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www.crainsdetroit.com Vol. 28, No. 40 SEPTEMBER 24 – 30, 2012 $2 a copy; $59 a year

©Entire contents copyright 2012 by Crain Communications Inc. All rights reserved Page 3 Bills aim to African violence Hospitals hungry under touches auto supply chain flow funds health to sewer Electronics retailer unplugs Michigan search reform projects Inside New loan, grant Tom Henderson on how Systems prowl not to save Belle Isle, for acquisitions programs sought Page 4 BY CHAD HALCOM BY AMY LANE Crain’s Lists CRAIN’S DETROIT BUSINESS SPECIAL TO CRAIN’S DETROIT BUSINESS The need for efficiency under Communities may get some help Largest IT companies, health care reform may be lead- JEFF JOHNSTON/CDB from Lansing in managing and im- ing to a wave of consolidation and proving one of the most critical largest architectural firms, the possible entry of more for- people covered by Medicaid and and costly pieces of their infra- Pages 18, 19 profit health care companies into those newly insured in 2014. structure — their aging sewer sys- Michigan. Other changes under reform in- tems. Crain’s reported Sept. 16 that clude hospitals working with On the move in the Legislature This Just In Beaumont Health System has been physicians and other providers to are bills that would take about $654 approached by for-profits Van- contract as accountable care or- million remaining from a $1 billion ganizations. ACOs have the po- environmental bond passed by vot- 2 area defense contractors guard Health Systems Inc. and Hos- BEAUMONT HEALTH SYSTEM win $665M in Army work pital Corp. of America about a possi- For-profit companies are eyeing tential to reduce costs and im- ers in 2002 and put it toward a new ble sale. Vanguard, which owns Beaumont Health System as prove quality but place hospitals state loan pro- Two defense contractors the Detroit Medical Center, has also institutions consider scaling up to and physicians at financial risk if gram and new with operations in Southeast approached Garden City Hospital tackle changes in health care. costs exceed payments. grant program Michigan will receive a com- and Crittenton Hospital Medical Cen- “This market is under-repre- for sewers and bined $665 million to im- ter in Rochester Hills on possible ed in selling to anybody.” sented by for-profits compared stormwater sys- prove power output, technol- acquisitions in the past year. Regardless of whether Beau- with other states, but Michigan is tems. ogy systems and other “In this day of health care re- mont is sold, hospitals are look- really waking up to it now. Two A central goal: components of mainstay form, everybody is talking with ing for growth to contend with years ago, when there was a lot of Get more money Army ground vehicles. everybody as part of strategic cuts in Medicare payments over this (for-profit acquisition) in oth- flowing to com- The Army Contracting planning,” said Mike Killian, vice the next few years and uncertain- er states, Michigan didn’t seem to munities so they Command at the U.S. Army president of marketing at Beau- ty over whether state legislators want to touch it,” said Gregory can be strategic Hersey Tacom Life Cycle Management mont, who called the HCA sale a will vote to expand Medicaid by a Drutchas, principal at Detroit- about planning Command in Warren last week rumor. projected 500,000 people under the based Kitch Drutchas Wagner Vali- needed sewer infrastructure spend- announced plans to award a “I can’t say it never will happen federal Patient Protection and Af- tutti & Sherbrook PC and head of its ing, rather than strictly reactive. $383 million contract to Ster- in the weeks, months and years to fordable Care Act. Hospitals are health care practice. “Most of the money that gets in- ling Heights-based General Dy- come. But our board has not made counting on offsetting Medicare “But the new trend in the com- vested … tends to get invested in namics Land Systems. any decisions to talk with any- cuts by replacing formerly unin- The contract will provide body. Management is not interest- sured patients with additional See Hospitals, Page 23 See Sewers, Page 22 for improvements to embed- ded computing, power gener- ation, radio and other sys- tems in the M1A2 Abrams tank. The new systems will be installed for qualification Incentive pay makes comeback among nonprofit execs and approval, before future contracts buy the various up- BY SHERRI WELCH five fundraising foundations, 10 arts and Bridgewater, president and CEO of the grades for production tanks. CRAIN’S DETROIT BUSINESS culture organizations Detroit Area Agency on Aging 1-A with REBOUNDING Navistar Defense LLC also an- and 10 human service $44,760 in incentive pay. Detroit Zoo CEO nounced last week a $282 mil- Use of incentive pay as a portion of organizations. Ron Kagan began earning incentive pay IN RECOVERY lion delivery order from compensation is returning to pre-reces- Twelve of the execu- in 2009. Tacom to make various im- Nonprofit sion levels among the heads of fundrais- tives in that group re- The responsibility is on nonprofit executives’ pay provements to its MaxxPro ing foundations, human services and ceived bonuses in 2010, boards to establish clear and measurable Dash Mine Resistant Ambush increases arts and culture organizations. up slightly from 11 goals for success for executives using in- reflect Protected vehicles. The That’s among the trends that emerged who received bonuses dependent third-party analysis and improving MaxxPro is a vehicle contract in Crain’s analysis of the compensation of in 2008, which were knowledge of the local environment and economy. More program managed at Navis- 35 of the region’s top-paid nonprofit exec- earned before the re- type of talent they are looking to attract, in Finance tar’s engineering center in utives in 2010, the latest year for which cession took hold, and said Mark Davidoff, Michigan managing Extra, Madison Heights. Bridgewater data is available. The group comprises eight in 2009. Pages 11-14 — Chad Halcom the CEOs of 10 grant-making foundations, New to the bonus club in 2010 was Paul See Nonprofits, Page 24

Learn tips to KEYNOTE SPEAKER SEPT. 27 Dr. Robert D. Childs, Chancellor 2 – 7 p.m. prepare for a National Defense University cio Information Resources The Fillmore,Det. cyber-attack Management College AWARDS Register TODAY by noon: www.crainsdetroit.com/events NEWSPAPER 20120924-NEWS--0002-NAT-CCI-CD_-- 9/21/2012 4:42 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS September 24, 2012

MICHIGAN BRIEFS Emergency manager: Loan would Chicago, until the Amway Grand Plaza was finished in 1983. Last put Benton Harbor back in black 3 and out? State’s newest SmartZones may be the last week, MLive.com reported that the As part of his plan to fix Benton McKay Tower — today Grand Harbor’s seemingly relentless bud- In the Flint area, there’s hope that the state will products. The zones can use tax increment financ- Rapids’ fifth-tallest building, had get problems, emergency manager designate the region a hub of technology business ing and offer benefits to businesses such as training, been sold in May. The Borisch Joseph Harris plans to ask the state creation. In Midland, there’s a desire to be a recog- business planning, product development, grant family paid $10.5 million, MLive for a $7 million loan. The Herald-Pal- nized beachhead for companies in the materials and writing and access to state resources for early-stage reported, citing city records. ladium in Benton Harbor reported chemical industries. technology companies. In the Oct. 10, 2011, issue, last week that the “mostly power- Members of both communities advocated for and The legislation also contains elements that con- Crain’s Michigan Business report- less” City Commission passed a res- want to be included in Michigan’s next — and possi- form the 12-year-old SmartZone program to the ap- ed at length on plans to turn a long- olution to support Harris’ decision bly last — batch of SmartZones. proach of Gov. Rick Snyder’s administration to eco- in-the-tooth section of downtown to seek the loan but failed to pass a A bill signed into law in August would allow for up nomic development — built around regional Grand Rapids into a $30 million, resolution of support for his deficit to three more SmartZones, expanding the roster of 15 collaboration and sharing best practices. 130,000-square-foot market. Last elimination plan. such areas around the state that cluster technology- “What we were trying to do is look at how can we week, the board of the downtown Harris said he will tell how the based businesses, entrepreneurs and researchers. get our organizations around the state to do a better market came up with an official $7 million loan would be used in SmartZones are designed to promote collabora- job of collaborating,” said Martin Dober, senior vice name for the downtown market: “Downtown Market.” Genius. the deficit plan. “To put the $7 mil- tions that include universities, industry, research president of entrepreneurship and innovation at the and community organizations, boosting entrepre- Michigan Economic Development Corp. The owner of movie theaters in lion request in context,” The Her- neurial activity and the commercialization of new — Amy Lane Bellaire, Petoskey, Gaylord, Macki- ald-Palladium reported, “the city’s naw City and Cheboygan admitted 2010-2011 fiscal year general fund in U.S. District Court in Grand Rapids revenue was $6.7 million, accord- ernment gave Indiana $71.3 mil- time significantly. Rather, he told museum’s board, called for mem- lion last week to ease congestion MLive.com, it is part of an effort to bers of the community to enlist in that she failed to pay nearly $1 mil- ing to a December audit.” lion in taxes. Elaine Dawson plans The Michigan Department of Trea- along nearly 30 miles of track be- reduce the number of delays. the restoration effort. Meantime, tween Porter, Ind., and the Illinois the museum’s website says you to plead guilty to tax evasion, The sury encouraged Harris to create a Associated Press reported. plan that shows how long it would border? You haven’t taken Amtrak Saginaw River community lands an can plunk down $10 Saturday or take to pay off the city’s deficits to Chicago, have you? Sunday to board the ship’s deck. Find business news from with the loan and one that shows The 20-month project is expected anchor tenant: A floating museum around the state at crainsdetroit to begin in the spring, the Federal .com/crainsmichiganbusiness. how long it would take without the After 15 years of work, Es- Railroad Administration said. For MICH-CELLANEOUS Sign up for Crain's Michigan loan, he said. With the loan, the sexville’s ship has come in. The re- deficits disappear in a year, leaving years, Michigan transportation ad- It once was billed as the tallest Business e-newsletter at crains ministrators have tried to improve cent arrival of the Navy destroyer a rainy-day fund, he said. Without building between Detroit and detroit.com/emailsignup. the three rail lines to Chicago: the USS Edson means the Saginaw the loan, it would take five years. Pere Marquette from Grand Rapids, River town is a step closer to open- the Wolverine from Pontiac and the ing the Saginaw Valley Naval Ship CORRECTION A train of thought: What helps Blue Water from Port Huron. Museum. (Note: If you were along A Sept. 10 Business Diary item, listed under the “Contracts” heading, Tim Hoeffner, director of the the Detroit River on Sunday, Aug. did not include the full name of Friedman Integrated Real Estate Solutions. Indiana rail can help Michigan Michigan Department of Transporta- 5, you might have seen the nearly The name of the office development Friedman is managing is North Troy So why were Michigan rail offi- tion’s Office of Rail, said the Indiana 420-foot-long Edson being towed.) Corporate Park. cials happy that the federal gov- improvements won’t reduce travel John DeWyse, a member of the

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September 24, 2012 CRAIN’S DETROIT BUSINESS Page 3 African violence touches Inside

automotive supply chain Perelman Rennert JLTV win may ‘Conflict minerals’ rules increase costs, red tape

BY DUSTIN WALSH erals from Africa. in the supply base,” she said. extend fight Tigers stalk near-record CRAIN’S DETROIT BUSINESS The auto industry began due “Companies can map down a few diligence when the ruling was an- tiers (of suppliers), but this legis- home-gate numbers, Page 5 Violence in the Democratic Re- nounced in 2010, said Tanya Bold- lation is making them define it public of Congo and eight sur- en, program de- down much, much farther, and of AM General rounding African countries velopment they can easily lose visibility (in Company index sparked U.S. regulatory action on manager for cor- the supply chain) before you get These companies have significant mention in this minerals mined from the conti- porate responsi- down to the smelter.” week’s Crain’s Detroit Business: nent, creating a ripple effect bility at the Auto- Besides the Republic of Congo, co-owners AJM Packaging ...... 24 across the Southeast Michigan motive Industry the other countries in the conflict Altarum Institute ...... 1, 11 automotive industry. Action Group, a area are Republic of Angola, Re- AM General ...... 3 While the auto industry’s expo- Southfield- public of Burundi, Central African Current feud: Automotive Industry Action Group ...... 3 BAE Systems ...... 25 sure to minerals from these based industry Republic, United Republic of Tan- Beaumont Health System ...... 1, 13 mines is limited, adhering to the organization. zania, Rwanda, South Sudan, Humvee funds Blue Care Network ...... 13 new regulations requires exten- But the industry Uganda and Republic of Zambia. Blue Cross Blue Shield of Michigan ...... 12, 14, 24 Bolden sive research, collaboration and couldn’t develop But it’s the cost and possible BY CHAD HALCOM Citizens Republic Bancorp ...... 6 dollars, local experts say. reporting measures until the regu- loss of competitive advantage CRAIN’S DETROIT BUSINESS Crittendon Hospital Medical Center ...... 1, 24 A section of the Dodd-Frank Wall lations were finalized Aug. 22. that have suppliers worried, said Deloitte ...... 24 A new military vehicle contract Delta Dental Plan ...... 12 Street Reform and Consumer Protec- The industry continues to enlist Jeff French, audit partner at program in Warren could continue DeRoy Testamentary Foundation ...... 24 tion Act, passed in July 2010, re- its purchasing and legal depart- Grant Thornton LLP in Milwaukee to fuel a legal battle between finan- Detroit Area Agency on Aging 1-A ...... 1 quires public companies to report ments to identify mineral sources and Midwest lead for the firm’s Detroit Educational Television Foundation ...... 14 cial titans Ron Perelman and Ira direct and indirect sources of “con- through the supply chain in conflict minerals services. Detroit Institute of Arts ...... 24 Rennert, the New York-based co- flict minerals” — tin, tantalum, preparation for public reporting, Detroit Medical Center ...... 1 See Minerals, Page 23 owners of AM General LLC. Detroit Regional Chamber ...... 13, 22 tungsten and gold, typically used Bolden said. That is, if the company assumes Detroit Symphony Orchestra ...... 24 in electronics — in filings with the “We’re still creat- production on the replacement for Detroit Tigers ...... 5 U.S. Securities and Exchange Commis- ing awareness Detroit Zoo ...... 1, 12 the Humvee. sion beginning in 2014. Eastern Michigan University Foundation ...... 13 AM General’s signature Hum- The U.S. government thinks the Edsel and Eleanor Ford House ...... 12, 24 vee — the High Mobility Multipur- African minerals are funding sev- Flagstar Bancorp ...... 6 pose Wheeled Vehicle — has kept Ford Motor ...... 23 eral violent, armed regional the company flush with the cash Garden City Hospital ...... 1 groups who have murdered, raped that Perelman and Rennert now General Dynamics Land Systems ...... 25 and enslaved millions. Use of Con- General Engine Products ...... 25 accuse each other of siphoning off golese tantalum for electronics, Genesis Foundation ...... 24 by way of loans and various including for vehicles, has been Gift Planning Associates ...... 15 charges. Grand Valley State University ...... 13 criticized frequently in the past That could end if AM General is- Guidance Center ...... 13 decade by human rights groups. n’t awarded a production contract Hall Render Killian Heath & Lyman ...... 23 The disclosure rule is designed to for the Joint Light Tactical Vehi- Harper-Hutzel Hospital ...... 13 expose to public scrutiny compa- Health Alliance Plan ...... 13 cle, which will enter production to nies using conflict minerals. HHGregg ...... 3 succeed the Humvee starting in The SEC said roughly 6,000 Hudson-Webber Foundation ...... 24 2015. Kitch Drutchas Wagner Valitutti & Sherbrook . . . . . 1 registered companies will be af- AM General, which has its engi- Kresge Foundation ...... 24 fected by the rules, but that will neering and product development Lear ...... 23 trickle down to tens of thou- Lentine Group ...... 15 center in Livonia, is one of three sands more private companies Lormax Stern Development ...... 3 companies with pre-production that may or may not source min- Lutheran Social Services of Michigan ...... 14, 24 contracts for the JLTV. Mercer (US) ...... 11, 24 South Bend, Ind.-based AM Gen- Michigan Infrastructure and Transportation Assn. . 22 The U.S. government says that eral has manufactured the Hum- Michigan Nonprofit Association ...... 13 because minerals used in vehicle vee ever since it was headquar- Michigan Opera Theatre ...... 24 manufacturing might be funding NSF International ...... 1, 12 conflict in the Democratic Republic of tered in Livonia and won the O’Keefe & Associates ...... 23 Congo, auto suppliers now must initial $1.2 billion military con- Oshkosh Defense ...... 25 account for the sources of the gold, See JLTV, Page 25 Plunkett Cooney ...... 23 tungsten, tantalum and tin that they use. Quicken Loans ...... 6 St. John Providence Health System . . . 12, 13, 14, 24 PHOTOS FROM ISTOCKPHOTO.COM, THE ASSOCIATED PRESS. ILLUSTRATION BY JEFF JOHNSTON/CDB Society of Manufacturing Engineers ...... 14 Southeast Michigan Council of Governments . . . . . 22 Talmer Bank and Trust...... 6 Trinity Health ...... 12, 14 Electronics retailer HHGregg unplugs Michigan search United Shore Financial Services ...... 6 United Way for Southeastern Michigan ...... 24 University of Michigan ...... 11 BY SHERRI WELCH other landlords have as well,” Vanguard Health Systems ...... 1 CRAIN’S DETROIT BUSINESS Brochert said. Visteon ...... 21 We just wasted a lot of time and “We’ve leased or are in advance Wayne State University ...... 15 Consumer electronics and appli- “ negotiations on almost every sin- WDET 101.9 FM ...... 15 ances retailer HHGregg Inc., which a lot of money. gle space we were working on for had been considering entry in ” them.” Department index metro Detroit and other Michigan Chris Brochert, Lormax Stern Development Co. The company did not say why it BANKRUPTCIES ...... 22 markets, has tabled its plans — at chose to halt its plans, Brochert BUSINESS DIARY ...... 16 least for now. partner at West Bloomfield Town- again and off-again” before it final- said. CALENDAR ...... 17 The Indianapolis-based compa- ship-based Lormax Stern Develop- ly indicated it would not be enter- HHGregg said its “goal is to be- CLASSIFIED ADS ...... 21 ny had been in negotiations with ment Co. ing any Michigan market at this come a national retailer of appli- numerous landlords around Lormax Stern was working with time, he said. ances and electronics and as such JOB FRONT ...... 20 Michigan for the past six months HHGregg on five Detroit-area loca- “We just wasted a lot of time and KEITH CRAIN...... 8 or so, confirmed Chris Brochert, a tions, but the company was “on- a lot of money, as I’m sure many See HHGregg, Page 24 LETTERS...... 8 OPINION ...... 8 Getting to work Crain’s Michigan Business OTHER VOICES ...... 9 Sign up for the roundup of statewide THIS WEEK @ People on the move, job postings PEOPLE ...... 20 and other career information can news delivered to e-mail inboxes every WWW.CRAINSDETROIT.COM be found at Crain’s Job Front at crainsdetroit.com/jobfront. Wednesday: crainsdetroit.com/getemail. RUMBLINGS ...... 26 WEEK ON THE WEB ...... 26 20120924-NEWS--0004-NAT-CCI-CD_-- 9/21/2012 4:51 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS September 24, 2012 CongratulationsWINNERS! 2012 AIAG Quality Summit Awards

AIAG would like to congratulate the following group of volunteers for winning Outstanding Achievement Awards for their dedication to the field of quality management in the global automotive arena.

A ROUND OF APPLAUSE FOR:

Michael Beuerlein Keith Hanson Mark Braun Rick King Lori Busha John Kreucher Shawn Capser Phil Mikula Trash is a perpetual blight Michael Down Fred Smith on the natural beauty of Belle Isle. Su Glesner Stanley Zhou TOM HENDERSON/CRAIN’S DETROIT BUSINESS With friends like City Council, Belle Isle doesn’t need enemies That the Detroit City impassable in their utter up security — I doubt I’d find state Council rejected as “stu- disrepair? cops sleeping in their cars at the pid” the proposed deal I’ve seen all those far east end of the island, past the between Mayor Dave things. I used to play on lighthouse, unlike the city cops Bing and Gov. Rick Sny- the island with my who frequent the site for a snooze der to have the state take grandparents in the — and would renovate picnic shel- over control of Belle Isle 1950s. A favorite memory ters, bathrooms, the fishing pier gave me a sense of déjà circa 1954 is them rent- and golf course. vu. ing a pony and carriage The downside? Visitors, who Tom Henderson More on that later. one day and me cracking now use the park for free, would “They started celebrating before the reins to get the pony running. need a $10 annual park passport. they gave it to us. I don’t under- He ran too near a big tree and up Despite what was promised to be www.aiag.org #AIAG stand how Mayor Bing could co- we went on one wheel, my nana millions in improvements over the sign this,” said council President screaming and me laughing. course of the 30-year lease, the pro- Charles Pugh. A sadder memory is watching posal was dead on arrival. “This has no benefit to the city, those historic, beautiful horse sta- “I am an absolute no,” said coun- other than some new sheds. Hell, bles fall into terminal disrepair cil member James Tate. “Some- we could buy some new sheds on during the 1970s and 1980s when times folks take your kindness for The Engineering Society of Detroit our own,” he said. Mayor Coleman Young thought a a weakness. What we have in front No benefit? Really? As one who policy of benign neglect would of us is way beyond disrespect. It’s Engineering & Technology spends a lot of time on the island turn the island into such a sad stupid. It was a terrible attempt of year-round, who has been on every state that he would have no opposi- shoving it down the people’s CONNECTNNECT SUCCEED GROW GRO bike path and trail, who knows tion getting a casino on the island. throats and our throats.” where the raspberries grow in the I used to play softball tourna- “I got the sense the state wrote forest in the middle of the island in ments on the island when I man- it. It is a very one-sided docu- Job Fair early summer and who knows aged the Detroit Free Press softball ment,” said Kenneth Cockrel Jr. where the secret beach is, I can team in the 1970s and 1980s. I’ve run As for my sense of déjà vu? The premier recruitment fair for engineers, only say: dozens of 5K and 10K races there. I In 1992 or so, I was in Ed McNa- scientists & tech professionals Mr. Pugh, have you ever been on finished a bunch of Free Press mara’s office for an interview. the island on a Monday morning marathons by collapsing on the His phone rang. It was Mayor 0DUPCFS




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OPONFNCFST walking along the canal where pad- doesn’t want them to get because it mayor’s office basically said: Keep dleboats and canoes for rent used to doesn’t want Belle Isle workers re- your hands off our jewel. Keep float slowly by? That canal is now assigned. your nose out of our business. We Visit wwwFTdPrg clogged by trees that have fallen Under terms of the proposed don’t need the county butting into today for more down over the years and by the Belle Isle agreement, as reported our affairs. information or to garbage thrown or blown in. by the Free Press and The Detroit “Can you believe it?” McNama- register for either event. Have you ever seen the potholes News last week, the state’s Depart- ra asked me. or disintegrating pavement — does ment of Transportation would be re- Oh, yeah. Easy. No problem. #employeeswanted the Grand Prix ring a bell? — or sponsible for the bridge and roads, A version of this column original- been on the bike paths that run would provide energy updates for ly appeared as a blog at through the woods and are nearly a variety of buildings, would beef www.crainsdetroit.com. 20120924-NEWS--0005-NAT-CCI-CD_-- 9/21/2012 4:44 PM Page 1

September 24, 2012 CRAIN’S DETROIT BUSINESS Page 5

ANDREW TEMPLETON/CRAIN’S DETROIT BUSINESS Opening Day set the pace for numerous sellouts this year at Comerica Park. The Tigers’ season will be in the top three in franchise history for attendance. Disappointments aside, Tigers on

prowl for near-record home gate Beaumont Women’s Urology Center – Gift from Susan E. Cooper BY BILL SHEA CRAIN’S DETROIT BUSINESS COUNTING THE CROWD Regardless of whether the Detroit Tigers Since manager Jim Leyland was hired in make the playoffs, the team remains on pace 2006 and the Tigers began boosting player to record the second- or third-best home at- payroll spending and appeared in the World Series that year, Detroit has been in the Thanks to Susan Cooper, tendance in franchise history. upper third for attendance among Major That fan surge could mean as much as League Baseball’s 30 teams: $32 million in new revenue for the Tigers. Year Total Average MLB rank While the results on the scoreboard have Beaumont has the fi rst 2006 2,595,937 32,048 10th often disappointed fans, attendance this year has been bolstered by the sale of 22,000 2007 3,047,139 37,619 4th full-season tickets, up from slightly more 2008 3,202,645 39,538 3rd Women’s Urology Center than 15,000 in 2011. 2009 2,567,185 31,693 11th Through Friday, the team was averaging 2010 2,461,237 30,385 12th 37,584 fans per game at 41,255-seat Comerica 2011 2,642,045 32,617 10th in the Midwest. Park, which 2012* 2,781,222 37,584 5th would translate * Through 74 home games into 3,044,304 fans Behind all of the innovations in women’s health at for the 81-game While not a precise figure, the index gives Beaumont are people like Susan Cooper. A community home schedule. a decent idea of how much revenue each fan leader and a long-time member of our Board of Directors. The average was generates for the Tigers. dragged down by Detroit finished 95-67 last year and was es- Because of her generosity, we were able to found a Thursday after- timated in March by Forbes.com to have noon’s 34,635 for made $8.2 million in operating income on center to successfully treat pelvic pain and other the 12-4 loss to the revenue of $217 million. urological conditions that affect 43% of women. Oakland A’s, but it The run on season tickets was sparked by was expected to fans excited over a team that featured the de- Our Women’s Urology Center has helped hundreds of

DETROIT TIGERS increase with the fending American League MVP and Cy patients from around the country – and from as far away Miguel Cabrera fueled the weekend’s games Young winner in pitcher Justin Verlander, as Europe and South America. A combination of leading- all-time Tigers attendance against the Min- and a lineup built around Cabrera and record of 3.2 million in nesota Twins. Prince Fielder, who was signed in January edge research and treatment in a comforting environment 2008. The second- to a 10-year, $214 million free-agent contract. is helping women who suffer from interstitial cystitis, best Tigers atten- A pennant race over the final weeks of the incontinence and other intimate female problems. dance is 3,047,139 from 2007, the year after season makes for must-see baseball, while a the team’s unexpected trip to the World Se- team considerably ahead or behind in the In addition, Susan has been a powerful force in the ries. The all-time Tigers attendance record standings can be less compelling when it is 3.2 million in 2008, a surge fueled by the comes to selling tickets, baseball insiders fight against breast cancer. She was the co-founder of offseason acquisition of slugger Miguel say. the Drive to Beat Breast Cancer, a major philanthropic Cabrera. The team also sold its most-ever “It seems to me that the Tigers have been initiative of Beaumont’s Comprehensive Breast season tickets, an estimated 27,000, that in the pennant race all along, with a little bit year. of ups and downs,” said Andrew Zimbalist, Care Center. Detroit saw its third-best attendance last professor of economics at Smith College and season with 2.6 million fans (32,617 per author of several sports finance books, in- Susan Cooper is an inspiration to all of us at Beaumont. game) at Comerica Park, which the Tigers cluding May the Best Team Win: Baseball She reminds us that it doesn’t take a medical degree to moved into for the 2000 season after playing Economics and Public Policy. save a life. All it takes is a heart. at Tiger Stadium since 1912. Fans also may be interested in watching The team could finish with more than Cabrera’s pursuit of the first Triple Crown 405,000 more tickets sold this season than in — one hitter leading his league in batting av- 2011, which back-of-the-envelope math sug- erage, RBIs and home runs — since Carl gests is an extra $32 million in gate revenue Yastrzemski of the Boston Red Sox in 1967. for the team. “They’re not at all out of the race,” Zimbal- A single fan is worth $80.49 per game to ist said. “They’ve got the best hitter in the AL A Not-for-Profi t Provider the Tigers, according to the annual Fan Cost in Cabrera. He’s exciting. You’ve got the best Index published before the season by the pitcher in the AL in Verlander. You’re still in Chicago-based sports research firm Team contention. This is an exciting team.” Marketing Report. The Tigers have 10 games left and today The calculation is derived by using the begin their final home stand, a four-game se- firm’s formula, based on a family of four go- ries with the Kansas City Royals. Find out how you can save lives, too. If you would ing to a game, and applying its metrics to a Detroit’s final six games are three-game like to make a gift, please go to our website at single fan: A fan at Comerica Park buys a road trips to Minnesota and Kansas City, ticket at $31 (average price), a beer for $8.75, with the regular season ending Oct. 3. foundation.beaumont.edu or click on the code a pop for $4.25, a hot dog for $5.50, parking Bill Shea: (313) 446-1626, [email protected]. with your phone. for $5, a program for $5 and a hat for $20.99. Twitter: @bill_shea19 20120924-NEWS--0006-NAT-CCI-CD_-- 9/21/2012 4:43 PM Page 1

Page 6 CRAIN’S DETROIT BUSINESS September 24, 2012 Mortgage firms pleased with latest Fed move; banks are mixed

BY TOM HENDERSON high of $1.21. It do it,” said Michael Tierney, presi- years, at least, and happier at mar- lease for 95,000 square feet in the CRAIN’S DETROIT BUSINESS has traded as dent of Michigan operations. ket reaction for his bank. Troy Officentre complex on Big low as 46 cents The Fed announced that it “Investors came to the conclu- Beaver Road, not far from compa- Troy-based Flagstar Bancorp Inc. in the last 12 would extend near-zero rates until sion that the mortgage business is ny headquarters on Corporate Dri- (NYSE: FBC) has been quick to months. at least mid-2015 and as long after going to be good,” he said. “Our ve near Crooks Road. benefit from the announcement by The New York that as needed until U.S. unem- theory is institutional investors Tierney said that space is nearly the U.S. Federal Reserve System that Stock Exchange ployment falls from 8.1 percent to did their homework about who full, and executives have been try- it was launching a third round of has told the less than 7 percent. It also an- would benefit from the Fed’s an- ing to decide whether to lease monetary policies to stimulate the bank it needs nounced it would buy at least $40 nouncement.” more. Knowing rates will stay low national economy. to have its billion of mortgage-backed securi- Tierney said the Fed announce- until at least mid-2015 makes at The Fed’s Open Market Commit- share price Tierney ties each month from other finan- ment has him leaning further to- least a short-term lease on another tee made the announcement of above $1 for 30 cial institutions. ward finding more space to house site more likely. what is termed quantitative eas- successive trading days by the end Mortgage companies welcomed his growing number of mortgage David Provost, president, chair- ing, or QE3, on Sept. 13. The next of the year or face delisting. It the news, although reviews were bankers. In the first six months, man and CEO of Troy-based Talmer day the bank’s share price moved shareholders are expected to ap- mixed among bankers. the bank did $23.7 million in loan Bank and Trust, saw the Fed an- above $1 for the first time since prove a proposal today for a 10-for- Tierney was happy to see the originations, about double what it nouncement as a mixed blessing. May 4, going from 95 cents to $1.01, 1 reverse split, “but if the stock Fed give assurances that low rates did in the same period last year. He said that eventually banks will and last Friday, it hit a one-year stays above $1, we may not have to will continue for nearly three Last January, the bank signed a need interest rates to be higher be- cause higher rates allow banks to make a bigger profit on the spread between what they pay to borrow and what they charge borrowers. Provost said the bank expects home loans to increase substan- tially from the current 250 a month. It did about 150 a month last year. Cathy Nash, CEO and president of Flint-based Citizens Republic Ban- corp Inc., told Crain’s following the announced acquisition on Sept. 13 of her bank by FirstMerit Corp. (Nas- daq: FMER) that the reason for the sale was that the bank was margin- dependent and that continuing low rates left little chance to generate decent returns for shareholders. Mat Ishbia, president of the Unit- ed Wholesale Mortgage division of Birmingham-based United Shore Fi- IS THIS HOW YOUR nancial Services LLC, said he had ex- pected the Fed to announce stimu- BANK SEES YOU? lative monetary policies but was happily surprised by the news. We don’t. “There’s no downside for us. This will help grow the economy and get consumers better loan We see you as an individual. rates. There’s already a lot of refi- With the guts to run a business. nancing going on, and this will mean more, and it will help other Which makes us curious how you do it. people afford more of a house.” And how we, as your bank, can help Ishbia said the timing affirms the recent decision by the compa- you do it better. What makes your ny to sign a long-term lease for business special? What is its true potential? 100,000 square feet for a new head- quarters in Troy, with an option How do you actually get paid? It’s how for an additional 100,000 square feet to accommodate expansion. we can generate ideas that work for you. But he said the company’s Like integrated payables and receivables growth plans would have re- mained in effect regardless. solutions that may help you improve cash “Our growth plan is based on flow. Or, perhaps, financing options you capturing market share through better service, but this certainly never knew existed. We don’t think a helps,” he said. bank can do that without being curious. Bob Walters, chief economist at Detroit-based Quicken Loans Inc., the state’s largest mortgage origi- Learn more at 53.com/BusinessIdeas nator, with about $30 billion last year, took a cautious approach to We’re Fifth Third Bank. the Fed announcement. “After the Fed announcement, mortgage bonds increased about one-half point, which equates to about one-eighth of a percent in The curious bank. rate. So the initial reaction hasn’t been a game changer,” he said. “Longer term, the Fed is saying they will do what they need to do to attempt to keep mortgage rates low. That’s good news. But, bor- rowers shouldn’t think this means long-term rates will stay this low indefinitely. If the economy starts to heat up, or if inflation raises its ugly head, we could see rapid and Deposit and credit products provided through Fifth Third Bank. Member FDIC. Equal Housing Lender. Lending is subject to credit review and approval. © Fifth Third painful increases in long-term Bank 2012. mortgage rates.” Tom Henderson: (313) 446-0337, [email protected]. Twitter: @tomhenderson2 DBpageAD.qxp 9/5/2012 9:20 AM Page 1

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Page 8 CRAIN’S DETROIT BUSINESS September 24, 2012 OPINION Seek the best: Pay for nonprofit execs

re nonprofit executives overpaid? Maybe some are. Just like in the for-profit sector, peo- A ple aren’t paid according to their worth. And a vigor- ous advocate for the 99 percent might review the list of top- paid nonprofit executives in this week’s issue (see Page 14) and think so. The temptation is to expect nonprofit executives to work at “charitable” rates. But if the goal is for nonprofit organizations to achieve the best results in whatever mission they are pursuing, why would you not seek — and pay for — the best talent possible? That’s the question Dan Pallotta, founder of the Breast Cancer 3-Day fundraising events, posed Sept. 14 in The Wall Street Jour- nal essay “Why Can’t We Sell Charity Like We Sell Perfume?” Pallotta argued that nonprofits should compete aggressive- ly for talent and pay for results. He pointed to congressional critics of paying the then-CEO of the Boys & Girls Clubs of America nearly $1 million in 2008, including catch-up pay- ments for retirement. Pallotta noted that over her tenure, that executive tripled the nonprofit’s revenue to $1.5 billion. If any- thing, she may have been underpaid. Closer to home, the compensation of Cornerstone Schools founder W. Clark Durant became a campaign issue this year TALK ON THE WEB LETTERS during his unsuccessful run in the Republican U.S. Senate pri- mary; his Democratic critics thought it was too generous. Yet From www.crainsdetroit.com State horse racing donors who paid Durant’s salary publicly said they believed Re: Canada’s pitch for new bridge Reader responses to stories and regulators overreach Durant was worth every dime because of his passion and fund- Take a trip over the Ambas- blogs that appeared on Crain’s Editor: raising abilities for the schools. website. Comments may be sador Bridge and drive out Huron I found the Michigan Briefs edited for length and clarity. By benchmarking with comparable positions within and Church Road, where it lets out to article “Horse racers claim outside of Southeast Michigan, boards might find their execu- the new Essex Parkway, which state aims to rein in their he is a respectable leader who holds ends at the proposed bridge’s rights” (Sept. 17) most informa- tives are underpaid. himself to the same standards as Canadian end. The Canadians tive. It exposed the arrogance of Detroit Institute of Arts CEO Graham Beal, for example, everyone else. have removed dozens of houses Michigan regulatory officials leads the pack on our list among arts and cultural organiza- Remus and businesses to make way for who believe that the Bill of tions in Southeast Michigan, with total 2010 compensation of the Parkway that will carry all the Rights is nothing more than a $426,000. This was after he led the $158 million renovation and car and truck traffic. All the Cana- Re: Area hospitals are growing, set of legal loopholes to be dis- ground-breaking overhaul of how the museum’s collections dians have to do is to prohibit truck selling their own produce missed and not a foundation of were displayed. And it doesn’t reflect his most recent role in traffic on Huron Church Road, and principles that is a prerequisite the Ambassador Bridge is done. When I was hospitalized at this year’s successful millage campaign. Bloomberg News has for the establishment of a fair jg48386 Beaumont a few years ago, all I and orderly society. reported New York museum directors with packages of more wanted from the kitchen was a raw Dennis Wolfe than $2 million; the director of the Art Institute of Chicago Re: L. Brooks Patterson pays fine, vegetable. Preferably a green pep- West Bloomfield Township earned $836,000 in 2008. per. Alas, there was none to be had. I calls not buckling up ‘a mistake’ hope this changes things. Salary information for top executives of publicly traded Crain’s Detroit Business Oakland County Executive L. esther companies is public information. So, too, for nonprofit organi- welcomes letters to the editor. Brooks Patterson reminded us of zations as part of the public purpose that justifies their tax-ex- This is a transformation in its All letters will be considered for two important points. First, the publication, provided they are empt status. laws of physics apply to everyone early stages. The effects go way be- yond the $20,000 in savings due to, I signed and do not defame The information reported this week can help nonprofit equally. Second, while many high- individuals or organizations. level officials might try to use assume, growing vs. buying the boards benchmark their own compensation practices and per- produce. There are the potential ef- Letters may be edited for their position of power to weasel length and clarity. haps ask themselves whether their executives are, in fact, paid fects on patients’ health and the their way out of paying the $65 Email: [email protected] for results. fine, Brooks proved yet again that See Talk, Page 9 KEITH CRAIN: I’m reserving a table on the Titanic The city of Detroit is going to go thought there would be I’ve always kidded what will happen when (not if) ing to aid a drowning swimmer. bankrupt. an awakening of just that a benevolent dicta- bankruptcy is filed. What will we When Detroit is thrown a life Plan on it, and do whatever you how serious this is and tor is probably the best have to do in our community to preserver, those in authority dis- have to do so there will be no sur- you’d see a new begin- form of government, continue to function and run our card it because they are sure that prises in your business. ning. only if I get to pick the businesses? they can survive on their own. After seeing the government of I was just kidding my- dictator. Well, the feder- I am not sure of the motives of Well, they’re wrong, and they’re Detroit in action once again last self. And they are just al judge who will handle our political leaders. All I know is going to drag the city into the fi- week, it is painfully obvious that kidding themselves and the city’s bankruptcy that they, all of them, continue to nancial quicksand for their own those in charge are either oblivi- the citizens of Detroit. may not be benevolent, ignore the obvious and seem in- misguided agenda. ous or don’t care about the direc- We are about a foot but he or she will be a tent on spitting in the eye of any- This city cannot survive until tion they are taking this city. from the precipice; dictator. one who would like to help the the next election. In fact, when the I must admit, I always had some we’re heading over the After watching our city. city files for bankruptcy, I don’t secret hope that they could pull the cliff. And sadly, no one government at work It’s better to sink on your own even know if they’ll have an elec- city out of the financial hole. It was seems to care. last week, I realized that it’s a lost than perhaps take a handout from tion. That might just be postponed time for an intervention, and It’s just a matter of time — and cause. someone who might not only know indefinitely. everyone would see the light. I not much time, at that. Business needs to figure out a lot more than you do but is will- It’s too bad. 20120924-NEWS--0009-NAT-CCI-CD_-- 9/20/2012 3:59 PM Page 1

September 24, 2012 CRAIN’S DETROIT BUSINESS Page 9 OTHER VOICES: Immigrants are the (partial) answer

Many U.S. cities caught from moving away. ence is crucial. residents in the 1990s also had the that alert them to places that offer in a spiral of economic de- “No one strategy will, by The newcomers are very good at largest influx of foreigners. By them the best economic and social cline think they have a res- itself, revitalize the Detroit finding and seizing openings in an contrast, Detroit and other Rust fit, making it difficult to plunk them cue plan: an influx of immi- regional economy,” he economy that the native-born resi- Belt cities have experienced only anywhere and expect results. grants. Officials are says. “However, nothing is dents don’t see or don’t want. This outflows since the 1960s. So what should Detroit, Balti- carrying out policies aimed more powerful to remaking is one reason cities should remove Why? New Yorkers were mostly more and other struggling cities at attracting foreigners in Detroit as a center of inno- the barriers keeping immigrants leaving for greener pastures else- do to become more attractive to hopes that their energy and vation, entrepreneurship away. But first these opportunities where, while Detroit’s residents immigrants? Offer them a decent drive will reverse decades and population growth have to exist. are mostly fleeing to escape a lack quality of life at an affordable of population losses and set than embracing and in- When they do, in a city like De- of opportunities. price. This means improving the stage for a revival. creasing immigrant popu- troit that has lost population, the It turns out, immigrants aren’t schools, tackling crime, creating Such thinking is a Shikha Dalmia lations.” loss is reversed rather quickly as pioneers whose survival depends an entrepreneur-friendly climate breath of fresh air — and the polar The problem with this thinking immigrants move in to capture on conquering an inhospitable fron- and keeping taxes reasonable. opposite of the restrictionist rage is that it misunderstands the role openings left by departing resi- tier. Yes, they can put up with far In short, fix the economic en- that has led Arizona and other immigrants play in an economic dents. A 2003 Brookings Institu- greater hardship than the native- gine first. states to adopt draconian tactics to revival. They aren’t the engine for tion study found that five of six born, but they aren’t clueless in- Shikha Dalmia is a Detroit-based chase away such people. But immi- growth. They are only the fuel, al- metropolitan areas, including New genues who are easily seduced. senior analyst at Reason Founda- grants aren’t miracle workers who beit a high-octane one. The differ- York, with the biggest exodus of They have word-of-mouth networks tion. can fix any broken economy. Their absence often signals that cities have taken a wrong turn. Rolling out the welcome mat won’t get a place back on track without funda- mental reform. The notion that immigrants can revive dying cities isn’t new. Cleveland started trying to get its “fair share” of the foreign-born from traditional immigrant mag- nets such as Los Angeles, New York, San Francisco and Houston about a decade ago. Its efforts petered out, but other struggling cities have recently jumped on the immigrant bandwag- on. In Baltimore, Mayor Stephanie Rawlings-Blake wants to attract 10,000 new families, including for- eigners, within 10 years. To this end, she has barred authorities from asking city residents about their immigration status. The mayor, a Democrat, is also offering nutrition and exercise programs in Spanish, an overture that was anathema to her predecessor. In Detroit, former Democratic state Rep. Steve Tobocman runs the nonprofit Global Detroit that has raised $4 million to investigate ways to attract and retain immi- grants. The group is experiment- ing with programs to connect low- income immigrant and minority entrepreneurs with lenders that offer loans without collateral. He is also seeking ways to keep for- eign students in local universities

TALK CONTINUED ■ From Page 8 R&D that will go into making im- plementation of greenhouse tech- nology more efficient. Congrats, Henry Ford, on having the vision to pursue the R&D now for new ideas. Mitch

Hmm. A $1 million donation that saves $20,000 per year. Won- der if that is the net (potential) benefit after paying the full-time farmer employed. May be a nice idea, but not an economical idea. William J

Re: Federal Reserve Bank leader says Feds must stimulate economy Banks need to relax lending re- quirements responsibly; that is, avoid the mistakes of the past but get dollars flowing back into small businesses that have been unable to tap into the billions of dollars ly- ing around and earning no interest. john md DBpageAD.qxp 7/27/2012 10:01 AM Page 1

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September 24, 2012 CRAIN’S DETROIT BUSINESS Page 11

REPORTER’S NOTEBOOK Extra

Chad Halcom covers litigation, higher education and defense. Call (313) 446-6796 or write chalcom @crain.com. nonprofit compensation report

Chad Halcom DPS saves with online auction Detroit Public Schools estimates it has saved nearly $1 million on purchasing costs in the four months since its new procurement chief began using online reverse auction marketplace company FedBid Inc. to buy some of its supplies. Tracy Joshua, who joined the district as chief procurement and logistics officer earlier this year after serving as executive director of global sourcing at New York-based Bristol- Myers Squibb, said the district tried FedBid.com as a pilot program in late May and early June, then became a permanent online purchaser for the fiscal year starting July 1. The district pays nothing to use the service, although Vienna, Va.-based FedBid collects a hosting fee after each Bouncing back auction transaction. Detroit is the first school district in the nation to use the service, in which it posts a procurement order where vendors can compete Improving economy puts a spring into pay packages of nonprofit execs online to become lowest bidder. So the board began providing proved organizational perfor- “It runs the gamut, everything from A BY SHERRI WELCH to Z in terms of running a school,” she CRAIN’S DETROIT BUSINESS increases, primarily through mance, as well as the need to CLOSER LOOK bonuses, to close the gap. Be- bring his compensation nearer said. “And some services have gone up Expect more for bids as well — we’ve had a degree s the economy began to slide tween 2008 and 2010, Smith’s com- to market rates, Kelch said. into recession four years pensation increased 198 percent Altarum’s goal is to perform CEO turnover, of success with that. But mostly it’s smaller raises, helped us find various goods.” A ago, Altarum Institute knew it to $1.04 million from $348,858. better financially than three- Page 13 Joshua said FedBid is just one of had to do something if it wanted As of 2010, the gap between his quarters of its competitors, he several new school district approaches to keep its CEO. pay and his peers’ was narrower said. While top peers at that 75th to purchasing since she assumed the The Ann Arbor-based health but still 39 percent, Kelch said. percentile grew their organiza- procurement post. Others include systems research and consulting Smith’s compensation surge tions at an average rate of under more than 20 new “strategic category organization competes not only reflects a wider local trend: 9 percent between 2008 and 2009, teams” that coordinate supply with other nonprofits, but also Nearly two-thirds of the top-paid Altarum grew at a rate of 22 per- sourcing by category of products, and with for-profits. nonprofit executives in the re- cent, even excluding the acquisi- centralizing purchases at a district “We benchmark executive pay gion saw pay increases in 2010 as tion it made in 2009, he said. Its level that used to be handled by against that of like con- their organizations continued to revenue increased from $42 mil- individual schools or departments, to tract research and con- recover from the recession and lion in 2008 to $72 million in 2010. Maryland find savings through scale. sulting organizations, strove to retain top leadership. “Over the last five years, Al- Patricia The district expects to shave about (and) blend the market One quarter saw double-digit tarum has consistently ranked Maryland of St. $5 million from its total procurement data” from nonprofit increases in 2010, the most re- in the top quartile in terms of John costs this fiscal year, and Joshua said and for-profit peers “to cent year for which numbers are growth,” Kelch said. Providence about $3 million of that savings could ensure it is reflective of available from mandatory non- And Smith’s salary increases Health System come through FedBid. That includes the competition we profit regulatory filings with the reflect that. got a 35 percent $800,000 to $1 million in savings to face,” said board Chair- Internal Revenue Service. Crain’s increase in date, including a single classroom man Robert Kelch, spe- examines nonprofit executive compensation. handbook purchase order that saved cial assistant to the compensation biennially. Pay recovery Snapshots of Kelch execs’ pay, Detroit schools about $100,000 or president and retired executive Smith was among the benefi- The large pay increases reflect more than half the total cost. Page 14 vice president for medical af- ciaries of the trend of nonprofits a return to pre-recession com- Buy a report “Several technology companies had fairs at the University of Michigan, spending to keep executive tal- pensation models, said Ed Stein- approached us about adding on more than in an email. ent in 2010. His total compensa- hoff, a partner at the Detroit of- 90 Michigan technology to our resources. But what In 2008, Altarum President tion increased nearly 31 percent fice of national human resource was unique about FedBid was they nonprofits for and CEO Lincoln Smith’s com- in 2010 alone, driven by a nearly consulting firm Mercer (US) Inc., were willing to do the pilot program with $69, www. pensation lagged about 51 per- $300,000 bonus. crainsdetroit us and didn’t require us to purchase See Pay, Page 12 .com/lists any software,” she said. “They were cent behind the pay of the chief His bonus was related to im- also willing to invest resources with the executives at similar organiza- district. They’ve been sending teams to tions, Kelch said. work with us and to make sure we were proficient in using their tool.” Joshua said the Detroit collaboration will allow FedBid to eventually offer services to other school districts, municipalities and possibly some of the Detroit area’s largest private employers. A study published last month at Southeastern Louisiana University found that the Alabama-based Army Contracting Command, which has a major purchasing center at the U.S. Army Tacom Life Cycle Management Command in Warren, has saved nearly $150 million on more $1 billion worth ISTOCKPHOTO.COM of acquisitions since 2007 via FedBid reverse auctions. 20120924-NEWS--0012-NAT-CCI-CD_-- 9/20/2012 4:09 PM Page 1

Page 12 CRAIN’S DETROIT BUSINESS September 24, 2012 Finance Extra: Nonprofit Compensation Pay: Improving economy puts spring into execs’ pay packages ■ From Page 11 a subsidiary of Mercer LLC. total compensation, which includes more aligned with historical forms, which contain compensa- Southeast Michigan in 2010. His to- “Whether it’s a for-profit organi- annual bonuses, and for some of the bonus levels than with 2008 levels. tion data for their chief executives, tal compensation was $3.6 million. zation or a not-for-profit organiza- larger health care systems’ poten- Larger increases also may sig- with the IRS. Also seeing sizable bonuses in tion, we definitely saw a recovery in tial long-term incentive awards as nal a nonprofit’s moves to bring an 2010 were Thomas Fleszar at Delta pay levels to more historical levels well as deferred compensation, I’m executive up to market-rate pay, Dental Plan of Michigan with $789,500 during that time period,” he said. not surprised to see double-digit in- Steinhoff said. Bonuses tip scale in incentive pay, Patricia Maryland The average base pay increase creases,” Steinhoff said. But when the books close on Bonuses continued to figure of St. John Providence Health System the past several years for top non- In 2008 and 2009, for the most 2011 and 2012, “you’ll probably see prominently in the compensation with a $931,214 bonus and Daniel profit executives has been fairly part, bonus payments were ex- the typical 3 percent or so increas- packages of local nonprofit execu- Loepp at Blue Cross Blue Shield of low at about 3 percent, he said. tremely low because of the down- es in base pay and bonuses,” and tives in 2010, led by incentive Michigan with a $1.28 million bonus. That aligns with the median base turn, he said. not so many of the larger increas- awards such as $548,454 to NSF In- Loepp’s incentive pay, com- pay increase of about 2 percent in The change from 2008 to 2010 re- es. (See story, Page 13.) ternational Inc. CEO Kevan Lawlor bined with a 13 percent base pay 2010 among the nonprofit execu- flects the economic recovery and Nonprofits can get extensions of and $645,161 to Trinity Health Corp. raise, increased his total compen- tives on Crain’s list. associated payment of bonuses up to 11 months after the close of CEO Joseph Swedish, who was the sation 56 percent in 2010. “But when you start looking at and long-term incentives that were their fiscal year to file their 990 highest-paid nonprofit executive in The percentage increase is skewed because Loepp gave back $340,000 in incentive pay in 2009, said Blues director of corporate af- fairs Helen Stojic via email. Had Loepp taken the $340,000 true story bonus in 2009, his pay would have increased by 31 percent in 2010. “(2010) was the first time Loepp received long-term incentives for a prior completed performance cy- Doctor’s orders: cle in which he served as CEO for the full cycle,” Stojic said. As with Altarum’s CEO, the sig- lower stress, higher returns. nificant pay increase was “to bring him closer to the market median The medical practice had the familiar hallmarks of an investment quandary. Its physicians were highly educated, for executives in comparably-sized companies,” she said. respected, successful and accustomed to calling the shots. Including where and how to invest wealth—their “Mr. Loepp’s total compensation own, as well as their practice’s 401(k). But being a first rate doctor (or any other high level professional) has been below that of his market peers,” Stojic said. doesn’t always translate into being a first rate wealth manager. So unconfident were some about the The increase in Loepp’s pay also wisdom of their investments that they were checking their stocks between surgeries. reflects the Blues’ strong company performance in terms of member- Talk about short-term positions. ship, technology improvements and cost savings, among other Someone had a sensible idea: call Greenleaf Trust. We met with the doctors, introduced things, she said. them to our client-centric team model, and described in detail our holistic approach to The bonus award opportunity for senior executives is typically wealth management. Within days, many had become clients and we were asked to double-digit, Steinhoff said, and a manage the practice’s 401(k). Over time, we repositioned their investments so fairly large percentage of total compensation. as to properly diversify and better position their portfolios for growth Also, “to go from a zero bonus or potential. All’s well that ends well, you might say, small bonus to a fairly large bonus would be a double-digit increase,” but there’s another chapter to this story. he said. Incentive programs are designed to align executive pay with compa- ny performance, Steinhoff said. “So in down years, pay will be much lower. And in good years, Among the physicians, one’s spouse had aging the payout will reflect the compa- parents whose investments were being handled ny’s performance.” by a national brokerage firm. The account was reasonably well Base pay boost managed by the father, but upon his death the widowed wife was Substantial base pay increases ill-equipped to assume a financial decision-making role. The broker also played a role in keeping non- profit executive compensation showed little empathy, and seemed uninterested in meeting with her grown children. competitive. Again, the sensible idea arose: call Greenleaf Trust. From that day forward, what became apparent was Kathleen Mullins, president of the Edsel & Eleanor Ford House in that our interest in the well being of the family was equal to our interest in the well being of their assets. Grosse Pointe Shores, saw a 16 per- At the family’s request, we carefully transferred their investments from the brokerage firm to Greenleaf cent increase in base pay, and Health Alliance Plan CEO William Alvin got Trust, shielding them from unwarranted fees, maddening bureaucracy and further duress. We adjusted a 21 percent increase, putting his their holdings and overall plan, so that generational trusts could be established for the future benefit of third base compensation at $466,597 and total compensation at $707,537. and fourth generations. Every decision we made was focused on their well being, and they apparently agreed. Detroit Zoo director and CEO The entire family ended up moving their respective assets to Greenleaf Trust. Ron Kagan saw his base pay in- crease by nearly a third in 2010, We’re the first to say not every investment strategy needs a second bringing it to $292,009. A bonus of $25,650 in 2010 also helped bring opinion. But with client satisfaction rates approaching 100%, and our him closer to his peers. unwavering focus on integrity and trust, it is safe to say our clients feel Once again, the increase was in- tended to keep Kagan competitive better about their financial health. Call us if you’d like to learn more. with his peers. We’ll gladly make a house call. “Between 2008 and 2009, the compensation committee of the board did a compensation study, Financial Security from Generation to Generation and Ron’s salary was increased $50,000 based on (that,)” said zoo Communications Director Patri- 34977 woodward avenue, suite 200 birmingham, mi 48009 248.530.6202 877.530.0555 cia Janeway Mills in an email. Sherri Welch: (313) 446-1694, [email protected]. Twitter: @sherriwelch 20120924-NEWS--0013-NAT-CCI-CD_-- 9/20/2012 4:33 PM Page 1

September 24, 2012 CRAIN’S DETROIT BUSINESS Page 13 Finance Extra: Nonprofit Compensation Expect more turnover at the top in coming years

New faces atop the organization- Crain’s top-paid Blouse Jr. at the work. tions, succeeding interim CEO al charts will be a trend in coming nonprofit execu- Detroit Regional Ⅲ Kari Walker Deborah Condino. years at local nonprofits. tives joined Chamber. replaced Leroy Ⅲ Eugene Michalski succeeded The 2012 Michigan Nonprofit their organiza- Ⅲ Thomas Ste- “Michael” Lott Beaumont Health System’s Kenneth Compensation and Benefit Survey tions between vick succeeded Jr. at the South- Matzick, who topped Crain’s 2010 from the Dorothy A. Johnson Center 2008 and 2010. interim CEO gate-based Guid- nonprofit executive list with a $6.6 for Philanthropy at Grand Valley State Four joined in Donald Lopp- ance Center. million deferred compensation University and commissioned by the 2010, the most now and former Between 2008 payout. Michigan Nonprofit Association sug- recent year for executive direc- and 2009, the Ⅲ Thomas Malone, M.D., replaced gests there will be more turnover which mandato- tor Ronald heads of four Iris Taylor as head of Harper-Hutzel coming among top nonprofit exec- Baruah ry financial doc- Klobucar Miller at Eastern Burns other nonprofits Hospital. utives around the state. uments are Michigan Univer- on the list of top- Ⅲ William Alvin succeeded That’s because more than half of available. sity Foundation. paid nonprofit CEOs also changed: Francine Parker as CEO of Health top executives are nearing or past Among the new faces in 2010: Ⅲ Kevin Klobucar replaced Ⅲ Susan Burns took over St. John Alliance Plan. traditional retirement age. Ⅲ Sandy Baruah replaced Richard Jeanne Carlson at Blue Care Net- Providence Health System Founda- — Sherri Welch Of the 391 nonprofit executive directors or CEOs who responded to a question about their age on the survey, 158 (40 percent) said they were age 50-59 and another 100 (26 percent) said they were age 60-69. Change already has been under way. Eight of those listed among u r Executive raises ͞tŽ ůĚ / ĞĐŽŵŵĞŶĚ looking low for 2011; ,ĞĂůƚŚWůuƐ͍ ďƐŽůuƚĞůLJ͘͟ male CEOs do better Industry watchers don’t expect to see much change in compensa- tion trends for local nonprofit ex- ecutives when all of the numbers are in for 2011. Not all nonprofits have reported compensation data for calendar 2011, since they can get extensions tŚĞŶƚŚĞƌŝŵ&ŝƚŶĞƐƐ&ŽƵŶĚĂƟŽŶǁĂƐůŽŽŬŝŶŐ of up to 11 months following the ĨŽƌĂƚƌƵĞƉĂƌƚŶĞƌ͕ǁĞĨŽƵŶĚŝƚŝŶ,ĞĂůƚŚWůƵƐ͘ Our close of their fiscal year. But a sur- vey completed by the Dorothy A. ŵŝƐƐŝŽŶ ŝƐ ĐrĞĂƟŶŐ Ă ŚĞĂůƚŚŝĞr ĐŽŵŵuŶŝƚLJ͕ ĂŶĚ ƐŽ ǁĞ ǁĂŶƚĞĚ Johnson Center for Philanthropy at r r r Grand Valley State University early Ă ŚĞĂůƚŚ ĐŽǀĞ ĂŐĞ Ɖ ŽǀŝĚĞ ǁŚŽ ďĞůŝĞǀĞƐ ƚŚĞ ƐĂŵĞ ƚŚŝŶŐ͘ this year points to static compen- tŝƚŚ ĚŝƐĐŽuŶƚƐ ĂŶĚ ǁĞůůŶĞƐƐ ƉrŽŐrĂŵƐ͕ ĚŝƐĞĂƐĞ ŵĂŶĂŐĞŵĞŶƚ sation at nearly a third of respond- ing nonprofits, and low increases ĂŶĚ ŝŶĐĞŶƟǀĞƐ͕ ƚŚĞLJ ŚĞůƉ ƚŚĞ &ŽuŶĚĂƟŽŶ ůŝǀĞ ŝƚƐ ŽǁŶ ŐŽĂůƐ at others. ĞǀĞrLJĚĂLJ͘/ůŝŬĞƚŽƐĂLJ͕͞dŚĞLJǁĂůŬƚŚĞƚĂůŬ͘͟ The Michigan Nonprofit Associa- tion commissioned the 2012 Michi- gan Nonprofit Compensation and tŽƵůĚŶ͛ƚLJŽƵůŝŬĞƚŚĂƚŝŶLJŽƵƌŚĞĂůƚŚ Benefit Survey. care partner? Of 342 nonprofits responding to questions about their top execu- tives’ 2011 compensation, 152 (44 percent) said they did not give their CEO a raise, and 102 (30 per- cent) gave their CEO a raise of 2 percent to 5 percent. Respondents reported a median pay increase of 2 percent for execu- tives who did receive a raise last year, said Teresa Behrens, direc- tor of special projects, Community Research Institute/Johnson Cen- ter for Philanthropy, via email. “This is virtually unchanged from the 2010 survey, suggesting a three- to four-year plateau in non- profit compensation,” she said. Also of note: On average, male nonprofit CEOs received a bonus of $10,614, and female CEOs re- ceived an average bonus of $6,145. And average pay increases were 3.38 percent for male CEOs and The Right Plan for a Healthier You™ 2.19 percent for female CEOs, ac- cording to the report. The report didn’t provide rea- sons why male executives received /ƐŶ͛ƚ ŝƚ ƟŵĞ LJŽu ŐŽƚ ƚŚĞ WůuƐ͍ Gerry Myers compensation increases at a high- 1-800-530-9071 er rate than women, but did note r ess that a higher percentage of male ǁǁǁ͘ŚĞĂůƚŚƉůuƐ͘ŽrŐ K͕  ŝŵ &ŝƚŶ &ŽƵŶĚĂƟŽŶ CEOs in large nonprofits respond- ed to the survey. ΞϮϬϭϮ ,ĞĂůƚŚWůuƐ ŽĨ DŝĐŚŝŐĂŶ͕ /ŶĐ͘ — Sherri Welch 20120924-NEWS--0014-NAT-CCI-CD_-- 9/20/2012 4:33 PM Page 1

Page 14 CRAIN’S DETROIT BUSINESS September 24, 2012 Finance Extra: Nonprofit Compensation

TOP-PAID NONPROFIT EXECUTIVES Crain’s Detroit Business creates this biennial list of the region’s top-paid nonprofit CEOs or top executives based on tax form research. Figures reflect 2010 calendar year compensation reported in IRS 990 forms. Total compensation includes deferred compensation, benefits and other types of compensation. Top earners are listed by category below. To buy an expanded report, including financial data on more than 90 Michigan nonprofits and their top executives, for $69, visit crainsdetroit.com/lists. Incentive Total Base pay pay compensation Arts, community and culture Graham Beal, Detroit Institute of Arts $351,137 $35,000 $426,699 Anne Parsons, Detroit Symphony Orchestra $270,000 0 $363,591 Rich Homberg, Detroit Educational Television Foundation $285,870 $33,500 $346,509 Patricia Mooradian, The Edison Institute Inc. (The Henry Ford) $264,815 $50,000 $341,158

Business Doug Rothwell, Business Leaders for Michigan $404,355 $25,000 $491,061 Beth Chappell, Economic Club of Detroit $234,520 0 $282,486 Sandy Baruah, Detroit Regional Chamber $256,025 0 $281,426 Mark Tomlinson, Society of Manufacturing Engineers $253,836 0 $273,560 Terry Barclay, Inforum $176,748 $13,124 $201,748

Fundraising foundations W. Clark Durant, The New Common School Foundation $508,000 0 $558,214* Susan Burns, St. John Health Foundation $279,109 $29,866 $331,226 Melinda Callahan, Presbyterian Villages of Michigan Foundation** $140,660 0 $140,660 Ruth Stephens-Collins, Crittenton Hospital Medical Center Foundation $95,873 0 $105,009 * Includes $33,000 in reportable compensation paid by New Common School Foundation, $50,214 estimated other compensation from the foundation and related organizations and $475,000 from Genesis Foundation earned as an independent contractor. ** Callahan left the organization in February 2012; Paul Miller is now president

Grant-making foundations Richard Rapson, The Kresge Foundation $470,000 0 $610,679 Ira Strumwasser, Blue Cross Blue Shield of Michigan Foundation* $180,250 $94,304 $461,368 C. David Campbell, McGregor Fund $332,269 0 $421,474 Mariam Noland, Community Foundation for Southeast Michigan $369,835 0 $421,126 * Ira Strumwasser’s bonus was awarded for his role as vice president of Blue Cross Blue Shield of Michigan

Health care Joseph Swedish, Trinity Health Corp. $1,240,774 $645,161 $3,645,385 Daniel Loepp, Blue Cross Blue Shield of Michigan $1,272,690 $1,276,033 $2,756,687 Nancy Schlichting, Henry Ford Health System $1,201,258 $455,663 $2,116,049 Licensed Beverage Experience Patricia Maryland, St. John Providence Health System $866,565 $931,214 $1,825,510 In Your Corner. Social Services Michael Brennan, United Way for Southeastern Michigan $342,353 $50,000 $456,508 Reid Thebault, YMCA of Metropolitan Detroit $192,368 $184,999 $454,860 Mark Stutrud, Lutheran Social Services of Michigan $262,634 $20,000 $402,034 Barbara Nurenberg, Jewish Vocational Services and Community Workshop $270,212 0 $331,834

Nontraditional/other Kevan Lawlor, NSF International $360,871 $548,454 $1,077,613 Lincoln Smith, Altarum Institute $265,342 $299,700 $1,039,011 Jane McNamara, GreenPath Inc. $416,274 $128,534 $590,883

SNAPSHOTS

Swedish Homberg Maryland Tomlinson Stutrud Loepp Novi-based Trinity Health Corp. $33,500, up from a $16,500 bonus Lutheran Social Services of CEO Joseph Swedish was the the year before. He received a car Michigan’s top executive, Mark highest-paid nonprofit executive in allowance in 2010 as one of his Stutrud, had a reported 34 percent 2010, with total compensation of fringe benefits. increase in pay in 2010 that was $3.6 million, despite a 4.6 percent Patricia Maryland, head of Warren- driven by a supplemental executive Chris Baker decrease in his total compensation based St. John Providence Health retirement plan allocation of year over year. His compensation System, got a 35 percent increase in $106,442, money that he will included a bonus of $645,161 in her total compensation in the form of receive upon retirement. 2010, down from a bonus of a bonus of $931,214 in 2010. Daniel Loepp at Blue Cross Blue $1.6 million in 2009. Mark Tomlinson, executive Shield of Michigan received a Rich Homberg, president and director and CEO of the Dearborn- $1.28 million bonus in 2010, general manager of Detroit based Society of Manufacturing bringing his total compensation to Educational Television Engineers, took a 23 percent pay nearly $2.8 million and making him I Metro Detroit I Grand Rapids I Kalamazoo I Grand Haven I Lansing Foundation/Detroit Public cut in 2010, brought about by poor the second-highest-paid executive Television, received a bonus of business conditions. on Crain’s list. 20120924-NEWS--0015-NAT-CCI-CD_-- 9/20/2012 4:35 PM Page 1

September 24, 2012 CRAIN’S DETROIT BUSINESS Page 15 WDET apologizes to THE LEUKEMIA & LYMPHOMA SOCIETY donors after complaint C NGR ATUL ATES about fund drive’s ethics MICHIGAN CHAPTER’S MAN OF THE YEAR.

BY BILL SHEA aired sporadically throughout the CRAIN’S DETROIT BUSINESS day during the campaign. WDET General Manager J. Detroit public radio station Mikel Ellcessor sent the letter to WDET 101.9 FM quickly apologized donors Aug. 3. to financial donors earlier this He explained that the spots “pre- month after an anonymous inter- sented a range of sounds that typi- nal complaint about the ethics of fy DAT decay and near-failure” as an on-air fundraising campaign. part of WDET’s “Digital Music Ex- As part of an effort to preserve pansion Campaign.” thousands of musical perfor- Ellcessor also laid out the sta- mances and interviews on decay- tion’s ethical concerns. ing digital audio tapes, the station “First, please understand that in late July aired WDET places the short spots that con- highest premium on trasted the sound of My opinion integrity, and would failing tapes with “ never knowingly im- preserved versions. is that this plement a program Ryan LaFontaine However, the au- that would in any LaFontaine Automotive Group dio was not a literal fundraising way mislead a donor depiction of the audio or our listeners. Sec- preservation process, appeal was ond, while there was the station’s general no intent to mislead, manager said, and conducted it is understandable The Leukemia & Lymphoma Society congratulates this year’s winners and all the that prompted con- that our activities cern from a staff forthrightly and could be construed candidates who competed for the title. Their efforts and commitment have made member who thought as misleading, and an impact in the search for cures and effective blood cancer therapies. the radio spots seek- ethically. for this we apolo- ing donations to save ” gize,” he wrote in the www.mwoy.org/mi 888.HELP.LLS the tapes might be Rick Kress, letter to donors.
t
misleading. Gift Planning Associates LLC The university The audio was not hired Shelby Town- before-after of a preserved tape, and ship-based fundraising consultan- didn’t indicate that, but used exam- cy Gift Planning Associates LLC to an- ples of bad tape and preserved tape. alyze the situation and the Explanatory apology letters of- station’s response. fering refunds were sent to anyone “My opinion is that this who donated money while the fundraising appeal was conducted spots aired on WDET, but none forthrightly and ethically,” wrote sought to get their money back, Rick Kress, the firm’s owner, in a said Matt Lockwood, director of Sept. 14 letter to Ellcessor. communications for Wayne State The letter did say the on-air spots University, which holds the sta- “could have been qualified further tion’s license and provides it free with words like ‘this is an exam- space on campus. ple,’ or ‘this simulation demon- “No one wanted their money strates what we need to do.’ ” back; no one felt like they were de- WDET’s campaign to have its ceived,” he said. “We’re totally tapes preserved and cataloged transparent with our donors. It sought donations ranging from $45 was a legitimate concern, and it to $1,000. was addressed immediately.” Among the examples it listed at The station raised $40,000 from wdet.org of in-house studio perfor- 150 donors while the spots were mances preserved included songs played, but it’s unknown how by Tori Amos and Patti Smith much of the money was linked to from 1994, the White Stripes from that specific campaign because the 1999 and Coldplay in 2003. donations aren’t coded that way, Donations make up $1.5 million Lockwood said. of WDET’s $3.3 million annual op- “Some of it just may have been erating budget. listeners making a general gift,” Bill Shea: (313) 446-1626, he said, adding that 10 different [email protected]. Twitter: fundraising spots for the tapes @bill_shea19 Lentine Group opens Detroit base Warren-based Lentine Group network for members of labor opened its Detroit center of opera- unions, Anthony Lentine, vice tions, bringing up to 200 employ- president of LeCom and Golden ees into the city. Dental Plans, said in a statement. The 32,000-square-foot building, Lentine said its Warren head- at 5761 Trumbull Ave. near Wayne quarters will continue to house the State University, now houses company’s bookkeeping services. Lentine Group affiliates LeCom Likewise, other Lentine offices, Utility Contractors Inc., Golden Dental warehouses and network affiliate lo- Plans and UnionCircle.com. cations are not affected by the move. About 100 employees have Joseph Lentine, president of moved. About 50 more have been LeCom and Golden Dental Plans, hired by LeCom, a utility contract- said his father built the Detroit ing company. Another 50 will be site in 1986 to house a former hired by UnionCircle.com, a social Lentine Group company. 20120924-NEWS--0016-NAT-CCI-CD_-- 9/20/2012 4:34 PM Page 1

Page 16 CRAIN’S DETROIT BUSINESS September 24, 2012 BUSINESS DIARY ACQUISITIONS LNR Partners, Miami, Fla. Also, which Argonne’s patented applica- Signature Associates Inc., South- NAME CHANGES Friedman has been retained by tion-specific radio frequency identifi- field, has been awarded the represen- Universal Truckload Services Inc., Luftig & Warren International Inc., 22630 Haggerty Road Associates cation sensor/seal technology and its tation of 28 acres of vacant land at Warren, announced that it will ac- Troy, has changed its name to LLC, Farmington Hills, for the exclu- custom-developed ARG-US software Warren quire LINC Logistics Co., Warren, an West Hamlin and South Adams roads sive leasing and management of Or- suite will be further developed and Strategies Inc. asset-light provider of custom-devel- in Rochester Hills, by Aragona Prop- chards Executive Park, Farmington marketed by Evigia as a comprehen- oped third-party logistics. erties, Clinton Township. Hills, and has been selected as receiv- sive nuclear- and hazardous-material NEW PRODUCTS er of the Onyx Office Plaza in South- handling solution. CONTRACTS EXPANSIONS Billhighway.com, Troy, announced field by CW Capital LLC, Needham, ImageSoft Inc., Southfield, was hired the availability of Billhighway Con- Lakeside Software Inc., Bloomfield Friedman Integrated Real Estate So- Mass. by the Monroe County Road Commis- nect, payment processing software Hills, announced it has opened a re- lutions LLC, Farmington Hills, an- Evigia Systems, Ann Arbor, and the sion, Monroe, to install software to that integrates with existing nonprof- nounced it has been appointed receiv- U.S. Department of Energy’s Argonne generate work orders for road repairs gional headquarters for Europe, the Middle East and Africa, at 59-60 it donor software and accounting, er and manager for Pecos Pointe National Laboratory, Argonne, Ill., fi- using electronic forms; Fresno payroll, banking and database sys- Apartment Homes, Las Vegas, by nalized a licensing agreement under County, Calif., to undertake a docu- Thames St., Windsor, Berkshire, UK. Website: www.lakesidesoftware.com. tems. Billhighway Connect inte- ment redaction project in conjunction grates fully with Salesforce.com and Market Strategies International, with Extract Systems in the county’s is available via the Salesforce AppEx- Livonia, has launched Market Strate- environmental health division; Ing- change. Website: billhighway.com. ham County Probate Court, Lansing, gies Qualitative, anaffiliated consul- to convert from a legacy application to tative insight boutique. Fifth Third Bank, Southfield, has launched RevLink Collect patient ImageSoft’s iJustice paper-on-demand Greek Islands Coney Restaurants, payment receivables software for platform; Ohio Department of Veter- Birmingham, West Bloomfield Town- hospitals and health care organiza- ans Services, Columbus, Ohio, to in- ship and Farmington Hills, opened a stall an OnBase document manage- new location at 306 S. Main St., Ply- tions. Website: www.53.com. ment system in its human resources mouth. Telephone: (734) 335-6303. The Murray Percival Co., Auburn department; and Ohio Environmental Website: Hills, a national electronics distribu- Protection Agency, Columbus, to im- www.greekislandsconey.com. tor, announced the addition of IBL plement an enterprise-wide OnBase Vapor Phase soldering to its lineup of document storage and retrieval sys- JOINT VENTURES printed circuit board assembly and tem with public portals. repair capital equipment offerings. Kelly Services Inc., Troy, and Temp Advomas, Troy, a Medicaid assis- Website: www.murraypercival.com. tance company, has named The Holdings Co. Ltd., Tokyo, have Creative Edge Nutrition Inc., Madison Berline Group Inc., Bloomfield Town- formed a joint venture, TS Kelly ship, as its agency of record for all Workforce Solutions, Hong Kong. Heights, a nutritional supplement marketing communications. company, announced that its brand Science Defined Nutrition has formu- The Whitehall Group LLC, Troy, a MOVES lated, designed and developed three management firm, entered into an ReGroup Advisors Inc. moved from new products, Thyrozine, Inova and agreement with the McLean Group, 2000 Town Center, Suite 1900, to 24901 Hype, for exercise enthusiasts. Web- McLean, Va., a middle-market invest- Northwestern Highway, Suite 609, ment bank, to further expand its U.S. Southfield. site: sciencedefinednutrition.com. market client service capabilities. Dads And Moms of Michigan, a NEW SERVICES Lambert, Edwards & Associates Inc., 503(c)(3) nonprofit family court edu- Detroit, an automotive public rela- cation organization for metro De- Positive Creative Infusion Consulting tions and investor relations firm, an- troit, moved from Waterford Town- LLC, Novi, a marketing and sales con- nounced it has added Search Optics ship to 7285 Orchard Lake Road, West sulting firm, has launched a new Inc., San Diego, a national digital Bloomfield Township. Telephone: website: www.positivecreativeinfu- marketing firm, to its roster of (313) 492-7143. Website: www.dad- sion.com. clients. sandmomsofmichigan.org. Automotive Industry Action Group, Southfield, introduced the Powering Performance on Demand member- ship program, a membership benefits package designed to provide automo- tive manufacturers and suppliers easier access to the tools needed to Presented by boost their rebound from the reces- sion by educating their workforce, in- creasing quality and improving costs in the global supply chain. Website: www.aiag.org. NEW SERVICES YOU’RE INVITED ProQuest LLC, Ann Arbor, is expand- ing its digital national security archive with newly declassified files. Japan and the United States: Diplo- CLIMBING THE BRIC WALL— matic, Security, and Economic Rela- tions, Part III, 1961-2000 continues a OPPORTUNITIES WITH BRAZIL, series that provides digital access to memoranda of conversations be- tween U.S. presidents and their RUSSIA, INDIA AND CHINA Japanese counterparts, presidential decision documents, intelligence analyses, and intergovernmental communications central to U.S. for- OCTOBER 16 2012 eign policy, intelligence and security issues. Website: www.proquest.com. Join us on-site at UHY’s Farmington Hills office or on-line via webcast STARTUPS On-site Program On-line Webinar Nykanen Dorfman PLLC, a full-service 7:30AM–12:30PM EST 8:00AM–11:45AM EST law firm specializing in real estate, litigation, property tax and business “The economic growth has issues, at 33493 W. 14 Mile Road, Suite 100, Farmington Hills. Telephone: Please join us as we convene a panel of decelerated in the BRIC (248) 629-0880. Website: www.nyka- nendorfman.com. experts to discuss inbound investments countries due to a slowing into the BRIC countries including a general overview of the business climate and global economy but there are economic conditions, opportunities and still tremendous opportunities DIARY GUIDELINES potential threats of doing business in the country, tax issues and considerations, to invest as these countries Send news releases for Business pitfalls when starting a business in the Diary to Departments, Crain’s account for more than 25% Detroit Business, 1155 Gratiot Dennis Petri, CPA country, employment considerations, entity Ave., Detroit, MI 48207-2997 or Partner & International Liaison structure and tax planning considerations. of global GDP. send e-mail to cdbdepartments@ crain.com. Use any Business Diary item as a model for your release, and look for the appropriate REGISTRATION category. Without complete Pre-registration for this complimentary program is required. Complimentary breakfast” and lunch will be provided. Space is limited. information, your item will not run. Photos are welcome, but we cannot Multiple registrations are welcome. To reserve your seat contact Courtney Gray via email [email protected] or phone 586 843 2633. guarantee they will be used. Please declare either on-site or on-line. Webinar log-in instructions will be released to registered attendees at a later date. 20120924-NEWS--0017-NAT-CCI-CD_-- 9/20/2012 4:01 PM Page 1

September 24, 2012 CRAIN’S DETROIT BUSINESS Page 17

CALENDAR TUESDAY Showplace, Novi. Free ESD members, tor of Automotive News; and others. is a network of professionals repre- ARCHITECTS CELEBRATE $15 nonmembers (includes a one-year MGM Grand, Detroit. $275 includes senting all industries, dedicated to SEPT. 25 free membership to ESD; offer good meals, sessions and awards reception. promoting the advancement of for new members only). Contact: (248) women in the workplace through in- Opportunities in the Automotive Indus- 40-YEAR DESIGN LEGACY Contact: Alfreda Weathers, (313) 842- 353-0735; website: www.esd.org. 3883; website: www.rainbowpush.org. novative thinking and sharing of best try for Software and Internet Entrepre- The National Organization of practices. Meritor Inc., Troy. Free neurs. 5-8 p.m. SI Detroit. With John Minority Architects will celebrate members, $25 nonmembers. Contact: Hater, GM Ventures; Chris Stallman, Debate on “Protect Our Jobs” ballot its 40th anniversary by hosting its measure. 5:30-8:30 p.m. Oct. 2. Labor and DiversityNEXT Kick-Off Event. 7:30-10 (877) 633-3500; website: www.inforum- Fontinalis Partners; Massimo Baldini, 2012 national conference, A a.m. Oct. 4. Inforum. DiversityNEXT michigan.org. Livio Connect; and others. Hosted by Employment Relations Association. A Legacy Driven by Design, at the Emily Doerr, manager of Small Busi- discussion of the proposed amendment ness Programs at the Detroit Regional Westin Book Cadillac, Detroit. to the Michigan Constitution. With Rich Chamber. Wayne State University Hosted by the NOMA Detroit Studley, president-CEO of Michigan College of Engineering. Free. Register chapter, the event will include Chamber of Commerce, and Ken Brock, at www.sidetroit.com. presentations, networking events, manager of the Campaign to Protect tours of Detroit architectural Working Families. The Southfield landmarks, a masquerade ball at Westin Hotel. $40 LERA members; $50 WEDNESDAY the Charles H. Wright Museum and nonmembers. Contact: (248) 355-1744; SEPT. 26 an awards banquet. email: lera @cousenslaw.com; website: Entry is $275 for NOMA members, leraweb.org. Register at www. Commercialization Breakfast Panel. $375 for nonmembers, $175 for leraweb.org/detroit-reservations by 8:30-10:30 a.m. Sept. 26. Macomb-OU guests and $160 for students. Sept. 27. Incubator. With Technology High- way’s Francis Criqui, principal and Events are scheduled for 8 a.m.-9 PMO; Robert Horvath, vehicle launch p.m. Oct. 17, 7:30 a.m.-9:30 p.m. National Encore Entrepreneur Mentor lead; James Masiak, principal and Oct. 18, 7:30 a.m.-6 p.m. Oct. 19 Day. 9-11:30 a.m. Oct. 2. AARP, U.S. product technology; Margaret Palmer, and 8 a.m.-10 p.m. Oct. 20. Small Business Administration. business development officer; and Deadline for hotel rooms is Sept. Opportunity for entrepreneurs age 50- John Rupp Sr., principal and produc- 25. For details and to register, visit plus to connect with mentors sharing tion processes. Macomb-OU Incubator www.noma.net. small-business experience. Tech- at Velocity Center, Sterling Heights. Town, Detroit. Free. Limited to 50 par- Free. Contact: Joan Carleton, (586) ticipants. RSVP by Sept. 26. 884-9324; email: [email protected]. Contact: (877) 926-8300; website: Top of Troy: Troy’s Women of www.aarp.org/startabusiness. Influence. 8-9:30 a.m. Troy Chamber of Open Pitch Night. 6-8 p.m. TechTown Commerce, Detroit. First 15 entrepreneurs to sign Health Alliance Inno-Vention Conference. 6:30-8:30 up onsite get three minutes to pitch a Plan. With Hort- p.m. Oct. 3, 7:30 a.m.-4 p.m. Oct. 4, and Detroit-based business followed by ensia Neely Alber- 9-11 a.m. Oct. 5. Medical Main Street. two minutes open Q&A. Centaur Bar, tini, owner, presi- With L. Brooks Patterson, Oakland Detroit. $5. Contact: Diane Love- dent and Suvada, (313) 483-1302, email: County Executive, Thomas Novelli, chairman, Global Medical Device Manufacturers Asso- [email protected], website: LT; Maureen Hu- ciation, and others. Royal Park Hotel, www.openpitchnight.eventbrite.com. ber, CFO and Rochester. $95 includes all events. managing direc- tor, Trubiquity; Contact: Nicole Thomson, (248) 858- THURSDAY Ronia Kruse, pres- 7995; email: [email protected]; website: medicalmainstreet.com. SEPT. 27 Albertini ident and CEO, OpTech LLC; Crain’s CIO Conference. 2-7 p.m. Anna Maiuri, principal and energy, en- Global Automotive and Energy Summit Crain’s Detroit Business. With David vironmental and regulatory practice — Economic Parity: One Voice, One Behen, CIO, state group leader, Miller, Canfield, Pad- Goal. 8 a.m.-9 p.m. of Michigan; dock and Stone PLC; moderated by Oct. 3, 9 a.m.-1 Steve Carrington, Julie Garrisi, manager government p.m. Oct. 4. Rain- senior vice presi- and community relations, Meritor. dent and CIO, MSU Management Education Center, bow Push Auto- Valassis Commu- Troy. $18 Troy Chamber members, $23 motive Project. nications Inc.; nonmembers. Contact: Jaimi Brook, With Steve St. An- Greg Davidson, (248) 641-8151; email: theteam@troy gelo, vice presi- CIO, Urban Sci- chamber.com; website: www.troy dent of manufac- ence; and others. chamber.com. turing, Totoya The Fillmore, De- Motor Engineer- troit. $99 CDB ing & Manufactur- subscribers, $85 Behen Tremblay ing N.A.; Diana in groups of 10 or COMING EVENTS Tremblay, vice more, $125 nonsubscribers, $123.50 Fall Engineering & Technology Job president of manufacturing, General with CDB subscription offer. Contact: Motors Co. North America; Judge Greg Kacey Anderson, (313) 446-0300; email: Fair. 2-7 p.m. Oct. 1. Engineering Soci- Mathis; Peter Brown, publisher and edi- [email protected]; website: ety of Detroit. Suburban Collection www.crainsdetroit.com/events.

Design & Construction Trends in the Automotive Industry. 11 a.m.-2:30 p.m. Society for Marketing Professional Services Michigan, McGraw-Hill Con- struction. With Glenn Hoffrichter, Chrysler LLC; Roger Gaudette, Ford Land; MariKay Scott, General Motors Co., Wayne Bills, SmithGroupJJR; and Rick Haller, Walbridge Aldinger. Mod- erated by Ron Worth, SMPS national president and CEO. TechShop Detroit, Allen Park. SMPS member $55, non- member $90, student $30. Contact: Want to grow Start with bankers who Laura Westphal, (313) 442-8493; email: [email protected]; website: www.smps-mi.org. your business? grew up in business.

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Page 18 CRAIN’S DETROIT BUSINESS September 24, 2012

CRAIN'S LIST: LARGEST ARCHITECTURAL FIRMS Ranked by 2011 revenue

Number of registered $ value Company Revenue architects of projects Address ($000,000) local/ ($000,000) Rank Phone; website Top local executive(s) 2011/2010 national 2011/2010 Notable projects Detroit area SmithGroup Inc. (SmithGroupJJR) Jeffrey Hausman $177.1 42 $2,950.0 Comerica Park, Detroit Institute of Arts renovation and expansion, Detroit Medical Center Sinai 500 Griswold St., Suite 1700, Detroit 48226 Detroit office director $179.7 227 $3,000.0 Grace Hospital EDICU and Radiology expansion, Detroit Metropolitan Airport McNamara Terminal, (313) 983-3600; www.smithgroupjjr.com and Carl Roehling Ford Field, Grace Lake Corporate Center, Guardian Building Wayne County Corporate office 1. president and CEO relocation, Henry Ford Health System Innovation Institute, Karmanos Cancer Institute Cancer Research Center and Walt Breast Center, Oakland University Human Health Building, United Way for Southeastern Michigan headquarters relocation Ghafari Inc. Yousif Ghafari 123.0 18 1,500.0 Various projects for Ford, General Motors, College for Creative Studies, Wayne State University, 2. 17101 Michigan Ave., Dearborn 48126 chairman 87.5 37 1,000.0 Schoolcraft College, Cranbrook Educational Community, U.S. General Services Administration (313) 441-3000; www.ghafari.com URS Corp. Ronald Henry 38.6 NA NA NA 3. 27777 Franklin Road, Suite 2000, Southfield vice president and 45.2 NA 650.0 48034 managing principal (248) 204-5900; www.urscorp.com Harley Ellis Devereaux Corp. Michael Cooper 34.2 28 500.0 Detroit Medical Center Cardiovascular Institute, Crittenton Hospital Medical Center, Wayne State 4. 26913 Northwestern Hwy., Suite 200, Southfield managing principal, 36.9 65 500.0 University Chemistry Building, Oaklawn Hospital surgery addition, Mercy Hospital surgery addition, 48033 Detroit office U.S. EPA - Heavy Vehicle Test Cells (248) 262-1500; www.harleyellisdevereaux.com Albert Kahn Family of Cos. (Kahn) Charles Robinson 28.0 31 1,000.0 Detroit Public Schools East English Village Preparatory Academy, Detroit East Riverfront RiverWalk, 5. 7430 Second Ave., Detroit 48202 president and CEO 22.2 33 750.0 Cobo Center expansion and renovation program, Detroit Zoo Penguin & Puffin Conservation Center (313) 202-7000; www.albertkahn.com Hobbs + Black Associates Inc. William Hobbs 18.5 22 915.0 University of Michigan South Hospital, St. Mary Mercy Hospital 6. 100 N. State St., Ann Arbor 48104 president, CEO and 15.6 26 897.0 (734) 663-4189; www.hobbs-black.com COO Orchard, Hiltz & McCliment Inc. John Hiltz 18.2 1 25.0 Rochester Hills salt storage facility, Farmington Hills water tower, Belleville Yacht Club, Scio 7. 34000 Plymouth Road, Livonia 48150 president 21.3 5 51.0 Township pump station (734) 522-6711; ohm-advisors.com Rossetti Associates Inc. Matthew Rossetti 16.0 13 650.0 Cobo Center, Ford Field, Palace of Auburn Hills, Compuware Building, Domino's Pizza World 8. 2 Towne Square, Suite 200, Southfield 48076 president and CEO 15.0 NA 620.0 Resource Center, Greektown Casino Hotel, Wayne State University Welcome Center (248) 262-8300; www.rossetti.com Integrated Design Solutions LLC Paul Stachowiak 15.3 NA 350.0 Detroit Medical Center Pediatric Specialty Center, Chrysler Great Lakes Business Center, University 9. 1441 W. Long Lake Road, Suite 200, Troy president 14.7 NA 320.0 of Michigan Law School South Hall, Michigan State University Eli and Edythe Broad Art Museum, 48098 University of Michigan Alice Lloyd Hall, Michigan State University Wells Hall addition (248) 823-2100; www.ids-troy.com Quinn Evans Architects Inc. Larry Barr 12.5 12 205.0 Sherbrooke, Michigan Central Station, Woodward Garden Venue, WSU McGregor Pool 10. 219 1/2 N. Main St., Ann Arbor 48104 president and CEO 13.4 31 225.0 (734) 663-5888; www.quinnevans.com

This list of leading architectural firms is an approximate compilation of the largest such firms in Wayne, Oakland, Macomb, Washtenaw and Livingston counties. It is not a complete listing but the most comprehensive available. Unless otherwise noted, information was provided by the companies. Companies with headquarters elsewhere are listed with the address and top executive of their main Detroit-area office. Actual revenue figures may vary. NA = not available. LIST RESEARCHED BY BRIANNA REILLY ■ An expanded version of this list can be purchased at crainsdetroit.com/lists.

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September 24, 2012 CRAIN’S DETROIT BUSINESS Page 19

CRAIN'S LIST: LARGEST INFORMATION TECHNOLOGY COMPANIES Ranked by 2011 revenue

Full-time Company Revenue Revenue local Address ($000,000) ($000,000) employees Percentage revenue from IT industry Rank Phone; website Top executive(s) 2011 2010 Jan. 2012 segment Type of business Compuware Corp. Peter Karmanos Jr. $1,009.8 $928.9 1,994 79 R&D computer software Software and professional services 1. 1 Campus Martius, Detroit 48226 executive chairman 21 sophisticated computer services (313) 227-7300; www.compuware.com Stefanini TechTeam Inc. Antonio Moreira 750.0 600.0 1,000 100 sophisticated computer services Offshore, onshore and nearshore IT managed services, systems 2. 27335 W. 11 Mile Road, Southfield 48033 CEO, North America integration, consulting and strategic staffing (800) 522-4400; www.stefanini.com/EN and Asia-Pacific Syntel Inc. Bharat Desai 642.4 532.1 85 IT outsourcing, knowledge process outsourcing, application 525 E. Big Beaver Road, Suite 300, Troy 48083 chairman development and management, e-business services, architecture 3. (248) 619-2800; www.syntelinc.com Prashant Ranade consulting and support, IT infrastructure management, cloud president and CEO computing, data warehousing and business intelligence, application testing, migration solutions Logicalis Inc. Vince DeLuca 585.0 638.6 B 270 International provider of integrated information and communications 4. 34505 W. 12 Mile Road, Suite 210, CEO technology solutions and services Farmington Hills 48331 (866) 456-4422; www.us.logicalis.com Tata Technologies Ltd. Patrick McGoldrick 275.0 150.0 625 Engineering and design, product lifecycle management and product 5. 41050 W. 11 Mile Road, Novi 48375-1302 CEO development IT services, proprietary software and knowledge- (248) 426-1482; www.tatatechnologies.com Warren Harris management software systems president and COO Vision Information Technologies Inc. David Segura 239.0 230.0 362 IT managed services, IT staffing and vendor management CEO 6. (VisionIT) Christine Rice 3031 W. Grand Blvd., Suite 600, Detroit 48202 president (877) 768-7222; www.visionit.com Strategic Staffing Solutions Inc. Cynthia Pasky 220.0 205.0 683 Consulting and staff augmentation services, vendor management 7. 645 Griswold St., Suite 2900, Detroit 48226 president and CEO programs, executive search services, call center technology and a (313) 596-6900; www.strategicstaff.com domestic IT development center Altair Engineering Inc. James Scapa 212.0 172.0 524 Global software and technology, engineering simulation, advanced 8. 1820 E. Big Beaver Road, Troy 48083 chairman and CEO computing, enterprise analytics and product development (248) 614-2400; www.altair.com CareTech Solutions Inc. James Giordano 157.8 154.0 600 Information technology and Web products and services for more than 9. 901 Wilshire Drive, Suite 100, Troy 48084 president and CEO 200 U.S. hospitals and health care systems (248) 823-0800; www.caretech.com Acro Service Corp. Ron Shahani 133.0 130.0 1,207 5 product sales and leasing Staff augmentation (IT, engineering, office support), outsourcing and IT 10. 39209 W. Six Mile Road, Suite 250, Livonia 48152 president and CEO 45 R&D computer software and engineering consulting (734) 591-1100; www.acrocorp.com 40 sophisticated computer services 10 training and product support Urban Science Applications Inc. James Anderson 125.0 106.0 306 40 R&D computer software Global retail marketing consulting 11. 400 Renaissance Center, Suite 2900, Detroit 48243 president and CEO 50 sophisticated computer services (313) 259-9900; www.urbanscience.com 10 training and product support HTC Global Services Inc. Madhava Reddy 116.0 113.0 180 Application development and maintenance, business process 12. 3270 W. Big Beaver Road, Troy 48084 president and CEO management, document and content management and PMO services (248) 786-2500; www.htcinc.com Iconma LLC Claudine George 103.2 88.7 124 Professional staffing and project-based services 13. 850 Stephenson Hwy., Suite 612, Troy 48083 managing member (888) 451-2519; www.iconma.com Diversified Computer Supplies Inc. Joseph Hollenshead 98.5 89.2 43 Distributor of imaging/printer supplies 14. 4435 Concourse Drive, Ann Arbor 48108 chairman, president (800) 766-5400; www.dcsbiz.com and CEO Tweddle Group Inc. Andrew Tweddle 85.0 65.0 350 Publisher of automotive OEM owners and service information 15. 24700 Maplehurst, Clinton Twp. 48036 president and CEO (586) 307-3700; www.tweddle.com BlueWater Technologies Group Inc. Suzanne 76.0 65.0 140 Design, engineering and implementation of custom technology 16. 24050 Northwestern Hwy., Southfield 48075 Schoeneberger solutions for live events, video conferencing, experiential marketing, (248) 356-4399; www.BlueWaterTech.com president interactive displays, lead generation capabilities Synova Inc. Tim Manney 74.2 70.0 250 Custom software development, maintenance and support, SAP 17. 1000 Town Center, Suite 700, Southfield 48075 president Technologies, SAP Enterprise applications, SAP performance (800) 799-9625; www.synovainc.com management, mobile applications development for financial and telecom verticals, cloud enabling of organizational resources Dass International Inc. (Netlink) Dilip Dubey 71.5 28.4 90 Information technology, supply chain services and solution and 999 Tech Row, Madison Heights 48071 CEO and co-founder business process solutions 18. (248) 204-8800; www.netlink.com Anurag Shrivastava CTO, president and co-founder Epitec Inc. Jerome Sheppard 51.0 37.6 750 Technology staffing and computer services 19. 24800 Denso Drive, Suite 150, Southfield 48033 CEO (248) 353-6800; www.epitecinc.com Josie Sheppard president Jawood Business Process Solutions LLC Lynn Mustazza 48.7 35.5 288 5 product sales and leasing Information technology and business process consulting solutions 20. 32270 Telegraph Road, Suite 200, Bingham Farms president and CEO 85 sophisticated computer services 48025 5 training and product support (248) 833-8000; www.jawood.com 5 other Lowry Computer Products Inc. Michael Lowry 44.0 40.0 77 50 product sales and leasing IT systems integrator 9420 Maltby Road, Brighton 48116 president and CEO 10 R&D computer equipment 21. (800) 918-2672; www.lowrycomputer.com 10 R&D computer software 10 sophisticated computer services 20 training and product support Modis Inc. Carl Lucke 41.5 33.4 420 100 other IT staffing 22. 3000 Town Center Drive, Suite 2600, Southfield vice president 48075 (248) 357-4200; www.modis.com Plex Systems Inc. Mark Symonds 40.4 31.2 235 Develops software for manufacturing industry 23. 1731 Harmon Road, Auburn Hills 48326 president and CEO (248) 391-8001; www.plex.com Secure-24 LLC Matthias Horch 40.0 28.0 250 100 sophisticated computer services Managed hosting, enterprise cloud computing and IT outsourcing for 26955 Northwestern Hwy., Southfield 48033 co-CEO and large organizations and midmarket companies 24. (800) 332-0076; secure-24.com co-founder Mike Jennings co-CEO FutureNet Group Inc. Perry Mehta 32.6 33.9 64 General construction, environmental, technology 25. 12801 Auburn St., Detroit 48223 president and CEO (313) 544-7117; www.futurenetgroup.com

This list of leading computer companies is an approximate compilation of the largest such companies in Wayne, Oakland, Macomb, Washtenaw and Livingston counties that research, design, manufacture or invent equipment or software, plus companies that provide sophisticated computer services such as systems design, programming and information retrieval. It is not a complete listing but the most comprehensive available. Companies based elsewhere are listed with the address and top executive of their main Detroit-area office and are ranked by their revenue in the five-county area. Unless noted, the companies provided the information. Crain's estimates are based on industry analyses and benchmarks, news reports and a wide range of other sources. Actual revenue figures may vary. NA = not available. B Fiscal year March 2010-February 2011. LIST RESEARCHED BY BRIANNA REILLY 20120924-NEWS--0020-NAT-CCI-CD_-- 9/20/2012 4:03 PM Page 1

Page 20 CRAIN’S DETROIT BUSINESS September 24, 2012

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

ADVERTISING Matt Jones to social media manager, J.R. Thompson Co., Farmington Hills, Kyle Wittbrodt to director of opera- IN THE SPOTLIGHT from KraftMaid brand manager, Mas- tions, Pals Investment Group I LLC, Oakland County Community Mental co Cabinetry, Ann Arbor. Waterford Township, from office man- ager, Monthly Shopper Inc., Water- Health Authority, Auburn Hills, has ford Township. Monthly Shopper was named Willie Brooks Jr. CFO. He NONPROFITS acquired by Pals Investment. succeeds Rick Victoria Edwards Grove, who to director of de- EDUCATION now is the velopment, Kick — agency’s The Agency for Mark Barteau to director of LGBT African director, Universi- finance-audit ty of Michigan En- Americans, De- and troit, from cooper- ergy Institute, ative housing Ann Arbor, from compliance. manager, Town senior vice Brooks, 51, provost for re- had been a Square Coopera- search and strate- business tive Inc., Detroit. gic initiatives, Brooks analyst for Newark, Del. Jawood Edwards REAL ESTATE Management Associates, Bingham Ronald Henry to senior vice president, HEALTH CARE Farms. He is an adjunct professor health care sector, Plante Moran Cre- Barteau Santhosh Madha- at Walsh College, Troy. sa, Southfield, from managing princi- van, M.D. to medical director, inpatient Brooks earned a Bachelor of Arts pal, Michigan region, URS Corp., rehab unit, DMC Rehabilitation Insti- in psychology from William Tyndale Southfield. tute of Michigan, Detroit, from private College, Farmington Hills, and a practice, Southfield. Master of Arts in economics and SUPPLIERS Master of Science in finance from Kathleen Schroeder to vice president, MARKETING Walsh College. information services and support pro- Lisa Blackwell to director of account duction, R.L. Polk & Co., Southfield, services, health care division, DBA Huron Valley Schools Board of Educa- from senior director of European in- Worldwide, Rochester, from president, tion, Highland Township. formation systems.

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September 24, 2012 CRAIN’S DETROIT BUSINESS Page 21 Visteon to sell climate control business to joint venture Halla BY DUSTIN WALSH rently, Visteon attributes $800 mil- said. Halla will become the No. 2 rate communications, wrote in an to raise $223 million to buy Vis- CRAIN’S DETROIT BUSINESS lion from its own engineering, he player in the global automotive email: “There will likely be some teon’s stake, sources told said. climate business with a 13 percent recalibration of our U.S. presence Bloomberg. Visteon Corp. announced last Visteon said market share, Leuliette said. as we proceed with this plan. However, Leuliette said that de- week that it would sell its climate the transaction Visteon owns 70 percent of Hal- We’ve not announced any specific spite media reports, he has heard control business to its Halla Cli- would achieve la — which will become Halla-Vis- changes with regard to our corpo- little from Mando on acquiring mate Control Corp. joint venture for its long-term ob- teon Climate Group. The business rate offices in the U.S.” Visteon’s stake. cash as South Korea’s Mando Corp. jective of con- will be led by the Korean manage- Mando continues to say it is “It’s a solid and capable busi- plans an initial public offering to solidating its ment team and traded on the Korea pursuing Visteon’s stake in Halla ness,” Leuliette said. “But as I’ve acquire Visteon’s stake. climate opera- Exchange (KRX). The transaction and to do so established a Chinese said, we’re not in the business of In a conference call with in- tions into one is expected to close in the first holding company, Mando China making car parts; we’re in the vestors Wednesday, interim CEO company. The quarter of 2013, Leuliette said. Holdings Ltd., listed on the Hong business of making money from Tim Leuliette said the focus is on move would im- It’s unclear whether Visteon Kong Stock Exchange, Bloomberg car parts, and this business does Leuliette consolidating Visteon’s climate prove how the would maintain climate control reported Thursday. not fit.” control operations into those of business interacts with global cus- staff at its Van Buren Township Mando plans to sell a 25 percent Dustin Walsh: (313) 446-6042, Halla, which together account for tomers and increase corporate liq- headquarters. stock equivalent of its company in [email protected]. Twitter: $4 billion in sales annually. Cur- uidity, the investors’ presentation Jim Fisher, director of corpo- a November IPO with intentions @dustinpwalsh REAL ESTATE MARKET PLACE

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Page 22 CRAIN’S DETROIT BUSINESS September 24, 2012 Sewers: Bills target aging systems ■ From Page 1 the chronic problems, and the Mekjian said. “And that’s just to has not yet determined the new chronic problems are the most ex- understand the condition your sys- loan program structure but would pensive ones. It’s kind of like we’re tem is in.” do so after the bills’ passage. always chasing our tail,” said The new grant program set up The legislation doesn’t prescribe Chuck Hersey, director of the plan by the legislation could also be how the $654 million would be and policy group at the Southeast used for development of manage- divvied up between the new loan Michigan Council of Governments and ment plans to treat stormwater, or and grant programs. a member of an advisory commit- to plan and design any part of a The advisory committee recom- tee that last September made rec sewage collection and treatment mended about half of the money go ommendations that form the basis system or a stormwater collection to each use, but the state has flexi- for the legislation. SEMCOG also or treatment project. The state cur- bility to allocate the money as it has led in the bills’ development. rently has a much smaller grant sees fit. “What we need to do is start get- program for some of these purpos- Butler said the state could also What’s that ting in front of the train and invest es but not asset management, and put more money into the current some money in asset manage- grants in the current program are revolving-fund program, should ment,” Hersey said. limited to $1 million. federal support decrease. The DEQ ticking sound? Stakeholders in the legislation The new program has a $2 mil- does not yet know when the new say a big challenges in local sewer lion cap; grants of up to $1 million grant and loan programs would be Given the changes in the financial infrastructure is a lack of good would be available to cover up to operating. marketplace, your life insurance policies data about the health of most local 90 percent of a municipalities’ In 2001, a sewer infrastructure- sewer systems; a comprehensive costs, and an additional $1 million needs report from SEMCOG pro- may not be performing as intended. Southeast Michigan report hasn’t in grant funding could cover up to jected that over the subsequent 30 been developed for a decade. But 75 percent of community costs. years an additional $14 billion to A periodic analysis and review can: they say local asset management The bills would also provide for $26 billion would be needed in programs, encouraged in the legis- a state-designed loan program that Southeast Michigan alone to main- • Save premium dollars lation, would help. would make loans for construction tain and improve sewage collec- Under House Bills 5673-5676, ap- of sewer pollution control projects tion and treatment systems. • Improve, extend or guarantee proved by House committee last or needed upgrades. The program Those numbers may well now be your coverage week, communities could get is designed to be less cumbersome higher, Hersey said. • Generate cash grants for a variety of tasks, in- than an existing revolving fund Tiffany Watrous, director of gov- cluding development of a program that provides low-interest loans to ernment relations at the Detroit Re- • Make sure your plan is on track that would assess a system’s condi- municipalities and authorities for gional Chamber, said the legislation tion, needs, potential funding and such purposes. “will stimulate investment into schedule for improvements. That state revolving fund, which improving these sewer systems It’s an approach that Gov. Rick is subsidized by federal funds, …which is something we support.” Call for a complimentary analysis and review. Snyder backs. In his October special state match, and loan repayments, Also in support is the Michigan message on infrastructure, Snyder has been criticized for loan appli- Infrastructure and Transportation As- noted the recommendations of the cation regulations and other com- sociation, which has for years advisory committee and said he sup- ponents that some say can be time- pointed out the need to invest ports changes in the future invest- consuming and costly but required more money in sewer infrastruc- BIRMINGHAM, MI 248.731.9500 WWW.SCHECHTERWEALTH.COM ment of bond dollars — including a by virtue of the federal support. ture and fix aging underground grant program to reduce long-term For example, Hersey said, appli- water and sewer systems. costs through asset management cants must address and satisfy a Lance Binoniemi, MITA vice and stormwater programs. long checklist of issues, and many president of government affairs, Gary Mekjian, director of public of them may be unrelated to the said Michigan’s underground sys- services for the city of Farmington project work, like whether there is tem “is sort of the unknown prob- Hills, said it’s “like knowing your disruption of archeological or his- lems of our infrastructure. It’s UPCOMING car, and what’s the condition of torical significance. easy to see a pothole or a deterio- your car. If you don’t know what The idea is that the state could set rating bridge, but quite often we condition your assets are in, what its own terms for a separate loan don’t see the underground prob- PARTNER EVENTS condition your sanitary sewer is program that utilizes only state lems that we have.” in, then how can you possibly bond money, and it could have few- Binoniemi said MITA hopes the manage any kind of a capital im- er regulations and be easier for com- bills will pass the Legislature by Crain’s partners with a variety of provement program?” munities to access. The larger cur- the end of the year and that pro- organizations on events and Mekjian is also a member of the rent revolving fund would still exist, grams will be operating for next special subscription offers for their members. water, infrastructure and environ- providing another financing option. year’s construction season. ment committee at the Municipal Sonya Butler, chief of the re- The House bills await action by Please visit their websites below. League, which supports the legisla- volving loan section in the Michi- the full House; a similar Senate tion. He said Farmington Hills is gan Department of Environmental package, SBs 1155-1158, received Employment Strategy Conference assessing its sewer system, Quality’s resource management their first committee hearing last Senior executives are invited to join Warner’s HR through a video inspection oppor- division, said the administration week. attorneys for an afternoon of problem solving, tunity provided by Oakland Coun- ty’s flushing and cleaning of the networking and discussion. In this complimentary city system, which the county op- program, we’ll review and discuss the best and erates and maintains. THE MILLER LAW FIRM most cost-effective ways to provide benefits to your But other communities may not workforce and attract new talent, all while adhering be able on their own to fund the a professional corporation to ever-changing regulations and, most importantly, costs of hiring a contractor to flush protecting your company’s reputation and bottom line. and clean the sewers, videotape Oct. 2 • 11:30 a.m. - 5 p.m. The Townsend, Birmingham conditions and provide reports — Complimentary. Registration required.Visit activities that could add up to sev- WNJ.com/2012_EmpConf or call 616.752.2326 eral hundred thousand dollars,

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September 24, 2012 CRAIN’S DETROIT BUSINESS Page 23 Hospitals: Systems on prowl Minerals: Rules raise costs ■ From Page 1 ■ From Page 3 pensation market stimulates not only for- for-profit contingent, has “no deal on the “The cost of compliance is just a really address the issue. profits to start looking for acquisitions, but table” and management has not shown inter- big issue,” French said. “It’s tough to pre- The electronic industry smelter program nonprofits might start looking to the market est in a sale, Killian said. DMC declined to dict the costs, and companies aren’t always provides audits of smelters and refiners in order to not lose a competitive advantage comment on the Beaumont rumor, and prepared to take on those extra costs.” around the globe to ensure they are not us- to the for-profits.” Crain’s was unable to contact HCA. The initial cost of compliance for U.S. ing minerals from the conflicted region. As margins get tighter and garnering Mark Kopson, chairman of the health care companies is estimated at $3 billion to $4 bil- “If we are able to have visibility through cash from operations gets tougher, experts industry group at Bloomfield Hills-based lion, with ongoing compliance costing be- the supply chain to the smelter and know said, fewer health care providers will be Plunkett Cooney PC, also said Michigan may tween $206 million and $609 million, accord- that we’re working with an audited smelter able to resist the appeal of private equity or be seen as a fertile ground for acquisitions ing to the SEC. But the who doesn’t do business in public company capital to fund much-need- due to the under-representation of for-profit National Association of Manu- a conflict region, we have ed equipment purchases or building renova- owners. Medicaid expansion under the ACA facturers says the costs will It’s tough to the ability to comply with tions. This too could spur for-profit conver- (Blue Cross Blue Shield of Michigan has esti- be much higher — $9 billion “ the spirit of the legislation,” sions and acquisitions. mated Medicaid could add more than 450,000 to $16 billion. predict the Bolden said. “There are Currently, for-profits account for just sev- patients in the state) and the need to find ef- Mel Stephens, se- tools in place to comply; we en of Michigan’s 134 community hospitals, ficiency through scale are also driving merg- nior vice president of costs, and just need to get everyone on and about 13,200 of their nearly 222,000 em- er-and acquisition talks, he said. communications for board.” ployees statewide, according to data from Plunkett Cooney was local regulatory Southfield-based Lear companies AIAG also announced the Michigan Health & Hospital Association. counsel for Duke LifePoint in the Marquette Corp., said while Lear this month that it had col- They are the five DMC hospitals belong- acquisition. Kopson would not discuss that does not directly use aren’t laborated with 24 member ing to Vanguard, Pontiac-based Doctors Hos- deal, but did say access to private equity any of the materials, companies, including pital of Michigan and Marquette General Hospi- capital and cost pressures on independent the supplier still must always Farmington Hills-based tal, which was nonprofit until a sale last hospitals are “factors present in almost all find its exposure Robert Bosch LLC and Ford, month to Duke Lifepoint LLC in a deal valued for-profit acquisitions” of nonprofits. among its own suppli- prepared to develop the iPoint Con- at $483 million, including about $125 million “Michigan was almost universally looked ers. to take on those flict Minerals Platform, a cash. Michigan had no for-profit hospitals on before Vanguard (buying DMC) as a non- “We know we probably Web-based data manage- just four years ago. profit provider state, and has lagged in this use some, but they’re not extra costs. ment tool to help track the Eight of the 18 bidders on debt-saddled trend,” he said. “And one of the factors hospi- materials we use at the top ” supply chain. Marquette were for-profits, according to a tals have to consider is the access to capital, (of our supply chain),” Jeff French, Grant Thornton LLP “It’s clear that we can- report on the proposed sale by Michigan At- which private equity firms have. And one of Stephens said. “This indus- not do what is required torney General Bill Schuette. the drivers for that is the constant need for try has a long supply chain, so while (these without the cooperation of the entire sup- “It’s becoming very difficult for the inde- capital improvements.” minerals) are not used on our end, it’s still a ply chain,” Bolden said. “The resources pendent hospital to stay viable and still be Beaumont had a 54 percent drop in net in- big process to find out all of the things that throughout the supply chain are not the independent. And Marquette was a very come to $35.5 million in 2011 from $78 million get supplied to us and what is used.” same, so it was important to develop com- good example,” said Michael Boudreau, in 2010, fueled by dwindling investment in- Many suppliers, including Southfield- mon tools to create cooperation.” managing director at Bloomfield Hills con- come on its stock market investments, even based Federal-Mogul Corp., Valeo North Ameri- Mapping the supply chain has ancillary sulting firm O’Keefe & Associates and a trans- though revenue increased to about $2.18 bil- ca and TRW Automotive Inc., deferred com- benefits as well, such as helping suppliers actional adviser to some health care compa- lion. Net income also slid in 2011 for Henry ment to AIAG. and automakers understand how to react nies. Ford Health System, Oakwood Healthcare Inc., St. The supply base is largely made up of to risk, Bolden said. For instance, it would “Now we’re starting to see that same kind John Providence Health System and Trinity Health. smaller, nonpublic suppliers, and they fear help avoid shutdowns from disasters — of pressure moving upstream, even occa- Beaumont executives have said the compa- that reporting to customers will cause natural or otherwise. sionally to the size of a Beaumont-type ny was able to pare expenses more than 11 them to lose competitive advantage, “Companies have long known that what provider.” percent since it lost money after the global French said. happens around the world does impact the Boudreau said O’Keefe has served as an market collapse in 2008. But the hospital also “Suppliers are doing things to be as cost business,” Bolden said, referencing the adviser on at least seven hospital mergers enjoys a quality-of-care reputation that would competitive as they can, as efficient as they 2011 earthquake and tsunami in Japan that and acquisitions in the past two years, pre- add to its appeal in the acquisition market. can,” he said. “If you have to disclose some crippled the supply chain. “The world is dominantly in the Midwest, compared with HCA (NYSE: HCA) has been on the hunt of those details to your customers, you smaller now, and we do have to understand averaging just one such transaction per recently, adding more than a dozen hospi- worry that information could get out to the our business to a degree that we are able to year a decade ago. tals in the past three years, and like Beau- whole supply chain, which would be an is- respond responsibly and act, whether it’s Joshua Nemzoff, CEO of New Hope, Pa.- mont it enjoys a quality reputation, with 80 sue from a competitive angle.” an armed conflict or a tsunami or a flood.” based Nemzoff & Co. LLC, which has handled of its hospitals ranked among the top 10 per- Large public companies have until May However, industry experts are worried at least 200 hospital deals in the past 30 cent nationwide. 31, 2014, to make initial filings on conflict the conflict minerals regulation is just an- years, said nonprofit hospitals usually ex- Mark Lezotte, shareholder in the business minerals and small public companies have other in a never-ending stream of new, ex- plore a sale only when they think they can’t and transactional practice at the Troy office until 2016, according to the regulations. pensive-to-comply government interfer- survive. Several in that position that of Hall Render Killian Heath & Lyman PLLC, said French and Bolden urge companies to ence, French said. thought the Affordable Care Act would stem an increase of accountable care organiza- join one, or several, of the industry pro- Retail companies and manufacturers the financial drain of their uncompensated tions and hospital participation in the grams designed to address the issue of con- with revenues exceeding $100 million do- care are having a rude awakening, he said. Medicare Shared Services Program will put flict minerals. ing business in California are already re- “A lot of hospitals who thought the ACA an increase focus on saving money as a Ford Motor Co. has conducted a survey of quired to report, under the California Trans- was going to be their savior, and they’ve means to greater government compensation. its supply base and will require supplier parency in Supply Chains Act, on whether found, if anything, it’s more of a neutral- “Payment mechanisms that are starting content reporting to help Ford meet the their supply chain supports slavery or hu- cost kind of reform,” he said. “Uninsureds to happen will place a premium on coordi- regulations, Kristina Adamski, purchas- man trafficking across the globe. were supposed to move into a category of nation and communication efficiency, and ing, supplier and legal communications “People are worried that there will be an compensated care, but Medicare reimburse- you’ll see more of a focus on measured out- manager, said in an emailed statement. expansion of these types of regulations,” he ment is declining, unemployment is high comes than on (billing) activity. That’s go- “The causes of conflict in the region are said. “This could be the tip of the iceberg in and managed care organizations will be- ing to put a focus on scale and coordination complex, as are global supply chains; we terms of regulatory guidelines making come more competitive in their pricing. So among providers in the system to avoid du- know that solutions to these challenges sure their supply chain is meeting what they’re right back where they started from.” plicative services,” he said. will not be simple,” she said in the email. any one government’s standards of busi- Not everyone in the market is warming up “Access to capital is important because “That is why Ford is working with multi- ness should be.” to for-profits and their cash. The CEOs of Gar- Michigan hospitals will need to expand and ple stakeholders, including in the automo- AIAG is hosting an event, “Conflict Min- den City and Crittenton confirmed the Van- modernize and find cost controls under the tive industry, to address supply chain con- erals: An Industry Briefing,” on Thursday guard talks but have said previously those new law. Those things are starting to hap- cerns in a comprehensive way.” at its headquarters in Southfield. Go to hospitals are not for sale. pen now in the market, and some of them Ford is a member of the Public-Private Al- AIAG’s website, www.aiag.org, to register. And Beaumont, which could add more won’t be cheap.” liance for Responsible Minerals Trade, the Dustin Walsh: (313) 446-6042, than 1,744 licensed beds, 18,000 employees Chad Halcom: (313) 446-6796, Electronic Industry Citizenship Coalition’s Con- [email protected]. Twitter: and more than 3,000 physicians to Michigan’s [email protected]. Twitter: @chadhalcom flict-Free Smelter Program, and others, to @dustinpwalsh

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Page 24 CRAIN’S DETROIT BUSINESS September 24, 2012 Nonprofits: Incentive pay makes a comeback HHGregg: ■ From Page 1 partner Deloitte LLP. decrease in base pay in 2010, and tion of $456,508, followed closely Unplugged Davidoff spent 20 years as an ex- THE FULL REPORT just three of the 10 saw decreases by Reid Thebault at the YMCA of ■ From Page 3 ecutive at nonprofits, including The 2012 Nonprofit Executive in their total compensation. Metropolitan Detroit, who earned Trinity Health Corp. and the Jewish Arthur Rodecker, trustee of the $454,860 that year. Compensation Survey contains we explore options in different Federation of Metropolitan Detroit, compensation data on more than Southfield-based DeRoy Testamen- Lutheran Social Services of Michi- markets,” said Jeff Pearson, se- and today serves on nonprofit 90 Michigan nonprofits, including tary Foundation, had the largest to- gan’s top executive, Mark Stutrud, boards, including the Detroit Insti- approximately 175 executives, in tal compensation decrease, at 2.41 had a reported 34 percent increase nior vice president of marketing tute of Arts and the United Way for an Excel spreadsheet. The percent, which dropped his salary in pay in 2010 that was driven by a at HHGregg, in an emailed state- Southeastern Michigan. spreadsheet includes to $156,152. supplemental executive retire- ment. “I think boards understand and compensation information for The biggest increase among ment plan allocation of $106,442. “We do not have any firm com- appreciate that they will and 2010 and 2008 and is especially grant-making foundation chiefs mitments for the Detroit market useful for nonprofit board to share at this time.” should pay to attract and retain members or nonprofit executives was a nearly 9 percent total com- the right talent for the right time,” pensation boost for Hudson-Webber Arts and culture HHGregg stores, which are looking for information about typically about 30,000 square he said. compensation trends. It can be Foundation President and CEO Among arts and culture organi- “An increasing number of non- purchased for $69 at David Egner, whose compensation zations, half got raises that year, feet each, sell flat-panel televi- profits are adopting a compensa- crainsdetroit.com/lists. rose to $384,560 in 2010. His base led by Kathleen Mullins, president sions; premium video products tion philosophy that includes in- pay increased from $296,144 to of the Edsel & Eleanor Ford House in including cellphones, tablets, centive pay,” said Ed Steinhoff, a freezes. Two could not be com- $322,000 in 2010, an 8.7 percent Grosse Pointe Shores, with a 17 GPS devices, iPods and other partner at the Detroit office of na- pared year to year. boost, as he took on the added re- percent increase in her total com- MP3 players; name-brand appli- tional human resource consulting The median base pay change sponsibility of also overseeing the pensation, bringing it to $229,248. ances; audio products; and fur- firm Mercer (US) Inc., a subsidiary among those executives was 2.44 $100 million New Economy Initiative, The top executives of three arts niture at competitive prices, ac- of Mercer LLC. percent between 2009 and 2010. The an economic development initia- organizations that were strug- cording to the company’s “They want to assure that pay median increase in total compen- tive funded by 10 foundations and gling in 2010 to find sustainable website. It competes with such and performance are aligned. … If sation was 2.73 percent, outpacing administered by the Community operating funding and/or to pay retailers as Best Buy and Radio you take an element of compensa- the national average of 2 percent Foundation for Southeast Michigan. off debt, saw pay cuts or freezes. Shack. tion and make it variable, based on as reported by the Chronicle of Ruth Stephens-Collins, presi- Detroit Institute of Arts Director Announcements of HHGregg (organizational) results … you’re Philanthropy. And the median dent of Rochester Hills-based Crit- Graham Beal’s total compensa- openings in other markets indi- not overpaying in the poor years salary was $293,483. tenton Hospital Medical Center Foun- tion dropped by nearly 4 percent cate each store creates from 60 to and underpaying in the good dation, saw an 18.3 percent decline in 2010, though his base pay in- 120 jobs. years.” Foundations in total compensation, dropping it creased 7.4 percent that year and The city of Roseville, which Incentive pay isn’t prevalent to $105,900 in 2010. his bonus increased to $35,000 would have seen one of the new among foundation executives. The The highest-paid traditional She subsequently left the foun- from $33,000 in 2009. electronics and appliance stores, only executive among foundation nonprofit executives were among dation, which former longtime Reflected in his base pay in- was also left perplexed by HH- leaders to earn a bonus for work foundation leaders, followed by Presbyterian Villages of Michigan crease was the January 2010 Gregg’s decision not to move into tied to her role was St. John Provi- those in human services and, final- Foundation President Melinda restoration of a temporary 8 per- the market for now. dence Health System Foundations ly, those in arts and culture. Callahan took over in February. cent pay cut that Beal took during City officials said the compa- President Susan Burns, with just Kresge Foundation President and the last six months of 2009, said ny contacted the city in June to under $30,000 in incentive pay that CEO Rip Rapson was the top earn- Annmarie Erickson, COO, in an provide preliminary plans for a year for leading the foundation’s er with total compensation of Human services email. new store at 13 Mile and Little fundraising efforts. $610,679, followed by W. Clark Du- Two-thirds of the top-paid hu- The drop in Beal’s total compen- Mack, a former Circuit City loca- That’s not including Ira rant, $558,214, for his work as pres- man service executives saw an in- sation can also be attributed to the tion, expected to open in June Strumwasser, who earned his ident of the New Common School crease in their total compensation expiration of a housing allowance 2013. bonus for work as vice president of Foundation and as an independent in 2010; a third saw pay cuts. in 2010 that Beal had earlier re- HHGregg was seeking a height Blue Cross Blue Shield of Michigan. contractor top executive of Genesis Michael Brennan, president and ceived, she said. variance because the entryway it Nineteen of the executives re- Foundation. CEO of United Way for Southeast- Detroit Symphony Orchestra Presi- planned for the store would have ceived raises in 2010. Ten saw pay Among grant-making founda- ern Michigan, was the top earner dent and CEO Anne Parsons’ base been taller than the 40-foot limit decreases and four had pay tions, none of the executives saw a among them with total compensa- pay was frozen at $270,000, but her Roseville has for such structures, total compensation decreased said building director Glenn Sex- slightly with shifts in her benefits. ton. And Michigan Opera Theatre Presi- The company wasn’t seeking dent David DiChiera’s pay was any tax incentives, he said. frozen in 2010. Sexton said he followed up Sherri Welch: (313) 446-1694, with the company earlier this [email protected]. Twitter: month to check on the status of @sherriwelch the project, and that’s when he SPEED. Bill Shea helped report this story. was informed that the company had “to put (its) market entry on hold for now,” he said. Sexton said that HHGregg’s di- ACCURACY. rector of real estate, Steve Nikel, AJM Packaging adds wrote in an email, “While we are disappointed, we had to post- warehouse in Detroit pone our efforts in the Detroit RESPONSIVENESS. area; hopefully, we will be able Bloomfield Hills-based AJM to revisit your market in the fu- Packaging Corp. closed earlier this ture.” month on the purchase of a HHGregg has been on an ex- 316,000-square-foot warehousing pansion path this year. Accord- Award-winning CIOs have a lot in and distribution center on Fuller- ing to its website, it operates ton Street in Detroit. more than 218 stores in Alaba- common with Quicken Loans. New York-based industrial and ma, Delaware, Florida, Georgia, office real estate acquisition firm Illinois, Indiana, Kentucky, Ashley Capital LLC, which has an of- Maryland, Mississippi, New Jer- fice in Canton Township, sold the sey, North Carolina, Ohio, Penn- building to AJM affiliate Epco LLC sylvania, South Carolina, Ten- for an undisclosed sum. Bloomfield nessee, Virginia and West Congratulations to the Hills-based Forum Group LLC repre- Virginia. sented AJM in the transaction. The company entered Missouri Crain’s Detroit CIO Award Winners. AJM, a manufacturer of private- and Wisconsin in mid-Septem- label and branded paper products ber, with stores in St. Louis and such as paper plates, cups, bowls Green Bay and three others ex- and bags, plans to fill at least 40,000 pected to open this fall near Mil- square feet of space and may grow waukee. its presence as business needs dic- It also expanded with two new tate or as space becomes available, stores in Illinois and announced said founding Principal Mike plans to open new stores this fall Ziecik of Forum Group. More than in Port Richey, Fla., and Atlanta, 80 percent of the building is occu- Ga., this fall. pied by lease tenants, including Sherri Welch: (313) 446-1694, Detroit-based CTC Distribution. [email protected]. Twitter: — Chad Halcom @sherriwelch 20120924-NEWS--0025-NAT-CCI-CD_-- 9/21/2012 5:34 PM Page 1

September 24, 2012 CRAIN’S DETROIT BUSINESS Page 25 AM General: www.crainsdetroit.com JLTV win may extend owners’ fight EDITOR-IN-CHIEF Keith E. Crain ■ PUBLISHER Mary Kramer, (313) 446-0399 or From Page 3 [email protected] ASSOCIATE PUBLISHER Marla Wise, (313) 446- tract for it in 1983. 6032 or [email protected] A long-running licensing deal for EXECUTIVE EDITOR Cindy Goodaker, (313) 446- 0460 or [email protected] General Motors Co. to produce the Army official: Procurement budget likely to hit 10-year low MANAGING EDITOR Jennette Smith, (313) 446- civilian equivalent Hummer, H2 1622 or [email protected] MANAGER, DIGITAL CONTENT STRATEGY Nancy and H3 vehicles in the commercial BY CHAD HALCOM ren; the Bradley armored vehicle Hanus, (313) 446-1621 or [email protected] markets ended when GM retired CRAIN’S DETROIT BUSINESS of BAE Systems Inc., which houses DEPUTY MANAGING EDITOR Daniel Duggan, (313) 446-0414 or [email protected] the brand in 2010. AM General also I tend to be the its Heavy Brigade Combat Team SENIOR EDITOR Bob Allen, (313) 446-0344 or had a contract with Oak Park-based Local defense contracting com- “ unit in Sterling Heights; and the [email protected] panies can expect the military’s military Humvee of AM General WEST MICHIGAN EDITOR Matt Gryczan, (616) 916- Azure Dynamics LLC to retrofit low optimist, and I 8158 or [email protected] volumes of Ford Transit Connect procurement budget to stabilize LLC, which houses its engineering SENIOR EDITOR Gary Piatek, (313) 446-0357 or believe someone is [email protected] vans with electric powertrains, un- at its lowest level in 10 years, a se- and product development center SENIOR DESIGNER Jeff Johnston, (313) 446-1608 til Azure filed for bankruptcy and nior procurement official said in Warren. or [email protected] closed its doors earlier this year. last week — and that’s if Congress going to blink first “But many other actions come DATA EDITOR Brianna Reilly, (313) 446-0418, [email protected] But in the past two years alone, can avert automatic spending together around that transition, WEB PRODUCER Norman Witte III, (313) 446- cuts. (before automatic like terminating a program or 6059, [email protected] the U.S. Tacom Life Cycle Manage- EDITORIAL SUPPORT Robertta Reiff, (313) 446- ment Command in Warren has Barring sequestration — the sustainment contracts to main- 0419; YahNica Crawford, (313) 446-0329 awarded AM General at least $1.9 automatic cuts that take effect cuts happen). tain” equipment, he said. “So a NEWSROOM (313) 446-0329, FAX (313) 446- ” 1687 TIP LINE (313) 446-6766 billion in contracts to produce or without congressional interven- decrease in total budget funding modify more than 9,000 military tion next year under the federal Harry Hallock, doesn’t necessarily translate into REPORTERS U.S. Army Contracting Command Daniel Duggan, deputy managing editor: Covers Humvees for the U.S., Jordan, Budget Control Act of 2011 — the an (equal) decrease in total con- real estate. (313) 446-0414 or [email protected] Afghanistan and other govern- U.S. Army Tacom Life Cycle Manage- tracting.” Jay Greene, senior reporter: Covers health care, insurance, energy utilities and the environment. ments. Humvees have been ment Command in Warren projects sumes Congress can adopt spend- General Dynamics Land Sys- (313) 446-0325 or [email protected] shipped to nearly 50 U.S.-allied total contract spending will be ing cuts by year’s end that would tems topped the list of largest Chad Halcom: Covers litigation, higher education, non-automotive manufacturing, defense governments around the world. about $10 billion in the fiscal year avoid the automatic cuts of more contract recipients in the past contracting and Oakland and Macomb counties. Majority owner Perelman, 69, that starts Oct. 1. than $100 billion a year between (313) 446-6796 or [email protected] year at just over $2 billion, ac- Tom Henderson: Covers banking, finance, and co-owner Rennert, 78, accuse That’s off from $14 billion in fiscal 2013 and 2022 under the 2011 cording to Tacom data. But $187 technology and biotechnology. (313) 446-0337 or each other in a Delaware court of projected spending this fiscal act. About half of the automatic [email protected] million of that went to Ladson, Bill Shea, enterprise editor: Covers media, taking away more than $280 mil- year and $17 billion in fiscal 2011, cuts are expected to target de- S.C.-based Force Protection Inc., advertising and marketing, the business of sports, lion from cash-rich AM General by fense. and transportation. (313) 446-1626 or Executive Director Harry Hallock which GDLS acquired this year. [email protected] way of loans, management fees of the Army Contracting Com- “I tend to be the optimist, and I The runner-up was BAE Systems Nathan Skid, multimedia editor. Also covers the and royalties. believe someone is going to blink food industry and entertainment. (313) 446-1654, mand told attendees Tuesday at at $857 million, followed by [email protected] the National Defense Industrial As- first,” Hallock said, “because Oshkosh at $806 million. Dustin Walsh: Covers the business of law, auto sociation Michigan Chapter’s fall there’s so much downside to suppliers and steel. (313) 446-6042 or Suit follows suit Among the leading small-busi- [email protected] business event at the Troy Marriott. someone not blinking.” ness contractors managed by the Sherri Welch: Covers nonprofits, services, retail In a suit filed at the Delaware The Army also projects that a and hospitality. (313) 446-1694 or But Hallock said actual Tacom Tacom Office of Small Business [email protected] Court of Chancery in late June, AM spending in fiscal 2012 is just over record 22 major systems funded Programs, the top recipient was General Holdings Inc. alleges Ren- ADVERTISING $9 billion right now and should through Tacom will shift over the Carrollton, Texas-based Critical So- nert and his company, New York- finish at around $10 billion, mean- next five years from production lutions International Inc., maker of SALES INQUIRIES: (313) 446-6052; FAX (313) based Renco Group Inc., withdrew 393-0997 ing fiscal 2013 spending would be into post-production repair and the Vehicle Mounted Mine Detec- $109 million by borrowing from SENIOR ACCOUNT EXECUTIVES: Matthew J. roughly flat compared with this refit “sustainment” programs, tor, with $116 million. The highest- Langan, Tamara Rokowski AM General at below-market year. where federal funding tends to be ranked Michigan-based small- ADVERTISING SALES Christine Galasso, Lori rates that are “unfair and disad- Tacom contract spending on spottier. business contractor was Madison Tournay Liggett, Dale Smolinski vantageous to the company.” CLASSIFIED SALES (313)-446-0351 ground vehicles, weapons, engi- These include the Abrams bat- Heights supplier SSI Technology Renco Group countersued Perel- EVENTS DIRECTOR Nicole LaPointe neering, services and other pro- tle tank of Sterling Heights-based Inc. at No. 9, with $26 million man and his holding company, DIRECTOR, INTEGRATED MARKETING Eric Cedo grams totaled about $11 billion in General Dynamics Land Systems; the awarded in the past year. SALES PROMOTION MANAGER Karin Pitrone MacAndrews & Forbes Holdings Inc., 2004 but reached its all-time high Family of Medium Tactical Vehi- Chad Halcom: (313) 446-6796, EVENTS COORDINATOR Kacey Anderson accusing the Perelman company of of $31 billion in fiscal 2008. cles, managed through Oshkosh [email protected]. Twitter: SENIOR PRODUCER FOR DIGITAL/ONLINE diverting $175 million by charging PRODUCTS Pierrette Dagg But the Tacom projection as- Defense’s technical center in War- @chadhalcom MARKETING ARTIST Sylvia Kolaski AM General excessive manage- SALES SUPPORT Suzanne Janik, YahNica Crawford ment fees and royalties. through last year, according to the opment work on its Blast-Resistant Army and Marine Corps expect to MARKETING COORDINATOR Jenny Griffith The Perelman lawsuit alleges PRODUCTION MANAGER Wendy Kobylarz Rennert and his family’s invest- Renco Group suit. Vehicle-Off Road, or BRV-O, propos- order more than 25,000 units to re- PRODUCTION SUPERVISOR Larry Williams ment company treat AM General al for JLTV. Competitors Lockheed place part of their Humvee fleets. CUSTOMER SERVICE “as a convenient drive-thru teller Rough times elsewhere Martin Corp. in Bethesda, Md., re- Allied governments might also to which they pull up and ask ceived $66.3 million and Oshkosh make JLTV purchases under the MAIN NUMBER: Call (877) 824-9374 or write AM General also thrived as a Defense in Wisconsin received $56.4 U.S. Department of Defense Foreign [email protected] themselves for as much money as portion of both men’s investment SUBSCRIPTIONS $59 one year, $98 two years. they like.” million for the same work on their Military Sales program. Out of state, $79 one year, $138 for two years. portfolios at a time when some of Outside U.S.A., add $48 per year to out-of-state The Rennert suit claims Perel- own JLTV offerings. Chad Halcom: (313) 446-6796, rate for surface mail. Call (313) 446-0450 or their ventures hit rough patches. The ultimate winner of a pro- [email protected]. Twitter: (877) 824-9374. man and his holding company are In 2010, Perelman handed credi- duction contract could receive @chadhalcom SINGLE COPIES: (877) 824-9374 known to “have repeatedly used tors control of Panavision, the movie- REPRINTS: (800) 290-5460, ext. 125; their control of enterprises to un- more than $5 billion for JLTV pro- Crain’s New York Business con- (717) 505-9701, ext. 125; or lindsay.wilson camera maker he’d owned since duction starting in 2015, as the U.S. tributed to this story. @theygsgroup.com fairly enrich themselves at the ex- 1998 that was buckling under heavy TO FIND A DATE A STORY WAS PUBLISHED: pense of minority stakeholders.” (313) 446-0406 or e-mail [email protected] debt, according to the Renco suit. Renco also alleges the holding Rennert’s empire also has chal- CRAIN’S DETROIT BUSINESS IS PUBLISHED BY company has extracted $105 mil- CRAIN COMMUNICATIONS INC. lenges, according to the Perelman- CHAIRMAN Keith E. Crain lion in royalties and $16.2 million led AM General Holdings suit. In PRESIDENT Rance Crain in “management fees” from AM May, RG Steel filed for bankruptcy SECRETARY Merrilee Crain General subsidiary General Engine INTELLECTUAL PROPERTY ATTORNEYS

TREASURER Mary Kay Crain only a year after Rennert acquired Executive Vice President/Operations Products LLC, which has adminis- the manufacturer for $1.2 billion. William A. Morrow trative offices in Livonia and an

Group Vice President/Technology, He also lost control of a metals Manufacturing, Circulation assembly plant in Ohio. refinery in Peru, which at one Robert C. Adams General Engine Products manu- Vice President/Production & Manufacturing point last decade generated one- Dave Kamis factures a 6.5-liter diesel engine third of Renco Group’s revenue. A “ Chief Information Officer that it sells to AM General for the They are not just Paul Dalpiaz Renco subsidiary closed the facto- Chief Human Resources Officer Humvee. But the Rennert suit al- ry in 2009, and the next year a cred- Margee Kaczmarek leges Renco remains entitled to all itor put the division into involun- “patent lawyers, but Director of Audience Development Operations profits from General Engine ac- Michelle Roth tary bankruptcy proceedings. G.D. Crain Jr. Founder (1885-1973) cording to terms of the joint ven- A MacAndrews & Forbes spokes- our trusted advisors. Mrs. G.D. Crain Jr. Chairman (1911-1996) ture agreement that allowed for EDITORIAL & BUSINESS OFFICES: woman denied the suit’s allega- 1155 Gratiot Ave., Detroit MI 48207-2732; (313) the Perelman acquisition. tions: Perelman “is a long-term in- 446-6000 Rennert, who is worth $5.4 bil- Cable address: TWX 248-221-5122 AUTNEW DET vestor who focuses on intrinsic JAMES SCAPA, CEO Altair Engineering lion, according to Forbes, bought CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 value. The outlook of each of the op- is published weekly, except for a special issue the AM General in 1992 for $133 mil- third week of August, and no issue the third week erating companies is strong, with of December by Crain Communications Inc. at lion and sold a 70 percent stake to each having their best year ever.” 1155 Gratiot Ave., Detroit MI 48207-2732. Perelman, who is valued at $12 bil- Periodicals postage paid at Detroit, MI and additional mailing offices. POSTMASTER: Send lion by Forbes, for $935 million in YOUNG BASILE. Advisors to the world’s most innovative companies. address changes to CRAIN’S DETROIT BUSINESS, 2004. Only $110 million of that Production at stake Circulation Department, P.O. Box 07925, Detroit, MI 48207-9732. GST # 136760444. Printed in transaction was in cash. AM General is one of three con- U.S.A. The wars in Iraq and Afghanistan tract award winners in a 27- Entire contents copyright 2012 by Crain Communications Inc. All rights reserved. spurred enough demand for month pre-production contract on ANN ARBOR • TROY • SILICON VALLEY Reproduction or use of editorial content in any manner without permission is strictly prohibited. Humvees for Perelman’s holding the JLTV. The company received a company to receive $1.7 billion in $64.5 million award Aug. 22 for engi- WWW.YOUNGBASILE.COM distributions from AM General neering, manufacturing and devel- 20120924-NEWS--0026-NAT-CCI-CD_-- 9/21/2012 6:06 PM Page 1

Page 26 CRAIN’S DETROIT BUSINESS September 24, 2012 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF SEPT. 15-21

with substantially more than that expected to have Popovich CRAIN’S CELEBRATES SEVENTH ANNUAL HOUSE PARTY 5-Hour Energy registered for this year’s event by last Friday’s dead- Crain’s House named to posts Party guests line, organizers said. gather Thursday at “Everyone over the age of the home of Jeff boss: Buffett, 21 with two X chromosomes Antaya, CMO and is invited,” the invitation at Henry Ford partner at Plante read. “The Global Girls Moran, at Willys Night Out group is a non- ohn Popovich, M.D., Overland Lofts in partisan, multiethnic, so- president and CEO of Midtown. Antaya Gates good sell Henry Ford Hospital, has was one of 25 cially and economically di- J verse group of women. been named executive vice hosts for the t was, apparently, War- In the letter Bhargava president and chief medical event, which drew We’re not incorporated or 532 attendees. ren Buffett who started wrote, which is posted on officially recognized in any officer of Henry Ford Health I the courting process givingpledge.org, he System, system CEO Nancy More photos at way. We’re not a club or an crainsdetroit.com/ that brought 5-Hour Energy summed it up this way: Schlichting announced. He organization. We’re a group housepartygallery. creator Manoj Bhargava into “My choice was to ruin my of gal-pals who’ve gotten to- will replace Mark Kelley, AARON ECKELS Giving Pledge M.D., who is retiring as the the , the group son’s life by giving him gether to make this baby Inc. in Royal Oak for an closed location. system’s CMO and as CEO of billionaires who agree to money or giving 90-plus per- happen. undisclosed amount. Ⅲ Home prices gained 7.2 of Henry Ford Medical Group. give at least half of their cent to charity. Not much of “Every woman in atten- percent in July from a year Bill Conway, M.D., will wealth to charity. a choice. Service to others dance is a friend of a friend earlier, Detroit’s biggest serve as interim executive But after the “Oracle of seems the only intelligent and a potential friend, ac- OTHER NEWS jump in more than a dozen vice president and CEO of Omaha” started the talks choice for the use of wealth. quaintance or business con- years, according to the Mi- the health group during the Ⅲ Wayne County Com- with Bhargava, it was The other choices, especial- tact. Our sole purpose is to mortgage-data firm FNC Inc. crosoft Bill Gates search for a successor. missioner Kevin McNamara, founder ly personal consumption, bring women together in a Ⅲ Bloomfield Hills-based who closed the deal. seem either useless or D-Belleville, has been ap- spirit of sharing to relax pointed by that board to be Urban Campus Communities “Warren Buffett orga- harmful.” and have fun with a sense LLC broke ground on the $30 nized the first meeting, COMPANY NEWS its lone appointee on the that women should not be seven-member Wayne Coun- million Union at Dearborn which was fairly small, in Ⅲ Troy-based Flagstar Girls Night Out gathering in competition with one an- ty Airport Authority. He re- apartment complex, across Chicago,” Bhargava said. Bank has signed a five-year other except fairly in busi- places Bernard Parker, D-De- Evergreen Road from the “And then Bill Gates lease for a full-service continues growth ness and athletics.” troit, whose term ends Oct. University of Michigan-Dear- reached out to me and said branch in the One Detroit Who are Tanya Allen, Mary 1. Also, the airport authori- born campus. he’d like to talk. We met in Center building, the former Callaghan Lynch, Lisa Calvin, ty has named interim CEO Ⅲ The Detroit Lions will New York, had a very nice Survey: When dealers call, headquarters of Comerica Christine Catalanotte, Lynne Tom Naughton to the perma- partner with five Detroit chat, and he recruited me.” Inc. Flagstar is also doubling Golodner, Cheryl Haithco, Ally lends a better ear nonprofits to focus on com- The Seattle-based Giving the space of a small branch nent post. He was appoint- Christine Kiernan, Linda Jen- munity health, wellness and Pledge now encompasses 92 Who’s the quickest lender on West Warren Avenue ed as the interim in Octo- nings, Yodit Mesfin-Johnson, ber 2011 after the authority workforce development. families, with the an- to respond to auto dealers near Wayne State University. Beth Morrison, Jacqueline voted to fire Turkia Mullin. The partners are Playworks nouncement of 11 new mem- trying to line up credit for Ⅲ Stik.com, a social media Northrop, Teresa Rodges, Lisa Detroit, Eastern Market Co., an eager buyer? company using the Facebook Ⅲ Unable to reach agree- bers last week. They includ- Rosenbaum, Joyce Suber and Goodwill Industries of Greater That’s what Crain’s sister platform to help users get ment on a new labor deal, ed Bhargava and Quicken Paula Tutman?You can call Detroit, Hatch Detroit and the publication Automotive recommendations from the National Hockey League Loans Inc. founder Dan all of them community ac- Detroit Lions Academy. News wanted to know. friends on such profession- locked out its players. Lo- Gilbert, who declined to be tivists. Some are artists, Ⅲ Michigan Senate Insur- And the winner? Detroit- als as money managers, real cal analysts say the Detroit interviewed on the topic. journalists and business ance Committee Chairman based Ally Bank, in an unsci- estate agents, lawyers and Red Wings franchise is bet- Forbes estimates leaders. You can also call Joe Hune introduced bills entific survey that drew 102 dentists, announced that it ter equipped than many Gilbert’s net worth at $1.9 them, without fear of being proposed to overhaul Blue has moved from San Fran- other teams to weather the billion and Bhargava’s at chastised as politically in- dealer responses. Thirty- Cross Blue Shield of Michigan. cisco to the emerging tech potential financial hit. $1.5 billion. correct, the Merry Band of seven percent said Ally was Ⅲ The U.S. Department of hub in the Madison Building. Ⅲ Henry Ford West Bloom- Despite the recruiting ef- Goddesses. the quickest to respond, Labor has awarded Henry Ⅲ Ann Arbor-based field Hospital became the lat- forts from America’s two That’s how they were whether by phone or online. Ford Community College in Carlisle/Wortman Associates, est Southeast Michigan richest people, Bhargava billed on the invitation for Next came Chase at 25 per- Dearborn a $15 million Detroit-based SmithGroupJJR, health care facility to offer said that, in the end, it was this Friday’s fourth annual cent, Capital One at 21 per- grant to help expand high- Ann Arbor’s Fontaine Urban fresh produce to its patients, the mission itself that sold “Global Girls Night Out,” cent and Ford Motor Credit at tech job training and op- Design LLC, Northville-based hiring a resident farmer and him on the idea. He has what promises to be a rock- 20 percent. portunities for manufactur- McKenna Associates and Roy- opening a greenhouse to agreed to pledge 90 percent ing, bonding, meta-net- al Oak’s LSL Planning Inc. grow organic produce. ing workers whose jobs of his wealth to charity. working night out at The were five planning firms Ⅲ A study by the Michi- were lost or sent overseas. BITS & PIECES Ⅲ An art and design grad- “They have a great model, Henry, Dearborn, formally chosen by the Aerotropolis De- gan Department of Communi- Jeffrey Kopp, a partner in uate of the University of Michi- and what I admire about known as the Ritz-Carlton. velopment Corp. to help the ty Health and conducted by the litigation department at gan and her husband, Penny them is that they view all hu- The annual gathering agency market potential de- a University of Michigan re- Detroit-based Foley & Lard- and E. Roe Stamps of Miami, man life as being equal, as continues to grow. velopment and redevelop- searcher says Michigan’s are making a $32.5 million opposed to some groups that The first Global Girls ner LLC, has been given the ment sites throughout the ban on smoking in bars and donation to the newly re- view people in rich coun- Night Out drew about 30 2012 Unsung Hero Award aerotropolis region, which restaurants has not signifi- tries as being more equal,” women. The second brought from the State Bar of Michi- cantly hurt sales at those named Penny W. Stamps includes Detroit Metropolitan School of Art and Design. he said. “These guys get it.” 150. Last year it was 425, gan. Airport and Willow Run Airport. establishments. Ⅲ Four finalists have Ⅲ Royal Oak-based Taste Ⅲ The Detroit City Council been picked for the 2012 Love Cupcakes was featured is considering a plan to ex- Comerica Hatch Detroit con- in a re-aired episode of the tend the Dequindre Cut test, which awards $50,000 Food Network’s “Cupcake Greenway north through Wars.” Taste Love says its Eastern Market. to one entrepreneur who appearance on the show in Ⅲ The state’s new Michi- has an idea for a Detroit- April propelled the compa- gan China Center in Shanghai based retail business. BEST FROM THE BLOGS Ⅲ Detroit’s WXYZ-Channel ny to profitability. will target foreign invest- READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS Ⅲ India’s Mahindra & ment attraction, export 7 on Wednesday will begin Mahindra Ltd. opened a tech- trade development and edu- telecasting Bounce TV, aimed Why choose Flint over Chicago? Colbert: Gauntlet is thrown nical center in Troy, the con- cation initiatives. at black audiences, on over- Ⅲ the-air digital Channel 7.3. glomerate’s first in North The Detroit Symphony Ⅲ Who would ever Josh McManus America, to provide design Orchestra edged past this Opening statements have“ thought in the created“ a Facebook and consulting services for year’s fundraising goal of were heard in the corrup- gloomiest days of the group called Colbert automotive customers in the $12.32 million by reaching tion trial for former Detroit recession that in 2012, Does Detroit (and so region and support its auto- $12.332 million. The num- Mayor Kwame Kilpatrick and a prosperous bank on can you!) in an effort to motive and tractor engineer- ber of donors, at 9,287, is up his co-defendants. get (TV talk host) the grow would rather ing operations in India, Au- 15 percent from last year. Ⅲ Sentio LLC of Southfield come to Flint than Stephen Colbert to and Ablative Solutions Inc. of come to Detroit and tomotive News reported. Ⅲ Oakland County Execu- Chicago because of how Ⅲ Kalamazoo will share the in- healthy the auto industry walk the mean Southfield-based tive L. Brooks Patterson was is? streets. Guardian Alarm Co. has ac- discharged from McLaren novator of the year award at quired several thousand Oakland Hospital in Pontiac Medical Main Street’s first Reporter Tom Henderson’s blog” about accounting, Reporter Nathan Skid’s Detroit-area” restaurant blog home security accounts of but will continue his recov- medical device conference, banking, venture capital and high tech can be found can be found at www.crainsdetroit.com/skid Detroit-based Allstate Alarm ery from injuries in an Aug. Inno-vention 2012, Oct. 3-5 at at www.crainsdetroit.com/henderson Systems Inc. and Alert Alarm 10 auto collision at an undis- Rochester’s Royal Park Hotel. DBpageAD.qxp 5/25/2012 9:12 AM Page 1 WNpageAD.qxp 8/8/2012 5:16 PM Page 1

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