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Readers first for 30 Years With football Detroit’s boom safety under in home sale examination, prices isn’t CRAIN’S supplier seeks being felt in all to make impact neighborhoods DETROIT BUSINESS PAGE 3 PAGE 3 AUGUST 24-30, 2015 Online state games spark feud over funds Overtime: Nervous ticks Gun Lake revenue-sharing dispute exposes MEDC funding risk How overtime is paid and employees are classified

By Lindsay VanHulle Budget uncertainty — already top topics in HR departments — are only Crain’s Detroit Business/ Bridge Magazine Attorneys who specialize in tribal law say there’s going to get more involved thanks to two directives ANSING — A dispute between an American no precedent to determine whether states or tribes Indian tribe and the state over online lottery are right in their interpretation of how online from the feds. Learn what it might mean for your Lgames has put a 21st-century twist a lotteries influence a key provision of gaming business in this week’s special report on decades-old debate over how much casino revenue compacts that offers tribes exclusivity. tribes should share with the state. In practice, that means allowing tribes to be the employment law, Page 9 How it’s resolved will have financial consequences sole casino operator in a specified geographic area. for Michigan, which has depended on tribal dollars That exclusivity is provided in exchange for paying a to fund almost $60 million of statewide economic portion of electronic gaming revenue to the state. development efforts annually. At stake is $7 million up to $60 million in funding What’s murky in making financial projections is toward state economic development efforts, whether the state can preserve revenue-sharing depending on whether other tribes follow suit to the agreements with tribes in the long term; some tribes protest initiated by the Gun Lake Tribe. Gun Lake Tax collection plan believe the expansion of Internet lotteries negates SEE MEDC, PAGE 18 their obligation to share their gaming proceeds. And one Michigan tribe has already discontinued payments in riles outside cities protest. Some blame Detroit-centric legislation on politics Michigan has By Marti Benedetti and cluded,” said Joseph Sobota, Pontiac Dustin Walsh city administrator. “We want to be al- depended on Crain’s Detroit Business lowed to collect city income taxes tribal dollars to A new bill in Lansing from people who live in would solve part of the an- Pontiac but work in another fund almost nual collections conun- community. drum for the city of Detroit “I can’t understand why $60 million by enforcing a mandate on other local communities of economic suburban employers that — similar to Detroit in they collect city income terms of financial chal- development taxes from workers who lenges — would not be in- efforts live in Detroit. cluded in the legislation.” But in an unexpected George Heartwell: The Republican-led annually twist, the legislation that re- Grand Rapids House Tax Policy Commit- ceived a nod from a House mayor “flummoxed” tee in Lansing on Wednes- tax committee last week that bill would day approved the bill that would require suburban was Detroit-centric. That’s collect taxes for employers to withhold De- in contrast to an anticipat- Detroit but not troit city income taxes ed statewide plan that other cities. from residents’ paychecks. would have required income tax Grand Rapids Mayor George collections and distribution to all 22 Heartwell said Friday he was “flum- cities in Michigan that levy such a moxed” that the other 21 commu- tax. “We are disappointed not to be in- SEE INCOME TAX, PAGE 16 LISA SAWYER/CDB

© Entire contents copyright 2015 by Crain Communications Inc. All rights reserved. crainsdetroit.com Vol. 31 No 34 $2 a copy. $59 a year. Private FREE Webinar Tuesday, Sept. 15 • Noon-1 p.m. Exchanges To register, go to crainsdetroit.com/webinars Explained Presented by Powered by NEWSPAPER 20150824-NEWS--0002-NAT-CCI-CD_-- 8/21/2015 5:05 PM Page 1

2 CRAIN’S DETROIT BUSINESS // AUGUST 24, 2015

ucts for sale were used or pre-owned. Peter Bade said Flint will file an ap- MICHIGAN Madison Seating is not an authorized peal and seek a stay in the order. INSIDE retailer of Herman Miller products Ⅲ Kellogg Community College in THIS ISSUE and so is unable to sell new products. Battle Creek plans a $2.75 million BANKRUPTCIES ...... 5 CALENDAR ...... 13 Herman Miller signed a consent expansion to its Regional Manufac- CLASSIFIED ADS ...... 15 turing Technology Center agreement in 2005 with Luxury , MiBiz re- DEALS & DETAILS ...... 13 Chair.com, Madison Seating’s pre- ported. Work is projected to be OPINION ...... 6 BRIEFS decessor, that prohibited selling completed in July 2016. OTHER VOICES ...... 7 used Herman Miller products Ⅲ East Lansing-based Medical PEOPLE ...... 14 Cooley Law School reports state officials there to investigate without identifying them as being Advantage Group, a provider of RUMBLINGS ...... 19 sharp drop in enrollment whether the Walker-based retailer used. health care consulting services for WEEK ON THE WEB ...... 19 violated a Depression-era law that physicians, has acquired Grand Enrollment at the Western Michi- keeps products from being sold MICH-CELLANEOUS Rapids-based Health Care Manage- gan University Thomas M. Cooley Law below cost, MLive.com reported. ment, MiBiz reported. Terms were COMPANY INDEX: School dropped to 1,880 students in According to documents provided Ⅲ In a ranking of the best Minor not disclosed. Medical Advantage SEE PAGE 17 the past academic school year from under the Freedom of Information League Markets by Street and serves about 2,000 physician about 4,000 in 2010. According to Act, products reported to be priced Smith’s Sports Business Daily, Grand clients and is a wholly owned sub- the American Bar Association, law too low ranged from 28-cent-a- Rapids ranks No. 10, thanks to the sidiary of The Doctors Co., a ty Shores Bank and repay a loan school enrollment has declined by pound bananas to $1.99 for a gallon West Michigan Whitecaps in , provider of physician medical mal- from the Muskegon Community Foun- 17.5 percent since 2010. of milk. The alleged violation comes Grand Rapids Griffins in hockey and practice insurance. dation. Alfred Brophy, a professor at the as Meijer is investing $750 million to Grand Rapids Drive in . Ⅲ The board of trustees of Mus- Ⅲ Officials with Portland, Ore.- University of North Carolina School of expand into Wisconsin. Grand Rapids has risen more than kegon Community College approved based Alpha Media recently entered Law, told Michigan Radio that law The law, which has been in effect 150 spots in the rankings since 2011. the acquisition of the Muskegon into a definitive agreement to pur- schools have been seeing enroll- since 1939, was intended to protect The results were ranked based on YMCA building for a new Health chase WSGW and other radio sta- ments decline, but it’s more dramatic smaller companies from bigger com- tenure, attendance rank and eco- and Wellness facility at a cost of tions in Saginaw County from Digity for Cooley because it’s a low-ranking petitors trying to drive them out of nomic rank. Other Michigan cities: $1.17 million, MiBiz reported. As a LLC, MLive.com reported. Digity- school. “As people are deciding not to the market and creating a monopoly. Kalamazoo, 68th; Lansing, 79th; part of the deal, the college will owned stations in the Saginaw area go to law school, schools that are bet- Midland, 92nd; Traverse City, 143th; pay off the YMCA’s outstanding include WCEN-FM, WGER-FM, WSGW- ter ranked are taking students that Herman Miller: Retailer sells and Port Huron, 194th. debt to Muskegon-based Communi- AM, WSGW-FM and WTLZ-FM. Ⅲ used to go to Cooley,” Brophy said. used stuff but doesn’t say so Ⅲ Judge Archie Hayman of Gene- However, he said, enrollment is see County Circuit Court signed an CORRECTION starting to stabilize. Zeeland-based Herman Miller Inc. order that would cut water rates in Ⅲ United Shore Financial Services LLC should have been included in The law school has three cam- filed legal action against New York Flint by 35 percent and stop service Crain’s Fast 50 list, which published Aug. 10. The company was inadver- puses in Michigan. Last year, Cooley City-based Madison Seating LLC, disconnections for people with un- tently omitted; its combined revenue growth ranking of 41 would have shut down its Ann Arbor campus. claiming the retailer made unau- paid bills, The Flint Journal report- put it at No. 3. Its revenue rose from $90.9 million in 2011 to $355.6 mil- thorized use of Herman Miller ed. Hayman said the 2011 increase lion in 2014. A corrected version of the list is at crainsdetroit.com/lists, and Wis.officials investigate trademarks in selling used office was unlawful because it needed to a corrected company profile is at crainsdetroit.com/awards/fast_50/2015. Meijer for (no joke) low prices furniture, MiBiz reported. be phased in, not immediately en- Ⅲ The name of the winner and company in the Advancements in The action stems from Madison forced. City officials have said Hay- Health Care category of the Health Care Heroes on Aug. 17 should have Meijer Inc.’s recent opening of two Seating’s apparent failure to clearly in- man’s order could lead to bank- been Don Powell of American Institute for Preventive Medicine. stores in Wisconsin has prompted dicate that the Herman Miller prod- ruptcy for Flint, and city attorney

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CRAIN’S DETROIT BUSINESS // AUGUST 24, 2015 3 Index shows gap in Detroit home prices Some areas in city nearly double, others tumble

By Kirk Pinho [email protected] LISA SAWYER/CDB Travel along the Woodward corri- dor and along the Detroit riverfront, and it’s easy to see the infusion of hundreds of millions of dollars in economic development. start: Auto supplier Not as easily visually trackable in those two areas are the large in- creases in average home sale prices, driven in part by new development and renewed interest from in- Higher home sale prices around Woodward seeks new play in sports vestors, during the past 10 years. and Jefferson avenues have helped nearby But while average home sale neighborhoods such as Corktown. But prices have nearly doubled on and areas such as the west and southwest Oakwood Group designs energy-absorbing tech for NFL around Woodward Avenue stretch- sides of Detroit have not benefited. ing from Jefferson Avenue north to for $65,600 in 2006 but just $47,500 By Dustin Walsh application on its head. In this case, it’s Eight Mile Road — and have in- [email protected] turning the technology application to this year, a 27.6 percent drop. creased nearly two-thirds near the Weighing down the average home thin piece of engineered plastic protecting athlete’s heads — and more. east Detroit riverfront — large can be the difference between life This month, the supplier turned over its sale price are sales on the city’s west, pockets of the city have seen signifi- northeast and southwest sides, A and death. research study on how its core technology can cant declines in home sale values The Oakwood Group National Football League where sale prices have fallen 46.3, For the past 15 years, prevent injuries in the . during the same period. has been supplying engineered At stake is a $1 million development contract 56.8 and 75.3 percent, respectively. And there is this sobering statis- In contrast, homes and condos in thermoplastic components for doors and with America’s favorite professional sports tic: The average home sale price has headliners. The parts are designed to league. and around Woodward are selling for fallen nearly 28 percent across the reduce the energy impact caused during a J.B.Audi: Seeks Oakwood’s plan is to reduce its reliance on an average of $137,300 so far this year, city since 2006. car crash. The Dearborn-based company’s revenue beyond the automotive industry from 95 percent of its up 95 percent from $70,400 in 2006. Why the disparity? It all has to do patented safety product distributes the auto industry. projected $80 million in revenue this year to The east riverfront area’s sale prices on with hyper-local economics. energy from the impact across the less than 75 percent by 2018, said J.B. Audi, average have increased from $76,900 According to an analysis of 10 component — reducing violence in the cockpit. vice president and third-generation owner of the 70- to $126,500, or 64.5 percent. years of data from Farmington Oakwood is hoping the same energy-absorbing year-old family business. “It’s in line with what one would Hills-based Realcomp Ltd. II by the technology used by nearly every major automaker “Four years ago, coming out of the recession, we expect to happen,” said Paul Traub, Detroit branch of the Federal Reserve can absorb the impacts of another auto industry decided to draw a line in the sand and make a signifi- the senior business analyst who Bank of Chicago, citywide, the aver- downturn. Sometimes, diversification can come in age home and condominium sold SEE INDEX, PAGE 16 the form of turning a traditional technology SEE FOOTBALL, PAGE 17 Molina eyes growth in revenue,members with HealthPlus deal

By Jay Greene grow to 352,000 members in Michigan. In May in a demonstration program to in- which historically is a sicker patient [email protected] 2014, Molina recorded $1.06 billion in rev- tegrate care of 13,000 Medicaid and group. “The new program is more care Seeing a perfect opportunity for enue, earning $26.7 million in net income. Medicare beneficiaries in Southeast coordination, more member touches growth, Molina Healthcare of Michigan, the Molina still remains far behind in Michigan and other parts of Michigan. and long-term care and support,” she state’s second-largest Medicaid HMO, is membership to Detroit-based Meridian Adding HealthPlus “was an opportuni- said. expected to add $300 million in annual Health Plan of Michigan, which also has ty to serve the Medicaid population and Flint-based HealthPlus, meanwhile, is revenue as it absorbs the Medicaid busi- been experiencing double-digit growth expand that into Genesee County, Sagi- re-forming this year into a “flatter and ness of financially troubled HealthPlus of and now stands at 420,000 Medicaid naw and the bay area,” said Christine Sur- leaner organization,” said incoming Michigan in a deal expected to close Sept. 1. members. dock, Molina’s COO in its Troy office. CEO Mike Genord, M.D., in an interview Christine Surdock: By adding 96,000 members from But Molina, a for-profit subsidiary of Surdock said Molina’s experience in with Crain’s last week. Adding HealthPlus HealthPlus’ Medicaid and MIChild busi- Long Beach, Calif.-based Molina Health- Medicare’s special needs plan will help it an opportunity to ness, Troy-based Molina is projected to care Inc., also began participating this manage the dual-eligible population, SEE MOLINA, PAGE 16 expand.

MUST READS OF THE WEEK Incentives: The cost of good intentions The trail to better health In this week’s Looking Back feature commemorating Crain’s Thinking it also can improve people’s 30th anniversary, we at how tax incentives have evolved health outside the walls of its hospitals, to encourage projects such as expansion of the GM Tech St. Joseph Mercy Health System has Center (right), with help from the city of Warren. But the boosted its budget for improvement incentive doesn’t always live up to its billing, Page 4 projects such as bicycling trails, Page 12 20150824-NEWS--0004-NAT-CCI-CD_-- 8/21/2015 5:05 PM Page 1

4 CRAIN’S DETROIT BUSINESS // AUGUST 24, 2015 Municipalities learn tough lessons on tax incentives

By Lindsay VanHulle ways pan out. LOOKING BACK: According to a Crain’s article from Aug. 26, 1985, cities were more likely to Crain’s Detroit Business/ Bridge Magazine Thirty years ago, cities in Michi- offer business tax incentives in Michigan than anywhere else in the country. Since then, some LANSING — Tax incentives are gan were more likely to offer busi- More at the double-edged sword of eco- ness tax incentives than elsewhere municipalities have learned that such strategies don’t always succeed. nomic development. in the U.S., according to a story in crainsdetroit.com/30 Michigan cities have become the Aug. 26, 1985, edition of Crain’s. more flexible with companies when That was based on a survey of more ment or machinery. One of the most commonly used which offered tax breaks to produc- awarding tax incentives but face than 800 mayors in cities with at And while the state still issues is the industrial facilities exemp- tion companies that worked in the greater scrutiny and accountability least 30,000 residents by New York- regular state-led incentives and tion, allowed through Michigan’s state. over these programs than ever be- based Touche Ross & Co., an ac- grants, the pot of money available Public Act 198 of 1974. It can reduce “Every community in Michi- fore. counting and consulting firm that each year is much smaller, and sev- property taxes on new buildings by gan is doing everything they can Those are two of the big merged with Deloitte LLP in the late eral incentive programs were elimi- half for up to 12 years. to bring jobs in and using whatev- changes in the municipal tax in- 1980s. nated, including brownfield rede- These types of incentive can off- er tools that are available,” said centive during the past few These days, local and state gov- velopment credits. set the higher cost of relocating, Chris Hackbarth, state affairs di- decades, some veteran industry ernments continue to put together Snyder spokesman Dave Murray especially if all other factors are rector for the Michigan Municipal professionals say. incentive packages to lure jobs and said the governor believes state equal — workforce, utilities and League. Michigan’s reputation for being investment. But state programs policymakers should focus on tal- property costs among them, said “Unfortunately, the tools are welcoming to business has have received a reboot during Gov. ent and workforce development, Linda Bonelli, a partner with De- more limited today than they were changed a lot in 30 years; the state’s Rick Snyder’s administration — and rather than incentives, as a way to loitte’s U.S. incentives practice in 30 years ago, and what they’ve got tax structure is now on par with the state’s business tax structure attract business to Michigan. Sny- Chicago. to play with is more limited because competitor states. And in some was revamped in 2011. Beginning in der has not taken a position on In Livonia, McLaren Performance their tax base and their revenue local communities, local officials 2014, the state also phased out the local incentives, Murray said, in- Technologies Inc., a division of Cana- streams have shrunk.” have learned the hard way that in- taxes corporations pay on personal stead choosing to leave decisions dian auto supplier Linamar Inc., is Ill-fated bonds tentions with incentives don’t al- property purchases such as equip- to local leaders. consolidating its Livonia engineer- Reputation for breaks ing and Southfield sales facilities But the offering of financial in- into one building on Eight Mile centives carries inherent risk. Locally, some Detroit-area mu- Road, said Mark Taormina, the city’s Van Buren Township sued its nicipal leaders laud incentives as a planning and economic develop- largest corporate resident, Visteon way to tip the scale in their favor ment director. Corp., in May after the municipality when companies are considering McLaren, which supplies engine found it would fall $36.4 million where to build facilities. They say testing services and develops drive- short on bond payments by 2018 the long-term benefit to a city’s tax line systems, had considered mov- that were issued to build Visteon’s rolls outweighs ing to Windsor, Ontario, according 263-acre campus in 2004. the immediate to the Michigan Economic Develop- In exchange for the bonds, Vis- loss of new rev- ment Corp. It will spend $22 million teon agreed to spend $270 million enue from slash- on the project and create at least 75 toward the campus, but as proper- ing a company’s jobs, the state said. ty values plummeted throughout property taxes, Livonia offered McLaren an in- the Great Recession, Van Buren often in half. dustrial facilities credit on $16 mil- Township was left holding the bag “Frankly, if lion of real property investment that as tax revenue dropped lower than we don’t give will save the company about the bond payments. On its end, Jim Fouts: If we inducements, $200,000 a year in total taxes, Visteon says the wording of the don’t give induce- there will be an- Taormina said. The city still will take contract allows it to pass on help- ments, others will. other city in in about $56,000 a year in new tax ing the township meet the bond some other state revenue for the 12-year duration of payments. or area that will,” Warren Mayor Jim the incentive. The shortfall has the potential to Fouts said. “We don’t give them out The project is now under con- bankrupt the community. willy-nilly. The most important struction on Eight Mile at Hubbard Allen Park also lost out in a bond thing is a commitment to jobs.” Street. incentive plan for an upstart movie In 1985, nearly nine in 10 Michi- Adding value studio in the city. Allen Park issued gan mayors who responded to the $28.3 million in limited tax bonds in Touche Ross survey said they of- City administrators say their November 2009 for the project and fered tax credits to spur small busi- cities benefit financially even with another $2.7 million of general obli- nesses in their cities. Nationally, just smaller tax revenue because the gation limited tax bonds in June 43 percent of mayors did. new construction ultimately adds 2010 toward the build-out of Unity Seven in 10 of the state’s mayors more value to the tax rolls during Studios. also believed Michigan needed to the lifetime of the incentive. Bond payments were to be cov- overhaul its tax structure to help Fouts said he estimates the city of ered by rental fees for the studio, business. Warren will take in an estimated $3 which the city owned, but the de- A comparable survey today isn’t million to $6 million per year when velopment never fully material- Local sporting available. Deloitte doesn’t know its largest taxpayer, General Motors ized and the city was stuck with when the last such poll was taken. Co., invests $1 billion to upgrade its $2.6 million in annual bond pay- GROWING: goods company But anecdotally, “Michigan is still Warren Technical Center with new ments. viewed as a favorable place to do design studios and an information- Case studies on incentive pack- with $250,000 in business,” said Greg Ripley, a senior technology hub. ages gone awry and more attention manager with Deloitte Tax LLP who That would be about half of the paid to ROI have pushed the pen- A/R fi nancing is based in Detroit. “Most of the tax revenue expected due to an in- dulum toward more transparency local communities have the ability centive from the city that reduces and oversight of the way incentives to award some type of an incen- GM’s taxes on new construction by are awarded. For example, cities do tive.” up to 50 percent for a maximum 12 more follow-up checks to see if Tax incentives last for a specified years. companies keep their promises on Helping manufacturers, service providers, number of years — in some cases, Said Fouts: “We may lose rev- spending and jobs. up to 12 — and can include waiving enues in the short run, but not in Fouts, of Warren, said his city’s government contractors and more with some property taxes on new con- the long run.” assessor has rescinded incentives in struction projects and capturing Tax credits, however, have come the past because companies did not business cash fl ow solutions. new taxes to reimburse developers under increasing scrutiny in recent add the number of jobs they prom- for the cost of work on brownfield years. ised. › sites. Some of it has been a shift in pol- “We check, we follow through A/R Financing In exchange for an incentive, icy. Some, like state incentives for and, if not, they lose,” he said. “It’s › Lines of Credit companies and developers promise brownfield or historic preservation not a blank check. It’s a check with to spend a certain dollar amount credits, have gone away altogether. strings.” Ⅲ and create or retain a set number of The Legislature also recently killed Lindsay VanHulle: (517) 657-2204 www.hitachibusinessfi nance.com (248) 658-1100 jobs. Michigan’s film incentives program, Twitter: @LindsayVanHulle 20150824-NEWS--0005-NAT-CCI-CD_-- 8/21/2015 5:04 PM Page 1

CRAIN’S DETROIT BUSINESS // AUGUST 24, 2015 5 Demand sparks plan for high-end apartments in Plymouth

By Kirk Pinho [email protected] “Because it’s It’s been more than a decade been a since the last new apartment devel- decade, opment in Plymouth, but pent-up demand for high-end rental hous- things have ing is causing developers to end changed in that skid. Deferred demand for high-quali- terms of ty new rental housing in western who the Wayne County, following a long construction drought, has spurred demographic the first all-new apartment complex is, and what there since 2004, with 93 luxury units expected to land in Plymouth, they are at 333 Plymouth Road near Hol- looking for is brook, via Starkweather Lofts by next August. different than Targeting millennials and baby 15 years ago.” boomers as prime tenants, project co-developers DevMar Development Larry Goss, LLC and Burton-Katzman LLC of Bing- Burton-Katzman LLC ham Farms say higher incomes in Plymouth, Northville and Livonia now support rental rates topping $2 COURTESY OF DEVMAR DEVELOPMENT per square foot, which makes tradi- Starkweather Lofts, a Plymouth development with 93 luxury units, will be the first all-new apartment complex in western Wayne County since 2004. tional lenders more willing to fi- nance projects. available starting next August. pansion at Cherry Hill and Ridge Plymouth and Northville dates to Street in Royal Oak. The first 30 That would usher in new con- “They are going to have to pull roads. the early 1970s, according to data in units there sold out in five months. struction for the first time since the that business in because there is “The quality of the construction CoStar, the online commercial real “Young professionals and empty- 111-unit Hidden Cove Estates project nothing like that in that area and at and amenities are going to dictate estate database. The vacancy rate is nesters are looking for alternatives wrapped in 2004 as the latest high- that price point,” said Samuel whether they can get that type of under 5 percent in that area across to the older apartment structures in occupancy residential development Beznos, CEO of Farmington Hills- rent. If they want something new 5,600-plus units in 62 apartment Plymouth. They want new con- in those communities. Renters both based Beztak Cos., which owns and and walkable, they are going to pay complexes and buildings. struction with high-end features,” young and old are in the market for manages the 319-unit Uptown in top dollar for it.” Mark DeMaria, who founded he said. Ⅲ high ceilings, wood floors, granite Canton apartments that is undergo- And new is in demand. The aver- DevMar in 2012, developed the Kirk Pinho: (313) 446-0412 countertops and other features. ing the first phase of a 180-unit ex- age apartment building in Livonia, Metro Lofts in 2006 on East Harrison Twitter: @kirkpinhoCDB The appeal lies in offering an urban-living feel without some of the pitfalls of big-city living like crime or struggling school districts, said Larry Goss, partner of Burton- Katzman and executive vice presi- dent at Core Construction Services LLC, also in Bingham Farms. Most apartment complexes on the local market don’t fit that bill, he said. “This is … the next generation of residential units for lease,” Goss said. “Because it’s been a decade, things have changed in terms of who the demographic is, and what they are looking for is different than 15 years ago.” Millennials and boomers also are $1 Billion willing to pay a premium for those amenities, Goss said. That, in turn, justifies construc- tion on high-end units, which can cost more than $200 per square foot to build. Lower-end apartments, by comparison, cost $130 to $150 per square foot. Starkweather Lofts units will likely range from 703 to 1,309 square feet and command $1,500 to $2,800 per month in rent — or $2.14 per square foot. Units are expected to become

BANKRUPTCIES The following business filed for protection in U.S. Bankruptcy Court in Detroit Aug. 14-20. Under Chapter 11, a company files for reorganization. Chapter 7 involves total liquidation. Ⅲ Barden Development Inc., 2000 Town Center, Suite 1900, Southfield, voluntary Chapter 7. Assets and lia- bilities not available. Natalie Broda 20150824-NEWS--0006-NAT-CCI-CD_-- 8/21/2015 5:53 PM Page 1

6 CRAIN’S DETROIT BUSINESS // AUGUST 24, 2015 CRAIN’S DETROIT BUSINESS OPINION Indian-state gaming rift must be resolved

ichigan has grown to rely on payments from Indian gaming operations to fund economic development M programs. So when a tribe turns off the tap because of a contract dis- pute, it’s a problem. As Lindsay VanHulle reports on Page 1, the latest dispute has created a budget hole in the Michigan Economic Development Corp. that can result in layoffs. For the MEDC, the Indian compact dollars have the ad- vantage of going directly to its coffers, bypassing allocations by the Legislature (which occasion- Michigan ally cuts funding for key MEDC pro- must press grams). hard for a But there may be a solution. legal case to Online Michigan Lottery sales — LETTERS resolve the which is what the American Indian tribes say violates their compacts gaming- with the state — have brought in State must preserve energy efficiency standard revenue issue millions to Michigan coffers. The Editor: once and for state projects online sales will have In a Crain’s Other Voices column Send your letters: Crain’s Detroit Free Press,News could learn Business will consider for all. netted the state an additional $480 Aug. 10, Rep. Jason Sheppard, R-Tem- some lessons in logistics million in revenue by 2022. perance, ironically calls for repealing publication all signed letters to the editor that do not defame Two options: First, explore allow- Michigan’s energy efficiency stan- Editor: dard while advocating for an “all of individuals or organizations. Letters I have two questions after read- ing tribes to create their own online lotteries and keep that the above” approach (“End them: ‘All may be edited for length and clarity. ing Bill Shea’s Aug. 17 comprehen- revenue but reinstate the payments to the state. Or, consider of the above’ is key to energy future”). Email: [email protected] sive article (“Free Press future: Lean, allocating some of the online lottery dollars to MEDC to re- Prior to passing that standard in digital,” Page 1). place the tribal dollars lost in the current dispute. 2008, Michigan utilities failed to First, when the Free Press and De- Either way, Michigan needs to press hard for a legal case that provide any energy efficiency pro- Public Service Commission, which troit News finally decided to institute grams to their customers. They also found that they saved ratepayers a well-deserved higher copy price, would set a precedent and resolve this issue once and for all. remained dangerously over-reliant $3.75 for every $1 spent on the pro- why did they simultaneously decide on fossil fuels for creating electricity. grams. Ending Michigan’s current to cut the number of copies deliv- In fact, it was Michigan’s energy effi- energy efficiency standard would ered to households? If 56 percent of ciency and renewable energy stan- be a big mistake: It would raise utili- national readers still read a print edi- Close loophole in city taxes dards created in 2008 that ensured ty costs for Michigan families and tion now, the percentage was much It’s about time that Michigan closes loopholes that allow Michigan had an “all of the above” businesses and increase pollution. higher 10 years ago. Instead, readers approach, by requiring utilities to It would send a terrible message to are forced to go on a scavenger hunt residents to evade paying income tax in the cities where they include energy efficiency and re- businesses looking to invest and four days a week looking for the live. newable energy as a part of their grow here in Michigan. paper. Can you think of any other A bill to require suburban employers to make those deduc- supply portfolio. Before that, their In order to maintain an “all of the product that would do this? tions for employees who live in Detroit is traveling through only approach was to build more above” approach, Michigan must Second, why didn’t the papers the Michigan Legislature. and more power plants. protect and expand its energy effi- offer a tablet alternative to down- ciency and renewable energy stan- Our question: Why limit it to Detroit? Michigan has 22 Most important, Michigan’s en- load the daily paper? They have a ergy efficiency standard has been dards. wonderful digital edition that is an cities with income taxes on residents and nonresidents who an outstanding success. Michigan’s Martin Kushler exact replica of the paper edition — work within the borders. utility programs have been thor- Senior fellow, American Council for an Energy Efficient the format that advertisers most Employers must deduct those taxes in the cities where they oughly studied by the Michigan Economy love and longtime readers under- are based, both for residents of that city or nonresidents (if a stand. From the savings of not tax is imposed on them). But if a resident of a city works in printing and distributing a paper another town, it’s largely an honor system. Employers aren’t edition, they could have bought tablets for each subscriber. And if required to deduct the tax — even though they clearly know they don’t want to get into the tablet all employees’ legal addresses. business, I’m sure Amazon would Suburban employers in metro Detroit aren’t protesting the love to have them piggyback on its prospect of making those deductions. With modern payroll Kindle service so that Free Press and systems, a few key inputs will make the deductions automat- News readers could be sold other ic. And small businesses, with fewer than 10 employees, Amazon products. Mr. Huschka has excellent graphic would be exempt. talents, just as Mr. Anger is a very The bills should cover all 22 cities, not just Detroit. Beyond competent journalist and editor. the basic fairness, it’s an opportunity for cities whose proper- Now if only someone who knows the ty values have not yet recovered to generate additional dol- logistics side could run the business. Mark Maisonneuve lars to fund basic programs, like fixing city streets. Berkley 20150824-NEWS--0007-NAT-CCI-CD_-- 8/21/2015 11:03 AM Page 1

CRAIN’S DETROIT BUSINESS // AUGUST 24, 2015 7 New law’s increased funds for training can help close skills gap t was great dire need of this “Employers, elected officials and technical skills. I news when last kind of govern- By 2025, according to the Manu- year, for the first ment collabora- other stakeholders in our region must facturing Institute, 3.4 million man- time in more than tion. Closing the take advantage of these federally ufacturing jobs will become avail- 15 years, Congress skills gap among able in the U.S., but 2 million will be passed legislation American work- funded opportunities ... to help left unfilled. If these projections be- to modernize the ers is a complex protect Michigan’s continued come reality, Michigan manufactur- public workforce OTHER VOICES: issue, historically ers will surely feel the pain. system. Andra Rush compounded by growth.” Employers, elected officials and Though the Rush is CEO of Dakkota Integrated ineffective coor- other stakeholders in our region law’s principal Systems, Detroit Manufacturing dination among country, we will find ourselves com- skilled trades as a career option, must take advantage of these feder- aim is to ensure Systems and Rush Trucking Corp. She training agencies peting for a dwindling pool of quali- perhaps because of low awareness ally funded opportunities to foster job seekers and also is a member of the U.S. and employers. If fied workers. or negative perceptions. And our cooperation under a cohesive mis- workers acquire Manufacturing Council. we fail to address Baby boomers are retiring by the public education system graduates sion and to help protect Michigan’s the skills and cre- the skilled labor thousands every day. America’s too few high school students who continued growth and economic dentials that employers need, some shortage in our region and our young people show little interest in are prepared for jobs requiring prosperity. Ⅲ Michigan manufacturers are un- aware of this law that delivers a key benefit: increased funding for skills training. The Workforce Innovation and Opportunity Act, which replaces the Workforce Investment Act of 1998 and amends the Adult Education and Family Literacy Act, the Wagn- er-Peyser Act and the Rehabilitation Act of 1978, provides resources to With expertise in law and trusts, Claire Rosati establish closer ties between em- ployers, unions, workforce boards, could have gone anywhere. So she did. community colleges and elected of- ficials. The act brings together core pro- Ascending to the role of Chief Fiduciary Officer for Merrill Lynch Trust Company of America would grams in skills development for adults, youths, dislocated workers be a career capstone for most people. As would the successive trust positions that Claire Rosati held and people with disabilities, and of- with Allstate, Wintrust, Goldman Sachs, Lehman Brothers, Barclays and Citi. But along the way of fers greater accountability and for- promotions and ever greater responsibilities, the line between her employers’ interests and her clients’ mula grants to states for employ- ment services administered by the interests was becoming blurred—and, for Claire, worrisome. With one phone call, everything came U.S. Department of Labor. into focus. “There’s a great company in Birmingham, Michigan, looking for trust experts,” said While it was signed into law last a friend, referring to the Family and Foundation Services Division at Greenleaf Trust. year, its major provisions just took effect on July 1. They are: Ⅲ All states will be required to In Claire’s exploratory visits and conversations with us, she was struck that every client submit a four-year unified strategy discussion focused on the client’s interests. She saw that being privately held enabled us to implement core programs for to avoid the usual conflicts between corporate and client priorities. Early in 2015, educating and training our work- force. Claire joined us, and is now leveraging her considerable expertise Ⅲ State and local workforce in trusts and wealth management on behalf of high net worth boards will promote public-private families. And at long last putting their interests first. partnerships that meet the needs of groups of employers. Ⅲ Funds will be available for in- There’s never been a better time to be a client of cumbent workers, on-the-job and Greenleaf Trust. All it takes is a call. customized training. Ⅲ Funds also will be available for registered apprenticeships and transitional jobs. Ⅲ Local areas will be required to more than double funding to serve out-of-school youths and earmark dollars for youth internships, pre- apprenticeships, summer jobs and on-the-job training. Ⅲ Roughly 2,500 providers in the American Job Center system will see improvements in the form of Financial Security from Generation to Generation new certification criteria and easier ways for employers and job appli- cants to find their local centers. Ⅲ Programs will be evaluated at least every four years and required to measure effectiveness of services offered to employers. Ⅲ Performance reports for state and local agencies, along with train- ing providers, will be made public. Still, what is most exciting is the law’s emphasis on job-driven train- ing that leads to skills recognized by industry, and higher reimburse- ment rates to employers for self- 34977 woodward avenue birmingham, mi 48009 248.530.6200 greenleaftrust.com administered training programs. The manufacturing sector is in 20150824-NEWS--0008-NAT-CCI-CD_-- 8/21/2015 12:04 PM Page 1

8 CRAIN’S DETROIT BUSINESS // AUGUST 24, 2015 Biz owners in Goldman Sachs program top peers Automation

By Chad Halcom by Goldman CEO Lloyd Blankfein Gray said it’s too early to have any Alley: Trade [email protected] and hosted by Wayne State University, research on why Detroit is doing so Maybe the poet Langston Hughes Macomb Community College and Oak- well in the program, but he suspects was right: A dream deferred really can land Community College. some industries are so structured to missions explode — at least when a business Nearly 52 percent had added em- encourage conformity and tailoring owner who has one finally stops put- ployees in metro Detroit in the same skills to customers that some busi- ting it off as impractical and starts to period since graduation, compared ness owners find an untapped mar- spark exports execute. with 46 percent nationally. ket when they break out on their Small-business owners in metro “It seems like once they commit- own. By Dustin Walsh Detroit who took part in the first few ted and put the program in Detroit, “If I’m doing $4 million a year, and [email protected] groups — or “cohorts” — of Goldman it’s been very satisfying to see Detroit $3 million is in this line of low-margin Trade missions coordinated by Sachs Group Inc.’s 10,000 Small Busi- outperforming its peers,” Androff business I don’t really like but it’s what Automation Alley have led to more nesses program have outperformed said. “They can see now that we were I’m expected to do, and the other $1 than $507 million in export sales for their peers in the 20 other local mar- a leading city, not a trailing one or a million is in something that’s high- participating companies, the or- kets that have joined the national COURTESY OF PROFESSIONALMOVERS.COM pity invite.” margin where I have a lot of ideas — ganization reported today. program since 2010, based on rev- Founder Chris Androffand co-owners Sean Gray, associate director of well, what if you took your capacity Since 2001, 170 companies have enue and jobs growth after six AndrewAndroff and Patrick Crowley 10,000 Small Businesses at Wayne and instead did more of that thing?” participated in 24 trade missions to months. in front of one of the two trucks that State, said the graduates not only out- he said. Mexico, Indonesia, Chile, Saudi Ara- Andrew Androff, co-owner and ProfessionalMovers.com added to performed the national average but Androff said his company, found- bia and other countries. Company sales director of Professional support the company’s growth. also are doing better as a group than ed by father Chris Androff in 1978, growth as a result of these trade Movers.com Inc. in Walled Lake, thinks participants in any other region thus found new life five years ago after ac- missions has led to the creation of that may be partly because compa- “I had friends outside of my busi- far. quiring a formerly unavailable Web 2,817 jobs, the Troy-based business nies here have more opportunity to ness but never really had the chance About 125 business owners have address and rebranding from Profes- accelerator said in a release. make a name for themselves than to work in a group of people like this,” completed the program to date, sional Movers Inc. to Professional- “Our missions are results-orient- small businesses in more crowded or he said. “There were business owners while a fifth cohort of 31 participants Movers.com. The company also ed,” said Noel Nevshehir, director competitive markets. Another reason of various sizes, people who were began training in June and will com- shifted from a primary emphasis on of international business services might be the potential to diversify where we were five years ago or were plete it in October. A sixth cohort be- freight and delivery service to office for Automation Alley. “These are here. where I wanted to be in five years. It gins Nov. 6, and registration ends and residential moving services, not junkets; they are purely busi- Androff, a graduate of the third co- was a good selection of business in Dec. 11 for a seventh cohort that which is now a majority of its sales. ness, and our goals directly align hort, said his company has added 11 different stages and each of the issues starts next April. The company, with offices in with our results.” employees since he completed the they face.” “One challenge in metro Detroit is Walled Lake and Detroit, also hopes But new international export program this year. Head count is About three-fourths of the local that people compete in a way by hid- to grow geographically with locations contracts often don’t come easy, around 40 right now, including some participants in 10,000 Small Busi- ing their best ideas,” Gray said. “But in western Wayne County and possi- Nevshehir said. summer help. nesses had achieved revenue growth one of the things we analyze is what bly Macomb County under a busi- “There’s this misconception that Revenue is on pace to top $3 mil- within six months of graduation, gives you identity. If your biggest two ness plan Androff developed during companies will go and come back lion this year, compared with about compared with about two-thirds of contracts walk out the door, what is the Goldman Sachs program. Ⅲ with contracts in hand,” he said. $2.6 million when Androff applied to participants nationally. The program your business about now? What still Chad Halcom: (313) 446-6796 “These trips are about building rela- participate in 2014. was introduced in Detroit in late 2013 makes you special?” Twitter: @chadhalcom tionships, and the gestation period between these meetings and a deal can be anywhere from a year to five years.” Automation Alley’s next trade missions are to Mexico (Sept. 20- 25), the United Arab Emirates (No- vember), Germany (April 2016) and Employment Law Experience Cuba (fall 2016). The organization said it is ex- panding its company pool to 14 In Your Corner.® from eight for the Mexico trade mis- sion to “support Mexico’s extremely weak supply chain,” most of which will be automotive. Ŷ Facilitative mediator for U.S. District Court – Nevshehir said 82 percent of the Western District of Michigan and Michigan Courts. global buying power is outside the U.S., so for small and midsize Ŷ Arbitrator and mediator with National Arbitration companies to compete, building international relationships is a ne- and Mediation, Inc., the American Settlement cessity. Centers and the National Arbitration Forum. “The future success of any busi- ness relies on diversifying globally,” he said. “And U.S. companies have an advantage. … The world craves U.S. brands for our quality and in- novation.” Ⅲ Dustin Walsh: (313) 446-6042 Twitter: @dustinpwalsh “The future success of any business relies on diversifying globally. The world First Tier Ranking in craves Labor Law – Management U.S. brands.” Ŷ Metro Detroit Ŷ Grand Rapids Ŷ Kalamazoo Ŷ Grand Haven Ŷ Lansing Contact Dick Hooker at [email protected] Noel Nevshehir,Automation Alley 20150824-NEWS--0009,0010,0011-NAT-CCI-CD_-- 8/21/2015 12:03 PM Page 1

CRAIN’S DETROIT BUSINESS // AUGUST 24, 2015 9 SPECIAL REPORT: EMPLOYMENT

CHAD HALCOM Reporter’s Notebook [email protected] TWITTER: @chadhalcom Employment litigation: LAW What are the hot spots?

Marlo Johnson Roebuck, 45, became managing shareholder Aug. 1 for the Michigan offices of the workplace law firm Jackson Lewis PC. She succeeds Maurice Jenkins, who founded the firm’s Southfield office in Marlo Johnson 2008 and is now Roebuck: Working returning to a full- on OT litigation. time law practice.

We hear worker misclassification and overtime eligibility are hot spots in employment law. What other areas are active? Overtime accommodations are particularly a hot spot right now. But we’ve also had a share of matters involving ADA (Americans with Disabilities Act) and making reasonable accommodations for the Family and Medical Leave Act. For employers, there can be a lot that goes into managing (FMLA) leave. But we also handle retaliation claims, like an employee who (later) says a promotion didn’t come along that they expected ... because of medical leave. Employers, we find, want to make By Chad Halcom the right decision and get the best [email protected] person for any job. But issues still vertime rules and employee misclassification al- come up, and so we handle them. OVERTIME ready seem like hot-button topics in corporate Ohuman resources departments, but workplaces Your Detroit office has a majority of woman attorneys, and nearly half are haven’t seen anything yet, attorneys and statewide business African-American. How did you reach that organizations say. level of diversity? Two July directives from the U.S. Department of Labor, each Diversity is definitely one thing the interpreting the federal Fair Labor Standards Act, could make firm is very committed to. Maurice more than 5 million salaried em- did a very good job attracting and $50,440 ployees eligible for overtime pay cultivating a diverse group, and six, or ANGST The proposed minimum pay for an two-thirds, of the attorneys here are Changes from the U.S. Department of and allow an additional 2 million employee to be salaried and exempt female. It’s also a priority nationally, workers or more to have health from overtime eligibility, up from but we are always looking to attract Labor could up the ante in employer insurance benefits or organize the current $23,660. the best talent regardless of liability, change classifications into labor unions. background. Our clients expect to work with attorneys who are very The proposed overtime rules, which President Barack qualified but who also represent the Obama directed the department to update in June, would community where they practice. We increase the minimum pay for an employee to be consid- represent automotive companies, ered salaried and, therefore, exempt from overtime eligibility some financial institutions, health to $50,440 a year from $23,660. care companies and some retailers. Labor market analysts have estimated the proposal could What are some growth areas where you increase the number of overtime-eligible employees by as think Jackson Lewis might need new local much as 5.9 million. expertise or look for new hires? Two weeks later, Labor also released a new set of guide- I’d anticipate some need for lines distinguishing a company employee from an inde- growth in immigration law. pendent contractor under the Fair Labor Standards Act’s We’ve represented employers on matters with the Department of definition of employment as “to suffer or permit to work.” Homeland Security (over hiring The guidelines suggest most workers are employees — the practices); and we represent a number of governmental entities in SEE OVERTIME , PAGE 10 the area, too. We also handle privacy matters like data breaches and audits to help employers comply with A transgendered employee’s case against a Detroit funeral home certain federal acts. Ⅲ Sexual stereotyping or biz owner prerogative? tests the boundaries of discrimination law, Page 11 20150824-NEWS--0009,0010,0011-NAT-CCI-CD_-- 8/21/2015 12:01 PM Page 2

10 CRAIN’S DETROIT BUSINESS // AUGUST 24, 2015

SPECIAL REPORT: EMPLOYMENT LAW

probably one case to handle surance products in Escan- classification guidelines. tions may vary. OVERTIME in the preceding five years. aba and neighboring Glad- About 10.6 million peo- “The idea that employ- FROM PAGE 9 Most are resolved well stone in Delta County. A ple were in classified self- ers are going to stay static before litigation, but all majority of its 18 employees employed or independent and simply pay overtime definition of “employee” is broader have involved recently sep- are salaried, Magowan said. contractor jobs in 2012, up and not do anything else is than what many employers use and arated employees or con- Generally, those workers 14.4 percent or more than just wishful thinking,” Klotz what some court rulings indicate. tractors. Ptasznik said that make between $25,000 and 1.3 million from 2001, ac- said. “Some things that The overtime proposal is open to most workers are unlikely $40,000 a year — a livable cording to Economic Model- even (Labor) has anticipat- public comments until Sept. 4, and to rock the boat while they HeatherPtasznik: wage in rural northern ing Specialists International, Gary Klotz: ed happening include that an internal review will follow before are still employed and that Most workers won’t Michigan, Magowan said. a CareerBuilder company. Employers won’t people will just be reclassi- Labor issues a final rule. Experts if they have any classifica- act until after they But the new federal stan- The largest self-employed just pay overtime. fied as nonexempt, or there think that could be late 2016 at the tion concerns, they tend to leave company. dard might not take differ- occupations included child will be a change in the mix soonest, since the last round of come up later. ences between communi- care workers at an estimated 556,523 of workplace duties or companies overtime and salary exemption rule “They tend to go look for advice or ties into account. jobs, carpenters at 459,116 jobs and will hire a few part-time people. And changes in 2004 were under review help right after they’ve left, and the “Salaries in New York City or even construction laborers at 380,226 esti- some might just be modestly paid for about a year. employer typically moves to resolve it Detroit would be far different than mated jobs. The latter two profes- more to get them over the new cap.” More litigation? very quickly,” Ptasznik said of the here, and the Department of Labor sions could be significant because Klotz said many employers tradi- labor trend as a whole. paints with a very broad brush,” he both are mentioned as classification tionally have used salary as a status The two changes are also likely to “The fear in some cases is the one said. “I understand why, but to me it examples in the Labor guidelines symbol to differentiate between the accelerate an employment litiga- employee might only have one puts an unfair burden on paying from July, and employer groups have people they consider management tion trend in the federal court sys- claim and it’s manageable but will employees fairly. I don’t pay bar- previously said the new rules could or administration versus the rank- tem. Federal lawsuits alleging viola- get an attorney and petition the gain-basement wages. We pay what expand collective bargaining be- and-file worker. tions of the FLSA reached 8,160 court to try and get it certified as a our local market avails us to.” cause unions are not allowed to or- This has changed somewhat over nationwide in fiscal 2014, up 8.8 collective action” on behalf of all While the insurer generally keeps ganize independent contractors. time. The Obama administration percent from the previous year and similar employees. business hours, Magowan said, in- The Small Business Association of probably is stressing overtime be- the highest since 1993, according to The new guidelines from Labor surance claims will surge after se- Michigan and National Small Business As- cause the Bush-era changes that data released in March by the Ad- mean those kinds of disputes are vere weather, and part-time or con- sociation have estimated that the over- advanced the overtime threshold to ministrative Office of the U.S. Courts. likely to increase, particularly if the tingency labor wouldn’t have the time rule could cost a small business $455 a week did not keep up with Detroit’s federal court alone has overtime rule takes effect next year, training or skills to fill that gap. an average of $100 to $600 in direct inflation since the last major seen six new FLSA cases as of July, Ptasznik said. “There are times where work just costs and $320 to $2,700 in new pay- changes in the 1970s. up from three in the preceding fiscal Because employment litigation is backs up, if a hailstorm or weather roll costs per employee within the Some businesses could turn to year. Since 2012, the Wage and Hour often countercyclical and lawsuits event comes through town and we all rule’s first year and could lead to ad- outsourcing certain departments or Division of the Labor Department tend to climb during recessions, she have to spend extra time if we hope to ditional administrative costs from functions or try adding part-time has been ramping up enforcement said, any future economic slow- process claims for our customers in a scheduling and monitoring employ- workers to share the workload. But practices in certain industries that down could cause layoffs or work- timely fashion,” Magowan said. ees who are overtime-eligible. Klotz said that may not do much to carry a heavy payroll of nontradi- place restructuring and accelerate Restaurants, retailers, health care The proposal “will have a signifi- relieve payroll costs from people tional workers. the trend even further. companies and small manufactur- cant negative impact on small busi- with limited supervisory roles, such Heather Ptasznik, an attorney in Employers at center ers are the most likely to have ness and startups. This rule change as an assistant manager. the labor and employment practice salaried workers in the range that affects both flexibility on how a small “Many of the people you’re talking at Kotz Sangster Wysocki PC in Bloom- Watching the overtime regulation could be most affected by the over- business operates but also adds about are supervisory or administra- field Hills, said that law firm alone has change closely is Jeffrey Magowan, time rule, attorneys said. Construc- costs to their day-to-day balance tive people, and just picking up a handled four claims of employee owner of Garceau Insurance Agency tion, janitorial services, staffing, IT sheet,” SBAM President and CEO couple of new people can’t really do misclassification against its employer Inc. in Escanaba. Garceau offers services and other industries are Rob Fowler said in a statement to much to relieve their administrative clients since January, compared with home, auto, business and other in- more likely to be affected by the Crain’s. “This would be a significant duties,” he said. “The law is as much new challenge for job creation right about work duties as work hours.” at a time when we are starting to see Klotz agreed that employee classi- a real recovery in Michigan and new fication and eligibility for benefits is a employment opportunities.” hot period of litigation, locally and Ptasznik and Gary Klotz, a share- nationally. He expects the overtime holder at Butzel Long PC and an em- rule won’t go into effect until late ployment attorney of more than 30 2016 or early 2017, but it’s unclear years, both said employers probably how much that will add to the trend. will make several changes to adapt to “There may be some of that for 5IF the overtime rule. One popular solu- overtime,” Klotz said, “but the mis- tion would be to give modest raises to classification issue has more poten- employees making nearly $50,000 tial in court.” Ⅲ now as a cheaper alternative to over- Chad Halcom: (313) 446-6796 GO TO time. For lower-paid workers, solu- Twitter: @chadhalcom BEWJTPSTGPSMBCPSBOEFNQMPZNFOUDIBMMFOHFT We have an impressive team of attorneys who specialize in creating solutions GPSZPVSXPSLQMBDFJTTVFT

Miriam Rosen Chair, National Labor and Employment

McDonald Hopkins PLC 8PPEXBSE"WFOVF 4VJUF #MPPNöFME)JMMT .*t James J. Boutrous II, Detroit Managing Member

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mcdonaldhopkins.com Carl J. Grassi, President 20150824-NEWS--0009,0010,0011-NAT-CCI-CD_-- 8/21/2015 11:47 AM Page 3

CRAIN’S DETROIT BUSINESS // AUGUST 24, 2015 11

SPECIAL REPORT: EMPLOYMENT LAW Fired funeral home worker may shape transgender rulings

By Marti Benedetti to follow next year. (and) unilaterally extend the reach Homes in a July 2013 letter that he co-owned by Thomas Rost and his Special to Crain’s Detroit Business Stephens was let go in August of Title VII to a class it (the govern- was undergoing a gender transition son, Matthew Rost. A Detroit funeral home is headed 2013; the EEOC filed the suit against ment) knows is not protected.” from male to female and intended The EEOC is asking the funeral to trial after firing a transgender Harris Funeral Homes on Stephens’ Title VII prohibits a business or in- to dress in the appropriate business home to institute policies and prac- employee in a case that has the po- behalf about a year later. In April, dividual from discrimination based attire as a woman. Stephens also tices that provide equal employ- tential to create a court precedent Cox decided that the 2014 lawsuit on sex, race, age, religion or national asked for their support and under- ment opportunities regardless of for federal officials to make sexual should be allowed to proceed, in origin — but does not include gender standing. sex, including gender identity. It identity a protected status in em- part because the EEOC could make identity, said Susan Koval, a According to the suit, the also wants Stephens to get appro- ployment discrimination law. a case that Harris had based an em- partner at Detroit-based funeral home’s decision to priate back pay and compensation Funeral director and embalmer ployment decision on Stephens’ re- Nemeth Law PC. fire Stephens was motivat- for medical losses, job search ex- Aimee Stephens, formerly Anthony fusal to conform to certain “sex The lawsuit also indi- ed by “sex-based consider- penses and the lost clothing al- Stephens, was fired from the Gar- stereotypes” under federal law. cates Harris Funeral Homes ations,” adding, “She did lowance. den City location of De- Bloomfield Hills civil has a strict dress code and not conform to the funeral This Detroit case is the second of troit-based R.G. & G.R. Harris rights attorney Deborah provides male employees a home’s sex or gender- its kind filed by the EEOC nationally Funeral Homes Inc. two years Gordon, managing partner clothing allowance to wear based preferences, expec- — both for transgendered profes- ago this month, shortly of Gordon, Laughbaum & suits in performing their tation or stereotypes.” sional employees who were fired after revealing to the own- Prescott PLC in Bloomfield duties but did not accom- Susan Koval: Harris Funeral Homes after presenting themselves as ers he was transitioning to Hills, said the commission is modate female employees Educating contends in court that the women. In the first case, Lakeland become a woman. making two separate claims the same way. employers on LGBT government lawsuit is vio- Eye Clinic in Florida fired its director The family-owned Harris to bolster a case that Harris Attorneys said the judge issues. lating its rights under the of hearing services after she began Funeral Homes, which had Funeral Homes made a will evaluate the case based federal Religious Freedom to present as a woman. That case employed Stephens since Deborah Gordon: gender-based, not trans- on a 1989 Price-Waterhouse (now Restoration Act, which prohibits en- also involved a claim of gender- 2007, allegedly informed EEOC stresses gender-based, decision be- PricewaterhouseCoopers LP) sexual croachment on certain kinds of based stereotypes. Stephens that what she was gender, not cause the latter is not pro- stereotyping dispute. That company business owners’ religious convic- But the eye clinic settled in April “proposing to do” was un- transgender. hibited under the law. was in litigation over an employee’s tions without a compelling govern- for $150,000 and adopted a new acceptable and fired her. Gordon is not an attor- identifying and expressing herself as ment interest. It was not immedi- gender discrimination policy and The business tried to have a subse- ney in the case. Attorneys for both a woman but who employees ately clear from court documents training for its staff. quent lawsuit by the U.S. Equal Em- sides did not return phone calls thought was not behaving in a femi- what the convictions might be. “These are the first cases filed in ployment Opportunity Commission seeking comment. nine manner. Besides Garden City, Harris Fu- the modern era,” Gordon said, “and dismissed in court, but Judge Sean In its motion to dismiss, Harris While employed by Harris Funer- neral Homes has locations on De- this one will work its way to the fed- Cox of U.S. District Court in Detroit Funeral Homes claimed that the al Homes, the suit states, Stephens troit’s east side and Livonia. The eral Court of Appeals and probably denied that request this spring. EEOC is “attempting to shoehorn “adequately performed the duties company also owns and houses the the Supreme Court unless Congress A motion hearing is scheduled ‘gender identity disorder’ into Title of her position.” Cremation Society of Michigan at its gets its act together and amends for this week, and a trial is expected VII as a species of sex discrimination Stephens told Harris Funeral Detroit location. The facilities are Title VII.” Ⅲ 20150824-NEWS--0012-NAT-CCI-CD_-- 8/21/2015 11:39 AM Page 1

12 CRAIN’S DETROIT BUSINESS // AUGUST 24, 2015 St.Joseph projects aim for healthier community

By Jay Greene lieves its mission goes be- an effort to manage the Other hospitals’ community health efforts [email protected] yond hospital walls, said health outcomes of a Is a hospital’s role to treat sick Rob Casalou, CEO of St. group of individuals in a Over the past two years, many hospitals in metro Detroit have increased efforts people or help forge healthier com- Joseph Mercy. geographic market. to improve community health. Beyond St. Joseph Mercy Health System, here’s a munities? “St. Joe’s is a health and If population health rundown of other efforts: Increasingly, the answer is both. wellness company with measurements of such Oakwood Healthcare has focused on decreasing numbers of uninsured And efforts by the St. Joseph Mercy true community health im- chronic illnesses as dia- patients with diabetes, heart disease and obesity. Health System show the system is provement as part of its betes, heart disease and doubling down on its funding for mission,” said Casalou, Rob Casalou: hypertension are increas- Beaumont Health provides monthly health education and screening events in community improvement projects who also is chairman of the Need to improve ing in the community your Brightmoor, one of the most medically underserved neighborhoods in — with an eye on the bottom line, Michigan Health and Hospital community health. hospital serves, Casalou northwest Detroit. government mandates and a com- Association. said, more needs to be Henry Ford Health System is using a $2.2 million grant to fund community mitment to local population health Casalou told Crain’s he delivered done to reverse those trends. health workers to help young pregnant women in Detroit reduce infant management. this message to fellow hospital “We are talking about the total mortality rates. St. Joseph Mercy, a six-hospital CEOs at the association’s recent an- cost of care imposed on society. We Barbara Ann Karmanos Cancer Institute has expanded its prostate cancer system based in Ann Arbor, has nual meeting to encourage others need to lower per-member-per- education outreach program with community events. added $3 million this year to its $12 to increase their efforts because it’s month costs overall,” and working million budget for community im- the right thing to do. on public health improvements can provement projects primarily be- “It is not good enough to say our accomplish that, said Casalou, not- “We will continue to do direct care cause charity care has declined health system made a lot of money ing that St. Joseph is cooperating through safety-net clinics, but from Healthy Michigan Medicaid and did great things with the pa- with local organizations in South- widen it a bit and look at things expansion and the system finished tients we treated,” Casalou said. “We east Michigan on community im- more upstream and invest in social fiscal year 2015 in June on a finan- need to be able to say health im- provement projects. determinants.” cially strong footing. proved in our community.” Some St. Joseph projects in the Miller said investing in commu- Another broader reason for ex- Tracking member costs area of community health: nity projects can improve health panding community projects — Ⅲ Expanding the obesity preven- outcomes and therefore end up which will focus on obesity preven- Casalou said some hospitals give tion program for teens called helping St. Joseph, as many of those tion and behavioral health care — is lip service to population health Shapedown from Ann Arbor and people end up as patients in the that the Roman Catholic system be- management. Population health is Livingston County to Canton Town- hospital or emergency department. ship and Pontiac. In 2012, St. Joseph Mercy spent Ⅲ Further investing in programs $134 million, or 8 percent of net rev- that provide housing and behavioral enue, on community benefits, ac- health programs to homeless people cording to IRS Form 990. and veterans, namely the FUSE (Fre- “We have three buckets for com- quent Users Systems Engagement) munity health,” Miller said. “One is and SOAR (Social Security Outreach, uncompensated care (charity care Access and Recovery) programs. and bad debt), the second is med- Ⅲ Contributing $25,000, and an- ical education and research, and other $25,000 in matching funds, to the third is programming.” help complete the city of Ypsilanti’s Miller said the additional $3 mil- $125,000 Heritage Bridge project, a lion, a 25 percent increase over the COURTESY OF ST.JOSEPH MERCY biking and jogging trail that crosses HEALTH SYSTEM 2014 budget, allocated for commu- the Huron River between Riverside St.Joseph Mercy Health System’s nity improvement projects is con- Park and Michigan Avenue. projects in community health included sidered the programming budget. Mandated push helping fund Ypsilanti’s Heritage Bridge Going forward, Miller said, St. bicycling and jogging trail. Joseph is using a two-part strategy Historically, most hospitals have to identify how to spend the $3 mil- invested money on community im- net revenue, on health system com- lion on community projects. provement projects to improve munity benefit projects. St. John fo- First, invest $1.5 million on shov- overall public health and fulfill re- cused on increasing dollars spent el-ready projects and initiatives that quirements under 501(c)(3) tax-ex- on taking care of the poor and vul- it has identified in the past but had emption laws. nerable, increasing from $2.7 mil- no extra funding to accomplish. However, new IRS rules that went lion in 2014 to more than $3.6 mil- Projects include obesity prevention into effect in 2012 under the Patient lion this year. and homelessness reduction. Protection and Affordable Care Act Of that amount, St. John provid- Second, gather input from com- of 2010 mandate hospitals identify ed more than $700,000 in sponsor- munity organizations and analyze and fund projects that address sig- ships and grants to non- data to focus on long-term nificant health needs. profit community agencies investments to improve The law also requires hospitals to serving area residents, health. develop an implementation strate- Taueg said. “We have significant net- gy to address those needs and re- In June, St. Joseph works in Washtenaw Coun- port the projects and expenditures Mercy’s board approved ty and the Southeast Michi- on Schedule H on the annual Form the system’s second com- gan region, and also across 990 to the IRS. munity benefit report since the country with Trinity Cynthia Taueg, vice president of the Affordable Care Act was Health,” Miller said. “We community health with Warren- approved. The report in- Michael Miller: want to look at successful based St. John Providence dentified obesity Investment projects and consider repli- Call Joe Haney Health System, said the five- prevention and improves health cating them here.” President-Principal hospital system expects to behavioral health outcomes One way St. Joseph is Certified Risk Architect complete its second, three- issues as the top seeking input on projects is year community health two needs. through what it calls its “Join Me” needs assessment by next Michael Miller, St. campaign. The campaign was started June 30 when its 2016 fiscal Joseph’s chief mission offi- by Casalou to encourage people in the year ends. cer, said the system will community to improve their personal Taueg said St. John’s pri- continue to fund a variety health. It also encourages healthier Cynthia Taueg: œ““iÀVˆ>Ê˜ÃÕÀ>˜ViÊÊUÊÊ “«œÞiiÊ i˜iwÌÃÊÊUÊÊ*iÀܘ>Ê˜ÃÕÀ>˜Vi orities continue to focus on of community projects, lifestyles for St. Joseph’s 14,000-em- reducing infant mortality St. John focused on but decided to increase ployee workforce, Miller said. rates, diabetes prevention poor, vulnerable funding in the obesity and But Miller said “Join Me” also is It’s time to rethink your insurance strategy and management and im- behavioral health areas as providing information on addition- proving access to care for the un- a result of its 2015 report. al long-term community benefit 888.525.7575 | 586.323.5700 | sterlingagency.com derserved. “We wanted to step back and re- projects the system could add. Ⅲ In fiscal year 2015, St. John’s spent think how our community benefit Jay Greene: (313) 446-0325 $103.2 million, or about 6 percent of budget is balanced,” Miller said. Twitter: @jaybgreene 20150824-NEWS--0013-NAT-CCI-CD_-- 8/21/2015 11:04 AM Page 1

CRAIN’S DETROIT BUSINESS // AUGUST 24, 2015 13

producer of next-generation solid Shenyang, which will produce seal- FICO score of 720 and a 42 debt-to- state lighting technology and a sub- ing systems. Website: income ratio. Website: uwm.com. sidiary of Altair Engineering Inc., has cooperstandard.com. added Super Bright LEDs Inc., St. Louis, Gabriel, manufacturer of automo- DEALS & Mo., to its roster of LED lighting MOVES tive shocks and struts and part of product licensees. Websites: Bankable Marketing Strategies LLC re- Ride Control LLC, Farmington Hills, toggled.com. superbrightleds.com. located from 1420 Washington has launched the Answerman Ad- Blvd., Detroit, to 400 Renaissance vantage rewards program for serv- Twisted Concepts LLC, Bloomfield Center, Suite 2600, Detroit. Website: ice professionals. Websites: Hills, announced its Nutri-Twist bankablemarketingstrategies.com. answermanadvantage.com, DETAILS WOW Water is now available in Mei- gabriel.com. jer Inc. stores and gas stations and LJPR LLC, a wealth management ACQUISITIONS & CONTRACTS Wesco Inc. stores in Michigan. firm, moved its headquarters from Automotive Industry Action Group, MERGERS Hamilton Anderson Associates Inc., Websites: drinkwowwater.com, 4555 Investment Drive, Suite 304, Southfield, is making its e-learning Doeren Mayhew & Co. PC, Troy, an Detroit, a multi-disciplinary design meijer.com, gowesco.com. Troy to 5480 Corporate Drive, Suite and knowledge assessment tools accounting and advisory firm, has firm, along with a team of design- 100, Troy. Website: ljpr.com. and training available in Por- acquired Davis and Davis PC, Farming- ers, is working on MGM National Har- EXPANSIONS tuguese, Chinese, Turkish and Ital- ton Hills, a provider of financial, ac- bor Casino and Hotel, National Harbor, DTE Energy Co., Detroit, has begun NEW PRODUCTS ian. Also, AIAG’s supply chain sus- counting and consulting services to Md., a new entertainment facility construction on a 2,700 solar panel Con-way Freight, Ann Arbor, a tainability workshop content is business owners, primarily dentists. for MGM Resorts International. Web- array on on property owned by less-than-truckload carrier and being updated for delivery in Brazil, The acquired firm will operate as site: hamilton-anderson.com. Morton Terminal Land Holdings LLC on subsidiary of Con-way Inc., has pur- Mexico and China later this year. Davis + Davis, a division of Doeren Citrin Drive in Romulus that will chased 875 new Daimler Freight- Website: aiag.org. Mayhew, until Oct. 1, 2016, at which Rochester College, Rochester Hills, operate by the end of the year. The liner tractors to replace older units. point it will fall under the Doeren has contracted with BT Irwin LLC, panels will have capacity to gener- The company also is adding 1,750 STARTUPS Mayhew name. The Farmington Troy, a consulting and project man- ate 750 kilowatts of electricity. DTE new trailers to its fleet this year, KEYS Grace Academy Charter Hills staff will move to the Troy agement firm specializing in com- Energy will construct, operate and built by sister company Con-way School, managed by Kalasho headquarters. The firm will contin- munity relations programming and maintain the solar array for 20 Manufacturing, Searcy, Ark. Both Empowerment of Young Scholars LLC, ue operations of its satellite office in strategy, as consultant and project years. Website: dteenergy.com. tractors and trailers have advanced has opened at 27321 Hampton St., Raleigh, N.C. Websites: manager of Lake Norcentra Park, a aerodynamics packages to improve Madison Heights. Telephone: doeren.com, daviscpa.com. $5 million community education FLEXcity Fitness LLC, Lansing, has fuel economy. Website: 248) 629-7700. Website: and outreach initiative on the col- opened a fitness studio at 43263 con-way.com. keysacademies.com. Vari-Form Corp., Troy, a manufac- lege campus. Websites: rc.edu/lake, Woodward Ave., Bloomfield Hills. turer of lightweight, hydroformed btirwin.com. Telephone: (248) 451-1004. Website: NEW SERVICES structural parts for pickup trucks, flexcityfitness.com. United Wholesale Mortgage, Troy, a Deals & Details guidelines. SUVs and light vehicles, has been Simons Michelson Zieve Inc., Troy, United Shore Financial Services LLC Email [email protected]. acquired by Crowne Group LLC, Cleve- an advertising agency, has added Cooper-Standard Holdings Inc., company, has announced an inter- Use any Deals & Details item as a land, a manufacturer and distribu- Kowalski Cos. Inc., Hamtramck, to its Novi, the parent company of Coop- est-only financing program avail- model for your release, and look for tor of aftermarket and OEM parts list of clients. Websites: er-Standard Automotive Inc., an- able to qualified homeowners. It is the appropriate category. Without for automotive and other industrial kowality.com, smz.com. nounced two new facilities in limited to those with a 20 percent complete information, your item will equipment markets. Websites: China: a manufacturing and test down payment on the cost of the not run. Photos are welcome, but we vari-form.com. crownegroupllc.com. Toggled, Troy, a developer and center in Kushan and a facility in loan and who have a minimum cannot guarantee they will be used. CALENDAR

WEDNESDAY New Enterprise Forum. 5-7:30 p.m. Women of Influence. 8-9:30 a.m. AUG. 26 Sept. 17. Ann Arbor Spark. Training Sept. 30. Women’s Business Forum. for entrepreneurs on how to pres- Meet four of the area’s top female Network Like a Pro. 4-6 p.m. Detroit ent to investors. Learn what is im- business leaders. Featured pan- Regional Chamber of Commerce. portant to communicate and what elists: Ann Bruttell, president, Meeting David Phillips and Bob Waltenspiel, co- not to do. Spark Central, Ann Coordinators Inc.; Alison Jones, director, founders of IT in the D, share tips and Arbor. Free. Contact: (734) 214- global supply chain operations, tricks for effective networking. The 0110. Delphi Corp.; Munminder LaVelle, execu- Bird & The Bread, Birmingham. $15 tive director of quality, Inteva Prod- for chamber members; $40 non- To Tweet or Not to Tweet. 11 a.m.-1 ucts; Debra Thorpe, senior vice presi- members. Contact: Maggie Olden- p.m. Sept. 17. Davenport University. dent, Kelly Services. $18 Troy burg, (313) 596-0482; e-mail: How to Create a Social Media Strat- Chamber members, $28 nonmem- [email protected]; egy for Your Business. Speakers in- bers. An extra $5 will be charged to website: detroitchamber.com. clude Marilyn Trent, principal, Trent those who register the day of the Creative; Christina Strickland, vice event. MSU Management Educa- UPCOMING EVENTS president, Crackerjack Marketing; tion Center, Troy. Contact: Jaimi Asian Pacific American Chamber of Gordon Thorsby, account executive, Brook, (248) 641-0031; email: Commerce and Google Accelerate Part- Expetec Technology Services; Kathy [email protected]. ner Event. 4:30-6:30 p.m. Sept. 1. Ossian, founder and CEO, Ossian Google. Learn about Accelerate Law PC. Automation Alley, Troy. TEDx Detroit. 8 a.m.-6 p.m. Oct. 8. with Google opportunities and tips $20 members, $40 nonmembers, Curve Detroit. Part tech expo, part on how to put a business on the $30 walk-in members, $50 walk-in business conference, part revival, map and on Google and measure nonmembers. Preregistration TEDxDetroit is designed to spark with analytics. Google, Ann Arbor. closes Sept. 15. Contact: conversation and foster connec- Free for members, $10 nonmem- (800) 427-5100; email: tions. Fox Theatre, Detroit. $85 in bers. Contact: Erin Mclin, [email protected]. advance, $100 at door. Contact: (248) 430-5855; email: Charlie Wollborg, (248) 766-9994; [email protected]. Digital Summit Detroit. All day email: [email protected]. Sept. 22-23. Tech Media. Latest Build IT Together Detroit Technology digital marketing trends and Calendar guidelines. Visit Summit. 8 a.m.-noon Sept. 10. Build practices from Netflix, Zappos, Hub- crainsdetroit.com and click “Events” IT Together. Southeast Michigan Spot, General Motors, Microsoft, near the top of the home page. technology summit for IT and Salesforce, NBC Universal, Virgin Then, click “Submit Your Events” business professionals to America, BuzzFeed, StumbleUpon from the drop-down menu that will collaborate, network and share and more. Max M. Fisher Music appear. Fill out the submission form, information. Security Research Center, Detroit. $445 conference then click “Submit event” at the Engineer Chris Czub will be the pass, $545 all-access pass, $695 bottom of the page. keynote speaker. Bamboo Detroit, platinum. Contact: Eric Gregg, Detroit. Free. Website: (919) 274-2594; email: eric@ More Calendar items can be buildittogether.co/register-now. techmediaco.com. found at crainsdetroit.com/events. 20150824-NEWS--0014-NAT-CCI-CD_-- 8/21/2015 11:05 AM Page 1

14 CRAIN’S DETROIT BUSINESS // AUGUST 24, 2015

dent/principal, Nurish Brands Inc., Royal Oak, from vice president, di- rector of marketing and sales. Coming next month: PEOPLE HEALTH CARE ON THE MOVE ‘People’changes Crain’s Detroit Business has listed promotion or job-change an- SPOTLIGHT nouncements in our weekly print editions for 30 years. Hundreds of companies submit items for our People on the Move feature, and we RICK MEJIA, president, limit them to appointments of management-level and higher. The BrassCraft Manufacturing backlog is sometimes daunting. Correll Kurecka At the same time, major appointments of new CEOs and other key Rick Mejia has been appointed staff are routinely reported through the week on our website, crainsde- president of Kathryn Correll to manager, quality troit.com., and on the news pages of our weekly print edition. They are BrassCraft improvement strategy, MedNetOne not repeated in the traditional People column that appears on this page. Kopytek Brookes Manufacturing, Health Solutions, Oakland Township, So we’re putting all coverage relating to newly appointed executives Novi. and Andrew Kurecka to manager, out- in one place: our website. Beginning Sept. 14, the appointments and ARCHITECTURE Before join- comes research, both from quality promotions that normally appear in this space will move to our web- Bruce Kopytek to vice president, ing Brass- improvement specialist. site, www.crainsdetroit.com/peopleonthemove. commercial architecture, Fieldstone Craft, Mejia, Companies that wish to announce executive appointments in the Architecture and Engineering LLC, 43, was man- Michelle Schreier to controller- print editions, and online, may pay a $350 fee to do so. Each paid item Auburn Hills, from senior architect. aging direc- consultant, Aegis Health Perspec- will include a photograph and about 50 words. The online list will be Also, Brita Brookes to marketing di- Mejia tor-Europe for tives Inc., Livonia. She continues searchable and archived by name or industry. rector/graphic Milliken & Co. as controller, Jay B. Schreier PC, Abbreviated online-only listings will be free and can be submitted by designer, from and president and general man- Bloomfield Hills. visiting the same link. These must be management-level positions and media produc- ager of LSP Products Group. are subject to editors’ discretion. No photos are included in free listings. tion assistant, Mejia earned a bachelor’s de- INSURANCE Also in September, we’ll introduce a new weekly digital feature — a Society for Col- gree in nuclear engineering and People on the Move newsletter that combines the free online an- lege and Univer- political science from the Massa- nouncements, news stories about new executives and the paid display sity Planning, chusetts Institute of Technology People items. Ann Arbor; and and an MBA in general manage- To sign up for that, visit crainsdetroit.com/peoplenews. Mark Galbraith to ment from Dartmouth College. Galbraith assistant project BrassCraft, a Masco company, manager, from was founded in 1946 and is a to manager, eBusiness support cen- architectural de- manufacturer of products for use ter, from eBusiness support center signer, Champi- in the new construction and re- team lead. on Home pair/remodel markets. Telford Imbrogno Builders Inc., NONPROFITS Troy. Mike Telford to senior vice presi- Jessica Huffman to director of ern Michigan University, Ypsilanti. dent, eTitle Agency Inc., eAMC and community relations, Better Busi- Patrick Roach Towne Auction Co. LLC, Orlans ness Bureau Serving Eastern Michigan, to principal, ENGINEERING Group, Troy, from director, eTitle Satine Willemse Southfield, from media relations Roach Quinn Evans Ar- Agency Inc. Also, Vince Imbrogno to specialist, Tiffin University, Tiffin, chitects Inc., Ann director of operations, eTitle Inc., Detroit, from executive vice Ohio. Arbor, from senior associate. Agency Inc. and eAMC, from divi- president and CFO. Also, Christopher sion manager, North American Title May to vice president and CFO, REAL ESTATE CONSULTING Solutions, Pittsburgh. from treasurer; Alberto Satine to sen- Kenneth Howe to interim CFO, Matthew Dom- ior vice president, AAM corporate Agree Realty Corp., Bloomfield Hills, sic to director of Michael Gerendasy to MAI (Mem- and president, driveline business from director of tax. sales, Cambridge ber of the Appraisal Institute) unit, from senior vice president, Consulting Group, chief commercial appraiser of driveline business unit; and Norman RETAIL Troy, from divi- Sullivan Graham eAMC, an appraisal management Willemse to senior vice president, Kevin Jablonski sional vice presi- company, part of Orlans Group, AAM corporate and president, to vice president dent, Great Timothy Sullivan to senior associ- Troy, from MAI commercial ap- metal formed products, from vice of operations- Lakes Branch, ate, Hubbell, Roth & Clark Inc., Bloom- praiser, Gerendasy Valuation LLC, president, metal formed products. technology, AXA Advisors field Hills, from section manager, Bloomfield Township. Sanders & Morley Domsic LLC, Troy. water/wastewater group, HNTB Jeff Ahrstrom Candy Makers Corp., Detroit. Also, Jane Graham to LAW to president and Inc., Clinton Tom Keuten to business develop- associate, from operations director, Glenn Walter COO, BLM Group Township, from ment manager, Rightpoint Consulting Simon Property Group Inc., Estero, to partner, com- USA, Wixom, Jablonski director of in- LLC, Novi, from vice president, Fla. mercial transac- from managing formation and Sogeti USA, Southfield. tions and bank- director, central communication systems. ruptcy, region, Ellison Jan Griffioen to principal, Fulcrum FINANCE reorganization Technologies, SERVICES Edge Inc., Bloomfield Hills, from Blake Scheer to and creditor Ahrstrom Novi. Matt Moore to president and CEO, Griffioen Con- assistant vice rights groups, service manager, sulting Group Inc., Bloomfield Hills. president, bank- Walter Honigman Miller Southeastern ing center man- Schwartz and MARKETING Equipment Co. James Van Leuven to senior vice ager, Level One Cohn LLP, Detroit, from partner, Jon Gunnells to Inc., Novi, from president, Municipal Financial Bank, Novi, from Skadden, Arps, Slate, Meagher & social and digital regional service Consultants Inc., Grosse Pointe assistant vice Flom LLP, Los Angeles. media manager, manager, Nilfisk Farms, from independent con- president, finan- Airfoil Group, Advance, Madi- sultant, Milford. Scheer cial center man- MANUFACTURING Southfield, from Moore son Heights. ager II, Fifth Third manager, Digitas EDUCATION Bank, Livonia. Inc. dba Digi- People on the Move Claudia Petres- tasLBI, Detroit. announcements are limited to cu to dean of Karin Schmitz to partner, tax prac- Gunnells management positions. Email graduate educa- tice; Vanessa Pawlak to principal, ad- Molly Smith to [email protected]. Include tion, Oakland Uni- visory practice; Kristine Howard to ex- vice president of person’s name, new title, company, versity, ecutive director, assurance practice; operations, Chan- city in which the person will work, Rochester Hills, and Marcus Hehl to executive director, nelNet, Dear- former title, former company (if not from professor advisory practice, at Ernst & Young LLP, born, from vice promoted from within) and former Simonte May of public admin- Detroit, all from senior manager. president, cus- city in which the person worked. istration and tomer support Petrescu nonprofit man- FOOD Michael Simonte to president, and services. Changes to Crain’s People feature agement, East- Howard Dembs to vice presi- American Axle & Manufacturing Holdings Smith Also, David Indish begin Sept. 14 (See note, above.) 20150824-NEWS--0015-NAT-CCI-CD_-- 8/21/2015 5:53 PM Page 1

CRAIN’S DETROIT BUSINESS // AUGUST 24, 2015 15 Judge kept on expo center case; Adell reviews options

By Chad Halcom biased and expletive-filled com- Since my last property with seniority over the law week for costs and attorney fees [email protected] ments” at a July status conference. firm, and hinders payment on the against the Children’s Trust, in a sep- President Kevin Adell of Adell Alexander allegedly told attorneys name is Adell, it debt. arate lawsuit it brought over the Broadcasting Corp. in Clinton Town- he would deny a request to dismiss doesn’t But Kevin Adell contends he had Expo Center property. ship is still deciding his next move Adell as a defendant in the case loaned the trust partnership a total Adell said he would continue to after learning an Oakland County even before it had been brought, mean I of about $1.2 million over several fight the lawsuit in Alexander’s court, judge will continue hearing a lawsuit suggesting a bias against him. owe the years when the Expo Center moved and it could take 10 years to work its over the Novi Expo Center — but he But Grant found attorneys on judgment. off-site, for expenses like property way through the appeals court. doesn’t consider the matter over. each side of the case had widely taxes, maintenance, insurance and “It’s not my judgment. I don’t pay Adell, 48, broadcast entrepreneur differing accounts of what hap- The trust more than $600,000 of legal fees al- other people’s bills. Why should I and owner of WADL-TV 38, said Fri- pened, and even if Alexander had that ready paid to Hyman Lippitt. overpay just because I happen to day he has not yet decided whether made such an outburst it would “There were creditors sniffing have the money?” he said. “It’s not to immediately appeal Chief Circuit not prove bias. (previously around (the trust partnership) and I about the money, it’s a principle.” Judge Nanci Grant’s decision last “Furthermore, although the par- owned the Expo felt my loan was in jeopardy. So I Crain’s reported in February that week keeping Circuit Judge James ties agreed that (Adell and co-)de- foreclosed on my interest,” he said. Adell could fetch as much as $380 Alexander on the lawsuit, or wait fendants have filed a motion (since Center) does.” “I had the largest amount owed to million in a possible auction of the and challenge any subsequent deci- July) for summary disposition, Kevin Adell me, so I come first.” WADL TV-38 license next year. The sions in the same case. Judge Alexander has not yet ruled Adell also said he intends to go to FCC in early 2016 will auction por- Either way, he expects to fight the on it,” her ruling states. “Therefore, founder Norman Lippitt, represent- court Wednesday when the case re- tions of the UHF over-the-air former Hyman Lippitt PC law firm Judge Alexander has not denied the ed Children’s Trust in subsequent liti- turns for a routine motion hearing broadcast spectrum from TV sta- that brought the 2014 lawsuit, and motion without first hearing (their) gation against manager Bowman and hopes to speak with Judge tions to wireless network providers. the dispute could be in court several arguments.” and his company, but later with- Alexander. But Adell said Friday the price more years. The Novi Expo Center opened in drew from that case. The firm “I want to be able to talk with the had jumped after the FCC last week “That’s the judge’s decision. I 1992 on what was once the head- claims Children’s Trust, a partner- judge if I can. I’m a landowner and announced it had entered a “state- don’t agree with it,” he said. “I think quarters of Adell Industries, a maker ship of three trusts in the names of taxpayer in Oakland County,” he ment of intent” deal with Canada (Judge Alexander) acts inappropri- of automotive guard doors. Owned Kevin Adell’s late father, Franklin, said. “I’m not going to be disrespect- and Mexico that could govern re- ately. He’s not a party in the case, at the time by Adell Brothers Chil- and brothers Marvin and Robert, ful, I’ll be courteous … (but) like me purposing the TV spectrum for mo- but he seems emotionally involved dren’s Trust, it had been vacant didn’t pay about $200,000 in legal or not, I expect a fair trial. And if I bile broadband on international in it. Since my last name is Adell, it since 2005. Then-manager Blair bills. It obtained a judgment of don’t agree with the decision from borders. He now expects to fetch doesn’t mean I owe the judgment. Bowman moved the center’s event more than $428,600 last year. that, I’ll take it through appeals.” $423 million for the station, if he The trust that (previously owned management company off the site The firm contends the Adell-con- Lippitt could not be immediately can finalize a relinquishment sale the Expo Center) does.” into what is now Suburban Collection trolled Kevin Adell/STN.com Inc. cre- reached for comment after the Fri- and take the station off the air in Grant on Friday declined to re- Showplace in Novi. ated a 2013 mortgage for the trust, day decision. A partner at his firm, first-quarter 2016. Ⅲ move Alexander over what Adell’s at- Hyman Lippitt, the former law then foreclosed on it, because it cre- Daniel McCarthy, noted that Lippitt’s Chad Halcom: (313) 446-6796 torney claims were “inappropriate, firm of Lippitt O’Keefe Gornbein PLLC ates a claim on the Expo Center current law firm won an award this Twitter: @chadhalcom MARKET REAL ESTATE PLACE AUCTIONS COMMERCIAL PROPERTIES COMMERCIAL PROPERTIES OFFICE BUILDING BUSINESS OPPORTUNITIES DATE and TIME OF AUCTION û ORION TOWNSHIP û SEPTEMBER 4, 2015 OAKLAND COUNTY 10:00 a.m. (eastern standard time) 475 ft. of Lapeer Rd. Frontage with 11 Arces OFFICE BUILDING ½ Ownership in 1997 Citation Bravo in operation in Orion Township. Backs up to the Polly available immediately, part 135, based at THE MACOMB MUSIC THEATER Anna Trail. Walking distance to Village of Flint Area Pontiac-Oakland County Int’l Airport. (Liquor License Included) Lake Orion. Stoplight in front of proprortey. 18 Hole Course Call Joe Carroll at JetBrokers, Inc. Call ~ 248-884-9171 Of¿ ce: 248-666-9800 | Mobile: 248-505-0570 or by Order of the U.S. Bankruptcy Court Restaurant/Banquet Facility Email: [email protected] Eastern District of Michigan Financing Available Southern Division Honorable Marci M. McIvor Core Commercial Real Estate Residential Lots ~ Oakland County Two (2) 1,500 Sq. Ft. Suites, Close to Chrysler BUSINESS SERVICES Case No. 15-43593-MBM Grand Blanc ~ Holly ~ Fenton ~ Milan [email protected] / 586-992-8800 Campus &I-75. Cedar Covered Front Porch, Priced below Market with Special Builders Terms Alarms, Forced Air Heat with Air Conditioning. Macomb County’s largest entertainment All lots with City Water & Sewer ~ Paved Roads Raise Business Capital in SEC Compliance. Lease or Sell with Land Contract Terms. Multi-tennant Building ~ Clinton Township Offer Equity, Debt or Crowdfunding. venue originally built in 1921 by acclaimed architect C. Howard Crane. 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16 CRAIN’S DETROIT BUSINESS // AUGUST 24, 2015 In 2011, nonresidents who INCOME TAX work in the city pay FROM PAGE 1 38 percent of 1.2 percent. nities were left out of the legislation. Detroit Saginaw City “I’m a little caught off guard,” Heartwell said after Manager Tim learning that the legislation only included Detroit. residents Morales said the “We were all on the same page about this, I thought.” worked in the proposed legisla- Heartwell said he has met with Detroit Mayor tion “should apply Mike Duggan and several of the other communities city and the to every city that that charge an income tax about ways to make collec- rest in the collects local tax.” tion a requirement for suburban employers. suburbs. He said it would Income tax bill sponsor Rep. Al Pscholka, R- be easier for em- Stevensville, was not available Friday to comment on ployees to have the matter. employers withhold taxes rather than they paying esti- “From the city’s perspective, it’s easy for those em- mates on themselves if they work in the city. “The way it ployees working outside the city to slip under the is now, many of the companies in the area voluntarily radar and not pay the required taxes,” Heartwell said. withhold taxes for the city. So this (legislation) is not very “We don’t know how many we’re missing, so we significant for us.” wanted to make it easy on those citizens by having In fact, many large suburban Detroit companies the companies withhold the tax and make it easy on already withhold personal income tax for its employ- us by not having to track them down.” ees residing in the city. Grand Rapids is one of the exceptions in Michigan David Waymire, partner at Lansing-based public in that it collects income tax at a rate of 1.5 percent for relations and strategy firm Martin Waymire Advocacy residents and 0.75 percent for nonresidents that work Communications Inc., said the legislation was written in the city. The majority of the 22 cities impose an in- to curry favor from Duggan supporters for the still- come tax of 1 percent on residents and 0.5 percent on pending Republican-led road funding package. nonresidents. Detroit has the highest rate with its resi- dents who live and work in the city paying 2.4 percent; SEE NEXT PAGE

about 13 offers from competing health insurers MOLINA based in Michigan and elsewhere before selecting FROM PAGE 3 Molina. State watch list Because of the Healthy Michigan expansion and other changes brought about by a rebid of contracts On March 9, the Michigan Department of Insurance this year under Medicaid, Genord said, HealthPlus’ and Financial Services placed HealthPlus under state fi- Medicaid business was a “very positive asset. Some enue (Corktown).” nancial supervision because losses in 2014 lowered its saw our 95,000 members and the value in that.” INDEX Areas like the west side, northeast capital reserves below the required state minimum. Genord said HealthPlus selected the Molina finan- FROM PAGE 3 side and the southwest side have In May, Molina announced it would acquire the cial package over the other bids because of amount compiled the decade’s worth of data not rebounded like Woodward and Medicaid and MIChild business units of HealthPlus and because of the insurer’s ability to work with them from Realcomp for the Federal Re- the east riverfront because of a vari- for an unspecified price. Molina has declined numer- in the transition phase. serve Bank of Chicago. “It’s where ety of factors, said Austin Black II, ous interview requests on the transaction. “This was the best offer to retain jobs and allow us City Living Detroit the investment is going.” president of , a De- Over the past two years, HealthPlus lost $60 mil- to move forward with our core HMO and Medicare The home sale prices are part of a troit-based real estate brokerage lion in its Medicaid, Medicare Advantage and com- Advantage business,” Genord said. larger project for Traub that will firm. For example, these parts of mercial HMO and PPO business, according to state Financial factors serve as an economic index for De- town have had fewer large public- regulatory filings and interviews. troit, and is expected to be used by or philanthropic-led economic de- “It was a perfect storm as all products lost money,” A variety of actuarial miscalculations, higher-than- the Fed and the city for a variety of velopments. Crime and education said Graham Smith, HealthPlus vice expected medical utilization and purposes. Other economic data will are also factors with different trends president of sales and marketing. “The (Affordable a flood of new PPO clients led to in different neighborhoods. include things like income and em- By the end of this year, Genord Care Act) HealthPlus underpricing its vari- ployment figures, he said. Even areas along Woodward like said, commercial HMO and ous products the past two years, Jerome Huez, president of Detroit- the neighboring Palmer Woods and Medicare Advantage business market Genord said. based The Loft Warehouse, agreed Sherwood Forest neighborhoods — will achieve a $20 million turn- didn’t “There were multiple factors,” that the real estate investment wave is far from the investment interest in around. he said. “Past financial models fanning out from the city’s core. the greater downtown area — seem Genord, currently chief med- serve us didn’t serve us well in the future “Obviously the market recovery to be improving at a steady clip. ical officer, will succeed CEO well the market. We had new member- stems from downtown, pushing That’s because during the eco- Nancy Jenkins on Sept. 1. Jenkins, ship, (many of whom) were un- through Midtown and the east nomic collapse and the foreclosure a HealthPlus employee for 32 past derwritten for the first time, (and riverfront,” he said. crisis, residents in those areas did years, took over for Bruce Hill, who years.” it) led to significant losses we did- “You also see pockets of value in- proactive things like starting vacant resigned last October after five years n’t predict.” creases in various neighborhoods. home committees that kept track of at the helm. Mike Genord,HealthPlus Genord said HealthPlus’ vari- The recovery of Detroit is mostly fo- the homes going vacant, Black said. As the first physician CEO of ous preferred provider organiza- cused on downtown, where em- “They were able to prevent a lot HealthPlus in its 36-year history, Genord said the past tion products with employers and individuals haven’t ployment and services are now sim- of the blight that occurred in some six months have been difficult for the nonprofit performed well for several years. ilar to a ‘normal’ U.S. city. of the neighborhoods,” Black said. health plan. “At year end, we expect to be out of the PPO mar- “That availability attracts people “And as we came out of the reces- By the end of this year, Genord said, HealthPlus will ket,” he said. “The (Affordable Care Act) market didn’t and investors, and as density in- sion and people wanting a single- become a 70,000-member company with $500 million serve us well the past years.” creases, the property value pro- family home started looking in the in revenue and about 200 employees. In 2014, Health- Genord said HealthPlus also is phasing out its PPO gresses along the major axis: Wood- city, those were the first neighbor- Plus generated nearly $1 billion in revenue with more contracts with employers at the end of this year. Ⅲ ward (Midtown and New Center), hoods they went to.” than 221,000 covered lives and 500 employees. HealthPlus has 43,000 PPO members. Jefferson (east riverfront), Gratiot Kirk Pinho: (313) 446-0412 Genord said HealthPlus downsized its workforce “We have informed our customers and are looking (Eastern Market) and Michigan Av- Twitter: @kirkpinhoCDB by a combination of natural employee attrition, vol- to move to self-funded options for our PPO cus- untary separation with outplacement services with tomers and offer PPO projects with other health in- more than 100 employees participating, and an un- surers,” he said. specified number of layoffs. Before joining HealthPlus in 2013, Genord, an ob- The unspecified amount of capital infusion from stetrician-gynecologist, was in private practice for 17 Molina will allow HealthPlus to restructure and focus years and affiliated with William Beaumont Hospital on strengthening and increasing its 52,000-member and United Physicians Inc., a Bingham Farms-based commercial HMO and 18,000-member Medicare Ad- physician organization. vantage service lines, Genord said. “I am excited about the turnaround we had this Smith predicted HealthPlus will break even this year with the executive team, employers, community year with a risk-based capital ratio of 300 and “signifi- and employees all going forward,” said Genord. “We ANDREW JAMESON/WIKIPEDIA cant capital in the bank.” Risk-based capital is a ratio have paid our bills, taken care of our employees and Even areas near Woodward,such as the Palmer Woods (above) and Sherwood Forest that compares a company’s reserve capital to its risk are proud of what we went through. We have grown neighborhoods — far from the investment interest in the greater downtown area — seem exposures. as an organization.” Ⅲ to be improving at a steady clip. Genord, who conducted the due diligence on the Jay Greene: (313) 446-0325 business unit sale process, said HealthPlus looked at Twitter: @jaybgreene 20150824-NEWS--0016,0017-NAT-CCI-CD_-- 8/21/2015 6:25 PM Page 2

CRAIN’S DETROIT BUSINESS // AUGUST 24, 2015 17 FROM PREVIOUS PAGE Cities with income tax then employers need to withhold them moving there. Although some tax from you,” he said. “It shouldn’t tend to overlook these (taxation fac- CRAIN’S Albion, Battle Creek, Big Rapids, “Clearly, the right policy is for the apply only to cities with popula- tors) for the (lifestyle),” he added. DETROIT BUSINESS state to do all it can to assist cities in Detroit, Flint, Grand Rapids, Grayling, tions of 600,000 or more (such as However, he said, the administra- www.crainsdetroit.com Hamtramck, Highland Park, Hudson, collecting local income taxes owed Detroit). tive effort involved in the change is Editor-in-Chief Keith E. Crain by their citizens. But some in the Ionia, Jackson, Lansing, Lapeer, “The other thing is we don’t want minimal, especially for a larger com- Group Publisher and Editor Mary Kramer, (313) 446-0399 or [email protected] state’s business community have Muskegon, Muskegon Heights, to create disincentives to living in pany. His company already has soft- Associate Publisher Marla Wise, (313) 446-6032 been opposed to this policy, and Re- Pontiac, Port Huron, Portland, the cities,” he said. “Most of the ware programmed to withhold De- or [email protected] Executive Editor Cindy Goodaker, (313) 446-0460 publicans have generally supported Saginaw, Springfield, Walker Michigan cities are down-and-up troit income tax from the paychecks or [email protected] the business community over the cities. They all are trying to revitalize of employees who are Detroit resi- Managing Editor Jennette Smith, (313) 446-1622 or [email protected] interests of local governments,” It’s also not clear if other lawmak- themselves and be attractive in get- dents but work in the suburbs. Director, Digital Strategy Nancy Hanus, (313) 446- Waymire said. ers may propose an amendment or ting people to move there.” “The legislation would not affect 1621 or [email protected] Managing Editor/Custom and Special Projects “Likely the only reason this issue alternative legislation on the in- In 2011, 38 percent of Detroit res- our administrative tasks because Daniel Duggan, (313) 446-0414 or is moving for Detroit has to do with come tax issue. idents worked in the city, while 62 we are already doing it for all our [email protected] Assistant Managing Editor Kristin Bull, the House leadership’s efforts to win Because the legislation is newly percent of city residents were em- clients,” Beltz said. (313) 446-1608 or [email protected] votes for its transportation package, out of committee, Sobota hopes Pon- ployed in the suburbs, according to Brad Williams, vice president of Senior Editor/Design Bob Allen, (313) 446-0344 and a desire to win votes from city tiac’s financial director and others statistics kept by the Citizens Re- government relations for the De- or [email protected] Senior Editor Gary Piatek, (313) 446-0357 lawmakers.” will point out the exclusion of other search Council. troit Regional Chamber, said Cham- or [email protected] Republican lawmakers are dis- cities and try to get the bill revised. Chris Beltz, human resources di- ber officials have been providing Research and Data EditorSonya Hill,(313) 446-0402 or [email protected] cussing a compromise road funding Eric Lupher, president of the Citi- rector for Human Capital LLC in feedback on the city income tax Web Producer Norman Witte III, (313) 446-6059 package that could allow Detroit to zens Research Council of Michigan, Rochester Hills, where he manages issue to the mayor’s office. The or [email protected] Editorial Support (313) 446-0419; YahNica Craw- spend 20 percent of new transit said it wants equality for all, sug- HR for 150 client companies, thinks Chamber leans in favor of the pro- ford, (313) 446-0329 funding on mass transit. gesting that every one of the state’s the proposed legislation could have posal but raised concern about the Newsroom (313) 446-0329, FAX (313) 446-1687 , Duggan is on board with the new 276 cities should require employers a negative impact on people, partic- burden on small business. TIP LINE (313) 446-6766 road funding package. However, to withhold city income taxes from ularly millennials, moving to the In the bill, small businesses — REPORTERS there’s no indication that his sup- employees. city of Detroit. those with fewer than 10 employees Jay Greene, senior reporter Covers health care, in- surance, energy, utilities and the environment. port is a quid pro quo for the in- “The solution to the problem at “If millennials become more and less than $500,000 in wages — (313) 446-0325 or [email protected] come tax legislation. hand is if you live or work in a city, aware of these costs, it may hinder would be exempt. Ⅲ Chad Halcom Covers litigation and the defense in- dustry. (313) 446-6796 or [email protected] Tom Henderson Covers banking, finance, tech- nology and biotechnology. (313) 446-0337 or [email protected] fields from youth sports to profes- industries, such as motorsports, Kirk Pinho Covers real estate, higher education, FOOTBALL sional sports used by FIFA, the NCAA aerospace and defense. Coastal Oakland and Macomb counties. (313) 446-0412 or FROM PAGE 3 [email protected] and the NFL,” Audi said. “Though a supplies its foam product to every Bill Shea, enterprise editor Covers media, NASCAR advertising and marketing, the business of cant financial investment in diversi- lot of what we’re doing with (Vicon- team in as well as for track sports, and transportation. fication,” Audi said. “I have been in ic Sports) could rely on governmen- barrier applications, said Wendel (313) 446-1626 or [email protected] Lindsay VanHulle, Lansing reporter. (517) 657- the automotive industry long tal regulations.” Martin, commercial director for 2204 or [email protected] enough to know that another down In June, the NFL invited Oak- the supplier. It also supplies safety Dustin Walsh Covers the business of law, auto suppliers, manufacturing and steel. (313) cycle will occur, whether it is two wood to present its technology to foam to military units for helmets 446-6042 or [email protected] years down the road or five. We COURTESY OF THE OAKWOOD GROUP Congress as part of a briefing, “Giz- and to aerospace for seating. Sherri Welch, senior reporter Covers nonprofits, services, retail and hospitality. (313) want to have new revenue streams The Oakwood Group’s energy-absorbing mos, Gadgets and America’s Game: Martin said automotive applica- 446-1694 or [email protected] in other industries to offset that plastics can be found in “blast mats” that How Technology Is Advancing tions are 90 percent of Coastal’s ADVERTISING down cycle.” line the floor and seats of military vehicles. Health and Safety in the business, but it has no Sales Inquiries (313) 446-6032; FAX (313) 393-0997 Neurocognitive research NFL,” sponsored by the plans to reduce that figure. Sales Manager Tammy Rokowski grams last fall. Congressional Brain Injury “We get a lot of inquiries Senior Account Executive Matthew J. Langan Advertising Sales Christine Galasso, Catherine Currently, the majority of Oak- Earlier this year, an NFL-com- Task Force. from other industries and Grace, Joe Miller, Sarah Stachowicz wood’s sales, 65 percent, are in missioned study found that roughly The NFL is expected to we’ll support as needed, Classified Sales Manager Angela Schutte, (313) metal speaker grills, or in-car speak- one in three retired NFL players rule whether Viconic Sport- but we’re still very focused 446-6051 Classified Sales Lynn Calcaterra, (313) 446-6086 er covers, for dozens of models in- would develop a serious neurocogni- ing will receive the addi- on automotive,” Martin Audience Development Director Eric Cedo cluding the upcoming Tesla Model tive condition from head trauma, The tional $1 million in devel- said. “We still see a lot of Events Manager Kacey Anderson X. The remaining automotive busi- Los Angeles Times reported earlier opment funding in growth for our product in Creative Services Director Pierrette Templeton Senior Art Director Sylvia Kolaski ness is the energy absorbers, which this year. Furthermore, 76 of 79 re- September, Audi said. Wendel Martin: automotive; we’re still try- Marketing Coordinator Ariel Black is leading to new opportunities. tired players examined at Boston Uni- Other applications Oakwood rival still ing to grow that market Special Projects Coordinator Keenan Covington In November 2014, Viconic Sport- versity showed signs of brain dys- focused on auto. share.” Sales Support Suzanne Janik, YahNica Crawford ing Inc. Editorial Assistant Nancy Powers , an Oakwood subsidiary function. Viconic isn’t limiting it- Only 5 percent of Oak- Production Manager Wendy Kobylarz created to license the energy-ab- “Our goal is to enhance the head self to sports fields. Audi said there wood’s revenue comes from non- Production Supervisor Andrew Spanos sorbing technology, was selected impact protection and safety of syn- is potential for the same product to automotive industries, but Audi re- CUSTOMER SERVICE as one of seven finalists for the thetic turf systems without sacrific- be used at playgrounds and “green” mains resolute in reducing the Main Number: Call (877) 824-9374 Head Health Challenge II initiative ing the speed and playability of rooftops as well. company’s exposure to the indus- or [email protected] Under Ar- Subscriptions $59 one year, $98 two years. Out of sponsored by the NFL, those surfaces,” Audi said. “The ini- Building owners, particularly try. state, $79 one year, $138 for two years. Outside mour Inc. and General Electric Co. Vi- tial test data … shows the potential those looking for LEED certifica- “Diversification is the number U.S.A., add $48 per year to out-of-state rate for sur- face mail. Call (313) 446-0450 or (877) 824-9374. conic was the only private compa- of our underlayment system to tion, can use Viconic’s absorbers to one strategic initiative of our com- Single Copies (877) 824-9374 ny selected as part of the contest meet that goal.” retain water, prevent runoff and pany,” Audi said. Reprints (212) 210-0750; or Krista Bora at [email protected] from a pool of 500 proposals from Audi believes Oakwood, and Vi- protect the roof from impact dam- “We won’t rule out acquisitions if To find a date a story was published (313) 446- 19 countries. conic, can reach $10 million to age from falling trees, debris, etc. they make sense, but our prefer- 0406 or e-mail [email protected] Crain’s Detroit Business is published by The company received $500,000 $15 million in revenue related to Viconic Sporting already has a ence is organic growth. It allows us Crain Communications Inc. to design “disruptive” technologies turf underlayment with a 33 percent contract with Warren-based Warrior to set up product development and Chairman Keith E. Crain to protect against brain injuries. market share. Sports Inc., which uses the impact manufacturing according to our President Rance Crain Treasurer Mary Kay Crain Brain trauma is a serious concern “(We want) to become the lead technology in its Regulator lacrosse business culture and creates greater Executive Vice President/Operations for the NFL, which recorded 45 of manufacturer of turf underlay- helmet. Warrior has sold roughly opportunity to promote from with- William A. Morrow Executive Vice President/Director of Strategic the top 50 most-watched TV pro- ments … this could include athletic 40,000 Regulator helmets, said in, which is very important to us (as Operations Chris Crain Matthew Gerwolls, director of sales a family company).” Executive Vice President/Director of Corporate Operations KC Crain and marketing for Oakwood. Paul Blanchard, director of engi- Vice President/Production & Manufacturing INDEX TO COMPANIES Oakwood also created Viconic De- neering plastics for IHS Chemical Inc. Dave Kamis These companies have significant mention in this week’s Crain’s Detroit Business: fense LLC to license its energy-ab- in Houston, said Oakwood’s use of Chief Financial Officer Thomas Stevens Chief Information Officer Anthony DiPonio Adell Broadcasting ...... 15 18 The Loft Warehouse ...... sorbing plastics to protect soldiers thermoplastic is innovative and its G.D. Crain Jr. Founder (1885-1973) Automation Alley ...... 8 McLaren Performance Technologies ...... 4 in vehicles from improvised explo- only limitations in expansion is with Mrs. G.D. Crain Jr. Chairman (1911-1996) Beztak Cos...... 5 Michigan Economic Development Corp...... 1 Editorial & Business Offices Burton-Katzman...... 5 Michigan Municipal League ...... 4 sive devices, Audi said. its design team. 1155 Gratiot Ave., Detroit MI 48207-2732; City Living Detroit ...... 18 Molina Healthcare of Michigan ...... 3 The supplier commercialized the “Their technology is useful for its (313) 446-6000 Cable address: TWX 248-221-5122 AUTNEW DET Coastal Automotive ...... 17 Nemeth Law ...... 11 product as “blast mats” that line the (low) cost, performance and flexi- CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is Deloitte ...... 4 Oakwood Group...... 3 floor and seats of tactical vehicles bility,” Blanchard said. “Because of published weekly, except for a special issue the Detroit Regional Chamber ...... 16 ProfessionalMovers.com ...... 8 manufactured by military contrac- the lower-cost process and the use third week of October, and no issue the fourth DevMar Development ...... 5 R.G. & G.R. Harris Funeral Homes ...... 11 week of December by Crain Communications Inc. tor OshKosh Defense LLC. of material that is light and resilient, at 1155 Gratiot Ave., Detroit MI 48207-2732. Peri- Garceau Insurance Agency ...... 10 St.John Providence Health System ...... 12 odicals postage paid at Detroit, MI and additional General Motors ...... 4 St.Joseph Mercy Health System ...... 12 Rochester Hills-based Coastal Au- all they have to do is look at the mailing offices. POSTMASTER: Send address Gordon, Laughbaum & Prescott...... 11 Small Business Association of Michigan ...... 10 tomotive LLC competes with Oak- world as a designer and see what changes to CRAIN’S DETROIT BUSINESS, Circula- tion Department, P.O. Box 07925, Detroit, MI HealthPlus of Michigan ...... 3 Starkweather Lofts...... 5 wood for the same automotive other opportunities they can come 48207-9732. GST # 136760444. Printed in U.S.A. Jackson Lewis ...... 9 Visteon ...... 4 clients, supplying energy-absorbing up with.” Ⅲ Entire contents copyright 2015 by Crain Commu- Kotz Sangster Wysocki ...... 10 Wayne State University...... 8 nications Inc. All rights reserved. Reproduction or foam for doors and headliners. Dustin Walsh: (313) 446-6042 use of editorial content in any manner without It has also diversified into new Twitter: @dustinpwalsh permission is strictly prohibited. 20150824-NEWS--0018-NAT-CCI-CD_-- 8/21/2015 5:51 PM Page 1

18 CRAIN’S DETROIT BUSINESS // AUGUST 24, 2015 MEDC FROM PAGE 1 Lottery ticket machines may be stopped making revenue-sharing payments two months ago. The state could face unexpected unwelcome competition budget deficits if tribes decide to withhold payments, as the Michigan Are Michigan Lottery ticket ma- them to eliminate payments to the Economic Development Corp. dis- chines competition to a full- state altogether if the state allows closed last week. And, since states are fledged tribal casino? electronic games in a commercial barred from taxing tribes or It’s a question that is under re- gaming facility within its market otherwise forcing them to fork over view as part of the dispute over area. The compact defines a com- cash under federal law, there’s no whether the state’s online gam- mercial gaming facility as offering easy remedy. bling precludes tribal casinos more than five electronic games, re- The state proceeds from online from revenue-sharing obligations. gardless of whether they’re operat- lottery operations are not linked to In February, the lottery’s chari- ed by the lottery. economic development; that fund- table-gaming division launched a A separate provision allows the ing goes toward the state’s School pilot program with the National tribe to cut payments in half if the Aid Fund. Net proceeds from online Guard Association of Michigan to test state authorizes the lottery to offer lottery sales — the total amount 60 ticket-dispensing machines, electronic games. played minus the amount paid to similar to pull-tab games, in 20 lo- The state maintains that the winners and other administrative cations across the state, said Jeff machines, operated as part of costs — total $15.9 million so far in Holyfield, spokesman for the state charitable gambling, aren’t true 2015, according to the state. Still, lottery. They’re set up in buildings competition to the tribal casinos. the Match-e-be-nash-she-wish Band that house veterans’ and social “This is a business agreement. of Pottawatomi Indians — the full for- clubs. The tribe believes that they have mal name of the Gun Lake Tribe — Two in particular are in Allegan an interpretation of the business believes the state broke the non- and Ingham counties, within the agreement that the state doesn’t compete provision of its compact Gun Lake Tribe’s nine-county mar- agree with,” said Dave Nyberg, when the Michigan Lottery started to ket area that stretches from Ot- Snyder’s associate legal counsel sell online games last summer. The tawa County south to Kalamazoo and tribal liaison, who is based in tribe says this possibility was dis- County. Marquette. “We continue to have cussed when its compact was nego- The tribe thinks those ticket-dis- discussions with the tribe about tiated in 2007. pensing machines trigger a provi- resuming their obligations.” Ⅲ The state disagrees that it violated sion in their compact that allows Lindsay VanHulle the compact by expanding the lot- tery, both via games on its website and new electronic ticket-dispensing Other tribes stopped paying machines. (See related story, this Gun Lake is not the first American Indian tribe to stop making revenue-sharing page.) payments in protest of state authorizations of other casino operations. Regardless, the Gun Lake Tribe yanked its payments in June. Six tribes that signed the first gaming compacts with the state in 1993 Changing markets statement it made a payment in De- stopped making payments by 1999 after voters authorized Detroit’s three Lean times ahead? Tribes may not like Internet lot- cember 2014, despite its belief the commercial casinos, state data show. Other tribes stopped payments in the teries — an attorney for the Sault tribe was not required to do so. The loss of that single payment mid-2000s when the state lottery introduced Club Keno, only to resume tribe said most, if not all, of the Nyberg said meetings are ongo- blew a $7 million hole in the making them upon reaching a court settlement with the state. state’s 12 tribes that operate casinos ing, but would not disclose what is MEDC’s year-end budget, ending Separately, Gov. Rick Snyder’s administration is two years into negotiating new are “deeply concerned” about ex- being discussed. Sept. 30, accord- gaming compacts with six of the original tribes, whose 20-year contracts pansion — but they’re here to stay. Future of gaming ing to the effectively ended in 2013. They include Bay Mills Indian Community; Grand Nationally, the expansion of state agency. Its CEO, Traverse Band of Ottawa and Chippewa Indians; Hannahville Indian lotteries routinely is cited in tribal A 2011 U.S. Department of Justice Steve Arwood, Community; Lac Vieux Desert Band of Lake Superior Chippewa Indians; disputes over revenue sharing, said ruling paved the way for online lot- warned of lean Saginaw Chippewa Indian Tribe; and Sault Ste. Marie Tribe of Chippewa Eric Dahlstrom, a tribal law attor- teries by lifting a ban on Internet times ahead as Indians. Tribe revenue-sharing agreements were spelled out in a federal ney with The Rothstein Law Firm in gambling with the exception of the agency reor- consent decree. But payments stopped after voters in 1996 approved what Tempe, Ariz., who is not connected sports betting. ganizes to com- would become Greektown, MGM Grand and MotorCity casinos in Detroit. to the Gun Lake case. Today, the Michigan Lottery pensate for Ongoing negotiations are thought to be a way for Snyder’s administration to As for the Gun Lake Tribe’s com- counts 160,000 registered online Steve Arwood: fewer dollars. reinstate some form of revenue sharing with these tribes, though his team will pact, which authorizes the Gun Lake players and growing, spokesman Jeff MEDC needs tribal Layoffs are pos- not discuss bargaining items. Casino, the terms of the arrangement Holyfield said. Overall, it’s still small casino dispute sible. call for a graduated revenue-sharing business — Holyfield said net pro- resolved. The MEDC system. The revenue sharing ranges ceeds from digital games are just 2.3 has not yet said lion budget, but lawmaker scrutiny March 31, 2014, according to figures from 8 percent of net winnings up to percent of the entire lottery’s net what programs or services could be and pressure to cut costs has its op- from the Michigan Gaming Control $150 million to 12 percent of net winnings. cut or changed, nor how many em- erating budget in flux. State officials Board. winnings of at least $300 million. But by 2022, the state is project- ployees could lose their jobs. The couldn’t provide a current year or FY That was nearly a quarter of the A tribe statement said both par- ing online lottery sales will have agency declined to make Arwood or 2016 agency budget on Friday. MEDC’s total tribal revenues of ties knew the beginning of online netted an additional $480 million in other administrators available for “It goes without saying that the $56.9 million that year, data show. state gaming would change the re- revenue, Holyfield said. That’s be- an interview last week. scale and scope of our program The money contributed by five lationship. cause of increased options to reach But in a statement, Arwood said must be reduced,” Arwood’s state- tribes — Gun Lake, Little River Band “At that time, it was clear that In- customers on smartphones, tablets the financial effects could double in ment said. of Ottawa Indians, Little Traverse Bay ternet lottery sales would result in and laptops. the 2016 fiscal year that starts Oct. 1 if Where funding goes Bands of Odawa Indians, Pokagon elimination of (the) tribe’s state rev- “This is part of our overall digital a resolution on the tribal casino rev- Band of Potawatomi Indians and the enue-sharing payments,” the tribe strategy,” he said. enue sharing isn’t reached and the The MEDC this spring was the Keweenaw Bay Indian Community — said in a statement, declining to But because the questions on Gun Lake tribe forgoes its biannual target of lawmakers who proposed have funded MEDC community de- elaborate. “Both parties agreed that how tribal casinos and online gam- payments this fall and next spring. yanking the roughly $60 million in velopment, business attraction and if the state introduced Internet lot- ing can operate in tandem remain The MEDC says it also faces a annual tribal gaming revenue as tribal business programs, agency tery sales or expanded other forms unsettled, Dahlstrom said he be- roughly $15 million year-over-year part of a road-funding solution — a spokeswoman Kathy Achtenberg of electronic gaming to social clubs lieves there will be more cases that budget cut to its business attraction proposal that hasn’t gone any- said. (See chart, this page.) Tribal within the tribe’s market area, that review the terms of state compacts. and community revitalization fund- where. funds also are used to pay for pro- the tribe would not have to make “The fact that it’s run by the state ing as of Oct. 1. The Legislature also An important caveat to the state grams such as Pure Michigan Busi- state revenue-sharing payments.” versus a private entity isn’t really rel- recently eliminated the state’s film funding puzzle: Tribal revenue- ness Connect, which matches com- Dave Nyberg, Snyder’s associate evant,” Dahlstrom said. “The tech- incentives program. sharing funds are not subject to any panies with in-state vendors and legal counsel and tribal liaison, who nology is changing within the lot- The MEDC was reorganized ear- kind of state appropriations process suppliers. is based in Marquette, said despite tery world, so that as lotteries start lier this year under the state’s De- that works through the Legislature. Revenue sharing from the Not- the disagreement over the issue, the to figure out how to use the Internet partment of Talent and Economic De- They are direct payments. tawaseppi Huron Band of Potawatomi relationship between state officials … it changes the competitive field. velopment, which has a $1.2 billion The Gun Lake Tribe, which oper- Indians, meanwhile, funds the Michi- and Gun Lake tribal officials is ami- And I think we’re going to see more budget for fiscal year 2016. ates a namesake casino in Allegan gan Strategic Fund and does not di- cable, and both sides still believe a of that.” Ⅲ In May, the MEDC alone was County, paid $13.3 million to the rectly support MEDC operations, resolution can be reached. Lindsay VanHulle: (517) 657-2204 working with a proposed $403 mil- state from Oct. 1, 2013, through Achtenberg said. Gun Lake’s tribal council said in a Twitter: @LindsayVanHulle 20150824-NEWS--0019-NAT-CCI-CD_-- 8/21/2015 6:21 PM Page 1

CRAIN’S DETROIT BUSINESS // AUGUST 24, 2015 19 ON THE WEB RUMBLINGS WEEK AUG. 15-21 Detroit Digits lesterol drug on heart health, Even with injury,Tigers rookie Comerica smoothing the path toward ap- A numbers-focused look at the proval, Bloomberg reported. Hatch contest week’s headlines: Ⅲ A planned second metro De- has promising future in retail troit location, in Birmingham, for narrows the Roasting Plant, a New York etroit Tigers pitcher Daniel 4.5% City-based coffee shop chain, has Norris, who has become a The yield on $245 million in bonds fallen through. D media darling thanks to finalists to 4 sold by the city of Detroit on Aug. Ⅲ A 500,000-square-foot logis- his eccentric story of living in a 19. It’s the city’s first bond sale since tics center for Linc, which serves VW van during spring training in he Comerica Hatch Detroit emerging from Chapter 9 auto equipment manufacturers, Florida, crushed a two-run home Contest narrowed its field bankruptcy on Dec. 10, 2014. The is coming to Detroit’s east side at run at Wrigley Field last week in a Tof startup finalists to four as bonds are reportedly 2 percentage the I-94 Industrial Park by 2016, AP victory over the Chicago Cubs. voting began at HatchDetroit.com for points higher than top-rated debt, reported. Linc is part of Warren- It was his first career at-bat. No the public to back one of the De- showing investors still remain based Universal Truckload Services, other American League pitcher has Aretha Franklin: Wants to open a troit-based businesses: Eskimo Jacks uncertain about the city’s future. owned by Manuel “Matty” Moroun hit a home run at Wrigley in its Detroit entertainment venue. Artisan Cookies + Ice Cream, Live Cycle and his family. 101-year history. History! Delight, Caribbean cuisine business $ Ⅲ The Zenith restaurant in the But in this star-crossed Tigers a renaissance and that she’s Norma G’s and wine bar/home 211,000 Fisher Building was to close Aug. 23 season, Norris later had to leave “going to be part of that renais- goods store The Royce Detroit. The value of incentives New York after a little more than a year in the game, a 15-8 Tigers win on sance.” Voting continues through noon City-based Chasing Light business. Wednesday, with a strain in his Franklin says the venue would Entertainment is eligible to receive Friday. The winner, to be an- OTHER NEWS right oblique muscle. He was put include “a five-star nightclub for nounced after business pitch pre- for its eight-part HGTV series that on the 15-day disabled list the dining and dancing, the band, the sentations at the Hatch Off event chronicles the renovation of the Ⅲ Restaurant and office space next day, likely ending his season. whole nine yards” as well as a mu- Friday, will receive a $50,000 grant Ransom Gillis mansion in Detroit. are planned for 565 Larned St. in The 22-year-old bearded lefty seum. from Comerica Bank and legal, The production company plans to Detroit after a $2.1 million July who surfs and reads Jack Kerouac Franklin says she’s found a po- marketing, accounting and other spend $844,125 to film the project, sale in which New Jersey develop- novels, electrified fans in his tential location downtown, with support. including the hiring of 12 Michigan er Mitchell Mekles bought the Tigers debut Aug. 2 by allowing details to be announced. She was residents. 30,000-square-foot building from one run in seven innings in a scheduled to perform Saturday at ON THE MOVE Bloomfield Township real estate four-hit victory. His performance Detroit’s Chene Park. company Princeton Enterprises. was more pedestrian in his next Ⅲ Larry Denton, former chair- 14 Ⅲ Lawrence Technological Univer- three starts. Madison Heights biz builds man, CEO and president of The years Dave Dombrowski spent sity pledged $3.5 million in schol- The Tigers and their conces- swanky beef jerky trailer Auburn Hills-based Dura Automo- as the president, CEO and general arship support to Sampson-Web- sionaire at Com- tive System, joined Dearborn ar- manager of the Detroit Tigers.He ber Leadership Academy students erica Park, Buffa- Madison Heights-based Triune chitectural firm Ghafari Associates was fired on Aug. 4, then hired by as it aims to prepare more Detroit lo, N.Y.-based Specialty Trailers has built a as president of its process group. the Boston Red Sox on Aug. 18. Public Schools students for sci- Sportservice, said tricked-out display trailer for The Denton, 65, was most recently ence, technology, engineering, they talked Beef Jerky Outlet, a rapidly grow- president of the Troy-based North arts and mathematics careers. about ordering ing chain based in Seymour, American headquarters for Nobel low-profit limited liability compa- Ⅲ The Urban Entrepreneur- some Norris Tenn. Automotive Group. ny, effective Oct. 1. The move is ship Symposium will return Oct. merchandise The $200,000 yellow trailer, Ⅲ Justice Mary Beth Kelly is retir- expected to help the organization 23 for its second year, this time at but didn’t end Daniel Norris: Hit called “The Experience,” has cus- ing from the Michigan Supreme cultivate new investment and the A. Alfred Taubman Center for up selling the a home run in his tom stairs, removable sign panels, Court to join Bodman PLC. Kelly, 53, new projects. Design Education at the College for prospect’s No. first career at-bat. a generator and Internet capabili- will be partner and vice chairman Ⅲ Sterling Heights-based Sun- Creative Studies in Detroit. The 44 jersey or T- ties for retail sales, Triune said in a of the Detroit law firm’s litigation nybrook Golf & Bowling Inc. is clos- brainchild of David Tarver, presi- shirt at the stadium. statement. and alternative dispute resolution ing, and the 140 acres of usable dent of the Urban Entrepreneurship If he heals and performs well It also has a rear door with a 12- practice group, effective Oct. 15. land it sits on is expected to be Initiative, the daylong symposium in spring training, Norris is ex- volt lift to allow disabled access to Ⅲ Executive turned into a development for a was at the University of Michigan pected to have a spot in Detroit’s the trailer’s retail and display Director Matt large-scale user, possibly automo- last year. More information is at 2016 starting rotation, and his space. Clayson has left tive-related, Crain’s sources said. urbanei.org. gear will show up for sale at the Additionally, it has a fold-out the Detroit Cre- Ⅲ Southfield-based supplier Lear Ⅲ The Detroit Regional Chamber ballpark and in metro Detroit stage with a custom-lighted tent ative Corridor Corp. acquired intellectual property is challenging a ballot initiative stores. that expands the trailer’s retail Center for an- and technology of Autonet Mobile to raise Michigan’s corporate in- At least one third-party seller space for use at large consumer other position, Inc., a Santa Rosa, Calif., software come tax to pay for roads by dis- has Norris apparel now. events and trade shows. the organiza- and device developer of automo- couraging voters to sign the pe- DetroitAthletic.com sells a Norris The Experience is outfitted with tion said. A tive applications. Financial terms tition by Citizens for Fair Taxes. No. 44 jersey from official Major custom stainless-steel-accented Matt Clayson: spokesman were not disclosed. Ⅲ A federal appeals court up- League Baseball apparel supplier graphic wraps and rivetless alu- Left Detroit Creative couldn’t say Ⅲ Ann Arbor-based Esperion held the corruption conviction Majestic Athletic for $109.99. minum skin, Triune said. Corridor Center. where Clayson Therapeutics Inc. said U.S. regulators and 28-year prison sentence of Also, the Toronto Blue Jays — “The idea for the trailer started is headed; a won’t require a trial to determine former Detroit Mayor Kwame Kil- the team that traded Norris to as a back-of-the-napkin sketch by search for a replacement has the effects of its experimental cho- patrick, AP reported. Detroit in return for ace pitcher the customer and evolved into a begun. David Price on July 30 — still has knock-your-socks-off shopping Ⅲ United Shore Financial Services Norris’ former No. 32 T-shirt for experience,” Harry Kurtz, president LLC in Troy promoted Melinda sale at the club’s online store of Triune Specialty Trailers, said in Wilner, 40, to its new COO posi- (jaysshop.ca). It’s discounted to a statement. “No detail was too tion. She had been executive vice $26.24 from the original $34.99 small, and the latest in trailer de- president of underwriting. price. sign and options were utilized.” Ⅲ Dan Austin, 34, a Detroit Free The chain is growing rapidly as Press assistant editor who has Aretha Franklin wants to America’s lust for salt-preserved documented the history of the open Detroit nightclub lean meat snacks has ballooned city’s buildings, was named into a $1 billion-plus industry. It Mayor Mike Duggan’s deputy com- Aretha Franklin says she wants to has 37 stores, with plans for 63 munications director. open a Detroit entertainment more. venue that would include a night- Triune Specialty Trailers man- COMPANY NEWS club and fine dining. ufactures customized, expand- The Queen of Soul told WWJ 950 able mobile trailers. Clients have Ⅲ Data Driven Detroit, the data in an interview broadcast Thurs- included NASCAR teams, Mit- collection and analytics service NATALIE BRODA day that she’s “glad that Detroit subishi Electric, the Library of Con- for foundations, governments The Detroit Fire Department on Friday unveiled five of its 10 new fire apparatus came through the bankruptcy gress, Cleveland-based Lincoln and other clients, will spin out trucks, built for the department by Snyder, Neb.-based Smeal Fire Apparatus Co. with flying colors.” She said that Electric and rapper Jay-Z’s Ro- from a nonprofit to become a Charlotte-based Spartan Motors Inc. supplied the chassis and cabs. she loves how the city is enjoying cawear. DBpageAD_DBpageAD.qxd 8/19/2015 11:43 AM Page 1 Thank You TO OUR 2015 MHCC GOLF OUTING SPONSORS SPONSORS THE MICHIGAN HISPANIC PRESENTED BY SILVER (CONT.) 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