20141020-NEWS--0001-NAT-CCI-CD_-- 10/17/20145:17PMPage1 ©Entire contentscopyright2014byCrainCommunicationsInc.Allrightsreserved Beaumont doc,Page23 Ebola FAQs answered by HQ movingbacktoDetroit ‘New’ Asterand,oldhome; entrepreneur alegup Granddaughter’s ideagives vember election. alliance meansfortheNo- Snyder, andwhattheir Duggan andGov.Rick politics, MayorMike the oddcoupleof besties, andalookat Warren Buffettbecame how DanGilbertand lage toBrightmoor. hoods, fromWestVil- city, includingneighbor- make thingshappeninthe what ittakestoactually supplement. wrote essaysforthe out theexpatswho are starting.Check ing andconversations Commitments arecom- Addict” NicoleCurtis. man” Gervinand“Rehab mer NBAstarGeorge“Ice- philanthropist EliBroad,for- their hometown.Theyincluded how theycouldre-engagewith cessful “expats”backhometosee brought 160ofthearea’smostsuc- Homecoming inSeptember.We was proudtoproducetheDetroit and investment.That’swhy on Detroit The BigBet NEWSPAPER www.crainsdetroit.com Vol.30,No.42 Page 3 Plus, don’tmiss We takeahardlookat To win,Detroitneedsmorejobs vestors andresidents. 2.0 bagged withthisissue, Our annual is aptlylabeled.Lots of folks ernor, mayor,in- supplement, poly- on Detroit:thegov- are Detroit betting Crain’s COURTESY OFDIVERSIFIEDRESTAURANTHOLDINGS $60 millioninrenovationsbytheendof2015. Greektown Casino-Hotelwillreceiveupto Greektown Casino-Hoteltomodernizewithnew look tomers inMichigan. B its electricvehiclesdirectlytocus- ‘Its’ anissue by onewordoflaw in Michigantightened Tesla’s saleslimits der’s signaturewouldmakeit harder for Tesla alreadyisbarredfrom CAPITOL CORRESPONDENT bill awaitingGov.RickSny- pronoun fromstatelaw,a y theremovalofapersonal B Y C Tesla MotorsInc. HRIS G COURTESY OFGREEKTOWNCASINO nishings, technologyupgradesandotherexpenses. AUTZ is doing,funnelingrealestatevalueintonewbarfur- Hungry forgrowthfunds Diversified optstosell,leasebackbuildings Tavern some ofthebuildings. — onewaytogetthemoneypayforitissell So that’swhatCEOandPresidentMichaelAnsley falo WildWings to sell Holdings Inc. you’re expandingyourrestaurantbusiness. OCTOBER 20–26,2014 As Southfield-based Nearly $25milliongoesalongwaywhen restaurants —plusrenovateexistingones chusetts SupremeCourt the can lawmakers,atthebehestof whether tosignit. has untilOct.21todecide Michigan’s lawincourt.Snyder tougher forTeslatochallenge pending billthatwouldmakeit herded throughbothhousesa Association ruling initsfavorfromthe nia-based companywonakey country. OnSept.15,theCalifor- similar bansinstatesacrossthe doing so,butithasbeenfighting CRAIN’S DETROITBUSINESS plans toopenthreeorfournew Seventeen dayslater,Republi- Here’s howithappened. Michigan AutomobileDealers and fivenew B look andimprovecustomers’experience.The to theDetroitcasinogiveitamoremodern ing $50millionto$60ontherenovations is the comingmonths. and upgradedfoodoptions,areonthetablefor no-Hotel Y K Athens AcquisitionLLC Renovations meanttorefresh Quicken Loans IRK , amendedandshep- ’s look,plusprovideeasiertrafficaccess P See Tesla,Page33 INHO Diversified Restaurant CRAIN’S DETROITBUSINESS Bagger Dave’sBurger B Y founder DanGilbert,isinvest- S MGM GRANDDETROIT, NOVEMBER 19@ 5 P.M. HERRI . REGISTER TODAY! REGISTER , whosesoleshareholder Massa- W ELCH Buf- OR CALL (313) 446-0300 Greektown Casi- JUMPING markets, metro Detroit interest highin low, tenant Vacancy rates R Clinton Township,alongwithothersinIndianaandFlorida. TI REALLY ETAIL “It’s awaytorecapitalize,”Ansleysaid.“Buildingstand- crainsdetroit.com/events Page 11 Lafayette mediantoprovidefastervaletservice. access tothecasino,andacurbcutout ramp nowunderconstructiontoprovidemore ing machinesandtechnologies,thenewI-375 HVAC systemtoimprovetheairquality. the ceilingstoanewfangled$12million-plus feel,” meaningchangesrangingfromfinisheson it asaboutiquehotelyet“withneighborhood plan istodifferentiatethecasinobypositioning Among otherplannedupgradesarenewgam- tal real estateinvestmenttrust 79,000 squarefeettoScottsdale,Ariz.-based and BaggerDave’sbuildingstotalingabout close ona$24.6millionsaleof11itsBWW Birch Run,CascadeTownship,Gaylord,and up to20moreyearsinfive-yearincrements. an initialtermof15yearswiththeoptionfor The company(Nasdaq:BAGR)expectsto The buildingsareinCantonTownship, by Nov.1.Itwillthenleasethembackfor $2 acopy;$59year See Diversified,Page32 See Greektown,Page31 Spirit RealtyCapi- BLOOMBERG ® 20141020-NEWS--0002-NAT-CCI-CD_-- 10/17/2014 4:09 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS October 20, 2014

MICHIGAN BRIEFS Parking’s pricey, so firm will move how long a person lives. The WELL project will start next year 300 more workers out of GR State redesigns world’s-best license plate so U C type and focus on wellness rather than California-based Advantage Sales diseases, MLive.com reported. & Marketing plans to move an addi- Apparently, the aphorism “Beauty is And so state officials recently released a Ⅲ The Michigan Court of Appeals tional 300 workers from downtown in the eyes of the beholder” applies even tweak of the plate, which, The Associat- ruled that Jackson-based Con- Grand Rapids to a suburban office to something as innocuous as a license ed Press notes (and you can see for your- sumers Energy will not be held re- because it no longer wants to pay plate. self here) has “a more subtle yellow-or- sponsible for a 2009 fire and explo- for parking, MLive.com reported. Last year, the Michigan license plate, ange background with black letters. sion that forced more than 4,500 Advantage Sales already has featuring the Mackinac Bridge against a COURTESY OF STATE OF MICHIGAN Michael Yott Jr. of the St. Clair Shores people to be evacuated in the Clio moved its sales department to an of- bright orange sunset with white letters, Police Department collected more than area north of Flint, MLive.com re- fice near I-96 in Cascade Township. was voted the world’s best license plate by the Auto- 700 signatures on an online petition to replace the ported. The courts said the statute By the end of the next year, it plans mobile License Plate Collectors Association. Which, plates. of limitations barred Consumers to move about 270 more employees. among other things, tells you that members of the “We made some changes to the design after a year from being added as a defendant. The cost of employee parking is association don’t go on many high-speed chases. But to ensure it can be very easily read in all conditions, Ⅲ Flint will lose an estimated getting too high, said Bonnie Mor- police officers do. particularly at night,” said Fred Woodhams of the $400,000 a year because General Mo- And police officers have this thing about being Michigan secretary of state’s office. The new plates gan-Becker, an Advantage Sales di- tors Co. will stop using Flint River able to read the numbers and letters on the plates. were tested by the Michigan State Police and the sec- rector. “We hate to move,” she said, water at its engine plant, The Flint Something that’s hard to do when they are white. retary of state. “but the cost of parking has become Journal reported. TM said the wa- a huge issue, and the availability. ter supplied caused engine parts to rust. My guess is the cost is going to go up cans and Hispanics. up 300 percent over 2013, with 630 lendale campus of Grand Valley Ⅲ as parking becomes more scarce.” In West Michigan, loans to non- units under construction. State University. Last week, it offi- Lest we forget: Anila Quayyum Hispanic whites fell 21.4 percent All told, construction began on cially stopped being considered Agha of Indiana won $300,000 in the annual ArtPrize competition in from 2005 to 2013, while loans to 1,632 living units through Septem- and started being a reality. Report: West Michigan Hispanics, Grand Rapids for a sculpture called African-Americans and Hispanics ber, up 61 percent compared with The Rapid, the region’s transit sys- “Intersections,” taking not only the blacks struggle to get mortgages were down 65.9 percent, the study the first nine months of 2013. tem, said 14 stations are to be built Plainfield Township replaced top spot in the public vote but also West Michigan is the nation’s showed. along the 13-mile Laker Line route, Caledonia Township as the coun- sharing honors in the juried compe- most “racially uneven” housing and planners expect 13,000 riders ty’s hottest housing market. tition. Her work was a cube that’s il- market when it comes to helping Kent County homebuilding each day. Construction probably luminated from the inside. And if African-Americans and Hispanics won’t start until 2017, passengers that description seems lacking in a recover from the housing bust, report: Sore spot to soar spot ‘The Rapid,’ indeed: New route boarding the year after. certain passion, well, consider that MLive.com reported, citing a re- Homebuilders in Kent County for express buses set for GR a Philistine wrote it. port from the Urban Institute. A are having their best year in five MICH-CELLANEOUS study of 100 million mortgages years, according to data from A recent story in Crain’s Michi- Find business news from from 2001 to 2013 concluded that al- Builder Track Reports. Builders gan Business on Grand Rapids’ Ⅲ Ada-based Amway Corp. is do- around the state at crainsdetroit though mortgage loans are down started 814 single-family homes new bus rapid transit route, the nating $10 million to a Stanford Uni- .com/crainsmichiganbusiness. sharply for all homeowners from through September, compared Silver Line, reported that another versity study that will track how Sign up for the Crain’s Michi- the mid-2000s, the decline has been with 744 for the same period a year route was being considered to link everything from exercising to eat- gan Morning e-newsletter at much sharper for African-Ameri- ago. Apartment construction was downtown Grand Rapids to the Al- ing fresh produce can lengthen crainsdetroit.com/emailsignup.

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October 20, 2014 CRAIN’S DETROIT BUSINESS Page 3 ‘New’ Asterand back in old home Inside

named Asterand a marketing team of three to four. Company ready to grow as Bioscience Inc. “This is a great facility. We like According to the TechTown people, and it’s John Canepa, great to be part of the entrepre- it moves HQ back to Detroit who was Stem- neurial technology scene in De- gent’s CFO, As- troit,” said Canepa. BY TOM HENDERSON researchers around the world. terand’s head- Asterand, founded in 2000, was CRAIN’S DETROIT BUSINESS Stemgent’s investors liked the quarters is the first tenant of the Wayne State tissue bank business so well they moving back to University-affiliated tech incubator Stemgent Inc., a Massachusetts- have decided to undiversify. In Sep- Detroit. He re- and has long been its largest ten- based company that sells products tember, they announced the sale of Canepa cently signed a ant. It employs about 50 at Tech- to the stem cell industry, including the stem cell operation to ReproCELL lease for 4½years Town and about 30 in a facility in Street art defies Detroit’s lines of stem cells, decided to diver- of Yokohama, Japan, for $8.5 mil- that expanded the company’s space Royston, England. sify its business two years ago by lion in cash. On Oct. 1, Stemgent on the fifth floor of TechTown from Canepa said the company will laws of graffiti, Page 4 buying Detroit-based Asterand plc, a announced the deal had closed and about 8,000 square feet to 10,000 tissue bank company that supplies that the company had been re- square feet, and he is looking to hire See Asterand, Page 33 Company index These companies have significant mention in this week’s Crain’s Detroit Business: 50-50 Fashions ...... 3 Anton Sowerby and Associates ...... 11 Mismatched leggings have pull Asterand Bioscience ...... 3 Athens Acquisition ...... 1 B Spot Burgers ...... 12 Bagger Dave’s Burger Tavern ...... 1 Granddaughter’s idea Beaumont Health System ...... 23 Berkadia ...... 14 Blue Cross Blue Shield of Michigan ...... 22 spurs retired entrepreneur Brooklyn Street Local ...... 4 Buffalo Wild Wings ...... 1 Detroit Garment Group Guild ...... 25 to kick off new business Diversified Restaurant Holdings ...... 1 Environmental Consulting and Technology ...... 15 BY NATALIE BRODA General Motors ...... 6 SPECIAL TO CRAIN’S DETROIT BUSINESS George Matick Chevrolet ...... 29 Grand River Creative Corridor ...... 4 hen 73-year-old lifelong entrepreneur Greektown Casino-Hotel ...... 1 Tom Ervin talked fashion with his 10- Griffin Properties ...... 11 Wyear-old granddaughter last year, he H2Opportunities ...... 15 had no idea he was about to come out of retire- Hayman ...... 14 ment. Health Care Net ...... 19 His granddaughter, Josie Ervin, told him Health Net Connect ...... 19 about a girl at school who wore leggings with Henry Ford College ...... 25 different-colored legs. Ervin was struck by the Henry Ford West Bloomfield Hospital ...... 21 idea and asked his granddaughter what she Interactive Frontiers ...... 19 would name a company that sold mismatched- J&B Medical Supply ...... 19 Jems Technology ...... 19 leggings. Jones Lang LaSalle ...... 11, 13 “She said ‘Oppos,’ because it’s short for op- Marcus & Millichap ...... 11 posite,” Ervin said. “I thought it was such an Max Life ...... 19 interesting idea.” MGM Grand Detroit ...... 31 It didn’t take long for that “interesting idea” MichBio ...... 33 to become a business. Michigan Association of Health Plans ...... 22 Ervin is co-founder and CEO of Bloomfield Michigan Automobile Dealers Association ...... 1 Hills-based 50-50 Fashions Inc., a family-owned Michigan Economic Development ...... 15 and operated fashion company that designs NAI Farbman ...... 32 and produces the Oppos interchangeable girls’ Ortele ...... 20 leggings. The right leg is patterned, and the left Parjana Distribution ...... 15 leg is a solid color. A zipper puts them togeth- Pfizer ...... 13 er, allowing the wearer to mix and match. Princeton Enterprises ...... 14, 16 Rader, Fishman & Grauer ...... 3 Oppos opened online Feb. 1; a kiosk at Twelve SHELLY CHILTON Oppos leggings went on sale in August at a kiosk in Twelve Oaks Mall in Novi. Kiosks like this one are to be Roco Real Estate ...... 14 See Leggings, Page 31 the launching pad for the nationwide growth plans of Bloomfield Hills-based 50-50 Fashions Inc. St. John Providence Health System ...... 21 Signature Associates ...... 11 Stokas-Bieri Real Estate ...... 11 TDI ...... 25 Travel Michigan ...... 24 Co-founder sues Rader Fishman, seeks $1.6M equity buyout University of Michigan ...... 13, 30 BY CHAD HALCOM quarrel to court the firm, Fishman and partner firm has kept his current compensa- Department index CRAIN’S DETROIT BUSINESS is a risky move. Michael Stewart. tion account status a secret, hasn’t Rader, 66, who The lawsuit — which alleges vio- tried to buy out his ownership BUSINESS DIARY ...... 28 A co-founder of Bloomfield Hills- co-founded the lations of the state Limited Liability stake, won’t release him from liabil- CALENDAR ...... 27 based Rader, Fishman & Grauer PLLC firm in 1996 with Company Act, infliction of emotion- ity on a line of credit at Flagstar Ban- claims the intellectual-property current partner al distress and violation of publicity corp with a $5 million balance, and CLASSIFIED ADS ...... 29 law firm is financially troubled and Michael Fish- rights to Rader’s name — contends “has otherwise been aggressively KEITH CRAIN...... 8 won’t buy out his nearly $2 million man and retired that he still owns 37 percent of Rad- confrontational” about Rader’s re- LETTERS...... 8 of equity, since a stroke last year partner Richard er Fishman and had $1.9 million in quests. MARY KRAMER ...... 9 left him unable to practice law. Grauer, seeks compensation accounts at the firm Not so, said Tom Hallin, a part- OPINION ...... 8 But the firm, through its general more than $1.6 when a stroke left his speech and ner and general counsel at the Rader OTHER VOICES ...... 8 counsel, contends it has been more million in a law- motor skills impaired in January firm, who contends Rader Fish- than accommodating to partner R. suit filed before U.S. District Judge 2013. PEOPLE ...... 28 Terrance Rader, and that taking his Arthur Tarnow this month against He also contends in court that the See Rader, Page 32 RUMBLINGS ...... 34 WEEK ON THE WEB ...... 34 Blogs that provoke thought ... and usually nothing else THIS WEEK @ Crain’s reporters write about what they see on their beats at WWW.CRAINSDETROIT.COM crainsdetroit.com/blogs.

ISTOCK PHOTO 20141020-NEWS--0004-NAT-CCI-CD_-- 10/17/2014 3:54 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS October 20, 2014

THE MILLER LAW FIRM Changing the Odds in our Clients’ Favor City ticket crackdown prompts primer on graffiti vs. street art

BY AMY HAIMERL What is the punishment for graffiti? CRAIN’S DETROIT BUSINESS For “true graffiti,” the city plans to aggressively issue tickets. Detroit Mayor Mike Duggan is Property owners have 14 days to cracking down on graffiti — but remove the blight to avoid the $130 the city’s internationally fine. If the markings are not re- renowned street art is safe. moved within that timeframe, There was public uproar last Duggan said, the city will clean it The Miller Law Firm is Recognized week when the Grand River Creative up and charge the building owner. Corridor, an arts district along as a Leader in Complex Business Litigation Grand River Avenue where more Do I need a permit for a mural? than 100 murals adorn 15 build- No. As long as the artwork is Q Automotive supplier counseling Q Commercial and business lawsuits ings, and the Brooklyn Street Local non-illuminated and non-commer- Q Employment litigation Q Shareholder and partnership disputes diner in Corktown got caught up cial, you do not need a permit for a in an unannounced ticketing blitz. Referral fees honored on contingency fee cases ANJANA SCHROEDER mural on your building. But make The Buildings, Safety, Engineering This mural is among those found on sure it meets the definition of art 950 West University Drive, Suite 300 & Environmental Department Rochester, Michigan 48307 248-841-2200 millerlawpc.com sent buildings along the Grand River murals above. Any reference to out inspectors along Detroit’s Creative Corridor. your business name or a product main arteries — Jefferson, Gra- and you will need a sign permit. tiot, Grand River, Michigan av- impossible for them to be in the city, you’ll lose a lot of people.” enues, etc. — and told them to tick- Is my business name painted on a The crackdown last week caused et any graffiti they found. building considered graffiti? a great deal of confusion for city And they did. The team issued No. However, you do need a sign property owners and small busi- tickets for illegal graffiti — the permit. nesses. So, to ease the confusion, spray-paint scribbles and tagging This is where the situation got here is a handy primer on how that covers many buildings across complicated for Brooklyn Street graffiti and street art coexist in the the city — as well as murals that Local. The inspector issued Gifford city: building owners had commissioned a graffiti ticket for having a sign as public art or as a graffiti-mainte- painted on the building. That What is defined as graffiti? nance strategy. Derek Weaver, who caused other business owners to Featuring: Mayor Duggan wasn’t trying to formed GRCC, said the building believe the city was treating busi- EILEEN ASHLEY owners who donated their wall stifle the arts in Detroit with his Comerica Wealth Management ness signs as blight. However, the MCMANUS space to the project received thou- crackdown, but rather trying to Senior Vice President mayor’s spokesman, John Roach, DISTINGUISHED BUSINESS LECTURE sands of dollars worth of tickets. rid the city of actual, unwanted Regional Managing Director – MI said that ticket was issued erro- But Duggan said he never meant graffiti. The city defines graffiti in neously. Success Doesn’t Just Happen for authorized murals to incur municipal code section 9-1-3: Because Gifford did not have a tickets. “Unauthorized drawings, letter- sign permit, she should have been “I apologize,” he said. “I’m em- ing, illustrations or other graphic cited for that violation, not graffiti. THURSDAY, OCTOBER 23, 2014 barrassed. markings on the exterior of a Gifford would have been happy “I thought we had given clear di- building, premises or structure 7 p.m. Lecture to get a permit for her sign, but she rection to our inspectors that, which are intended to deface or Madonna University Kresge Hall just didn’t know she needed one. when you have wall art and mu- mar the appearance of the build- 36600 Schoolcraft Road (at Levan) “I have an awning permit,” she Livonia, MI rals that had the permission of ing, premises or structure.” said. “It would have been nice if building owners, that was not go- Lecture is open to the public at no charge ing to be ticketed.” Are murals graffiti? someone had told me when I was Seating is limited At Brooklyn Street Local, own- No. “Commissioned art is not getting that permit that I needed a R.S.V.P. to Lori by October 16 graffiti,” said Eric Jones, director sign permit, too.” 734-432-5589 or [email protected] ers Deveri Gifford and Jason Yates received a $130 ticket because of the buildings department. Farther down Michigan Av- their business name is painted on The code defines art murals in enue, the restaurant Gold Cash Gold INSPIRING ENTREPRENEURS SINCE 1989 the west side of the building and section 3-7-2 as “any mosaic, paint- is close to opening. As part of its ing or graphic art, which is ap- decor, the Cooley family repainted Madonna University School of Business t madonna.edu the remnants of a mural peek out from behind the reconstruction plied to a building and does not the exterior of the building and re- work happening on the diner’s contain any brand name, product created the old pawnshop signage. name, letters of the alphabet that east wall. Because they had a sign permit spell or abbreviate the name of any “The inspector told me that this for the work, they didn’t receive a product, company, profession or is the mayor’s new project to get rid graffiti ticket. Still, Ron Cooley, business or any logo, trademark, of graffiti,” said Gifford. “They president of the Corktown Business trade name or any other type of Association, said he wished the city were going to all of the businesses commercial message.” that have anything written or paint- would be proactive instead of reac- tive. ed on the building and saying it was If murals aren’t graffiti, why did the going to be ticketed as graffiti. “They could have given written city ticket? warnings instead of writing tick- “I understand that graffiti, that Because there is some lack of ets,” Cooley said. “It’s a matter of blight is a problem, but there is a clarity in the city code. While the explaining yourself. (Gifford) better way than ticketing a busi- definition of graffiti includes the nesses and removing beautiful term “unauthorized,” in the sec- shouldn’t have been ticketed. She art.” tion of the code that outlines prop- should have been told: You need a In response, Duggan met with erty owners’ responsibility to keep permit for your sign.” Gifford to apologize directly — their buildings graffiti-free, it en- and tell her the ticket would be compasses any graffiti, painting, What is the cost of a sign permit? thrown out. He also called Weaver carving or marking. With that There is a one-time permit fee and told him the same thing. broader definition, a property that starts at $80 for the first 100 Building owners with authorized owner could be cited. square feet; each additional 50 murals will not have to pay fines However, Jones is confident that square feet costs $26. The annual or remove the artwork. murals are not graffiti by code and fee is $46 for 300 square feet; each “He called me and apologized,” the tickets were a misunderstand- additional 32 square feet costs $52. said Weaver. “But the bottom line ing. is I talked with Mayor Duggan “I wouldn’t say the (inspectors) Are the murals in Eastern Market le- when he was campaigning, and I were overzealous,” he said. “They gal? told him about the corridor and he are hard-working men. Some of the Some are; some are not. It all de- was really positive. I wanted to pre- graffiti art was blurred and ambigu- pends on whether the property vent a situation like this from oc- ous and questionable, so they erred owner allows the artwork and they curring. You can’t come in with an on the side of enforcing the code. … fall in the definition of “art mur- iron fist and chase out the artists After a second look, we decided we al.” Eastern Market Corp. has sign and entrepreneurs and small busi- were going to move forward with lo- permits for the murals that feature nesses. If you are going to make it cations that are clearly blighted.” its name. DBpageAD_DBpageAD.qxd 10/8/2014 3:40 PM Page 1

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Page 6 CRAIN’S DETROIT BUSINESS October 20, 2014 GM counsel criticized in National Philanthropy Day recall hearings to retire BY MIKE COLIAS tive with a connection to the igni- Congratulations, 2014 National Philanthropy Day Awardees! CRAIN NEWS SERVICE tion issue to retire this year. Jim Federico, a top engineer Max M. Fisher Award for Outstanding Philanthropist Outstanding Foundation General Motors Co.’s top lawyer, who oversaw an internal inquiry Marcia and Eugene Applebaum The Jewish Fund Michael Millikin, is retiring three Nominated by: Beaumont Health System Nominated by: Jewish Family Service and JARC into the problem several years months after he withstood wither- ago, retired in May to take a job as George W. Romney Award for Dr. John S. Lore Award for ing criticism by lawmakers for his vice president of Harley Davidson. Lifetime Achievement in Volunteerism Outstanding Fundraising Executive department’s handling of GM’s Eugene and Elaine C. Driker Audrey M. Olmstead, Walsh College GM’s global engineering chief, Nominated by: Wayne State University Nominated by: Walsh College deadly ignition switch defect. John Calabrese, announced his re- GM said Friday that Millikin, tirement in April as Barra un- Edmund T. Ahee Jewel Award for Neal Shine Award for Media Commitment to 66, informed the company of his Outstanding Fundraising Volunteer Philanthropy veiled a restructuring of his de- Mark Blanke and Michael Perkins Paul Anger decision to retire early next year. partment that included splitting Nominated by: $I»rmations Nominated by: Detroit Media Partnership and GM will begin an immediate exter- his job into two separate roles. Reading Works nal search for his replacement, the Outstanding Corporation Documents show that Calabrese 6trategic 6taI»ng 6olutions 6 Sparky Anderson Award for Outstanding Youth company said in a statement. was aware of GM’s investigation Nominated by: Michigan Humane Society Volunteer Fundraiser During a Senate hearing in July into the matter in recent years, Mark Hooven on GM’s handling of its recall of Nominated by: Hope Center in Macomb and he was one of three executives 2.6 million cars for a faulty igni- charged with deciding when to is- Thank-you to our sponsors! (Listing as of 9/30/2014) tion switch linked to 27 deaths, sue a recall. Presenting Sponsor Plante Moran, PLLC Hammond and Associates, LLC senators questioned how Millikin GM said the earlier retirements Crain’s Detroit Business St. John Providence Health System Henry Ford Village Foundation couldn’t have known about the de- were not related to the recall. Fed- Broadcast Sponsor St. Joseph Mercy Oakland Honigman Miller Schwartz and Cohn LLP fect when top lawyers had worked Strategic Staf»ng Solutions Lawrence Technological University erico and Calabrese are each Detroit Public Television Walsh College The Henry Ford on the matter for years. about 10 years younger than Mil- Diamond Sponsor WDET 101.9 FM Macomb Community College In a statement, GM CEO Mary likin. Detroit Media Partnership Foundation Bronze Sponsors Barra — who defended Millikin Millikin joined GM in 1977 after Platinum Sponsors Arbor Hospice McLaren Macomb Healthcare Beaumont Health System Comerica Charitable Services Foundation during the hearings — praised his a short stint as a federal prosecu- Wayne State University Community Foundation for Michigan Theater leadership. tor on drug cases. He was named Southeast Michigan Oakland University Gold Sponsor Presbyterian Villages of Michigan “He has led global legal teams chief counsel in July 2009. Henry Ford Health System Crittenton Hospital Medical Center Foundation Foundation through incredibly complex trans- At least five employees from Ronald McDonald House Charities Silver Sponsors Detroit Institute of Arts actions, been a trusted and re- Millikin’s department were fired Children’s Hospital of Michigan Detroit Zoological Society Rose Hill Foundation Foundation Forgotten Harvest Salvation Army, Eastern Michigan spected confidant to senior man- in June for their handling of the Cranbook Educational Community Gleaners Community Food Bank of Division agement, and even led the ignition switch defect. MGM Grand Detroit Southeastern Michigan University of Michigan – Dearborn Michigan Humane Society company’s global business re- GM said Millikin will stay on sponse team following the tragedy the job until the transition of the of 9/11,” Barra said. new general counsel is complete. Millikin is the third GM execu- From Automotive News DETROIT IS BUILDING OPPORTUNITY ONE BLUEPRINT AT A TIME.

– CHARLES BURNS GENERAL MANAGER, CHEVROLET DETROIT BELLE ISLE GRAND PRIX BOARD MEMBER, DMCVB

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Page 8 CRAIN’S DETROIT BUSINESS October 20, 2014 OPINION OTHER VOICES Sunshine Act shouldn’t start chill No consumer relation- end of September. It’s in- expects — and deserves — innova- Too much stealth ship demands more trust tended to increase trans- tions in health care, these partner- than that between a physi- parency in health care by ships often unite the top minds in cian and a patient. making public any finan- their fields to develop the best pos- Whatever the ailment, cial relationships — sible products for patients. the patient is asking to be whether cash or “trans- As we continue to live longer healed. In return, he or she fers of value” — between lives, there is an ongoing and ever- around Tesla bill is asked to trust that the physicians, pharmaceuti- growing need for doctors and com- treatment — whether sim- cal makers and medical panies to work together to contin- ov. Rick Snyder has a bill on his desk that would rein- ply medication or a deli- device companies. ue developing new medicines and force the current state law and make it tougher for Tes- cate surgical procedure — It is a laudable endeav- devices in the most honest, open G la Motors Inc. to sell electric vehicles directly to con- is the best means to reach Steven Kalkanis or that deserves the sup- and transparent manner possible. sumers in Michigan. that end. port, at least in principle, of the This is the intent of the Sunshine As Chris Gautz reports on Page 1, state auto dealers quietly This trust requires that no other health care industry. Yet great Act. agenda be at work in a unique con- care must be taken that this trans- However, it will be an extremely pushed for an amendment to a bill that focused on documenta- sumer business: It offers no mon- parency does not chill the legiti- significant loss for medicine if in- tion fees charged to consumers. The new language, though, ey-back guarantees and sometimes mate and absolutely essential part- clusion in the Sunshine Act data- strengthens the state’s system of auto companies selling vehi- little assurance that the treatment nerships between industry and base leads to a negative connota- cles through franchised dealers. Tesla wants to sell directly to will even work, just that the practi- medicine. tion for physicians or companies, consumers. tioner believes it is the best re- In my practice, many of the rather than an acknowledgment of sponse to the patient’s needs. stunning, lifesaving innovations a fusion of the leading minds and Some critics have said Snyder, an advocate for loosening Doubt upsets this balance with and advances in neurosurgery resources in the field. strictures on business, should veto the bill. Others think the every news story or blog entry or over the past few decades have This is one of the many ways — new wording was done in a less-than-transparent manner. We social media post about doctors been developed in healthy, ethical through research, conversations agree; it was a sneaky end-run, which caught Tesla by sur- who break trust by acting in their collaborations between manufac- and clinical trials — that we work prise. If franchising is good for consumers, be open about it. own interests: The doctor who turers and neurosurgeons. to meet growing patient demands overprescribes a new drug after Advanced imaging and naviga- for safer surgery, more effective This stealth attack on Tesla — a disruptive company in the accepting gifts from the pharma- tion techniques that make brain medicines and the eradication of auto business — was perhaps legal, but certainly not transpar- ceutical reps who sell it, or who or- surgery safer, minimally invasive chronic diseases. ent. If franchising is so great, it can stand up for itself in broad ders unnecessary and costly diag- tools that allow patients to heal If the well-intentioned new law daylight. nostic tests from a company in faster from spine surgery, and new confuses such vital work with that That said, we think the franchise-dealer system has which the doctor is an owner or in- drugs developed through clinical of practitioners who follow their vestor, or any interest that con- trials for diseases like brain can- own financial agendas, it will have worked pretty well for 100 years. Consider this: What if GM flicts with the best patient care. cer and epilepsy are all examples backfired. didn’t have its own franchised dealers to handle 30 million re- After several delays, a new com- of these successful collaborations. Steven Kalkanis, M.D., is chair- calls? Dealers protect consumers and are responsible for ser- ponent of the Affordable Care Act, The same can be said for other man of the Department of Neuro- vice, trade-ins, recalls and other issues. They are directly and known as the Physician Payment fields of medicine. surgery at Henry Ford Health Sys- legally linked to the manufacturer. It works. Sunshine Act, took effect at the In a country where the public tem. Skills program a model to copy LETTERS This is how it can work: Employer de- mand grows for a specific type of skill and a community college quickly ramps up to meet the demand with a program that A good wage yields good work grants a certificate. The skill? Industrial sewing. As Art Ais- Editor: management corporation Sodexo’s ployees who come to work just to In response to the Oct. 13 article failure to adequately maintain pay the rent on $15 an hour, what ner reports on Page 25, Henry Ford College “DMC weighs outside housekeep- clean and sanitary schools and an kind of attitude will workers have in Dearborn created the program in con- ing; 565 jobs on the line,” one need “ongoing failure to hire licensed who can’t pay the rent even if they cert with the Detroit Garment Group Guild look no further than the Detroit and qualified personnel which has do come to work because they and area businesses and workforce coun- Public Schools to see the negative resulted in not only lost school make only $9 an hour and have cils. consequences of subcontracting. days, but also significant and cost- fewer benefits? DPS is now on its third janitori- ly damage to equipment” as the Detroit will not be “revitalized” It isn’t cheap; tuition is $2,000, but aid is al subcontracting company in five reasons DPS was seeking to termi- without living-wage jobs. available. And if the college can churn out years. A May article in the Detroit nate its contract with Sodexo. Donna Stern graduates in six weeks, those students can Free Press reported that DPS If management is justifying sub- Detroit ART AISNER then apply for some of the 300 advanced in- spokeswoman Michelle Zdrodows- contracting by portraying its cur- Henry Ford College is dustrial positions that are open now. ki cited food services and facilities rent workers as disgruntled em- See Letters, Page 9 offering the state’s first industrial sewing That model can — and should — be Send your letters: Crain’s Detroit Business will consider for publication all signed letters to the editor that do not program. replicated. defame individuals or organizations. Letters may be edited for length and clarity. Email [email protected]

KEITH CRAIN: A company too big to fail – or merge Right now, the Federal Commu- Comcast’s customer and equipment. It led a better job of serving their cus- big markets — New York City and nications Commission and Jus- count below 30 percent to the birth of “Baby tomers. Los Angeles. tice Department are studying market share nation- Bells” and a wave of Comcast’s plans for Michigan This is just another example of whether or not to let Comcast wide — low enough to product innovation involve spinning off customers to a company that would be de- purchase a rival cable operator, satisfy the feds and al- and low-cost long-dis- GreatLand Connections, the new scribed as too big to fail, as we Time Warner Cable. low this merger. tance service. Charter Communications compa- discovered during the recent fi- In order to gain federal ap- I can’t help but won- It just might be time ny. There are even reports that nancial crisis, yet seems quite proval, Comcast created a side der what Judge Harold to consider doing that Comcast would own a part of content to try and create an even deal to turn over nearly all Michi- Greene would think. with cable companies. GreatLand. bigger monopoly. gan customers to a new company Greene, who died in There are plenty of It’s odd that Comcast is shed- Judge Greene had it right sev- managed by Charter Communica- 2000, was the federal telecommunication ding customers in Michigan in or- eral decades ago. Getting a lot big- tions. We, the Michigan cus- judge who presided folks who would tell der to get a deal approved so it ger doesn’t always serve the cus- tomers, may or may not see an over an antitrust case you that it’s time to can gain millions more. Unbeliev- tomer or the nation. improvement in our cable ser- that led to the breakup of the start to make these companies ably creative, to say the least. But This is a perfect example of vice. It’s nothing but a way to get AT&T monopoly in phone service smaller, not larger, so they can do it’s a way for Comcast to gain two simply getting too big. 20141020-NEWS--0008,0009-NAT-CCI-CD_-- 10/17/2014 11:08 AM Page 2

October 20, 2014 CRAIN’S DETROIT BUSINESS Page 9 MARY KRAMER: Voters, pay attention to college boards

On Nov. 4, voters can pick peo- graduation rates. Jasti mission standards to increases for Grand Valley State, $2,835 per full-time-equivalent stu- ple who steer policy, hire and fire has an accounting de- bring in revenue, re- situated in Republican Grand dent — the lowest of all 15 state university presidents and are ulti- gree from WSU; he gardless of whether Rapids, are many times those for universities. mately responsible for the com- helped to create Lotus students were ready for Wayne.” Wayne State gets more than bined $9 billion budgets at Wayne Bank in Novi to focus college work. (WSU As an alum and current trustee $8,700 per student for its 27,000 full- State University, the University of on the niche of business beefed up require- of GVSU, I can say he’s partly time equivalents — highest among Michigan and Michigan State Uni- banking for the local In- ments last year; it’s too right. GVSU did receive a boost on the 15 universities. versity. dian and Asian commu- early to know the ef- its base funding — 6 percent — but High investment, low results in But can you name a single can- nity. fect.) only because it scored so high on terms of graduation rates. Maybe didate for university trustee? As With mostly part- WSU faculty leaders, six performance measures, includ- that’s why state investment hasn’t Crain’s Chris Gautz reported Sept. time students, WSU meanwhile, believe ing graduation and retention rates increased. 29, these bottom-of-the-ballot races graduation rates, he WSU’s problems are po- and degrees granted in high-de- Mary Kramer is publisher of are often decided by straight-party knows, will lag behind litical. “The evidence mand fields. Crain's Detroit Business. Catch her ticket voters. schools with more full- is clear,” Charles Par- Parrish wouldn’t want GVSU’s take on business news at 6:10 a.m. That’s a shame. Consider Wayne time students. “But Wayne State’s rish, president of the AAUP-AFT biggest headache: Because state Mondays on the Paul W. Smith show State: Many of its graduate pro- rates were much better in the ’80s Local 6075, wrote in a recent funding never caught up with its on WJR AM 760 and in her blog at grams are among the finest in the than they are today,” he says. newsletter. growth spurt, state dollars for www.crainsdetroit.com/kramer. state; it is trying to grow its re- He thinks WSU lowered its ad- “The annual percentage budget 25,000 students breaks down to E-mail her at [email protected]. search budget and opportunities to spin off technology into new com- panies. But few people can name a current trustee. The big issues at WSU are en- rollment (declining) and gradua- tion rates (dead last among 15 state universities). Republican Satish Jasti is run- ning for the WSU board to get his alma mater to focus on increasing

LETTERS CONTINUED

■ From Page 8 Raises for DIA execs are irresponsible

Editor: Despite a community bailout of the Detroit Institute of Arts, an- chored by three counties pledging to raise taxes for residents, and a concerted effort by businesses and foundations in the state to lend financial assistance to the DIA, the museum’s top officials accepted huge pay increases and bonuses the same year that the tri-county tax passed (“DIA boosts compensation of top ex- ecs,” Crainsdetroit.com Oct. 6 ar- ticle from The Detroit News). This compensa- tion flies in the face of fiscal re- sponsibility. Director Gra- ham Beal’s salary of $513,868 and Beal COO Annmarie Erickson’s the future of my business salary of $369,366 (includ- ing bonuses) is obscene when compared with the sacrifices others, such as Detroit retirees and police and fire employees, Erickson have made to Blue Cross Blue Shield of Michigan and Blue Care Network rescue the city from insolvency. have a wide range of comprehensive health plans to help Frankly, how much skill is re- you make the right choice for your business. quired to operate a museum? There is no production line or GROUP HEALTH PLANS | DENTAL | VISION | bcbsm.com/employer thousands of widgets to manufac- ture. Heck, I would perform the same museum oversight for half the money and would promise not to wear bow ties. Bill Kalmar Lake Orion Blue Cross Blue Shield of Michigan and Blue Care Network are nonprofit corporations and independent licensees of the Blue Cross and Blue Shield Association. DBpageAD_DBpageAD.qxd 6/13/2014 4:03 PM Page 1

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October 20, 2014 CRAIN’S DETROIT BUSINESS Page 11

REPORTER’S NOTEBOOK

Kirk Pinho covers real estate, higher education and Macomb and Oakland counties. Call (313) 446- 0412 or write [email protected]. Real estate Kirk Pinho Office vacancy continues steady decline The Class A and Class B office vacancy rate in Detroit as well as the suburbs continues to decline, albeit gradually — a positive barometer to the health of the office market. NATHAN SKID/CDB In the central business district and COURTESY OF NEW ENGLAND DEVELOPMENT New Center area, vacancy fell from 18.4 percent in the second quarter to Clockwise from below: Work continues on the HopCat bar and restaurant in 17.9 percent in the third, according to Midtown. The Arbor Hills shopping center, which includes a Lululemon store, a report released last week by Jones opened last year a few miles from the University of Michigan campus. Lang LaSalle. Bonefish Grill is part of the Galleria of Troy Phase 1, at Big Beaver and That’s down from a four-year high Wilshire Drive. New England Development plans to build an outlet center near of 28.9 percent at the end of 2010, Detroit Metropolitan Airport said Robert Kramp, senior vice president and director of research for the Midwest and Great Lakes in JLL’s Chicago office. “There is just a general dearth of blocks of Class A space available,” he said. Ringing Average asking rents in the city dropped from $19.11 per square foot in the second quarter to $19.10. COURTESY OF DEVELOPMENT MANAGEMENT ASSOCIATES LLC In the suburbs, vacancy fell from 28 percent to 27.3 percent, while average asking rents remained steady at $17.35 per square foot, compared up retail to $17.33. Office leasing is expected to continue at a healthy clip, particularly in the central business district, Low vacancy rates, Kramp said. Another positive trend is that employers downtown are leasing eager tenants more space instead of shrinking their office footprints. “For a market like Detroit, which has really taken a beating in the last total steady leases, sales 10 years, this is so critical,” he ANJANA SCHROEDER said. Kramp also said that investment 1.2 million square feet last year, according to strong sales,” said Viktor Gjonaj, a principal sales have been on the rise in the BY KIRK PINHO CRAIN’S DETROIT BUSINESS who focuses on retail at Southfield-based Sig- past few years. In 2013, there was Marcus & Millichap. The thin construction pipeline is causing nature Associates Inc. $466.9 million in investment sales, ny retail real estate broker who’s and 2014 is on pace to best that rents to rise — up to an average of $11.91 per Those areas of strength include the I-75 not making a killing in the current square foot, according to Marcus & Millichap. corridor in Oakland County, Telegraph Road figure with $430.9 million through the retail environment in metro Detroit third quarter this year. “In general, the market is relatively running through Oakland County and M-59 Ais doing something seriously wrong. healthy because vacancies are down,” said through Macomb County, Gjonaj said. In 2012, there was just $148 So says Scott Griffin, president of South- Jim Bieri, president of Detroit-based Stokas- “What you’re seeing million worth of investment sales, he field-based Griffin Properties Inc. said. Bieri Real Estate. “It’s stronger than it was. It’s now is a lot of expensive “It’s been very, very, a quiet, steady growth.” in-fill. I haven’t seen any There are 13.93 million square feet very busy,” he said. The tightest areas in the monster centers going up, of Class A and B office space in the Low vacancy rates in region are Troy, with a va- but I’ve seen these little downtown and New Center areas and many parts of town, paired cancy rate of 4.4 percent; small redevelopment in- 48.05 million square feet in the with a number of big and Washtenaw at 5.3 percent; fill sites taking place as suburbs. small tenants eager to find Royal Oak at 6.1 percent; long as it’s the absolute The total city and suburban Class a spot in metro Detroit, are and Livingston County- right corridors,” said A and B vacancy rate in the third making for a steady stream west Oakland County at 7.1 Sowerby, who specializes quarter fell to 25.1 percent from 26 of leases, build-to-suit deals percent, according to Mar- Sowerby in Macomb County retail. percent in the second, according to and property sales. cus & Millichap. JLL. That’s across the board in Demand is increasing Griffin Bieri Shopping centers Suburban areas with the lowest most of the major retail ar- for everything from cloth- vacancy rates were the southern I- eas around town, ranging from the I-75 corri- ing to groceries, from outlet malls to bou- Although there aren’t many large, stand- 275 corridor (9.4 percent, down from dor to Macomb County’s Hall Road hub to the tique shops, from restaurants to footwear re- alone new retail centers opening, plans for 17 percent in the second quarter); western Wayne County suburbs, Griffin said. construction are taking shape. Birmingham and Bloomfield (11.2 tailers, said Joe Sowerby, president of Mt. In the second quarter, the retail vacancy The 120,000-square-foot Outlets of Southeast percent, down from 11.9 percent); Clemens-based Anton Sowerby and Associates Michigan, planned near M-59 and I-94, is a con- Royal Oak and southeast Oakland rate was 9.3 percent, according to a report by Corp. That’s because people are generally ference center and hotel on the same site. County (11.9 percent, down from the Southfield office of Marcus & Millichap, on more optimistic about the economy after the There also would be restaurants at the site, 13.4 percent); and Washtenaw par with other Midwest markets. recession and have more expendable income County (10.4 percent, down from At the same time, new retail construction to use at those stores, he said. and possibly up to five or six hotels after sell- 12.5 percent). is lagging. About 525,000 square feet is ex- “People have more to spend, thus the re- pected to come online this year, down from tailers are going into areas that are showing See Retail, Page 12 20141020-NEWS--0011,0012-NAT-CCI-CD_-- 10/17/2014 10:58 AM Page 2

Page 12 CRAIN’S DETROIT BUSINESS October 20, 2014 Real Estate Retail: Biggest demand here is mainly in the smallest spaces ■ From Page 11 ing parcels of land. Nichols Road, the site of the former Out-lots Lapin also expects more lease Cleveland, where we base our oper- There are also plans by New- Redford High School. The Walker- deals near Maple and Livernois ations. That’s not only proven by us town, Mass.-based New England De- based company opened its first loca- But the largest demand for retail roads, where the 16-story MJR Digital but also other successful retail out- velopment to build a 325,000-square- tion at the Gateway Marketplace in space in metro Detroit is found Cinemas opened this year on the site lets like clothing stores and other foot outlet center near Detroit July 2013 at Eight Mile and Wood- mainly in smaller spaces, whether of a Kmart store that closed in 2009. restaurants.” Metropolitan Airport in Romulus. ward. in strip centers, in-fill lots or other Troy is seeing more retail activi- Baltimore-based Paragon Outlet Last year, the Arbor Hills shop- spots, Sowerby said. ty, Lapin said. “These are prime lo- Partners LLC plans to buy about 50 ping center in Ann Arbor opened A 50,000-square-foot Field & Stream cations. We are seeing that as a fac- Grocery store shopping acres at I-275 and Ford Road in Can- about three miles east of the Univer- store is planned on a vacant out-lot tor in why these developers want to Several food-related stores in ton Township for a 375,000-square- sity of Michigan with 11 stores in a that was the site of the former Cir- be along Big Beaver and elsewhere.” metro Detroit are planned or in store foot outlet center that’s planned to 90,000-square-foot center. Tenants cuit City at Oakland Mall in Troy. for renovations and expansions. open in the summer of 2016. include Sur La Table, several restau- That store is set to open in the At least four new Fresh Thyme This summer, Meijer Inc. broke rants including Pizzeria Biga and spring, said Glenn Lapin, Troy’s Food and drink tenants Farmers Market grocery stores are ground on its second Detroit loca- apparel stores such as J. Jill and economic development specialist. Whether it’s two new HopCat loca- planned for Rochester Hills, Troy, tion at Grand River Avenue and Mc- Brooks Bros. Sweden-based clothier H&M plans tions in Ann Arbor or Midtown, a Northville and Farmington Hills a 20,000-square-foot location at Ma- second Crispelli’s Bakery and Pizzeria in 2016. After opening a successful comb Mall, while fellow Swedish re- in West Bloomfield Township or the Midtown location, Austin, Texas- tailer Ikea is expanding its sole owners of Imperial and the Public based Whole Foods Inc. announced Michigan store in Canton Township House in Ferndale planning more at the Crain’s Detroit Homecoming by adding about 44,000 square feet to restaurants — including another event in September that it plans a the 311,000-square-foot building. Imperial location in 2015 — restau- second location in Detroit. At Metro Airport, a bevy of new rants are continuing to make in- It’s not just new locations, howev- retail space is open or planned, in- roads in Southeast Michigan. er, where the retail activity is no- cluding Andiamo; the Eastern Mar- In August, “Iron Chef” Michael ticeable. For example, the Kroger Co. ket Dining Experience food court; Symon announced plans for a of Michigan grocery store at West and national retailers such as The third B Spot Burgers bar and restau- Maple and Lahser roads in Bloom- Body Shop, Spanx, Pandora and Be rant at Partridge Creek Mall in Clin- field Township underwent a $1.4 Relax Spa. It’s part of a $13.8 mil- ton Township. There currently is million renovation and reopened to lion investment to build out spaces one at the Village of Rochester Hills shoppers in August. The renovation in the McNamara Terminal. and another planned for 310 Main was part of a $137 million invest- The desirable Big Beaver corri- St. in downtown Royal Oak. ment planned for its Michigan dor in Troy also has gotten more Chains such as Denver-based stores. A $5.5 million remodeling of retail recently, Lapin said. Chipotle Mexican Grill Inc. also have the Kroger on East Maple Road in 102.69 acre Former Military Housing Site Among retailers and restaurants expanded their presences in metro Birmingham is also ongoing. Chesterfield Township, Michigan opened in the past six months are Detroit. The fast-casual Mexican But will the reinvestment — and Bonefish Grill, Carrabba’s Italian Grill food chain has 12 locations in the wave of new tenants — continue? x Roads x Two miles from I-94 and Jersey Mike’s at the Troy Galleria, region and plans a new one in That depends on whether lenders x Water/Sewer Lines x Zoned R1-B, Residential at Big Beaver and I-75. Northville Township at Seven Mile are willing to invest in the area by x Storm Drains x All former military housing The Kilmer Plaza, on the northeast and Haggerty roads in the Northville continuing to provide business and x Telecommunication Vault structures have been removed corner of Big Beaver and Kilmer Park Place development. construction loans, Sowerby said. Drive, includes Massage Green Spa, And the sandwich-sub building “I would say it could be moving Sy Thai Café and DiBella’s. Big Beaver OPEN HOUSE DATES 9/26, 10/17, and 11/7! Call for Details! boom also shows no sign of winding at a better clip, but lending is still Center, on Big Beaver between down. Point Pleasant Beach, N.J.- a fly in the ointment,” he said. U.S. General Services Administration Alpine Road and McClure Drive, in- Rich Balsano / 312-353-0302 / realestatesales.gov based Jersey Mike’s has opened sev- “The banks are still not a friend to cludes Piada Italian Street Food. en stores in Oakland and Macomb entrepreneurial capitalists.” counties and is opening a second According to Marcus & Mil- Rochester Hills location Nov. 12. lichap, Detroit’s 9.3 percent retail Douglas Petkovic, a business vacancy expected through the end partner of Symon’s and Symon’s of the year is on par with many oth- wife, Liz, said he hopes that the er Midwest cities, such as Chicago third area B Spot Burgers location (8.9 percent), Cleveland (8.9 percent) at Partridge Creek will open by Jan. and Columbus, Ohio, (8.1 percent). 1 after a downtown Royal Oak loca- Said Sowerby, “I think, hopeful- tion opens next month. A Rochester ly, we are going to continue to go Hills location is already open. through a couple more years of “To say that we believe in the slow and steady growth.” greater Detroit economy would be Kirk Pinho: (313) 446-0412, kpin- an understatement,” Petkovic said. [email protected]. Twitter: @kirkpin- “We feel it’s a very similar town to hoCDB

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October 20, 2014 CRAIN’S DETROIT BUSINESS Page 13 Real Estate Former Pfizer campus nearly refilled as UM research hub

BY KIRK PINHO will be made coming,” said Neal Warling, se- “It was a worldwide, global mar- “There was a collective sigh of re- CRAIN’S DETROIT BUSINESS this fiscal year nior vice president in the Ann Ar- keting perspective. And really, it lief when it was announced that they to the campus bor office of Jones Lang LaSalle. was a daunting marketing effort. ... were going to occupy it,” Warling When news came out that the 174- since UM has The complex’s closure was part But at the same time, coming across said. acre Pfizer Inc. complex in Ann Ar- owned it, Canter of Pfizer’s global cost-cutting and facilities like that was so unique.” Kirk Pinho: (313) 446-0412, bor, a crown jewel of commercial said. The intent restructuring efforts made to re- That UM pounced on the opportu- [email protected]. Twitter: medical research, would be shut- is to have the re- duce its total workforce by 10,000 nity was fortunate, brokers said. @kirkpinhoCDB tered as part of the drug company’s maining seven and save the drug maker $2 billion cutbacks in 2007, there was a collec- buildings at the annually, Crain’s reported at the tive “what now?” in economic de- site open and al- time. Before the Ann Arbor com- Exceptional Leadership. velopment and real estate circles. Canter most entirely oc- plex’s closure, the New York City- But within seven years, the cupied by 2019. based company also closed opera- Delivered. sprawling, 2.1 million-square-foot Said Canter: “I would like to be- tions in Kalamazoo and Skokie, Ill. complex is again a hub for medical lieve that by the 10-year anniver- At the time, Pfizer was expect- and other types of research, this sary (of the university’s owner- ing a major revenue loss because a time for the University of Michigan. ship), the site will indeed be almost patent for cholesterol drug Lipitor, Within the next few years, it’s ex- 100 percent utilized.” which accounted for about 20 per- pected the complex will be fully oc- The complex is home to a U.S. De- cent of Pfizer’s revenue, was to ex- cupied again. partment of Veterans Affairs office, the pire in 2011. Michigan’s In 2009, UM bought what is now Institute for Healthcare Policy and Inno- The company offered job trans- Premier its 27-building North Campus Re- vation and eight UM research groups, fers to about 1,000 of its 2,100 em- search Complex for $108 million us- nine scientific research core ser- ployees at the complex. Retained ing funds from the University of vices and 10 UM schools. It also has Dave MacDonald, an executive Michigan Health System. Lycera Corp., Honda Motor Co., Bosch vice president with Jones Lang Executive So far, the 20 buildings that have USA and BoroPharm Inc. as tenants. LaSalle, was part of the five-mem- been reopened are full, bustling Researchers there focus on things ber brokerage team at Staubach Co. Search Firm with mostly university re- such as microbiology, molecular marketing the site for sale. He searchers and also private-sector imaging, internal medicine, oncolo- called it “an incredible facility,” but employees, said David Canter, gy, engineering, cardiology and it took a Herculean effort to sell it. Over 100 years M.D., executive director of the DNA sequencing. The brokers put together an in- of combined complex, who worked for 25 years That so much of the space south ternational marketing campaign experience.

for Pfizer in Ann Arbor as senior of Plymouth Road and on both and generated buzz for it, since LLC vice president of global research sides of Huron Parkway could be building something of similar size and development. filled back up again as quickly as it and scale would have cost “in the International Executive Search About $57 million in capital im- did has been a surprise to brokers. 10-plus figures, into the billions” of Tel: +1.248.645.1551 • www.huntergroup.com provements have been made or “I don’t think anyone saw that dollars, MacDonald said. 20141020-NEWS--0014-NAT-CCI-CD_-- 10/17/2014 10:58 AM Page 1

Page 14 CRAIN’S DETROIT BUSINESS October 20, 2014 Real Estate High-demand multifamily rental market spreads to suburban spaces

BY KIRK PINHO ment of rising rents, hot demand CRAIN’S DETROIT BUSINESS AVERAGE SUBURBAN and some of the success in the city of Detroit,” he said. “I think it’s going It’s not just downtown and Mid- MONTHLY RENTS to spread to a downtown Royal Oak town where demand for multifamily Average asking monthly multifamily or downtown Rochester, and other space is high and rents are rising. rents per unit (across all unit sizes) urban settings, particularly where The inner ring suburbs in Oak- in the largest metro Detroit there are rehab opportunities.” land, Wayne and Macomb counties suburban markets: There is also demand for units continue to have low vacancy rates, Ⅲ Ann Arbor: $1,065 with better amenities, Hayman increasing rents and strong interest Ⅲ Novi/Livingston County: $821 said, which will eventually lead to in investment sales, multifamily Ⅲ Pontiac/Waterford/Auburn new construction. Those include real estate experts said. Hills: $740 things like free Wi-Fi access, mod- The apartment and condomini- Ⅲ Royal Oak/Oak Park: $784 ernized clubhouses, and online rent um units from Royal Oak to Dear- payment and service requests. born, from Ferndale to Warren, Ⅲ Southern Wayne County: $696 from Westland to Southfield all Ⅲ Southfield: $876 The investment sales markets have vacancy rates around or be- Ⅲ Sterling Heights/Shelby also remain strong, as evidenced low 5 percent — and rents in those Township: $816 by Hayman’s purchase of two communities have increased by 2.5 Ⅲ Troy/Rochester Hills: $938 Cloverlane apartment buildings in to 4.5 percent year over year, said Ⅲ Warren/Roseville: $708 Washtenaw County’s Pittsfield Kevin Dillon, partner at the Troy Ⅲ Ypsilanti: $816 Township for $84 million as part of a joint venture with Birmingham- office of Phoenix-based Berkadia. Source: Marcus & Millichap “The question is, ‘Are we at a based Belfor Holdings Inc. in April. peak?’ We are certainly near the But Lester said he thinks new By dollar value, the deal for the top, but it’s a sustainable plateau” construction is coming. 1,022 units is the largest of the year because interest rates are low, the “It’s borne out of this environ- to date in the area. state’s job market is improving and car sales are doing well, Dillon said. Matt Lester, founder and CEO of outsourced risk management Bloomfield Township-based Prince- ton Enterprises LLC, which owns or manages more than 18,000 apart- ment units in 10 states, including Michigan, said he considers the market somewhere near its peak. Vacancy rates in Royal Oak and Oak Park were 2.9 percent, while Southfield was at 3.9 percent and Warren and Roseville were 4.2 per- cent, according to a second-quar- ter report by the Southfield office of Marcus & Millichap. Across the region, 4.1 percent of the units in the metro region are expected to be vacant, according to the report, while the average rent has increased 1.2 percent to $822 per month regionwide. David Colman, principal of Bloomfield Hills-based Roco Real Es- tate Inc., which owns 10,000 apart- ments in seven states, said because properties are performing well, it’s becoming more difficult for his com- pany to find off-market deals. “It’s a seller’s market to some de- gree, but it’s all about how creative you are and how you find the deals,” he said. WHAT PATH ARE YOU ON? Dillon said there are three groups that have been consistent renters in the apartment market: people who will always live in apartments because they prefer the flexibility; those who are saving up for a home; and those with less in- come who cannot afford a home and live in government-subsidized Minimize Exposure. Reduce Expense. or lower-income units. But a fourth demographic has The Sterling Insurance Risk-Path-Process® is a proven been apparent in recent years: new multi-channel, enterprise level risk management strategy. college graduates and other young people who want to be in or near To find out how you can minimize your exposures while downtowns like Ferndale, Royal driving down your cost, contact a Sterling Certified Risk Oak and Detroit but who don’t want the responsibility of home Architect to get you on the right path. ownership. Even though it seems like there 888.525.7575 | 586.323.5700 | sterlingagency.com is a new apartment or loft proposal for a downtown or Midtown build- ing virtually every week to satisfy demand, new multifamily con- struction in the suburbs has been limited, said Andrew Hayman, Sterling Insurance Group is a Michigan based company. president of Troy-based Hayman Co. 20141020-NEWS--0015-NAT-CCI-CD_-- 10/16/2014 4:26 PM Page 1

October 20, 2014 CRAIN’S DETROIT BUSINESS Page 15 Real Estate Report calls Belle Isle stormwater project successful; city to review

BY JAY GREENE creates a siphon action to pump year, the city is still responsible Partlin said. “Our technology is can reduce that amount.” CRAIN’S DETROIT BUSINESS surface water back into the for stormwater management, Pez- completely scalable. We can take Each year, Belle Isle costs the ground. za said. these numbers and show state and city about $338,000 for stormwater A pilot project designed by De- “All indications from the data “Our goal was to test this tech- national parks across the country treatment, said Pezza, citing a pro- troit-based Parjana Distribution LLC shows that it is a success,” said Gil nology to see if it works,” Pezza how well our system works. ject document. to remove pools of standing water Pezza, the MEDC’s director of wa- said. “Once they overcame this “Everybody wants hard data. Parjana, founded in 2004 by on Belle Isle and inject it back into ter technology. “The engineer says first obstacle, it is up to the market Now we have it.” CEO Andrew Neimczyk, has been the ground appears to be working, those figures will improve over to take over and others might do McPartlin said the Parjana demonstrating its technology at according to a report by Environ- time as (the devices) settle into the further funding.” drainage system could save the golf courses, residences and the mental Consulting and Technology terrain.” Gregory McPartlin, Parjana’s city of Detroit thousands of dollars Coleman A. Young International Air- Inc. Pezza said it is up to the city of managing partner, said ETC tests by reducing stormwater sent to the port in Southeast Michigan over The report by Environmental Detroit whether officials want to confirmed other tests the company Detroit Water & Sewage Department the past several years, McPartlin Consulting, a Gainesville, Fla.- expand the Parjana system across has conducted over the past four for treatment. said. based engineering firm with offices the entire island. years that the system works. “The city of Detroit spends 8 Jay Greene: (313) 446-0325, in Detroit, found a 63 percent re- Although the state took over “We really see this (Belle Isle cents to 12 cents a gallon to treat [email protected]. Twitter: duction in stormwater runoff from management of Belle Isle this project) as our Kitty Hawk,” Mc- stormwater,” McPartlin said. “We @jaybgreene the 23-acre test area on Belle Isle from late July through September, compared with the similar nontest control area, said Joel Parker, ECT’s project engineer. “This project needed this test to verify the technology,” Parker said. “The data was statistically signifi- cant, no matter how you look at it. There was no change (in stormwa- ter runoff) in the control site and a significant amount of reduction in Get the expert attention and the test area.” Alexis Wiley, chief of staff to De- troit Mayor Mike Duggan, said the advice you need to keep your city hasn’t received the full report, only a brief spreadsheet and a sum- mary of the findings. She said the business moving forward. city was open to meeting with Par- jana to discuss the results. “We are open to reviewing the report and talking with everyone,” Wiley said. Environmental Consulting was hired by Detroit-based H20pportu- nities to conduct the engineering report on stormwater removal technology pioneered by Parjana. H20pportunities received an $185,000 grant for the project from the Michigan Economic Development Corp. Last fall, Parjana began prepar- ing the site by sinking up to 3,000 heavy plastic five-chamber tubes, or devices — measuring 12-18 inches long — at 5-, 10- and 20-foot depths. By using natural movements in the Earth, Parjana’s energy-pas- sive groundwater recharge pump FirstMerit Merchant Services

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Page 16 October 20, 2014 When it comes Real Estate Princeton to real estate Enterprises buys development, four downtown

we dig right in. Detroit buildings

BY KIRK PINHO CRAIN’S DETROIT BUSINESS

Bloomfield Township-based TCF offers financing solutions and expertise to go from Princeton Enterprises LLC has closed on the purchase of four buildings shovel ready to occupant ready. totaling more than 81,000 square feet in downtown Detroit, with re- tail and new multifamily residen- tial space planned. $19,500,000 $17,700,000 $8,000,000 $5,625,000 The buildings, which founder Senior Housing Facility Industrial Space Multifamily Property Regional Self-Storage Operator and CEO Matt Lester said were pur- chased for about $6 million, are: Construction Loan Construction Loan Construction Loan Term Loan Ⅲ The 20,000-square-foot Oslo Treasury Management Services Treasury Management Services Treasury Management Services Treasury Management Services Building at 1456 Woodward Ave. West Michigan Lansing, Michigan Southeast Michigan Southeast Michigan Ⅲ The 11,000-square-foot Singer Building at 1416 Woodward. Ⅲ The 2,500-square-foot building at 1420 Woodward. Ⅲ To learn how we can help, contact: The 48,000-square-foot build- ing at 1449-1459 Woodward. The purchase brings Princeton Patrick Skiles Andy Schneider Enterprise’s greater downtown Senior Vice President Vice President real estate portfolio to 17 buildings (734) 542-2790 (248) 740-1633 totaling more than 1 million square feet and containing more than 1,000 [email protected] [email protected] multifamily residential units. Lester said the first floor of the Oslo Building will remain as re- ©2014 TCF National Bank. Member FDIC. www.tcfbank.com tail/restaurant space, and the up- per seven floors will be used for seven to 15 apartment units. The number of units will be determined in the first quarter next year. “Whatever we put there will be luxury,” Lester said. A renovation budget has not yet been determined. The building at 1449-1459 Wood- ward is expected to have first-floor retail and 20 to 25 residential units on the upper floors. Plans for the Singer Building, which Lester said has been combined with the build- ing next door at 1420 Woodward by removing a wall, have not yet been determined. “Although the market is getting a little tighter and the opportuni- ties are fewer and farther between, we are still bird-dogging and seek- ing additional acquisitions in the central business district — us and everyone else,” he said. Southfield-based Farbman Group represented the seller, Sophie Tatarian, who owned all four buildings with separate limited li- ability companies. Kirk Pinho: (313) 446-0412, [email protected]. Twitter: @kirkpinhoCDB

COSTAR GROUP INC. The 2,500-square-foot building at 1420 Woodward Ave. is part of a group of downtown Detroit buildings purchased by Bloomfield Township- based Princeton Enterprises LLC. 20141020-NEWS--0017-NAT-CCI-CD_-- 10/16/2014 5:00 PM Page 1

October 20, 2014 CRAIN’S DETROIT BUSINESS Page 17

CRAIN'S LIST: LARGEST RETAIL CENTERS Ranked by gross leasable area

Shopping center name Leasing agent Address Gross leasable area Company Number of Rank Phone; website Top executive(s) (square footage) Center type Phone stores Anchors Twelve Oaks Mall +&)-+7 1,515,000 ?/6%6#&-+) -&-6+ >EE -67<6-*C57-6C)-622++C67 >9!EE-@&--@&"=99 #+6)*+#6 $?*+-2 1. 0>"1="%,"EE8AAA27$-/"1>!%:EE

Lakeside Mall ?7 1,506,000 ?/6%6#&-+) &(&-6)) .E C57C57+-*6722++C-6 ."EEE(7&&6)<6)&+#&#$<7"=.= #+6)*+#6 +6)6-A<$6-/6<&7+2 C)-6 2. 0!:1>"9%.!,E8AAA27$-/%)(7&*))2-* 0=.>1,:E%!>9E

Oakland Mall <6&#$< 1,500,000 ?/6%6#&-+) ++&6-+7 .> C576722++C ".>2."&)-6-C"E= #+6)*+#6 6+<&)6-/6<&7 3. 0>"1!!%:EEE8AAA2-()+*))2-* 0>"1!!%".."

Northland Center 7C-+)C 1,449,719 ?/6%6#&-+) F*+-C) C576#< >.!EE-6<$A7<6+AC2-?<$ )"E9! 77&7<+<#+6)*+#6 FF)"1!:,%:>9>8AAA27$-/<+-6<$)+2-* 0=.91!,E%9,.=

Somerset Collection -$+C7D( 1,440,000 ?/6%6#&-+) $-67-2 .E C57&*+6?7-67<6-*(7&<$F@+? >EE2&#@6-6-C"E" #+6)*+#6 0>"1>9%":EE 5. 0>"1:"=%:=:E8AAA2<$7-*67<-))<&-+2-*

Eastland Center 6+<>! #+6)*+#6 F7$(+DCF3?&7&<&-+-6/2 7$&-+7 6. 0=.=1=9.%.!E.8AAA27$-/7<)+2-* 0>.>1>.=%""""

Fairlane Town Center <$6&+'5))C 1,386,000 ?/6%6#&-+) -+$C .:E C5722++C67F<6$<67 .,EE&$&#+F@26-6+".>:%=,E> #+6)*+#6 $?*+-2 7. 0=.=1!,=%.=9E8AAA27$-/&6)+2-* 0>"1>!%:EE

Great Lakes Crossing Outlets <@+6)-A 1,350,000 ?/6%6#&-+) <@(7 .! >.+$-67&+)?&+#'!<$(7F@+?'?<)<7< "EEE)A&+-F??6+&))7"=>: #+6)*+#6 $?*+-2 ))C&*+6?7-6C)-6'?<)<-6@6 8. 0>"1"!"%!E.E8AAA27$-/#6<)(76-77&+#2-* 0>"1>!%:EE >.776-$-/7;'?<--6-6)+& &$&#+-/+&+#&+7/6&+#->E.!2 Westland Shopping Center 6-)? C57-$)5722++C67 =!EEE266+7<)+".! #+6)*+#6 /&+-7-)7<<6-?/ 9. 09="1">!%!EE.8AAA2A7<)++<62-* 0=.!1">!%.EEE

Briarwood Mall F?7<&+6<&+ 970,000 ?/6%6#&-+) F*C-+7 .>E C576722++C-+?6 .EE6&6A--&6)F++F6-6".E #+6)*+#6 &*-+6-/6

Macomb Mall &<)7-+ 933,492 #&-+) ))C6)C 9, 67-$)57')@C&77 =>>==6<&-<F@2-7@&))"E:: #+6)*+#6 +#*+< 11. 0!:1>,=%9EE8AAA27$-/*-**))2-* 0=.>1!"=%:,>"4

Southland Center <$7-) 920,000 #&-+) &))&*7 ..! C5722++C+7<?C?/67<-6 >=EEE?6(-C)-6".E #+6)*+#6 -?76-/6<&7 12. 09="1=9"%>EE8AAA27$-/7-?<$)++<62-* >.>%:E%!.E

Millennium Park &$)6& 625,209 -A6 &(F+<$-+C .: -7<-&'6-*/-<67$))7&$)7 .=..E%.=!EE&))<-&@-+&".!E @&/67&+<-77< *-%67$+7-+6-/6<&7 <*6< 0>"1=!E%,,EE8AAA26#/<2-*;/-6<-)&-; *+#*+< 6?7< 13. *&))++&?*%/6(;E &))&*67$+7-+ 0EE1>>!%:9:! @&/67&+<-)7&+# Auburn Mile 6&+)&DD6 624,212 -A6 @&6)&+# 9 &'66#<7<?C-7<--%F++<-67</)7 .EE%!E6-A+-F??6+&))7"=>: /6-/6"1=!E%,,EE8AAA26#/<2-*;/-6<-)&-; 6?7< ??6+%*&)%<$;". 0EE1>>!%:9:! The Mall at Partridge Creek <@6)-A 607,000 &7E))-)&+<-+-A+7$&/"E= #+6)*+#6 $?*+-2 15. 0!:1>>:%E==E8AAA27$-//6<6&#6(2-* 0>"1E"%",:

Tel-Twelve Mall +C6C7(- 523,411 -A6 ++&6C >. &'6-A57<*6<&$)77<?C+ >:,E)#6/$--?<$ )"E=" /6-/6"1=!=%.=8AAA26*-%#67$+7-+2-*;/-6<-)&-; 6?7< <)%= 0EE1>>!%:9:! Laurel Park Place -?$+ 489,865 #&-+) F)+-( : 67-+57-+?6 =99EE&B&)-&@-+&".!> #+6)*+#6 F77-&<76-/6<&7+2 17. 09="1":>%..EE8AAA2)?6)/6(/)2-* 0!.91=",%>E=.

Shelby Creek -6<-A*+ 440,000 -A6 ++&62)<67 ." 6#<-$)57-*/-<&$)57 >:&)-<+C(F@2$)CA/2"E," &6<-6&)&"19=9%"E".8)-6*B7<6+2-*;7$)C%6( *+#*+< 0>"19=9%"E".

Winchester Center +C6C7(- 429,788 -A6 ++&6C .: &(57/-6<&+#--767$))7<7*6<&$)57 -$7<6+F@-+-7-$7<6&))7"=E9 /6-/6"1=!E%,,EE8AAA26*-%#67$+7-+2-*;/-6<-)&-; 6?7< A&+$7<6%+<6;"E 0EE1>>!%:9:! West Oaks II +C6C7(- 389,094 -A6 ++&6C > -C7557-%F++-$)57<$C-+)? 7<'(76&@-@&"=99 /6-/6"1=!E%,,EE8AAA26*-%#67$+7-+2-*;/-6<-)&-; 6?7< A7<%-(7%&&;=, 0EE1>>!%:9:! Utica Corners Shopping Center C+-6)6( 333,727 -A6 ?7<&+-77 ., 6#<$6&7<*76$-/7?C?CC)+< .==E,))-<&"E9 /-6<-)&-*+#6 $-7<(6-<$67-2 &<+77 21. 0>"1>:>%.EEE8AAA27$-7<(2-* 0>"1="9%:>>E

Green Oak Village Place Phase I @&$&*( 314,896 &7>!%E==98AAA27$-/7<#6+-(2-* *+#6 F

Lakewood Shopping Center C+-6)6( 222,504 &#$-6$-- ?7<&+-77 .= *6< %,"A7-+@&))-))@&))"... /-6<-)&-*+#6 $-7<(6-<$67-2 23. 0>"1=!9%:>>E8AAA27$-7<(2-* 0>"1=!9%:>>E

Northpointe Shopping Center C+-6)6( 176,918 -**?+&"1=!9%:>>E8AAA27$-7<(2-* 0>"1=!9%:>>E

Windmill Plaza C+-6)6( 162,448 -**?+& *6< >>==.&)-<6)&+#&#$<7"E9 /-6<-)&-*+#6 $-7<(6-<$67-2 25. 0>"1=!9%:>>E8AAA27$7-<(2-* 0>"1=!9%:>>E

This list of multitenant retail properties is an approximate compilation of the largest such properties in Wayne, Oakland, Macomb, Washtenaw and Livingston counties. Unless otherwise noted, information was obtained from the general managers, leasing agents or the retail center's websites. It is not a complete listing but the most comprehensive available. Center types: Super-regional = draws majority of sales from a 5- to 25-mile radius, three or more anchors. Regional = draws majority of sales from a 5- to 15-mile radius, two or more anchors. Power = generally a group of superstores and not enclosed. Lifestyle = outdoor shopping and entertainment venue. LIST RESEARCHED BY SONYA D. HILL DBpageAD_DBpageAD.qxd 10/14/2014 1:17 PM Page 1

WHAT DID THEY FIND WHEN THEY ARRIVED?

Crain’s Detroit Business invited 160 prominent Detroit-area “expats” to reconnect with their hometown, see À rst-hand the reinvention taking place, and discover opportunities to reinvest in Detroit. Maybe The Detroit Homecoming was historic. But we know it was just a beginning. The “expat” Detroiters are now on a mission to make a difference in their hometown. You can read about it — and see the video — at detroithomecoming.com.

“We’re ready to buy a business here tomorrow,” Warren Buffett, chairman and CEO, Berkshire Hathaway

“If Detroit was a stock, I’d be a buyer,” “Detroit is big enough to matter in the world, Dan Doctoroff, president and CEO, Bloomberg LLP but small enough that you can matter in it,” Sara Sefcovic, vice president, Sloane & Co.

“I hang around a lot of cool crowds and this was the “Detroit needs to be about continuous coolest ever. The genuine connection of Detroiters improvement, multi-tasking the challenges and the careful selection and recruiting you did of today while continuing to build a culture created a magical grouping,” of success and optimism,” Jules Pieri, co-founder and CEO, The Grommet Mike Jbara, president, Alternative Distribution Alliance

ATTENDEES INCLUDED Eric Lefkofsky, CEO, Groupon | Don Green & Michael Budman, co-founders, Roots | Eric Ryan, co-founder, method | Bob Shaye, founder, New Line Cinema | Nicole Curtis, host, Rehab Addict | George “Iceman” Gervin, NBA Hall of Famer | Mike Posner, multi-platinum record- ing artist | Eli Broad, founder, KB Home & Sun America | Dan Doctoroff, CEO, Bloomberg | Jalen Rose, NBA star | Rebecca Blumenstein, deputy editor in chief, The Wall Street Journal | Quintin Primo III, founder, Capri Capital Partners | Braylon Edwards, NFL star | Mike Jbara, president, ADA Worldwide, Warner Music Group | Daniel Levin, chairman & founder, The Habitat Company | Ilan Zechory, co-founder, RapGenius.com

Find out what happened and keep up with future plans as they unfold at detroithomecoming.com 20141020-NEWS--0019,0020-NAT-CCI-CD_-- 10/16/2014 5:00 PM Page 1

October 20, 2014 CRAIN’S DETROIT BUSINESS Page 19

People

Schlichting Gilfillan Ⅲ Nancy Schlichting, CEO of Henry Ford Health System, and Richard Gilfillan, M.D., president and CEO of CHE Trinity Health, were selected as two of the 100 Most Influential People in Healthcare as compiled by Modern Healthcare magazine. Ⅲ Robert Chapman, M.D., director of the Josephine Ford Cancer Institute at Henry Ford Health System, was appointed to the Michigan Cancer Consortium board of directors. His Chapman term will last three years beginning in 2015. Ⅲ Bruno DiGiovine, M.D., division head of pulmonary, critical care medicine and sleep medicine at Henry Ford Hospital, was named the Michigan Health & Hospital Association Keystone Center’s first senior fellow. DiGiovine will work on the development of interventions to improve patient safety and the quality of care. JOHN SOBCZAK Ⅲ Carl Karoub, M.D., an internal Steve Shaya, M.D., medical director for Health Net Connect, said the company has sold or leased several hundred of its telehealth units and expects more medicine physician at Beaumont than 2,700 users by the end of next year. The 10- and 17-inch units are priced at $2,500 to $5,000 per kit and can be leased for $150 to $200 a month. Hospital in Royal Oak, established a $100,000 endowment in the name of the volunteers who serve the hospital system. The Carl M. Karoub Endowment for Volunteer Services also will benefit education and wellness activities. Growing remotely

Besides hospitals and specialty group Local companies TELEHEALTH DEFINED practices, telehealth devices are increas- Telehealth, a term that is replacing ingly being used by home health agen- telemedicine, is the provision of medical cies, health insurers, nursing homes, preventive and treatment services remotely community mental health agencies and tap into telehealth through telecommunications devices and other technology. Services that fall under its medical device makers, with the goal of Massey Lamm umbrella can be as simple as the use of email improving care and reducing costs. Ⅲ Kenneth Massey, senior director for communication or videoconferencing to Health Net has sold or leased several of venture development at Wayne market’s demand complex treatment such as monitoring the State University, was named recuperation and compliance with post- hundred of its VideoDoc telehealth units, chairman of the Botsford Hospital BY JAY GREENE operative instructions of recuperating patients with more than 2,700 users projected by board of directors. Deborah Lamm, CRAIN’S DETROIT BUSINESS at home. the end of next year, Shaya said. former program director for the Robert Wood Johnson Foundation, s telehealth expands under the VideoDoc allows physicians to re- was named vice chair. demands of Obamacare, a TELEHEALTH IN ACTION motely examine patients and monitor Ⅲ Kathleen number of local companies in Three examples of telehealth at work in vital signs in homes and from hospitals. Yaremchuk, hospitals, Page 21 The units, which come in 10-inch and 17- M.D., chair of the Southeast Michigan are pro- A Bill promotes more telehealth talk between inch models, are priced at $2,500 to department of jecting big growth in 2015 and beyond. insurers, providers, Page 22 otolaryngology- $5,000 per kit, but can be leased for $150 Executives of Wixom-based Health head and neck to $200 a month in a three-year contract, surgery at Henry Care Net Inc., Orion Township-based Jems technology, but we are a solutions depending on the chronic diseases. Ford Hospital, Technology LLC, Plymouth-based Interac- was elected to provider and are there to help hospitals This past summer, Health Net signed tive Frontiers Inc. and St. Clair-based Max the Women in and other providers reduce readmis- a preferred vendor contract with Dell Otolaryngology Life LLC say sales opportunities have sions and reach their patients,” said Inc. to help market and develop software section of the picked up dramatically the past two Yaremchuk American Steve Shaya, M.D., medical director interfaces with its VideoDoc system, years. Academy of Otolaryngology-Head with Health Net Connect, the telehealth Shaya said. and Neck Surgery. She will be chair- “There are lot of telemedicine com- subsidiary of Wixom-based J&B Medical elect of the WIO section. panies out there, focused on devices and Supply Co. Inc. See Telehealth, Page 20 20141020-NEWS--0019,0020-NAT-CCI-CD_-- 10/16/2014 5:00 PM Page 2

Page 20 CRAIN’S DETROIT BUSINESS October 20, 2014 Health Care Telehealth: Picture this: Managing patient care remotely ■ From Page 19 Health Net also has worked with owner and director of product de- three cameras in each ambulance on an application that will enable clients that include St. John Provi- velopment. that can transmit clear video back sensors developed by Texas Instru- dence Health System, Molina Health- We tell Max Life started off selling securi- to hospital emergency departments. ments and other companies to re- care of Michigan, United Auto Work- “ ty video cameras to businesses, but The first cam- lay data back to hospitals to moni- ers, Hurley Medical Center, Detroit retirement homes that five years ago the nine-employee era shows the tor discharged patients Medical Center, Blue Care Network company began developing a device ambulance inte- undergoing and the University of Michigan, if you have this you for the medical field, Ferlito said. rior, the second home treatment. Shaya said. “We thought physicians could shows the para- “A physical Shaya said Health Net also can offer this assess patients early on in ambu- medic and the therapist might is developing a preferred as a service to lances and that might save lives patient, and the want to docu- vendor relationship with the and reduce costs,” he said. third is hand- ment the activi- United Nations to deliver your residents Launched in June, Max Life’s de- held and allows ty of a patient telehealth units to rural ar- vice is priced at $20,000, depending the paramedic to who goes home eas in remote parts of the on the peripheral devices, and in- closely display and needs con- where they can Lasser world to connect providers cludes a two-year wireless connec- the patient’s in- tinuing rehabili- there with urban medical jury, Ferlito said. tation for an in- stay at home tion with Verizon Wireless and soft- Hart centers. ware updates, Ferlito said. “It allows ambulances to live- jury,” Hart said. During the next two years, and have It can be used by hospitals, ambu- stream to doctors in the hospital “A Bluetooth sensor would track Shaya said, Health Net plans to is- lance companies, nursing homes and more quickly diagnose the their activity while they are doing sue an initial public offering to fi- medical visits with and retirement centers, he said. problem and prepare the emer- it, send it back online and the nance expansion nationwide. In “We tell retirement homes that if gency room,” Ferlito said. physical therapist would monitor 2013, Health Net generated more their doctors. you have this you can offer this as a At Jems Technology, CEO Kevin it.” than $1 million in revenue, with ” service to your residents where they Lasser said the company has de- Hart said the device would cost projections this year to exceed $18 Frank Ferlito, Max Life Inc. can stay at home and have medical veloped proprietary software that $50 to $100. million, he said. visits with their doctors,” Ferlito allows telehealth devices on iPads, “We are working on a lot of tech- Like Health Connect’s VideoDoc, linked to wireless devices such as said. “It’s a convenience for patients smartphones or other devices to nology that will represent a big Max Life Inc. offers its Advanced stethoscopes and EKG machines to and a way they can stay at home and securely transmit video images or savings for patients,” he said. Telemedicine for Pre-Hospital Diag- transmit data to hospitals or physi- get in front of their doctors.” data on patients to protect medical “They can connect remotely, and nosis and Care unit that can be cian offices, said Frank Ferlito, co- The Max Life device features privacy. the costs will be very low.” Lasser said Jems primarily sells Ortele LLC, a remote-based tele- to technology companies that man- health service based in Bloomfield ufacture a variety of devices. Hills, is a startup company that be- Over the past several years, Jems gan this year and is offering remote has sold its software and telehealth medical consulting, said COO devices in Michigan to Sparrow Hos- Melissa Merideth-Phelan. pital in Lansing and War Memorial Ortele currently works with cor- Hospital in Sault Ste. Marie in the rectional facilities and mental Upper Peninsula, and is negotiating health providers to provide online with other hospital systems, Lasser and cloud-based physician and ad- said. vanced practice nurse consulta- The company also contracts tions, Merideth-Phelan said. with the Veterans Administration, De- With some 19 providers, includ- partment of Homeland Security and ing nine physicians and nine Department of Justice for its secure physician assistants or nurse prac- health care systems, he said. titioners, Ortele is looking to ex- Jems, which recently signed a pand in obstetrics, eldercare, reha- contract with Amerinet, a St. Louis- bilitation and substance abuse based group purchasing organiza- services, Merideth-Phelan said. tion, has been growing recently The company employs five full- and now has 10 employees. time and five part-time workers, “The future is to provide health she said. care outside of hospitals, where Merideth-Phelan said Ortele the costs are lower,” Lasser said. works with facilities and clients Lasser said Jems’ Rugged Solu- that are able to bill insurance claims tion portable laptop system works for services. Payers include in rural areas. Medicare, Medicaid and private in- “Paramedics in an ambulance surers like Blue Cross Blue Shield of can go out in remote areas in the Up- Michigan. per Peninsula and use our technolo- “We are looking to expand into gy to call neurologists in Ann Arbor assisted-living facilities and nurs- for an examination,” Lasser said. ing homes,” Merideth-Phelan SOMETIMES EVEN “The patient may be having a said. “Our expansion is deter- stroke. The neurologist can pull his mined by the marketplace and smartphone out and do a visual what insurers pay for. Home HEALTHCARE HEROES exam.” health is not reimbursable now. ® The system also connects to a We hope that changes because NEED A CHAMPION variety of other devices to mea- there is a need.” sure blood pressure, pulse and Other telehealth companies in Healthcare professionals and executives rely on our attorneys heart conditions. Southeast Michigan include Farm- to obtain the right results in the boardroom and courtroom, Since 2012, Lasser said, the com- ington Hills-based Critical Signal pany has doubled sales each year Technologies and Ann Arbor-based so they can stay focused on their patients and business. and projects continued growth the Biotronics. next several years. He declined to The Biotronic NeuroNetwork Q Licensure Actions QTransactions QMedical Liability QCON provide revenue. was the first system to develop QIntegration QManaged Care Contracting & Disputes QMedicare & Medicaid QCompliance Christopher Hart, president of real-time remote neural monitor- Interactive Frontiers, said his 15- ing of patients in hospital operat- year-old company is expanding ing rooms through a secure inter- from its primary sports analysis net connection. software program into physical re- Critical Signal manufactures a habilitation. number of in-home health moni- In Southeast Michigan, Hart said, toring products, including a wire- Interactive sells its V1 sports analy- less personal emergency response sis software locally to Detroit Medical system and a medication manage- D. Jennifer Andreou Mark S. Kopson Center for its sports medicine pro- ment system that sends out an Medical Liability Practice Group Leader Healthcare Industry Group Leader gram to record training programs. alert and automatically distrib- 586.466.7607 | [email protected] 248.901.4061 | [email protected] The software helps golfers, tennis utes pills from a locked container. players and other athletes improve Jay Greene: (313) 446-0325, their performance. [email protected]. Twitter: Michigan • Ohio • Indiana • www.plunkettcooney.com But Interactive also is working @jaybgreene 20141020-NEWS--0021-NAT-CCI-CD_-- 10/16/2014 5:01 PM Page 1

October 20, 2014 CRAIN’S DETROIT BUSINESS Page 21 Health Care Hospitals among health providers using or testing telehealth

BY JAY GREENE charge for congestive heart failure CRAIN’S DETROIT BUSINESS and 14 discharged with VideoDoc,” Hospitals are he said. “Only one patient was read- At least 12 telehealth networks “ mitted who used telemedicine. It in Michigan are using online looking at was a very successful trial.” technology to connect David said he is looking for fund- providers with patients and different ing to do a much larger trial with consulting physicians across VideoDoc at all St. John hospitals vast distances — from hun- solutions, and possibly other competing hos- dreds of miles away in the Up- pitals in Southeast Michigan. per Peninsula down to South- and “These Medicare patients with east Michigan’s many teaching heart failure are very sick with hospitals. telemedicine multiple chronic conditions, and Patients with strokes, heart has a huge many are not compliant with all the problems, cancer, mental health pills they have to take,” David said. issues, diabetes, skin problems or role to play. Despite efforts to reduce read- emergency trauma are linked ” mission rates, hospitals still read- through fast and secure Internet mit 20 percent of their Medicare connections and video conferencing. Shukri David, M.D., St. John Providence Health System patients, on average, depending on “The whole field of telehealth the condition, David said. medicine is just in its infancy, but “With the penalties (from the Cen- there is a large market for the man- be completed later this year. ters for Medicare and Medicaid Ser- agement of patients with chronic “We will take lessons learned vices), all hospitals are in the same illness,” said Shukri David, M.D., and hope to do this at all Henry boat,” he said. “Hospitals are looking medical director of heart and vascu- Ford hospitals,” Eide said. at different solutions, and telemedi- lar services with St. John Providence Over the past 18 months, Henry cine has a huge role to play.” Health System. Ford also has been piloting a simi- Ⅲ Oncology: The University of Michi- “The No. 1 reason why patients lar project at a clinic operated by gan Comprehensive Cancer Center uses are admitted to hospitals is for Community Health and Social Ser- telehealth by bringing together can- chronic heart failure,” David said. vices Center Inc. in Detroit, demon- cer specialists and other staff to dis- “They have multiple illnesses and strating reduced costs and im- cuss diagnoses and treatment plans. are quite sick and need constant proved quality, Eide said. The group consultations, which in- care. Telehealth is one way to Ⅲ Cardiology: At St. John over clude radiology images, tests and monitor the care they receive after the past year, David has been pilot- lab results, allow care teams to pre- they leave the hospital.” ing a telehealth project with sent and discuss numerous difficult Nationally, there are more than Wixom-based Health Net Connect cases in a single session. 200 telehealth networks and more COURTESY OF HENRY FORD HEALTH SYSTEM and its VideoDoc system. Jay Greene: (313) 446-0325, Dermatologist Melody Eide, M.D., is leading a telehealth pilot project at Henry Ford than 3,500 service sites in which “We looked at a small number of [email protected]. Twitter: West Bloomfield Hospital in which emergency physicians take iPhone pictures of hospitals and other providers use patients — 14 with standard dis- @jaybgreene ER patients with skin problems and send them to consulting specialists. telehealth services, according to the American Telemedicine Association. For example, the Michigan Stroke Network, founded by Livonia-based CHE Trinity Health, is one such col- laborative network of hospitals that uses telehealth technology to allow stroke patients 24-hour ac- cess for consultations from neu- roendovascular specialists. Using bedside videoconferenc- ing, telemedicine medical teams in hospital emergency centers can {HighŖlighted.} consult with neurospecialists who live in faraway cities. Dozens of pilot and demonstra- tion projects are also underway by Michigan hospitals, nursing homes, Sign Up for a Plante Moran Webinar physician organizations, home health agencies and telehealth com- The accountants and consultants of Plante Moran panies. Here are three hospital- based examples: are back with their fall webinar series — which is Ⅲ Dermatology: Melody Eide, not to be missed if you are in business. These M.D., a dermatologist based in Troy, is spearheading a new tele- CPE-approved* sessions cover critical business health pilot project at Henry Ford topics like the complexities of international West Bloomfield Hospital. business, technology strategies, and of course, In a grant from the American Acad- emy of Dermatology, emergency year-end tax planning. Double-booked? Don’t physicians are taking iPhone pic- worry. Visit our archives and enjoy the presentation tures of ER patients with skin prob- lems and sending them to consulting at your convenience. Sign up today and find out dermatology specialists, Eide said. why Plante Moran’s webinars offer “A patient comes into the ER with blisters or ulcers, a severe skin con- dition,” Eide said. “Using an iPhone a higher return on experience. application to upload a photo of the lesion and other pertinent history, (the image and data) is sent either to an iPhone or (Web-based computer) of a dermatologist on call.” The goal is for the consulting dermatologist to issue a treatment Register at webinars.plantemoran.com. recommendation or diagnosis in * Plante Moran is registered with the National Association of State Boards of Accountancy (NASBA) an hour, Eide said. as a sponsor of continuing professional education on the National Registry of CPE Sponsors. Some 25 physicians in the de- State boards of accountancy have final authority on the acceptance of individual courses for partment of dermatology at Henry CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry Ford Medical Group, 18 residents of CPE Sponsors through its website: www.learningmarket.org. and more than 10 emergency medi- cine physicians are testing the pro- gram, which began July 1 and will 20141020-NEWS--0022-NAT-CCI-CD_-- 10/16/2014 4:59 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS October 20, 2014 Health Care Telehealth bill promotes more talk with providers about what’s covered

BY JAY GREENE hibitive to me as a primary care ments for fee-for-service beneficia- CRAIN’S DETROIT BUSINESS physician.” ries. Medicaid covers services that Kipa said Blue Cross has re- include consultation, office visits, Michigan has been in the fore- sponded to physician interest for psychotherapy, pharmacologic front nationally in paying for tele- some telehealth services. For ex- management and end stage renal health services under its Medicaid ample, Kipa said specialists asked (kidney) disease related services. program since 2006. Blue Cross to cover telehealth “Telemedicine is just becoming But telehealth legislation ap- sleep disorder studies. viewed as a potential tool to im- proved in 2012 — and promoted by “We used to require patients go prove access in many different its supporters as expanding com- to sleep labs” for treatment evalua- ways,” said Rick Murdock, execu- mercial insurance coverage of tele- tion, Kipa said. “We realized it is tive director of the Michigan Associ- health — has stimulated more of a easier done at home with a sleep ation of Health Plans. discussion between private health monitor in their own bed. It made “It can be a tool to link primary insurers and providers about what sense. We cover that now.” care with specialty services and a telehealth services should be cov- Snyder also expanded Medicaid tool that can be used to help drive in- ered rather than an explosion of cov- coverage for telehealth when he appropriate utilization in an emer- ered services, several insurance ex- signed House Bill 4714, the Healthy gency room and link to more com- perts told Crain’s. Michigan program. Some 400,000 ad- munity services,” Murdock said. Bills approved in 2012, House ditional Medicaid recipients now Over the next several years, Mur- Bills 5408 and 5421, and signed into have access to telehealth services dock predicted an explosion in tele- law by Gov. Rick Snyder require under Obamacare. Michigan now health services by primary care health insurers to pay for health covers 2.5 million people under Med- physicians in rural and urban areas. services claims delivered by tele- icaid, or 25 percent of its population. Jay Greene: (313) 446-0325, health by banning insurers from In 2013, Michigan Medicaid [email protected]. Twitter: requiring face-to-face contact be- eliminated any distance require- @jaybgreene tween providers and patients for treatment coverage. The language of the legislation, however, had one loophole. It al- lowed insurers to continue to decide if they wanted to cover the service. George Kipa, M.D., deputy chief medical officer for technology with Blue Cross Blue Shield of Michigan, said the number of telehealth claims paid by Blue Cross hasn’t changed much over the past several years. “We pay about 500 claims a year,” said Kipa, noting that most of the claims come from rural ar- eas of the state where there is a lack of availability of specialists. In 2000, Blue Cross began cover- ing telehealth services and now mir- rors Medicare, Kipa said. Medicare has expanded the types of services covered, but limits coverage to only when a patient is located at a med- ical facility — not at home — that is located in a health professional shortage area or in a rural county. While the Michigan Medicaid program has expanded the number of telehealth services it covers, Blue Cross hasn’t adopted Medicaid re- imbursement codes because physi- cians on its provider panel haven’t asked for additional coverage, Kipa said. “The (2012 telehealth legisla- tion) catalyzed conversations with providers” about telehealth ser- vices, Kipa said. “The vast majori- ty of primary care doctors are not quite there yet” in needing to bill for telehealth services. Ron Williamson, M.D., a solo fam- ily medicine provider in Detroit, said he doesn’t see a need yet to offer telehealth services to his patients. His of- fice is a Blue Cross-certified patient-centered medical home that has installed Williamson a disease reg- istry and an elec- tronic health record. “I have not used a telemedicine device or equipment,” Williamson said. “I think it would be cost pro- 20141020-NEWS--0023-NAT-CCI-CD_-- 10/17/2014 11:03 AM Page 1

October 20, 2014 CRAIN’S DETROIT BUSINESS Page 23 Health Care Epidemiologist talks about hospital preparedness for Ebola

BY JAY GREENE Band talked with Senior Re- swer back in 24-36 hours. We hope to identify a dedicated CRAIN’S DETROIT BUSINESS porter Jay Greene about how the Patients rapidly deteriorate and DISEASE ROSTER volunteer team, starting with first health care community is prepar- would need ICU management with responders and emergency staff, Here are some other infectious Ebola is only one of several dis- ing. Answers are edited for length a dedicated team. who will train to take care of po- eases that are on the mind of Jef- diseases health care providers and clarity. need to be aware of, according to tential Ebola patients. frey Band, M.D., chairman of epi- Do hospitals need to purchase more Dr. Jeffrey Band. demiology at Beaumont Health Are hospitals ready to identify and or new supplies and equipment to pre- MERS (Middle Eastern The CDC is studying whether to des- System in Royal Oak. treat Ebola patients? pare? Respiratory Syndrome) is a problem ignate one Ebola-certified hospital in “It is one of many things keep- In general, the level of prepared- I believe so. Even though the in Saudi Arabia and other Arabian each state. Is that a good idea? ing every hospital busy,” said ness overall is not great at the ma- original CDC guidelines make rec- Peninsula countries, where it is We already have several hospi- Band, a nationally known infec- jority of hospitals. Hospitals have ommendations on the types of sup- more readily spread than Ebola. tals in the country with dedicated tious disease expert and head of not dealt with this entity other MERS kills about 41 percent of its biocontainment units with person- plies, there are full-body impervi- victims. the special pathogens branch with than the four or five specialized nel who have training. Those beds the Centers for Disease Control and ous gowns that I prefer because hospitals across the U.S. with bio- Enterovirus, a serious are not filled. Prevention. that represents a higher level of neurological disease. “Fortunately, containment units. The second nurse in Texas was But, with a protection than (basic gown, mask, we know how to protect health care transported to Emory University Hos- death rate of booties, gloves and goggles). workers to limit the spread.” What do hospitals need to do to pre- pital in Atlanta. Shouldn’t patients more than 70 Chikungunya virus, a non- pare? be cared for in those facilities? It percent, Ebola What did Texas Health Presbyterian contagious disease spread by The key is effective triage and makes sense because the intensive strikes more Dallas Hospital do wrong? mosquito bites, has infected prompt identification. The mo- millions of people in the Caribbean care required will take a tremen- fear into many We do not know exactly yet. The ment that somebody appears with and 750,000 people in the people despite CDC and the Texas Health Depart- dous amount of resources — built- a significant travel history and or Dominican Republic, with about a in lab, X-ray, ICU — but every hos- its low inci- ment will issue a report. From 10 percent death rate. dence. exposure within a 21-day window, what I know, they made a number pital has to take added steps to that patient needs to be masked “Up until this year, Chikungunya make sure no spread occurs. “It is new and of mistakes that would not have never has been in the Western and placed into an isolation unit. It takes more than just having a very contagious Band been made at Beaumont. Hemisphere. Now it is in every when a patient If they have a positive travel his- Caribbean island, Puerto Rico and policy and a team. You need to has symptoms,” he said. tory (West Africa connections), What else is Beaumont doing to Florida, with scattered cases on practice, drill, then practice and Meetings are planned soon with they do not go into the ER. They go prepare? the East Coast,” Band said. drill some more. the Oakland County Health Depart- into an adjacent decontamination, No. 1, you absolutely at all times ment and the Michigan Department negative pressure, isolation room. need to have a buddy system. The mum of two people caring for the What is the chance that Detroit will of Community Health to discuss Ebo- Many hospitals have these for Texas hospital did not do this. The patient so if there is a break in see an Ebola patient? la with local hospitals and physi- chemical emergencies. Texas hospital also did not log technique, that other person says The chances are very low. There cians, Band said. As of right now, individuals each person in and out of the pa- stop. There also needs to be a third is a very small Liberian communi- Since last week, Beaumont has would be cared for, stabilized and tient room. There needs to be a sec- person watching with audio and ty in Michigan. New York has yet been training its emergency staff diagnostic testing performed. We ond person helping an individual video set up in the negative pres- to see an Ebola patient. They have to screen patients before they en- have the same tests in Michigan put on and take off the gowns. At sure isolation room to make sure suspected some cases, but they all ter the emergency room. the CDC has. We can get the an- all times there should be a mini- breaks in protocol don’t occur. turned out to have malaria.

Inpatient Days

ER Visits

Community Health Encounters

Associates

Philanthropic Donors

Physicians

Volunteers

Outpatient Centers

15 YEARS

Although St. Johnn Providence Health System hhasa accrued some impressive Hospitals numbers over the past year, that’s the last thing we make our patients feel like. As we celebrate 15 years together, we look forward to the continued years ahead of treating each patient—body, mind and spirit.

Believe in better

St. John Hospital & Medical Center | Providence Hospital | Providence Park Hospital | St. John Macomb-Oakland Hospital | St. John River District Hospital 20141020-NEWS--0024-NAT-CCI-CD_-- 10/17/2014 10:24 AM Page 1

Page 24 CRAIN’S DETROIT BUSINESS October 20, 2014 New Pure Michigan chief: Expand Experience the Premium Lifestyle at the Palace regional, global tourism efforts The state’s heralded It’s a combination of you’ve convinced them they Pure Michigan campaign both national ad buys and should spend their precious dol- will soon have a new regional targeted ad lars and time to come to Michigan. leader — one who plans to buys. We’re going to look expand the outreach to at our partners to lever- How do you envision bringing more potential tourists to a age our brand. We want international visitors to the state? broader geographic base. to make sure people know You have a fantastic asset in De- David West, vice presi- this is a great place to go troit Metropolitan Airport. We have dent of the Pennsylvania- and get out of the city and world-class universities that bring based Pocono Mountains have a great experience. in thousands of international stu- Visitor Bureau, will take dents. And there are corporations over Dec. 1 as vice presi- What are your plans to that have international customers. dent of Travel Michigan, Q&A grow the brand and bring You have a wonderful opportunity where he will oversee more tourists to the state? to bring these entities together and tourism branding, adver- David West, There are four areas: brand this message to these coun- tising and public rela- Travel Michigan Advertising, social me- tries. In tourism, it’s a snowball ef- tions. dia, public relations and fect. You bring in a few people, The Pure Michigan campaign content for people to research on they have a great experience, and has a $29 million budget this year, the website. That combination is they go home and talk about it. compared with the less than something we can put together in a They are going to convince people ROUNDBALL SUITE $3 million the state of Pennsylva- harmonious way. People are going to go themselves and check it out. I nia puts toward tourism efforts, to see a message, they may read an am very excited to get started. West said. article, they are going to go on the Chris Gautz: (517) 403-4403, • Enjoy the suite experience on a per seat basis West also has worked for the website, and they are going to fall [email protected]. Twitter: • Unlimited premium food and beverage included Bucks County Conference and Visi- in love. When it works all together, @chrisgautz tors Bureau, northeast of Philadel- phia. Before that, he taught at Drex- el University and Temple University. West, 43, grew up in East Lans- ing and earned a bachelor’s from the University of Michigan in natural resources and a master’s degree from Michigan State University in parks, recreation and tourism re- sources. West, who replaces George Zim- DVISOR POTLIGHT mermann, who retired in April, A S spoke to Capitol Correspondent Chris Gautz about his new job. An- swers have been edited for length LAURA EAMES and clarity. Vice President of Employee Benefits

What interested you about the Laura’s group health and welfare benefits experience spans COURTSIDE SEATS job? 12 years, serving a broad range of employers. Her clients As a Michigander, I am very proud of what’s been happening value her outstanding service and understanding of critical • Available in half and full season packages for tourism. I’ve had the pleasure business factors that impact their benefits strategy. She takes • Includes access to private Courtside Club of following the campaign from an a personal and thoughtful approach to her work that makes industry perspective. It’s won a lot her an integral part of every employer team she advises. of awards. From a marketing per- spective, I did happen to see a lot of the commercials. There is a high 535 Griswold Street, Suite 1600 • Detroit, MI 48226 • www.lovascogroup.com • 313.394.1700

regard for the branding campaign A Member Firm of M Financial Group. that Michigan has run. It’s still ref- LoVasco Consulting Group is Independently Owned and Operated. erenced as one of the all-time best campaigns. This is a way to really bring attention to your state.

Is there anything you want to change about the Pure Michigan campaign? I want to wait before I make any decisions. But I am very excited Let the Giant Buy Your about the initiatives for interna- tional tourism. It will be a stronger priority moving forward. I look INDIVIDUAL SUITES forward to visiting with all the stakeholders and getting a sense for what’s working and what’s not. • Available for Pistons games, concerts, and family shows IT A$$ET$ Are there specific markets you • Includes premium food and beverage options want to reach? I think Chicago and the sur- rounding states and major metro- politan areas are prime targets. They are a drive market, such as Columbus, Indianapolis, Cleve- land, Pittsburgh, Minneapolis and Green Bay. I still believe in a strong Midwest, regional and East Pistons.com/premium Coast campaign, but we have the resources to bring in people from E-waste recycling/data destruction/computer liquidation (248) 377-8477 across the nation. Would you do that through target- Call: 248-891-7330 or Email: [email protected] ed ad buys to specific regions? 20141020-NEWS--0025-NAT-CCI-CD_-- 10/17/2014 10:24 AM Page 1

October 20, 2014 CRAIN’S DETROIT BUSINESS Page 25 1HHGDQ,QYHVWPHQW Henry Ford College offers state’s 5HDO(VWDWH/RDQ" first industrial sewing program

BY ART AISNER SPECIAL TO CRAIN’S DETROIT BUSINESS

Sylvia Jackson has more than four decades of experience as a seamstress, but she isn’t ashamed to admit there’s more to learn to re- alize her longtime dream of start- ing a business with her daughter. She took a big step toward her goal last week as part of the inau- gural class of the Industrial Sewing Certificate Program, Michigan’s &DOOXV first such training course, which kicked off at Henry Ford College in /RDQDPRXQWVDQGDERYH Dearborn. “I’m self-taught and have been $GGLWLRQDODYDLODEOHORDQV doing this since the seventh grade, ‡6%$86'$/RDQV but I want to learn and enhance my skills,” the Ecorse native said dur- ‡2ZQHU2FFXSLHG5HDO(VWDWH ing a launch ceremony at the col- ART AISNER ‡/LQHVRI&UHGLW Students Sylvia Jackson (striped shirt) and Tracey Agnew (red) watch instructor ‡$FFRXQWV5HFHLYDEOH lege’s Michigan Technical Educa- Rachna Chandra use an industrial sewing machine during a kickoff event for tion Center. “I’m excited about this Michigan's first Industrial Sewing Certificate Program at Henry Ford College in ‡(TXLSPHQW because it’s really about fine-tun- Dearborn last week. ‡%DQN:RUNRXWV ing my technique and perfecting what I can already do.” to learn a true trade and earn a liv- Jackson, who calls herself “of re- ing wage,” Buscemi said. “Our in- tirement age,” is one of four stu- dustry surveys show there are dents in a pilot program designed The heart of our roughly 300 advanced industrial to return to Michigan the lost art of “ sewing positions open right now industrial sewing and meet em- program is the that companies can’t fill because ployer demand in the apparel, fur- unemployed and they don’t have the workforce.”  niture and automotive supply sec- Those same surveys show the ZZZHFOLSVHFDSLWDOJURXSFRP tors. For the next six weeks, underemployed, and bulk of the current industrial 2UFKDUG/DNH5G6\OYDQ/DNH0, participants will spend 180 hours sewing workforce is nearing retire- ³6LQFH´ working with industry experts to we’re offering an ment age and will need to be re- hone the skills needed for jobs placed over the next decade. That’s once thought lost overseas but are opportunity to learn what attracted Jacklyn Hatch, 25, returning as companies push for to apply for the program after see- reshoring, said Karen Buscemi, a true trade and earn ing a Facebook post about it. president of the Detroit Garment “I’ve been jumping from job to Group Guild. a living wage. job, and I want to absorb some The local nonprofit drove the ” technical skills and take what I collaboration among Henry Ford Karen Buscemi, learn here and springboard it into College, the Southeast Michigan Detroit Garment Group Guild a career or my own business,” said Community Alliance, Michigan Works, Hatch, of Hazel Park. The program local employers and the Minneso- is currently noncredit and costs pays based on skill level. He can’t ta-based Makers Coalition — includ- $2,000, but funding options are speak for the entire industry, but ing businesses, academic institu- available for eligible students that estimated that entry-level certifi- tions and nonprofits committed to apply through the network of cate holders could earn $9-$10 per restoring and rebuilding Ameri- Michigan Works centers. hour and highly-skilled employees ca’s industrial sewing heritage Buscemi and school officials could earn $18-$20. through training and workforce said it was important to keep the In addition to meeting current development. inaugural class small to tweak the demand, D’Andreta said he be- The demand for industrial curriculum, but with continued in- lieves the certificate program and sewing workers may be surprising terest there are plans to expand to other incentives could attract his to most people, but not in Mark a credited course and an associ- competitors, largely based in other D’Andreta’s business circles. The ate’s degree. Officials with Henry states, to see the benefits of doing CEO of Sterling Heights-based TDI Ford College’s Workforce and Pro- business in Michigan. Corp. — which designs and manu- fessional Development Depart- factures protective covers for ro- “We know there are a lot of rea- ment said they tried to recreate in- botics and other industrial applica- sons to work in Michigan, but until dustrial working conditions in the tions — said he has about a dozen employers see some of the skilled M-TEC classroom, and that the industrial sewing positions that he labor force that will be here to sup- goal is for students to attain the can’t fill. The majority of his em- port them, they won’t come,” he skills and knowledge to work in a ployees on the manufacturing floor said. “We need to provide an infra- variety of sewing production in- are immigrants with sewing skills structure for skilled workers to de- dustries ranging from silk and that are not being passed on to their velop.” leather goods to canvas. children like in previous genera- Chief among the other Detroit- Certificate holders can also tions. area companies participating in broaden their career paths into As a result, he said he’s had to in- the Henry Ford endeavor is South- pattern making, quality control, vest significantly in technical field-based Lear Corp., which donat- machine repairs and more. training and language courses to ed nearly a dozen industrial sewing Students will be graded on effi- maintain a viable workforce, and machine stations. Other companies ciency and the overall quality of retention has been a challenge. donated materials such as the ny- the work they produce, instructors “It’s not what we do and not what lon and polyester fabrics, provided said. we’re good at, but we train them to expertise to help shape the curricu- “Most of our students are self- get them up to speed,” said D’An- lum, and even offered their facili- taught and are used to working at dreta, a DG3 board member. “We ties for field trips and hands-on home, but this is a lot different,” thought the benefit of having a pro- training. Michigan Works recruit- said instructor Rachna Chandra, gram like this is getting prospec- ed and screened potential certifi- clothes designer and owner of Taj tive employees there already. To cate candidates and will also assist Cottage in Novi. “The biggest chal- train them so that an employer can with job placement and funding op- lenge for them will be the speed and expect a certain level of proficiency portunities for eligible students. scale of how these machines work, and bring them into the production “The heart of our program is the but at the same time it’s exciting process right away.” unemployed and underemployed, because no one else is teaching this D’Andreta said his company and we’re offering an opportunity employable skill on this level.” DBpageAD_DBpageAD.qxd 10/17/2014 11:40 AM Page 1

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October 20, 2014 CRAIN’S DETROIT BUSINESS Page 27

CALENDAR TUESDAY UPCOMING EVENTS trepreneurs and Angel and Venture Cap- CEO, HistoSonics Inc. Westin Book CRAIN’S TO HONOR HEALTH ital Professionals. 7:30-9 a.m. Nov. 6. In- Cadillac Detroit. Free; registration re- OCT. 21 CAPA Leadership Summit, 9 a.m.-2 forum Michigan. Meet women who quired. Contact: (877) 633-3500; website: p.m. Oct. 25. Asian Pacific American have started companies and learn inforummichigan.org. The Price Is Right: Are You Offering a CARE HEROES AT SUMMIT Chamber of Commerce. With keynote about investment opportunities, with Special Veterans Day Dinner, Competitive Wage? 11:30 a.m.-1 p.m. Discover ways to provide health care speaker Joe Grimm, visiting editor in moderator Paula Sorrell, vice president Automation Alley. A “lunch ’n’ team” 6-8 p.m. Nov. 11. Leadership Oakland. in an age of reform at the Crain’s residence, School of Journalism, of entrepreneurial services, innovation Keynote speaker John Barfield, veter- with Colby Spencer-Cesaro, research Detroit Business Health Care Michigan State University. GM Vehi- and capital, Michigan Economic Devel- director, Workforce Intelligence Net- an and founder of Bartech Group. Iro- Leadership Summit and Health Care cle Engineering Center, Warren. $5- opment Corp., leading a conversation work for Southeast Michigan, as she quois Club, Bloomfield Hills. $47 $10; registration required. Contact: with Christie Coplen, president, Versi- discusses how small- to medium-sized Heroes Awards, 7:30 a.m.-1 p.m. general registration, $25 LOAA veter- Sarah Lalone, (248) 430-5855; email: cor; Andrea Roumell Dickson, president companies can attract and retain a Nov. 6 at the Shriners Silver ans. Contact: info@leadershipoak [email protected]; website: apacc.net. and CEO, ENT Biotech Solutions LLC; skilled workforce. Automation Alley Garden Events Center, Southfield. land.com; website: leadershipoak and , president and Resource Center, Troy. $30 at door for Keynote speaker is Joe Flower, an Inforum BoardAccess Workshop: M. Christine Gibbons land.com. members, $50 for nonmembers. author and health care futurist. A Kickstart Your Board Experience. 1- Contact: (800) 437-5100; email: panel discussion on health care 5:30 p.m. Oct. 27. Inforum Michigan. [email protected]; website: consolidation will feature Rob With Jennifer Dudley, partner, Warn- er Norcross & Judd; Blaire Miller, en- automationalley.com. Casalou, president and CEO, St. trepreneur and partner, The Hunter Inno-vention 2014: A Medical Main Joseph Mercy Ann Arbor and Group; Nancy Phillippart, general Street Conference. 6:30-8:30 p.m. (also Livingston hospitals; Gene partner and co-founder, The Belle 7:30 a.m.-4:30 p.m. Oct. 22). Medical Michalski, president and CEO, Michigan Fund; and Mary Brevard, Main Street, Oakland County Advan- Beaumont Health; Joe Mullany, executive director, Inforum Board- tage. Showcasing the life science and CEO, Detroit Medical Center; and health care industries in Southeast Access, in a conversation on board Nancy Schlichting, president and service opportunities with privately Michigan and beyond. With keynote CEO, Henry Ford Health System. speaker Krischa Winright, CIO, Priority funded companies. Skyline Club, Health, and vice president of informa- Tickets are $110 for individuals, Southfield. $125 Inforum members, tion technology, Spectrum Health, plus $100 for guests in groups of at $175 nonmembers. Contact: (877) 633- matchmaking sessions and startup least 10. Preregistration deadline is 3500; website: inforummichigan.org. pitches. Suburban Collection Show- Oct. 31. If available, walk-in Detroit Economic Club Presents: place. Novi. $149, includes networking registration will be $130 per person. Mary Barra. 11:30 a.m.-1:30 p.m. Oct. reception, conference and luncheon; For more information, call Kacey 28. Detroit Economic Club. With the register at medicalmainstreet.com. Anderson, (313) 446-0300, or CEO of General Motors Co. Detroit Website: advantageoakland.com. visit crainsdetroit.com/events. Marriott at the Renaissance Center, Join the conversation on Twitter Detroit. $45 DEC members, $55 guests with #crainshealthcare. of members, $75 others. Contact: (313) WEDNESDAY 963-8547; email: [email protected]; website: econclub.org. OCT. 22 Michigan; Helen Stojic, director of cor- A Reporter’s Perspective: How to Get porate affairs, Blue Cross Blue Shield Minority Capital Access Forum, 8:30 Your Company on Their Radar Screen. of Michigan; and Patricia Anstett, a.m.-3 p.m. Michigan Majority Coali- 6-9 p.m. Oct. 30. North of 41. Attendees tion, Asian Pacific American Cham- health and medical journalist formerly of the Detroit Free Press. University of will learn how to nurture a relation- ber of Commerce. Bankers, communi- ship with the media. Lowe Campbell ty development finance practitioners Michigan Health System, Fairlane Center — South Building, Dearborn. Ewald, Detroit. $15 regular tickets, and business owners highlight strate- $20-$25 night of event. Register gies that help funders connect with $25 AWC members, $35 nonmembers, $15 full-time students; add $5 on day of at n41detroitreporters.eventbrite.com; minority business owners. Federal website: northof41.org. Reserve Bank of Chicago — Detroit. event. Contact: (866) 385-1784; email: Free; registration required. Contact: [email protected]; website: inGage Role Model and Investor Series: Sarah Lalone, (248) 430-5855; email: womcomdetroit.org. Introducing Women to Successful En- [email protected]; website: apacc.net. THURSDAY OCT. 23 In the Public Eye, 8:30 a.m.-noon. Troy Chamber, Delphi Foundation, Oak- land University. How public relations can expand your business, with work- shops and panel discussions on effec- M&A Experience tive media strategies. With Michael Niederquell, CEO, The Quell Group; Jessica Muzik, vice president, Bianchi ® Public Relations; Terry Beam, chief In Your Corner. networking officer and founder, Mo- torCityConnect; others. Altair, Troy. $45 chamber members, $75 nonmem- bers; includes continental breakfast. ■ Mergers and acquisitions, private equity, angel Contact: (248) 641-8151; website: and venture capital, fi nance, and joint venture troychamber.com. Taking the Pulse of Healthcare Commu- transactions nications, 5:30-8 p.m. The Association ■ Commercial transactions, corporate structuring for Women in Communications De- troit Chapter. A panel discussion with and succession planning, real estate transactions, Kara Gavin, lead public relations repre- tax planning matters, and 1031 exchange sentative, University of Michigan Health System; Desiree Cooper, direc- transactions. tor of community and media relations, Planned Parenthood Mid and South

CALENDAR GUIDELINES If you want to ensure listing online and be considered for print publication in Crain’s Detroit Business, please use the online calendar listings section of www.crainsdetroit.com. Here’s how to submit your events: From the Crain’s home page, click “Detroit Events” in the red bar near the top of the page. Then, click “Submit Your Entries” from the drop-down menu that will appear and you’ll be taken to our online submission form. Fill out the form as instructed, and then click the “Submit event” First Tier Ranking in button at the bottom of the page. Corporate Law and That’s all there is to it. Commercial Litigation More Calendar items can be found Contact Pete Roth at [email protected] ■ Metro Detroit ■ Grand Rapids ■ Kalamazoo ■ Grand Haven ■ Lansing on the Web at www.crainsdetroit.com. 20141020-NEWS--0028-NAT-CCI-CD_-- 10/17/2014 10:25 AM Page 1

Page 28 CRAIN’S DETROIT BUSINESS October 20, 2014

PEOPLE ARCHITECTURE Jamie Millspaugh to director of inte- IN THE SPOTLIGHT rior design, Neumann/Smith Archi- tecture, South- Cambridge Consulting Group has named Daniel field, from sales Cornwell as CEO. executive, W.E. Cornwell began his career at the Troy-based insurance Gingell Associ- and financial services consulting firm as a summer ates Inc., Livonia. intern in the Benefits Consulting Practice Group. He has held various positions, most recently as Cambridge CONSULTING Consulting Group president. Cameron Cornwell, 43, replaces co-founder Albert Papa, who will Kennedy to presi- serve as executive chairman of the company. dent, Cambridge Consulting Group, Cornwell earned a bachelor’s degree in Troy, from CFO. Cornwell science/finance from Walsh College. Kennedy INSURANCE Donnelly to regional vice president of NONPROFITS claims, from partner, Daniel P. Costel- Daniel Irvin to executive director, lo & Associates LLC, Chicago. Greater Farmington Area Chamber of Commerce, Farmington, from general LAW manager, Midland Mall, Midland. MARKETING Jaclyn Bussert to senior account ex- ecutive, Bianchi Public Relations Inc., Troy, from ac- count executive. Beauchamp Cosman Kevin Beauchamp to vice president, RETAIL director of strategic partnerships, Don Barnes III to Schechter Wealth Strategies LLC, president of retail Birmingham, from assistant vice Szalach Ortwein operations, Belle president, wholesaler, Eaton Vance Tire Distributors Matthew Szalach to partner, intellec- Management, Oakland Township. Bussert Inc., Allen Park, tual property department, Honigman Patricia Cosman to senior client exec- from vice presi- Miller Schwartz and Cohn LLP, dent of retail op- utive, property and casualty business Bloomfield Hills, from partner, Har- erations. division, Oswald Cos., Bloomfield ness Dickey & Pierce PLC, Troy. Hills, from senior vice president, Al- Also, B. Michael Ortwein III to part- SERVICES liant Insurance Services Inc., Troy. ner, litigation department, from as- Matthew Morrison to vice president of sistant U.S. attorney, U.S. Attorney’s Eric Aasheim to technical claims, Amerisure Mutual In- Office, Eastern District of Michigan, vice president, surance Co., Farmington Hills, from Detroit. strategy and busi- vice president of casualty and claims ness develop- legal, QBE North America, Sun MANUFACTURING ment, Global LT Prairie, Wis. Also, Laurie Pierman to Inc., Troy, from Tony Beauvais to quality and produc- vice president of vice president of claims operations Barnes and shared services, from assistant tion/engineering manager, Maxitrol sales. Also, Lisa vice president of claims operational Co., Southfield. He continues as quali- Koziol to global operations director, and systems management, and Steve ty manager. from manager, language operations.

BUSINESS DIARY ACQUISITIONS & MERGERS ed appliance, a private cloud service storms and flooding Aug. 11-13, at the for computer-aided engineering. Web- Oakland County Executive Office Neogen Corp., Lansing, a provider of sites: altair.com, vertu.com. Building, 41 W. 2100 Pontiac Lake Road, testing products for food and animal Waterford Township. Website: sba.gov. safety, said it has acquired all the out- Ingram Content Group Inc., Nashville, standing stock of BioLumix Inc., Ann Tenn., and ProQuest LLC, Ann Arbor, Arbor, a manufacturer and marketer of are expanding an e-book collaboration NEW PRODUCTS automated systems for the detection of that benefits libraries worldwide. BorgWarner Inc., Auburn Hills, is sup- microbial contaminants. The BioLu- This year, the companies made titles plying its high-performance wet-fric- from the Ebook Library available mix business will be consolidated with tion technology for Volkswagen’s new through Ingram’s OASIS content plat- Neogen’s Soleris technology, used to hybrid DQ 400e dual-clutch transmis- form. In addition, the Ebook Library detect spoilage organisms in the food sion, launching in the 2014 Volkswa- has been integrated with Ingram’s e- and nutraceutical industries. Websites: gen Golf and Audi A3 e-tron. Website: book approval plans and demand-dri- neogen.com, mybiolumix.com. borgwarner.com. ven acquisition services. Websites: Radar Industries Inc., Warren, a proquest.com, ingramcontent.com. IDashboards, Troy, a supplier of busi- provider of stamped interior, chassis ness intelligence dashboard technolo- and powertrain components and weld- EXPANSIONS gy, announced the release of iDash- Trusted Business ed assemblies for the automotive in- boards v8.5, providing users with dustry, has been acquired by Shiloh Art Van Furniture Inc., Warren, is enhanced design options, including Industries Inc., Valley City, Ohio, a opening an Art Van Flooring Design Image Plot Chart, HTML5, point-and- supplier of lightweighting products to Center and corporate office at 6340 click chart designer and report sched- the automotive, commercial vehicle 14 Mile Road, Warren. Website: art- uler, and SMS text alerts. Website: and other industrial markets. Angle van.com. idashboards.com. FindBusinessesYouCanTrust Advisors-Investment Banking LLC, Citistaff Inc., Troy, has opened an engi- Mastery Technologies Inc., Novi, has Birmingham, acted as the exclusive neering and IT sales and recruiting of- updated its video-on-demand plat- investment banking adviser to Radar. fice at 3069 University Ave., Suite 250, form. The platform, which has two it- www.bbb.org/detroit Websites: shiloh.com, radarind.com. Ann Arbor. Website: citistaff.com. erations, gives users a bookmarking Edward Rose & Sons, Bloomfield feature to allow them to return to the CONTRACTS Hills, has opened Rose Senior Living- last viewed chapter if the learner exits Clinton Township, 44003 Partridge before completing an entire course. Advanced Photonix Inc., Ann Arbor, Creek Blvd., Clinton Township, (855) Website: mastery.com. has signed a value-added reseller 856-3819. roseseniorliving.com. agreement for its T-Gauge industrial terahertz gauging system with Seltek Sight Machine, San Francisco, a NEW SERVICES Businesses: Ltd. Co., Istanbul, Turkey, a manufac- provider of cloud-based manufactur- Automotive Industry Action Group, turer of measurement and process ing services, has opened an office at Southfield, has created new conflict- Whentheysearch,willtheyĮndyou? control systems for continuous Web 900 Wilshire Blvd., Troy. Website: minerals microsites in English and production. Websites: advanced sightmachine.com. Chinese to help automotive compa- BecomeaBBBAccreditedBusiness photonix.com. seltek.com. Sweet Lorraine’s Fabulous Mac n’ nies connect with resources and meet  Altair Engineering Inc., Troy, a provider Cheez, Southfield, has opened a U.S. Security and Exchange Commis- of computer-aided engineering and restaurant at 547 E. Grand River Ave., sion requirements. Website: conflict Email:[email protected] computing software and services, an- East Lansing. Telephone: (517) 325- minerals.aiag.org. nounced that Vertu Corporation Ltd., 0850. Website: macncheez.com. Headlights Public Relations and Mar- Call:248.356.5085 Hampshire, England, a luxury mobile U.S. Small Business Administration, keting, Royal Oak, has launched a phone manufacturer, has invested in Washington, D.C., has opened a Busi- website detailing its marketing, PR Visit:www.bit.ly/applyBBB and deployed Altair’s complete range of ness Recovery Center to help business and print services to small businesses technology and services through the owners apply for low-interest disaster and nonprofits. Website: headlights company’s new HyperWorks Unlimit- loans, made available as a result of pr.com. 20141020-NEWS--0029-NAT-CCI-CD_-- 10/17/2014 3:54 PM Page 1

October 20, 2014 CRAIN’S DETROIT BUSINESS Page 29 Auto dealers turn to local government help to upgrade facilities

BY JAMIE LAREAU whether it gave Matick Chevrolet Don’t leave CRAIN NEWS SERVICE an unfair advantage over compet- ing dealerships in its local market, Consultant Hastings said the cost A small but growing number of said Mike Finney, CEO of the Michi- to secure government incentives de- auto dealerships have obtained gan Economic Development Corp. pends on many factors. It costs more tax breaks or government funds But Finney said Matick Chevro- if the company is seeking more in in connection with their facility let had local government leaders’ incentives or if it’s a complex tax-re- improvements, including George support, so “we discussed all the imbursement arrangement. Matick Chevrolet in Redford Town- options. The Brownfield TIF has His firm charges a monthly re- ship. unique purposes it can be used tainer from $2,000 to $7,000 to put Through August, about two for, and it fit this project.” together a deal, then a success fee dozen such arrangements have To earn the TIF, Zimmermann of $10,000 to $85,000, he said. been negotiated and approved na- agreed to make various infra- Industry observers believe tionwide this year. While that’s dealers simply do not do more of structure improvements on the only a handful, industry ob- these arrangements with local property, such as better storm servers say that’s noticeably more governments because they do not drainage, to hire 55 more employ- than recent years. know about them. ees with an average annual salary Local and state governments say Nick Nortz, co-owner of Nortz & of $43,000, and to buy a vacant the incentives benefit local Virkler Inc., a Ford dealership in Goodyear Tire store on adjacent economies because dealerships cre- Lowville, N.Y., said he had to dig property, which he would convert ate jobs and contribute to a strong around and do a lot of paperwork into a car wash. tax base. Dealers benefit financially to ultimately secure his tax deal, while spending on pricey improve- “In hindsight, I probably would which exempts it from local coun- ments. But the deals require up- have been better off just letting ty taxes on certain materials it LARRY PEPLIN the township demolish” the front investment by dealers in time Karl Zimmermann, owner of George Matick Chevrolet in Redford Township, said buys for its renovations. and legal fees, and they can often Goodyear store, Zimmermann Nortz expects to save about it will cost $9 million to renovate the dealership’s building and property, but the said. “I thought I might be able to come with strings. final financial outcome will be well worth the expense. $50,000 by the time a $1.5 million “The typical dealer wants less retrofit a car wash in it. renovation is complete by March government involvement in their have ever been doing these kinds The project to renovate the 50- “I probably ended up overpay- 2015. business, not more,” said Jim Ap- of deals in Southern California, year-old building and property will ing for that property, and now I That additional $50,000 might pleton, president of the New Jersey Utah and Arizona.” cost $9 million, said Karl Zimmer- have to pay for the demolition.” allow Nortz to add an extra ser- Coalition of Automotive Retailers in Hastings’ firm specializes in mann, owner of the dealership. Af- The application process was ar- vice lift and hire a new techni- Trenton, N.J., and chairman of economic development arrange- ter completion of the project, the duous and expensive. By Zimmer- cian, he said. the Automotive Trade Association Ex- ments. He has won approval for 15 improved property’s tax assess- mann’s estimate, he spent $200,000 “It’s something you have to ask ecutives, a body of state and local tax incentive deals for dealer- ment will rise, pushing up the deal- on various legal fees and other ex- for. They sure as hell aren’t going dealer groups. ships in those three states this ership’s property-tax bill. penses over the 10-year process. to offer it to you,” Nortz said. year, and four more are in the But over a period of more than Most of these deals take just a few “This is a small community, so Local government buy-in works. He did two deals in 2012 two decades, Matick Chevrolet months to negotiate and get ap- everyone knew we were grappling and six in 2013, he said. will be reimbursed for part of proved, experts said, but his cir- with this idea of an upgrade. Local governments are usually In Michigan, in August, the Michi- those higher taxes. Zimmermann cumstance was unique because of Luckily, most of the board mem- eager to invest “in the future,” gan Strategic Fund authorized tax in- says he expects to get $719,528 in ownership changes and General bers are my customers, and they said Michael Hastings, principal crement financing for George Mat- tax reimbursements eventually. Motors’ bankruptcy in 2009. said, ‘Hey, we got something that of Direct Point Advisors in Burbank, ick Chevrolet to make its various The deal created a minor stir. All in all, though, it was well might help you out.’ ” Calif. “We are busier than we property improvements. Some board members questioned worth it, Zimmermann said. From Automotive News

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Page 30 CRAIN’S DETROIT BUSINESS October 20, 2014 Orr: Post-bankruptcy Detroit needs 2014 business to promote it to investors UPCOMING BY CHAD HALCOM dents can help persuade investors developer or hotel chain has yet CRAIN’S DETROIT BUSINESS that Detroit is a safe proposition been courted for the project. PARTNER EVENTS during the estimated 10 years it The proposal calls for at least A post-bankruptcy Detroit could will not need to borrow money if a 300 hotel rooms, in a structure no be very well positioned to con- current plan of adjustment is con- more than 30 stories tall, on the Coming Up from the Troy Chamber of Commerce vince companies and financial firmed in bankruptcy court. Joe Louis property. “In the Public Eye” PR Seminar markets it’s a good place to do That will happen, he said, pri- Orr also said attendees at the con- From feared to welcomed: how public relations can business — although government marily through keeping Mayor ference represent an opportunity to help expand your business. Join the Troy Chamber for accountability and persistent un- Mike Duggan and the Detroit City network among more than 1,000 “In the Public Eye” PR Seminar featuring an all-star cast employment are issues to watch, Council accountable. people in the financial markets. of local business executives and media mavens from two leaders of its reorganization “He (Duggan) is more than up to “If I can get people in this setting CBS, FOX, MLive, Crain’s and more! Attend workshops told investors at the University of the challenge, but as citizens you to go out and network among 1,000 and hear a panel of media experts sharing effective Michigan for a Friday conference. have to keep their (elected) offi- people and even get a 5 percent re- ideas/strategies for garnering the right media attention. Detroit Emergency Manager cials’ feet to the fire. Because oth- turn on investment from that, that’s October 23 • 8 a.m.-Noon Kevyn Orr made a request of the erwise there is always a risk that 50 more investors in this city, just Altair Engineering, 1820 E. Big Beaver Road, Troy more than 100 guests at the ninth special interests will capture city by putting out the word,” he said. Members: $45; Non-Members: $75 annual Michigan Private Equity government again, and it will go Buckfire also said there is tangi- Registration: troychamber.com/events Conference, hosted by the Stephen down the same roads as before. ble evidence city services are im- or (248) 641-0031 M. Ross School of Business, to per- And it (potential recovery) will not proving, with more than 1,000 Simply Shopping suade colleagues and portfolio com- happen,” Orr said. streetlights being turned back on Enjoy a unique shopping experience, including a lavish pany executives of the city’s appeal. Buckfire and Orr also touted the per week, and the city could be ful- breakfast in the Peacock Café, presentation of gift “The city is going to need your success of a deal reached Thursday ly lit as soon as next March. items for shoppers to peruse during breakfast, a Simply support and help when those in- with bankruptcy creditor Financial But the Detroit Public Lighting Au- Shopping signature bag to tote around purchases, vestment opportunities present Guaranty Insurance Corp., a bond in- thority, in comments to Crain’s Fri- package retrieval to lighten your load, free gift-wrapping themselves … to go to business ex- surer with a $1 billion claim, to ob- day via Twitter, hedged on that, compliments of The Somerset and discounts/ ecutives and say, ‘We will assist tain nearly nine acres on the site of saying it’s been doing better than giveaways throughout The Collection. New location for you,’ ” Orr told the conference, Joe Louis Arena and a nearby park- 500 lights per week recently and this year’s afterglow: Join us at McCormick & Schmick’s which draws private equity and ing garage, and bring in a developer that city neighborhoods could be Seafood & Steaks for prizes, networking, food and drink investment bank professionals (cash bar). for a hotel, condominiums, office complete by year-end 2015. and business leaders from across space or retail. Improving services is also an op- November 7 • 8:30 a.m.-5 p.m. the U.S. Somerset Collection, 2800 W. Big Beaver Road, Troy The state of Michigan has portunity to draw investment in “You all as co-investors, and Cost: $55 per shopper (cancel by 10/31 for refund) agreed to provide $6 million for de- Detroit, Buckfire said, since the Registration: troychamber.com/events people of their ilk, have got to help molition, which likely would start city has other assets like water or (248) 641-0031 convince them that this city is the in 2017. The land is considered to that can help it compete for invest- right place for them to be.” be a valuable parcel because it’s ment with other regions of the U.S. CEO Series Luncheon featuring Rip Rapson, The Orr and Kenneth Buckfire, pres- Kresge Foundation near Cobo Center, Detroit’s down- “As a long-term economic propo- ident and managing partner of town convention hall. sition, the way to convince busi- An unbelievable event featuring CEO/president of The strategic advisory services firm Kresge Foundation, Rip Rapson, as our guest speaker. Orr said Friday the FGIC negoti- ness to come and stay and invest in Miller Buckfire & Co. LLC, both said Opportunities to be a table sponsor are still available ation included a due diligence re- the city is through the quality of for $200, which includes a reserved table of 8 with investors can make the business view of the potential for private re- services,” he said. “Because there recognition at the event. Non-Profi t Network members case for Detroit. development of the arena, are other cities to choose from (as will be featured at this event. “Detroit has done a pretty poor currently owned by the city Munici- investments) that do provide ser- November 12 • 11:30 a.m.-1 p.m. job of marketing itself, economi- pal Parking Department. He added vices to residents. And that’s real- The Met Hotel, 5500 Crooks Road, Troy cally, in the past to the kind of that the market demand and in- ly what this is all about.” Members: $27; Non-Members: $37 businesses that should be here,” vestor appetite is there for a new Chad Halcom: (313) 446-6796, Member exhibit table: $100 (includes 1 lunch) Buckfire said. hotel along the riverfront, but he [email protected]. Twitter: Non-member exhibit table: $150 (includes 1 lunch) He added that he thinks resi- would not comment on whether a @chadhalcom Registration: troychamber.com/events or (248) 641-0031

Marketing & Sales Executives of Detroit (MSED) 21st Annual Awards Gala Report: VC investment in state tumbles Webinar to help The MSED Annual Awards Gala recognizes the marketing and sales elite. It salutes those companies BY TOM HENDERSON Therapeutics Inc., which is develop- and individuals who have gone the extra mile, who are CRAIN’S DETROIT BUSINESS ing drugs to fight cancer. employers with unafraid to challenge paradigms, and who have the In the third quarter: courage to pioneer. Join executives who are making The amount of venture capital Ⅲ Vestaron Corp. of Kalamazoo, a difference in our region for a formal, but not stuffy, money raised by Michigan compa- an insecticide company, got $10 evening of networking, great food and celebration. health insurance nies fell sharply in the third quar- million. This year’s honorees are MSED Executive Leadership ter, dropping from $114.9 million Ⅲ Award: John Rakolta, Jr., Walbridge; MSED Trailblazer Stratos Inc. of Ann Arbor, Crain’s will host a webinar invested in 11 companies in the which tracks various credit card Award: Toby Barlow, Team Detroit; Herb Everss Lifetime from noon-1 p.m. Tuesday in second quarter to just $14.5 million and membership rewards on one Achievement Award: Joseph Anderson, Jr., TAG Holdings invested in seven companies, ac- its HealthFacts series, which and the MSED Platinum Award Recipients. card, got $1.6 million. cording to the Money Tree Report offers strategies to deal with November 20 • 6-10:30 p.m. Ⅲ ENT Biotech Solutions LLC of De- the Affordable Care Act. The Detroit Athletic Club, 241 Madison Avenue, Detroit issued Friday by Pricewaterhouse- troit, a medical device company, Members: $150; Non-Members: $195; Coopers and the National Venture got $940,000. Tuesday’s webinar will Tables of 8 are available Capital Association, based on data Ⅲ Loveland Technologies LLC of focus on strategies for employ- Registration: msedetroit.org or call Meeting compiled by Thomson Reuters. Detroit, which does social Web ers as they structure health Coordinators at (248) 643-6590 In the second quarter, Michigan mapping, got $781,000. insurance plans, and also on ranked 12th nationally for what Ⅲ Cribspot Inc. of Ann Arbor, how to communicate changes was its best quarter for venture which helps college students find to employees. CEED Microloan Programs capital investing in 14 years and housing online, got $660,000. Speakers are William Galvin, CEED has made $5.5 million in loans and created the second best since records be- Ⅲ Grand Circus Detroit LLC , which owner of William E. Galvin more than 1,800 jobs. Now, after 30 years of providing gan to be kept in 1995. In the first does Web and IT training, got Co. insurance in Novi, and access to capital, CEED is increasing their commitment quarter of 2000, $143 million was $250,000. to small business by reducing their interest rate. invested in 17 deals. Ⅲ BoostUp LLC of Detroit, an on- Bryan Cole, director of product Loans up to $50,000 are offered at a 5% fi xed rate In the first quarter of this year, line savings platform, got $250,000. development at for equipment, inventory, supplies and some working $37.6 million was invested in 14 As it does every quarter, Califor- Flint-based HealthPlus of Michi- capital. companies. The third quarter saw gan. To learn more and register for an upcoming loan nia led all states with $5.2 billion Michigan fall to a national ranking orientation: miceed.org or (734) 677-1400 invested in 438 deals, followed by The moderator will be Kate of 32. New York, with $1.5 billion invest- Kohn-Parrott, CEO of the De- The second-quarter total was dri- ed in 107 deals, and Massachusetts, troit-based Greater Detroit Area ven by the largest single VC invest- with $596.8 million in 86 deals. Health Council. For more local events, visit Crain’s Executive Calendar at ment round in a company in state Tom Henderson: (313) 446-0337, Registration is free at crainsdetroit.com/executivecalendar history, the $59.5 million invested in [email protected]. Twitter: www.crainsdetroit.com/webinars. Plymouth Township-based ProNAi @tomhenderson2 20141020-NEWS--0031-NAT-CCI-CD_-- 10/17/2014 5:35 PM Page 1

October 20, 2014 CRAIN’S DETROIT BUSINESS Page 31 Leggings: Grandfather sees growth opportunity for ‘Oppos’ ■ From Page 3

Oaks Mall in Novi opened in Au- said, whether leggings are a clas- gust. Oppos has earned $35,000 in sic or a trend is still yet to be seen. revenue. The company has about We’re finding that the “However, in the cycle of fash- 10 employees. “ ion from innovation to main- The company hasn’t made a young girls are the ones stream to decline, I would say leg- profit yet, but Ervin predicts the gings are currently mainstream in company will make around $12 for really loving it. Their eyes get fashion. The trend is still on the in- every leg sold. Legs are $19 apiece, cline,” she said. so a pair costs $38. While the first as big as saucers, and they Johnson also said she believes purchase may be close to $40, drag their parents over to the there is momentum for fashion every leg bought for $19 after that production in Detroit. The Detroit would create a new pair. kiosk. Garment Group Guild recently start- Ervin, who had been retired ” ed an industrial sewing program since 2004, was the founder of sev- Shelly Chilton, co-founder, designer to prepare workers for the cut-and- en startups. Among them are Con- sew industry and is working to quest Corp., a Berkley-based pub- tighten the design community. lishing company focusing on the his product wholesale to the dis- Oppos. (See story, Page 25.) According to a tributor. “We knew we wanted it to zip trauma of relocation for children, study done by the guild, there are Renting a kiosk is far less expen- apart, to give girls a means to cre- and Envision, a real estate software more than 300 open positions in sive than leasing store space at a ate an entire look that’s just for company. Ervin sold Envision to the cut-and-sew industry. mall. By using kiosks, Ervin is get- them,” Chilton said. “We’re find- the Ann Arbor branch of Citibank The Detroit-based College for Cre- ting his product front and center ing that the young girls are the for an undisclosed amount in 2004. ative Studies has also added a fash- next to some heavyweight names ones really loving it. Their eyes get He also wrote a nationally syndi- ion accessories design degree, sep- in the girls fashion industry, such as big as saucers, and they drag arate from its fiber arts program. cated column, “Let’s talk about as Claire’s and Justice. their parents over to the kiosk.” real estate,” which ran in the De- “It’s a perfect growth path for a Oppos isn’t the only company Oppos said its girls line fits girls troit Free Press for eight years. company like us,” Ervin said. Op- looking to benefit from the lure of aged 4-15. Now it is getting ready to Ervin and his family spent pos already has sold a distributor- mismatching. Secaucus, N.J.- launch its first juniors line, for $150,000 on the initial Oppos in- ship to a specialty leaser in Selina, based MissMatched Inc. specializes girls 14 and older and smaller vestment and are embarking on a Calif., who will sell the leggings in mismatched girls’ retail, includ- adults. The junior leggings will be nationwide growth plan through out of his own kiosk. Oppos also ing shoes and socks it sells under a spirit collection, with dark solids mall kiosks. In a typical kiosk plans to open a kiosk at Great Lakes its LittleMissMatched brand. on the right and light solids on the business, the owner pays rent to Crossing Outlets in Auburn Hills on Larger retailers have jumped on left leg to match school colors. SEEGER PHOTOGRAPHY Tom Ervin’s chat with his grand- the mall, purchases inventory and Nov. 1. the trend as well. Most of them will be logo-less, but Oppos recently entered into a daughter, Josie, 10, prompted a new staffs the kiosk. In addition to leggings, Oppos According to Rayneld Johnson, business idea. Ervin, 73, is now co- licensing agreement with Michigan Although Ervin has a company- sells coordinating headbands and a senior lecturer of fashion design founder of 50-50 Fashions Inc. owned kiosk in Twelve Oaks that T-shirts, said Oppos in-house de- and merchandising at Wayne State State University and has applica- follows this model, it’s not how he signer Shelly Chilton. University, leggings are a growing tions in with others. plans to grow the company. In- Chilton got her start as a design- trend. “Leggings have been Some of the Oppos leggings were a national media campaign on tele- stead, Ervin will try to sell distrib- er for Kay Unger New York, a fash- around since the medieval times, made in a factory in Roseville that vision and digital platforms, in- utorships to high-end mall kiosk ion house specializing in high-end and they have been a part of acces- specialized in accessories, but Op- cluding 50,000 banner ads and 15- owners across the country. In that women’s clothing. Chilton is a sories in different styles until mod- pos has moved its production to second spots on outlets such as case, someone else owns and oper- friend of Ervin’s daughter-in-law, ern times,” she said. Chicago, Ervin said. Cartoon Network, Nickelodeon and ates the kiosk, while Ervin sells which is how she connected with In contemporary times, Johnson Last week, Oppos was to launch Lifetime.

Greektown: Up to $60 million in renovations coming to casino ■ From Page 1

The improvements are set to be at Greektown to the new players’ where he served as executive vice gy is already in place on many of completed by the end of 2015, when club Greektown introduced in president of operations. the games in the casino, and that Greektown will re-evaluate July: GT Rewards, which enables Whenever you Also on tap is a redesign aimed will continue, Eby said, enabling whether other upgrades are need- people to earn points at 10 times “ at giving the casino a more mod- more interaction with casino ed, said Assistant General Manag- the rate of the casino’s former add new things and ern atmosphere. It will include an guests. er Brian Hall Eby. The intent is all players club and includes an “invi- upgrade ... it creates alabaster entryway into the casi- The mix of restaurants in the part of refreshing the casino’s tation-only” level. no, higher ceilings, wider open ar- food court is also under review, brand. “We made all these dangling car- excitement ... and eas and the shrinking of the casi- Eby said. “We want to be the cool boutique rots so it’s easy for people to attain no’s center bar area. In the gaming industry, it’s very place people feel comfortable in ... the next (reward) tier,” with each will draw more New carpeting, lighter wall cov- important to keep meeting con- a neighborhood joint,” he said. tier getting an additional 10 per- erings and more neutral ceiling sumers’ demands and desires with The casino’s website markets cent of earning potential, Eby said. people. treatments are planned, along new investments, whether new Greektown as “your downtown “We feel comfortable we’re pulling ” with new chandeliers to light up bill regulators, new games, a new playground where the fun never some market share from the other Steve Zanella, MGM Grand Detroit areas now dim and wood tones to slot club, a new lounge or a new stops.” But Eby said the casino is two.” create a modern, upscale look. restaurant, said Steve Zanella, still working on its overall brand- Hotel revenue is also up, he said. The heavy columns that now president and COO of MGM Grand ing campaign. “We certainly recognized early menu. dominate the gaming room floor Detroit. The changes to Greektown its on we were comping rooms to peo- Work has begun on the $1.25 mil- will be stripped down to their thin- MGM is in the process of taking new team envisions are really ple we shouldn’t,” Eby said. lion project the casino is funding ner, weight-bearing widths, while out the U Me Drink center bar area “back to the basics and nothing Comps are now more cus- to widen the I-375 ramp to the “dummy” columns that aren’t sup- and replacing it with a new enter- monumental,” Eby said. “But you tomized to key players, and cash Lafayette Street exit to alleviate porting anything will disappear. tainment lounge. The $3 million couple all of this together, and from the hotel has increased as a bottlenecking and improve access Also on tap: new signage to you’ll have a great experience.” result, he said. to the casino and downtown area. help players navigate the way to project should be completed by The casino is just beginning the Improvements already complet- But the bulk of the renovations their favorite games, adjustable early December, he said, and is an bulk of its renovations, but al- ed at the casino include installa- at the casino are set to begin later chairs, new wood-tone slot ma- example of keeping up with what ready “we’re coming into our tion of a new server and network this year with installation of a $12 chine bases and “skins” or lami- customers want. own,” Eby said. capabilities this summer, along million-$14 million HVAC system, nate surfaces, glass escalator The improvements at Greek- According to figures filed with with new machines for players to Eby said, aimed at solving the No. walls, complete renovations to six town and all of the Detroit casinos the Michigan Gaming Control Board, access their rewards and redeem 1 criticism that customers men- of eight sets of bathrooms that are a good thing for the market, Greektown gained 2 percent mar- tickets, 400 new slot machines and tion at the casino — its smoky at- weren’t already updated, and a re- Zanella said. ket share in July of this year ver- new bill validators on each of the mosphere. location of the Beaubien Street “Whenever you add new things sus the same month of 2013 and 2 games on the floor to put a stop to “I think we probably are going entrance to the casino to the and upgrade and reinvigorate percent again in September. the issues guests were having with to have one of the most state-of-the- Trapper’s Alley exit. your facility … it creates excite- Greektown’s quarterly gaming them. art (HVAC) systems in the U.S. A new pit podium with multiple ment ... (and) it will draw more revenue was up 5.4 percent at $82.7 In September, Greektown re- We’ll be drawing in 100 percent television screens and a separate people.” million compared with the third branded its former steakhouse, outside air,” said Eby who joined wall of video screens will broad- Sherri Welch: (313) 446-1694, quarter of 2013. Brizola, as Prism, adding seafood, Greektown early this year from cast sporting events in the casino. [email protected]. Twitter: @sher- Eby credits much of the upturn pasta and chicken dishes to the Warner Gaming LLC in New Mexico, New picture-in-picture technolo- riwelch 20141020-NEWS--0032-NAT-CCI-CD_-- 10/17/2014 4:12 PM Page 1

Page 32 CRAIN’S DETROIT BUSINESS October 20, 2014 Rader: Co-founder sues law firm, seeks $1.6M equity buyout ■ From Page 3 man has been continuing to negoti- field Hills-based Hertz Schram PC, did the firm would respond in court. Hallin himself returned to the firm Klann has contended in that ate with Rader, held a farewell par- not return phone calls seeking com- Rader also claims that the firm in March after departing in 2011; court case that Rader leased and ty for him and has tried to be ac- ment. is in default on its line of credit at other new partners include Bar- made rent payments on an apart- commodating. He also said the firm Rader Fishman has 30 attorneys, Flagstar, with a balance of more bara Mandell, formerly of Dykema ment she shared in Westland with was aware of the lawsuit but has including 14 partners, at offices in than $5 million, and that Fishman Gossett PLLC, and Lisa Rycus her 15-year-old son, and used to pay yet to be formally served with it. Bloomfield Hills and Washington, and Stewart were “behind in their Mikalonis, formerly of Sommers her $1,500 a week under a contract “This is disappointing because D.C. billings in 2012 by more than $1.1 Schwartz PC. signed in 2012, until he suffered his the firm since Terry’s stroke has Rader, now a Georgia resident, million” while the firm was cover- “Was Terry a loss? Obviously. stroke. shown the utmost respect to him according to court pleadings, owns ing payroll and recurring monthly But I think we’ve done remarkably Rader had tried to have that law- and his family. If you read the com- about one-third of the firm, accord- expenses out of its line of credit. well, and that’s a testament to suit transferred to Georgia, but plaint, he obviously disagrees with ing to an operating agreement at- His departure came amid down- Michael Fishman and the firm’s reached an agreement to settle in that, but I think we have been (ac- tached to the lawsuit. Fishman and sizing at the firm, which went from leadership,” Hallin said. “From my June after U.S. District Judge Nan- commodating) to a fault,” Hallin Stewart own about 29.6 percent and 46 attorneys in early 2009 to 29 in point of view, it’s a better firm, and I cy Edmunds denied his transfer re- said. 17.3 percent, respectively, while mid-2013, according to past data re- think we’ve made tremendous quest in March. “Terry has always been widely several other partners own stakes ported to Crain’s. It now reports 21 strides.” Attorney Joel Sklar of Detroit, viewed as a very solid IP litigator of less than 6 percent each. attorneys in Michigan and nine in The new lawsuit comes about who represented Klann in that throughout his career, and this Hallin said the operating agree- Washington, but no longer claims three months after Rader settled a lawsuit, declined to comment on it. lawsuit he’s initiating is not going ment was supposed to be confiden- offices in California and Tokyo as it 2013 lawsuit brought by self-de- Rader’s attorney, Donald Camp- to end well for him. In terms of rep- tial, and the firm also had an has in years past. scribed former “confidant, sound- bell of Collins Einhorn Farrell PC in utation, he could be viewed very agreement with Rader to try and Hallin said there was a small exo- ing board, assistant and … (pro- Southfield, could not be reached. differently by the end of it.” resolve the dispute without litiga- dus of attorneys after Rader’s de- vider of) comfort, companionship, Chad Halcom: (313) 446-6796, Hallin did not elaborate. Rader’s tion. He would not discuss specific parture but that the firm has re- friendship and peace of mind,” [email protected]. Twitter: attorney, Kenneth Silver of Bloom- allegations in the lawsuit, saying built with several lateral hires. Leatrice Klann. @chadhalcom

Diversified: Restaurant company to sell, lease back buildings ■ From Page 1 alone Bagger Dave’s and Buffalo Wild Wings can be capital-inten- sive, so rather than going back to the markets for equity, it’s better to use that capital for our growth.” Ground-up construction for a BWW can be about $3.5 million and $2.3 million for a Bagger Dave’s, he said. BWW build-outs in existing space on either end of a strip center cost between $2 mil- lion and $2.5 million; for Bagger Dave’s, it’s about $1.3 million. The company, which created Bagger Dave’s and is the country’s largest franchisee of BWWs, looks for new sites where the average household income is $60,000 to $90,000 and have an average popu- lation of 50,000. DRH targets end- cap or free-standing locations with large retail hubs like Wal-Mart, Tar- get, Lowe’s, Home Depot or shop- ping malls in close proximity. A typical BWW restaurant is 6,500 square feet and a Bagger Dave’s is 4,000. “We love to have the retail com- ponent with the office traffic at lunch and obviously residential,” COURTESY OF DIVERSIFIED RESTAURANT HOLDINGS INC. Ansley said. The location in Woodhaven, seen inside and out, is among 21 Bagger Dave’s Burger Tavern outlets owned by Southfield-based Diversified Restaurant “It’s really an art, even though Holdings Inc., which plans to open five more Bagger Dave’s soon. we don’t bat 100 percent.” Between $5 million and $10 mil- add things like new interior décor, DRH’s revenue has grown 141 business move to generate capital, Pre-sale, the lion of the sale proceeds will be carpeting and paint. said Ron Goldstone, a senior vice company had used to pay percent in the last three years, president specializing in retail $18 million in down some of Those renovations are expected from $45.2 million in 2010 to $108.9 real estate for Southfield-based NAI cash on hand DRH’s $52 mil- at the BWWs in Flint and Port million last year. It ranked No. 29 Farbman. and will add the lion in debt, Huron. Sterling Heights and Royal in Crain’s Fastest Growing Com- “As opposed to owning bricks $15 million or with the rest go- Oak locations will feature Min- panies list this year. and sticks, they are using their $20 million left ing toward neapolis-based BWWs’ new “sta- The company owns and operates capital to do more units,” he said. over from the opening nine dia” design, which will make the 40 Buffalo Wild Wings and 21 Bag- “It’s a component in a growth sale proceeds to new locations eating and drinking experience at ger Dave’s in Michigan, Indiana, curve.” its reserves. and renovating the restaurant feel more like it’s Illinois and Florida. It expects to But it’s likely a necessary one, DRH also has a existing ones, being done in a stadium rather have 68 restaurants by the end of Tristano said Darren Tristano, executive $20 million to Ansley said. than a sports bar. That includes the year and 98 to 102 by 2017, ac- Ansley vice president of Chicago-based $25 million development line of The new adding LED lighting, making the cording to investor documents. food market research firm Tech- credit, Ansley said. BWWs expected to open are in horseshoe-shaped bars look like Its stock on Oct. 9, the day before nomic Inc., because banks remain a In a statement, Gregg Seibert, Birch Run (Dec. 21); Hammond, they are made out of concrete, hav- the company announced the sale- little skittish about lending to executive vice president of Spirit Ind. (Nov. 16); Wesley Chapel, Fla. ing lighter-color furniture and us- leaseback, restaurants because of the high Realty, said that DRH’s “position (April 2015); and Adrian (August ing brick facades on the interior. closed at $4.92 rate of closure. as both an owner of a growing re- 2015). Other new concepts being intro- per share. On “There are limited options today gional concept as well as a success- The new Bagger Dave’s are in duced include ordering using Oct. 10, it closed for bringing capital to invest in ful franchisee of a national brand tablets, which requires about a Schererville, Ind. (Oct. 26); Grand at $5 per share business, and the sale-leaseback is fits well in our tenant profile.” $15,000 investment at each restau- Blanc (Nov. 23); Birch Run (Dec. and was trading an option. This is reflective of Spirit Realty’s portfolio is val- 21); Canton (Dec. 28); and Crown rant, Ansley said. at $4.97 mid-day what companies have to do.” ued at $8.3 billion and has about Point, Ind. (January 2015). “Every five years, you have to Friday. “It’s not only a creative way (to 2,400 properties. Every five years or so, renova- do something. The restaurants The sale- access capital), but in some cases, Kirk Pinho: (313) 446-0412, tions are expected at both BWW take a beating and it’s refreshing leaseback deal it’s the only way. It’s more necessi- [email protected]. Twitter: restaurants and Bagger Dave’s to your business,” he said. Goldstone is a common ty than creativity.” @kirkpinhoCDB 20141020-NEWS--0033-NAT-CCI-CD_-- 10/17/2014 4:10 PM Page 1

October 20, 2014 CRAIN’S DETROIT BUSINESS Page 33 Asterand: ‘New’ company returns to its old home www.crainsdetroit.com ■ From Page 3 EDITOR-IN-CHIEF Keith E. Crain GROUP PUBLISHER Mary Kramer, (313) 446-0399 use the proceeds of the sale of the at pharmaceutical companies, or [email protected] ASSOCIATE PUBLISHER Marla Wise, (313) 446- stem-cell business to grow Asterand biotech, diagnostic device compa- 6032 or [email protected] both organically and through acqui- nies and universities. It receives its EXECUTIVE EDITOR Cindy Goodaker, (313) 446- I’m glad to hear the news that the 0460 or [email protected] sition. Canepa said he will function “ stock from 75 donor institutions MANAGING EDITOR Jennette Smith, (313) 446- as Asterand’s CEO, though deci- headquarters are moving back to around the world. 1622 or [email protected] DIRECTOR, DIGITAL STRATEGY Nancy Hanus, sions on a formal title have not been “We’ve been very happy with (313) 446-1621 or [email protected] made. Michigan, because Asterand has the acquisition of Asterand,” said MANAGING EDITOR/CUSTOM AND SPECIAL PROJECTS Daniel Duggan, (313) 446-0414 or He said he has taken an apart- Canepa, who said revenue this [email protected] ment on Woodward Avenue near been the poster child for year would be $18 million to SENIOR EDITOR/DESIGN Bob Allen, (313) 446- 0344 or [email protected] TechTown and will split his time $20 million. SENIOR EDITOR Gary Piatek, (313) 446-0357 or between Detroit and an office at Michigan’s emerging bioscience “As we looked to the future, we [email protected] WEB EDITOR Kristin Bull, (313) 446-1608 or the Cambridge, Mass.-based head- could expect reasonable organic [email protected] quarters of HealthCare Ventures LLC, industry. growth, but if you really want to RESEARCH AND DATA EDITOR Sonya Hill, (313) one of Stemgent’s two largest in- ” grow a business, you need capital,” 446-0402 or [email protected] WEB PRODUCER Norman Witte III, (313) 446- vestors. Stephen Rapundalo, MichBio he said. 6059, [email protected] “Asterand has a strong reputa- The capital came in the form of EDITORIAL SUPPORT (313) 446-0419; YahNica Crawford, (313) 446-0329 tion and is a leader in providing hu- thaler Ventures, one of the oldest ven- Ratcliffe, who had served on Aster- the $8.5 million in cash from Re- NEWSROOM (313) 446-0329, FAX (313) 446- man tissue,” said Stephen Rapun- ture capital firms in the U.S., which and’s board of directors, put in a bid proCELL. 1687 TIP LINE (313) 446-6766 dalo, president and CEO of Ann was founded in 1968 and has raised for the company when it was put up The American Association of Tissue REPORTERS Arbor-based MichBio, a nonprofit $2.8 billion in 10 funds. for auction by creditors. Banks has accredited more than 100 Jay Greene, senior reporter: Covers health care, insurance, energy utilities and the environment. that promotes the state’s life sci- The two investment firms formed That auction was the result of tissue banks worldwide, including (313) 446-0325 or [email protected] ence industry. Stemgent in 2008 to supply what Asterand not being able to pay a Asterand. Amy Haimerl, entrepreneurship editor: Covers entrepreneurship and city of Detroit. (313) 446- “I’m glad to hear the news that was envisioned to be a fast-growing secured debt of $9 million to Silicon “We’ll now be looking at acquisi- 0416 or [email protected] the headquarters are moving back industry, but growth and progress Valley Bank for its financing of the tions. We’re strategizing that now. Chad Halcom: Covers litigation and the defense There’s an opportunity to grow the industry. (313) 446-6796 or [email protected] to Michigan, because Asterand has were much slower than imagined. 2010 acquisition of a San Francisco Tom Henderson: Covers banking, finance, been the poster child for Michi- “It’s fair to say the stem cell company, BioSeek LLC. business here,” said Canepa, who technology and biotechnology. (313) 446-0337 or has a strong Michigan background. [email protected] gan’s emerging bioscience indus- business didn’t meet the expecta- Stemgent won the bid for $9 mil- Kirk Pinho: Covers real estate, higher education, try,” he said. tions of its investors based on the lion, and Asterand was delisted He grew up in East Grand Rapids, Oakland and Macomb counties. (313) 446-0412 or and his father, John Canepa, was [email protected] In 2009, MichBio honored Aster- money they put in,” said Canepa. from the London Stock Exchange, Bill Shea, enterprise editor: Covers media, and with the Good to Great Award He declined to disclose the amount where it had gone public through a the former chairman and CEO of advertising and marketing, the business of sports, and transportation. (313) 446-1626 or at its annual expo for progress the of equity capital Stemgent raised, reverse merger in 2006. The tissue Grand Rapids-based Old Kent Finan- [email protected] company had made in growing its but according to CrunchBase.com, bank business continued to oper- cial Corp. before it was bought in Dustin Walsh: Covers the business of law, auto suppliers, manufacturing and steel. (313) 446- tissue bank business. a deal website, between 2008 and ate under the Asterand name and 2002 by Cincinnati-based Fifth Third 6042 or [email protected] HealthCare Ventures has raised August 2012, Stemgent raised $51.9 kept its lab space in TechTown and Bancorp. Sherri Welch, senior reporter: Covers nonprofits, services, retail and hospitality. (313) 446-1694 or $1.6 billion in nine funds since 1985. million in eight rounds of venture the 51 employees there. Tom Henderson: (313) 446-0337, [email protected] The other main investor in Stem- capital from three investors. TechTown supplies a wide vari- [email protected]. Twitter: LANSING BUREAU @tomhenderson2 Chris Gautz: Covers business issues at the Capitol gent was Cleveland-based Morgen- In 2012, Stemgent’s then-CEO, Ian ety of human tissue to researchers and utilities. (517) 403-4403 or [email protected] ADVERTISING SALES INQUIRIES (313) 446-6052; FAX (313) 393-0997 SALES MANAGER Tammy Rokowski SENIOR ACCOUNT EXECUTIVE: Matthew J. Tesla: Langan Car sales in state tightened by one word of law ADVERTISING SALES Christine Galasso, Jeff Lasser, Joe Miller, Sarah Stachowicz ■ From Page 1 CLASSIFIED SALES Lynne Calcaterras, (313) 446- 6086 On Sept. 18, the state House of He said Tesla has been working DIGITAL MARKETING MANAGER Jennifer Chinn Representatives passed House Bill A couple look in good faith with government AUDIENCE DEVELOPMENT DIRECTOR Eric Cedo 5606, written to keep automakers inside a Model S agencies and lawmakers in Michi- EVENTS MANAGER Kacey Anderson from forcing dealers to charge dif- at one of Tesla’s gan to explore how the company SENIOR PRODUCER FOR DIGITAL/ONLINE PRODUCTS Pierrette Dagg ferent documentation fees to dif- two company could market, sell and service ve- stores in New SENIOR ART DIRECTOR Sylvia Kolaski ferent customers. hicles in the state. SALES SUPPORT Suzanne Janik, YahNica Crawford Jersey. That But after lawmakers learned of PRODUCTION MANAGER Wendy Kobylarz state blocked By adding the amendment at the PRODUCTION SUPERVISOR Andrew Spanos the Massachusetts ruling, the word the company’s last minute, O’Connell said, deal- “its” was removed Oct. 1 on the Sen- plan to sell ers are acting against Tesla’s “sin- CUSTOMER SERVICE ate floor from a section stating that directly to cere efforts” to do business. MAIN NUMBER: Call (877) 824-9374 a manufacturer shall not “sell any consumers and “The dealers saw an opportunity or [email protected] new motor vehicle directly to a re- not through to sneak in changes that no one was SUBSCRIPTIONS $59 one year, $98 two years. tail customer other than through its franchised Out of state, $79 one year, $138 for two years. franchised dealers.” Both houses dealerships. paying attention to and tighten up Outside U.S.A., add $48 per year to out-of-state BLOOMBERG their case,” Crane said. rate for surface mail. Call (313) 446-0450 or passed the revised bill the next day. (877) 824-9374. The change was important be- everyone, meaning Tesla,” Crane that the bill passed the Senate by a Tesla’s only request, O’Connell SINGLE COPIES: (877) 824-9374 said. “This is just protectionism.” vote of 38-0. said, is that the issue be debated in REPRINTS: (212) 210-0750; cause the word “its” in the existing or Alicia Samuel at [email protected] language assumed the manufactur- Crane, who said he is not work- “Every member of the Senate public and “in the light of the day.” TO FIND A DATE A STORY WAS PUBLISHED: er has dealerships. In Massachu- ing for Tesla, wrote a letter to Gov. gets to see what they are voting on Terry Burns, executive vice (313) 446-0406 or e-mail [email protected] Rick Snyder last week urging him CRAIN’S DETROIT BUSINESS IS PUBLISHED BY setts, the court ruled that the Massa- before they press the button,” she president of the dealers associa- CRAIN COMMUNICATIONS INC. chusetts State Automobile Dealers to veto the bill. said. “I would find it concerning tion, said the change was not an at- CHAIRMAN Keith E. Crain Association did not have standing to Dave Murray, Snyder’s deputy that they say after the fact they tempt to single out Tesla. It just PRESIDENT Rance Crain TREASURER Mary Kay Crain bring a case against Tesla because press secretary, told Automotive voted “yes” on a bill they say they makes clear that all manufactur- Executive Vice President/Operations state law only allowed dealers to News that the governor is still eval- didn’t read or understand.” ers have to abide by state law. William A. Morrow Executive Vice President/Director of Strategic sue a manufacturer they have a uating the bill. Rep. Tom McMillin, R-Rochester Dealerships provide a great ser- Operations Chris Crain franchise relationship with. In oth- Hills, who was the only member in Executive Vice President/Director of Corporate vice to their communities, and to Operations KC Crain er words, only a Tesla dealer could the House or Senate to vote against consumers, Burns said. When car Vice President/Production & Manufacturing ‘Basic fairness issue’ Dave Kamis sue to stop Tesla, and Tesla does not the bill, said he opposed the bill’s companies go out of business, the have any dealerships. Chief Financial Officer No public attention was brought original intent and was not aware dealers still service those vehicles. Thomas Stevens By removing the “its,” any auto- to the changes, and the bill was of the effect on Tesla, but he’s op- When there are recalls, dealer- Chief Information Officer mobile manufacturer is banned passed nearly unanimously by both posed to that as well and believes Anthony DiPonio ships are where customers go to G.D. Crain Jr. Founder (1885-1973) Tesla should be able to sell directly from selling new cars directly to houses. have their vehicles inspected and Mrs. G.D. Crain Jr. Chairman (1911-1996) customers, regardless of whether it The spokespersons for the House to customers. EDITORIAL & BUSINESS OFFICES: fixed. 1155 Gratiot Ave., Detroit MI 48207-2732; has dealerships. and Senate Democrats said their “Consumers are expecting more (313) 446-6000 “We think the franchise system The sponsor of HB 5606, Rep. caucuses were unaware of the effect choice and more freedom,” Cable address: TWX 248-221-5122 AUTNEW DET is fantastic. We have a good law CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 Aric Nesbitt, R-Lawton, said the the added language could have on McMillin said. “If a company wants that has been in place for a long is published weekly, except for a special issue the bill simply adds clarity to Michigan Tesla. to try something different, we third week of October, and no issue the fourth time,” he said. “If another vehicle week of December by Crain Communications Inc. law surrounding the sale of vehi- Amber McCann, press secretary shouldn’t be standing in their way at 1155 Gratiot Ave., Detroit MI 48207-2732. manufacturer wants to come in Periodicals postage paid at Detroit, MI and cles and is not an attempt to single for Senate Majority Leader Randy as the government and prohibiting and sell in the state, they have to additional mailing offices. POSTMASTER: Send out any particular company. Richardville, R-Monroe, said Re- it. We should let the free market de- address changes to CRAIN’S DETROIT BUSINESS, follow the law in Michigan.” Circulation Department, P.O. Box 07925, Detroit, But Daniel Crane, a University of publican members were aware the cide.” MI 48207-9732. GST # 136760444. Printed in Michigan law professor who special- amendment was added to the bill, Diarmuid O’Connell, Tesla’s vice Vince Bond Jr. of Automotive U.S.A. Entire contents copyright 2014 by Crain izes in antitrust laws and believes but was not sure if each member president of business development, News contributed to this report. Communications Inc. All rights reserved. Reproduction or use of editorial content in any in direct distribution, said that ar- knew about the effect it could have said in an interview with Automo- Chris Gautz: (517) 403-4403, manner without permission is strictly prohibited. gument is disingenuous. on Tesla. tive News that there’s a “basic fair- [email protected]. Twitter: “They want a law that applies to But she reiterated several times ness issue here.” @chrisgautz 20141020-NEWS--0034-NAT-CCI-CD_-- 10/17/2014 5:15 PM Page 1

Page 34 CRAIN’S DETROIT BUSINESS October 20, 2014 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF OCT. 11-17

mittee and board of directors OMPANY NEWS ck, Highland Park, Inkster in Detroit during this time of Jenkins resigns C and River Rouge and six Parade float growing optimism about the OcuSciences Inc., an other cities by using $75 economic recovery in the re- Ann Arbor medical device million in federal funding, gion.” council seat to company commercializing AP reported. In the past year, KPMG a fast and noninvasive test The University of Michi- in tune with has hired 100 people in join THAW as CEO for early detection of reti- gan will open the $46 mil- Michigan, bringing its local nal disease, will be honored lion Center of Excellence in employee tally to 350, most aunteel Jenkins re- as innovator of the year Nano Mechanical Science of whom work in Detroit. signed from the De- this week at Medical Main and Engineering, AP report- Motown legacy S troit City Council on Street’s annual Inno-ven- ed. Separately, UM regents tion conference. approved plans for a bat- Charity auction for Care Friday to become CEO of etroit’s Motown her- Meryl Davis and Charlie White Detroit-based nonprofit The Highland Park-based tery fabrication laboratory itage will be cele- will be grand marshals. General Motors Co. and Heat and Dialog Direct completed a at the school’s Energy Insti- D brated during this Taubman Centers Inc. teamed Warmth deal to acquire Clinton tute and renovations at the year’s Thanksgiving parade up this year to surpass pre- Fund. Jenk- Township health care call Institute of Continuing Legal in the city. KPMG chair tours Detroit vious fundraising efforts ins will offi- center firm Allegra Direct Education, plus the naming A Motown Museum float Thirty-five members of for Pontiac-based Care cially step Communications Inc. Terms of a new building in the commissioned by Art Van KPMG LLP’s board of direc- House of Oakland County. down from were not disclosed; Dialog Stephen M. Ross School of Furniture was unveiled last tors and management com- The two companies are the council Direct will maintain the Al- Business after Jeff T. Blau, week at The Parade Co.’s an- mittee converged on Detroit lead sponsors of 2014 Care Nov. 7 and legra name and location. an alumnus who donated $5 nual Parade Preview Party, last week. Night Charity Ball that aids take the Birmingham-based million for an expansion. attended by more than 1,200 The group, which includ- the shelter for abused and reins at venture capital firm IncWell The $6.3 million Troy Jenkins people. It’s the first float re- ed the tax and audit giant’s neglected children. THAW LLC has begun making in- Multi-Modal Transit Center veal of the parade season. U.S. and global chairman, Lisa Payne, vice chair and Nov. 10. She will replace Su- vestments out of its second officially opened after The 60-foot-long float is a John Veihmeyer, stayed at the CFO for Bloomfield Hills- san Sherer, who stepped fund, which raised almost years of debate, AP report- replica of the Motown Muse- Westin Book Cadillac and based Taubman, and Alicia down from THAW Sept. 1. $10 million, founder Tom La- ed. The city initially um house with the “Hitsville made the rounds at down- Boler-Davis, senior vice pres- Sorda said. IncWell, planned for the project in U.S.A.” façade, 26 spinning town hot spot restaurants, ident of global quality and launched in May 2013, had 2000 and approved a small- Motown Museum artist including The Whitney, The customer experience at GM, ON THE MOVE a first fund of less than $3 er version of the center in are co-chairs for the event. million to invest in very 2012. records and LED lights sur- Rattlesnake Club and Wright & Carol O’Cleireacain was Payne said thanks to the early-stage technology com- Home sale prices again rounding the house. The Co. named Detroit’s deputy auction of a 2014 Chevrolet panies. increased year-over-year float will play toe-tapping Veihmeyer spoke to the mayor for economic policy, Corvette Stingray, donated Precision French last month in metro De- tunes along the parade Detroit Economic Club and planning and strategy. by GM, the event is expect- molder AdduXi Group is troit, jumping an average route, according to a state- held an evening of “C-level O’Cleireacain, who had ed to surpass its fundrais- opening its first factory 14.6 percent to $149,000, ment from The Parade Co. peer exchanges,” which been a New York City-based ing goal of $350,000 to outside of its home coun- from $130,000 in September With the theme of “Walk- brought together local busi- nonresident senior fellow at $400,000. try, in Rochester Hills, 2013, according to Farming- ing on Sunshine,” the 88th ness leaders and KMPG-ers the Brookings Institute, a The event will feature a Plastics News reported. The ton Hills-based Realcomp II America’s Thanksgiving to talk about the opportuni- Washington, D.C., think cocktail hour, dinner and company plans to create 40 Ltd. Home sales slowed as Parade presented by Art ties and challenges of doing tank, will be responsible for entertainment, including a jobs at the plant over the prices rose, falling 2 per- Van Furniture will begin at business in Detroit. identifying outside sources jazz trio from Detroit Country next two years. cent to 4,729 from 4,830 in 8:50 a.m. Nov. 27 at the cor- Said Heather Paquette, of funding for Detroit so it Day and a performance by Ford Motor Co., on a hir- the region. ner of Woodward Avenue managing partner of can become financially sta- vocalist Thornetta Davis, who ing spree in advance of next Total revenue at De- and Kirby Street. Metro De- KPMG’s Detroit office: “We ble outside of bankruptcy. is a Detroit Music Hall of Fame year’s labor contract negoti- troit’s three casinos was troiters and Olympic ice were excited to have German chemical con- inductee and former back- ations, said it’s adding 850 down 3 percent year-to-date dancing gold medalists KPMG’s management com- glomerate BASF SE promot- up singer for Kid Rock and workers at its Dearborn through September com- ed Christopher Toomey to lead Bob Seger. manufacturing site to help pared to 2013’s first nine its North American coatings The event is 6 p.m. Oct. 25 make the new aluminum- months, said the Michigan division in Southfield. at the General Motors Her- bodied F-150 pickup, Gaming Control Board. Toomey, senior vice presi- itage Center in Sterling Bloomberg reported. The Detroit-based Col- dent of regional procure- Heights. For details, go to lege for Creative Studies is ment for BASF in North carehouse.org. working with watch and bi- America, becomes senior OTHER NEWS cycle maker Shinola/Detroit vice president of North LLC on plans for a bachelor ITS IECES American coatings on Nov. The Wayne County B & P of fine arts program in 1, replacing Juan Carlos Or- Board of Commissioners end- Brian Balasia, co- fashion accessories design donez, who will head BASF’s ed talk of relocating the founder and CEO of Detroit- to start next year, AP re- performance materials divi- Wayne County Jail in down- based Digerati Inc., was se- ported. sion in Wyandotte. town Detroit to the former lected this month to serve Maria Contreras-Sweet, Former Fiat U.S. brand Mound Road Correctional on the National Advisory Coun- head of the U.S. Small Busi- chief Laura Soave was named Facility, voting for a resolu- cil on Innovation and Entrepre- ness Administration, came to COURTESY OF THE PARADE CO. senior vice president, chief tion to take two jail reloca- neurship for the U.S. Com- Detroit to visit small busi- A 60-foot-long replica of the Motown Museum is part of a new marketing and communica- tion proposals off the table merce Department’s Economic nesses owned by women float revealed by The Parade Co. for next Thanksgiving. tions officer of Southfield- and consider only complet- Development Administration. and highlight their based Federal-Mogul Motor- ing the half-built Gratiot achievements, AP reported. parts, Automotive News Avenue jail development or Longtime Detroiter El- reported. Since leaving Fiat renovate existing jail facili- more Leonard’s vast collec- in 2011 after the flawed ties. Rock Ventures LLC has tion of handwritten note- launch of the Fiat 500, Soave, offered to pay $50 million books, typed manuscripts 42, has consulted on automo- for the Gratiot site and oth- and screenplays will reside tive projects for manufactur- er county buildings. ers and investors. John Bravata, former at the University of South BEST FROM THE BLOGS Carolina, AP reported. Former WJBK-TV2 an- chairman of Southfield- READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS chor and reporter Robin based BBC Equities LLC who Businesses in Michi- Schwartz was named to the is in prison for running a gan are continuing to see An epidemic: Supplier stocks L.A. team could be Lions’ gain new position of public rela- Ponzi scheme out of his in- savings in their workers’ tions director by Detroit- vestment firm from 2006 to compensation rates, with a The stock market is With an uptick in based Bedrock Real Estate 2009, wants to appeal a re- 27.7 percent drop since 2011 a“ funny thing. Fears of a chatter“ that the Services LLC. lated $8.2 million civil judg- in the pure premium rate global economic National Football Tower International Inc., ment in favor of the U.S. Se- they pay to fund the work- slowdown, coupled with League is serious about the Livonia-based automo- curities and Exchange ers’ compensation system. widespread panic over putting a team in Los tive metal stampings and Commission, without costs. President Barack Oba- Ebola, continue volatility Angeles, let us take a ma will visit Michigan on in the markets. brief look at the assemblies supplier, elect- Bravata asked a federal ap- enormous inflation in ed Alison Davis-Blake, dean peals court to have indigent behalf of Democratic candi- ” franchise fees. of the University of Michi- status to appeal the civil dates Mark Schauer for gov- gan’s Stephen M. Ross judgment. ernor and U.S. Rep. Gary Pe- ” School of Business, to its The Michigan State ters for U.S. Senate in a Dustin Walsh’s “Shifting Gears” blog on auto suppliers, Bill Shea’s “Shea’s Stadium” blog on the business board of directors. She re- Housing Development Author- major campaign push as the business of law, and Livingston and Washtenaw of sports can be found places Jonathan Gallen, who ity plans to fight blight in the midterm elections ap- counties is at www.crainsdetroit.com/walsh at www.crainsdetroit.com/sheasstadium resigned from the board. Detroit, Ecorse, Hamtram- proach, AP reported. DBpageAD_DBpageAD.qxd 10/7/2014 9:07 AM Page 1

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