Snyder Eyes Future As His Profile Builds

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Readers first for 30 Years MICHIGAN EDITION This monthly issue reaches 5,000 additional readers outside of metro Detroit Could rail be the newway north? CRAIN’S Page 15 DETROIT BUSINESS May 11-17,2015

HORSE RACING: [ISTOCK PHOTO] IS IT ON THE RIGHT TRACK? PAGE 3

The Bank of America building in Troy is expected to sell for as much as $150 per square foot. Snyder eyes future as his

[COSTAR GROUP] profile builds Banking on a big sale Despite Prop 1 fail, guv pitches ‘comeback story’ By Lindsay VanHulle raising his profile. BOA building could score high, brokers say, but will market comply? Crain’s Detroit Business/Bridge Magazine But why is the term-limited Re- LANSING — Gov. Rick Snyder publican governor traveling the By Kirk Pinho ing’s high occupancy rate and rental figures has put an end to rumors that he country to promote Michigan’s eco- [email protected] are positives, going prices aren’t quite in the plans to run for president next year. nomic recovery — and Detroit’s The Bank of America building in Troy is on upper end of that range. Even prominent, But that doesn’t mean he’s not emergence from bankruptcy — if he the market — and when it sells, it is expected Class A office buildings in the region aren’t thinking about his political future. doesn’t eventually aspire to a nation- to be one of the biggest suburban office supporting a $150-per-square-foot-or-high- A packed national travel schedule, al post? building sales in recent memory. er sale price, he said. which is positioned as a way to tout Snyder offered a brief statement Depending on whom you ask, the For example, in downtown Detroit, Dan Michigan’s “comeback story,” is Thursday saying he is promoting 450,000-square-foot building directly east of Gilbert purchased the 1 million-square-foot viewed by political watchers Michigan’s economic success The Somerset Collection on West Big Beaver Kevin Kernen: Not One Detroit Center building for $100 million as Snyder’s effort to gain story to a national audience in Road could sell for between $100 and $150 a sold on office ($100 per square foot) and, along with Merid- name recognition on a na- square foot or $45 million to $67.5 million. building prices ian Health, the 1.1 million-square-foot Com- tional stage. From California See SNYDER, Page 27 Some brokers predict it could be even more. puware Corp. headquarters building on in late April to a New York visit But Kevin Kernen, managing director of valuation Campus Martius for $142 million ($129 per square late last week, Snyder is seem- Rick Snyder: Talking about and financial options for Southfield-based Stout Ri- ingly making traction in at least Michigan’s future, sius Ross Inc., said that although the landmark build- See BANK, Page 26 not his Sleep industry wakes to customer demand

By Dustin Walsh down on the job; even mattress and “Sleep is more than just laying on ed revenue of just under $100 mil- [email protected] sleep system makers, such as Bloom- a flat surface; it’s a lifestyle compo- lion in 2014 and expects to surpass Sensors, biomarkers and algo- field Hills-based Reverie, are creating nent,” said Martin Rawls-Meehan, that this year. Rawls-Meehan relo- rithms are becoming part of every- their own customizable, high-tech founder and CEO of Reverie. “People cated the company from Massachu- day health technology — from the devices to keep up with other sectors. are demanding customization and setts to metro Detroit in late 2011. [REVERIE] use of step trackers to connected Reverie, a dba of Ascion LLC, is in- technology from all of their products It employs 150 employees, 40 of Sleep is a component of lifestyle, says diet plans built into smartphones. creasing its research and develop- and, in the bedding category, allows them in Bloomfield Hills. Reverie CEO Martin Rawls-Meehan. The industry of sleep isn’t lying ment spending to carve out its slice us to take the sector to the next The company’s current offerings of the increasingly technology- level.” include an adjustable bed with © Entire contents copyright 2015 heavy but highly competitive $14.2 Reverie, which has manufactured by Crain Communications Inc. All rights reserved. billion U.S. mattress industry. adjustable beds since 2003, generat- See REVERIE, Page 25 crainsdetroit.com Vol. 31 No 19 $2 a copy. $59 a year.

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2 CRAIN’S DETROIT BUSINESS // May 11, 2015

our evolution and builds on our be an all-write-in competition. MICHIGAN strong platform. We are committed Ⅲ Hal Fitch, who, as director of INSIDE to making this combination a reality.” the Michigan Department of Environ- THIS ISSUE Perrigo Chairman and CEO Joe mental Quality’s Office of Oil, Gas, and BANKRUPTCIES ...... 7 BUSINESS DIARY ...... 22 Papa said that while there ultimately Minerals oversees regulation of oil CALENDAR ...... 24 “is a number at some point” where and gas wells, said the May 2 earth- CLASSIFIED ADS ...... 25 Perrigo directors would have to con- quake in Kalamazoo County is unre- CRAIN’S LIST ...... 21 sider selling, this spring’s $4.5 billion lated to fracking or other drilling in KEITH CRAIN ...... 8 BRIEFS acquisition of a Belgian company the area, MLive.com reported. MARY KRAMER ...... 15 positioned it with a greater ability to Ⅲ The Michigan Court of Appeals OPINION ...... 8 Tesla to buy Grand Rapids cilities after the $5 billion deal it grow and remain independent. has ordered the Michigan Public Ser- OTHER VOICES ...... 9 auto supplier Riviera Tool struck last month to sell its chlorine A deal with Perrigo, which is vice Commission to hold another PEOPLE ...... 23 business to Olin Corp., Bloomberg domiciled in Ireland but retains hearing concerning the costs RUMBLINGS ...... 30 Tesla Motors is acquiring one of reported. headquarters in Allegan, would cre- charged to customers who don’t STAGE TWO STRATEGIES ...... 14 WEEK ON THE WEB ...... 30 its suppliers of stamped parts, Dow will eliminate 1,500 to 1,750 ate a corporation with 2014 pro- want so-called smart meters from Grand Rapids-based Riviera Tool, jobs. The company, which had 53,000 forma revenue of $15.3 billion and Jackson-based Consumers Energy. Automotive News reported. A Tesla employees at the end of last year, has 70 manufacturing sites worldwide. The meters typically allow utilities to COMPANY INDEX: spokesperson declined to provide been under pressure from the hedge monitor electricity without sending SEE PAGE 29 the price or terms of the acquisition. fund Third Point LLC to split its spe- Visteon to shut Holland an employee to each address. Tesla eventually will rename the cialty chemical and petrochemical unit,move workers to HQ Ⅲ The Michigan State University operation Tesla Tool & Die. It is ex- businesses. The company also an- College of Engineering received a $5 in his advertising campaigns, start- pected to retain Riviera’s 100 work- nounced last fall a three-year, $1 bil- Visteon Corp. will close its Holland million commitment to create the ed his career in car sales at Roy ers while continuing to add jobs. lion “productivity drive” to cut costs operations by the end of the year, Gary A. and Patricia A. Coffman En- O’Brien Ford in St. Clair Shores in the Tesla CEO Elon Musk said at the and push earnings higher. MLive.com reported. The auto sup- dowed Scholarship/Fellowship pro- 1960s, his obituary said. Automotive News World Congress in plier said it hopes to retain about 175 gram. Gary Coffman graduated Ⅲ Southfield-based 123Net Inc. ac- January that the automaker would Mylan to make acquisition of the 240 workers affected by offer- from MSU in 1974 and spent 31 quired T2 Communications LLC in be interested in manufacturing in pitch to Perrigo shareholders ing them jobs in Van Buren Town- years with Dow Corning Corp. Holland, MiBiz reported. The deal Michigan. “It’s not out of the ques- ship, where Visteon is headquartered. Ⅲ Jack Keller, founder of Keller comes as 123Net, a telecommunica- tion,” Musk said. “Maybe Michigan Mylan N.V. remains committed to Visteon acquired its Holland tech- Ford in Grand Rapids, died April 30 tions and Internet service provider, shouldn’t stop us from selling cars acquiring Perrigo Co. plc and plans nical center from Johnson Controls at age 88, MLive.com reported. looked to expand its customer base here. That would be a nice gesture.” to present its case directly to Perrigo Inc. in July 2014 for $264 million. Keller, known as a “great, great guy” and capabilities in West Michigan. In October, Gov. Rick Snyder shareholders, setting up a potential signed a bill that bars Tesla from sell- shareholder fight for control of the MICH-CELLANEOUS Corrections ing its vehicles directly to consumers. company, MiBiz reported. Ⅲ The city of Flint said only one Mylan has financing in place for mayoral candidate, 1st Ward Council- Ⅲ An article on Page 11 of the May 4 edition incorrectly stated the an- Dow to cut up to 1,750 jobs the acquisition, has initiated antitrust man Eric Mays, filed petitions before nual investment in Macomb County by St. John Macomb-Oakland Hospi- after unloading chlorine unit clearance and “is confident that we the April 21 deadline — but he didn’t tal as $100 million. The correct value is $10 million. can close the deal by the end of the have enough valid signatures to qual- Ⅲ A story on Page 17 of the April 20 issue listed the William Davidson Midland-based Dow Chemical Co. year,” CEO Heather Bresch said. “The ify for a spot on the ballot, MLive.com Foundation among local foundations that pay board members. It does plans to cut about 3 percent of its combination with Perrigo is simply reported. City officials say that poten- not. Jonathan Aaron is paid for serving as president, the foundation said. global workforce and close some fa- the next important, strategic step in tially means the mayoral election will

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CRAIN’S DETROIT BUSINESS // May 11, 2015 3

BY THE NUMBERS: THE MICHIGAN ECONOMY Lawyer pay: Any objections? Horse racing

By Dustin Walsh [email protected] ew career fields bear the brunt of as many jokes as law professionals. But are lawyers in FMichigan highly paid? looks to track It’s a subjective question, but a glimpse into the median pay and billing rates, sorted by job category and by gender, of Michigan attorneys, yields some surprising results. Among them: Probate attorneys, the field of law following an individual’s death, draw the largest incomes, beating out categories intuitively linked to high pay rates like medical malpractice and employment law. The gender gap in pay also remains very wide among Michigan lawyers, both in private down profits sector and nonprivate posts. The State Bar of Michigan releases the report every few years to provide a barometer on compensation trends. So far, it has been a rough ride with long odds

By Bill Shea [email protected] Michigan’s horse racing industry is at odds with itself as it scrambles to find new revenue to survive. The state’s two remaining tracks — Hazel Park Raceway and Northville Downs — and the horse owner groups all agree something must be done to stave off extinc- tion. But what that ultimate solution should look like remains unde- termined. Until then, the industry is taking another shot at getting legislative approval for online race wagering, something that has failed to get Gov. [ANTHONY BARCHOCK] Rick Snyder’s signature in the past. Northville Downs is still running races and Horse racing and its revenue dis- still making a slight profit.But since 1998, tribution system is complex, and seven Michigan race courses,unable to find the shifting alliances within the in- newrevenue,have closed. dustry are “Game of Thrones”-style multifarious. But the origins of the must pay to race, a measure aimed problems are simple: People don’t at aiding Hazel Park’s decade-plus bet on horses much anymore. financial losses and sustaining The rise of online wagering in Northville Downs’ slight profit. other states, the expansion of The horsemen’s groups say the Michigan’s lottery and, especially, entry fees unfairly skew revenue the creation of the state’s commer- splits in favor of the tracks. Legal cial and tribal casino industry dra- challenges to the entry fees failed. matically sapped the dollars wa- Almost all track revenue comes gered on horses in Michigan. from simulcast racing, with live For years, the state’s horse racing waging accounting for a few per- industry has been stymied in its ef- centage points of income. The forts to get legislative approval to tracks and horsemen split the add slot machines or other forms of simulcast income, and the horse- gambling such as online wagering men split their share among the via smartphones, computers or various types of horses and races — slotlike wagering game terminals — pitting horse owners against each measures blocked, in part, by the other. casino industry. The tracks say they need revenue Failure to find new money has wherever they can find it, and the forced seven Michigan race courses horse owners face increasingly out of business since 1998. smaller race purses that often can- Complicating matters is dis- not cover the costly expense of agreement among the horse racing maintaining horses. industry’s major players about how “It’s a very frustrating situation,” current and future revenue should said Phil Stommen, executive direc- be split. tor of the Okemos-based Michigan Additionally, there is frustration Harness Horsemen’s Association. over current financial arrange- “There’s no real incentive to come [PIERRETTE DAGG/CRAIN’S DETROIT BUSINESS] ments. The tracks a few years ago added entry fees that horse owners See HORSES, Page 28

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4 CRAIN’S DETROIT BUSINESS // May 11, 2015 Crain’s May 13, 1985, issue included a LOOKING BACK report on how women locally were becoming increasingly attracted to entrepreneurship. That’s still the case, if not in big numbers. More at crainsdetroit.com/30 ‘Beginning of a wave’: More women become own bosses

By Amy Haimerl [email protected] We’ve come a short way, baby! In 1985, Crain’s reported that more women were attracted to self- employment, with newly minted female entrepreneurs outpacing men as total self-employment in the U.S. reached 8.9 percent. In total, 30 percent of all entrepreneurs were women. “The women of the ’70s untied their apron strings to enter the work- GET IN ON THE CONVERSATION place, but the women of the ’80s are Amy covers the city of Detroit and entrepreneurship cutting their corporate attach- Keep up with Amy at crainsdetroit.com/blogs ments,” wrote Launzy Sims in the May 13 issue. AMY HAIMERL TWEET @HAIMERLAD Fast forward 30 years, and women now account for 35.7 percent of all entrepreneurs — at least as of 2012, the most recent data available from the U.S. Census. In total, 10.4 percent of Americans are their own boss. In Michigan, 38.8 percent of those [AARON ECKELS] self-employed are women, accord- Carla Walker-Miller didn’t always know the meaning of“entrepreneur,”but she went ing to the U.S. Chamber of Commerce out on her own in 2000 by starting Walker-Miller Energy Services and facing chal- Center for Women in Business. That lenges before finding success. places the mitten state 22nd in the union, behind such powerhouses as Miller said. “That was nirvana for us. trust to gain an entrance. It can be Oregon (No. 1 with 45.4 percent), “Now entrepreneurship is con- difficult for women to even figure out New Mexico (43.3 percent) and sidered much less risky. In our gen- what the real opportunities are.” Rhode Island (40.5 percent). eration of independent businesses, But networking has really helped Only about 14 percent of U.S. we achieved a level of training in Walker-Miller grow in recent years. Small Business Administration loans corporate America that was almost She particularly credits TechTown in Michigan in the past five years a template for going out on your Detroit’s accelerator program as well have gone to women. own. You develop expertise.” as Inforum, a leading networking or- But there is a bright light: Between She did go out on her own in ganization for women; SBA’s leader- 1997 and 2011, the number of 2000, starting Walker-Miller Energy ship programs; and Goldman Sachs woman-owned firms in the U.S. in- Services LLC after 13 years in corpo- 10,000 Small Businesses. “The quality creased by 50 percent — a rate 1.5 rate America. It wasn’t an easy deci- of networking is ridiculously better times the nation- sion, but as she looked around, she than in the ’80s,” she said. al average — for a accepted that no career trajectory Today, Walker-Miller employs 43, total of 8.1 mil- existed for her. expects revenue of $7 million this lion. “There were no African-American year and was named the SBA’s Entre- “I’ve seen a real women and maybe two African- preneur of the Year for Michigan last resurgence in in- American men in upper manage- week. terest in becom- ment,” she said. “I had no chance of Targeting growth ing your own advancing. I could not see a path.” boss,” said Car- And it was the same for all of her Nationally, most women entrepre- Carolyn Cassin: olyn Cassin, pres- girlfriends. There was no point try- neurs don’t look like Walker-Miller. Watching women ident and CEO of ing to join one of their firms, even They don’t have any employees. rise in business the Michigan those in the energy industry that Ninety percent of woman business YOU CAN TELL FROM OUR BUILDING Women’s Founda- had openings for a black female en- owners employ no one but them- WE MEAN BUSINESS. tion. “I think we’re on the beginning gineer, because she felt she’d face selves, and just 2 percent have more of a wave.” the same ceiling. than 10 employees, according to the In the ensuing 15 years, Walker- U.S. Chamber report. By compari- More than a word The GVSU Seidman College of Business full- or Miller has grown her Detroit-based son, 82 percent of male entrepre- When Carla Walker-Miller read the business, seen successes and strug- neurs have employees, and 4 percent part-time M.B.A. program will get you to the top. word “entrepreneur” in the 1980s, gles. She had to pivot during the re- have more than 10 employees. West Michigan’s premier business school now has she thought it described good-look- cession, nearly losing the business That’s a statistic of huge concern an equally premier building, enhancing downtown ing men who didn’t have jobs. in 2009 as clients dried up. But she to Walker-Miller. She wants to see Grand Rapids’ growing skyline and economic climate. She would read glowing portraits refocused as an energy efficiency more women focused on growth of men who seemed not to have to consultant, rather than a product businesses, on supporting them- work and never imagined that she distributor, and rebuilt. selves and their communities. would become an entrepreneur her- There were struggles along the “We face an incredibly steep in- self. She got her degree in engineer- way, as she tried to find the doors to cline trying to do two things; one is ing at Tennessee State University, knock on. just to be successful, and the other near her home of Nashville, and then “The old boys club,” she said, “is is to create wealth,” she said. went to work in corporate America. still alive and well. People do busi- “Of the female colleagues I have “Black women of my age, we were ness with the people they know and who own their own businesses, raised to get a degree and then get a trust. It makes it much more difficult good job with a corporation,” Walker- for people you don’t know or like or See WAVE, Page 6 DBpageAD_DBpageAD.qxd 5/5/2015 3:43 PM Page 1

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6 CRAIN’S DETROIT BUSINESS // May 11, 2015 WAVE,from Page 4: More women take corporate plunge to become their own biz bosses

most of them are single-person enough women entrepreneurs to in- In 2012, the nonprofit began pro- said Ray Waters, president of the De- source of entrepreneurship educa- businesses. Many of them make a vest in,” she said. “But we have 20 viding financing to these women troit Development Fund, which part- tion in Detroit. In the past three great living for themselves, but they women in our pipeline clamoring for and has made 32 investments ners with the Women’s Foundation years, it has graduated 535 students are more lifestyle businesses; they Belle investment. There are lots of worth $557,287. Last year, it helped on the microloan program. from its eight-week courses. Seven- are not companies with a large women in technology that we didn’t form the Detroit Microloan Collabo- In recent years, the DDF also has ty percent have been women. number of employees. see in the very beginnings.” rative, which provides technical as- been the lender of only resort for “Our typical participant is an “There is a glut of woman-owned Still, Cassin extols the importance sistance through Lifeline Business many Detroit retail businesses and African-American woman,” Execu- businesses who are kind of midrange. of small so-called lifestyle business- Consulting Services and loans of restaurateurs, offering startup capi- tive Director April Boyle said. They support themselves, but they es, such as bakeries and seamstress- $5,000 to $100,000. tal as well as construction loans. In Many of the women Boyle works aren’t on a high-growth trajectory.” es, because they bring entrepre- The fund is not exclusive to the past seven years, Waters said, 43 with are attracted to entrepreneur- That is something Cassin is also neurship to a wide spectrum of women, but of the 14 loans that have percent of its loans were to women. ship because they imagine a flexible acutely aware of. Not only does she women. In fact, more than 600 closed in the first seven months, 13 “Access to technical assistance schedule that allows them to be head the Michigan Women’s Founda- women used the Michigan Women’s were to women. One was an archi- really makes a difference,” he said. caregivers to children and aging tion, but she also is the co-founder of Foundation entrepreneurship sup- tect, another is opening an import- “Through Lifeline, we can provide parents while still earning a living. The Belle Michigan Fund LP, an early port programs last year. export firm, while another’s dream is them with a lot of startup informa- She sees others who struggle to stage investment fund. “Lifestyle businesses are the easi- opening a hot dog stand. tion as well as get them ready for fi- imagine themselves as entrepre- “When we started Belle Michigan, est point of entry for women,” she “She works two jobs currently and nancing and loans.” neurs because they lack confidence people said there would not be said. wants to own her own business,” The Build Institute is another and devalue their product. But after eight weeks of intensive training, they come out with a business plan and understanding of what it takes to be a business owner. Boyle said about 30 percent are ready to start, 30 percent want to think about it April Boyle: Building for a while, and bosses through time 30 percent realize and training entrepreneurship is not for them. “Women are willing to take risks now,” Cassin said. “Twenty or 30 Vision and impact. years ago, it was very risky to go out on your own. Now it doesn’t seem That’s something so risky. We have tools we didn’t to celebrate. have 30 years ago.” Going to school The EY Entrepreneur Of The Year® Mark Rieth | Atwater Brewery The numbers of self-employed Mark Sellers | BarFly Ventures Ei[hi_an and Northoest Ohio 9oard Õ nalists women, particularly in high-tech and Leon C. Richardson | ChemicoMays, LLC saw a different future and made it happen. high-growth businesses, may look Mark St. Peter | Computing Source very different in another 30 years if Join these game changers to celebrate their Aaron Morse | Dark Horse Brewing Company the anecdotal signs coming from the achievements at this year’s awards gala. Steven B. Phillips | Detroit Technologies, Inc. universities are any indication. Inter- Jason Grobbel | E.W. Grobbel Sons, Inc. est in entrepreneurship programs is June 11, 2015 | Cobo Center Grand Ballroom | Daniel S. Carmody | Eastern Market Corporation at all-time high as schools scramble to Detroit, MI Al Siblani | EnvisionTEC, Inc. incorporate the lessons of the small- Mark Groulx | Falcon Asphalt Repair Equipment business world into all disciplines. For tickets, contact Janelle Jones at Hannan Lis | Firebolt Group Inc. “The skill set is broader than just [email protected]. Stacey Coopes | FordDirect starting a business, said Oscar Ybarra, Bridgett Tubbs-Carlon | Gilden Woods Early Care Inno- and Preschool the newly appointed director of vate Blue Chris McCuiston | GoldÕ sh Swim School , which oversees all entrepre- Franchising, LLC neurship programs at the University of Lorna G. Utley | Goodwill Industries of Greater Detroit Michigan. “Being creative, thinking Lon Offenbacher | Inteva Products about other people and what their Nationally sponsored by Jason Luo | Key Safety Systems (KSS) needs and problems might be and Jason Teshuba | Mango Languages how to help, those are skills you need John Kello | MatchRX even if you go work for somebody Courtney Morales Hofmann | MCM StafÕ ng else. There are just broader skills that Roger Betten | MFP Automation Engineering people will be interested in.” Regional sponsors Robert Hake | MyLocker.com, LLC UM just launched a minor in en- Laurent Bresson | Nexteer Automotive trepreneurship to complement the Robert H. Kurnick, Jr. | Penske Corporation/Penske existing master’s degree in the sub- Automotive Group, Inc. ject, and 44 percent of students en- Michael Kulka | PM Environmental, Inc. rolled are women. Meanwhile, Craig Erlich | pulse220 more than 60 percent of students Michael Jennings | Secure-24, LLC involved in the School of Public Royce Neubauer | Service First Logistics Inc. Health’s Innovation and Social En- Tim Smith | Skidmore Studio trepreneurship program last year Rick DeVos | Start Garden were women, as were the graduate David T. Provost | Talmer Bancorp, Inc. students in the School of Informa- Veronika Scott | The Empowerment Plan tion’s entrepreneurship program. Kent Sharkey | Ulliance, Inc. “It’s very different than it was 30 Aaron J. Zeigler | Zeigler Auto Group years ago,” Cassin said. “The baby boomers have brought up a different generation of young women that have expectations that my generation didn’t have. There’s no stopping this

© 2015 Ernst & Young LLP. All Rights Reserved. All Rights Reserved. LLP. & Young © 2015 Ernst movement for women being active and engaged in entrepreneurship.” Ⅲ Amy Haimerl: (313) 446-0402 Twitter: @haimeralad 20150511-NEWS--0007-NAT-CCI-CD_-- 5/8/2015 4:13 PM Page 1

CRAIN’S DETROIT BUSINESS // May 11, 2015 7

Bills would LENDING | TREASURY MANAGEMENT | BANKING | BUSINESS SERVICES put limits on biz tax credits

LANSING — The tax credit program that unexpectedly brought on $9.4 billion in potential liability for Michigan would be limited under Best bank...3 years running. two bills approved nearly unani- mously Thursday by the Republican- led House. Business groups including the Best-in-class products. Michigan Manufacturers Association and Detroit Regional Chamber had opposed the measures, which would prevent the Michigan Economic Best of all… Growth Authority from entering into new agreements allowing tax credits for businesses. It also would be pro- local decision making. hibited from changing existing agreements unless the change results in a reduction of the amount of the credit. In February, officials said Michi- gan is potentially on the hook for $9.4 billion in business tax credits Being a Michigan-based bank since 1917 means our expertise and loan decisions come straight out of our local office, not out over the next two decades. Gov. Rick of state. With best-in-class commercial products like Positive Pay and Business Express Deposit to optimize cash flow and SBA Snyder and the Republican-led Leg- loans to finance growth, you’re always banking big…even when you’re banking local. islature were forced to cut the budget midyear as a result. Rep. Lee Chatfield, R-Levering, and one of the bill sponsors, said in a speech on the House floor that the Make an appointment with a Business Specialist and learn why big doesn’t always mean best. bills are simply about limiting liabil- www.thefsb.com/business | 866-372-1275 ity for the state and not about harming existing deals. “I consider it important for the state of Michigan to prove to the rest of the country that we are a good state for business,” he said. That remark was echoed by Rep. Gary Glenn, R-Midland, sponsor of the other bill in the package. The statements from the bill sponsors appeared directed at con- cerns from business groups that said the legislation would hurt the Business Law Experience state’s ability to attract jobs. Mike Johnston, vice president of ® government affairs for the Manu- In Your Corner. facturers Association, made a statement to that effect while speaking against the bills in a House commit- Ŷ Business, contracts, transactions, employment and tee hearing last month. private equity, with a focus on technology, internet The bills would announce to the and software companies. world that Michigan is “unilaterally disarming” when it comes to at- Ŷ Named in 2014 and 2015 to Detroit Techweek tracting jobs, he said. 100; Detroit area leaders signifi cantly impacting Tax Policy Committee Chair Jeff business and technology. Farrington took issue with that statement: “To make statements like that is inflammatory,” he said, adding that comments like Johnston’s are “exactly what other states want to hear.” The Michigan Manufacturers As- sociation represents businesses including the Detroit automakers. — Associated Press

BANKRUPTCIES

The following business filed for protection in U.S. Bankruptcy Court in Detroit May 1-8. Under Chapter 11, a company files for reorganiza- tion. Chapter 7 involves total liquidation. First Tier Ranking Mansion Nightclub LLC, 44444 in Corporate Law and Commercial Litigation Mound Road, Suite 400, Sterling Heights, voluntary Chapter 7. As- Contact Matt Bower at [email protected] Ŷ Metro Detroit Ŷ Grand Rapids Ŷ Kalamazoo Ŷ Grand Haven Ŷ Lansing sets: $70,000; liabilities: $515,000. — Natalie Broda 20150511-NEWS--0008-NAT-CCI-CD_-- 5/8/2015 4:28 PM Page 1

8 CRAIN’S DETROIT BUSINESS // May 11, 2015 CRAIN’S TALK ON THE WEB DETROIT BUSINESS Re: Michigan voters reject Re: Penske focus: Building Belle Reader responses to stories and Proposal 1 blogs that appeared on Crain’s Isle Grand Prix The governor needs to forget website. Comments may be edited What a waste of a beautiful is- about being president, be the gover- for length and clarity. land. Publish actual numbers of the nor we elected him to be and pres- Grand Prix’s impact for the city bal- ent an honest piece of legislation Not to be a Debbie Downer, but anced against the disaster it turns that will provide us with safe roads. the school system has to be fixed be- the island into. All I’ve ever seen are OPINION Bill Martin fore people will start moving into pie-in-the-sky numbers. If it’s all the area. about bragging rights — forget it. Gov. Snyder has been a real dis- Faith be told Belle Isle sure isn’t benefiting from appointment when it comes to its presence. Post-Prop 1, leadership. His only answer seems Re: $100,000 donation to Smoody to be new taxes. There is enough Detroit rape kits campaign money to fix the roads. Get rid of the pork and the overspending, includ- Another example of tax dollars ing the cost of our so-called full- not being used for vital taxpayer Snyder’s Plan B time legislators. needs. WJW Carolyn Mazurkiewicz

t’s official. The people get the government Sad that there needs to be dona- Michigan Gov. Rick Snyder is not running for they deserve. tions for the testing, investigating president. Jungoni and prosecuting these rape kits. Our I tax dollars should cover this without His agenda at home is unfinished, as last week’s whopping defeat of the complicated sales tax ballot proposal To my state legislators and lead- question. ers, I would like a refund for the $10 JAK proved. million you just wasted on attempt- Many are second-guessing the campaign, the proposal ing to pass a proposal that went Re: Detroit Venture Partners and what the voters are saying. down 4 to 1 in an off-cycle election. pushes aside rumors of trouble But in the mix, we hope the governor himself uses the ex- That money could have fixed a few perience to shape what is left of his tenure. overpasses and patched some pot- With a few firms being excep- holes. Add in the annual salaries, in- tions, the VC game in Michigan is as And we have a suggestion: Use his power more forcefully cluding benefits and perks that the incestuous as it is bush league. Just to move things through the Legislature. Members of Snyder’s legislators get, and that number watching their cycle of deals would own party are often the obstacles on issues such as fixing now increases at least tenfold. be laughable if it weren’t for the fact [DWIGHT BURDETTE/WIKIMEDIA roads in a straightforward way. It will require a tax increase or Stano that our local and state economies COMMONS] shift; you cannot cut $1 billion from the limited unrestricted are in desperate need of more dollars available to reinvest in roads. Re: Work on $70M Brush Park promising startups. The other limit- Re: Kroger to acquire Hiller’s development to begin this year ing factor we face is the absolutely Markets in metro Detroit Lawmakers who support Snyder’s agenda should be re- asinine incubator system the state warded. Raising money to support them — versus raising You can get the young childless uses to nourish startups. Hiller’s has always been my go-to money for a presidential campaign — should be at the top of couples, artists and young profes- Investing in tech startups is like store for its produce, kosher meats the governor’s agenda. sional singles first, then the families drilling for oil. If you’re not ready to and the finest and largest assort- can come later. mainly drill dry wells, you’re in the ment of gluten-free foods. Hiller’s Jeff Reid wrong business. really stepped up for us and sup- GP for life ported our dietary needs. Will Hailing a Superior move Kroger maintain this momentum? I certainly hope so. Metro Detroit was on the winning end of a headquarters Sara Brooks move last week when Superior Industries International Inc. announced its intention to move its global executive offices If the Hillers ran their business from Van Nuys, Calif., to Southfield. better, they would not have had to sell. They have made countless bad The move makes sense because the com- business decisions over the past 15 pany manufactures aluminum wheels for years. the automotive industry, and a metro Detroit Michael Devon site is closer to customers. But the fact that former Visteon CEO Donald Stebbins now If people think that Hiller’s Mar- kets wanted to sell, they are nuts. It heads Superior also is likely a factor. The was either this or go out of business. move is subsidized by a $900,000 Michigan We should be thanking Kroger for at Strategic Fund grant. least making the investment and Donald Stebbins: The number of jobs is relatively small at saving the jobs. Superior to move 75, but it’s the sort of headquarters Michigan [CITY OF DETROIT] Steve P. offices to Michigan should have. Welcome to the neighborhood. A $70 million planned development in Brush Park would include 337 residential units and retail space. Time for the state government to do its job

fice and get back in charge of his take all of a week to get done. to get it done. Pass it and let the gov- cused on Michigan. Let’s not worry Legislature. Don’t get fancy. Just do your jobs. ernor sign it and let’s get working on about national politics right now. KEITH CRAIN The voters of Michigan sent a I think the voters of Michigan have the roads. Do it now — not later, not Concentrate on the urgent needs strong message: the mess that was all of a sudden realized that they are next fall. Now. of the state residents who elected he Republicans who are in delivered to them called Proposal 1 empowered. Lawmakers: if you The voters of Michigan are mad, you to office. Our Legislature had Tcharge in Lansing have done a was a disaster. They rejected it by a aren’t careful, these same voters will and they are particularly mad at better go to work quickly and spend terrible job of leading. Unless they, record margin. also throw all of you out of office. everyone who tried to pull this fast time on the important issues. If not, like their Democratic peers, want to Plan B should have always been With the price of gasoline at a rel- one. If citizen Carl Levin was trying they all will be looking for work. be voted out, they have to get busy Plan A. ative low, this is the time to impose to make a re-entry from Washing- The rejection of Proposal 1 was a and learn how to be competent leg- A simple tax on a gallon of gaso- a higher gas tax, which is a user fee, ton to Michigan, then he couldn’t strong signal that this electorate is islators. And that must start now line — say, 20 cents — specifically to get the roads fixed. have done a worse job. Those ads in indeed empowered. It doesn’t hap- with funding for our roads. and only for road repair should be Everyone will understand what’s support of Proposal 1 will haunt pen very often, and it probably Our governor has to table his passed by the Legislature and going on. The Legislature doesn’t him forever. won’t last long, but while it is alive thoughts about some national of- signed by our governor. It should need some sort of voter referendum Our governor has to get refo- and well, it is a powerful force. 20150511-NEWS--0009-NAT-CCI-CD_-- 5/8/2015 11:20 AM Page 1

CRAIN’S DETROIT BUSINESS // May 11, 2015 9 Time is money – and Prop 1 spent too much of both

lost, however. Think of the alterna- South Lyon. Voters were saying, “We roads. I encourage our legislators to student. Yet birth rate projections tive solutions that could have been won’t vote on a tax increase with pick up the pieces and rededicate are showing a continued decline in explored, developed, reviewed and convoluted, complex language.” their efforts to creating a viable plan future students, while at the same OTHER VOICES “road tested” in the months when Such poor messaging leads to that solves the problem simply, and time there is more competition for Bob Kittle legislative efforts were instead spent mistrust, regardless of the issue. once and for all. students via charter schools, cyber- on a doomed proposal. Proposal 1 had so many tentacles In the meantime, schools and schools and schools of choice. Bob Kittle is president of Auburn Hills- That’s time wasted from a legisla- that transparency — a keyword in local governments need help, too. Each one of these creates a win based Munetrix, which is among the tive perspective, and it needs to be any government initiative these Under the auspices of Proposal A for somebody and a loss for some- nation’s largest aggregators of municipal added to the $10 million in actual days and one that citizens increas- and the Headlee Amendment, they body else. and school district data. costs associated with getting Pro- ingly demand — was hard to find. are not generating anywhere near To me, schools of choice is the posal 1 on the ballot and promoting So here we are, more than the revenue they need to perform equivalent of Sterling Heights stealing onths ago, when there was still it to voters. $10 million poorer in cash and op- their basic functions. Most of them a business from Warren and calling it Mtime to change direction and It’s interesting to note that voters portunity costs, yet we remain a have already squeezed all the blood economic development. Is there a not put Proposal 1 on the ballot, the weren’t saying no to all tax increases state in comeback mode. We will out of their rock and are one sink- true winner? Looking ahead, let’s see decision was made to move forward on May 5. Witness the millage wins survive this. We always do. hole or failed boiler away from in- if it’s possible to fix the roads and the despite focus groups, polling data in multiple school districts includ- I truly don’t believe Michigan vot- solvency. School funding, for exam- funding for schools and local govern- and man-on-the-street sentiment ing Farmington, Birmingham and ers are opposed to paying to fix our ple, is based on a dollar amount per ments in separate bills. Soon. Ⅲ that showed minimal support by Michigan voters. Ten million dollars is a lot of money to spend on an issue that was widely anticipated to fail even before the official ballot language was crafted. It’s more than money that was VanHulle is Crain’s new reporter in IT’S NOT HOW WELL THEY WORK FOR US. Lansing IT’S HOW WELL THEY WORK FOR YOU. Lindsay VanHulle joined Crain’s Detroit Business and Bridge Maga- zine on May 4 as the Lansing corre- spondent for both publications. VanHulle, 30, a Michigan State Eric W. Dietz Shari Krasinski, CTP, CPCP University graduate, was most re- SVP, Regional Manager SVP, SaleS Manager cently a reporter Private Client Group Treasury Management at the Lansing oFlCe oFlCe State Journal. Cell Cell While there, she eriCDieTZ HUnTingTonCoM SHariKraSinSKi HUnTingTonCoM led coverage of a proposed $245 million tribal casino downtown Brian Marshall Brad Norman and was a lead LindsayVanHulle: reporter covering SVP, #oMMerCial Region Manager SVP, MiCHigan Regional SaleS Manager Middle Markets Auto Finance & Dealer Services Covers capital for the right-to-work Crain’s,Bridge legislation de- oFlCe oFlCe bate and associ- Cell Cell ated protests, among many other BrianMarSHall HUnTingTonCoM BraDnorMan HUnTingTonCoM stories. VanHulle previously covered education and nonprofits for the Tra- verse City Record-Eagle. She has won Terrance B. Pryor Scott Wolffis numerous awards for her work and SVP, Regional Manager SVP, !rea Manager oF MiCHigan is a member of the Society of Profes- Commercial Real Estate Business Banking sional Journalists and Investigative Reporters and Editors. oFlCe oFlCe The agreement between Crain’s Cell Cell and Bridge is a joint venture based TerrYPrYor HUnTingTonCoM SCoTTWolFlS HUnTingTonCoM on a common journalistic vision of high-quality, nonpartisan news and information. With the agreement, Bridge adds in-depth business coverage to its portfolio, and Crain’s expands its capacity to do deeper, project-based reporting. VanHulle will work mostly from Bridge’s Lansing office near the state capitol. She can be reached at [email protected], lvanhulle@ The Huntington National Bank is an Equal Housing Lender and Member FDIC. and Huntington are federally registered service marks of bridgemi.com or 517-657-2204. Huntington Bancshares Incorporated. Huntington. Welcome. is a service mark of Huntington Bancshares Incorporated. 2015 Huntington VanHulle’s reports from Lansing Bancshares Incorporated. will run in Crain’s and Bridge publications online and in print. Ⅲ 20150511-NEWS--0010-NAT-CCI-CD_-- 5/8/2015 11:21 AM Page 1

10 CRAIN’S DETROIT BUSINESS // May 11, 2015 Quicken bond sale capitalizes on high-yield demand

By Jody Shenn their owners, buyers snapped up Lurie, an analyst February issue by fast-food chain Companies have paid an average and Laura Keller Detroit-based Quicken’s 5.75 per- at Janney Mont- Nathan’s Famous Inc. That company 7.64 percent on securities issued Bloomberg News cent, 10-year securities at a yield gomery Scott LLC, raised money for a shareholder pay- since January 2014 to pay owner divi- Quicken Loans Inc.’s successful that’s in line with the average for the which oversees out with its first junk bonds, selling dends, compared with average yields $1.25 billion bond offering May 1 re- entire market, according to data $61 billion. $135 million of secured five-year debt of 5.98 percent during that period for flects the appetite of the market for compiled by Bloomberg. “While this isn’t at a 10 percent yield. all U.S. junk bonds, Bloomberg data higher-yielding investments with Gilbert is tapping into demand the most attrac- The bonds have done well for in- show. Quicken’s bonds are rated Ba2 less than stellar ratings, experts say. for high-yielding assets that have tive market for is- vestors, producing a total return of by Moody’s Investors Service, the The offering was Quicken’s first become increasingly sparse as cen- Dan Gilbert: suers we’ve seen 3.6 percent since they were issued in second-highest junk rating, and bond issue, and all but $250 million tral banks worldwide seek to spur Found buyers eager over the past few February, more than double the re- BBB- by Standard & Poor’s, its lowest of it will flow to the parent company growth by suppressing interest for Quicken bonds years, it’s near turn for other CCC+ rated notes with investment-grade ranking. controlled by Dan Gilbert, Rock rates. Buyers are demonstrating there. And as a re- similar maturities. The Nathan’s debt Credit Suisse Group AG and J.P. Holdings Inc. faith that Gilbert, who owns 77 per- sult, companies are saying, ‘Let’s now yields 8.34 percent, according to Morgan Chase & Co. were the bond’s While junk-bond investors typi- cent of Rock Holdings, will use the issue debt and give back to our share- Trace, the Financial Industry Regula- lead underwriters. cally have extracted a premium proceeds wisely. holders.’” tory Association’s bond-price report- Aaron Emerson, a spokesman for from companies that borrow to pay “It’s a sign of the times,” said Jody Lurie compared the offering to a ing system. Detroit-based Quicken, declined to comment on the offering. Gilbert, worth $4.4 billion as measured by Bloomberg Billionaires Index data, has been earning the confidence of debt investors as Quicken grew, which allowed his Rock Ventures LLC to build his em- THIS AWARD pire of casinos, buildings in downtown Detroit and companies rang- ing from an online university to a mobile jukebox app. SHOWS YOU’RE OUR The bond sale is providing a rare glimpse of that business. Quicken quadrupled first-quarter net income to $312 million from a HIGHEST PRIORITY. year ago, earning $706 million for the 12 months that ended March 30, according to an offering document ob- tained by Bloomberg. It had generat- DTE Energy has just been ranked “Highest in Customer Satisfaction With Business Natural Gas ed $1.6 billion in 2013 when more Service in the Midwest” by J.D. Power, but really it’s you who comes out on top. Because to achieve home owners were refinancing their this honor, our entire team has fundamentally improved the way we serve you. We’ve worked hard mortgages, the document shows. to provide important energy saving and safety information, restructure the business service center, With $5.7 billion of net income and offer new online and mobile tools to make doing business easier. We’re proud of the teams that from August 2011 through March 30, the company has recorded an aver- have made this award possible, but most of all, we’re proud of how we serve you. age gain-on-sale margin — or the amount it’s able to book on mortgages it makes and sells — of 3.6 percent, according to the document. It posted the same level of margin in the first quarter of 2015, compared with 2.1 percent and 0.8 percent for Wells Fargo & Co. and J.P. Morgan Chase & Co., the two biggest mort- gage lenders. The company, which has $2.7 billion of shareholder equity, pays $3.3 million a year for naming rights for Cleveland’s Quicken Loans Arena. Gilbert has been winning bond- holder confidence through his other ventures as well. After a firm he controls bought out a stake owned by Caesars Enter- tainment Corp. in a joint venture known as Rock Gaming, the equity was contributed to Gilbert’s bond-is- suing entity ROC Finance LLC, according to a March regulatory filing and a research note by Jefferies Group LLC analyst John Maxwell. Another firm controlled by Gilbert this month lent ROC Finance money to refinance its most senior loan. About half of the replacement loan was made junior to debt owned by investors, Maxwell said in a report. The $915 million of gaming debt rose after news that Quicken would pay a dividend to Rock, a sign investors hope to benefit from Gilbert’s DTE Energy received the highest numerical score in the Midwest in the proprietary J.D. Power 2015 Gas largesse, Maxwell said by telephone. Utility Business Customer Satisfaction StudySM. Study based on 9,243 online interviews ranking 20 “That provided some further im- providers in the Midwest. Proprietary study results are based on experiences and perceptions of businesses surveyed April-July and August-December 2014. Your experiences may vary. Visit jdpower.com. plied support that he is unlikely to back away,” giving “bondholders comfort to continue investing,” Maxwell said. Ⅲ 20150511-NEWS--0011-NAT-CCI-CD_-- 5/8/2015 11:50 AM Page 1

CRAIN’S DETROIT BUSINESS // May 11, 2015 11 SPECIAL REPORT

AMY HAIMERL Reporter’s Notebook [email protected] TWITTER: @haimerlad SECOND STAGE 20 in their 20s winner shows staying power

When Alex Riley was inducted into the Crain’s 20 in their 20s class of 2013, his company, MeritHall Staffing, was booming, and Riley projected $4 million in revenue. But initially, he planned to build a tech company that would connect contractors with skilled trades- people. “But I realized I wasn’t as good at software development as I thought,” he said. Instead, Riley Alex Riley: SBA’s restructured as a Young Entrepreneur construction for Michigan staffing company . The gamble paid off and gave Riley his first lesson in how to be agile to grow. His next inflection point came in late 2013 when Detroit-based MeritHall landed a few contracts with landscaping and snow removal firms. That wasn’t its expertise, but “we executed when it mattered.” Today, landscaping and snow removal is 70 percent of revenue. Now Riley faces another pivot point as MeritHall becomes a full- service support staff for its clients. [GLENN TRIEST] Last fall Riley recognized that this More than just the Buffalo wings have been wild for Michael Ansley and his Diversified Restaurant Holdings. Besides the very public growth of his restaurant winter looked to be as long and company, he has had to digest a menu of adversities both financial and organizational. He even had to dodge a bullet — literally.Thankfully, it wasn’t fired from a gun. snowy as 2013’s, when the region ran out of salt. “There was a short- age of road salt. Our contractors were running out, prices were going up, and it was putting stress on their operations,” he said. Eager to avoid that, Riley ac- On a wing and a scare quired bulk road salt so his contractors would be stocked for the winter. “It was an eye-opening point in Hot wings and burgers can lead to indigestion — ask the guy behind 2 restaurant chains our company,” he said. “We realized we were more than just staffing.” By Gary Anglebrandt opened a Buffalo Wild Wings in Ypsilanti. “We had federal agents dressed in In the coming year, Riley plans Special to Crain’s Detroit Business The franchise was a new brand to most Buffalo Wild Wings uniforms for a while, to expand MeritHall’s bulk materi- ichael Ansley knows how Michigan residents. it got so bad,” Ansley said. “That was als division as well as do more re- It didn’t help that the spot he and his three years of hell.” source management for his clients. hard it is to manage “We want to be the all-in-one growth. His company partner chose wasn’t very visible. It was One night a guy threw a bullet at him. source they can go to,” he said. M owns 42 Buffalo Wild behind the main drag downtown, away This isn’t a figurative way of saying he Last week, the U.S. Small Busi- Wings franchise restaurants in the region, from the campus of Eastern Michigan was shot at. ness Administration named him its and Ansley is the founder of the booming University — which was a problem for a “Some guy one night at close range Young Entrepreneur of the Year for Bagger Dave’s Burger Tavern chain. restaurant theme based on wooing took a bullet out of his pocket and flipped Michigan. “Alex is a dynamic young entre- The holding company for the two chains, college students with wings and beer. it at me and said, ‘This is my ’hood and preneur who has demonstrated a Southfield-based Diversified Restaurant The neighborhood landmark was the I’m coming back for you,’ ” Ansley said. “It significant level of success,” said Holdings Inc., now has 3,500 employees, nearby Deja Vu strip club. was just a bad neighborhood.” Gerald Moore, district director. “He compared with 2,000 three years ago. Workers at General Motors Corp.’s Bearing a newfound lesson on the has the entrepreneurial potential Revenue, too, has skyrocketed, from $77 Willow Run factory provided business importance of location, Ansley left the for long-term success. ” Ⅲ million in 2012 to $128 million last year. but formed a rowdy crowd, as did people partnership with plans to open Buffalo Read updates on more former That’s a lot of business to absorb — from the bus station across the street. Wild Wings restaurants elsewhere. His Crain’s 20 in their 20s winners at and the path hasn’t always been easy. Fights broke out, customers were surly. first was in Sterling Heights, followed by crainsdetroit.com — and prepare Ansley, Diversified’s president and Ansley once walked in on a crack deal in Fenton and Novi. to celebrate the 10th class of CEO, got his first taste of the restaurant his bathroom. On other occasions, he got honorees in our June 1 issue. business in 1995 when he and a partner jumped and chased with a pipe wrench. See ANSLEY, Page 12 20150511-NEWS--0012,0013-NAT-CCI-CD_-- 5/8/2015 12:03 PM Page 1

12 CRAIN’S DETROIT BUSINESS // May 11, 2015 SPECIAL REPORT: SECOND STAGE GROUP MEDICAL ANSLEY,from Page 11: Growth isn’t for faint of heart The pace quickened from there, the building. Sellers can relate to expansionary COVERAGE then accelerated with the 2008 Diversified ran into deeper head- frustrations. The opening of his De- launch of Bagger Dave’s in Berkley. winds in 2012 and 2013 as it juggled troit location last year was delayed Later that year, Diversified went pub- several large efforts at once. from October to November, then to lic by selling shares over the counter. The company started 2012 with December after he ran into steel and 28 restaurants and ended with 44, elevator supply shortages, then per- Into the frying pan taxing its infrastructure. Diversified mitting issues with the city, then a At points along the growth curve, bought eight Buffalo Wild Wings vendor dispute that developed into a the company was out on a limb, restaurants and opened three others lawsuit. forced to use whatever resources and also opened five Bagger Dave’s. Also, the contractor hired to make were available to get through the situ- At the same time, Diversified was the wooden bars for the new restau- ation. One of the more stark exam- gearing up to hit the public markets rant took a $60,000 deposit and ples came when Diversified was put- again through a listing on Nasdaq. never did any work, Sellers claimed. ting together Buffalo Wild Wings Registering with the U.S. Securities The frustrations grew with each restaurants in Flint and Port Huron and Exchange Commission and pro- new problem. It didn’t help that he’d and a Bagger Dave’s in Novi at the moting the offering sent Ansley on publicly announced each opening, same time. tour in April 2013, giving 109 presen- only to have to announce delays That time happened to be the tations in 19 cities in 16 states over later. second half of 2008, the onset of the two weeks. “It was kind of embarrassing,” Great Recession. “Where do you have time to focus Sellers said. The bank called while Ansley was on the restaurants?” Ansley said. Marshall’s point about entrepre- in Florida at one of his restaurants “And not only that, we have this baby neurs’ need for control is true, Sell- and said it was pulling the financ- brand, Bagger Dave’s, that wasn’t get- ers said. “It’s been very difficult for ing. The restaurants already were ting the attention it needed. And then me to accept.” under construction. we were hiring managers and acquir- Tweaking the sauce Diversified was able to finance the ing managers, and we didn’t have the completion of the restaurants using proper training in place.” The impact of this flurry of activi- cash from its regular business, These situations are to be expected ty could be seen in the numbers: EXPERIENCE THE DIFFERENCE $800,000 raised through private- when growing aggressively, said Same-store sales growth at Diversi- EXPERIENCE GHD WEALTH MANAGEMENT placement sales of shares and Duane Marshall, part owner of the fied’s Buffalo Wild Wings locations $735,000 raised from selling shares Livonia-based fell to 1 percent, and some Bagger publicly. consultancy EOS Dave’s locations were losing money. But it didn’t have enough to cover Worldwide, which “Net promoter” scores — which 3YV XIEQ SJ '4%W ½RERGMEP TPERRIVW much of the costs of the equipment has been working tracks customer feedback — were MRZIWXQIRXERHVMWOQEREKIVWGSPPEFSVEXIXS that would be needed, such as with Diversified. falling, while employee turnover FVMRK SYV GPMIRXW HIGEHIW SJ I\TIVMIRGI XS HIWMKRGYWXSQM^IHWXVEXIKMIWXSGVIEXIKVS[ kitchen gear. Those costs amounted Entrepreneurs was increasing. New stores were not ERHTVIWIVZI[IEPXL to 25 percent of construction costs. tend to be control opening at target numbers. At the last minute, Ansley turned to freaks who might “I hadn’t been in this position be- *MRERGMEP4PERRMRK%WWIX 6MWO1EREKIQIRX the costlier method of leasing equip- not react well to fore,” Ansley said. 8VYWX )WXEXI7XVEXIKMIW ment to get the restaurants what they Duane Marshall: these moments, He and his COO, Jason Curtis, -RZIWXQIRX7IPIGXMSR6IXMVIQIRX4PERW needed in time for opening. 20 percent of the he said. Accept- asked for advice from fellow restau- “That Bagger Dave’s didn’t get an time, you’ll lose ing that they will rateurs, franchisees and the Michi- equipment lease until the day we happen is all part gan Restaurant Association. opened,” Ansley said. of the game. Once the dust settled on the Nas- He prayed that the restaurants “Don’t go down without a fight, daq offering, Ansley and his team would do well enough right off the but there’s that 20 percent of the began instituting new practices that GHD bat to cover the leasing costs, not to time where things won’t go your they hope will keep them out of the mention payroll, because the com- way,” Marshall said. weeds during future busy periods. www.ghdwm.com | 586-771-2000 pany had just burned through its re- Mark Sellers owns Grand Rapids- Instead of big monthly meetings of maining cash. based BarFly Ventures LLC, the par- all the managers covering all topics, Other times were similarly awk- ent company behind HopCat, a Ansley, Curtis and CFO David Burke 21420 Greater Mack Avenue | St. Clair Shores, MI 48080 ward. young, beer-emphasizing chain split corporate duties and began The Buffalo Wild Wings corpora- that also is adding locations at a fast holding one-on-one meetings every tion went public in November 2003. pace. Two are under construction, week with a limited number of direct Seeking to boost its numbers after and six are planned for next year. reports. Ansley handles human re- that IPO, the corporate office pushed There currently are five HopCats. sources, construction, real estate and Ansley to open as soon as possible a Buffalo Wild Wings is considered marketing and holds weekly one-on- Clinton Township location he had the “gold standard” of sports bar one meetings with five people. under construction. To advance the chains in the restaurant industry, This had the effect of getting peo- HOSPITAL RECOVERY, schedule, he held staff training inside and both Buffalo Wild Wings and Di- ple to open up more and improving the building as it was being built, put- versified are known for their aggres- overall communication. ting plastic over the windows in De- sive growth, Sellers said. HopCat, he ACCIDENT cember and taking time out to power said, caters to a different crowd. See Next Page wash the parking lots as needed. When the downtown Detroit Buf- falo Wild Wings had a few days to go before its opening in December 2012, the city demanded structural changes that would have been im- possible to complete in the remaining time. “We weren’t going to get it open, and we had a VIP party and we had $5 million in this restaurant,” Ansley said. Diversified got past the problem (Available through marketing arrangement with in time for opening. But the ex- LifeSecure Insurance Company.) pense of meeting the city’s de- mands, coupled with half of the LifeSecure Insurance Company is solely responsible for the hospital recovery company’s staff expressing no inter- [ROBERT MATHEWS] and accident products described in this ad. LifeSecure Insurance Company is an est in moving downtown, put the Mark Sellers,ownerofthe Grand Rapids-based chain ofHopCatbars,knows all about independent company that does not provide Blue Cross Blue Shield of Michigan the challenges ofexpansion.The opening ofhis Detroit location last yearwas products or services. brakes on previously announced plans to move its headquarters into delayed bysupplyshortages,then permitting issues with the city,then a vendorlawsuit. 20150511-NEWS--0012,0013-NAT-CCI-CD_-- 5/8/2015 11:52 AM Page 2

CRAIN’S DETROIT BUSINESS // May 11, 2015 13 SPECIAL REPORT: SECOND STAGE

From Previous Page 1,” he said. “We’re not necessarily an ing for each new restaurant comes IT company, we’re not necessarily from this line and the rest from cash. At the big monthly meetings, “it an HR company, we’re not neces- Right now Diversified has $62 was really hard to get people to talk sarily an accounting company. ... million in debt, which Ansley said is DENTAL AND VISION in front of their peers,” Ansley said. Our HR department currently only in line with the company’s self-im- “No one wants to admit they’re has three people there.” posed limits on the ratio of debt to doing something wrong. This is a lot EOS Worldwide advises Diversi- earnings before interest, taxes, de- more intimate, a lot more focused.” fied to work on no more than seven preciation and amortization. The company revamped its bene- goals for the next 90 days. That way, In December, the company picked fits and compensation policies, only the most important priorities up $25 million in cash through the launched a corporate training pro- rise to the top, and they continually sale of 11 properties that house its gram, hired a third party to manage shuffle as they are addressed. restaurants. The restaurants will stay employee assessments and began Another is creating specific ac- and Diversified will pay rent. hiring industry professionals with ex- countability charts — perhaps not The company took a $500,000 perience at larger organizations, such the most heart-racing task at a rap- loss because of the sale, which as a food and beverage manager idly growing company. But when a crimped last year’s profits. But Ans- from the Red Robin chain. Consul- crisis develops, the first order of ley said it was worth it to get the tants from the Disney Institute cur- business shouldn’t be figuring out cash needed for further expansion. rently work with Diversified on its who’s responsible for doing what. “Too many times we have been employee retention and recruitment. in no-cash situations. I don’t ever Spreading wings “I’ve started taking (human re- want to be there again,” he said. sources) a lot more seriously,” Ans- The growth didn’t stop during this “Cash is king. If a recession hits, we ley said. adjustment period. The Bagger always have cash.” He also takes more time to hire Dave’s store count increased by six Diversified ended last year with managers and asks trusted people last year; on the Buffalo Wild Wings $18.7 million in cash, up from $9.6 outside the company to interview side, Diversified bought three restau- million when the year began. candidates, injecting a fresh set of rants and opened another three. At times Diversified has come eyes into the process. All these new restaurants require across what it thought were great lo- Outsourcing has been another capital, and Diversified has relied cations to build a restaurant but tool for Diversified. Most account- on a number of tactics to keep the found the price too expensive. So it ing, IT and HR functions are han- funds flowing. has built three small strip malls, al- !30!24.%23 9/5'%44/&/#53/. dled by professional service compa- One is the public markets. The lowing it to cover costs through nies. Marketing gets support from Nasdaq offering raised $31.9 mil- leases to other businesses. This the budget of the Buffalo Wild Wings lion, which the company used to move alleviates construction cost "5),$).'9/52"53).%33 Inc. franchisor company. service debt and bolster its cash re- pressure but adds the job of land- 7(),%7%&/#53/.&).!.#).')4 Diversified has had to change serves to $20 million. lord to the company’s list of tasks providers of these services, so it’s Another is debt, which Diversified and speaks to the balancing acts not without its management de- has used throughout its growth. The companies sometimes must per- mands. But Ansley said outsourcing company maintains a $20 million to form when growing quickly. has made things a lot easier. $25 million line of credit for develop- The work doesn’t end when a “We’re a restaurant company, No. ment. Up to 70 percent of the fund- restaurant is built. Each undergoes a “refresh” every five years and a full remodeling every 10. All told, the heavy real estate costs led to $36 million in capital expenditures last year, and Diversified has budgeted $40 million for this year. “We’re probably going to have to learn to manage that a lot better because we really don’t want to go back Increase your cash flow and pursue to the market,” Ansley said. “Because bigger opportunities with our customized, when you go back to the market, you flexible lending solutions. dilute your shareholders.” Real estate expenses contributed s!2&INANCING (248) 658-1100 to a $1.3 million net loss last year, s,INESOF#REDIT www.hitachibusinessfinance.com compared with profits of $134,000 in 2013 and $275,000 in 2012. Ans- ley predicts profitability this year, saying last year’s expenses that led to the loss were one-time costs. Diversified plans to keep its expansion train rolling at a clip of five or six Bagger Dave’s and three or four Buffalo Wild Wings a year. The BLUE CROSS COVERS company expects to have 52 Buffalo Wild Wings locations and up to 51 EVERY CORNER OF Bagger Dave’s locations by the end of 2017. Bagger Dave’s, which took the YOUR BUSINESS. biggest hit when things got busy, un- derwent a marketing facelift and a new menu that came out in early 2014. Same-store sales figures rose 8 percent during the first quarter of this year, compared with 1.2 percent during the same quarter last year and 5.8 percent for the fourth quarter of 2014. Financing, real estate and staffing remain the top priorities. Ansley said his company hasn’t al- BCBSM.COM/EMPLOYERS ways done everything right, but it continues to improve along the way. “We’re just trying to get better at Blue Cross Blue Shield of Michigan and Blue Care Network are nonprofit corporations and independent licensees of the Blue Cross and Blue Shield Association. it.” Ⅲ 20150511-NEWS--0014-NAT-CCI-CD_-- 5/8/2015 11:51 AM Page 1

14 CRAIN’S DETROIT BUSINESS // May 11, 2015 SPECIAL REPORT: SECOND STAGE Are You Tired Of Hearing This From Your Buyers? Growing energy testing firm learns powerful lesson on growth

By Gary Anglebrandt Ecotelligent Homes LLC of fighting the cash flow battle, we Special to Crain’s Detroit Business Location: Farmington Hills decided to get back to our roots on Ecotelligent Homes LLC uses test- the residential side,” said Godward, ing equipment to detect energy and Description: Home energy who founded the company in 2009. temperature flows in homes. efficiency services Ecotelligent wrapped up the exist- Homeowners use the Farming- Owner: Amanda Godward ing commercial work and started re- ton Hills company’s services to bet- ferring potential clients to compa- Employees: 9 ter understand why certain parts of nies Godward trusted. Buyers Are Stronger Than Sellers Today! their homes are too hot, too cold or Revenue: $500,000 in 2014 Within two months, Ecotelligent too drafty. The diagnostics then received all outstanding payments Stop Geƫng Beat Up On Price and Stop Being CommodiƟzed! help people decide whether to re- and closed the accounts — fortu- place windows or a furnace. nately, just before another busy resi- In 2013, Ecotelligent branched dential season began. Join us for our Business Leaders Workshop, into commercial buildings. The resi- The commercial effort wasn’t a dential side of the business peaks in total waste of energy, though. Ecotel- “NEGOTIATING WITH THE SAVVY BUYER” summer and winter, so adding com- ligent has used its commercial con- mercial work would even out the Most worrisome was that the resi- tacts to grow its residential business Thursday, June 25th, 8:30 - 11:00 AM workload. dential side of the business was tak- by offering home energy audit pro- Problem: The company was taken ing a dip. Godward had been so busy grams to employees of those compa- aback by the long waits to get paid on dealing with the commercial busi- nies. commercial ac- ness that she hadn’t had time to gen- Godward hasn’t ruled out making SeaƟng is Limited | Reserve Your Spot Today counts. Some erate new sales leads. As a result, the another attempt at commercial work took more than overall quality and efficiency of the down the road. 100 days to pay residential business was suffering. Risks and considerations: “For me, www.gerryweinberg.sandler.com up. Losses on the residential side off- the risk was employee morale,” God- or Call 248-353-4030 “Those proj- set gains on the commercial side, ward said. ects take a lot making the endeavor a wash. What After getting the team excited and longer to mature started as a plan to get busier during on board with the expansion into and even longer slow times was now damaging the commercial work, Godward had to Amanda to pay,” said company’s core peak-season work. walk everyone back and admit de- Godward: Tested Ecotelligent’s Solution: By mid-2014, Ecotelligent feat. Two or three employees had to new revenue source owner, Amanda had to quash the commercial work be let go. Godward. and get back to square one. “Instead “Laying them off can have a bad impact,” she said. Godward had shared numbers for the project throughout its life span, a decision that helped lessen the blow. “They knew targets weren’t being met,” she said. Expert opinion: Almost all entrepreneurs get distracted by what Gino Wickman, founder of EOS Worldwide in Livonia and author of books on entrepreneurship, calls “shiny stuff” that ap- pears lucrative Gino Wickman: but ultimately Max out core biz detracts from the before “shiny stuff” core business. “Most of the time, it is a mistake,” Wickman said. He advises companies to exhaust all opportunities in their core business before looking elsewhere for growth. When the rare piece of “good shiny stuff” comes along that makes sense to pursue, the business has to be prepared to commit new resources — people and money — toward that pursuit. If the goal is to reach $20 million in revenue and that can be reached through the core business, then that’s what should be done. When an attempt fails, it’s good to do as Ecotelligent did and pull back as gracefully, honestly and quickly as possible, avoiding burn- ing bridges on the way out. Then, Wickman said, “do an autopsy” to see what could have been done better and what drove the decision in the first place. Ⅲ 20150511-NEWS--0015-NAT-CCI-CD_-- 5/8/2015 11:40 AM Page 1

CRAIN’S DETROIT BUSINESS // May 11, 2015 15

MARY KRAMER Publisher’s Notebook [email protected] Tesla spotlights state’s tool-and-die heritage So what does it mean that Elon Musk bought a Grand Rapids tool- and-die shop? For starters, Riviera Tool will be With that spring ritual — the weekend slog up and down I-75 — about to rev up, you’d be renamed Tesla Tool & Die. Talk about bringing a bit of Silicon Valley excused for thinking there has to be a better way to get up north. Could that way be a railway? cachet to a city whose national reputation should rightly be the hub of the innovative and design- centric office furniture universe. Second, as our sister publication Automotive News noted last week, by owning a piece of its production process, Musk can accelerate production of Tesla’s electric vehicles. It also may be a nod that Silicon Valley is gaining a greater appreciation of how complicated the supply chain is for the high- tech machinery we call cars. Every product launch takes new tooling. “It’s a strategic move,” says Glenn Stevens, vice president of MICHauto, a statewide industry advocacy group founded by the Detroit Regional Chamber. “There are 1,000 tool-and- die facilities in Michigan. That does not exist on the West Coast.” In fact, Stevens says, Tesla has a reported 56 suppliers in Michigan and bought $170 million worth of components in 2014. “Tesla is one of the most innovative and disruptive companies out there, and to build a world-class car, they need to come [NATHAN SKID/CDB] [ISTOCK PHOTO] to Michigan,” Stevens said. Asked by a reporter whether he would consider setting up an assembly plant in Michigan, Tesla- founder Musk responded: “It’s not out of the question. Maybe Michigan shouldn’t stop us from selling cars here. That would be a nice gesture.” They think it can … Musk was referring to a 2014 law that bars Tesla from selling vehicles directly to consumers. Riviera Tool now has global auto customers — Ford, GM, Fiat Chrysler, Nissan, Daimler and BMW. Its large- scale custom metal stamping die they think it can … systems are used in the production of sheet metal parts and assemblies. Big picture? Maybe Musk’s appreciation for what it takes to By Amy Lane discussion as well as about $18,700 connecting Traverse City and Southeast make things — the art of design and Special to Crain’s Michigan Business manufacturing — could introduce raised in a Land Use Institute Michigan. other tech entrepreneurs to the t’s an idea with appeal: Riding the crowdfunding campaign in March. At statewide community forums in strengths that Michigan has built. rails north from Ann Arbor to “There’s a lot of work to be done and 2010 while the Michigan Department of Those strengths were created by Traverse City, maybe for a questions to be answered, and our goal is Transportation was developing a state entrepreneurs like Clare Jarecki, summer weekend — and no whose Jarecki Machine and Tool just to keep moving this forward to get rail plan, a consistent and top theme that Co. in Grand Rapids was once the highway congestion to contend the questions answered,” said Jim emerged was that Michigan’s passenger with,I there or back. largest independent tool-and-die Bruckbauer, a policy specialist at the rail system should include a Traverse The Michigan Land Use Institute hopes manufacturer in the world. Land Use Institute. City-to-southern Michigan connection, Jarecki died in 2004, but you can to make that a reality. It’s a 10-year vision to provide a new said Liz Treutel, a policy associate at the trace a kind of family tree among The Traverse City-based nonprofit is Michigan Environmental Council — tooling companies in Grand Rapids; and more environmentally friendly spearheading a campaign to explore which, with the Michigan Association of in many cases, founders either option to travel the state and boost the passenger rail service on an Railroad Passengers, convened the worked for Jarecki or companies downtown economies of communities founded by former Jarecki approximately 240-mile stretch of track meetings. employees. between the two cities — an “A2TC” along the route, while speaking to initiative that’s generated interest and public sentiment for passenger rail See TRAIN, Page 16 20150511-NEWS--0016,0017-NAT-CCI-CD_-- 5/8/2015 11:23 AM Page 1

16 CRAIN’S DETROIT BUSINESS // May 11, 2015

CRAIN’S MICHIGAN BUSINESS TRAIN,from Page 15: Is rail to Traverse City a sight for slow I’s? Feedback ran both ways, Treutel information, Bagwell said. With said. People in northern Michigan MDOT and the institute, Great wanted easier access to downstate, Lakes Central could run a test ride and tourists were interested in rail from Ann Arbor to Traverse City service heading north. next summer, assessing the track Conducting a feasibility study for a and the time it would take. Reliable, modernized grid new route to Traverse City, among MDOT’s Hoeffner said additional other destinations, became a recom- questions include how much people Energy is essential to the way we live, work and play. mendation of the 2011 state rail plan. would pay for tickets. “Most passen- “If it’s done, we would want to do ger service does not cover the operat- ITC operates, builds and maintains the region’s it in partnership with others that are ing cost from what the passengers looking at it,” like the Land Use In- pay,” he said, “so where would the electric transmission infrastructure. We’re a Michigan- stitute, said Tim Hoeffner, director operating subsidy come from? based company working hard to improve electric of MDOT’s Office of Rail. “That said, it’s an interesting idea, The Land Use Institute has been and it is the type of thing that we reliability and increase electric transmission capacity discussing A2TC with MDOT and work with the local communities throughout the Midwest. other organizations and potential on. If they have a vision or a con- stakeholders and is looking at how a cept, then we’re here to work with feasibility study could proceed next them on it.” year to answer many unknowns — The Michigan Environmental We’re ITC – your energy superhighway. such as potential ridership, cost of Council is project manager on a track improvements, operating $100,000 study examining another costs and structure, and travel time passenger rail route — connecting between communities. Detroit, Lansing, Grand Rapids and Holland. The council has been dis- Track is ready … almost cussing A2TC with the Land Use In- The track, predominantly state- stitute and hopes to be involved, owned and used for freight, is operat- perhaps contributing staff time or ed by the Great Lakes Central Railroad. www.itctransco.com knowledge from the “Coast to Coast” About 95 percent of the tracks are in study, Treutel said. condition for passenger service. Also offering to share information Small sections, like one outside Tra- is the Ann Arbor Area Transportation verse City, only meet Federal Railroad Authority, which is conducting a fea- Administration standards for freight sibility study on a host of brick-and- use and would need to be improved. mortar issues associated with a In addition, controls that would nearly 27-mile proposed commuter allow freight operations and pas- service connecting Howell and Ann senger trains to run at the same Arbor, said Michael Benham, a time would be federally required, strategic planner for the authority. said Chris Bagwell, Great Lakes That stretch of track is part of the Central’s executive vice president line that goes north to Traverse City. and general manager. The A2TC route envisions several He did not have a cost estimate community stops between Ann but said installing what are known Arbor and Traverse City and a possi- as positive train controls would in- ble jog up to Petoskey. volve “a full GPS system of the rail- One stop could be Mount Pleas- road” and improving locomotives ant. That city’s community services and grade crossings so that if two and economic development direc- trains are approaching each other, tor, William Mrdeza, sees many pos- they would be able to communicate sible benefits, including a new way and brake. for students to commute to Central The railroad is working with the Land Use Institute and providing See Next Page

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CRAIN’S DETROIT BUSINESS // May 11, 2015 17 CRAIN’S MICHIGAN BUSINESS

From Previous Page Up north by rail: The train of thought Michigan University, an asset to downtown development and a sell- The Michigan Land Use Institute is behind a campaign for a 240-mile rail line ing point to attract residents and that would link Southeast Michigan to Traverse City and possibly Petoskey. tourism. “And obviously all of that brings S UMMER in some economic impact to the Petoskey community as well,” Mrdeza said. “I event series think we’re really interested in see- Michigan Design Center presents four smart events designed ing where this might go and if we to inspire home projects both inside and out! can be a part of determining the Traverse feasibility.” City With some of its crowdfunding money, the Land Use Institute expects this summer to create videos Cadillac showing the impact the service might have on communities. An economic engine? Mt. Pleasant In Traverse City, community trans- THE GREAT OUTDOORS portation advocate Kimberly Pon- tius, executive vice president of the Alma Create outdoor spaces that feel like home Traverse Area Association of Realtors, Grand Rapids THURSDAY, MAY 14 | 9:00 AM - 5:00 PM said A2TC service could help attract Owosso Port Huron clients such as second-home buyers Durand See the freshest new designs in outdoor fabrics and and cater to executives who opt to Holland furnishings to help you make the most of summer. Enjoy Howell live in the Traverse region and com- a keynote demonstration by Master Gardener, Pat Seibel, Designer Paul Feiten creates a colorful outdoor paradise, mute to Southeast Michigan. The rail Detroit line could benefit economies on both Battle Creek exciting showroom events throughout the day, and more. ends of the route, he said. Kalamazoo Ann Arbor That includes a boost to tourism. For more information on this exciting event series Southeast Michigan is the Traverse please visit michigandesign.com. City area’s biggest market, other than the state as a whole. Connect- ing Southeast Michigan popula- Proposed “A2TC” route Amtrak route between Grand Rapids and Chicago 1700 Stutz Drive | Troy, MI 48084 | 248.649.4772 tions to northern destinations via M - F | 9AM - 5PM | Open to the public rail is worth looking at, said Brad Amtrak route between Detroit and Chicago Amtrak route between michigandesign.com Van Dommelen, president and CEO Port Huron and Chicago of Traverse City Tourism. Train travel, Van Dommelen said, “is so much more leisurely and en- “Normally, your enjoyment of train, your experience, your enjoy- joyable … instead of a grind on the the weekend doesn’t begin until ment begins the moment you step highways” and would add to the ex- you get to your destination,” Van on the train. It becomes part of the

perience of coming north. Dommelen said. “Traveling by adventure.” Ⅲ

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18 CRAIN’S DETROIT BUSINESS // May 11, 2015 CRAIN’S MICHIGAN BUSINESS Backers to launch GR ‘waterfront metropolis’plan

By Rod Kackley Grand Rapids would be tied to and GR Forward’s official agenda in- investments can more logically Special to Crain’s Michigan Business anchored by about four miles of the cludes bringing more retail, services align with what the public sector is A coalition calling itself GR Forward Grand River, Michigan’s longest river. and diversity to downtown; imple- doing,” Kelly said. is less than 30 days away from laying Kristopher Larson, president of menting a transportation system in Jay Steffen, the city’s assistant out its strategy for “a collection of big, Downtown Grand Rapids, said GR which motorized vehicles would planning director, said the GR For- bold ideas to turn Grand Rapids into Forward is a “comprehensive plan- share space with bicycles and ward plan should be released by the a waterfront metropolis.” ning process” led by his own organi- pedestrians; expanding job oppor- end of May. Final approval by the The Grand River “is our best asset, [EXPERIENCE GRAND RAPIDS] zation — an alliance of downtown tunities; encouraging the creation Grand Rapids City Commission is ex- and we want to make sure we are Grand Rapids leaders have a grand business owners — the city of Grand of more businesses while retaining pected in mid-October. maximizing the opportunities along ambition for the Grand River. Rapids, the Grand Rapids Public the current ones; and creating parks The plan must answer two key it by looking at ways to integrate not Schools and resident organizations and public spaces in downtown. questions: Where the money for the only development but recreation ac- planning manager for Downtown such as Grand Rapids Whitewater, the “In some ways, this is our way of action plan would come from and tivities along the banks of the river Grand Rapids Inc. group pushing to re-create the telling the development communi- who “is going to push this forward,” and in the river itself,” said Tim Kelly, GR Forward’s vision of a new rapids in the Grand River. ty where our priorities are so their Larson said. Some developers, ar- chitects and bankers already are an- swering the second question. “There is a huge level of commitment to move this forward,” said Monica Steimie, the development director of 616 Development, an Either we’re doing something right urban real estate development firm based downtown. “Many of those conversations have already started.” or everything right. Grand Rapids officials have begun working on the GR Forward Every 401(k) plan managed by Greenleaf Trust has increased in employee plan, too, by planning to buy a major parcel of riverfront property. contributions, participation and asset value. With our ﬁ duciary excellence, An early adopter of GR Forward our open architecture’s best-in-class investment platform, and nearly perfect is Sam Cummings, managing partner of CWD Real Estate Investment. client satisfaction scores, chances are good that we can make things right “This is what we were dreaming about 20-some years ago when we for your company’s plan, too. Call us today to learn how. had an eight-hour city max,” Cum- mings said. “My friend (former Grand Rapids Mayor) John Logie used to say after 5 o’clock in downtown Grand Rapids, you could roll a bowling ball down the sidewalk, secure in the knowledge you wouldn’t knock anybody over.” Cummings said downtown’s pop- ulation needs to grow by 12,000 to attract the retailers and other businesses that would attract more residents. Larson said GR Forward has heard ideas such as creating space for “adventure programs”; a continuous river trail on both sides of the Grand; creating a landscape gallery of public art; improving access for boaters, kayakers and others who want to get into the water; and designing space for “multiseasonal activities.” Grand Rapids is hardly the first city in Michigan to look at reclaiming its waterfront. Reclaiming the Detroit River has been on the Motor City’s agenda for some time; the Southwest Michigan community of Allegan is creating a new downtown urban development on the banks of the Kala- mazoo River; and Muskegon economic developers are working on recreational and residential improvements along their Lake Michigan shoreline. But he said Grand Rapids is doing more than coming in at the tail end of an economic developer’s version of follow the leader. Steffen said GR Forward is looking at 15-20 sites that could be opened up to people who wanted to recreate on the river’s banks. Larson of Downtown Grand Rapids said the city’s recognition of the importance of the Grand River 34977 woodward avenue birmingham, mi 48009 is long overdue. greenleaftrust.com 248.530.6200 “We spend years with our backs to the river,” he said. “This is a complete retrofit.” Ⅲ 20150511-NEWS--0019-NAT-CCI-CD_-- 5/8/2015 11:24 AM Page 1

CRAIN’S DETROIT BUSINESS // May 11, 2015 19

sales of Cadillac, Chevrolet, ACDelco JAPAN products; parts imports and sales, and aftersales ith a 2014 gross domestic product of $4.7 trillion, Japan was Top executive: Sumito Ishii, the world’s fourth-largest economy last year. The country’s managing director Wmanufacturing sector suffered a devastating blow when the 9.0 magnitude earthquake and the resulting tsunami hit in 2011. Lear Corp. A continuing challenge for Japan is its dependence on imported Based: Southfield raw materials and fuels, but the government’s decision to postpone Operations: Three administrative/ a further increase to the county’s consumption tax has helped with technical facilities primarily for economic recovery; sales of luxury goods are up 20 percent since sales, engineering and customer 2012, Bloomberg reported. support in Hiroshima, Kariya and Japan’s major exports include motor vehicles, semiconductors, Yokohama plastic materials, auto parts, iron and steel products, and power- Employees: 75 generating machinery. Its major export partners are the United Services: Engineering and sales States (18.8 percent), China (18.1 percent), South Korea (7.9 support for electrical and seating percent) and Hong Kong (5.2 percent). The country’s major businesses [ALTAIR ENGINEERING INC.] imports include liquid natural gas, clothing, coal, audio and Top executive: Jay Kunkel, president Altair Engineering employs 85 in three visual apparatus and petroleum. of Asia Pacific Operations offices in Japan, including one in Tokyo. Tokyo Clients: Mitsubishi, Nissan, Honda, Crain’s World Watch report showcases Mazda, Toyota companies that are leaders in global Yokohama Nagoya Altair Engineering Inc. markets and those that are expanding. Hiroshima MSX International Inc. Based: Troy Each World Watch features a different Osaka Based: Detroit Operations: Offices in Tokyo, country. If you know of a Michigan Fukuoka Operations: One office in Tokyo Nagoya and Osaka company that exports, Employees: 40 Employees: 85 manufactures abroad or has Services: Serving its automotive Products/Services: Proprietary facilities abroad, email Jennette Coming up Retail Network Solutions software and services, which Smith, managing editor, at ■ June: India customers, including dealer sales, include engineering simulation [email protected]. ■ July: Turkey aftersales, technical training, software, software for on-demand training academy management, computing, software for dealer competencies assessment, industrial design, and dealer mystery shopping, standard engineering services Chrysler Group LLC Products/Services: Performance sales office in Yokohama audits, process improvement Top executive: Masatomo Ayame, (corporate entity in Japan is FCA plastics, water products and Employees: 200 coaching and warranty services country manager Japan Ltd.) services, agriculture, electronic Top executive: Tomoyuki Okubo, Top executives: Soichiro Nagai, Clients: Toyota, Honda, Nissan, Based: Auburn Hills materials and building products vice president of Sales for Japan, operations manager for MSXI Mazda, Subaru, Mitsubishi Heavy Operations: Headquarters in Tokyo, and services Federal-Mogul Powertrain Japan; Nick Coyle, general Industries, Canon, Sony, ClassNK, vehicle preparation center in Top executive: Peter Jennings, manager for MSXI Japan; Xavier Suzuki, Toshiba Toyohashi and a parts distribution president of Dow Chemical Japan General Motors Co. Vandame, vice president for MSXI center in Yokohama and Korea Based: Detroit Asia-Pacific Autoliv Inc. Employees: 100 Operations: One office in Tokyo Clients: Audi, BMW, Citroën, Jaguar Based: Auburn Hills Products/Services: Sales of Alfa Federal-Mogul Corp. and a vehicle processing center in Land Rover, Peugeot, Renault Operations: Headquarters in Romeo, Chrysler, Fiat, and Jeep Based: Southfield Zama Yokohama and technical centers models Operations: One manufacturing fa- Employees: 40 TI Automotive Ltd. in Nagoya, Atsugi, Hiroshima, Top executive: Pontus Häggstrõm, cility and one administrative and Products/Services: Import and Based: Auburn Hills Taketoyo and Kasumigaura president and CEO Employment: 160 Employees: 1,500 Operations: One manufacturing Products: Airbags, seatbelts, Domino’s Pizza Inc. plant in Gunma and sales offices in steering wheels and inflators Based: Ann Arbor Nagoya and Yokohama Top executive: Brad Murray, Operations: Headquarters in Tokyo Products/Services: Fuel delivery president of Autoliv Japan and 300 stores throughout the systems and sales operations Clients: Toyota, Honda, Nissan, country Top executive: Michiaki Sasaki, Mazda, Mitsubishi, Suzuki, Subaru, Employees: 1,000 president of TI Automotive Japan Daihatsu, Isuzu Products/Services: Pizza; chicken; Clients: Nissan, Honda, Toyota, bread sides; specialty items such as Mitsubishi, Mazda, Suzuki Belfor Holdings Inc. soups, fried chicken, popcorn Based: Birmingham shrimp and risotto Ziebart International Corp. Operations: Headquarters in Top executive: Scott Oelkers, Based: Troy Tokyo with branch offices in president of Domino’s Pizza Japan Operations: One distributorship Nagoya, Osaka and Fukuoka Other information: There is no and store in Matsuyamashi and 43 Employees: 35 Japanese word for “pepperoni”; other stores across the country Products: Commercial and unique Japan pizza toppings Employees: 114 industrial fire, smoke and water- include zucchini, eggplant, corn, Products/Services: Professional restoration services; document and mayonnaise, snow crab and detailing, paint protection data recovery; mold remediation; shrimp. coatings, underbody sound electronics and machinery barriers, sprayed-on bedliners, restoration; and environmental Dow Chemical Co. automotive glass repair, services Based: Midland architectural film, window tinting, Top executive: Naoto Takigawa, Operations: Headquarters in Tokyo, paint protection film, truck managing director one development center in accessories, electronics and scratch More information: Belfor Japan Yokohama, one laboratory in Ogori repair services recently restored a saké and six manufacturing plants in Top executive: Thomas Wolfe, manufacturer, Nishiyama Soma, Niigata, Nagoya, Kanuma, [BELFOR HOLDINGS INC.] president and CEO of Ziebart Syuzojyo Sapporo and Kasaoka A BelforJapan technical specialist spray-cleans electronics in the Tokyo facility to International Employees: 700 restore them after a fire. —Natalie Broda DBpageAD_DBpageAD.qxd 4/16/2015 8:49 AM Page 1

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CRAIN’S DETROIT BUSINESS // May 11, 2015 21 CRAIN'S LIST: MICHIGAN DEFENSE CONTRACTORS Ranked by 2014 value of new contracts Value of new Dept. of Company Defense contracts Rank Address 2014 Phone; website Top executive ($000,000) Contracting agency Principal place of work Products or services provided General Dynamics Land Systems Gary Whited $989.4 Defense Contract Management Sterling Heights Military armored vehicles, tank and tank 1 38500 Mound Road, Sterling Heights 48310 president Agency, Canadian government component manufacturing, combat assault (586) 825-4000; www.gdls.com and tactical vehicles BAE Systems Inc. Mark Signorelli 607.0 Department of the Army Sterling Heights Development of a Future Fighting Vehicle 2 34201 Van Dyke Ave., Sterling Heights 48312 VP and general (FFV) system. (586) 795-2220; www.baesystems.com manager, combat vehicles MTU America Inc. Matthias Vogel 180.0 Department of the Army, Navy and NA Manufactures large diesel engines, 3 39525 MacKenzie Drive, Novi 48188 president and CEO Department of the Coast Guard propulsion and drive systems. (248) 560-8888; www.mtu-online.com Loc Performance Products Inc. Louis Burr 170.0 Tacom Plymouth Machining and assembly of driveline, 4 13505 N. Haggerty Road, Plymouth 48170 president suspension and engine components for (734) 453-2300; www.locperformance.com military and off-road vehicles AAR Manufacturing Inc. Lee Krantz 133.0 Department of the Air Force Cadillac The repair and production of 463L cargo 5 201 Haynes St., Cadillac 49601 general manager pallets. (231) 779-4928; www.aarcorp.com FutureNet Group Inc. Perry Mehta 94.3 Multiple government agencies Continental U.S. Facility repair, renovation, conversion, 6 12801 Auburn St., Detroit 48223 president and CEO construction and maintenance services; (313) 544-7117; www.futurenetgroup.com environmental and IT services Lowe Campbell Ewald Jim Palmer 85.0 Department of the Navy Detroit Advertising services 7 2000 Brush St., Suite 601, Detroit 48226 CEO (586) 574-3400; www.lowe-ce.com Williams International Co. LLC Gregg Williams 45.0 Department of the Air Force Walled Lake; Ogden, Utah Develop turbine engines 2280 E. West Maple Road, Commerce Township chairman, president 8 48390 and CEO (248) 624-5200; www.williams-int.com Walbridge Aldinger Co. John Rakolta Jr. 41.3 U.S. Army Corps of Engineers, Virginia Beach, Va.; Construction of federal facilities, automotive 9 777 Woodward Ave., Suite 300, Detroit 48226 chairman and CEO Naval Facilities Engineering Jacksonville, N.C.; Ft. Bragg, manufacturing plants, higher education (313) 963-8000; www.walbridge.com Command N.C. facilities, airport terminals, hospitals and industrial buildings General Electric Aviation Systems LLC David Joyce 29.3 Department of the Navy Clearwater, Fla. Support for the stores management system 10 3290 Patterson Ave. SE, Grand Rapids 49512 president and CEO and control system converter for the F/A-18 (877) 432-3272; www.geaviation.com aircraft

This list of leading defense contractors is an approximate compilation of companies headquartered in Michigan with new contracts with the U.S. Department of Defense. Information was provided by the companies, U.S. Federal Procurement Data System and U.S. Department of Defense. Awards may be greater than annual revenue because of disbursement over a number of years. It is not a complete listing but the most comprehensive available. Actual revenue figures may vary. NA = not available.

LIST RESEARCHED BY SONYA D. HILL For an expanded list, go to crainsdetroit.com/section/data_lists

Spotlight: Significant defense contract wins and losses over past 30 years

some contracts for postwar military and Crumm, husband Aaron Crumm and predecessor version of what is now the 2011 civilian vehicles in Kuwait and Saudi John Holloran, who was Aaron Crumm’s Michigan Defense Center to 1985 Ⅲ General Dynamics closes on an Arabia for Sterling Heights-based adviser while Crumm pursued a Ph.D. at coordinate defense contracting for Ⅲ AM General LLC, then acquisition of South Carolina-based General Dynamics Land Systems the University of Michigan. The small and midsize businesses. The headquartered in Livonia, rolls out the Force Protection Inc. in a deal and the Detroit 3. But these are not company was later acquired by U. K.- nonprofit Michigan Homeland first production units of the High valued at $360 million. enough to offset a slump in U.S. defense based Ultra Electronics Holdings. Security Consortium is also formed Mobility Multi-Purpose Wheeled spending during much of the 1990s. as a business development Ⅲ Tacom completes a consolidation Vehicle, or Humvee, under a $1.2 billion 2001 organization for Michigan companies. called for years earlier under the federal contract awarded in 1983. The company 1997 Sept. 11 terrorist attacks redefine U.S. 2008 Base Realignment and Closure relocates its headquarters to South Ⅲ Tacom in Warren formally closes foreign policy and defense Commission recommendations. More Bend, Ind., in 1986 but maintains its the Detroit Arsenal Tank Plant and procurement. Army contracts awarded Ⅲ General Dynamics and BAE win than 1,100 positions transfer to Warren engineering and product development relocates some command functions through Tacom climb from under $6 incentives worth more than $40 million from Rock Island, Ill., to reach a peak center in metro Detroit. off-site. The plant, designed by Albert billion in fiscal 2000 to $8.2 billion by to invest more than $60 million and employment of 8,450, mostly civilians. 1987 Kahn, was in use from 1940 to 1996 and fiscal 2003 and increase almost every add more than 950 jobs over the next 2012 had been operated by Chrysler year afterward to a peak of $30.5 billion 12 years; both companies later report Ⅲ Bruce Burton founds the former Defense and later General Dynamics. in fiscal 2008. meeting most of their benchmarks Ⅲ Burtek becomes Burtek Burtek Inc. as a startup consulting The city of Warren takes over the through job additions but later have Enterprises Inc., after the Illinois and engineering services contracting 2003 shuttered property in 2001 and layoffs that reverse much of those private equity firm Wynnchurch firm in Grosse Pointe Park. The company, redevelops it for private use. Ⅲ Arlington, Va.-based BAE Systems, gains amid the federal government’s Capital Partners LP buys the which later moved to Chesterfield which has maintained a modest metro sequestration and the withdrawal of company’s assets out of receivership Township, develops an expertise in 2000 Detroit presence since 1979, moves its coalition forces from Iraq. for $9 million. modifying and equipping trucks. Ⅲ The Army awards a joint venture of local offices from Chicago Road in Ⅲ The Macomb-Oakland 2014 General Dynamics and General Warren to Sterling Heights. 1990 University Incubator, aiding mainly Motors Corp. a contract estimated Ⅲ Lakeshore TolTest Corp., a civil Ⅲ The former Electric Fuel Corp., Ⅲ Formal launch of Future Combat defense- and homeland-security- to be worth $4 billion for what will engineering company with defense now Arotech Corp. (Nasdaq: ARTX) Systems, a 12-year Army weapons themed startups, opens at the former become the Stryker family of eight- contracts in Iraq, Afghanistan and is founded and becomes public under technology modernization program, building on 15 wheel combat vehicles. It is the first Venture Industries elsewhere, files for Chapter 7 its original name in 1992. Arotech, with Chicago-based Boeing Co. as Mile Road in Sterling Heights, then new major armored vehicle contract bankruptcy liquidation and closes its based in New York City for many years, lead systems integrator and General moves to a site north of 14 Mile in 2009 award since BAE Systems Inc.’s offices in Detroit. acquired First Ann Arbor Corp. or Dynamics and BAE splitting the $87 and into the current Velocity Bradley armored vehicle in the early FAAC Inc. in 2004 and relocated its billion Manned Ground Vehicles Collaboration Center over a year later. Ⅲ Tacom awards BAE a contract valued 1980s and represents a priority shift headquarters to Ann Arbor. program, to field a family of new tracked at up to $1.2 billion for engineering and from tracked to wheeled vehicles for a armored vehicles sometime after 2015. 2010 manufacturing development on the 1991 more agile force. Ⅲ 2006 The former industry incubator site Armored Multi-Purpose Vehicle, a Ⅲ Operation Desert Storm, Jan. 17-Feb. Ⅲ Adaptive Materials Inc.,a near 14 Mile, the former headquarters proposed replacement for the Army’s 28: The Persian Gulf War to liberate producer of portable fuel cells, is Ⅲ The Michigan Economic of Transpec Worldwide Inc., M113 personnel vehicles. The company is occupied Kuwait from Iraqi forces founded in Ann Arbor by CEO Michelle Development Corp. launches a becomes the Defense expected to divide the engineering and creates a minor uptick in wartime Corridor/Center for related work between its Sterling equipment purchases through the U.S. Collaboration and Synergy, a Heights unit and work sites in three Army Tank Automotive Command multitenant site for out-of-state other states. in Warren. Desert Storm also leads to defense contractors. — Chad Halcom

[LARRY PEPLIN] BAE Systems has maintained a metro Detroit presence since 1979. 20150511-NEWS--0022-NAT-CCI-CD_-- 5/8/2015 9:26 AM Page 1

22 CRAIN’S DETROIT BUSINESS // May 11, 2015 DEALS Invest Wisely & DETAILS Choose an Advisor Who Sees the Bigger Picture Submit news to [email protected] Submit news to [email protected] WORLD CLASS MONEY MANAGERS | TRANSPARENT FEES INDEPENDENT ACTIVE TAX LOSS HARVESTING | ADVANCED TAX PLANNING

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123Net Inc., Southfield, a telecommunications and Internet service provider, has acquired T2 Communications LLC, Holland, a #FSOJF,FOU +% $1" 1'4]+BTPO;JNNFSNBO .#" $-6 $"1].BSD4DIFDIUFS $-6]+PIO4UFJO .#" $'" telecommunications company. ® #SBE'FMENBO +% $-6]*MBOB-JTT]+FGG7JFEFS]"BSPO)PEBSJ $'1 ]+PSEBO4NJUI +% --.]1BVM4OJEFS Website: 123.net. $ISJT)BMF],FWJO#FBVDIBNQ]-BSSZ-FJC +%]#SJBO:PVOH +% $-5$]$MVOF8BMTI *** CONTRACTS Altair Engineering Inc., Troy, announced an original equipment manufacturing agreement with Cray Inc., Seattle, provider of super- Contact Schechter to learn more about how an Independent advisor can make a difference: WWW.SCHECHTERWEALTH.COM computing and high-performance Call 1.866.731.9500 or email [email protected] BIRMINGHAM, MI | NEW YORK, NY computing systems. PBS Profes- sional is now Cray’s workload man- Securities may be offered through NFP Advisor Services, LLC (NFPAS), Member FINRA/SIPC. Investment Advisory Services may be offered through NFPAS or Schechter Investment Advisors, LLC. Schechter Investment Advisors, LLC. is not affiliated with NFPAS. NFPAS does not provide legal or tax advice and is not a Certified Public Accounting firm. SIA is an SEC registered investment adviser; please consult the Firm’s Form ADV disclosure documents, available on the SEC’s Investment Adviser ager and job scheduler. Websites: Public Disclosure website. altair.com, cray.com.

Roncelli Inc., Sterling Heights, a construction services company, has been chosen by DTE Energy Co. to construct a wellness center on the sixth floor at the company’s downtown Detroit headquarters. The facility will be staffed by Henry THE MILLER LAW FIRM Ford Hospital. Websites: Changing the Odds in our Clients’ Favor roncelli-inc.com, dteenergy.com. EXPANSIONS U.S. Farathane Corp., Auburn Hills, supplier of plastic injection- molded components to automakers, will locate its newest manufacturing operation in Riverside, Mo. The company will hire 267 people over the next three years and invest $51.6 million. Website: usfarathane.com. NEW SERVICES Neil Rockind PC, Southfield, has launched the criminal defense law firm’s revamped website, created by SolutionsPal, West Bloomfield Township, at rockindlaw.com.

Ann Arbor Spark recently launched Spared-Ed, a new video series designed to provide critical information and education to business owners. The nonprofit organi- The Miller Law Firm is Recognized as the zation plans to release the new videos throughout 2015. Website: Leading Shareholder Rights Firm in Michigan annarborusa.org.

Q Shareholder and partnership disputes Q Corporate governance litigation Deals & Details guidelines. Email [email protected]. Q Minority oppression litigation Q Corporate control contests Use any Deals & Details item as a model for your release, and look for Q Q &reach oJ ½duciary duty Securities fraud and derivative claims the appropriate category. Without complete information, your item 950 West University Drive, Suite 300 will not run. Photos are welcome, but we cannot guarantee they will Rochester, Michigan 48307 248-841-2200 millerlawpc.com be used. 20150511-NEWS--0023-NAT-CCI-CD_-- 5/8/2015 9:27 AM Page 1

CRAIN’S DETROIT BUSINESS // May 11, 2015 23 ARCHITECTURE Emily McKinnon to principal, SPOTLIGHT eight years of nonprofit manage- SmithGroup JJR Inc., Ann Arbor, PEOPLE DENISE ASKER, executive ment experience. from associate civil engineer. Also director, Leadership Oakland She is a former consultant for to principal in Ann Arbor is Lauren her firm, Asker Consulting LLC, and Williams, from associate urban de- Denise Asker served in leadership roles for three signer. To principals in the Detroit ON THE MOVE has been global advertising agencies and a office are Laura Matter, continuing Send news items and photos to [email protected] named execu- local public relations firm. as learning practice manager; Tri- tive director of She holds a master’s degree in cia Beck, continuing as senior MANUFACTURING Jens Breitinger to business unit di- Leadership management from Walsh College manager; Michael Paul Krug, con- Andy Ridgway to president, IAV rector, transmission and driveline, Oakland. and a bachelor’s in public rela- tinuing as project manager; Region Americas, IAV Automotive from founder and CEO, Breitinger She will fill tions from Wayne State University. Stephen Lodge, continuing as di- Engineering Inc., Northville, from Innovative International Consult- the vacancy Asker lives in Oakland County rector of architecture; and Mark president, IAV Automotive Engi- ing, Johannesburg, South Africa; Asker created by with her family. Potter, continuing as senior proj- neering Inc. Also, Chris Hennessy to Kathleen Rafalko to human re- Chris Scharrer, “I am honored to lead this ect manager. vice president of engineering, from sources manager, from human re- who is slated to retire in June after renowned association,” Asker business unit director for vehicle sources coordinator; and Kim Cy- 10 years. said. “This role provides a won- Rick Erickson to architectural de- systems; Martin Richter to vice pres- bart to human resources director, Asker, 45, has been the execu- derful opportunity to collaborate partment manager, IBI Group Inc., ident of vehicle systems, from sen- from executive director of employ- tive director of the Auburn Hills with our region’s leaders.” Southfield, from project manager. ior vice president of electronic de- ee services, Glacier Hills Inc., Ann Chamber of Commerce and has Visit LeadershipOakland.com. Also, Dennis McKale to manager, me- velopment, IAV GmbH, Germany; Arbor. chanical engineering department, from manager of mechanical engineering, Norr LLC, Detroit. CONSTRUCTION Amy Patterson to client account manager, Aristeo Construction Co., Livonia, from director of business development, DeMaria Building Co. Inc., Patterson Novi.

FINANCE Tim Gretkierewiczto senior vice president and loan group manager, Bank of Ann Arbor, Ann Arbor, from president of Michigan market, Key- Bank, Ann Arbor. HEALTH CARE Bill Makela to senior project manager, operations, St. Joseph Mercy Liv- ingston, Howell, from project coordinator, planning, design and construction department, St. Mary Mercy Hospital, Livonia. INSURANCE Geoff Kotila to commercial risk executive, HUB International Ltd. Mid- west, Birmingham, from consultant SMI Capital Group LLC, Birming- ham. Grow my business, Laura Irwin to director of field marketing and underwriting not their commission. service and support, Amerisure Mutual Insurance Some businesses reach a certain point when they expect more than Co., Farmington just a loan.They expect their bank to be part of their growth strategy. Irwin Hills, from service carrier operations and field When it’s time, come to Comerica. And discover why marketing and underwriting pro- we’re the leading bank for business,* ranked among duction manager. Also, Tina McKen- the top 5% of U.S. banks with distinctive quality.** zie to director of service desk and operations, from manager, operations and service management. RAISE YOUR EXPECTATIONS.

People on the Move announcements are limited to

management positions. Email ® [email protected]. Include person’s name, new title, Business Wealth Management Personal company, city in which the person comerica.com will work, former title, former MEMBER FDIC. EQUAL OPPORTUNITY LENDER. company (if not promoted from *Based on commercial and industrial loans as a percentage of total assets. Data provided by Thomson Reuters Bank Insight, June 2014. **Greenwich Associates is a leading provider of global market within) and former city in which the intelligence and advisory services to the ﬁnancial services industry. For Middle Market, the Greenwich Excellence Awards are based on nearly 13,000 market research interviews with U.S. companies with sales revenues of $10-500 million, and honorees were recognized by their customers as providing superior quality of products, service and coverage. Among more than 750 banks evaluated, Comerica ranked within person worked. Photos are the top three percent of banks with “distinctive quality” and “performing at a differentiated level relative to peers.” For Small Business, the Greenwich Excellence Awards are based on more than 15,000 market welcome, but we cannot guarantee research interviews with U.S. companies with annual revenues of $1-10 million, and honorees were recognized by their customers as providing superior quality of products, service and coverage. Among more they will be used. than 750 banks evaluated, Comerica ranked within the top ﬁve percent of small business banks with “distinctive quality” and “performing at a differentiated level relative to peers.” CBP-5014 04/15 20150511-NEWS--0024-NAT-CCI-CD_-- 5/8/2015 10:02 AM Page 1

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

WEDNESDAY Crain’s2015 General & MAY 13 In-House Counsel Summit The 2015 Tigers CALENDAR . 11:30-1:35 p.m. De- troit Economic the Purchasers. 8 a.m. Detroit Re- p.m. Association for Women in day and 8 a.m.-2 p.m. Friday. Michi- Crain’s Fifth Annual General & Club. With David gional Chamber, Flagstar Bank. Communications, Detroit chapter. gan Women in Finance. 2015 annual In-House Counsel Summit will Dombrowski, pres- Businesses can network with pur- Keynote speaker is Denise Ilitch, conference includes speakers Cy feature keynote speaker John ident, CEO and chasers and learn the basics of pur- president, Ilitch Enterprises LLC. Wakeman,business consultant; Jen Dean, former counsel to Presi- general manager; chasing and procurement protocol. Award winners are Marilyn Trent, Guarino, CEO and co-owner, J.W. dent Richard Nixon. and Brad Ausmus, Included are Barton Malow Co., city Trent Creative; Emily Hay, Hay There Hulme Co.; and Erin Rohde, director of Dean’s most recent book – The manager, Detroit of Dearborn, DTE Energy Co., Henry Social Media; Keith Famie, Visional- global treasury operations, Ford Nixon Defense:What He Knew Tigers. MotorCity Ford College, Wayne County Airport ist Entertainment Productions. The Motor Co.The Plaza Ballroom at The and When He Knew It – is a cau- Casino Hotel, De- Authority. SME, Dearborn. $30 Community House, Birmingham. Henry and the Ford River Rouge tionary tale of mistakes that can Dombrowski troit. $45 DEC chamber members, $70 future $55 members, $65 nonmembers, Plant. $295 reception and confer- been avoided, much like the members, $55 members. Contact: Maggie Olden- $40 students. Contact: RoseAnn ence; $195 Thursday reception only. legal issues organizations grap- guests , $75 nonmembers. Ticket sales burg, (313) 596-0482; website: Nicolai, (866) 385-1784; email: Website: michiganwomeninfi- ple with daily. end at noon May 12. Contact: (313) detroitchamber.com. [email protected]; website: nance.org. Educational sessions will in- 963-8547; email: [email protected]; womcomdetroit.org. clude: Managing the ups and website: econclub.org. THURSDAY UPCOMING EVENTS downs of the business cycle, MAY 14 Leading the Way: Michigan A Meeting With Jim Keane. 11:30 What your CFO wants you to Small Business: Unlocked — Meet 63rd Annual Matrix Awards. 5:30 Women in Motion. 4-10 p.m. Thurs- a.m.-1:30 p.m. May 18. Detroit Eco- know, E-Discovery, Cybersecuri- ty. The event is 2-7:30 p.m. June 10 at the Westin Book Cadillac, 114 Washington Blvd., Detroit. Tickets are $150 in advance, $140 each for groups of 10 or more. Preregistration closes at 9 a.m. June 8. If available, walk-in regis- tration will be $170 per person. For information, contact Kacey Anderson, (313) 446-0300, It pays to tend [email protected] nomic Club. Keane, president and CEO of Steelcase Inc., will provide in- sights on the power of place and to your fl ock. how space helps attract talent and boosts engagement. Detroit Marriott Renaissance Center. $45 members, $55 guests of members, $75 nonmembers. Contact: (313) Over the past 5 years, employee 963-8547; email: [email protected]. out-of-pocket expenses have Inforum 53rd Annual Meeting. 11:30 risen nearly 40%.1 a.m.-1:30 p.m. May 20. Inforum Pro- fessional Women’s Alliance. With writer and public speaker Iyanla Van- zant. The Henry, Dearborn. Tickets: Afl ac can help protect your employees with $50 Inforum members, $75 guests (nonmembers), $700 table sponsors, cash to cover their bills in the event of a covered $25 students. Register: sickness or injury. And now employees’ claims inforummichigan.org. can get paid in a day with Afl ac’s One Day PaySM when they submit online.2 Family Owned Business Institute Summit. 8 a.m.-noon. May 21. Grand Small businesses like how easy it is to add Valley State University’s Family Owned Business Institute. The voluntary coverage to their benefi ts at no workshop includes working with direct cost. Especially when it is from Afl ac, family and nonfamily managers to the number one provider of worksite/voluntary find solutions unique to each busi- insurance sales for 13 consecutive years.3 Afl ac ness, defining core strengths and may even be a pre-tax deduction, so when we understanding how to leverage them in a more profitable way, say it pays to tend to your fl ock, it just might. learning the 10 types of innovation and how leveraging them gives companies a competitive edge, Call your local agent and visit turning ideas into action, and leav- afl ac.com/smallbiz ing with a plan to implement new concepts in a way that will inspire growth. $100 per person, $75 two or more. L. William Seidman Center, Pew Grand Rapids Campus. Con- tact: (616) 331-7278 or visit gvsu.edu/fobi.

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12014 Employer Health Benefi ts Survey, The Henry J. Kaiser Family Foundation, September 10, 2014. 2One Day PaySM is available for most properly documented, individual claims submitted online through Afl ac from the drop-down menu that will SmartClaim® by 3 PM ET. Afl ac SmartClaim® not available on the following: Short Term Disability (excluding Accident and Sickness Riders), Life, Vision, Dental, Medicare Supplement, Long Term Care/ appear. Fill out the submission form, Home Health Care, Afl ac Plus Rider and Group policies. Individual Company Statistic, 2015. 3Eastbridge Consulting Group, U.S. Worksite/Voluntary Sales Report. Carrier Results for 2002-2014. Avon, CT. Coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, coverage is underwritten by American Family Life Assurance Company of New York. then click “Submit event” at the bottom of the page. Z150001R Worldwide Headquarters | 1932 Wynnton Road | Columbus, GA 31999 3/15 More Calendar items can be found at crainsdetroit.com/events.

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CRAIN’S DETROIT BUSINESS // May 11, 2015 25 REVERIE,from Page 1: Waking up for customers

built-in lumbar and head tilting, a Reverie Perry said Reverie is among the built-in alarm and messaging func- big players in the adjustable bed tion, as well as mattresses. Headquarters: Bloomfield Hills market, including Carthage, Mo.- Reverie sells directly to con- Founder and CEO: Martin Rawls- based Leggett & Platt Inc., Natick, sumers from its website as well as to Meehan Mass.-based Customatic Adjustable stores such as Art Van Furniture Inc. Revenue: Just under $100 million Bedz and Santa Barbara, Calif.- at the Warren-based furniture retail- in 2014 based Ergomotion. er’s Pure Sleep stores. Within the $40 billion sleep indus- Reverie also sells an adjustable bed Employs: 150, 40 in Bloomfield Hills try, expected to reach $50 billion in called Performance by Reverie under four years, beds and mattresses make the Serta brand name as part of a li- turers such as Reverie have translat- up only $14.2 billion. In addition, it’s censing deal, Rawls-Meehan said. ed into increased sales for ad- only projected to reach $16 billion in Reverie’s adjustable frames range justable beds. For every mattress four years, Rawls-Meehan said. from $700 to $2,000, and sleep sys- Pure Sleep sells, 30 percent of those That’s because the larger indus- tems — adjustable beds with a mat- customers also buy an adjustable try growth drivers are pharmaceuti- tress — retail for $4,000 to $7,000, bed frame, Van Elslander said. cal sleep aids and medical devices, Rawls-Meehan said. “This is where the business is such as continuous positive airway Bloomfield Hills is home to going in the long term, and selling pressure, or CPAP, machines. Reverie’s headquarters and research products like Reverie’s is position- “People are becoming aware of and development lab. Its products ing us nicely,” he said. the importance of sleep to cogni- are manufactured in Buffalo, N.Y., Dave Perry, executive editor and tion, and that’s driving demand for and imported from Taiwan, Rawls- mattress reporter for the Greens- sleep aids and we (bed and mattress Meehan said. boro, N.C.-based industry maga- manufacturers) are losing market David Van Elslander, president of zine Furniture Today, said the ad- share in the industry,” Rawls-Mee- Art Van Pure Sleep, said integrating justable-bed category and its han said. Reverie’s strategy includes technology into the bedding indus- increasing technology are raising beefed-up advertising on radio and try is not a fad, it’s the future. sales for retailers such as Art Van. TV and in print but also integrating “My father realized in 2009 that “The cliché is that these products more technology. we needed to change our business are no longer for senior citizens; these Last year, Reverie introduced its model because people were realizing are not geriatric products,” Perry said. Elation four-speaker plus sub- sleep is as important as diet and ex- “According to our research, people are woofer surround-sound system, ercise to their overall heath,” Van Els- using beds more and more as a work- which can be packaged with its lander said. “Adjustable beds, along station or an entertainment center, product line as well as other frames. with more technology, are really tak- and the adjustable-bed market en- The system retails for $400. ing off. Where it used to be consid- courages that.” The company next year also plans ered a luxury item, it’s now viewed as The technology trend is causing to unveil several other technologies, key to getting a better night’s sleep.” Reverie to step up its R&D invest- including sleep tracking, smart- In a deal with Mebane, N.C.- ments, Rawls-Meehan said. phone integration and other systems based Kingsdown Inc., Art Van in “We’re going to continue to Rawls-Meehan declined to reveal. 2009 began outfitting its Pure Sleep spend more to achieve our goals,” “Sleep is critical, but people are stores with diagnostic machines to he said, although he declined to re- doing so much more than sleeping identify which mattress is best for veal the exact R&D spending figure. in the bedroom,” Rawls-Meehan each customer. “Clearly there is a demand for better said. “We’re evolving with them.” Ⅲ Van Elslander said the machines sleep, and the industry needs to Dustin Walsh: (313) 446-6042 and the technology from manufac- step up to take more market share.” Twitter: @dustinpwalsh

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26 CRAIN’S DETROIT BUSINESS // May 11, 2015 BANK,from Page 1: BOA building could score high, brokers say, but will the market comply?

foot). Both building sales included Troy is region’s 3rd-largest office market tier office tenants, he said. sticker price. In 2007, it became the parking decks. “You’re drawing a particular ten- first existing building in Michigan to In the suburbs, the 2.2 million- A lobby view at ant, like Dickinson Wright (PLLC), a receive Leadership in Energy and square-foot Southfield Town Center North Troy professional ten- Environmental Design, or LEED, sold to New York City-based 601W Corporate Park. ant who likes to gold-level designation from the U.S. Cos. for $177.5 million ($81 per The city’s 13.3 be in a building Green Building Council, the second- square foot), and the 237,000- million square like that because highest designation. square-foot Tri-Atria office building feet of office of the perception Steve Morris, a principal at Farm- in Farmington Hills sold to Detroit- space trails only it gives.” ington Hills-based Axis Advisors based Sterling Group for $20 million Southfield and Dickinson LLC, is more bullish on pricing. He ($84 per square foot). downtown Wright has about predicted the building, constructed Bank of America said that after Detroit. 68,000 square by Standard Federal Bank, would sell the expected sale-leaseback, it [KENNY CORBIN] Jim Berkemeier: feet in the build- for more than $70 million or at least plans to become more efficient with BOA building draws ing, making it $155 a square foot.The building’s its space in the building but will not At 13.3 million square feet, Troy is the third-largest office market in the region, a particular tenant the second- value in the marketplace has had reduce employment levels. according to data from Newmark Grubb Knight Frank, behind only largest tenant the same roller-coaster ride as other Data tracked by CoStar Group Southfield (17.2 million square feet) and greater downtown Detroit (14 million behind Bank of America. buildings in the region. Inc., a Washington, D.C.-based real square feet). “I’m assuming the investor is The financial crisis of 2008-09 estate information service, shows Troy had a 24.4 percent vacancy rate in the first quarter, the third-highest in the looking hard at the rent rolls in valu- cratered office building values. that only 2,500 square feet is avail- region, behind Pontiac (38.5 percent vacancy rate) and Dearborn (29.5 percent). ing the building from a purchase Buildings that had been worth $150 able in the six-story building, leav- price based on the return of the a square foot or more have sold for ing it 99.4 percent full. The asking rent,” Berkemeier said. “And when no more than $80 per square foot, rate is $24.50 a square foot. on the credit, length of term, lease Commercial Real Estate Advisors, vacancies come up, they are pretty he said. By comparison, the BOA “The property could fetch one of value and general conditions of the called the Troy BOA building one of easy to fill.” building cost $300 per square foot the highest sale numbers in the last B-of-A lease provided by the seller.” the “true” Class A buildings in Troy. or $135 million to build when it was “Taj Mahal” of office number of years within Troy and the Regardless of how much it sells for, “It’s in line with Columbia Center,” constructed, he said. buildings surrounding area,” said Matt Farrell, the building is still expected to attract he said, referring to the two-build- But Morris said that because of executive principal and partner at significant attention from both local ing, 507,000-square-foot office com- The Bank of America building’s the quality of construction — which Birmingham-based Core Partners and out-of-state investors. plex on West Big Beaver that last sold quality construction materials and includes marble directly from Italy, Associates LLC. “However, the sale Jim Berkemeier, vice president in in 2010 for $59 million. It has a “green building” status are other the building’s high occupancy rate value will be 100 percent predicated the Southfield office of Advocate strong track record of attracting top- reasons some brokers predict a big and strong rental rate — he predicts a higher current value. That’s because it would be a value pegged on the income it currently generates, not potential income. Other building features include an on-site cafeteria, sundry shop and conference center, plus an at- tached parking deck. The restrictions placed on employee behavior in the building after it was constructed in 1990, are details of local workplace lore. It was built for Standard Federal, which was then acquired by LaSalle Bank, which was then acquired by Bank of America. When it opened, employees couldn’t bring anything to eat or drink to their workspaces — including bottled water, lunch or cof- fee — because of fear of crumbs or stains. It had been dubbed the “Taj Mahal” or “Fort Federal” because of the rules and the big vision for the building by the late Thomas Rick- etts, the former president and CEO of Standard Federal. Subsequent bank executives worked to change that vision from a building that was part art museum-part bank office to something more modern. Diane Wagner, BOA senior vice president of media relations, said the bank’s sale and lease-back is part of a national trend at the com- For your mission-critical infrastructure, our world- pany. class data centers keep you secure, powered and “We’re shifting from owning the connected to multiple global carriers 24/7. Backed Troy building and serving as a land- by 2(n+1) redundancy that guarantees continuous lord for space the company doesn’t network uptime, and an array of outbound and use to selling it and leasing the inbound connection options, 123Net gives you space we need,” she said. The re- unrivalled speed and control over your network. configuring of employees in the building will be completed in the fourth quarter, Wagner said. For this story, Bank of America’s brokerage, CBRE Inc. declined to comment. The Southfield office of YOUR BACKBONE FOR BUSINESS CBRE is marketing the property at FIBER • COLOCATION • VOICE • WIRELESS 866.460.3503 123.NET 2600 W. Big Beaver. Jones Lang LaSalle is the property manager. Ⅲ Kirk Pinho: (313) 446-0412 Twitter: @kirkpinhoCDB 20150511-NEWS--0027-NAT-CCI-CD_-- 5/8/2015 6:07 PM Page 1

CRAIN’S DETROIT BUSINESS // May 11, 2015 27 SNYDER,from Page 1: Governor builds national profile in aftermath of Proposal 1 defeat

an effort to lure new business. lem-solver in Washington,” adding according to The AP, had a packed “I do not have plans to run for later that he didn’t see such a prob- schedule in New York late last week. president in 2016,” the statement lem-solver in the field. He met with site selectors who help said, adding that Snyder will focus on Snyder isn’t a viable presidential companies choose where to locate resolving “historic issues” at home. candidate for 2016 because the Re- and hosted a reception at Detroit One of those “historic issues” is the publican field is crowded with con- watch company Shinola’s flagship dramatic defeat of Proposal 1 on tenders who have better name store in New York City, AP reported. roads funding in Michigan. About 80 recognition and more money in Schostak could not be reached for percent of statewide voters in the their war chests, Fournier said. comment on this story. The resident May 5 ballot proposal rejected the To be sure, Snyder does have suc- agent on the nonprofit formed March complicated plan to raise money for cesses to promote for a future run 23 is Peter Ellsworth, a Lansing-based road work. or other high-profile post. attorney with Dickinson Wright PLLC. He helped craft Detroit’s grand In the immediate term, Snyder’s Plan B on roads bargain during the city’s bankrupt- main focus likely will be on roads. The morning after Proposal 1 was cy, a deal designed to lessen the He can recover defeated, Snyder told reporters he blow from cuts to retiree pensions politically, long- planned to work quickly with the that included $195 million from the term, from Pro- Legislature on an alternative, prefer- state and hundreds of millions [BLOOMBERG] posal 1’s rejec- ably one that does not involve asking more from foundations and the De- Gov. Rick Snyder speaks with a trader on the floor of the New YorkStock Exchange tion, Truscott voters to approve another ballot pro- troit Institute of Arts. on Friday. Snyder says his getting out of Michigan is good for Michigan. said, adding that posal. He said a delayed deal threat- “His big calling card is Detroit. De- it took Engler ens to postpone construction sched- troit is a hip, exciting, intriguing agenda out there,” Truscott said. schools, and whether he can raise multiple tries in ules as roads continue to crumble. brand across this country, even in But, he added, “I don’t think he his national profile. the 1990s to pass Snyder won’t be able to build the world,” Fournier said. “The De- would ever admit (it).” Raising Snyder’s profile is the John Truscott: Proposal A, name recognition nationally if he’s troit comeback story is something mission of a nonprofit entity led by Even Engler had to which restruc- Building a national profile stuck at home dealing with this un- that everybody is watching, and Snyder supporters, including for- try, try again tured property resolved road-funding plan, said that’s something that Snyder has A former executive with computer mer Michigan Republican Party taxes and fund- Ron Fournier, a columnist with the unique claim to.” company Gateway Inc., Snyder has a Chairman Bobby Schostak. The ing for K-12 schools. Washington-based National Journal. Even though he’s not a national background in business, not politics. group recently created a 501(c)(4) To succeed, Snyder will need to “He’s got to get this infrastructure household name, Snyder is hailed in But he has proven an ability to tackle nonprofit called Making Govern- pull House and Senate leaders aside thing straight- Republican circles for replacing the tough political problems, notably ment Accountable to fund Snyder’s to work through alternative propos- ened out,” Michigan Business Tax with a 6 per- Detroit’s bankruptcy, Fournier said. national trips. It’s not an official als and lobby for votes, Truscott Fournier said. cent corporate income tax and for “Snyder might be somebody that campaign fundraising arm but said. The Legislature won’t be able “That was a big signing right-to-work legislation in would make sense to have on a tick- helps pay for his travel. to raise the amount Proposal 1 blow to him.” December 2012, which prevents et,” a Republican from a blue state, The travel effort is “a trial bal- would have without either a tax hike Lawmakers labor unions from requiring workers Fournier said. “If a Republican wins, loon,” Ballenger said. “They’re going or significant budget cuts elsewhere put the roads to pay dues as a condition of em- he’d certainly be somebody who’d to try and help him do what he in state government. deal to Michigan ployment. be mentioned as, and even on the wants to do for as long as he feels it’s “When you have an accomplish- voters after failing More than 12,000 union members short list for, a Cabinet post.” something that looks acceptable.” ment after a failure, the failure pret- Ron Fournier: Fix to come up with and supporters protested the politi- That depends, he said, on two big The national circuit includes a ty quickly gets wiped away,” Tr- of infrastructure is a a funding plan on cally divisive right-to-work legisla- “ifs” — whether Snyder can contin- range of influencers; Snyder spoke uscott said. “The measure of a good must for Snyder their own. Pro- tion at the Capitol. But signing the ue momentum on rebuilding April 27 on a panel discussion on deal is not everybody’s happy.” Ⅲ posal 1 would law earned Snyder stripes among Michigan and Detroit, including re- Detroit’s bankruptcy at the Milken Lindsay VanHulle: (517) 657-2204 have raised more than $1.2 billion to more partisan Republicans. forming the city’s troubled public Institute’s Global Conference, and, Twitter: @LindsayVanHulle fix the state’s decaying roads and Michigan’s economy also has re- bridges by raising the sales tax from 6 bounded since the recession. Un- percent to 7 percent and removing it employment, once the highest in from fuel sales, while also raising fuel the nation at more than 15 percent, taxes. fell to 5.6 percent in March, state But it ran into trouble with voters data show. And, Snyder says, Michi- in part because of its complexity. gan has added close to 400,000 pri- Besides roads, it also would have vate jobs as the state’s economy raised money for public schools, moves away from heavy depend- local governments and an income ence on auto manufacturing. tax credit for low-wage workers. Political ambitions Proposal 1 failed by the largest margin of any constitutional Bill Ballenger, a former state law- amendment since Michigan’s con- maker and founder of Lansing- stitution was adopted in 1963, The based political newsletter Inside Associated Press reported. Michigan Politics, said if Snyder had joined the fray for the 2016 presiden- A Cabinet post? tial bid, he would have struggled to Exactly what Snyder does now to convince a national electorate of his deliver on that promise of a Plan B problem-solving prowess, he said. for roads may be one of the deciding “The real question is: Has he really moments of his governorship, and ‘solved’ Michigan’s problems?” Bal- his long-term political prospects, lenger asked. “I think many people some observers say. would say there are a number of There is speculation among ana- things that he hasn’t solved yet. lysts and political writers that a Cabi- Maybe he can solve them by the time net post may be Snyder’s ultimate he leaves office in 2018. Maybe not.” endgame. Snyder, however, will nei- Snyder’s eventual prospects as a ther confirm nor deny he wants one. Cabinet member or other Washing- He said only that he will stay on the ton post could depend on who is national speaking circuit, and that elected president, said John Tr- he’s proud of Michigan’s successes. uscott, president of Lansing-based “I will continue to tell Michigan’s political consulting firm Truscott comeback story nationally because Rossman and an ex-aide to former our reinvention should not be Gov. John Engler. And what he’s unique to just our state,” he said. doing now may well raise his profile And in terms of the field of presi- in Washington, or serve as a plat- dential candidates, Snyder told The form for a post-government career. Wall Street Journal last week that he “I wouldn’t doubt that some peo- was “watching who is in the candi- ple get in the race just to be a player date race, because we need a prob- so they get mentioned, they get their 20150511-NEWS--0028,0029-NAT-CCI-CD_-- 5/8/2015 5:24 PM Page 1

28 CRAIN’S DETROIT BUSINESS // May 11, 2015 HORSES,from Page 3: Racing industry looks to track down profits during recent rough ride to the table. There are a variety of Downfall of the downs Adkins said he has talked with Michigan Economic Development agendas in play. Everyone’s self-in- Hazel Park Raceway and Northville the Corp. terest is at odds.” Downs are Michigan’s only about getting grant money to “There hasn’t been any interest in remaining horse tracks. Here are build out the facility, but nothing cooperating on legislative (action) those that have closed: has happened yet. since talks broke down about 18 “I would love to have that build- months ago.” 1998: Ladbroke Detroit Race ing turned into a brewpub, a bar A message seeking comment was Course, Livonia and restaurant. It just needs a new left for the primary thoroughbred or- 2005: Saginaw Harness Raceway flair,” he said. “Our efforts are to put ganization, the Howell-based Michi- the best product out there with the 2007: Great Lakes Downs, near gan Horsemen’s Benevolent and Pro- limited funds we have.” Muskegon tective Association. Adkins predicts a bleak future The latest hope is account wager- 2008: Jackson Harness Raceway without significant new gambling ing, which is online or telephone- 2010: Pinnacle Race Course, near revenue. based horse betting through a state- Detroit Metropolitan Airport “Racing in Michigan is still in licensed agent. trouble,” he said. “We don’t have 2014: Sports Creek Raceway, near A joint meeting of the House and [PINNACLE RACE COURSE] enough purse dollars to continue. Senate appropriations, agriculture Pinnacle Race Course ran thoroughbred contests for three years before closing. Flint We’re struggling. We’re down to two and rural development subcommit- 2014: Mt. Pleasant Meadows tracks. All the states around us, rac- tees at Hazel Park Raceway on May 4 ing is subsidized by gaming.” heard testimony from the state’s As wagers fall,horse owners, for Northville Downs, which the One example: Thistledown Racino horse industry in favor of account track ended up not running. near Cleveland — co-owned by Dan wagering. This year, Hazel Park has 40 thor- Gilbert’s Rock Gaming LLC — this year Sample legislation has been cir- oughbred racing days — Fridays will have an average daily purse of culated, but no bills have been for- tracks seek help from state and Saturdays from May 1 to Sept. $130,000, Adkins said. It has nearly mally introduced seeking to author- 12. Hazel Park dropped harness rac- 1,300 video lottery terminals — an- ize online and telephone account The horse racing industry sta- national database of industry sta- ing entirely. other term for slot machines — that wagering. There is no timeline for tistics show why the tracks and tistics. The first year of thoroughbred generate additional revenue. any bills. horse owners want help from Horse breeding data show a races there generated $2.7 million, By contrast, Hazel Park offers Lansing: The financial and breed- precipitous decline in Michigan. state data show. A limited harness about $70,000 in daily purse money, How it works ing data paints a bleak picture for In 1992, Michigan’s annual foal racing run generated an additional Adkins said. Account wagering would open horse racing in Michigan. crop was 518 horses, according to half million dollars, but simulcast More lucrative purses elsewhere horse race gambling to a much The amount of money wa- the earliest data available from The betting fell to $43 million in 2014 mean horse owners travel to other wider potential audience. gered at Michigan horse tracks Jockey Club. That number fell to 44 from $57 million in 2013. states. “If you’re a horseman, you’re How it works is that bets are on live racing has fallen 65 per- in 2013, the most recent available Thoroughbred races attracted going to go elsewhere,” Adkins said. made on horse races from money cent in the past seven years, to data. That’s a 91.5 percent rate of more people who spent money on As Michigan’s other horse tracks placed in an account, over the $90.2 million last year from decline. dinner, snacks and booze and other have closed, the purses have shrunk phone or online, through a service $260.9 million in 2007, according The number of Michigan mares ancillary revenue at the track. because the money from the tracks licensed by the state. to state data. bred last year was 94. By contrast, Adkins said Hazel Park intends to is pooled. Account wagering remains illegal The most money wagered at it was 714 in 1993. The number of ask the state for permission to re- When Sports Creek Raceway near in Michigan but is legal in other Michigan tracks on both live and Michigan stallions breeding mir- duce the number of thoroughbred Flint closed last year, it sapped 26 states. One of the major account wa- simulcast races was a combined rors a similar decline, from 134 in races to eight a day from the current percent of the purse, Adkins said. gering services is Twin Spires, owned $474 million in 1997, which was a 1993 to 17 last year. nine, which would increase the per- Hazel Park’s owners have tried to by iconic Churchill Downs in Ken- year after the state legalized simul- Perhaps the poster child of race purse. make the track attractive over the tucky. cast betting at tracks. Michigan’s horse racing woes is The track employs 140 for live years by adding a restaurant and Stommen said industry esti- The peak of pure live-race bet- Pinnacle Race Course. racing days — down from 600 at the freshening up facilities. It has relative- mates place illegal online horse race ting was $443.1 million in 1989. Banker Jerry Campbell led an in- peak of racing’s popularity many ly inexpensive food and alcohol com- wagering by Michigan residents at That was before the rise of the In- vestment group that spent $35 mil- years ago. pared with ballparks and theaters. $50 million to $150 million annually ternet, the expansion of the state lion to open what was intended to Hazel Park tries to carve out rev- “We make it a destination, an out- — money that could benefit the lottery and the legalization of be a $142 million thoroughbred enue where it can, and it built a ing. It becomes a night out,” Adkins state’s track industry and Michigan Michigan’s casino industry. track on 320 acres at Pennsylvania 50,000-square-foot building behind said. “The problem isn’t getting peo- itself via taxes. Nationally, combined live and and Vining roads, a mile southwest the grandstand for $12 million in ple there. It’s getting people to Horse and greyhound racing are off-track wagering on thorough- of Detroit Metropolitan Airport. 2004 in anticipation of slot ma- wager.” exempt from federal gambling laws. bred racing fell to $10.5 billion last Pinnacle, modeled after chines — which the Legislature ap- Hazel Park’s owner gets online wa- Even if all sides of Michigan’s year. Its peak was $15.1 billion in Churchill Downs, lasted three years proved but then-Gov. Jennifer gering revenue from its Florida and horse racing industry reach an ac- 2003, according to The Jockey Club, and was only partially complete Granholm vetoed. The same meas- West Virginia facilities. Bettors in cord on online betting, Stommen a New York City-based breed reg- before it succumbed to both the re- ure also legalized online wagering. those states can use the predicts that the casino industry istry for thoroughbred horses in cession and the decline in horse The building has never been TrackInfo.com system from Lien and the current account wagering the U.S., Canada and Puerto Rico. racing interest. Today, the track is used. Talks to bring in a brewpub Games Racing LLC for online wager- companies in other states would The data are collected by Lexing- abandoned and overgrown. restaurant fell apart last year, Adkins ing, which is licensed by the North spend heavily on lobbying to stop it. ton, Ky.-based Equibase Co. LLC, a — Bill Shea said, so the track is considering Dakota Racing Commission. “Depending on what the legisla- building its own. It may hire a brew- tion looks like, we might see more master next year. See Next Page $10,000 suits in Lansing than we’ve plemented its iLottery system, which ing last June cut the 2014 financial seen in a long time,” he said. “Even allows players to buy instant tickets loss to $150,000, said Dan Adkins, if track operators and horsemen and numbers of drawing games vice president of the Southfield- agree on what’s best, there’s still from their mobile devices or com- based real estate developer Hartman going to be a fight.” puters — a development not lost on and Tyner Inc., whose holdings in- As recently at 2013, Snyder ve- the horse racing industry. clude Hazel Park Raceway along toed legislation that would have al- “It’s literally the same thing,” with casino/greyhound track opera- lowed tracks to use electronic ter- Stommen said. tions in Florida and West Virginia. minals that allowed users to wager Aside from the state-sponsored “It was a good move, we’re very on previously run races for which lottery and pari-mutuel horse rac- happy with it,” Adkins said of adding they were presented only certain ing, the only gambling authorized thoroughbreds. “We just need to find data, something known as instant under state law includes bingo, char- a way to generate more revenue.” racing. ity “millionaire parties” and casino The five-eighths-mile track, at Snyder said such gambling gambling operated by individuals li- the southwest corner of 10 Mile and would be unconstitutional because censed under the Michigan Gaming Dequindre roads, halted thorough- of Michigan’s 2004 law — a measure Control and Revenue Act. bred racing after the 1984 season, financed by the casino industry — converting in 1985 to full-time har- Hazel Park that mandates local and statewide ness racing. votes on certain types of new gam- The Hazel Park track, which The Michigan Gaming Control bling. The tracks disagreed, but the opened in 1949, had been losing $1 Board approved 38 thoroughbred [JOHN SOBCZAK] issue died with the veto. million annually since 2004. But the racing days in January 2014 for Hazel Park Raceway has been losing money annually since 2004, but the reintro- Last year, the Michigan Lottery im- reintroduction of thoroughbred rac- Hazel Park along with a shorter slate duction of thoroughbred racing has helped the bottom line of late. 20150511-NEWS--0028,0029-NAT-CCI-CD_-- 5/8/2015 5:24 PM Page 2

CRAIN’S DETROIT BUSINESS // May 11, 2015 29 From Previous Page CRAIN’S Northville Downs DETROIT BUSINESS Northville Downs, which can www.crainsdetroit.com trace its roots to 1902, got approval Editor-in-Chief Keith E. Crain Group Publisher Mary Kramer, (313) 446-0399 last year for a short thoroughbred or [email protected] season but opted not to do it. Associate Publisher Marla Wise, (313) 446-6032 or [email protected] “That just got muddied up,” said Executive Editor Cindy Goodaker, (313) 446-0460 Mike Carlo, operations manager or [email protected] Managing Editor Jennette Smith, (313) 446-1622 and co-owner of or [email protected] Northville Director, Digital Strategy Nancy Hanus, (313) 446- 1621 or [email protected] Downs. “We’re Managing Editor/Custom and Special Projects back to just har- Daniel Duggan, (313) 446-0414 or [email protected] ness racing. So Senior Editor/Design Bob Allen, (313) 446-0344 far, we’re having or [email protected] Senior Editor Gary Piatek, (313) 446-0357 a pretty good or [email protected] season. Derby Web Editor Kristin Bull, (313) 446-1608 or [email protected] Day was just Research and Data EditorSonya Hill,(313) 446-0402 Mike Carlo: “A monstrous.” or [email protected] Web Producer Norman Witte III, (313) 446-6059 pretty good season” The standard- or [email protected] at Northville Downs bred harness [PHOTOS BY ANTHONY BARCHOCK] Editorial Support (313) 446-0419; YahNica Craw- As harness racing goes on outdoors (above) at Northville Downs, monitors and machines stand ready for bettors (below) at ford, (313) 446-0329 horse race busi- Newsroom (313) 446-0329, FAX (313) 446-1687 , ness is different from than for thor- the track,which can trace its roots to 1902. TIP LINE (313) 446-6766 oughbreds, he said. REPORTERS “We run primarily the same style Carlo said. Jay Greene, senior reporter Covers health care, in- of business, but the cost is a little “Hopefully, being a small busi- surance, energy, utilities and the environment. (313) 446-0325 or [email protected] different,” Carlo said. “Standard- ness that’s been here since 1944, Amy Haimerl, entrepreneurship editor Covers entrepreneurship and city of Detroit. (313) 446- breds can race weekly. Thorough- some of the Michigan history and 0416 or [email protected] breds run every three to four weeks. agriculture that horse racing sup- Chad Halcom Covers litigation and the defense industry. (313) 446-6796 or [email protected] “The opportunity for income, ports carries some weight beyond Tom Henderson Covers banking, finance, tech- when you own a horse, only hap- the dollars and cents that lobbying nology and biotechnology. (313) 446-0337 or [email protected] pens every three to four weeks. efforts can do in Lansing.” Kirk Pinho Covers real estate, higher education, Those guys get nervous really quick The track, which has live races on Oakland and Macomb counties. (313) 446-0412 or [email protected] when they don’t win. With harness Wednesday and Thursday nights, has Bill Shea, enterprise editor Covers media, advertising and marketing, the business of racing, owners get more chances. a staff of 35 on race days, Carlo said. sports, and transportation. Our horsemen don’t face the same Northville Downs has made no (313) 446-1626 or [email protected] Lindsay VanHulle, Lansing reporter. (517) 657- crisis when they don’t win this week.” capital improvements because the 2204 or [email protected] Thoroughbred horses at Hazel money isn’t there, Carlo said. His Dustin Walsh Covers the business of law, auto suppliers, manufacturing and steel. (313) Park may have just six to seven dream is to rebuild the track from 446-6042 or [email protected] chances to make money during the the ground up, something he esti- Sherri Welch, senior reporter Covers nonprofits, services, retail and hospitality. (313) season, Carlo said, while Northville mates would cost “tens of millions” 446-1694 or [email protected] Downs’ horses could have 20 op- of dollars. It was last remodeled in ADVERTISING portunities to win. 1970. Sales Inquiries (313) 446-6032; FAX (313) 393-0997 “Purses are less, and there are “It’s such a slim margin at this Sales Manager Tammy Rokowski better opportunities outstate, but point just to keep your head above Senior Account Executive Matthew J. Langan Advertising Sales Christine Galasso, Catherine it’s not as bad for harness horse- water,” he said. Grace, Joe Miller, Sarah Stachowicz men,” Carlo said. The track could be sold and the Classified Sales Manager Angela Schutte, (313) 446-6051 Northville Downs is profitable, land used for houses or other devel- Classified Sales Lynn Calcaterra, (313) 446-6086 but by a tiny margin, Carlo said. opment. Northville Downs gets a Audience Development Director Eric Cedo “Right now, we just did our first- handful of offers every year from de- Events Manager Kacey Anderson Creative Services Director Pierrette Dagg quarter review, and we’re in the black, velopers interested in buying some or Senior Art Director Sylvia Kolaski but just barely,” Carlo said, without all of the track’s 49 acres, Carlo said. Marketing Coordinator Ariel Black disclosing specific financials. So far, no one has offered enough. Special Projects Coordinator Keenan Covington Sales Support Suzanne Janik, YahNica Crawford He did say the track’s annual op- “We entertain all options,” Carlo Editorial Assistant Nancy Powers erating budget is about $5 million. said. “If they have the right number, Production Manager Wendy Kobylarz State data show live wagering fell everything is for sale. I’ve had multi- Production Supervisor Andrew Spanos to $465,129 at Northville Downs last ple offers over the years.” CUSTOMER SERVICE year from $1.4 million the year Carlo declined to say what the Main Number: Call (877) 824-9374 or [email protected] prior. Simulcast wagering in 2014 right offer would be. Subscriptions $59 one year, $98 two years. Out of dropped to $31 million from $47 The Carlo family owns some of state, $79 one year, $138 for two years. Outside U.S.A., add $48 per year to out-of-state rate for sur- million in 2013. the track’s acreage, and an invest- face mail. Call (313) 446-0450 or (877) 824-9374. Northville Driving Single Copies (877) 824-9374 Michigan’s tracks lost customers ment group called Reprints (212) 210-0750; or Lauren Melesio at to the Detroit and Indian casinos. Club Corp. owns the rest. The Carlos [email protected] To find a date a story was published (313) 446- “They’ve taken 60 percent of my lects in profit. see that potential in Michigan if are minority shareholders in that 0406 or e-mail [email protected] business. I’ve been able to maintain Northville Downs backs the ac- we’re given the right tools to make it entity, he said. Crain’s Detroit Business is published by a little profitability, but not much,” count wagering push. happen. I’d love to have slot ma- The driving club was formed in Crain Communications Inc. Chairman Keith E. Crain Carlo told Crain’s in a 2012 inter- “We support every effort to find chines, but I know that’s not a realis- 1907 to manage land in Northville President Rance Crain view, noting that the track pays new revenue streams for horse rac- tic option in Michigan.” that had been turned into a rudi- Treasurer Mary Kay Crain Executive Vice President/Operations more in taxes to the city than it col- ing in Michigan,” Carlo said. “We For tracks without significant non- mentary fairgrounds horse track in William A. Morrow racing revenue sources such as slot 1902. Michigan didn’t create a formal Executive Vice President/Director of Strategic Operations Chris Crain INDEX TO COMPANIES machines, marketing gimmicks such pari-mutuel harness racing law until Executive Vice President/Director of Corporate These companies have significant mention in this week’s Crain’s Detroit Business: as dollar beer nights and similar in- 1933, and Northville Downs became Operations KC Crain centives are not enough, he said. the entity it is today in 1944. Vice President/Production & Manufacturing Advocate Commercial Real Estate Advisors .. 26 Hartman and Tyner ...... 28 Dave Kamis Altair Engineering ...... 19 Hazel Park Raceway ...... 3 “There is no marketing trick that The track business itself leases Chief Financial Officer Thomas Stevens Art Van ...... 25 Lear ...... 19 racetracks have figured out, or we’d all the land from the Northville Driving Chief Information Office Anthony DiPonio Autoliv...... 19 MeritHall Staffing ...... 11 G.D. Crain Jr. Founder (1885-1973) Bagger Dave’s Burger Tavern ...... 11 MICHauto ...... 15 be doing it,” Carlo said. “Nobody has Club on an annual basis, Carlo said, Mrs. G.D. Crain Jr. Chairman (1911-1996) BarFly Ventures ...... 12 Michigan Department of Transportation .. 15 figured out that magical formula.” and any sale would require both the Editorial & Business Offices Belfor Holdings ...... 19 Michigan Economic Growth Authority...... 7 Like Stommen, he predicts bitter club and family to jointly sell. 1155 Gratiot Ave., Detroit MI 48207-2732; 6 15 (313) 446-6000 Belle Michigan Fund ...... Michigan Environmental Council ...... Cable address: TWX 248-221-5122 AUTNEW DET Buffalo Wild Wings ...... 11 Michigan Land Use Institute ...... 15 combat over any effort to help horse Northville’s online tax records CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is Build Institute ...... 6 Michigan Manufacturers Association ...... 7 gambling in Michigan. show that the Northville Driving published weekly, except for a special issue the Chrysler Group ...... 19 Michigan Women’s Foundation ...... 4 “The casinos have a huge lobby- Club was the city’s largest taxpayer third week of October, and no issue the fourth CWD Real Estate Development ...... 18 MSX International ...... 19 week of December by Crain Communications Inc. Diversified Restaurant Holdings ...... 11 Northville Downs ...... 3 ing effort in Lansing we’ll never last year. The state equalized value at 1155 Gratiot Ave., Detroit MI 48207-2732. Peri- Domino’s Pizza ...... 19 Quicken Loans ...... 10 overcome because we’ll never have of the track, at Center Street and odicals postage paid at Detroit, MI and additional Dow Chemical ...... 19 Reverie ...... 1 mailing offices. POSTMASTER: Send address the funds to do so,” Carlo said. “It’s Seven Mile Road, is listed at $10.5 changes to CRAIN’S DETROIT BUSINESS, Circula- Ecotelligent Homes ...... 14 Riviera Tool ...... 15 tion Department, P.O. Box 07925, Detroit, MI EOS Worldwide ...... 12, 14 State Bar of Michigan ...... 3 the same with tribal gaming.” million, and its 2014 summer tax 48207-9732. GST # 136760444. Printed in U.S.A. Federal-Mogul ...... 19 TI Automotive ...... 19 Appealing to the industry’s agri- bill was $245,928. Ⅲ Entire contents copyright 2015 by Crain Commu- General Motors ...... 19 University of Michigan ...... 6 nications Inc. All rights reserved. Reproduction or GR Forward ...... 18 Walker-Miller Energy Services ...... 4 culture roots and long history are Bill Shea: (313) 446-1626 use of editorial content in any manner without Great Lakes Central Railroad ...... 16 Ziebart International ...... 19 tactics that could sway legislators, Twitter: @Bill_Shea19 permission is strictly prohibited. 20150511-NEWS--0030-NAT-CCI-CD_-- 5/8/2015 5:50 PM Page 1

30 CRAIN’S DETROIT BUSINESS // May 11, 2015 WEEKON THE WEB/MAY 2-8 RUMBLINGS RTA to announce its master plan Detroit Digits A numbers-focused look at the Tri-Atria building sale a for mass transit on Tuesday week’s headlines: $35 million good sign for office market he Regional Transit Au- News Co. closed April 17. The listing The investment that Memphis, thority of Southeast price was $1.75 million. Tenn.-based FedEx Corp. plans nother sign of metro De- us, and we can’t afford that.” T Michigan, metro Detroit’s Bloomfield Township-based to make to redevelop the former troit’s improving office Panelists have not yet been an- regional transit authority, will un- contractor Fresh Co. Home Inc., Royal Detroit Artillery Armory site Amarket came last week nounced, but Davidoff said confer- veil the initial process of develop- Oak-based clothing company in Oak Park. FedEx will use the site when it became known that the De- ence organizers are working to en- ing a regional master plan to cre- Lawrence Hunt and Benton Harbor- as a distribution center. troit-based Sterling Group pur- sure that the panel is diverse and ate a public mass transit system based Big Head Farm Inc. were chased the Tri-Atria building on authoritative. for Wayne, Oakland, Macomb and awarded $10,000 as regional win- Northwestern Highway in Farming- For conference details, see Washtenaw counties in a May 12 ners of the Comcast“Innovations 1:10.3162 ton Hills for $20 million. detroitchamber.org/mackinac. news conference. Details have not for Entrepreneurs” program, and The lap record for the Chevrolet It is the second-largest sale in been disclosed. are in the running for one of six na- Detroit Belle Isle Grand Prix, terms of price for a single office tional grand prizes. set in 2012, that is expected to be building in the five-county metro ON THE MOVE Oakland Integrated Healthcare broken at the event this month. region this year, behind only Dan Network in Pontiac ($704,167), Between track improvements and Gilbert’s purchase of One Detroit Automation Alley promoted Wayne County Healthy Communities a new IndyCar Series chassis, Center in downtown Detroit in Tom Kelly to COO, a new position Health Center in Detroit ($691,667) speeds are expected to rise. March for $100 million, based on a at the Troy-based nonprofit tech- and Advantage Health Centers in review of 2015 sales listed by CoStar nology business association. Kelly Detroit ($483,333) are among 4-to-1 Group Inc. joined Automation Alley in 2014 eight health centers in Michigan The ratio by which Proposal 1, The 237,000-square-foot Class A and launched its 7Cs accelerator that have received a total of $5.1 the ballot measure to increase building, at 32255 Northwestern program, which provides seed million in federal funding this fis- road funding, was defeated in a between 13 Mile and 14 Mile roads, funding to manufacturing start- cal year to expand access to an es- public vote last week. Of the 1.76 changed hands in late February, ac- ups. timated 28,000 low-income and million Michigan voters, 1.4 million cording to CoStar. Rose Ramirez, M.D., a family uninsured patients. voted “no.” The local office of Transwestern physician from Ann Arbor-based Huron River 3 percent was broker for the seller, Chicago Grand Rapids, Ventures, an early-stage venture- private equity firm Pearlmark Real [PALACE SPORTS & ENTERTAINMENT] The percentage of its global has been for- capital firm founded in 2010, has Estate Partners LLC. The building workforce that Dow Chemical mally installed finished raising a second fund, was developed in 1986. Pistons fans are ballers Co. plans to cut as it prepares to as president of the $5 million Opportunity Fund. According to a marketing break off a portion of its chlorine and buyers despite losses the Michigan The fund will invest in later-stage brochure, the building is 86 percent business. That translates into a State Medical funding rounds for companies leased, with Millennium Medical The Detroit Pistons struggled on reduction of up to 1,750 employees. Society. She that received support from the Group (92,000 square feet) as the the court this season, but finished Ramirez succeeds James firm’s $11 million Huron River $9.4 billion largest tenant. with their best (losing) record since Grant National Basketball , M.D., Ventures I fund. The value of tax credits the state The average rent is $19.50 a last making the Beau- Association chair of anesthesiology at remains on the hook for from the square foot per year, according to playoffs in 2008-09. mont Hospital in Royal Oak. OTHER NEWS now-defunct Michigan CoStar. Still, fans responded with opti- Economic Growth Authority Sterling Group had no broker in mism — and with their wallets. At- Michigan Women’s Foun- The incentive program. Last week, the the sale. It is now property manager tendance improved a bit as did re- COMPANY NEWS dation received a $100,000 dona- Michigan House passed two bills for the building, while Transwest- tail sales. Especially of basketballs. Superior Industries Interna- Moko tion from the Virginia-based that would prevent new tax credit ern will continue leasing office Pistons fans bought 11,500 bas- tional Inc. Door Foundation , an aluminum wheel , which puts the agreements for businesses. space. ketballs of all varieties this season manufacturer led by former Vis- campaign to process 11,000 during the team’s 41 games at the teon CEO Don Stebbins, is relocat- untested rape kits in Detroit over Race a topic of Mackinac Palace of Auburn Hills. That’s 3,000 ing its global headquarters to its first $1 million mark. The do- ter of JDRF to help fund efforts to conference panel more than the season prior, said Southfield from Van Nuys, Calif. nation was the largest of a $10 find a cure for Type 1 diabetes. Terry Adam, the Pistons’ director of The relocation is expected to cre- million fundraising effort that The gift is the latest from the cou- This year’s Mackinac Policy Con- merchandising. ate 75 new jobs along with a $75 launched in January to help ple who have supported the or- ference will close with a panel dis- Adam attributed the ball sales million investment, the Michigan process the kits, found unopened ganization (formerly known as cussion on what organizers hope is growth to boosting the number of Economic Development Corp. said. in a Detroit Police Department the Juvenile Diabetes Research the start of a broader national con- styles, including a glow-in-the-dark The Michigan Strategic Fund storage unit in 2009, and support Foundation) since 1997. versation about race and class in ball. awarded Superior a $900,000 per- the Enough SAID (Sexual Assault in The Horizon League men’s Michigan — and beyond — and is Overall, retail sales transactions formance-based grant. Detroit) coalition. basketball tournament is coming prompted by the civil unrest in Fer- were up 22 percent and merchan- Livonia-based Schostak Bros. Oakland University is explor- to Detroit. The nine-school Divi- guson, Mo., and Baltimore. dise revenue increased 13 percent & Co. has begun a $2 million proj- ing potential future uses for a sion I conference, which includes Organizers of this year’s confer- over 2013-14, the team said. It did- ect to redevelop a former Home campus residence that the school Oakland University and the Univer- ence, set for May 27-29 on Mack- n’t disclose dollar amounts, but Depot in Redford Township for maintains for its presidents, AP sity of Detroit Mercy, will change inac Island, say they don’t expect to some back-of-the-envelope math light industrial use. Work on the reported. According to The Oak- its postseason format to shift resolve the tensions that have led to suggests nearly $800,000 in new re- 145,728-square-foot Inkster Road land Press, new concepts for Sun- games beginning in 2016 to Joe riots and protests elsewhere after tail revenue. store is to be complete by July. set Terrace include a development Louis Arena for two seasons, then the death of black men while in po- For the full story on the Pistons’ Livonia-based TRW Automo- and alumni center as well as a to the new Detroit Red Wings lice custody. merchandise sales, visit tive Holdings Corp. received ap- museum named in honor of John arena expected to open in 2017. But at least talking about the un- crainsdetroit.com. proval from the Federal Trade Dodge, co-founder of Dodge Bros. Detroit-based advertising derlying racial and economic ten- Commission to be acquired by Motor Cars and the first husband agency Lowe Campbell Ewald is sions that have simmered and BITS AND PIECES Germany’s ZF Friedrichshafen AG of Matilda Dodge Wilson, the back to being just Campbell Ewald. erupted in cities around the coun- for $12.4 billion. The deal, an- school benefactor for whom the The name change after less than try is important, said Mark Davidoff, America’s largest Thanksgiving nounced last year, is expected to house was built in 1974. two years is a byproduct of the Michigan managing partner of De- race will have a new sponsor this close later this month and would Zip lines and a new Tuskegee agency’s parent company, New loitte LLP and this year’s conference year as Strategic Staffing Solutions create the second-largest auto Airmen National Historical Muse- York City-based advertising hold- chairman. Inc. has agreed to a three-year deal supplier in the world, according um air show are among the addi- ing company Interpublic Group of Ferguson and Baltimore — to support what will now be the to data from Crain’s sibling publi- tions to the 2015 GM River Days Cos., reorganizing some of its which generated headlines after Strategic Staffing Solutions Turkey cation Automotive News. presented by Soaring Eagle Casino agencies Friday. Boston-based protests and riots spurred by the Trot presented by The Parade Co. The home of RR Donnelley & & Resort, the June 19-21 festival Mullen and London-based Lowe deaths of Michael Brown and Fred- The Turkey Trot is the umbrella Sons Co.’s office in downtown De- organized by the Detroit River- and Partners Worldwide have die Gray, respectively — parallel name for three Thanksgiving troit’s financial district sold for an Front Conservancy. See river- been linked by IPG to become Detroit, which has its own history morning runs: the 10k Turkey Trot, undisclosed price. The sale of the days.com . Mullen Lowe Group. The IPG units of racial unrest. the 5k Stuffing Strut and the 25,000-square-foot building, at 610 Cynthia and Edsel B. Ford II can access each other’s resources “We think this is a national dis- Mashed Potato Mile. Fifth Third W. Congress St., to Congress Real Es- made a $1 million gift to the Metro as needed, but operate independ- cussion,” Davidoff said. “If we don’t Bank had sponsored the races for tate Ventures LLC by the Detroit Legal Detroit/Southeast Michigan Chap- ently. talk about it, it might get ahead of the past decade. DBpageAD_DBpageAD.qxd 4/30/2015 2:57 PM Page 1 DBpageAD_DBpageAD.qxd 4/30/2015 9:01 AM Page 1

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