin said. The building, at 77 S. Main St., Whole Foods ...... M6 The former Mt. Clemens Federal more of an auction,” he said. “We Macomb’s government wants to costs the county roughly $10,000 to Savings and Loan building is up for didn’t have any serious offers at see a successful business in the $15,000 a year in maintenance. sale again, with a price tag of “Rather than sit on it and incur $275,000. additional expense,” Deldin said, Department index The building, where nightclub “if we can find a buyer who brings BANKRUPTCIES ...... 7 Bank Nightlife went out of business a viable business down there, that BUSINESS DIARY ...... 14 last year, is recognizable for its is the best we can hope for.” CALENDAR ...... 15 wavy concrete roof. Deldin stressed that the county The county flirted with selling wants to see a business open in the JOB FRONT ...... 16 the building earlier this year. space and contribute to the growth CLASSIFIED ADS ...... 17 Though no one bought it, media at- KEITH CRAIN...... 6 COSTAR GROUP tention generated significant in- See Landmark, Page 19 LETTERS...... 6 MARY KRAMER ...... M6 Business of nonprofits And ... OPINION ...... 6 Crain’s rounds up the week’s nonprofit news Crain’s has the latest nonprofit job listings, THIS WEEK @ PEOPLE ...... 16 every Thursday in the Nonprofit Newsletter. updated weekly by the Michigan Nonprofit WWW.CRAINSDETROIT.COM Sign up at crainsdetroit.com/getemail. Association, at crainsdetroit.com/nonprofitjobs. RUMBLINGS ...... 22 WEEK ON THE WEB ...... 22 20120604-NEWS--0004-NAT-CCI-CD_-- 6/1/2012 1:26 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS June 4, 2012 Henry Ford lands first tenant for health park in Midtown

BY JAY GREENE guard pledged $850 million in con- Need growth capital? Henry Ford Hospital When businesses CRAIN’S DETROIT BUSINESS struction and renovation projects Business on 10 face the up-and-down demands of . in Midtown over the next five the rise? growth, purchasing goods, or even to make Cardinal Health Inc.’s new medical years. W. Grand Blvd payroll, Crestmark’s service and products distribution center — As part of the community health slated to open in Detroit’s Mid- Site of apartment innovative solutions can be the answer. complex park, Schramm said, Henry Ford town in late 2013 — is expected to officials also are talking with sev- Providing asset-based lending/lines of credit be the first tenant in Henry Ford eral private developers in hopes to Health System’s $1 billion-plus com- Ferry Park St. to small- and mid-sized businesses Lincoln St. attract more than $500 million to nationwide for over 15 years. munity health park. Holden St. offer commercial, retail and hous- Sterling Ave. Later this year, Henry Ford also ing projects in the neighborhood. Call me today for more information. could select a developer to begin Commonwealth St. He declined to name the develop- construction on a 35- to 55-apart- ers. ment complex as the first residen- Matt Dekutoski Since 2007, Henry Ford has tial project in a master plan to re- Marquette St. been acquiring land from the city www.crestmark.com 248.267.1647 | [email protected] develop 300 acres south of Henry and property owners for the 300- Ford Hospital at 2799 W. Grand Site of distribution OVER $200,000,000 PROVIDED TO NEW CLIENTS IN 2011 center acre parcel bounded by Grand Blvd., said William Schramm, Trumbull St. Boulevard to the north, the Lodge Henry Ford’s senior vice president Rosa Parks Blvd. to the east, I-94 to the south and of strategic business development. 14th Street to the west, Schramm “This is a vi- said. able housing In 2010, the state housing au- project to pro- thority awarded Henry Ford vide apartments $383,000 in federal stimulus money for our resi- 94 to demolish abandoned and de- dents, fellows CDB crepit buildings in the area sur- and young pro- rounding the hospital, Schramm fessionals,” thority for property tax incentives for cleanup and development ef- said. Schramm said. The Wayne County Land Bank The 5-acre par- forts. The project awaits consider- also has been working with Henry cel, which the ation by the Detroit City Council. Schramm Ford to purchase land for the pro- hospital system “We are not anticipating any ject. The land bank is a govern- owns and includes an existing 17- challenges in getting the shovels mental authority that purchases unit building, is on the west side of in (for the Cardinal project) by the abandoned, underutilized or Sterling Street, south of Ferry end of the year,” Riney said. blighted property and creates a Park Street. Once the approvals are secured, productive use for the property. Henry Ford also is trying to en- Schramm said, Henry Ford plans “We are still negotiating prices courage developers into building a to sell the 24 acres it will acquire with residential properties, but senior living center south of West for the Cardinal facility to Kirco the single biggest transaction, Grand that could include assisted Manix, the Troy-based construc- about 30 percent of the properties, and independent living apart- tion arm of the Kirco family of real 2012 GLK350 4MATIC is still owned by the city of De- ments. The center could provide estate companies that will develop troit,” Schramm said. “We are Starting living quarters for Henry Ford the property, construct the build- $ Plus tax, title, ing and lease it to Cardinal. So far, making good progress.” at plates. Tier 1 credit. hospital retirees and long-term 41,065 Henry Ford has spent about $1 mil- Schramm said Henry Ford is residents of the neighborhood, Schramm said. lion to acquire the land, Schramm nearing completion of a master Last week, Dublin, Ohio-based said. strategic plan for the south cam- Cardinal Health struck long-term “We will not make money on the pus expansion using a community agreements with Henry Ford and sale of the property,” Schramm planning approach.

SPJB114 Detroit Medical Center to build a said. “We just want to recover our “We are involving residents, 273,520-square-foot medical prod- costs and sell it at fair market val- business owners, education and 6 ucts distribution center. ue. Our board said several years faith-based organizations for the “We had approached Cardinal ago as part of our commitment to whole 300 acres,” Schramm said. and DMC about their willingness the revitalization of Detroit that “We are just beginning to narrow to build a center for both facilities, we would provide the opportunity in on identifying high priority re- and everyone was supportive of to invest in properties. We are an tail and business uses.” that,” said Bob Riney, Henry enabler, a catalyst for these pro- Schramm said the community Ford’s president and COO. “This jects.” group, which has met three times, PEWABIC POTTERY will be one of the anchor tenants Steve Inacker, president of med- has suggested neighborhood needs for the economic development of ical channel management at Cardi- for a dry cleaning store, a grocery Midtown.” nal Health, said the 10-year agree- store, additional recreational facil- The Cardinal distribution cen- ments with DMC and Henry Ford ities, a park and a charter school. ter would be on 24 acres east of will also help Cardinal meet its Henry Ford has hired Detroit- 12th Street or Rosa Parks Boule- strategic goals. based Hamilton Anderson Associates vard, north of the Grand Trunk The center will also serve Cardi- to conduct the community-based Western railroad tracks, south of nal clients in other areas of Michi- and land use planning, Schramm Marquette Street and west of gan, northern Ohio and northern said. Commonwealth Street, Schramm Indiana, Inacker said. Wayne State University also is con- said. A month after DMC announced tributing to the resurgence of Mid- The center is expected to bring in March 2010 that it had agreed to town by announcing in April the 140 jobs to Detroit when Cardinal be acquired by Nashville-based planned construction of a 200,000- relocates its current Romulus fa- Vanguard Health Systems Inc. in a square-foot biomedical research cility by the end of 2013. $1.5 billion deal, Henry Ford offi- center. Perfect for Recognition Pending city, state and federal cials said they were beginning to The $93 million project will be at UNIQUE. economic development and regula- plan a $1 billion-plus community the site of the former Dalgleish Awards and Corporate tory approvals, Cardinal Health health park development that Cadillac building on Cass Avenue. AFFORDABLE. Gifts. Call Pewabic today could begin construction of the would include a $500 million south The first phase of the project could $30 million project by the end of campus expansion of Henry Ford begin this summer with the demo- to have your logo put on 2012 and take up to 12 months to Hospital. lition of the old American Beauty APPRECIATED. a handcrafted tile. complete, Riney said. The south campus expansion Iron Building at Burroughs and Cardinal Health, a health care would include a new 210-bed pa- Woodward avenues to make way supply and inventory manage- tient tower, surgical center, med- for a parking lot. 10125 E. Jefferson Ave. s Detroit, MI 48214 ment company, also recently re- ical office building, cancer insti- Jay Greene: (313) 446-0325, 313.626.2030 s [email protected] s www.pewabic.org ceived a recommendation from the tute and emergency department. [email protected]. Twitter: @jay- Pewabic Pottery is a 501 (c)(3) non-proﬁt organization. Detroit Brownfield Redevelopment Au- As part of the DMC sale, Van- bgreene DBpageAD.qxp 5/23/2012 3:04 PM Page 1

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Page 6 CRAIN’S DETROIT BUSINESS June 4, 2012 OPINION LETTERS Benefit corporations Don’t shoot down fighter jobs Editor: For the previous 45-plus years, In these difficult financial times, Crain’s Detroit Business Five Lakes Association members welcomes letters to the editor. elected officials have to make tough paid for weed treatment through All letters will be considered for plan a plus for state choices on funding the most critical their annual dues. The variable publication, provided they are projects that can fuel the economy signed and do not defame leaf milfoil infestation required and generate jobs for Americans. ike most states, Michigan recognizes a handful of legal individuals or organizations. members to assume the responsi- The F-35 Joint Strike Fighter company structures, from corporations and partner- Letters may be edited for length bility for responding to this major sets a high standard for innova- ships to sole-proprietor enterprises and even low-profit and clarity. infestation. L tion and helps Americans contin- limited liability companies. Write: Editor, Crain’s Detroit In February 2012, a special as- ue to protect our national security. sessment was unanimously ap- Now, as Sherri Welch reports on Page 3, a bipartisan coali- Not only is the F-35 vital to nation- Business, 1155 Gratiot Ave., Detroit, MI 48207-2997. proved by members for the treat- tion of state lawmakers would like Michigan to create a new al defense, it also creates advanced ment of the infestation. Email: [email protected] classification: “benefit corporations.” technology jobs that build a highly The township where Five Lakes Two major business organizations — the Michigan Cham- skilled workforce. These are the is located approved a financial dis- kinds of jobs essential to rebuild- jobs that can continue to jump-start bursement to assist with the cost ber of Commerce and the Small Business Association of Michi- ing the economy and renewing our our economy in Michigan. of the treatment plan. On May 30, gan — oppose the legislation. global competitiveness. Donald O’Connell our treatment firm began the first In Michigan, this means 2,600 di- But the new classification is being championed by Grand Executive director of several robust, integrated infes- rect and indirect jobs at 29 suppli- Operating Engineers Local 324 Labor Management Rapids entrepreneur Fred Keller, whose Cascade Engineering tation treatments. er locations, generating $202 mil- Education Committee Inc. touts its “triple bottom line” business model of focusing lion in local revenue. These It is my understanding that on “people, planet and profit.” numbers are based only on the Michigan has already lost several There are no tax benefits to the designation, but the legisla- current production rate of build- Plant invaders take toll inland lakes to a similar infestation would protect such entities from shareholder lawsuits ing one to two jets per month. Editor: tion, which makes even kayaking impossible. and guarantee that an entity keep its social mission if owner- At full-rate production, 200 to 220 I just read the May 28 article aircraft will be built per year, “Conservancy seeks biz support in I have been searching for a ship changed. which can only mean more jobs. fight against invasive species.” grant program to help save our The chamber and SBAM told Crain’s they believe commu- With component parts coming from The research was very good; how- lake, but we have not identified nity-minded member companies could be at a disadvantage if suppliers around the state, not fully ever, there is yet another chapter such a program. benefit corporations pit “good companies” against “bad com- funding the F-35 program will be of the aquatic invasive species sto- Five Lakes needs help in its ef- panies” by using that status in marketing campaigns targeting devastating for many in Michigan. ry that needs to be told. forts to save our lake. We under- Currently, Michigan is among In July 2011, 45 percent of our stand this will be an ongoing bat- competing businesses that aren’t benefit corporations. the top 20 states in the program for lake was infested with variable leaf tle, but the Five Lakes Association This is the same kind of logic behind the kind of regula- number of supplier locations and milfoil, introduced to Five Lakes is committed to making a differ- tions that have limited access to specific trades and occupa- in the top 10 for direct dollars and through the Michigan Department ence. tions that the Snyder administration is trying to undo. It’s also jobs. By fully funding this most ad- of Natural Resources public boat Dave Southworth unlikely that many mainstream companies would be pres- vanced fighter jet, Congress can launch and attached to the pro- President give our troops the air support they pellers, anchors and undercar- Five Lakes Association sured to adopt the structure, as SBAM fears. need, while generating good-paying riages of boats and boat trailers. Farwell Instead, this structure is most likely to appeal to entrepreneurs who want to “do good” and make money. Six states have permitted benefit corporations, and laws are pending in two others. If adopted in Michigan, the model could actually unleash a flood of social entrepreneurism and attract people with new ideas to the state. TALK ON THE WEB From www.crainsdetroit.com Mackinac talks bring good vibes Re: Washtenaw defends role in region gether for the betterment of South- Reader responses to stories and eastern Michigan by developing If it were me, I’d want nothing to blogs that appeared on Crain’s The Detroit Regional Chamber’s 31st annual Mackinac Pol- the Detroit River. do with balkanized metro Detroit website. Comments may be icy Conference was marked as much by what wasn’t there as bill t cat where, like Mackinac, there’s al- edited for length and clarity. by the positive vibe that was. ways more talk than action. State lawmakers were missing, but that actually enhanced Cinc Re: Nicklas Lidstrom’s retirement Re: Why did business leave for Florida? the business-to-business discussion. Also missing — at least She might have found the IT tal- How can we expect to foster a A true professional in all aspects. on the formal program — was a strong political focus on the ent she needed had she looked a little sense of community and promote I hope he makes Detroit his home city of Detroit. regionalism if our elected leaders and there is a way to tap his many harder around Michigan’s universities. Business leaders are learning to focus on what they can influ- act like petulant children on a talents by the Wings. All are graduating computer scien- tists, I believe. Companies like ence and change — with good results. Positive thinking is conta- (very expensive) playground? Timothy Dinan Google in Ann Arbor and GalaxE in gious. Whether it was Gov. Snyder’s “relentless positive action” Washtenaw should be part of the conversation and shouldn’t have to Detroit are finding IT talent. At mantra or the upbeat forecast by Corktown entrepreneur Angel “pay its way in” — it has a vested Re: Globe Building to be rec center least then she could have gotten Gambino, attendees got the same message: Michigan — includ- interest in seeing the region pros- This shows what can be done if back to Cadillac on the weekends ing Detroit and Southeast Michigan — is turning around. Some per. everyone puts aside their egos and without getting on a plane. good things are happening here, with more to come. DetroitArchGirl party affiliations and works to- Matt Roush KEITH CRAIN: Detroiters are living a tale of two cities Visitors to Detroit will find plen- vices continue to de- while. community, made up of large and businesses that exist only because ty of excitement during the sum- cline every day due to You can’t help but small businesses, will simply cope the city no longer offers certain mer months. lack of cooperation and wonder: Which city is with whatever challenges the city services in a timely manner. The IndyCar races on Belle Isle revenue. the real Detroit? of Detroit throws at them. A lot of Charter schools, although having over the weekend are an example. The politicians still It looks like there are entrepreneurs may discover they nothing to do with City Hall, are Roger Penske is once again to be have not resolved who’s two Detroits — and will can prosper by offering basic ser- simply a reaction to school systems congratulated for transforming this going to help run the be two for the foresee- vices that once might have been that stopped serving the communi- rather worn-out island into the city of Detroit. The able future. One De- provided by the city. ty and are offering an alternative, venue it deserves to be all year long. county has become dys- troit, the one that is You simply hire your own when in Detroit and around the state. He is correct in suggesting that functional, and our ex- supposed to run key the city becomes dysfunctional. Detroit business continues to do there should be a modest fee to use ecutive continues to try services for residents, An interesting twist on privatiza- what it has to do to survive and the island to generate revenue to and convince the popu- is floundering in a sea tion. How long has it been since prosper while the governments of maintain the park as it deserves. lation that everything of chaos. The other De- the city stopped plowing snow on the county and city get their hous- Meanwhile, city departments is fine and he has done nothing troit is doing just fine, run by busi- residential streets? Residents hire es in order. No one knows how and elected officials are bickering wrong in spite of the fact that he’s ness and continuing to flourish. their own snow removal. I have no long that will take. Meantime, about this and that while city ser- been running the place for quite a My guess is that the business doubt that there are many other we’ve got a tale of two cities. 20120604-NEWS--0007-NAT-CCI-CD_-- 6/1/2012 5:31 PM Page 1

June 4, 2012 CRAIN’S DETROIT BUSINESS Page 7 UM supports 2 suits backing grad student unionizing

BY CHAD HALCOM sistant at the Ann Arbor and Dear- longer applicable. Rep. Jeff Irwin, Ann Arbor; Demo- CRAIN’S DETROIT BUSINESS born campuses earned a minimum “The regents clearly took the po- cratic Leader Richard Hammel, The university stipend of $17,630 per four-month sition early on, that the university Mt. Morris Township; Floor The University of Michigan is sup- “ term this past academic year, ac- considers the GSRAs to be employ- Leader Kate Segal, Battle Creek; porting two legal battles against looks at this as a way cording to data from the UM Office ees and that as employees they Labor Committee Chairman Public Act 45, a new law that bars of Academic Human Resources. have a right to determine if they Steven Lindberg, Marquette; Rep. its 2,200 graduate student research of supporting The state employment relations want to be represented in collective Mark Meadows, East Lansing; and assistants from unionizing. commission has maintained since bargaining,” Fitzgerald said. “The Rep. Woodrow Stanley, Flint. On Friday, U.S. District Judge graduate students. 1981 that research assistants are university looks at this as a way of Defendants are House Speaker Mark Goldsmith signed an order ” not university employees the same supporting graduate students.” James Bolger, R-Marshall; Speak- allowing UM to become a new Rick Fitzgerald, University of Michigan way that graduate student instruc- An administrative law judge er Pro Tem John Walsh, R-Livo- plaintiff in an April 17 lawsuit tors and graduate student staff as- was scheduled to hear the union’s nia; House Majority Floor Leader challenging Public Act 45 filed by Rick Fitzgerald, associate director sistants are, but the union in case March 13 but has taken no ac- Jim Stamas, R-Midland; and the the American Federation of Teachers- of public affairs at UM, on how spring 2011 filed a petition to rep- tion since Snyder signed the new House as a whole. Michigan and its local, UM Graduate much of the research funding sup- resent them anyway, arguing in law the same day. Chad Halcom: (313) 446-6796, Employees Organization. ports graduate research assis- part that their roles had evolved The plaintiffs in the state law- [email protected]. Twitter: The federal lawsuit argues that tants, but a full-time research as- and the old distinction was no suit are six House Democrats — @chadhalcom the new law is unconstitutional as an equal protection violation because it singles out a group of employees as ineligible to be classified as public employees. The university on May 11 filed a brief opposing the way Public Act 45 was adopted by the Legislature, “Lower costs, dependability, in a lawsuit filed March 26 by several Democrats against the Repub- lican leadership in the state House. The Ingham County suit al- outstanding customer service— leges the GOP illegally gave immediate effect to three bills, including Public Act 45, without allowing De- mocrats’ request for a roll-call vote. ƚŚĞǇ͛ƌĞ Ăůů Ă WůƵƐ͘͟ The union represents 1,700 UM graduate students in two other employment classes and also seeks to represent the research assistants. Adding that group would more than double its size. The research assistants account Dr. Vickie Markavitch has been through the process for tens of millions in payroll drawn upon UM’s $1.2 billion in ŽĨĐŚŽŽƐŝŶŐŚĞĂůƚŚƉůĂŶŽƉƟŽŶƐŵĂŶǇƟŵĞƐ͕ annual research funding. The UM Board of Regents in late and cost is always a deciding factor. But HealthPlus brings February passed a resolution op- more to the table than just low cost: a commitment to posing Public Act 45 while it was still pending. On April 2, it voted 5- wellness, superior customer service and a truly easy 3 to take a position in the state lawsuit. ƚƌĂŶƐŝƟŽŶ͘dŚĂƚ͛ƐǁŚǇƌ͘DĂƌŬĂǀŝƚĐŚƌĞĐŽŵŵĞŶĚƐ Regent and previous UM board Chairman Andrew Richner, also a ,ĞĂůƚŚWůƵƐƚŽŽƚŚĞƌƐŝŶŚĞƌƉŽƐŝƟŽŶ͘ partner at Detroit-based Clark Hill plc, was a dissenter in the April 2 zŽƵĐŽƵůĚĂĚĚĂďŝŐƉůƵƐĨŽƌǇŽƵƌĞŵƉůŽǇĞĞƐ͕ vote and said at the time he be- lieved it was inappropriate for the ŵŝŶƵƐƚŚĞŚŝŐŚĐŽƐƚ͘ board to take any position in a legal spat between political parties. The university spent $1.24 billion on research in the fiscal year ending last summer, of which two- thirds was supported by federal funding, according to the UM Of- fice of the Vice President of Re- search. The school has averaged about 2,200 graduate student research assistants per semester over the past academic year, out of 12,500 total graduate students. About half are in the College of Engineering, while another 700 are in either the School of Medicine, School of Pub- lic Health or the College of Litera- ture, Science and the Arts. No exact data is available, said

BANKRUPTCIES The following business filed for Chap- ter 11 protection in U.S. Bankruptcy Court in Detroit May 25-31. Under /ƐŶ͛ƚŝƚƟŵĞǇŽƵŐŽƚƚŚĞWůƵƐ͍ Chapter 11, a company files for reorga- Dr. Vickie Markavitch nization. 1-800-332-9161 Ralph Roberts Realty LLC, 12900 Hall www.healthplus.org Superintendent, Oakland Schools Road, Suite 190, Sterling Heights, vol- untary Chapter 11. Assets: $1,520,233; liabilities: $108,382. ΞϮϬϭϮ,ĞĂůƚŚWůƵƐŽĨDŝĐŚŝŐĂŶ͕/ŶĐ͘ — Meghana Keshavan DBpageAD.qxp 3/8/2012 2:53 PM Page 1

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June 4, 2012 CRAIN’S DETROIT BUSINESS Page 9

ACKINAC RIEFS M B Them Ford sees state as Silicon Valley a session sponsored by Business Leaders for Michigan, the authors of for world’s ‘mobility revolution’ what it calls Michigan’s Turn- William Clay Ford Jr. called on around Plan. a group of business executives Three board members of the Thursday to business group joined Kaas on the push for policies panel: University of Michigan Presi- and culture dent Mary Sue Coleman, Ford Mo- changes that tor Co. Chairman Bill Ford Jr., and will revive the Mike Jandernoa, former chairman entrepreneurial and CEO of Allegan-based drug- spirit in Michi- maker Perrigo Co. gan. Ford and Jandernoa spoke of The executive Michigan’s need to adopt an entre- chairman of preneurial culture that embraces Ford Motor Co. risk and tolerates failure. Ford said the state is Coleman said university stu- in a positive position as the nation dents in the past six to eight years begins to value manufacturing have become much more focused much than it did before the reces- on wanting to solve problems in sion. society and in business, but in “No healthy economy since the ways that are socially responsible industrial revolution has been suc- and sustainable. cessful without an industrial The panel set an optimistic tone base,” he said. “Prior to 2008, peo- on the building blocks to secure ple in our country dismissed man- Michigan’s future. ufacturing as old and irrelevant. Michigan has assets to help pro- People were respected for making pel it forward, Kaas said. For exam- deals, not making things.” ple, it has a high concentration of Ford said the future of individ- engineering talent but has about 5 ual mobility needs to include percent of the national revenue for much more than cars; it has to in- engineering services. “That should clude smart grids that allow cars be 10 or 15 percent,” he said. to communicate with each other and with the infrastructure. It rep- ITC’s Welch to chair Mackinac; resents a direction for the state’s business growth to lead that tech- Wed.-Fri. schedule returns nology. Joseph Welch, chairman, presi- “There are 1 billion cars on the dent and CEO of Novi-based ITC road worldwide right now,” he Holdings Corp., will chair the 2013 said. “That can grow to 4 billion by Mackinac Policy Conference for midcentury. And if we do nothing, the Detroit Regional Chamber. we will create global gridlock.” Welch succeeds current confer- With 70 percent of the people in ence chairman, Nancy Schlichting, the world living in cities, Ford CEO of Henry Ford Health System. said, solving global gridlock prob- Schlichting is expected to move on lems is a goal for the people of to chair the chamber board later Michigan to solve. this year. It’s not how many points you have — “Michigan must become the Sili- The chamber also announced con Valley of the mobility revolu- that the conference will return to it’s what you can do with them. With tion,” he said. its Wednesday-Friday format next Policies need to be more friendly year by meeting May 29-31. The FlexPerks,® your points go farther. At just to business development and conference was held Tuesday- trade, Ford said. He supported Thursday this year to accommo- 20,000 FlexPoints you earn award ﬂ ights Gov. Rick Snyder’s plan to elimi- date the Detroit Grand Prix, but the nate the personal property tax schedule turned out to be unfavor- up to $400 in value on more than 150 paid on machinery, tools and other able for legislators. assets used by companies. The chamber also set the follow- airlines. You can also redeem for cash or Said Ford: “We need to reclaim ing action items as a result of the the entrepreneurial spirit that put conference: merchandise. Choose FlexPerks for you Detroit in the leadership position Ⅲ Work with Gov. Rick Snyder to begin with.” and key institutions to host a or your business. Apply at any U.S. Bank, — Daniel Duggan statewide military veterans hiring ﬂ experks.com conference with the goal of secur- or 800-360-2900. Want Michigan in the top 10? ing employment for veterans. Ⅲ Engage in an effort to help De- Startup-friendly culture is key troit-based businesses cut through Michigan could be on the list of local government red tape to help top 10 states in the country by 2020, promote business startups and success. said Hans-Werner Kaas, a director The creditor and issuer of FlexPerks credit cards is U.S. Bank National Association ND, pursuant at McKinsey & Co., the consulting Ⅲ Lead a delegation of Detroit- to a license from Visa U.S.A. Inc., and the cards are available to legal United States residents only. firm whose data and analysis has area business leaders on a lessons ©2012 U.S. Bank. All rights reserved. fueled the blueprint for a business- learned trip to Washington, D.C., backed turnaround for Michigan. in partnership with Whole Foods Kaas said Michigan was losing Market and former Washington, 0.5 percent of its GDP every year D.C. Mayor Anthony Williams. beginning in 2000, pushing it into Ⅲ Accept the challenge from recession long before the rest of John McElroy, the host of “Auto- the country. line,” and partner with the College Gains in jobs and manufactur- for Creative Studies to engage in a KEYNOTE SPEAKER ing have helped, but the state still Detroit Future Envisioning pro- “A non-MBA June 26 needs to create more startup com- ject. Manoj Bhargava approach to DETROIT GOLF CLUB panies to compete with a state like Ⅲ Develop a program at the CEO of Living Essentials LLC Massachusetts, whose scorecard chamber to support promising en- growing a To register, please visit on startups is 80 percent greater trepreneurs and businesses with The creator of www.crainsdetroit.com/events than Michigan’s. access to coaching in best prac- business” Five-Hour Energy or call 313.446.0300 Kaas was one of four panelists in tices and capital. 20120604-NEWS--0010-NAT-CCI-CD_-- 5/31/2012 5:05 PM Page 1

Page 10 CRAIN’S DETROIT BUSINESS June 4, 2012

Let us do what we do. So you can do whatever it is you do. Washtenaw seeks defined role in region leaders’ talks

BY NANCY KAFFER structure investments; public safe- CRAIN’S DETROIT BUSINESS ty; and the by-now traditional rib- bing between Hackel and Patter- MACKINAC ISLAND — What son. should be Washtenaw County’s Hackel makes a point of empha- role in Southeast Michigan’s col- sizing Macomb County’s lake and laborative efforts? water sports; Patterson denigrates That question emerged during the county for its blue-collar repu- this year’s “Fab Five” panel at the tation. At this panel, Patterson Mackinac Policy Conference. presented data from the Michigan For the second year in a row, Co- Department of Natural Resources nan Smith, chairman of the Washt- that shows Oakland has more enaw County Board of miles of coastline than Macomb, Commissioners, joined the regional although Macomb has the larger leaders known as the “Big Four”: lake. Detroit Mayor Dave Bing, Macomb Patterson also suggested a new County Executive Mark Hackel, slogan for Macomb County, in ref- Oakland County Executive L. erence to a large pro-Macomb bill- Brooks Patterson and Wayne board featuring Hackel placed County Executive Robert Ficano. along I-75 en route to Mackinac Is- Lease Renegotiation? No problem Typically, Washtenaw County land. hasn’t played a role in regional de- Patterson’s suggestion: “Drive It takes a lot of work to identify the ideal location, cision-making. Your Home to Macomb,” a refer- negotiate terms and execute a lease. Relax and let “We care about how our govern- ence to trailer parks. us handle all of your commercial real estate needs. ments invest in core assets, like Tension between Patterson and Tom Lasky, Mike Ziecik, Jacob Sworski and Scott Strohl the city of Detroit; how we lever- Ficano, on the other hand, was de- age growth and development to be- fused almost immediately. The day #SPLFSBHFt-PBO3FTUSVDUVSJOHt-FBTF/FHPUJBUJPOt/PUF1VSDIBTFt1SPQFSUZ3FQPTJUJPOJOH come the attractor for talent and before, in response to a question investment (needed) for all of our about what Ficano should do in re- 4036 Telegraph Road, Ste 203 Bloomfield Hills, MI 48302 248-593-7850 www.forumgroupllc.com communities to become truly suc- sponse to the scandals wracking cessful,” Smith said. his administration, Patterson had Said Patterson: “Washtenaw remarked jokingly that Ficano isn’t in the zoo tax, not in the DIA should lock himself in a garage tax, not in the Suburban Mobility Au- with a running car — a remark thority for Regional Transportation some considered not to be a joke. tax. … All the institu- Panel host tions you want to Paul W. Smith protect, you don’t We’re happy to asked Ficano have a lot of skin in “ whether he the game.” pay for had any ad- But one vice for Patter- follows from (regional son. Ficano’s the other, response: Dou- Smith said. initiatives), ble your press “It’s hard secretary’s to tell the but we don’t salary. community The group to partici- want to buy also discussed pate in the the casinos tax if we’re our way to the opening in not in the conversa- Ohio. Ficano tion,” he said. table. said he’s con- Patterson suggest- ” cerned that ed that Washtenaw Conan Smith, Washtenaw County the new casi- County pony up Board of Commissioners nos will draw funds if the county funds from existing casino rev- wants a seat at the table. enue paid to governments. “We’ve got the highest SEV per “Casinos are good, but have we capita, the highest income per reached a saturation point?” he capita; a pay-to-play mentality said. “We should be into producing doesn’t fly in Washtenaw,” Smith things and making things. That’s said. “We’re happy to pay for (re- what really grows our economy.” gional initiatives), but we don’t The leaders are of mixed opin- want to buy our way into the table. ion when it comes to changes to “We’ve got to get the community the personal property tax pro- in Washtenaw to understand that posed by Gov. Rick Snyder. All ac- ‘this is part of your lifestyle.’ knowledge that it will mean less We’ve got to build a stronger affin- money to their governments, but ity between my community and Patterson said it’s a cut he’s pre- the mayor’s community.” pared to deal with. Said Bing: “This is about collab- Ficano said the changes would oration and partnerships. I don’t be a blow to Wayne County. Hack- see us solving problems by making el said his county could absorb the sure we include Washtenaw going cut but that some communities forward, but you’ve got an open in- would be challenged. vitation, as far as I’m concerned.” Bing said a personal property In general, the conversation of tax cut would put the city about the five leaders revolved around $30 million behind and would be familiar topics: regional trans- disastrous. portation, which all but Patterson Nancy Kaffer: (313) 446-0412, support unequivocally — he said it [email protected]. Twitter: comes down to funding — infra- @nancykaffer 20120604-NEWS--0011-NAT-CCI-CD_-- 5/31/2012 5:07 PM Page 1

June 4, 2012 CRAIN’S DETROIT BUSINESS Page 11

Why Should They Trust YOU? Mackinac attendees prefer Obama in poll

BY NANCY KAFFER he is going to request that they re- base his campaign,” Eskew said, CRAIN’S DETROIT BUSINESS new his contract for another four referring to the attacks on Kerry’s years,” she said. “Mitt Romney is military record. BBB Accredited Businesses MACKINAC ISLAND — Politics going to go before the voters and For vice president, Eskew said, took a national turn Wednesday. ask them to hire him.” Romney should look to New Jersey are committed to honest, ethical A panel featured national politi- To make the case, Obama has to Gov. Chris Christie, Ohio Sen. Rob cal consultants Donna Brazile, a tell his story: the economy has im- Portman or Florida Sen. Marco and fair business practices. Democrat, and Tucker Eskew, a proved, manufacturing is up, Rubio. Republican, moderated by former America and the world are safer. Brazile said Romney should con- U.S. Rep. and NBC News analyst “He has to campaign as an opti- sider a female vice president with Harold Ford Jr. It held at least one mist. He has to remind the Ameri- private sector experience to nar- surprise: An informal chamber in- can people why they hired him in row the lead Obama has among fe- Show Your Customers What stant poll put President Barack 2008,” Brazile said. male voters. Obama ahead of challenger Mitt To win, Eskew said, Romney has Eskew said he thinks selecting YOU Stand For Romney, former governor of Mass- a short list, too: “Pick a great vice another business leader for the achusetts, 71 percent to 29 percent. president, have a great convention Romney ticket would be a good (A poll conducted on behalf of and win the debates.” move. Crain’s and Honigman Miller Romney must follow the same Eskew said that the presidential Schwartz and Cohn showed a dif- playbook that former President race will be “tremendously close” ferent result. See Page M3.) George W. Bush followed in the and that the decision will hinge on Obama, Brazile said, has to run 2004 election against Democratic a small percentage of independent on his record. Sen. John Kerry. voters. “In many ways, he is going back “Disqualify your opponent on “It’s going to hinge on the econo- to the voters with his record, and the grounds on which he wants to my,” he said. ®

Attendees oppose Protect Our Jobs proposal Start With Trust®

BY DANIEL DUGGAN shrine collective bargaining rights tive bargaining,” he said. “We CRAIN’S DETROIT BUSINESS in the Michigan Constitution. The need to collectively bargain and Join the Better Business Bureau initiative would pre-empt right-to- come together to solve problems Serving Eastern Michigan and the Upper Peninsula MACKINAC ISLAND — Mack- work legislation by making it un- for the kids.” inac Policy Conference attendees constitutional and possibly undo On another topic, attendees vot- For more information: weighed in Thursday on a ballot other legislative initiatives of the ed 78 percent to 22 percent in favor bbb.org or 248-223-9400 proposal to change the state’s col- past year involving union rights of keeping Public Act 4, the law au- lective bargaining laws. and bargaining powers. thorizing emergency financial After presentations for and Protect Our Jobs backers must managers. against, 77 percent of attendees collect at least 322,609 valid signa- voted that the state’s collective tures by July 9 for the measure to bargaining policies should not be qualify for the Nov. 6 ballot. changed by voters adopting the “It is a radical constitutional Protect Our Jobs ballot question. amendment which will make John Bayeral, a science teacher unions more powerful than legisla- at the Michael Berry Career Center tors,” Lehman said. “It will drive in Dearborn Heights, argued on up the cost of services and set up a Management behalf of the need for more collec- rigged game which will help just 2 tive bargaining at schools, while percent of people in the state.” Joseph Lehman from the Mackinac Bayeral responded that the need Information & Center for Public Policy offered the for collective bargaining in a opposition view. school is crucial. Business Show The ballot question would en- “Michigan was built on collec-

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Page 12 CRAIN’S DETROIT BUSINESS June 4, 2012

Snyder: Hire vets, build bridge

BY NANCY KAFFER devote resources to areas where whether you live in Detroit or not.” CRAIN’S DETROIT BUSINESS crime rates are high. Detroit leaders need to move for- And, he noted, the best way to ward on the consent agreement the MACKINAC ISLAND — Gov. prevent people from falling into a city signed with the state, Snyder Rick Snyder wants the business life of crime is to ensure that jobs said. The Detroit Law Department community to support him on a are plentiful. plans to challenge the legality of few key points: The state’s energy strategy isn’t the consent agreement in court. Buy from other Michigan complete, Snyder said, and must “We signed an agreement in businesses through Pure Michi- be integrated with a state land good faith, and the state of Michi- gan Connect. strategy. gan is executing our part of the Hire locally through Pure “The state of Michigan owns agreement in good faith,” Snyder Michigan Talent Connect. about 4 million acres of land, and said. Fighting, he said, “doesn’t Hire veterans, volunteer for beyond that, I can tell you we own help the situation. Let’s not dwell the talent matching team or invest 4 million acres of land,” he said. and waste time on having people in distressed cities. “That’s not a good answer. We fight about it.” Support the New Internation- should have a strategy as to why Snyder said the state is working al Trade Cross- we own 4 million acres, what it on proposals to incorporate Belle ing bridge be- means, where it’s going and why.” Isle into the state park system — tween Detroit Snyder said he’s also working to with Detroit retaining ownership and Windsor. change state government. After of the island — to improve light- Michigan is taking office, he said, he found that ing, police protection and trans- reinventing it- the state had a lot of great employ- portation. self, with good ees who weren’t managed well. If Belle Isle were to become a first results, but “The biggest victims of bureau- state park, Snyder said, an entry it’s important to cracy are state employees,” Sny- fee could be charged. But Detroi- keep up the der said. “We need to bring the fire ters probably would be exempt for work, Snyder and passion back to recognize that a number of years. Snyder said Thursday government is a customer service Snyder also said he’s open to de- in his keynote address at the De- business.” velopment proposals that would troit Regional Chamber’s Mackinac It’s also important for Detroit to “enhance” the island. Policy Conference. succeed, Snyder said. Nancy Kaffer: (313) 446-0412, Snyder said his budget director Metro Detroiters, he said, “need [email protected]. Twitter: @nan- forecasts state revenue through to be proud to say ‘I live in Detroit,’ cykaffer 2050 and that his administration is working to pay down the state’s debt so money used for debt payments can be reassigned to services. “We’ve made massive tax reform Bring morale up. — the (Michigan Business Tax), the wicked witch is dead,” he said. But About thirty stories. the state is still working to change the personal property tax. “Regulatory reform is ongoing. … We’re getting rid of six regulations for every new regulation we add, while still fulfilling our fiduciary duty,” Snyder said. Commenting about education, the governor said the system needs to be viewed as a continual process Corporate Fleet Services. from birth through adulthood. “We need to get to an integrated Any other Áeet leasing service system,” he said. “When you look at education, it should be any time, would be total vanity. any way, any place, any pace.” Health care is another concern. • Experts since 1963 in managing and À nancing The U.S. Supreme Court is set to automobile, truck, and specialty equipment Á eets rule next month on the Affordable Care Act. throughout the United States and Canada, with “But that’s not what we should international services available through our global be talking about,” Snyder said, business partners. “We should be fundamentally restructuring the health care system, cost, quality and access. … I • CertiÀed by GM, Ford, Chrysler and the import want to emphasize wellness. The manufacturers single biggest saver is wellness.” If people would bring key indica- • All available eet discounts, rebates, and incentives tors of their health into the normal Á provided by the manufacturers are incorporated into Thrills bring every group together. range, get annual physicals, exer- cise and avoid tobacco, health care our nationally competitive rates Your employees will all feel the costs could be cut in half, Snyder exhilarating g-forces. The excitement said. of the water rides. And the powdered The state must also invest in in- • And the “no fees” tagline? We mean it. You get expert sugar of the funnel cakes. The very frastructure — spending about $1 Áeet management for one rate with no hidden fees. things that make a group outing to billion a year on roads would save None. Cedar Point in Sandusky, Ohio unlike money over time, he said. any other one. Visit cedarpoint.com/ Completing this year’s budget group-sales or call 1-800-448-2428 will give the state resources to de- 313-868-5000 :: corporate-Á eet.com vote to safety, the governor said. to get your discounted tickets for “We have four of the top 10 cities your corporate group outing today. on the distressed list. We have eight of the top 100,” he said. “That’s unacceptable.” THRILLS CONNECT Snyder said the system should be recalibrated to collect data and 20120604-NEWS--0013-NAT-CCI-CD_-- 5/31/2012 3:29 PM Page 1

June 4, 2012 CRAIN’S DETROIT BUSINESS Page 13 Grosse Pointe owner of Chicago’s Hard Rock Hotel in hard place on loan

BY ALBY GALLUN that equates to about $35 million, ers were dipping into their own The CRAIN NEWS SERVICE about half the amount of the ma- pockets to avoid defaulting on the $6.9 million turing loan. loan. loan on the The owner of the Hard Rock Hotel “The partners are going to have The Hard Rock is one of a grow- Hard Rock on Michigan Avenue in Chicago is to come up with a slug of cash” to ing number of Chicago-area prop- Hotel on Michigan in danger of “imminent default” pay off the loan, Fink said. erties, including the John Hancock Avenue in on a $69.5 million loan that comes Representatives of Becker and Center, that face challenges refi- due in two months, facing few ap- Chicago, taken Orlando, Fla.-based Hard Rock Inter- nancing five-year loans made at out at the top pealing refinancing options in to- national did not return calls. the peak of the market. of the market day’s more conservative lending The hotel market is improving. J.P. Morgan Chase & Co. originat- in 2007, is market. The Hard Rock Chicago’s net cash ed the Hard Rock loan and then coming due in The loan on the 381-room hotel flow rose to $3.8 million last year, packaged it with other property August and at 230 N. Michigan Ave. has been up from a low of $1.4 million in loans in a commercial mortgage- borrowing is transferred to a so-called special 2009, according to a loan report backed securities offering. A rep- not as easy these days. servicer, a firm hired to oversee from Bloomberg. resentative of the special servicer, and work out troubled loans, ac- Yet the hotel still was not gener- McLean, Va.-based JER Partners, cording to a recent notice from ating enough cash flow to cover did not respond to an emailed re- Fitch Ratings Ltd., the debt-rating $4.4 million in debt service costs quest for comment. agency. last year, suggesting that its own- From Crain’s Chicago Business WIKIPEDIA Though the owner of the hotel, a venture led by Grosse Pointe- based Becker Ventures LLC, has stayed current on monthly loan payments, paying off the mortgage when it matures Aug. 1 could be a major challenge. Becker took out the $69.5 million loan at the top of the market in 2007, when property values were peaking and lenders were especially lax. But the world has changed since the crash of 2008-09. Lenders gener- ally will allow hotel owners to bor- Working Capital row only at a debt yield — the property’s net cash flow divided by the loan amount — of about 11 percent today, said Tom Fink, senior vice president and managing director at Trepp LLC, a New York- based research firm. In the case of the Hard Rock, IN ACTION

NOMINATIONS SOUGHT FOR HEALTH CARE HEROES Crain’s Detroit Business is seeking nominations for Health Care Heroes, a special report on health care professionals that will run in the Sept. 10 issue. The program will honor top-notch medical innovators and patient advocates — the leaders who bring new meaning to the word “dedication” through their efforts to save lives or improve access to care. Winners will be chosen in five categories and honored at a Crain’s event. Growth Capital. Financial Wisdom. Ⅲ Corporate achievement in health care: Honors a company It’s how we help companies succeed beyond their expectations. that has created an innovative health benefits plan or has solved a problem in health care administration. We help businesses access capital by leveraging receivables and inventory Ⅲ Advancements in health care: to create cash ﬂow. Our experienced team understands the challenges of Honors a company or individual responsible for a discovery or for entrepreneurship, so we offer guidance, insight and introductions to the developing a new procedure, device or service that can save people and resources that can make it easier. lives or improve quality of life. Ⅲ Physician: Honors a physician whose performance is considered exemplary. You need capital to grow. We have it. Ⅲ Allied health: Honors an individual from nursing or allied health fields deemed exemplary by patients and peers. Ⅲ Trustee: Honors leadership and distinguished service by a health care trustee. A panel of health care judges will choose the winners. Submit a nomination at crainsdetroit.com/nominate by June 11. Questions? Contact Bill 248.658.1100 HennesseyCap.com Shea, enterprise editor, at (313) 446-1626. 20120604-NEWS--0014-NAT-CCI-CD_-- 5/31/2012 3:28 PM Page 1

Page 14 CRAIN’S DETROIT BUSINESS June 4, 2012

BUSINESS DIARY ACQUISITIONS was selected by Fendt Builders Supply troit, a sales subsidiary, July 1. Web- Inc., Farmington Hills, a manufactur- site: www.polyplastics.com. Spalding DeDecker Associates Inc., er of concrete blocks and landscaping Rochester Hills, a regional civil engi- DTE Energy Co., Detroit, announced equipment, to install an Intel Xeon neering, landscape architectural and plans to build a wind park in Huron surveying firm, acquired Coyle Engi- server, Q backup and disaster-recov- County that will add another 110 neering Inc., San Antonio, Texas. ery software, and to provide managed megawatts to the company’s renew- services. able energy portfolio. CALL FOR NOMINATIONS ALTe Powertrain Technologies, The University of Michigan Medical ONE HU G ND Auburn Hills, and Club Assist, Dande- School, Ann Arbor, will expand and IN R T E A D The Detroit Free Press and Metropoli- nong, Australia, a supplier of mobile, improve its space and technology for R Y B E E tan Affairs Coalition, Detroit, are seek- A car electric and road services to mo- training future physicians with a $55 L R

E S ing nominations for the Shining Light C 100 toring clubs worldwide, announced a million project approved by the board Regional Cooperation Awards to rec- joint development project to study of regents. Also approved: The Univer- ognize people who have made impor- ALTe’s powertrain technology in Club sity of Michigan Health System will tant contributions to regional cooper- Assist’s fleet. expand its hospital capacity for adults ation, progress and understanding in Meridian Health Plan of Michigan Inc., and create Michigan’s first hospital metropolitan Detroit. Nominations Detroit, has been selected by the state for diseases of the nervous system in- deadline is June 29. of Ohio to provide managed Medicaid cluding the brain and spine. health services to beneficiaries CONTRACTS through a contract with the Ohio De- MOVES Eastern Michigan University, Ypsilan- partment of Job and Family Services, Short’s Brewing Co. is moving its ad- ti, and the owners of the Ann Arbor Columbus. ministrative offices and merchandis- Marriott Ypsilanti Hotel signed an Visteon Corp., Van Buren Township, ing warehouse from Elk Rapids to agreement wherein the leadership of sold the Grace Lake Corporate Center 28011 Grand Oaks Court, Wixom. the hotel will assume day-to-day man- property to Sovereign Partners LLC, a agement of the Eagle Crest Corporate privately held real estate investment NEW PRODUCTS Education Center and Banquet Facili- firm. Visteon signed a 15-year lease Fathead LLC, Detroit, a brand of offi- ty and sales and marketing responsi- for 527,000 square feet on the site, cially licensed sports and entertain- bility for the entire 160-acre resort, where its corporate offices and inno- ment graphic products, launched the while the university will focus its at- vation center will continue to be locat- Hunger Games collection. Website: ed. Under the agreement, Sovereign tention on the operation and adminis- www.fathead.com. tration of Eagle Crest Golf Course. Partners will manage the 287-acre property, including all office build- Tschetter & Associates LLC, Clark- NEW PRODUCTS ston, a marketing and public relations ings and a conference facility. agency, was chosen by Michigan Bone Signature Associates, Southfield, has Multi-Bank Securities Inc., South- & Joint Center PLLC, Lake Orion; Med been selected by Pro-Motion Technolo- field, a fixed-income securities bro- Supply Corp. Inc., Troy; Premier Visit- gy Group Inc., to represent its 60,500 ker-dealer, has been approved to un- ing Nurse & Home Health Services square feet of industrial space at 29755 derwrite debt securities for the LLC, Troy; and Premier Hospice LLC, Beck Road, Wixom. Federal National Mortgage Associa- 00 Troy; to provide brand and website de- tion through its Access program. SAVE $100 OFF velopment. EXPANSIONS Website: www.mbssecurities.com. , Farmington Hills, Crittenton Hospital Medical Center, The Gale Group Inc. First Preferred Mortgage Co., Port a publisher of research and reference Rochester Hills, has selected Push- Huron, opened an office at 112 E. Main, resources, announced the availability twentytwo, Pontiac, as its creative and Brighton. Telephone: (810) 900-5190. of Nineteenth Century Collections On- TV production marketing agency. Website: www.firstpreferred.com. line, a multiyear global digitization Qualitech, Bingham Farms, a technol- Polyplastics Co. Ltd., Tokyo, announced and publishing program. Website: ogy integrator and software reseller, the launch of Polyplastics USA Inc., De- www.gale.cengage.com.

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June 4, 2012 CRAIN’S DETROIT BUSINESS Page 15

CALENDAR

TUESDAY door $30; nonmembers preregistration RAIN S TO HONOR S $40, at the door $50. Contact: JUNE 5 C ’ CFO (800) 427-5100; email: info@automa tionalley.com; website: www.automa CyberAwareness Breakfast Confer- AT JUNE 12 CEREMONY tionalley.com. ence Series. 9-10 a.m. Engineering So- Crain’s Detroit Business, in ciety of Detroit. This series will pro- partnership with FEI Co., will host Inforum Emerging Leaders Meet & vide updates to the Michigan Cyber its sixth CFO of Greet Kickoff. 5:30-7:30 p.m. June 12. Initiative for citizens, business and in- the Year awards Inforum Michigan Emerging Leaders dustry. The Henry, Dearborn. $15 per 1:30-9 p.m. June Affinity Group. With Bettye Daly, in- attendee per location, $10 InfraGard dependent real estate professional, or MI-ISAC members. Contact: Leslie 12 at The Inn at Real Estate One. Black Finn Royal Smith, (248) 353-0735, ext. 152; St. John’s, Oak. $10, RSVP by June 10. Contact: email: [email protected]; website: Plymouth Stephanie Squires, (248) 231-3648; www.esd.org. Township. Title sponsor is email: [email protected]; Rehmann LLC. website: www.inforummichigan.org. The Art of Networking: Traditional and Power Networking. 11:30 a.m.-1 p.m. Finalists were featured in the Membership Reception. 5:30-7:30 p.m. Automation Alley. With Charles Gif- May 28 issue of Crain’s and online. June 14. Detroit Regional Chamber. ford, president, Local Business Net- Tickets are $60 for current CDB Infinity and Ovation Yacht Charters, work. Automation Alley headquar- subscribers, $55 for members of Detroit Port Authority — Detroit ters, Troy. Members preregistration groups of 10 or more, and $85 for Riverfront. $15 chamber members; $20, at the door $30; nonmembers pre- nonsubscribers; an $84.50 ticket preregistration required. Contact: registration $40, at the door $50. includes a one-year CDB Lauren Rimmell, (313) 596-0384; email: Contact: (800) 427-5100; email: subscription. [email protected]; web- [email protected]; website: For more information, call (313) site: www.detroitchamber.com. www.automationalley.com. 446-0300, email [email protected], or visit Business Law & Order: Entrepreneur- Detroit Economic Club. 11:30 a.m.-1:30 www.crainsdetroit.com/events. ial Contracts — Writing It Up for Star- p.m. With Mark Dantonio, head foot- tups!, 5-7 p.m. June 18. Ann Arbor ball coach, Michigan State University; Corp. Compuware world headquar- Spark. Spark Central, Ann Arbor. Mark Hollis, athletic director, MSU; ters, Detroit, $45 DEC members; $55 Free. Contact: (734) 761-9317; email: Tom Izzo, men’s basketball head guests of members; $75 nonmembers. [email protected]; web- coach, MSU. Westin Book Cadillac, Contact: (313) 963-8547; email: site: www.annarborusa.org. Detroit. $45 DEC members; $55 guests [email protected]; website: www.ec of members; $75 nonmembers. Con- onclub.org. tact: (313) 963-8547; email: info@ Power Golf — Southeast. Noon-8 p.m. econclub.org; website: www.econ June 18. Inforum. Leveraging the club.org. game of golf is an important tool that professional women should not over- COMING EVENTS look. Pine Lake Country Club, West THURSDAY IP in Product Development. 8-11 a.m. Bloomfield. Foursome member $1,500, June 12. Automation Alley Technolo- nonmember $1,700; individual mem- CATERING JUNE 7 gy Committee. With Azam Khan, ber $275, nonmember $325; golf clinic deputy chief of staff, U.S. Patent and member $175, nonmember $200; din- Detroit Economic Club. 4:30-7 p.m. Trademark Office; and others. Au- ner-only member $125, nonmember With Peter Karmanos Jr., executive tomation Alley headquarters, Troy. $150. Sponsorships available. Contact: “The Pig Roast was a big hit chairman of the board, Compuware Members preregistration $20, at the (877) 633-3500; website: www.inforum michigan.org. and great end to the day. Nothing but smiles from Master Series: Successful Reflective ear to ear. Way beyond our Management. 8 a.m.-noon. June 19. Engineering Society of Detroit. ESD expectations.” headquarters, Southfield. $75 ESD members, $99 nonmembers, $158 at- - Philip Shelton - Tournament Director tend and join ESD at a 50 percent dis- U.S. Amateur Disc Golf Championship count on your first year’s membership, $10 off with a group or multicourse registration. Contact: Catering Food Service Management Leslie Smith, (248) 353-0735, ext. 152; email: [email protected]; website: www.esd.org. Celebrating more than 30 years of

Women’s Empowerment Forum: spectacular events. Lessons Learned on the Way Up the Ladder. 8:30-11 a.m. June 21. Michigan 248.608.0690 Diversity Council, Michigan First Credit Union. With Heather Paquette, office managing partner, Detroit, KPMG LLP; Lisa Webb Sharpe, senior vice president for finance and administration, Lansing Community College; and Denise Yee Grim, executive director, Asian Pacific American Chamber of Commerce. Michigan First Credit Union, Lathrup Village. MIDC members free, nonmembers $25. Contact: Lauren Ayles, (248) 991-6234; email: lauren.ayles@michigandiversitycouncil. org; website: www.michigandiversity council.org.

Crain’s Salute to Entrepreneurs. 7:30 Continuity a.m.-1 p.m. June 26. Crain’s Detroit Trusted for 70 years. We’ll be here for generations. Business. Discover how Pure Michi- gan Business Connect is providing Michigan businesses new ways to buy and sell, raise capital, and connect We work with our clients and their advisors to: with each other. Detroit Golf Club. $50 current CDB subscribers, $45 SBAM Reduce estate and income tax Enhance fixed income members/groups of 10 or more, $75 nonsubscribers, $74.50 CDB subscrip- yields Solve family and business issues Improve tion offer. Contact: (313) 446-0300; web- existing life insurance policies. site: www.crainsdetroit.com/events.

ESD Annual Dinner. 5:30-9:30 p.m. June 27. Engineering Society of Detroit. Featuring the ESD C&D Awards, the ESD Alpha Awards and the ESD Lead- ership Awards. The Fillmore, Detroit. $125 ESD members, $150 nonmembers, table of 10 $1,125. Contact: Leslie BIRMINGHAM, MICHIGAN 248.731.9500 Smith, (248) 353-0735, ext. 152; email: [email protected]; website: WWW.SCHECHTERWEALTH.COM www.esd.org. 20120604-NEWS--0016-NAT-CCI-CD_-- 5/31/2012 3:30 PM Page 1

Page 16 CRAIN’S DETROIT BUSINESS June 4, 2012

Crain’s Job Front Visit www.crainsdetroit.com/jobfront to search for jobs, post a résumé or find talent. Job Front

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June 4, 2012 CRAIN’S DETROIT BUSINESS Page 17 Community Central stockholders sue officials of failed bank

BY TOM HENDERSON nacci and Bobby Hill, and former A footnote at the back of the carrying on its books for future would-be stock sale of $20 million CRAIN’S DETROIT BUSINESS bank officers Ray Colonius and quarterly earnings report told a payments, resulting in a gain of $6 to keep the bank afloat. Lisa Medlock. Colonius was the different story. An accounting million for the quarter. Widlak’s body was found a Community Central Bank Corp. was bank’s CFO until Widlak’s disap- quirk based on the bank reneging Boyle said he will use the timing month later, face down in the wa- shut down by state and federal reg- pearance and then acting presi- on promised interest payments of the announcement in May that ter near a boat launch on Lake St. ulators in April 2011. dent and CEO. Medlock was corpo- was what had turned an operating the bank was suspending interest Clair. He died of a bullet wound to But the fallout continues with rate secretary. loss of $4.8 million into a gain. payments as proof that board di- the head in what was determined the filing of a lawsuit in U.S. Dis- Steven Ribiat, a partner in In February 2007, Community rectors should have known just a by police and the Macomb County trict Court in Detroit on Feb. 9 Birmingham-based Brooks Wilkins Central had issued $18 million in few months earlier that the medical examiner to be a likely seeking damages from the bank’s Sharkey & Turco PLLC, which repre- trust preferred securities, which $2.4 million stock deal was riskier suicide. former directors and officers — sents all of the defendants except were to pay annual interest of 6.7 than anyone was letting on. The current lawsuit is the latest and the estate of deceased Presi- Catenacci, declined comment. “I’m percent and be redeemable by the Instead of collecting interest, the against Widlak’s estate. Last year, dent and CEO going to let my company in 2037. buyers of the stock watched the the estate settled two lawsuits that David Widlak — brief do my talk- On May 14, 2010, the bank sus- bank collapse. Its $476 million in sought more than $500,000 in com- over the private There were facts ing,” he said. pended and deferred interest pay- assets were eventually bought by bined damages connected to his placement of $2.4 “ His brief, which ments, causing the value of the se- Troy-based Talmer Bancorp Inc. work as an attorney before he left million of stock in that were not was filed Friday, curities to plummet. Based on The bank’s demise was acceler- the bank. 2009. asked Judge mark-to-market accounting rules ated by the mysterious disappear- Terms were not disclosed. The suit alleges shared with us. Bernard Friedman to reflect the fallen value of the se- ance of Widlak in September 2010. Tom Henderson: (313) 446-0337, fraud, violations of ” to dismiss the suit. curities, the bank was able to The disappearance came as he [email protected]. Twitter: the Federal Securi- Dan French, Leonard and Co. It claimed that the sharply reduce the amount it was was preparing a presentation for a @tomhenderson2 ties Act of 1933 and Federal Securities the Securities Exchange Act of Act only applies to public offer- 1934, violation of the Michigan ings and that this was a private Uniform Securities Act and breach placement, and that the offering of fiduciary duty. memorandum was clear about the The suit was filed by the Grosse risks involved in investing in the REAL ESTATE Pointe Park law firm of Boyle Bur- bank. dett PC, which was recruited to file “Investors were expressly cau- INDUSTRIAL PROPERTY COMMERCIAL PROPERTIES AUCTIONS the suit by Troy-based Leonard and tioned, in bold print, that ‘contin- Co. Under terms of the offering, ued deterioration of the economy Romulus Warehouse Shopping Center for Sale Leonard had been paid a 6 percent and real estate market in Michi- 6,000 sq. ft - 100% Leased fee to broker the sale of the stock to gan could hurt our business. … 5,750SF-28,750SF 89JFCLK< its clients. Changes in economic conditions 1 Truck Well & 1 Drive-In Door Burton, MI Boyle Burdette represents most or interest rates may negatively af- Per 5,750SF. 8L:K@FE of the individual and institutional fect our earnings, capital and liq- Call 248-821-5522 # investors in the offering, with its uidity,’ ” read the brief, in part, ! clients having bought $1.4 million quoting from the offering memo- "#$% &! of Series B convertible stock in the randum. Mt. Clemens-based bank. The firm “There are so many deficiencies COMMERCIAL PROPERTIES Birdie your way to a life of luxury! does not represent the largest in- with plaintiffs’ complaint that it is NOI $92,664 - National Tenants Fulfill your dreams of owning your own golf course! Green Trees Golf vestor, a dentist named Timothy difficult to know where to begin,” MOBILE HOME PARK -- MONROE COUNTY (22) lots plus single fam rental home/laundry Asking Price: Unpriced Course is a public, 18-hole executive Mayer, who bought $700,000 worth Ribiat wrote. bldg/paved roads. Good overhead lighting. Gross course located 2 miles west of I-75 of stock. Stroh, when asked for a com- $96,829 NET CASH FLOW After expense $70,596 and downtown Gaylord. Green Mayer is the father-in-law of ment the day before Ribiat’s brief prior to debt service. Owner of 32 yrs. retiring. Trees is a Par 60 executive course measuring 3,043 yards. Features a high-profile attorney Norman Ya- was filed, said: “I can’t say any- (State Inspected + everything up to code) $650,000 on L.C. or $550,000 New Mortgage cash out (248) 855-1221 Bob Mattler completely rebuilt clubhouse in 1999 tooma, who said he expects to file a thing about pending litigation, for 734-673-7780 cell or 734-675-8911. www.armadarealestate.com to welcome golfers as they warm second suit in federal court soon which I apologize. Whatever Steve up their swing on the full regulation against the bank’s former direc- Ribiat wants to say, he’ll say.” length driving range. Easily maintain the beauty of the course with a tors and officers. The Series B offering let in- 2,376+/- square foot maintenance Dan French, Leonard’s presi- vestors buy one share of convert- steel building, fully stocked with all dent and CEO, said he and brokers ible preferred stock for $1,000, JOB FRONT the equipment you’ll need to “Drive and Putt” all the way to retirement! at his firm were deceived over the which could be converted to 125 1++231331'441 stock sale by exaggerated claims shares of common stock at any 1(4+125" 16 MANAGEMENT Call Us For Personalized 2*5 ' 6 by bank officials of the bank’s fi- time. Each share of Series B stock Service: (313) 446-6068 nancial health, and that he wanted also included a 10-year warrant Upscale Downtown Restaurant - looking for a Din- FAX: (313) 446-1757 ' (( ) to initiate a suit on behalf of his that allowed holders to purchase ing Room Evening Manager, MUST have 2-5 years ex- E-MAIL: [email protected] ( ) *++ clients. Leonard is not a party to 20 shares of common stock for $5 a perience in restaurants. Must have wine knowledge, people INTERNET: ,--.-/0# ( ) *) ! skills, passion for employees, guest, and restaurants. Must www.crainsdetroit.com/section/classifieds the suit. share. be able to work weekends and holidays. Competitive wages See “The true facts were not made with paid vacation, and benefits. There is also a upward Holders of Series B shares also promotions with in our company. Send Resume along with Crainsdetroit.com/Section/Classifieds known at the time of the offering, were to receive annual dividends references to: [email protected] for more classified advertisements and if the facts had been known, of 5 percent, paid quarterly. participation in the offering would On Jan. 7, 2010, the day the bank POSITIONS AVAILABLE MARKET not have occurred,” said French. announced the private placement, “There were facts that were not its stock opened at $1.47 a share, shared with us.” down from a pre-recession high of PLACE He said Leonard and Co. was not $13.45. REFERRERS: EARN A party to the suit because it didn’t As Community Central was TRAVEL SERVICES suffer damages. “The investors floating its stock sale, it was well HAWKER JET CHARTER for the price of a Citation. were the ones suffered damages.” into a fatal downward spiral. After Flight crew with 14,000 hours and 50 years of “There’s smoke all over this pri- eking out very narrow profits in experience. Call 248-886-8860. 135 # K1EA876K. vate placement and the stock my each of the first three quarters of Based at PTK. clients bought. It’s unreasonable 2008, the bank had a net loss of to think there’s no fire,” said Boyle $2.58 million in the fourth quarter. CASH BONUS FINANCIAL SERVICES Burdett partner Eugene Boyle Jr. It would have only one more “At the time the bank closed on profitable quarter until it went out FORECLOSURE the private placement and took the of business, and the story behind up to $4,000 when a hire is made proceeds, it is almost inconceiv- that profit tells another tale of an BAILOUT able that the bank’s officers and di- offering by the bank that went bad. • Commercial rectors didn’t realize the bank was In July 2010, Community Cen- • Residential in serious trouble. The Titanic had tral trumpeted the good news in a • 7-9% fixed rates already hit the iceberg and was press release that after six consec- • 30-day closing taking on water, and the money utive quarters in the red — and af- • Poor credit OK they took from my clients repre- ter massive losses for a small bank • Foreclosure OK sented a coffee can to bail out the of its size of $15 million in the • Bankruptcy OK • Receivership OK water.” fourth quarter of 2009 and $8.8 mil- Boyle Burdett is suing former lion in the first quarter of 2010 — it From $100,000 - $20,000,000 board members John Stroh III, had returned to profitability, post- |JOB FRONT IVY PRIVATE CAPITAL Dean Petitpren, Gabe Anton, Sal- ing net income of $1.2 million. It WWW.IVYPRIVATECAPITAL.COM vatore Cottone, Celestina Giles, was one of only two local publicly crainsdetroit.com/jobfront Joseph Jeannette, James Mes- traded banks to turn a profit that 800-717-TEAM (8362) tadagh, David Weber, Joseph Cate- quarter. 20120604-NEWS--0018-NAT-CCI-CD_-- 6/1/2012 6:26 PM Page 1

Page 18 CRAIN’S DETROIT BUSINESS June 4, 2012 Plastipak sells minority stake to GS Capital Summit host grows its government biz this technology?’ ” Plymouth-based container maker Plasti- Need for services rises as budgets shrink Tyler Technologies provides e-filing ser- pak Holdings Inc. has sold a minority own- vices for more than 300 government clients ership stake to GS Capital Partners, a group BY CHAD HALCOM in at least 27 U.S. states and two Canadian of funds in the merchant-banking division CRAIN’S DETROIT BUSINESS provinces — including circuit court e-filing of Goldman Sachs Group Inc. The amount of The government services for Wayne and Oakland counties. the transaction was undisclosed. Southfield-based ImageSoft Inc. has seen “ And as local governments become more re- Plastipak and GS Capital Partners this local government services become a steadily procurement official is ceptive to cutting budgets, the Michigan week announced the new investment, expanding share of business in recent years, market is expected to expand. which will give Plastipak new capital for as various agencies need to find efficiency asking, ‘Will my ... costs ImageSoft is bidding on a proposal before “substantial growth opportunities across and adapt their budgets to a shrinking tax the State Court Administrative Office, an its global business platform.” be lower because I bought base. agency of the Michigan Supreme Court, to de- Plastipak, a global maker of rigid plas- The company, which provides process velop a new e-filing platform that could offer tic containers for consumer products, did this technology?’ management IT services in more than 25 online access to several smaller circuit and not disclose how much of a stake GS Capi- U.S. states and five Canadian provinces, is ” Andrew Teed, Tyler Technologies Inc. district courts around the state. The Oak- tal acquired, except to say that the family hosting its fifth Government Summit, and land County Board of Commissioners is ex- of founder and CEO Bill Young will con- first in Southeast Michigan, Wednesday at ImageSoft currently has about 48 munici- pected to vote Thursday on a proposal to au- tinue to hold a majority stake after the ac- Schoolcraft College in Livonia. (Registration pal government agencies as clients in Michi- thorize the county to enter into contracts quisition deal clears regulatory hurdles. is free through www.imagesoftinc.com.) gan, including Washtenaw County, Ann Ar- offering its G2G Cloud Solutions service to The family has owned Plastipak since President Scott Bade said government ser- bor, Novi, Northville, Dearborn, Lansing, other counties. its inception in 1967. The company last vices now account for more than 40 percent and Genesee and Monroe counties. Oakland has 300 fewer full-time county year supplied bottles and pre-form con- of total business, compared with around 30 Public sector demand is growing for soft- employee positions today than it did a few tainers from 29 manufacturing centers for percent in 2008. ImageSoft also has cus- ware services that house records and help years ago amid budget pressures, and its IT more than 450 customers and reported to tomers in the insurance and health care in- control workflow, Bade and other software Crain’s a 2011 revenue of $2.3 billion — up dustries, and Bade said the company has av- providers said, as they help cash-strapped platforms have helped to fill some of the gap more than 15 percent from a year earlier. eraged more than 15 percent annual growth governments get by with fewer people, less in services, said Deputy County Executive “My family and the Plastipak manage- in the past few years, with government storage space and even lower fuel costs to Phil Bertolini, the keynote speaker at the ment team have built this company over slightly outpacing the other two segments. transport records as property values and ImageSoft summit. the past half century by partnering with Revenue was about $15 million last year, state revenue sharing budgets decline. “There’s definitely a savings, and it’s our customers and suppliers,” Young he said. The company expects about 150 peo- “The return on investment today is a far demonstrable based on the budget. We have said in a statement. ple to attend this year’s summit in Livonia, greater focus for county governments today less people in county,” he said. “I don’t like “We look forward to a new partner in compared with around 50 in its inaugural than what we would have seen pre-2008. to say that government’s doing more with the form of GSCP as we execute our strate- year. When they’re determining whether to make less, because we just can’t do everything gic vision for providing the best products “It’s been growing at a pretty good clip this type of buy, they’re looking at head- anymore. It’s doing less with less, but it’s be- and services to our clients and continuing across local governments in recent years,” count savings as well as IT management sav- come a lot more efficient at doing what it to build out our global footprint.” he said. “In our court applications, we can ings,” said Andrew Teed, president of the ap- must without the same human resources.” GS Capital Partners focuses on large get rid of paper files in favor of a computer praisal and tax division of Tyler Technologies About one-third of the speakers at the company acquisitions across a range of system that does e-filing and allows courts Inc. (NYSE: TYL). summit will be public sector customers dis- industries. Goldman Sachs advised GS and the public to store and access file mater- “More and more, the government procure- cussing efficiency needs, Bade said. Capital in the acquisition. ial, and can be set up with specific levels of ment official is asking, ‘Will my ongoing op- Chad Halcom: (313) 446-6796, — Chad Halcom access for judges, attorneys or (the public).” erating costs be lower because I bought into [email protected]. Twitter: @chadhalcom

Third shift: Adding to meet demand ■ From Page 3 cording to IHS. But with fewer “It’s a good problem. The ride up is plants open now and industry WORKING MIDNIGHTS certainly much better than the sales on the rise, a traditional two- ride down that everyone had to ex- Michigan assembly plants with shift schedule is not sufficient for three shifts/crews and the perience.” many hot-selling models, such as products they make: Changes to the UAW’s contracts the Chevrolet Cruze, Ford Focus Ⅲ Ford, Wayne: Focus with the Detroit 3 are one reason and Nissan Altima. Ⅲ Ford, Dearborn: F-series third shifts have become common. And as the market continues to Ⅲ GM, Flint: pickups Instead of continually paying ex- rebound, Robinet and other ana- isting workers for overtime, the Ⅲ GM, Delta Township, west of lysts say three shifts will not be Lansing: Traverse, Enclave, Acadia companies can hire a third shift of enough, either. Automakers soon Assembly plants adding a third workers on the lower entry-level will need to bite the bullet and shift/crew: wage scale. New so-called tier-two build plants to avoid losing sales to Ⅲ Chrysler, Detroit: Grand hires start at about $15 an hour, a rivals. Cherokee, Durango; 1,100 jobs, little more than half the $28 rate “These sorts of shift arrange- November 2012 for veteran employees, who also ments only work for so long,” said Ⅲ GM, Hamtramck: Volt, Malibu, receive more benefits. Sean McAlinden, chief economist Impala; 1,250 jobs, 2013 Flexible assembly lines, which at the Center for Automotive Re- can build several models, also pro- search. “Some big decisions have “We cut capacity to the bone and mote three-shift operation. Lines to be made. We’ve got to put some are enjoying the best prices in 30 capable of building one nameplate buckaroonies down and build ca- years,” McAlinden says. “That re- at a time were rarely needed to run pacity to grow with the market.” ally creates a reluctance to in- more than two shifts. GM is reopening its plant in vest.” Another factor is modern, more Spring Hill, Tenn., this year be- McAlinden says he expects that durable equipment that can run cause three shifts of workers at even with three shifts, GM and continuously for longer periods two plants in Canada cannot build Chrysler will run short on truck and is less susceptible to break- enough Chevrolet Equinox capacity next year and Ford will down. That makes nightly shut- crossovers to satisfy demand. But need more capacity for cars. downs unnecessary at most plants. beyond that, automakers and their GM’s capacity utilization rate, In a variation of the three-shift suppliers are hesitant to break calculated on the standard two- approach, Ford and Chrysler have ground on a multibillion-dollar shift basis, reached 103 percent in negotiated to create what are plant, or even reopen one they the first quarter. In 2009, IHS cal- known as “three crew” schedules, spent time and money shutting culated the industrywide utiliza- in which workers spend 10 hours a down. They fear damaging their tion rate at just 52 percent. day on the job four days a week and now-healthy profit margins if a Ford has conceded that it will their shifts are arranged in a pat- product comes up short of its tar- suffer its first decline in market tern that keeps the plant open six or gets, or ending up with too much share since 2008 because it under- seven days a week. The companies capacity if the economy falters. estimated demand and waited too say that setup is more efficient and Likewise, suppliers are holding long to adjust production. creates time for maintenance work, off on new plants even as their cus- “We’re always monitoring the which was often deferred in three- tomers demand more capacity by situation, and we’ll be addressing shift operations in the past, though running plants 24 hours a day, six it as we progress,” said Erich it can be harder on workers. or seven days a week. Merkle, Ford’s chief sales analyst. From Automotive News 20120604-NEWS--0019-NAT-CCI-CD_-- 6/1/2012 5:48 PM Page 1

June 4, 2012 CRAIN’S DETROIT BUSINESS Page 19 Lee Steel: Technology key to future Your Bank’s ■ From Page 1 Detroit five to one,” Taylor said. troit “has dwindled down to practi- Not Lending? “It started a technological revolu- cally nothing,” said Kenneth tion for Lee Steel. We’ve put our Because we run a Eisenberg, CEO of Dearborn-based money in technology, and it’s kept “ Kenwal Steel Corp. us in business.” very lean operation, “It’s a brutal business,” said Novi-based Lee Steel is about to Eisenberg, whose father, Sol, take the next step. This summer, we’re not burdened founded Kenwal in 1947, the same the company plans to break year Taylor’s father founded Lee. ground for a $26 million plant in with a lot of debt. “It’s a hard way to make a living.” Romulus. When it opens early next ” Kenwal is much larger than Lee year, the company will close its Zack Taylor, Lee Steel Steel, Eisenberg said, adding that Detroit plant at 6400 Varney St. smaller competitors such as Lee near Hamtramck. That facility has Over the years, the company has “survive by going out and finding been sold to another company, weathered lean times, much of it a niche. What he (Taylor) does is which plans to use it for storage, paralleling the fate of the auto in- go after the high-margin cus- Taylor said. dustry. The collapse of the domes- tomers. I don’t care who you talk The Romulus plant on Eureka tic auto industry in 2009 led to an to in the business, he’s got a great Road and I-275 will be four times excess inventory of steel and a reputation.” the size of the Detroit plant and huge drop in prices. Taylor said the company’s annu- will include an environmentally “When you’re carrying $25 mil- al revenues are more than friendly “pickling line” to remove lion in inventory, it’s not hard to $100 million. His two sons, Thomas ours are scale from rolls of steel. Other do the math,” Taylor said. and Scott, recently joined the busi- . plants use hydrochloric acid to re- The auto industry “was our life ness. Call for a free consultation. move scale. The new Lee Steel line, blood,” said Ben Bradshaw, the After years of renting office Loan amounts: $1,000,000.00 and above. the first in Michigan and among company’s vice president of pur- space in Southfield, Taylor began only three in the country, will use chasing. No one can say for sure looking for a building suitable for s Investment Real Estate s Equipment a nontoxic mixture of water and how many steel distributors are in the company’s headquarters. He s Owner Occupied Real Estate s Turnaround Consulting steel grit. Michigan, since they range from found it in Novi, in a vacant build- s Lines of Credit s Loan Modiﬁcations Taylor’s willingness to be small specialty shops to large cor- ing once owned by a defunct com- among the first to adopt new tech- porations, but the consensus is pany that printed lottery tickets. s Accounts Receivable s Bank Workouts nology has kept his company vi- their numbers have declined in re- He called the bank that had fore- able in the highly competitive steel cent years. closed on the printing company, supply business, said Dean Lin- “We’re still way over-saturat- and “they were glad to rid them- ders, vice president of marketing ed,” Bradshaw said. selves of a toxic asset,” Taylor and sales at Red Bud Industries, the While other steel suppliers went said. Illinois firm that built the new ma- out of business, Lee survived. “Be- The building would require ex- chine for Lee’s Wyoming plant and cause we run a very lean opera- tensive renovation to project the will provide the pickling line for tion, we’re not burdened with a lot image he had built for his compa- 800.509.3552 www.eclipsecapitalgroup.com its Romulus plant. of debt,” Taylor said. ny. In 2010, Taylor hired David & 2207 Orchard Lake Road, Sylvan Lake, MI 48320 “In terms of his facilities, they Neither does Lee Steel have a Davis Interior Design of Farmington “Since 1997” are top-notch,” Linders said. Tay- large workforce. Technology has Hills to present a plan with the un- lor “put every bell and whistle he allowed the company to pare its derstanding that the headquarters could on that machine” — the one employment to about 55, Taylor would symbolize the company’s in the Wyoming plant, he said. said, although he expects to add high-tech approach to business “Same with this new acidless pick- about 30 when the Romulus plant and would include no exposed ling system. He saw this as an op- opens. wood. portunity to add significant val- Lee Steel opened its Wyoming It would be a challenge. ue.” plant in 2000 to serve West Michi- “I’ve done a lot of custom jobs, It’s a long way from the small gan’s office furniture and appli- but that one tops them all,” said shop Taylor’s father, Tom Taylor, ance manufacturers, as well as Dominic Maltese, president of D.J. started in Inkster in 1947, naming auto plants. When Electrolux closed Maltese Corp., the Plymouth com- the company for his wife, Lee. its Frigidaire plant in Greenville pany hired to renovate the new “From what I remember him in 2006 and General Motors shut- headquarters, as well as build telling me, he was cutting the tered its Wyoming stamping plant Lee’s Wyoming and Romulus sheets, stacking the steel, keeping in 2008, Lee adapted, just as it did plants. “We had to find the trades- the books — he was doing every- when the office furniture compa- men who could do something like thing,” Zack Taylor said. nies took much of their manufac- that.” By the early 1950s, the company turing overseas. Last August, Lee Steel moved had about 150 employees. In the Although 65 percent of the com- into its new headquarters with its 1960s, Lee Steel began supplying pany’s business still is automo- stainless steel walls, 30-foot sky- the automotive industry and in tive, the new line that began oper- lights, back-lit LED wall panels, Crain’s Detroit Business has two 1972 moved into a larger plant in ating in the Wyoming plant three glass partitions — and not one bit Detroit. months ago allows it to serve of exposed wood. exciting statewide contests for you While still in high school, Zack much smaller customers, Taylor “We’re in the steel business,” Taylor began working in his fa- said. Taylor said. “We wanted an office to brag about your wonderful ther’s business, starting on the fac- “We can get an order this morn- made of steel, and we’ve always employees and your workplace. tory floor. “I grew up in the busi- ing and get it out this afternoon,” been on the cutting edge of tech- ness,” he said. he said. nology. We wanted our office to Enter the competitions today. When his father died of colon Many of his competitors did not reflect that. We’ve had people cancer in 2000, Zack Taylor be- survive the last recession. The come through, and their jaws came president and CEO. steel distribution business in De- drop.” Landmark: Macomb wants biz buyer ■ From Page 3 of Mount Clemens. pand the county building. Deldin said, though his office is The decision to shrink the In 2006, the county agreed to skeptical of another night club. Be- amount of county-owned space lease the building for 10 years to cause of the large windows and lo- came easily, he added, because A&R Macomb LLC, for what would cation, he added, it could make for there is a huge amount of it. become Bank Nightlife. a good office space. Cool Places—DEADLINE June 15. “It wasn’t really difficult to do a Last year, Macomb County It was built in 1961 and was com- Healthiest Employers—DEADLINE August 13. quick assessment of what our fu- sought to evict the club over un- monly called the “Flying Nun” ture needs are,” he said. paid rent and property taxes on its building, after the 1960s television Macomb has owned the 8,000- lease. show, because of its distinctive square-foot property since 2004, The club eventually went under roof. It was designed by architect For details and to nominate your company, go to when it acquired it as part of a and the county began looking for William Kessler and initially three-parcel purchase. Macomb new options. housed Mt. Clemens Federal Sav- crainsdetroit.com/nominate. used the other two parcels to ex- The county is open to offers, ings and Loan. 20120604-NEWS--0020-NAT-CCI-CD_-- 6/1/2012 6:06 PM Page 1

Page 20 CRAIN’S DETROIT BUSINESS June 4, 2012 Brembo: Company rides brakes for growth in U.S. market ■ From Page 1 benefiting from foreign investment 2011 from $667 million in 2010, ac- the Formula One World Champi- we are likely to triple that in the cedes and BMWs of the world.” thanks to slowing emerging mar- cording to Automotive News data. onship Series. next few years,” Abbati Marescotti For Hella, automakers and con- kets, weakness in Europe and rising Martin Fisher, president of Hel- The event was a chance to said. sumers, desire for brand exclusivi- production in the North America. la Corporate, said the North Amer- strengthen working relationships Abbati ty is pushing the market to use U.S. auto sales are poised for the ican market is ripe for expansion with the Detroit 3 and hopefully Marescotti said high-end LED lighting systems as best year since 2007. Analysts are for foreign-owned subsidiaries and build new ones, said Dan Sand- automakers are well, Fisher said. projecting sales to reach between divisions because most weren’t berg, president and CEO of Brem- looking to incor- “OEMs (automakers) are trying 14.3 million and 14.4 million units overleveraged with debt during bo North America. porate higher- to differentiate in styling and tech- this year. In 2007, sales hit 16.1 mil- the downturn like many U.S.- “We innovate in the arena of the end products nology across all segments, even in lion. based companies. top-performing vehicles in the across seg- the compact cars,” Fisher said. “Take a look at the world right “Even through the down years world, and when you can take that ments, and the Gillette said this differentiation now; we’ve got a significant slow- in America (2008-2009), we had a technology and bring it to an event supplier has no is causing the Detroit 3 to look for ing in China and Brazil, and Eu- solid financial situation,” Fisher that is sponsored by one of the intentions of strong brand identity, which is Abbati rope is going down hard,” Gillette said. “We did not over-leverage largest automotive companies creating low- what helped Brembo establish it- Marescotti said. “What’s the hot market? ourselves and capitalized on or- (GM) in the world, it’s a tremen- cost options to self in the U.S. market. We’re (North America) the hot ganic growth, which allowed us to dous opportunity,” Sandberg said. gain access to smaller, cheaper ve- “There are precious few suppli- market right now, and that’s not a reinvest in the market.” Brembo also has strong relation- hicles like the Ford Focus. ers that can establish an identity trend that’s going to stop for at Hella upgraded its Flora, Ill., ships with high-end luxury brands “The request for technology in like Brembo, Gillette said. Brembo least the next three to four years.” electronics plant and is building a like Aston Martin, Bentley, Fer- the automobile market in all the re- benefits from having a strong mo- Brembo generated revenue of lighting plant in Mexico, sched- rari and Porsche. gions is moving upward and across torsports background that gives it $300 million in 2011 and expects that uled to open in 2013. The reputation of providing high- lower segments,” he said. “Five “street credibility” with car enthu- figure to climb with new contracts Brembo has grown its North performance, lightweight brakes years ago we were not waiting to be siasts, like Koni shocks and Holley with the Detroit 3 for its brake sys- American operations to 500 em- systems is helping Brembo secure a large producer in the mid-premier carburetors, he said. tems manufactured in Michigan. In ployees in Plymouth, Homer and more contracts with the Detroit 3, segment, but today, we are.” “Our brand is perceived by all of January, General Motors Co. an- Mexico. The market now accounts said Andrea Abbati Marescotti, Gillette said high-end, more our customers with real value,” nounced it would use Brembo brake for 20 percent of Brembo’s total Brembo’s top executive, in his first niche products are surging in the Abbati Marescotti said. “They systems on its Cadillac ATS and worldwide sales, second only to interview since becoming manag- market. (GM) want to see the Cadillac and XTS out of its Homer plant. the German market. ing director in June 2011. “When you take a look at the Brembo on the brakes, which is co- Brembo also supplies brake sys- Brembo used last week’s Detroit Brembo acquired Hayes products that are doing well, it’s the marketing. We don’t need to invest tems to the Corvette ZR1 and Z06, Chevrolet Belle Isle Grand Prix to Lemmerz’s North American brake performance and luxury parts that much in marketing. Buick Regal GS, Cadillac CTS-V gather its global executives, cus- components division, which in- are growing,” he said. “The market “In many (non-English speak- and Chevy Camaro SS. tomers and racing sponsors for a cluded the Homer plant and anoth- is more and more for the buyer of ing) countries, people think the Plymouth-based lighting and party ahead of the event. er in Mexico, in 2007 for $58 mil- the differentiated product. Brembo English word for brake is Brembo, electronics supplier Hella Corporate Brembo is the sole supplier of lion. The Hayes Lemmerz unit’s not only has the features that are in and we don’t tell them that they Center USA Inc., the U.S. subsidiary brake systems to the Izod IndyCar revenue in 2006 was $120 million. demand by the automakers and rec- are wrong, of course,” he said. of Germany-based Hella KGaA Series and the motorcycle MotoGP “We’ve more than doubled the ognizable by the car nuts, it’s one of Dustin Walsh: (313) 446-6042, Hueck & Co., turned a 60.3 percent Racing Series. It also supplies most sales since the acquisition, and for the few ways the Detroit 3 can at- [email protected]. Twitter: revenue increase to $1.1 billion in teams with braking systems in what we see in our business plan, tract buyers away from the Mer- @dustinpwalsh Bills: Biz questions impact of benefit corporation legislation ■ From Page 3 social and environmental progress natorial signatures, Barnett said. terests of shareholders. with passage of the legislation, and impact. There are no tax bene- Barnett said many young entre- Cascade is a privately held plas- public pressure for them to reorga- fits. preneurs “don’t fall into the old- tic injection molder with plants in nize as benefit corporations, Sen. Mark Jansen, R-Gaines line model where they separate Ohio, North Carolina, Texas and which may not be best suited for Township, introduced parallel leg- their social benefit from their cor- Budapest, Hungary, producing their business, he said. islation in the Senate, SB 359 and porate structure.” components for the automotive, sol- Socially and environmentally SB 360. id waste and recycling, furniture, beneficial activities could be done With less than six months re- material handling and renewable under current law, possibly through maining in the current session, At work in the world energy industries, among others. It nonprofit status, Jessup said. Barnett said she plans to begin Benefit corporation legislation employs about 1,200 and posts New startups like Ann Arbor- championing the bills to make Barnett Kinley would also validate and protect the about $350 million in annual sales. based Wello are watching the bills sure they don’t fail to gain traction longtime business model of compa- Cascade uses its expertise to cre- with interest. like similar legislation she intro- regulatory reform for the Michi- nies like Grand Rapids-based Cas- ate such products as a water filter to Founder Cynthia Koenig estab- duced in 2010. gan chamber. cade Engineering Inc. help provide clean drinking water lished the organization as a non- One example, at better.bcorpo- Thousands of companies like for third-world countries. Its other profit, given its mission to manu- ration.net/company/kinesys, Cascade believe they are redefin- socially and environmentally con- facture and distribute her Conflict of interest? shows a side-by-side comparison ing success in business through scious programs and units include WaterWheel in rural India. The Six states have passed legisla- for suntanning lotion made by cer- the achievement of socially re- the Cascade for the Home division, rolling drum can hold up to 24 gal- tion creating benefit corporations, tified B Corp Kinesys Inc. — a Cali- sponsible goals, said Cascade which makes and distributes envi- lons of water, making the chore of and two others have passed laws fornia-based, largely employee- Chairman and CEO Fred Keller ronmentally oriented home and securing clean water less difficult awaiting final approval, in part owned, environmentally friendly during October testimony on the garden products, and a welfare-to- and opening opportunities for through the efforts of Berwyn, Pa.- company that uses a large number bills before the Michigan Senate career program started in 1999. women in the country to sell wa- based nonprofit B Lab, the leading of local suppliers — next to an un- Reforms, Restructuring and Rein- Cascade in 2010 sought certifica- ter-providing services to others. national proponent for benefit cor- named lotion manufacturer whose venting Committee. tion as a B Corp by B Lab and It’s been a challenge to find a porations. impact on people and the planet “We seek to do far more than spends about $25,000 a year to re- corporate structure that aligns But B Lab has drawn the suspi- are unanswered. simply pick a single charity or en- new it. The certification was a way Wello’s social mission of deliver- cion of the chamber and the Small Barnett says she doesn’t under- vironmental project to burnish for Cascade to validate its belief in ing clean water to a thirsty world Business Association of Michigan. It stand the concerns. Michigan has our image, but rather we seek to tpeople, planet and profit, said di- with its plan for rapid production produces revenue by charging added corporate structures as it saw improve the world we work in,” he rector of marketing Keith Maki. scale-up to achieve its goal of im- companies for certifying them to a need, including the low-profit lim- said. “As more companies adopt pacting 1 million lives in its first its “B Corp” standard — which is ited liability company in 2008, the this form, Michigan can be as- five years of operation, Koenig not a form of corporate organiza- limited liability company in 1993, sured that those having this form Watching with interest said in an email. tion — through an audit that con- nonprofit corporations in 1982 and open the door to an increasing SBAM’s membership is interest- Benefit corporation status “is siders how socially and environ- professional corporations in 1962. number of businesses being ated in the potential legal protec- ideal for a venture like Wello, as it mentally beneficial their business Formal opposition from busi- tracted to Michigan.” tions the legislation would pro- would hold the company account- practices are. Some see that as a ness groups to benefit corpora- Keller told the committee that vide, but “many of our members able to its social mission, while at conflict of interest. tions “is not going to stop young benefit corporation legislation also are engaged in their communities the same time giving us access to And on one of several websites it minds from creating them,” Bar- provides accountability to share- today and would feel like not being the growth capital we’ll need to has launched to promote benefit nett said. holders, including founding entre- a (benefit corporation) would clas- scale,” she said. corporations and its B Corp certifi- In 2010, Maryland became the preneurs like himself, ensuring sify them as a company that does- “The ability to incorporate as a cations, B Lab shows what “in first state to pass benefit corpora- that “the company’s purpose be- n’t care,” said David Jessup, direc- (benefit corporation) would cer- some ways appears innocuous but tion legislation. New Jersey, New comes more than a marketing tool tor of government relations. tainly be an incentive for us to re- (is) distinctly laid out … market- York, Virginia, California and … and that directors are required to “Our members feel they con- main in Michigan.” ing material that says good compa- Hawaii followed. And in May, Illi- consider the impact of their deci- tribute to their communities no Sherri Welch: (313) 446-1694, ny, bad company,” said Tricia Kin- nois and Louisiana passed similar sions on the long-term interests of matter how they’re organized.” [email protected]. Twitter: ley, senior director of tax and legislation that is awaiting guber- society,” not just the short-term in- SBAM’s members could foresee, @sherriwelch 20120604-NEWS--0021-NAT-CCI-CD_-- 6/1/2012 6:01 PM Page 1

June 4, 2012 CRAIN’S DETROIT BUSINESS Page 21 Bridge: Snyder set to bypass Legislature on span www.crainsdetroit.com ■ EDITOR-IN-CHIEF Keith E. Crain From Page 1 PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] than the Legislature. level risks in making investments the constitution the governor EXECUTIVE EDITOR Cindy Goodaker, (313) 446- Mark Butler, a spokesman for BRIDGE COSTS that are intend- might use to authorize the pro- 0460 or [email protected] NITC partner agency Transport ed to improve MANAGING EDITOR Jennette Smith, (313) 446- The cost breakdown of the New ject. 1622 or [email protected] Canada, declined to comment on International Trade Crossing by Michigan econo- “The authority used would be DEPUTY MANAGING EDITOR Daniel Duggan, (313) any specifics. my’s in the fu- tied to what the plan is,” he said. 446-0414 or [email protected] project component, in 2009 U.S. SENIOR EDITOR Bob Allen, (313) 446-0344 or “We’re continuing to work with dollars: ture,” he said. Calley said a project the size of [email protected] Michigan on ways to advance the A prolifera- the New International Trade WEST MICHIGAN EDITOR Matt Gryczan, (616) 916- Ⅲ I-75 interchange: 8158 or [email protected] project,” he said. $385.9 million tion of inter- Crossing requires authorization SENIOR EDITOR Gary Piatek, (313) 446-0357 or It’s unclear which agencies Ⅲ U.S. Customs plaza: local agree- and coordination at multiple lev- [email protected] SENIOR DESIGNER Jeff Johnston, (313) 446-1608 would be signatories with the $413.6 million ments has els of government. or [email protected] strategic fund in an interlocal Ⅲ NITC bridge: $949.1 million ignited some Snyder has made NITC a priori- DATA EDITOR Brianna Reilly, (313) 446-0418, agreement. Likely candidates in- criticism that [email protected] Ⅲ Canadian Customs plaza: Anderson ty since coming out in favor of it WEB EDITOR Gary Anglebrandt, (313) 446-1621, clude any new agency created by $387.6 million they’re being during his inaugural State of the [email protected] the state to oversee the bridge, overused and are a tool to get EDITORIAL SUPPORT Robertta Reiff (313) 446- Ⅲ Windsor Essex Parkway: State speech in January 2011. 0419, YahNica Crawford, (313) 446-0329 along with the Michigan Department $1.4 billion* around the Legislature. The Mack- The public-private partnership NEWSROOM (313) 446-0329, FAX (313) 446- of Transportation or Transport Cost breakdown by agency: inac Center for Public Policy, a Mid- project would be jointly owned by 1687 TIP LINE (313) 446-6766 Canada. Ⅲ Michigan: Zero land-based free-market think some type of board or commission REPORTERS The Michigan Strategic Fund tank, estimated there were about Daniel Duggan, deputy managing editor: Covers Ⅲ Federal Highway composed of Michigan and Canadi- was created in 1984 to promote eco- 1,000 interlocal agreements real estate. (313) 446-0414 or [email protected] Administration: Zero an appointees, who would have Jay Greene, senior reporter: Covers health care, nomic development. An interlocal through 2011, more than 700 of insurance, energy utilities and the environment. Ⅲ General Services oversight of the span’s construc- agreement between it and numer- which have been created in the (313) 446-0325 or [email protected] Administration: $263.6 million tion, including plazas and ramps, Chad Halcom: Covers litigation, higher education, ous other local government agen- past 10 years. non-automotive manufacturing, defense Ⅲ Canada: $2.337 billion** and its operation. A private-sector cies established the quasi-public An online database of interlocal contracting and Oakland and Macomb counties. Ⅲ Private sector partner: concessionaire would build and (313) 446-6796 or [email protected] Michigan Economic Development agreements, based on secretary of Tom Henderson: Covers banking, finance, $949.1 million operate the bridge itself. Corp. in 1999. state filings, shows that there are technology and biotechnology. (313) 446-0337 or Total: $3.536 billion The NITC bridge would link I-75 [email protected] The state appropriations used to such agreements with govern- Nancy Kaffer: Covers commercial real estate, the and Ontario’s Highway 401 be- fund the MEDC go through the * The Windsor-Essex Parkway is entirely a ments or agencies in Wisconsin city of Detroit and Wayne County government. Canadian project and has a separate tween Detroit’s industrial Delray (313) 446-0412 or [email protected] fund. public-private partnership concession. and with the U.S. federal govern- Bill Shea, enterprise editor: Covers media, neighborhood and Windsor’s advertising and marketing, the business of sports, The strategic fund has the au- It previously has been estimated at ment and even the Palace of Brighton Beach area. and transportation. (313) 446-1626 or thority to sell a limited amount of $1.67 billion but was contracted for less. Auburn Hills (for local fire protec- [email protected] ** Includes $550 million of U.S.-side The I-75 highway interchange is Nathan Skid, multimedia editor. Also covers the tax-exempt private activity bonds tion). food industry and entertainment. (313) 446-1654, on behalf of private firms build- costs that Canada has offered to cover. Lt. Gov. Brian predicted to cost $385.9 million, [email protected] Source: MDOT and the U.S. plaza will cost $413.6 Dustin Walsh: Covers the business of law, auto ing projects for public benefit. Calley, who has suppliers and steel. (313) 446-6042 or Such bonds could be some of the acted as Sny- million. The nearly $1 billion [email protected] bridge itself would be financed by Sherri Welch: Covers nonprofits, services, retail financing mechanism a conces- Fund is a logical choice, said der’s top emis- and hospitality. (313) 446-1694 or sionaire would use to build the Patrick Anderson, principal and sary on the the concessionaire, and the re- [email protected] bridge. CEO of East Lansing-based consul- bridge issue, mainder of the $2.1 billion price ADVERTISING A message was left for Michael tancy Anderson Economic Group and said the admin- tag is the Canadian portion of the ADVERTISING DIRECTOR Marla Wise, (313) 446- 6032 or [email protected] Finney, president and chairman of former deputy budget director for istration isn’t project. SALES INQUIRIES: (313) 446-6052; FAX (313) the fund and president and CEO of the state. trying to cir- Canada has offered to cover up 393-0997 the MEDC. “The strategic fund is the entity cumvent the to $550 million of Michigan’s por- SENIOR ACCOUNT EXECUTIVES: Matthew J. Calley tion of the project, and assume any Langan, Tamara Rokowski Using the Michigan Strategic that is empowered to take equity- Legislature but ADVERTISING SALES Christine Galasso, Lori instead is acting within powers it operation deficits. Toll revenue Tournay Liggett, Dale Smolinski already has. would cover the capital and opera- CLASSIFIED SALES (313)-446-0351 EVENTS DIRECTOR Nicole LaPointe “The governor cannot work tional costs, planners said, and EVENTS COORDINATOR Kacey Anderson around the Legislature,” Calley Canada would collect Michigan’s SENIOR PRODUCER FOR DIGITAL/ONLINE A WEEKEND OF BASEBALL. PRODUCTS Pierrette Dagg said. “He can only use the authori- toll share until the $550 million is MARKETING ARTIST Sylvia Kolaski ty granted to him by the Legisla- paid off. SALES SUPPORT Suzanne Janik, YahNica Crawford A LIFETIME OF DREAMS. ture. Over the last 100-plus years, Construction is expected to take AUDIENCE DEVELOPMENT MANAGER 48 to 52 months, backers have Candice Yopp the Legislature has granted all MARKETING COORDINATOR Jenny Griffith kinds of authority to the gover- said. PRODUCTION MANAGER Wendy Kobylarz Detroit Tigers 20I2 nor” in addition to the powers Crain’s reporter Nancy Kaffer PRODUCTION SUPERVISOR Larry Williams granted to the governor in the contributed to this story. CUSTOMER SERVICE Summer Fantasy Camp state constitution. Bill Shea: (313) 446-1626, MAIN NUMBER: Call (877) 824-9374 or write The lieutenant governor would- [email protected]. Twitter: [email protected] n’t say which statute or section of @bill_shea19 SUBSCRIPTIONS $59 one year, $98 two years. at Comerica Park. Out of state, $79 one year, $138 for two years. Outside U.S.A., add $48 per year to out-of-state rate for surface mail. Call (313) 446-0450 or (877) 824-9374. SEPTEMBER 7 – 9, 20I2 SINGLE COPIES: (877) 824-9374 REPRINTS: (800) 290-5460, ext. 125; (717) 505-9701, ext. 125; or lindsay.wilson Ever dreamed of playing for the Tigers? COOL PLACES EXPANDS @theygsgroup.com TO FIND A DATE A STORY WAS PUBLISHED: We can make your dreams come true. Crain’s Cool Places to Work Companies will be invited to (313) 446-0367 or e-mail [email protected] awards returns this year as Cool participate in the surveys. Up to CRAIN’S DETROIT BUSINESS IS PUBLISHED BY Places to Work in Michigan, 400 employees will be surveyed, CRAIN COMMUNICATIONS INC. reflecting the expansion of the depending on company size. CHAIRMAN Keith E. Crain program from covering businesses Honorees will be PRESIDENT Rance Crain in Southeast Michigan to SECRETARY Merrilee Crain notified at the end of TREASURER Mary Kay Crain businesses in the entire August. Executive Vice President/Operations state. William A. Morrow Businesses and Group Vice President/Technology, For the revamped nonprofits can apply. Manufacturing, Circulation program, Crain’s is Robert C. Adams Applicants must have a Vice President/Production & Manufacturing working with Best minimum of 15 Dave Kamis Companies Group of employees working in Chief Information Officer Harrisburg, Pa., to manage Michigan and have been Paul Dalpiaz the program. In addition to Chief Human Resources Officer in business at least one Margee Kaczmarek the employer year, among other Director of Audience Development Operations questionnaire done in the criteria. Michelle Roth past, Best Companies will G.D. Crain Jr. Founder (1885-1973) survey employees of participating Companies pay a fee based on Mrs. G.D. Crain Jr. Chairman (1911-1996) company size to Best Companies EDITORIAL & BUSINESS OFFICES: companies. The combined, 1155 Gratiot Ave., Detroit MI 48207-2732; (313) weighted results of the two will to cover survey costs. Costs range 446-6000 determine who qualifies for Cool from $605 to $890 for online Cable address: TWX 248-221-5122 AUTNEW DET surveying, and $735 to $1,630 for CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 Places designation. is published weekly, except for a special issue the paper surveying. third week of August, and no issue the third week Best Companies supplies all of December by Crain Communications Inc. at participating companies — Crain’s Detroit Business will 1155 Gratiot Ave., Detroit MI 48207-2732. regardless of whether they win feature the recognized companies Periodicals postage paid at Detroit, MI and in the Nov. 5 issue and will additional mailing offices. POSTMASTER: Send recognition — with a feedback report address changes to CRAIN’S DETROIT BUSINESS, For more information or reservations based on employee responses to recognize their success at a Nov. Circulation Department, P.O. Box 07925, Detroit, the 72-question survey. 15 event at Emagine Theatre in MI 48207-9732. GST # 136760444. Printed in Royal Oak. U.S.A. To be considered for Cool Places, Entire contents copyright 2012 by Crain CALL 3I3-47I-2550 Details and samples of the Communications Inc. All rights reserved. companies must register at Reproduction or use of editorial content in any or visit detroittigersfantasycamp.com www.coolplacestoworkmi.com by employee surveys are available at manner without permission is strictly prohibited. June 15. www.coolplacestoworkmi.com. 20120604-NEWS--0022-NAT-CCI-CD_-- 6/1/2012 6:15 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS June 4, 2012 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF MAY 26-JUNE 1

p.m. beginning June 28. The Institute is owned by Studley named Wanted: Smart Greg Miracle, owner of Bloomfield Hills-based Great Lakes Coffee Roasting to national Co.; James Cadariu, who will operate the Institute; and a chamber’s public incentives to cadre of others. Ralph Roberts, the person affairs panel lure app interns and company, file Chap. 11 he U.S. Chamber of Commerce announced Sterling Heights-based here may be an app T the appointment of Home-style in Berkley Ralph Roberts Realty LLC and Rich Studley, president and for that, but there its largest owner, Ralph T might not be an in- The Vinsetta Garage, at CEO of the Roberts, have filed for Chap- tern unless you dangle the 27799 Woodward Ave. in Michigan Berkley, is set to open as a ter 11 bankruptcy. Chamber of COSTAR GROUP right incentives. The company claims $1.52 That’s what Marc Gardner, 5,000-square-foot, 160-seat Commerce, restaurant by Saturday. million in assets and about to the na- president $108,000 in liabilities — DSO reaches deal with banks and CEO of The restaurant is owned tional by KC Crain, publisher of much of it owed to law Troy-based chamber’s Crain’s sister publication firms like Michael J. Smith & North Ameri- Public Af- Autoweek, and Curt Catallo, Associates PC in Utica and holding debt on Fisher center can Bancard fairs Com- owner of the Clarkston Union Jaffe, Raitt, Heuer & Weiss PC mittee. Inc., discov- BY SHERRI WELCH and Union Woodshop. in Southfield. Roberts him- Studley The com- ered when CRAIN’S DETROIT BUSINESS It will feature home-style self claims $1.8 million in mittee is the primary poli- he started cuisine like gourmet burg- personal assets and more cy-originating body for the The Detroit Symphony Orchestra has reached a deal to recruit ers and fries, $9; and Catal- than $73 million liabilities national chamber in public with the five-bank syndicate that held $54 million in interns for lo’s signature macaroni and in a separate filing May 25. Gardner affairs and the national po- debt on the Max M. Fisher Music Center. the credit cheese. His attorney, Hannah Mc- card payment processor’s litical program. Members The DSO did not release terms of the deal, citing a Catallo’s wife, Ann Steven- Collum of Gold, Lange & Ma- of the committee determine PayAnywhere LLC, which al- son, did most of the design confidentiality agreement with the banks. joros PC, Southfield, said the the chamber’s involvement lows off-site sellers to work, and head chef Aaron The agreement “is a total settlement of all the oblig- remaining investors are in federal elections and rep- process credit card sales on Cozadd created the menu. ations with respect to the bank group,” said DSO Trea- owed closer to $6.5 million. resent the business com- their smartphones. The owners left details surer and trustee Arthur Weiss, who led negotiations The company doesn’t plan munity’s interest in the Eager to get some interns from Vinsetta’s garage days with the banks over the past two to three years and is to liquidate, Roberts said. “It candidate endorsement for summer, Gardner re- intact, including a yellow- a partner with Southfield-based Jaffe Raitt Heuer & was like I had 10 battles go- process. cruited at the University of ing, hand-sketched picture ing on for a while. I was able Weiss PC. Michigan, thinking its app from MTV’s “Beavis and to get nine of them worked The syndicate includes North Carolina-based Bank development students Butt-head” with Beavis in out, and one last thing could- COMPANY NEWS of America, Dallas-based Comerica Bank, New York would jump at an offer of mid-head bang. n’t come together.” City-based J.P. Morgan Chase & Co., Pittsburgh-based $1,000 a week for 10 weeks. At issue are claims Ann Arbor-based Kay- PNC Bank and Providence, R.I.-based Charter One Bank. Uh, no. Travel was a against Roberts’ previous don Corp. said it has entered Certain funders would not entertain a funding re- problem, for one thing. It Not your ordinary coffee company, Ralph Roberts Real into a definitive agreement quest from the DSO until they knew it had resolved turned out to be hard to get Another coffee shop is Estate Inc., which would buy to purchase all outstanding differences with the bank group, said Anne Parsons, the students to drive to Troy to opening in Midtown, but distressed homes using shares of Fabreeka Group DSO’s president and CEO. The DSO carries $16.2 million in debt tied to Orches- be interviewed. So Gardner this one is different. bridge loans at high inter- Holdings Inc. in Stoughton, Mass., a maker of shock tra Place that was financed separately from the debt on began fetching them in The Institute of Advanced est rates and later refinance and vibration control pads the Max and is on pace to be paid off by 2022. Metro Cars. Drinking, at Woodward Av- with more traditional lend- that reported revenue of The orchestra has budgeted for a $3 million deficit Then he had trouble get- enue and Alexandrine ing when they became mar- $27 million in 2011. for fiscal 2012, which ends Aug. 31. ting them to accept jobs be- Street, will sell natural ketable, McCollum said. A123 Systems Inc. ex- cause he was getting outbid wines and beers from lam- Roberts said some in- pects to continue “signifi- committee version of the question. McCotter, R-Livo- by Silicon Valley firms. bics to lagers, plus coffees vestors in that business be- cant net losses and nega- state’s 2012-13 budget bill nia, is planning a write-in “I’m in Troy trying to from around the world. gan making claims while he tive operating cash flows for the 28 institutions. The campaign. compete against the Golden Most of the taps will be re- was facing a federal indict- over the next several quar- House was expected to pass A deputy Detroit fire Gate Bridge,” he says. “It’s served for local beers includ- ment alleging bribes to ters,” the company said in the bill Friday, but the Sen- commissioner has lost his amazing how flexible you ing Bell’s Brewery, Founder’s then-Macomb Prosecutor a filing with the U.S. Securi- ate won’t return until Tues- job after cursing at a televi- have to be to compete.” Brewing Co. and Jolly Pumpkin Carl Marlinga. Both were lat- ties and Exchange Commis- day. So he upped the ante Artisan Ales. It will also sell er exonerated. sion reporter and swatting sion. The Waltham, Mass.- Bizdom U is accepting again. His director of hu- fresh pastries from Fern- He said he then entered a microphone from his applications until midnight man relations, Danielle dale’s Pinwheel Bakery. into a settlement in 2007 to based lithium-ion battery hand, the Detroit News re- June 15 for its summer Crane, found an apartment The 2,200-square-foot repay over time, which he maker, with plants in Livo- ported. The dismissal of business accelerator ses- in Troy to lease and offered space seats 70 inside and an- said became unsustainable nia and Romulus, is replac- Fred Wheeler — the fourth sion that funds aspiring en- free lodging, too. Two in- other 30 on the patio. Hours after the housing market ing defective battery mod- firing of a top public safety trepreneurs and provides terns are now living there. will be from 7 a.m. to 11 collapsed in 2008. ules and packs at a cost of official during Mayor Dave them work space and busi- $51.6 million and taking an Bing’s administration — ness. Details: bizdom.com. inventory charge of $15.2 came after a testy exchange After 20 seasons with million, it said. between Wheeler and WJBK- Greektown Casino-Hotel the Detroit Red Wings, star TV 2 reporter Charlie LeDuff. obtained more bank financ- defenseman Nicklas Part of the Lodge Free- ing and is moving forward Lidstrom, 42, has decided to way and an adjacent neigh- with a $28.6 million project retire. He said he knew it BEST FROM THE BLOGS borhood were under sever- that includes a parking was time to end when he al feet of water Thursday READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS garage and new upscale started to work out recent- after a water main break restaurant, AP reported. ly. “My drive and motiva- near Fenkell and Petoskey, The kids are all right (mostly) Meeting new mpg demands tion are not where they to AP reported. It was not im- need to be to play at this mediately known what This was my first Most Americans OTHER NEWS level,” he said. time“ experiencing the see“ turbocharging as a Starting from an appli- Michigan Attorney caused the break. Movement Electronic performance part, but cant pool of more than 900, General Bill Schuette said Eastern Michigan Univer- Music Festival. Yes, I it’s quickly becoming a the Challenge Detroit compe- his criminal division will sity is offering its employ- said ‘experiencing,’ not tool for fuel tition has chosen 17 women investigate allegations of ees who purchase a home covering. economy. and 13 men to live and possible fraud related to in Ypsilanti forgivable ” ” work in the city for a year nominating petitions filed loans of $7,500 under a new beginning in August. in U.S. Rep. Thaddeus McCot- “LiveYpsi” program. The Michigan’s communi- ter’s 2012 candidacy for the program will be funded by ty colleges will see a collec- 11th District. The Bureau of EMU, Washtenaw County Reporter Nathan Skid’s Detroit-area restaurant blog Reporter Dustin Walsh’s blog on auto suppliers, steel, tive funding increase of 3.6 Elections said only about 13 and the DTE Energy Founda- can be found at www.crainsdetroit.com/skid higher ed and Livingston and Washtenaw counties can percent, or $10.25 million, percent of the signatures tion, as well as possibly oth- be found at www.crainsdetroit.com/walsh under a Senate conference turned in were beyond er partners. DBpageAD.qxp 5/4/2012 9:19 AM Page 1

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Activation/upgrade fee/line: Up to $35. IMPORTANT CONSUMER INFORMATION: Subject to Cust. Agmt, Calling Plan, rebate form & credit approval. Up to $175 ($350 for advanced devices) early termination fee/line & add’l charges apply to device capabilities. Offers & coverage, varying by svc, not available everywhere; see vzw.com. Limited-time offer. Restocking fee may apply. Rebate debit card takes up to 6 weeks & expires in 12 months. While supplies last. LTE is a trademark of ETSI. MiFi is a trademark of Novatel Wireless, Inc. DROID is a trademark of Lucasfilm Ltd. and its related companies. Used under license. 4G LTE is available in more than 200 cities in the U.S. © 2012 Verizon Wireless. E9113 DBpageAD.qxp 5/25/2012 9:12 AM Page 1