DVP Pushes Aside Rumors of Trouble Hermelin: ‘Early-Stage Investing Is Messy

20150504-NEWS--0001-NAT-CCI-CD_-- 5/1/2015 7:00 PM Page 1 CRAIN’SReaders first for 30 Years [DWIGHT BURDETTE/WIKIMEDIA COMMONS] DETROIT BUSINESS May 4-10,2015

Sakthi sees Brighton firm’s the pros of coating clearly hiring ex-cons has potential Why Kroger had Hiller’s Markets on its shopping list, Page 3 PAGE 3 PAGE 3 ‘Golden corridor’ – but slow as molasses DVP pushes aside rumors of trouble Hermelin: ‘Early-stage investing is messy. … We’re here for the long haul’

By Tom Henderson the long haul,” he added. [email protected] Trying to build something Rumors have been swirling in the local venture-capital [LARRY PEPLIN] community that Detroit Venture Partners is in trouble. When the trio founded DVP, there were no early stage Drivers inch their way along Hall Road.The amount of traffic is both a blessing Five years after being founded by Dan Gilbert, Josh investors in Detroit. It was a barren landscape for ven- and a curse for merchants along the corridor that some call Hell Road. Linkner and Brian Hermelin as a way to invest in early- ture capital, and Gilbert was ready to try and build stage technology companies, DVP is yet to have any big something. wins. Meanwhile leadership has been in flux, there have “We’d been losing our best and been layoffs at several portfolio companies, and some brightest for years,” Hermelin said. founders abandoning Detroit for the fertile grounds of “They’d been starting companies, but M-59 gridlock drives San Francisco. they’d been starting them in San Fran- “Confidence in DVP by the venture community has cisco.” been lacking,” said one area venture capitalist who They raised their first fund, which asked not to be named. “Rumors have been swirling.” has $55 million under management traffic talk in Macomb Hermelin, who is DVP’s managing partner, has a and of which $30 million has been message to those who doubt: Relax. DVP is doing fine. committed to portfolio companies. “Early-stage investing is messy,” he said. “It’s hard. It’s Brian Hermelin: And, critically, the only institutional Officials see no quick cure to the curse of the Hall crawl hand-to-hand combat. We’re about where we should be “Relax. DVP is money in the fund is $2.25 million four-and-a-half years in. We’ve got some really promis- doing fine.” from the Pure Michigan Venture De- By Doug Henze ing companies we like a lot. We’ve got some companies velopment Fund. That means not Special to Crain’s Detroit Business Special Report: Macomb we hope can get some wind behind them. And we have having to answer to foundations or pension funds that Slogging through stop-and-go County’s economy is revving up some that are tough. from the last recession, with tech traffic on northern Macomb “We didn’t get in this for a quick return. We’re here for See DVP, Page 21 County’s main east-west thor- jobs helping drive a resurgence in oughfare — four lanes deep in ex- manufacturing, Page 11 haust and exhaustion — it’s easy to understand why some locals mercial real estate brokerage have dubbed it “Hell Road.” Anton, Sowerby & Associates in For the business district along Mount Clemens. “Everybody Living the stretch of M-59 officially wants to be on M-59. That traffic known as Hall Road, that grid- is the lifeblood of businesses in lock has become both blessing the busy commercial district.” and curse. The area has seen a Borrowing a line made famous through major development push in re- by Yogi Berra, parts of M-59 have cent decades, but the traffic become so crowded “nobody backups can also be a deterrent goes there anymore.” to visitors. “There have been a number of giving “I refer to M-59 as Macomb restaurants that have come and County’s Golden Corridor,” said Joe Sowerby, president of com- See GRIDLOCK, Page 19 A. Alfred Taubman left a legacy in education, © Entire contents copyright 2015 by Crain Communications Inc. All rights reserved. health care, galleries and crainsdetroit.com Vol. 31 No 18 $2 a copy. $59 a year.

research into diseases. His [ASSOCIATED PRESS] philanthropy is expected to live on through his children and the Taubman Foundation, Page 7 NEWSPAPER 20150504-NEWS--0002-NAT-CCI-CD_-- 5/1/2015 5:47 PM Page 1

2 CRAIN’S DETROIT BUSINESS // May 4, 2015

which is domiciled in Dublin, Ire- State University estimated the MICHIGAN land, to benefit from lower taxes but school’s annual economic impact in INSIDE retains its headquarters in Allegan. Kent, Ottawa and Muskegon coun- THIS ISSUE Ⅲ Midland-based Dow Chemical ties at $730 million during the 2013- BANKRUPTCIES ...... 6 BUSINESS DIARY ...... 16 Co. will sell its Agrofresh food-pack- 14 fiscal year. Grand Valley deter- CALENDAR ...... 15 Boulevard Acquisi- aging business to mines the amount using the CLASSIFIED ADS ...... 17 tion Corp. for $810 million, number of its employees (more than KEITH CRAIN ...... 8 Bloomberg News reported. Agro- 3,200) along with spending and MARY KRAMER ...... 8 BRIEFS fresh will become a stand-alone taxes paid by its 25,000 students. OPINION ...... 8 company that trades on the Nasdaq Ⅲ Byron Center-based Spartan- OTHER VOICES ...... 9 Walbridge to manage Bell’s declared an end to Flint’s financial system. Dow still will own about 40 Nash Co. plans to buy the six-store PEOPLE ...... 15 Brewery bottling expansion emergency after the state approved percent of Agrofresh. Dan’s Supermarket chain in Bismar- RUMBLINGS ...... 22 a $7 million loan to eliminate a Ⅲ The quarterly office furniture ck-Mandan, N.D., The Associated WEEK ON THE WEB ...... 22 Bell’s Brewery Inc. selected De- budget deficit. Flint has been run by index compiled by Michael A. Dunlap Press reported. Terms of the deal troit-based construction firm Wal- emergency managers since 2011. & Associates was the third-best haven’t been disclosed. Dan’s sold COMPANY INDEX: bridge Aldinger Co. to expand its The city is returning to local con- recorded since July 2007, MiBiz re- its two Dickinson, N.D., stores to SEE PAGE 21 Comstock bottling operation. trol, although a five-member transi- ported. “We reaffirm our prediction SpartanNash in December 2013. As part of a multiyear $35 million tion board will review major con- that the industry remains on course Ⅲ Joel Wilson, 32, was sentenced expansion, Walbridge will be contracts and budgets. A budget that to achieve its best year in more than to up to 10 years in prison and must scribed as a Ponzi scheme, the Bay struction manager for the build-out starts July 1 will have no deficit for a decade,” said Michael Dunlap, pay $6.5 million in restitution for City Times reported. Wilson former- of a new bottling hall, keg storage the first time in a decade, The Flint who heads the Holland consultancy. defrauding investors of millions of ly owned The Diversified Group Advi- building and warehouse. The ex- Journal reported. The state says Ⅲ The commercial fishing indus- dollars in what prosecutors de- sory Fund LLC. Ⅲ pansion will increase Bell’s annual long-term liabilities have been re- try’s total catch last year in Michigan Corrections production capacity to 1 million duced to $240 million from $850 was slightly lower than 2013’s at barrels of craft beer. million. about 3.4 million pounds, The Asso- Ⅲ An editorial on Page 8 of the April 27 issue should not have includ- Bell’s, based in Galesburg east of In other good news for Flint, Ket- ciated Press reported. But the Michi- ed Oakland County Executive L. Brooks Patterson as a supporter of the Kalamazoo, plans to produce 410,000 tering University is getting $4 million gan Department of Natural Resources Proposal 1 road funding initiative. Patterson does not support the bal- barrels of beer in 2015, founder Larry from General Motors to build an au- said the estimated wholesale dock- lot proposal. Bell told Crain’s this year. tomotive proving ground and pow- side value was more than $5.8 mil- Ⅲ In the General and In-House Counsel Awards section in the April The bottling hall and warehouse ertrain test lab, The Journal report- lion before processing, marketing 27 issue, a profile of Michelle Busuito, assistant general counsel for the are expected to be completed in ed. GM owned the Flint school, and retail sales, up $300,000. Suburban Mobility Authority for Regional Transportation, should have November and December, respec- previously known as the General Ⅲ Marysville-based SMR Auto- said it costs $490, not $49, to test each of the DNA rape kits that were tively. The entire project is expected Motors Institute, until the 1980s. motive Systems plans to add 200 found in 2009 in an abandoned Detroit police storage unit. to be completed by February 2016. jobs as part of an $18.6 million ex- Ⅲ Because of incorrect information supplied to Crain’s, an item in the — Dustin Walsh MICH-CELLANEOUS pansion, The Times Herald in Port April 27 People on the Move incorrectly listed Nicole Sokloski’s job title Ⅲ Refusing to take “no” for an an- Huron reported. The Michigan Eco- as event manager at the Display Group, Detroit. She is actually an ac- Flint ends 4 years under swer, Mylan N.V. raised its offer to ac- nomic Development Corp. approved count executive. emergency management quire Perrigo Co. plc to nearly $32.7 a $2 million grant to St. Clair County Ⅲ An item in the Michigan Briefs on Page 2 of the April 27 edition billion, MiBiz reported. The unso- for job training. The plant currently should have said a proposed fine against Grand Rapids Plastics for safety Calling it a “new day” for the licited offer is the third that the Eng- employs 796. violations would be the largest issued by the Michigan Occupational Safe- long-troubled city, Gov. Rick Snyder lish company has made for Perrigo, Ⅲ A recent report by Grand Valley ty and Health Administration for a fatality case in more than a decade.

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CRAIN’S DETROIT BUSINESS // May 4, 2015 3 Sakthi builds up company,parolees

Supplier hires ex-offenders for major expansion project in Detroit with each of The parolees have been hired as them personally CNC operators, assembly machine By Dustin Walsh felons. paroled Michiganders per month and have told operators and general laborers. [email protected] The subsidiary of India conglom- over the next two years, said CEO them they need The workers make $11 per hour to Sakthi Automotive Group USA Inc. erate Sakthi Group is hiring many of Lalit Verma. That’s at least 48 ex-of- to go the extra $13.50 per hour to start, Verma said. is in the nascent stages of a massive metro Detroit’s recently paroled fenders. mile to show the U.S. Labor Secretary Thomas expansion project on the Southwest convicted felons. Sakthi’s expansion Sakthi hired four parolees earlier community they Perez toured Sakthi’s Detroit plant Detroit waterfront — one that could plans include the hiring of nearly this month, and they were outper- are worth this last month and met with Gov. Rick bring an investment of more than 400 workers over the next two years. forming their peers, so it returned to Lalit Verma: “They chance.” Snyder about the state’s parolee $60 million. Sakthi is projecting revenue of $58 hire four more last week, Verma said. know this is their The parolees jobs training programs, which were But to steadily hire the workers it million in 2015, up to $150 million “We’re seeing they (hired parolees) second chance.” are hired under signed into law last December. needs to ramp up castings produc- in 2016 and $450 million by 2020. are more motivated and productive the same condi- That law required the Michigan tion, it is betting big on a nontradi- As part of that growth, Sakthi because they know this is their sec- tions as regular employees, Verma tional sort of workforce: convicted committed to hire two recently ond chance,” Verma said. “I’ve met said, including pay and benefits. See SAKTHI, Page 18 Kroger: Deal for Hiller’s stores adds niche foods

By Sherri Welch [email protected] The Kroger Co. of Michigan’s acquisition of Hiller’s Markets will not only bring Kroger more market share, it will provide entrée to the specialty and ethnic food products the smaller chain is known for, the company and industry watchers say. Kroger said Friday that it had reached an agreement to acquire Hiller’s Markets and its seven metro Detroit stores. Terms of the deal, set to close in July, were not disclosed. Kroger has long admired Hiller’s, President Jayne Homco said. The chain [PHOTOS BY CARTER SHERLINE] has a great repu- Nanovere Technologies founder Tom Choate (above) sprays a layer of Nano-Clear,which he says preserves surface gloss and resists scratches and oxidation. Com- tation in the mar- pare the side on the left without coating to the side on the right with it (inset, above). ket and shares similar values Jim Hiller: Grocery around things biz future is for big such as support- Chemist’s coating defies the elements companies. ing the community. Hiller’s is also a great fit, given Kroger’s goal to Brighton firm doubles revenue as formula attracts cruise lines, other clients Nano-Clear coating, which comes with a 10- move into providing more ethnic year warranty to preserve surface gloss while foods, she said. By Bill Shea full-time R&D as a polymer chemist. being heavily resistant to scratches and The regional chain is sharing its [email protected] There’s just one problem: He used oxidation from ultraviolet light and chemicals. suppliers for all of its product lines, homas Choate loves research and nanotechnology to create a long-lasting anti- Such a guarantee cuts down on the she said. “We’ll be able to utilize development. He loves to experiment, corrosion coating that protects new surfaces expensive lifecycle maintenance costs for that and learn from them and serve T tinker, invent. He’s at home in the and restores those already damaged by companies that have products exposed to the that diverse customer.” laboratory. exposure to sun and air — a development that elements — vehicles, ships, boats, bridges — “We’re fortunate to have been of- As founder and chief technology officer of a has caught the interest of major global clients, almost anything. small Brighton-based protective industrial and Choate must instead run a business that’s Nanovere and its vendors now have orders to See KROGER, Page 18 surface coating maker called Nanovere annually doubling its revenue. Technologies, he’d love to get back to What customers are buying is Choate’s See NANOVERE, Page 20

MUST READS of the week ... Why they call it a ‘liquid asset’ LOOKING BACK: Bay Harbor’s captain It’s a $10 billion-plus commercial waterway. Heck, it’s Crain’s weekly look back on 30 years of Detroit stories why Detroit is where it is. And what the Detroit River is catches up with David Johnson, who developed Victor now is alive. Dustin Walsh dropped a line, and look what Center and Victor Corporate Park — then turned an old he came up with? Read his fish tale, with photos, cement plant into the Village at Bay Harbor (right). crainsdetroit.com/walsh Page 4 [DUSTIN WALSH/CDB] [BAY HARBOR] [BAY 20150504-NEWS--0004,0005-NAT-CCI-CD_-- 5/1/2015 2:26 PM Page 1

4 CRAIN’S DETROIT BUSINESS // May 4, 2015 Crain’s May 6, 1985, issue reported on LOOKING BACK developer David Johnson’s new Victor Center in Southfield. Johnson’s passion remains finding the right piece of land. More at crainsdetroit.com/30 Accident hasn’t kept developer from building his lifelong dream

By Kirk Pinho [email protected] The diagnosis: A sixth cervical vertebra shattered into 13 pieces. But in the weeks, months and years that followed David Johnson hearing that news after a 1978 swimming pool diving accident, he didn’t become bitter about his life, or “green” — that is, envious of people who didn’t go through the same ordeal. Johnson, now 65, just became greener. David Johnson: Instead of de- True to the “heart veloping large flutter” method swaths of pristine land as densely as possible to maximize profit and propagate cookie-cutter subdivisions, he said, he builds less than what he is allowed “to maximize the physical beauty” of his projects. “I’m notorious for saying that I Hutch is your single source for comprehensive buy land by what I call the ‘heart asphalt and concrete services. flutter’ method,” he said. “It has to be emotionally compelling land, physically beautiful.” a L HL/ H L Í0K L ÍHK ÙH L/ H Í0KI0 And over the years, his company, [PHOTO COURTESY OF BAY HARBOR] IL K ÜÍ/ H LKÍ(ÞI HK ÍÛÝ HK IL which developed the Victor Center Before it became a resort community, Bay Harbor was the site of an abandoned 0I 0KHÜ HK ILÍHJI LK/ H Í(ÞHÝHK ILÍ( L/ H in Southfield 30 years ago and cement plant (inset). Now, it features a nautical center, dining and lodging facili- * IK ÞK ÓLKHHK IL3 ILKK ILÍÛHÝ LKÚ L0IK IL spearheaded the Victor Corporate ties, boutiques and an equestrian center. Park mixed-use complex in Livonia, Call today for more information at 586.427.7283 or visit us at has made a lot of green, as well. www.hutchpaving.com to learn more or to request a quote. Victor International Corp. had How a cement plant became $112.4 million in revenue in 2014, down slightly by 1.8 percent from a Lake Michigan community the previous year’s $114.4 million, according to company-provided When David Johnson was plan- gibly materialize in 1994 with figures. Through March, it had $42.7 ning the Village at Bay Harbor, he then-Gov. John Engler on hand million in revenue. knew it was going to be big. when the cement plant smoke- Johnson, chairman of the Clark- “There was five miles of Lake stacks were demolished in front of ston-based company known for de- Michigan shoreline,” he said. “The thousands of people. veloping luxury residential and re- only problem was that it had the Bay Harbor also is the site of sort communities, spends about 10 largest abandoned cement plant what is currently Johnson’s most months out of the year in the Oil Nut in the world on it.” pressing work: Construction of the Bay resort community he devel- But Johnson said he could see Great Lakes Center for the Perform- oped on Virgin Gorda in the British the potential for a large, multi- ing Arts, a $50 million performing Virgin Islands. faceted community. arts center expected to begin next That’s because, due to his injury, It was planned for 800 units, year. It will be 25,000 square feet he doesn’t “handle the cold very and 724 are currently completed. and include a 400-seat sloped floor well,” he said. It also features a nautical center theater and private box areas. “I love the water, so I am able to with 227 completed docks and “It will be a game-changer for spend the winters in the warm cli- another 150 planned, plus six performing arts centers for the mate and with a sense of adven- miles of non-motorized trails greater northern Michigan area, ture,” said Johnson, adding that it connecting Charlevoix to the Midwest and the United took about six months for him to Petoskey. Bay Harbor also in- States,” Johnson said. “It will be become mobile again. cludes a downtown area with din- comparable to Interlochen (Center “I didn’t want to go play golf in ing, boutiques, lodging, golfing for the Arts) and many great facili- Florida.” and an equestrian center. ties that are around.” Johnson, speaking last month The development began to tan- — Kirk Pinho from his office in the 88-residence community on 300 acres, said he very quickly recalibrated his think- going to walk again and you’re laid “My goal was to do 10 percent of ing 37 years ago immediately after up there — God, money and friends the housing in the U.S. per year, and the accident. get put into perspective very quick- “When you’re told you’re never ly,” he said. See Next Page 20150504-NEWS--0004,0005-NAT-CCI-CD_-- 5/1/2015 2:26 PM Page 2

CRAIN’S DETROIT BUSINESS // May 4, 2015 5

From Previous Page But in 1985, it was another de- Johnson a “highly imaginative development of his that was attract- veloper who puts exceptional curb it was then to do one-of-a-kind ing his attention and that of appeal in everything he does.” Wayne works to control communities.” Crain’s Detroit Business: The “He is forward-thinking with Johnson has accomplished 125,000-square-foot Victor Center deed restrictions he places on his that, not only in the Caribbean, at 27400 Northwestern Highway developments, which grant protec- ‘rogue spend,’save $10M but also in Southeast Michigan east of Telegraph, construction on tion to those that invest in his com- and across the rest of the state. which was completed that year. munities,” said Moceri, whose By Kirk Pinho countries, he said. “Everyone was There is the $400 million Turtle Named after Johnson’s father, company has developed 55,000 res- [email protected] buying their own horns, so we Lake development in Bloomfield Victor Center is owned by Plante idential units in southeast Michi- Wayne County hopes to save picked the best supplier globally. Township featuring 112 estate Moran Cresa LLC, the real estate gan, including the $137 million lux- $10 million per year by overhauling The overhaul is part of Evans’ home sites on 256 acres off arm of Southfield-based Plante ury Pinnacle subdivision in Oakland its procurement process. plan to address the county’s struc- Square Lake Road west of Tele- Moran PLLC. Township. To do that, the Wayne County tural deficit, which has averaged graph Road. Victor International also assem- “Someone that purchases a Commission would contract with a $52 million in the past four years. Victor International’s Heron bled 11 different parcels of land to- home there, or a builder who buys vendor to create a platform that staff Last week, he also proposed elimi- communities — Heron Bay, Heron taling 95 acres for the Victor Corpo- lots, they are going to be protected would use to find the suppliers with nating health care benefits for fu- Point and Heron Woods — in rate Park at Seven Mile Road and on what goes on, saying that next which the county negotiated the ture retirees; a 5 percent pay cut for Bloomfield Township sit on about I-275. door to them will be of the same best prices, terms and conditions, all employees except for police offi- 150 acres and have about 100 “Victor Corporate Park pio- or greater quality.” said Lloyd Jackson, director of com- cers, prosecutors and nurses; and a homes. Heron Bay was the first res- neered the I-275 corridor in the “We don’t allow one-upman- munications for County Executive change in health care options for re- idential community where individ- 1980s,” said Johnson, a Michigan ship,” said Johnson, who employs Warren Evans. tirees who retired before 2007. ual lots — not homes — sold for State University graduate. “I used about 200 people worldwide. “We Jackson said the system will con- Wayne County’s pension system more than $1 million. to fly potential tenants up in a hel- don’t want people showing off trol what the administration refers is just 45 percent funded and needs The $50 million Copperwood icopter, sit at 144 feet (12 stories) how rich they are.” to as “rogue spend” — which is $910 million to become fully fund- community in South Lyon Town- and say, ‘This is your view from Moceri, who also called John- spending with suppliers whose rates ed. ship has 110 units sitting on about the top of your building.’ ” son “gregarious” and “genuine,” have not been negotiated. It would If the county does nothing, in five 100 acres, while the $100 million But still he ended up on Virgin said the spinal cord injury “only take effect within 90 days of the years the accumulated deficit is ex- Parks at Stonewood community Gorda not only because of how it sped him up, not slowed him commission awarding the contract. pected to balloon to $171 million in Clarkston has 217 homes out of keeps far away from the harsh down.” Hugo De Campos, an assistant and the county could run out of 300 units in the master plan sitting Michigan winters, but also because “When you have bolts go in your professor of supply chain manage- cash by August 2016, according to on about 100 acres. it was part of a life-long dream. head and you’re paralyzed from the ment at the Wayne State University Evans. And what the company bills as “My long-term goal was to do a shoulders down,” it changes your School of Business who spent a With full implementation of what was then the largest land development in the Caribbean, perspective on life, Johnson said. “I decade in supply chain management Evans’ plan, he said, surpluses are reclamation project in American and I spent 10 years looking for do yoga. I ride horses for freedom at General Motors Co., said Wayne expected at $78.5 million in 2015 history was its $1 billion develop- the ideal location,” he said. “I of movement. I have residual dam- County is going to a model the pri- (due to a transfer from the county’s ment of the Village at Bay Harbor bought it to make it the Nantucket age on my left side, but every day is vate sector has been adopting for Delinquent Tax Revolving Fund); on the Lake Michigan shoreline, of the west.” the best day of my life. years. $17.1 million in 2016; $5.5 million in consisting of 1,200 acres that was Dominic J. Moceri, who has “And I work every day because I “We (at GM) achieved over 20 2017; $4.5 million in 2018; and $9.6 once the site of a sprawling ce- known Johnson for 25 years and is love what I do.” Ⅲ percent cost improvements by million in 2019. Ⅲ ment plant and mining opera- partner of Auburn Hills-based resi- Kirk Pinho: (313) 446-0412 globalizing or ‘commonizing’ the Kirk Pinho: (313) 446-0412 tions. (See related story, Page 4.) dential developer Moceri Cos., called Twitter: @kirkpinhoCDB horns” in GM vehicles in different Twitter: @kirkpinhoCDB

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6 CRAIN’S DETROIT BUSINESS // May 4, 2015

!30!24.%23 9/5'%44/&/#53/. Analysts look to future moves "5),$).'9/52"53).%33 7(),%7%&/#53/.&).!.#).')4 after aborted Comcast-TW deal

By Chad Halcom House for $10.4 billion, but it was company is to a community it has [email protected] another of the industry side deals already tried to leave. It may not be a GreatLand, but it that were contingent on a Comcast “Community commitment has al- could still become a different one purchase closing. ways been a big and well-known part for metro Detroit cable and Internet “Obviously we’re disappointed of the values and culture of Comcast, subscribers, even after market that our transaction did not especially here, and it was unknown leader Comcast Corp. backed off on close…,” Rutledge said. what culture the new spinoff compa- a $45 billion deal to acquire Time “Our agreement with ny might have. So the fact they’re Warner Cable Inc. Advance/Newhouse requires that we going to stay for the foreseeable fu- Analysts are wondering what (continue to) negotiate in good faith ture is a good thing ,” said Matt Fried- other acquisitions are in the offing for upon a termination of the Comcast man, a TV industry veteran and co- Increase your cash flow and pursue the cable industry — including for St. transaction, and we’re doing that.” founder of public relations firm bigger opportunities with our customized, Louis-based Charter Communications, Rutledge declined to elaborate. Tanner Friedman in Farmington Hills. flexible lending solutions. which was to co-own and operate Syracuse, N.Y.-based Bright Michelle Gilbert, vice president of GreatLand Connections Inc. and inherit House operates in Farmington, public relations for the Heartland re- s!2&INANCING (248) 658-1100 Comcast customers in this region Farmington Hills, Livonia, Novi and gion at Comcast, said the company s,INESOF#REDIT www.hitachibusinessfinance.com under a side deal to the Comcast buy. Redford Township, according to its continued investing in its local net- Thomas Rutledge, president and website. Charter operates in the De- work and its community relations pro- CEO of Charter, told analysts in an troit, Flint, Grand Rapids, Mar- grams while the deal was pending. earnings conference call Friday that quette, Saginaw and Traverse City In March the company awarded GET IN ON THE CONVERSATION talks are ongoing with markets, according to its website. more than $120,000 in scholarships Sherri covers nonprofi ts, services, retail and hospitality. Advance/Newhouse, parent compa- But for most local communities, to 118 Michigan high school students Keep up with Sherri at crainsdetroit.com/blogs ny of fellow cable operator Bright Philadelphia-based Comcast is here under its annual Leaders and Achiev- House Networks LLC. Charter had to stay, even if the deal raised ques- ers Scholarship Program. SHERRI WELCH TWEET @SHERRIWELCH previously offered to buy Bright tions about how committed the “From a community relations position, we operated from a business- as-usual perspective,” Gilbert said. “We’ve continued to collaborate with nonprofit organizations, and when we started event planning we were operating from the assumption that the deal was going through. Yet we’ve continued to make that community commitment.” The proposed Comcast acquisition had called for the industry giant to shed more than 3 million subscribers nationwide, including most of southern Michigan. Customers in metro Detroit, Minneapolis and elsewhere were to belong to GreatLand Connections, which Charter would have managed and partly owned in a separate deal contingent on the purchase. But Comcast withdrew from the deal after government officials raised concerns on the effects for broadband Internet customers. Andy Winnie, owner of eBuy Media Inc. in Plymouth, said he followed reports of the Comcast offer and its withdrawal, but he never expected the deal to affect his company or other local media buyers. “The only thing that would have changed is the names, although maybe some upper management might have changed with it. But we would be working with more or less the same people,” he said. Ⅲ For your mission-critical infrastructure, our world- class data centers keep you secure, powered and connected to multiple global carriers 24/7. Backed BANKRUPTCIES by 2(n+1) redundancy that guarantees continuous network uptime, and an array of outbound and The following businesses filed for inbound connection options, 123Net gives you protection in U.S. Bankruptcy Court unrivalled speed and control over your network. in Detroit April 25-30. Under Chap- ter 11, a company files for reorgani- zation. Chapter 7 involves total liq- uidation. Ⅲ F&W Holdings LLC, 77 S. Main St., Mt. Clemens, voluntary Chapter YOUR BACKBONE FOR BUSINESS 7. Assets and liabilities not available. FIBER • COLOCATION • VOICE • WIRELESS 866.460.3503 123.NET Ⅲ Kay Bee Kay Properties LLC, 1487 Hubbard St., Detroit, voluntary Chapter 11. Assets and liabilities not available. — Dustin Walsh 20150504-NEWS--0007-NAT-CCI-CD_-- 5/1/2015 5:29 PM Page 1

CRAIN’S DETROIT BUSINESS // May 4, 2015 7 Taubman family to continue legacy of giving

By Sherri Welch For fiscal 2014 ended Jan. 31, the He didn’t finish at Lawrence Tech fund the A. Al- said former UM President Mary Sue [email protected] foundation disbursed a reported either, though he was awarded an fred Taubman Coleman, who stepped down last There’s no question Al Taubman’s $850,079 in contributions and a few honorary doctorate in architecture Medical Re- July after 12 years. philanthropic legacy will live on. dollars more, leaving it with $157 in from the Southfield-based universi- search Institute, He talked with UM scientists all And some of the details on just how net assets/fund balances at year’s ty in 1985. the largest dona- the time about what they were work- that will happen are starting to end after expenses. “But he had great love and appre- tion in the histo- ing on, Coleman said, with a particu- emerge. Taubman’s children — Gayle ciation for both institutions and ry of the Univer- lar interest in research around neu- Educational and health care Taubman Kalisman, Robert Taub- credited both with changing his life, sity of Michigan rodegenerative diseases. buildings and art museum galleries man and William Taubman — will giving him all sorts of tools to be Health System at “He was a pretty demanding task and wings across the campuses of serve as the foundation’s trustees, successful,” Tennyson said of Mary Sue the time. He had master, but he made us better,” several institutions, including the with his daughter as president. Lawrence Tech and UM. Coleman: “I so made gifts to- Coleman said. University of Michigan, College for “He brought his children along In 2010, Taubman organized a admired ... his ward that pledge In the early 1980s, he became a Creative Studies, Lawrence Techno- with him in his philanthropy not graduate-level course at LTU, “Real intentional in 2007, 2008 major proponent of UM’s Replace- logical University, Harvard just to get the benefit of their talents Estate Practice: Land Develop- engagement.” and 2011, said ment Hospital Project, serving on University’s Kennedy School of Gov- while (he) was alive, but to ensure ment.” He was the lead lecturer and Judy Malcolm, the building committee. His busi- ernment and the Detroit Institute of there was continuity beyond that,” also brought in guest lecturers with senior director executive communi- ness savvy saved UM millions of Arts, bear his name. Tennyson said. international reputations, among cations in UM’s Office of University dollars when he urged the adminis- Other legacies include an impact “This next generation ... I think them Michael Graves. Development. tration to buy steel while prices on medical research and literacy. they have their own ideas ... desires During his lifetime, Taubman’s In all, with his gift to fund renova- were down. The gifts Taubman made may one and vehicle for ways they’ll give,” he largest gifts went to UM. tions of the architecture buildings Taubman’s children already have day lead researchers at the A. Alfred said. “(Taubman) wanted it that Taubman was present just days last year, Taubman donated $154.7 many civic leadership roles. Taubman Medical Research Institute at way. before his death at the UM ribbon- million to UM for medical research, Robert, who is chairman, presi- UM to a cure for deadly diseases — “He believed very strongly that cutting ceremony for the renova- health care and the arts. dent and CEO of Taubman Centers or spur architectural students influ- along with monetary support come tion and expansion of the Alfred At the time of his death, Taubman Inc., serves on the boards of Beau- enced by his curriculum input to dedication, creativity and commit- Taubman College of Architecture had been serving as vice chairman of mont Health System and Cranbrook create magnificent designs. ment that his children can bring to and Urban Planning facilities. UM’s $4 billion Victors for Michigan Educational Community, the South- Then there’s his work to support the table as they go forward with He made a lead gift of $12.5 million campaign and co-chairing the cam- eastern Michigan Council of Govern- Reading Works, a Detroit-based their own loves and interests.” to the project last year, following his paign council for the health system’s ments and on the University of nonprofit working to improve adult Taubman graduated from Pontiac $30 million gift 15 years earlier to the portion of the campaign. He was Michigan Investment Committee. literacy in Metro Detroit. High School and entered UM, but his college — the single largest gift ever also co-chairman of the Taubman William Taubman, COO of Taub- The philanthropy of Taubman, freshman year was cut short by a call made to an architecture program in Institute’s leadership advisory board man Centers, has served as chair- the real estate developer who died to serve in the Army during World the U.S. at that time, UM said. with his daughter, who will continue man of New Detroit for several years, April 17 at 91, will be carried on War II. He returned to UM on the GI Taubman also made gifts to the in that role, Tennyson said. Tennyson said, noting the city of through his children and the Bill to study art and architecture but University of Michigan Museum of “One of the things I so admired Detroit was one of Al Taubman’s Bloomfield Hills-based Taubman transferred to night school at Art and UM health care institutions. about Alfred was the degree of his first loves. Ⅲ Foundation. Lawrence Tech closer to home after But his largest gift to the university intentional engagement in every Sherri Welch: (313) 446-1694 A “substantial amount of funds” proposing to his college sweetheart. was a $100 million pledge in 2007 to single project he got involved with,” Twitter: @SherriWelch is expected to move from Taub- man’s estate into the foundation as affairs are settled, said Chris Tennyson, a spokesman for the family and Taubman Cos. for more than 30 years.

Taubman gifts ® Selected gifts to local institutions: Detroit, we’re In Your Corner. 2014: $12.5 million to the University of Michigan for renovations to architectural college facilities. 2013: $11 million to Lawrence Technological University for the Taubman Complex and Marburger STEM Center. 2009: $15 million to the College for Creative Studies for the A. Alfred Taubman Center for Design Education. 2007: $100 million to the University of Michigan Health System to establish the A. Alfred Taubman Medical Research Institute. 2006: $3 million to Wayne State University toward planning and construction of the Damon J. Keith Center for Civil Rights. 2004: $4 million to Lawrence Technological University for the construction of the A. Alfred Taubman Student Services Center. 2001: $50 million to the Detroit Institute of Arts, a gift made jointly with the late Josephine Ford and Richard Manoogian, chairman emeritus of Masco Corp. Summer 2015 1999: $30 million to UM for the A. Alfred Taubman College of ■ Detroit ■ Novi ■ Grand Rapids ■ Kalamazoo ■ Grand Haven ■ Lansing Architecture and Urban Planning. 20150504-NEWS--0008,0009-NAT-CCI-CD_-- 5/1/2015 5:30 PM Page 1

8 CRAIN’S DETROIT BUSINESS // May 4, 2015 CRAIN’S DETROIT BUSINESS Money seems to be the driver for no-fault change MARY KRAMER Publisher auto insurer to a new state cata- Lawmakers who favor change OPINION [email protected] strophic care fund. say hospitals have milked the sys- The existing Michigan Cata- tem for years by charging triple their strophic Claims Association fund normal fees to patients covered by ast-moving — and fast-chang- has a piggy bank balance north of auto insurance. And certainly, the These cuts needed Fing — bills that allegedly would $18 billion to cover all current and fees vary wildly. reform Michigan’s no-fault insur- future claims. Oakland County Executive L. f Wayne County can avoid a trip to bankruptcy court to ance laws pit insurance companies That seems like a huge sum, but Brooks Patterson, who was injured repair its broken balance sheet, it’s a win for residents against health care providers. consider that the costs of caring for in an auto accident in 2013, thinks Iand taxpayers. But hospitals and rehab pro- severely injured people who are lawmakers are rushing things. He Last week, Wayne County Executive Warren Evans unveiled grams battling for dollars to support “ventilator dependent,” could cost also told Detroit Free Press colum- his “recovery plan” with proposed cuts not terribly dracon- long-term care of people injured in up to $1,000 a day, says Bill Buccalo, nist Mitch Albom that the key to the automobile accidents have tapped president of Livonia-based Rain- speed is insurance companies ian: A 5 percent wage reduction for most county employees, their most powerful advocates — bow Rehabilitation Centers. The or- wanting to tap the $18 billion elimination of health care benefits for future retirees, and a their patients. People with brain ganization operates residential, Michigan Catastrophic Claims As- new graduated pension eligibility scale for early retirement. and spinal injuries, in wheelchairs outpatient and home care services sociation fund, which was built on Yes, these are tough cuts for those affected, but the savings and on ventilators, have been lob- across Southeast Michigan. For premiums all motorists pay. improve the county’s ability to invest in things like roads and bying fiercely for Michigan’s gold people with brain injuries that lead There’s a rule of thumb in jour- standard of coverage. In other to neurological and behavioral is- nalism: When you’re trying to figure new technology because higher bond ratings translate into states, whether some things are sues, care costs can be $500 to $700 out the “why” of something, follow cheaper borrowing costs. covered depends on whether an in- a day. the money. That seems to be the Restructuring is a tall order; the county’s pension fund is jured motorist was at fault — or if he That’s eye-popping, even for case here. only 45 percent funded, the unfinished jail on Gratiot Avenue or she has a good lawyer. some of us who have had relatives is a liability with a $200 million bond to repay. The accumu- If passed, the bills would set price in intensive care units for non-auto Catch Mary Kramer’s take on lated deficit has surged to more than $157 million. These fi- controls on services, including resi- related emergencies — or who have business news at 6:10 a.m. Mondays dential programs that offer many helped parents consider their long- on the Paul W. Smith show on WJR nancial facts should be clear to county commissioners and to services Medicare wouldn’t pay for. term retirement options that could AM 760 and in her blog at labor unions that represent county employees. And it would shift responsibility ul- eventually include assisted living www.crainsdetroit.com. This isn’t easy work, but if it means the county can avoid state timately for long-term care from the and nursing home care. intervention and bankruptcy, it is work that must be done. Kudos for convention TALK ON WEB Re: Kroger to acquire Hiller’s Reader responses to stories and get things done. When the American Society of Association Executives Markets in metro Detroit blogs that appeared on Crain’s John agreed in 2009 to hold its high-profile annual meeting in De- website. Comments may be edited troit, it was more than a small leap of faith. The win was Glad to hear my two favorite for length and clarity. Re: No-fault bill: $1 billion to be stores are merging. I hope that pulled from health care? based on the promise that Cobo Center improvements Kroger is committed to upholding would be complete and the city’s local restaurant and hotel Hiller’s commitment to customer fixed incomes. Got income? Got The proposed bill does not provide scene would improve. service and Michigan products. house. any long-term benefit. Further, it does As it turns out, Detroit has over-delivered. About the only Wondering 258779 not provide an answer to where the thing the city still needs to do to attract more big-time confer- funds will come from after the I am so disappointed to hear this. Good intentions, but a recipe for $545,000 claims fund is exhausted. ences, according to ASAE CEO John Graham, is add more hotel I am an avid Hiller’s shopper and disaster. Just accept the fact that The system in place is not broken. People rooms. And with occupancy rates climbing and a handful of appreciated their quality meats, many of these loans will never be are getting services necessary for boutique hotels in the works, more rooms may be on the way. produce and all the unique special- re-paid. quality of life after a catastrophic in- The ASAE meeting coming to Detroit in August is a big deal. ty goods. Kroger may have some John md jury. If this passes, we don’t have a It’s considered the “Super Bowl” of association conferences. lower prices, but they definitely vote, and people with catastrophic in- About 6,000 executives will be in town, and the conference has a don’t have the quality and selection. With this new program now I am juries will not have the options that Jeanette Schneider seriously considering moving back exist today. In addition, state and fed- long-standing history of leading to follow-up conferences held into the city. eral financial resources already belea- by the individual association heads who use the conference as a Re: New mortgage program will BigWill guered will dwindle further. We will way to “test-drive” locations for future meetings. help homebuyers fix city homes end up paying the shortfall through So the impact of this one event could be an immediate $10 Re: Moroun,city to swap taxes. We pay premiums and hope to million in spending this summer and could easily top $500 mil- This is awesome. A disabled vet- parkland for second span effort never use the benefits. When we do, eran such as myself could move to shouldn’t the carrier and the MCCA lion over the next 10 years with future conferences that result. Detroit and buy a house in a nice Wow, this is quite a different pic- be there for us? Kudos to Larry Alexander, CEO of the Detroit Metro Con- neighborhood and fix it up. This ture than a few years back with all Scott Silver vention and Visitors Bureau, for bagging this win. program is great for people with the legal disputes. Duggan seems to Tough decisions have to be made in Wayne County plause from the residents there. painful to a lot of employees of It’s simply too soon to bring back municipal government simply can’t Desperate measures require Wayne County who have benefited Kevyn Orr for another round of afford to accept those liabilities that tough, stern measures to try and from lax financial controls and now bankruptcy. will eventually bankrupt the govern- KEITH CRAIN counteract the financial neglect of must pay the piper. It is becoming far too common in ment. the past few decades. These prob- These are the kind of issues that America for municipalities to prom- Wayne County is by no means I am not sure that Warren Evans lems facing the county didn’t ap- should have been addressed over ise benefits that the communities alone in the United States. But on knew what he was getting into as far pear overnight but have been accu- decades. Simply giving benefits to simply can’t afford and letting some- the heels of the Detroit bankruptcy, as the financial situation for Wayne mulating for years. employees that Wayne County can- one in the future worry about how it’s obvious that something had to County. His predecessors, from all Rather than try to continue to not afford — and doesn’t have the they’re ever going to pay for them. be done, popular or not. outward appearances, left the cover up the financial mess, Evans money to pay for — has brought the It is a lot easier to make promises Evans didn’t create this financial county in near bankruptcy. has chosen to try and address the it to the brink of financial disaster. to employees and unions that might mess, but he is left with the unpop- Last week, the county executive chaos before we, the residents of We are lucky to have elected an not be anything but a liability on the ular task of cleaning it up. announced some measures that are Southeast Michigan, would be official who is willing to take the financial books for a couple of The county is doing what has to sure to get him lots of disgruntled forced to face another bankruptcy. very unpopular task of putting the decades than the alternative — fac- be done. It’s not easy, but it sure is employees in the county but ap- It’s not pretty, and it’s going to be county’s financial house in order. ing the unpopular decision that the necessary. Ⅲ 20150504-NEWS--0008,0009-NAT-CCI-CD_-- 5/1/2015 11:01 AM Page 2

CRAIN’S DETROIT BUSINESS // May 4, 2015 9 Public-private partnerships a needed path to project funding

nated through state agencies that for carpool lots; we did two design, underway. It recently announced that would create a P3 authority to have experts on various subjects. build, finance projects, which helped it will perform an in-depth study look at alternatives to financing When I asked if there are any leg- us really move into other innovative of policies and laws governing P3s not just transportation infrastruc- islative structures or state statutes contracting options. … in other regions of the United ture but all state capital projects. OTHER VOICES in place regarding P3s, he said: “Our “One is currently on the street for a States and Canada to identify best In addition, Snyder should con- Joe Neussendorfer current efforts have not required 15-year contract for freeway lighting practices for the private sector to sider sponsoring a statewide P3 Joe Neussendorfer is an affiliate member of any sort of legislative action. We in Southeast Michigan, all 14,000 design, build, finance, operate and conference with Business Leaders the American Society of Civil Engineers, a may reach a point where we will lights for design, build, finance, main- maintain public infrastructure. for Michigan and other private-sec- member of the Engineering Society of need to work with our partners in tain and operate. There also is the De- CEO Mark Fisher said that the tor stakeholders to discuss ways Detroit and a member of the American Bar the Legislature to expand opportu- troit Intermodal Freight Terminal, hope is “to create a blueprint for the that the private sector can assist Association’s forum on construction law. nities for the state’s residents to where we have over half the funds region” to follow. Michigan and its limited resources benefit from P3 initiatives.” provided by the railroads and the rest I believe the public and the in addressing future funding needs. he National Governors Associa- MDOT Director Kirk Steudle told by the state.” Legislature should get involved As the insightful Crain’s Detroit tion Center for Best Practices, in me: “We actually have quite a bit of P3 with this concept. Perhaps there is Business editorial on Feb. 23 stated: T Clear on concept partnership with the National Con- work going on currently. We also have a forward-thinking state senator or “The good news: The spotlight on ference of State Legislatures and the some older projects that are close to a The Council of the Great Lakes representative who would like to the P3 model may lead to its use in Center for Excellence in Project Fi- P3. We have a partnership with Meijer Region has an exciting P3 initiative get the ball rolling with legislation other projects.” Ⅲ nance at the American Association of State Highways and Transporta- tion, recently held a workshop to assist state teams exploring how public-private partnerships, often called P3s, might be used to improve transportation infrastructure at a time when taxes alone will not provide all of the money needed for such a daunting task ahead. What is a P3? A definition is a single private-sector or a group of private- sector partners who provide upfront financing for a capital project, and designs and builds the project based on criteria from a public entity, such as a state highway department, then operates and maintains the project for a IT’S NOT HOW WELL THEY WORK FOR US. specified time in exchange for a combination of user fees or other government transfer payments. IT’S HOW WELL THEY WORK FOR YOU. There have been many discussions and some movement regarding the use of P3s in Michigan, primarily in the governor’s office and the Michigan Department of Trans- portation. But so far the average Eric W. Dietz Shari Krasinski, CTP, CPCP Michigan citizen does not have SVP, Regional Manager SVP, SaleS Manager background information about the Private Client Group Treasury Management concept. This needs to change. oFlCe oFlCe There have to be discussions by Cell Cell all legislative and taxpayer stake- eriCDieTZ HUnTingTonCoM SHariKraSinSKi HUnTingTonCoM holders so there is an understanding that P3s offer a great alternative to just raising taxes. There are not enough tax dollars to go around. Not just transportation infrastructure, Brian Marshall Brad Norman but all state capital projects, will SVP, #oMMerCial Region Manager SVP, MiCHigan Regional SaleS Manager have to be a combination of tax dol- Middle Markets Auto Finance & Dealer Services lars and private resources. Everyone oFlCe oFlCe has to contribute to the effort. Cell Cell Moving forward BrianMarSHall HUnTingTonCoM BraDnorMan HUnTingTonCoM At least two states, Arizona and Pennsylvania, are moving forward with major initiatives. Terrance B. Pryor Scott Wolffis The Arizona Department of SVP, Regional Manager SVP, !rea Manager oF MiCHigan Transportation has established an Commercial Real Estate Business Banking Office of P3 Initiatives, using best practices and lessons from other oFlCe oFlCe states as the basis of building a Cell Cell strong P3 program. The Pennsylva- TerrYPrYor HUnTingTonCoM SCoTTWolFlS HUnTingTonCoM nia Department of Public Trans- portation has established an Office of Public-Private Partnerships. In Michigan, Gov. Rick Snyder has appointed Joseph Pavona as a special adviser for P3s. In an email to me, Pavona wrote, “Michigan has a statewide P3 vision that fosters economic development by addressing our state’s infrastructure deficit and leveraging public The Huntington National Bank is an Equal Housing Lender and Member FDIC. and Huntington are federally registered service marks of and private assets.” Huntington Bancshares Incorporated. Huntington. Welcome. is a service mark of Huntington Bancshares Incorporated. 2015 Huntington He went on to write that P3 ef- Bancshares Incorporated. forts are coordinated through the executive office and, in turn, coordi- 20150504-NEWS--0010-NAT-CCI-CD_-- 5/1/2015 10:34 AM Page 1

10 CRAIN’S DETROIT BUSINESS // May 4, 2015 Oakland County Presbyterian Villages,Homestead form JV predicted to add By Sherri Welch waiver-funded 2,000 clients, including home care, [email protected] Menu of services care. facility management of independ- A nonprofit senior housing de- Homestead Home Care Inc. The joint ven- ent and assisted living communi- 48,500 jobs in veloper has teamed up with an at- and Presbyterian Villages of ture expands on ties, care coordination and client home care provider to provide Michigan expect to offer the a contractual re- advocacy. next three years those services to seniors through- following services: lationship be- The joint venture is the latest out the state. Private duty home health and tween the two example of a senior living commu- By Kirk Pinho [email protected] Presbyterian Villages of Michigan personal care services, such as agencies. For nity organization expanding into and Homestead Home Health Care medical assistance. five years, in-home and community-based Oakland County will add Inc. Roger Myers: ”We have formed a joint venture. Homestead has services. 48,500 jobs in the next three The new limited liability company, Coordination of skilled care, end- see this as an area been providing As Crain’s reported in January, years, University of Michigan yet to be named, will enable of-life care, physician and pharmacy of unmet needs.” services to resi- Chelsea-based United Methodist Re- economists project, 38 percent of Southfield-based PVM to expand services, care transition programs dents of PVM’s tirement Communities paid $1.3 which will be high-wage profes- further into in-home and senior and telehealth programs. Village of Westland senior commu- million to acquire a 50 percent sional and business services. community-based care and servic- Meal preparation and nity, Myers said, adding that in- stake in Glacier Hills Home Care Inc., Testing lab (5,700 jobs) and en- es. Meanwhile, the venture allows nutritional/dietary monitoring. spired a strong sense of trust in the gaining entry into home health gineering services (4,800 jobs) will Northville-based Homestead to quality of Homestead’s services. care. The deal created a new com- make up the bulk of the knowl- Personal shopping and services expand statewide. The joint venture will serve not pany, Caring Partners Home Health edge-economy jobs, according to such as errands, housekeeping, The joint venture company will only PVM senior living communi- Inc. George Fulton and Don Grimes, laundry, home repairs, maintenance, serve an eight-county area that in- ties, but the broader community Through the deal, Glacier Hills both of the UM Institute for Re- lawn care and snow removal. cludes Southeast Michigan, Gene- as well, Myers said. was able to expand its Ann Arbor search on Labor, Employment, and see County, and the Saginaw and Outings,wellness and other PVM serves more than 4,300 home health care subsidiary out- the Economy. Petoskey areas. activities. seniors and operates 25 senior liv- side of Washtenaw County, its “Along with company manage- For-profit Homestead will serve ing communities across the state. president and CEO, Ray Rabidoux, ment, which adds more than as the general manager, and a rep- ating on a budget of about $65 mil- It also provides community-based said at the time. 1,000 jobs over the next three resentative of the nonprofit PVM lion for 2015, Myers said. health care and other services for The plan is to expand Caring years, these industries form the will chair its governing board, the Carl Simcox, owner of Home- seniors living near its two PACE Partners’ services — such as core of the white-collar auto in- companies said. stead, said the projection is the (Program of All-Inclusive Care for chores — to support seniors stay- dustry,” Fulton said. “We see this as an area of joint venture will have $500,000 to the Elderly) Southeast Michigan ing in their homes, he said, Here’s how the rest of the job tremendous unmet needs,” said $1 million in new business the first centers in Detroit, operated with spurred by changes in Medicaid gain projections for Oakland add PVM President and CEO Roger year and continue to grow sub- Henry Ford Health System. policies to expand reimburse- up by industry: Myers. stantially after that. The centers provide a nationally ments of in-home senior services. Health care, 12 percent “We know seniors by and large “We expect that we will be hir- recognized comprehensive adult Like PVM, United Methodist op- Leisure and hospitality, want to remain in their homes. ... ing quite a few people,” Simcox day care and health services pro- erated PACE centers for the elderly 11 percent We think through this joint ven- said, with nurses and others program for seniors living in sur- in Jackson, Ypsilanti and Lansing Manufacturing, 7 percent ture we can meet part of that de- viding direct in-home care for pri- rounding communities. before the acquisition. Construction, 6 percent mand.” vate pay customers and those ap- Homestead and its affiliates Sherri Welch: (313) 446-1694 Financial activities, particu- Southfield-based PVM is oper- proved for Medicaid provide services for more than Twitter: @SherriWelch larly real estate, 5 percent Wholesale trade, 5 percent “On the whole, Oakland’s recovery continues to be supported by a U.S. economy that expands THE MILLER LAW FIRM through 2017 and by increasing Changing the Odds in our Clients’ Favor Detroit 3 vehicle sales, as well as by the county’s strong economic fundamentals,” Fulton said. Fulton and Grimes said last week at the Oakland County Eco- nomic Outlook luncheon that the county has added close to 80,000 jobs in the past four years and that 87 percent of the jobs lost from mid-2000 to the summer of 2009 have been replaced. This year, the county’s unemployment rate will match the national average of 5.3 percent and fall to 5 percent in next year and 4.6 percent in 2017, according to the re- L.Brooks port. In addi- Patterson: “When tion, the you get below 5 average real percent unemploy- wage is ex- ment, you’ve pected to reached full em- grow 4.6 per- ployment.” The Miller Law Firm is Recognized cent from 2014-17 to an annual average of as a Leader in Complex Business Litigation $58,266. Said County Executive L. Brooks Patterson: “When you get Q Automotive supplier counseling Q Commercial and business lawsuits below 5 percent unemployment, you’ve reached full employment, Q Employment litigation Q Shareholder and partnership disputes and we’re not that far off.” This year’s report was un- Referral fees honored on contingency fee cases veiled at the Detroit Troy Marriott 950 West University Drive, Suite 300 in Troy. Rochester, Michigan 48307 248-841-2200 millerlawpc.com Kirk Pinho: (313) 446-0412 Twitter:@kinkpinhoCDB 20150504-NEWS--0011-NAT-CCI-CD_-- 5/1/2015 10:35 AM Page 1

CRAIN’S DETROIT BUSINESS // May 4, 2015 11 SPECIAL REPORT

DUSTIN WALSH Reporter’s Notebook WEB: crainsdetroit.com/walsh MACOMB COUNTY TWITTER: @dustinpwalsh County eyes ways to boost shorelines In 2012, Macomb County Executive Mark Hackel and local governments committed to boost the county economy by addressing obstacles to waterfront redevelopment on Lake St. Clair and the Clinton River. Called the Blue Economy Initiative, the coalition set forth a plan to redevelop abandoned marinas, improve and grow local beaches and develop a marketing strategy for the county’s shorelines. The goal is to increase accessibility that has been long cut off by private fishing and boating groups. “We have a tremendous freshwater advantage,” Hackel said. “Over the years, our waterfronts, Lake St. Clair and the Clinton River, had developments that blocked public access. We’re now starting to see that change.” The 430 square miles of freshwater in Lake St. Clair alone has a $1.7 billion economic impact to the region, but increased public access could bring many more dollars. [PHOTOS BY LARRY PEPLIN] Fishing and recreational One major Macomb County employer, General Motors Co.,plans to create up to 2,600 jobs as part of an expansion of its Tech Center in Warren (above).Defense contractors boating and paddling, provide the such as BAE Systems (above,inset) remain one of the top county employers.And with a growing population,residential building permits have surged (below left). greatest opportunity, said Gerrard Santoro, program manager of land and water resources for Macomb County. “Many people don’t know that Lake St. Clair happens to be one of the national’s best fishing lakes,” Santoro said. “None of its Macomb makeover 19 species are stocked by the Department of Natural Resources. Old drivers (manufacturing) join new (tech) to restart county’s economy and it’s really putting us on the map across the nation.” Lake St. Clair was named the By Dustin Walsh Jim Jacobs. A unified force best bass fishing lake in the U.S. [email protected] While parts of One of the drivers of an improved by Bassmaster Magazine in 2013. hen the Warren City Macomb County remain regional perception of Macomb County To increase access to boaters Council last month bedroom communities is a realignment at the top, with a new and anglers, communities in for a blue-collar Macomb County are acquiring approved a 12-year tax county governance structure, plus more former marinas. New Baltimore is W abatement for a major workforce, its tech and cohesion in the business community. assessing the purchase of Schmid expansion and renovation of General services sectors — like Reducing the amount of Marina to transition the property Motors Co.’s Tech Center, it marked an Jim Jacobs: Found those GM Tech Center commissioners to 13 from 26 and into a public dock rental and a economic development win for the $561 million in jobs — continue to grow. electing a single county possible recreation facility to give county. iinvestments Meanwhile, Macomb’s boaters access to its downtown executive in 2011 restaurants and other attractions. A big one. workforce and allowed Macomb to Harrison Township and St. Clair The $419 million expansion could population base are changing as well. construct a single Shores are assessing similar create up to 2,600 jobs. GM is already the For one thing, its population is economic development opportunities, Santoro said. city’s largest taxpayer. If the company growing. strategy and streamline Clinton The initiative, with the invests as big as expected at the Tech But challenges to the county’s efforts, county and River Watershed Council, is publishing economic evolution include a skills gap a guide to paddling sports on the Center, that helps move ahead a trend of Mark Hackel: “We business leaders say. Clinton River called the Blue Water manufacturing and research and between available jobs and workers have something “People and busin- Trail in late May. development investment in the county. trained to fill them, and the ebb and flow special here.” esses are starting to “A lot of local governments are Manufacturing investments in the of contract wins and sales for big realize we have some- refocusing their attention to the county totaled $561 million between employers — such as automakers and thing special here,” Macomb County river as a resource instead of a 2011 and 2014, according to an their suppliers, defense contractors, dumping ground, like it was in the Executive Mark Hackel said. past,” Santoro said. economic forecast released this year by health care providers and professional Macomb Community College President service firms. See MACOMB, Page 12 20150504-NEWS--0012,0013-NAT-CCI-CD_-- 5/1/2015 10:36 AM Page 1

12 CRAIN’S DETROIT BUSINESS // May 4, 2015 SPECIAL REPORT: MACOMB COUNTY MACOMB,from Page 11: It’s not the ’90s, but county’s economy is good to grow

“We’ve improved our image. candidates than wars in Iraq and Afghanistan, the U.S. “None of this ing.” We’ve seen major investments, and jobs, we now Army Tacom Life Cycle Management means the jobs Mortgage work is up across the re- the county is really now setting itself have far more job Command in Warren remains one of gion, Lovell said, with many in Ma- up for future opportunities we orders than qual- the top employers in the county. growth is going to comb moving northward within the weren’t getting before.” ified candidates Tacom employs 7,500 and sup- be anywhere near county. Plus, newcomers to the Recent investments led to a near- to fill them,” plies as much as 65 percent of the county are settling in southern Ma- ly 45 percent reduction of unem- Sherman said. systems, soldier support and where it was in comb. ployed residents since 2010, lower- “The good candi- ground vehicles to brigade units the height of the First State Bank’s loan portfolio in- ing the unemployment rate from Craig Sherman: dates are work- stationed across creased 9.5 percent in 2014, to $374 12.4 percent in November 2010 to Now more jobs than ing, so we have to the globe, said 1990s. ... But the million from $344 million. Most of 6.8 percent in November 2014. job candidates identify those Maj. Gen. Gwen jobs (created) are the increase came from commercial But the jobs figures don’t tell the candidates and Bingham, who and industrial lending, Lovell said. whole story, Jacobs said. Although sell them on the opportunity.” assumed com- better jobs with The flood of new residents in the there has been a pickup of more To handle the influx of new or- mand of Tacom better pay and county is raising all ships, said Terry than 17,000 manufacturing jobs, ders, Omega Talent, which employs last year. Hamilton, president of St. John Ma- with the 2014 tally at 68,656, that’s 12, is setting up a program to help Tacom, a divi- requiring more comb-Oakland Hospital in Warren still 35.5 percent below 2000. recruit new graduates through sion of the U.S. education.” and Madison Heights. “None of this means the jobs higher education or skilled trades Gwen Bingham: Army Material “There’s no question that Ma- growth is going to be anywhere near programs, Sherman said. Tacom “busy with Command, con- Jim Jacobs, comb County is a great place to be where it was in the height of the “Right now, we spend a lot of a capital ‘B’ ” tributes $2.6 bil- Macomb Community College right now,” Hamilton said. “More 1990s,” Jacobs said. “We’re not going time with lateral hires,” he said. “But lion locally, in- people have insurance, people are to re-create those jobs, but the jobs as the demand keeps growing, we cluding expenditures on payroll, from 2008, when the unit executed moving back and investment activity (created) are better jobs with better see ourselves going in the direction taxes and contracting. $30 billion in contracts. is good. The general effect is: Let’s pay and requiring more education.” of finding fresh employees.” In 2014, Tacom executed $5 billion “If a soldier eats it, wears it, move ahead.” Craig Sherman, CEO of the Clin- The defense industry, another in contracts, with $1.6 billion going to drives it or shoots it, we oversee St. John Macomb-Oakland em- ton Township-based staffing and re- Macomb County staple, also fore- Michigan companies. For the 2015 that,” Bingham said. “While our ploys more than 4,000 in the county cruiting firm Omega Talent LLC, said sees a steady demand for talent. fiscal year, Tacom projects $6.2 billion numbers have gone down with with an annual payroll of $150 mil- the hiring equation has flipped. Despite a steep reduction in or- in contracts, Bingham said. workload, we are busy with a capi- lion. The hospital spends $100 mil- “Where there used to be more ders because of the winding down of Those figures are down sharply tal ‘B,’ underscored, bold. There’s lion annually on equipment, tech- not a single thing that happens in- nology and services and serves 30 side our gates without our partners percent of the county’s residents, outside the gates, and that means a Hamilton said. great economic impact to the re- That doesn’t mean St. John hasn’t gion.” consolidated some Macomb opera- Bingham also said new orders are tions. The former St. John North on the horizon, which translates Shores Hospital in Harrison Town- into more business to the Macomb ship closed in 2010 after outpatient County and regional economies. services were transferred. Frank Henke, executive partner in Population gains the Clinton Township office of Grand The promise of new jobs and a Rapids-based Warner Norcross & county on the rise has contributed Judd LLP, said the rapid rate of ex- to some small gains in the number pansion and investment in Macomb of residents. Population grew County has led to an increased need 2.3 percent, to 860,112, from April 1, for sophisticated business services. 2010, through July 1, 2014, accord- Warner Norcross plans to expand ing to the U.S. Census Bureau. from 12 attorneys to as many as 30 That’s higher than the population in the coming months in Clinton change in Wayne County, which Township to take advantage of new shrank 3.1 percent during that time, opportunities, Henke said. but lower than Oakland County’s The same goes for UHY Advisors 3 percent growth. Inc. in Sterling Heights. The ac- However, Macomb County out- counting firm hired an additional paced its peers in residential build- 20 people in 2014 and expects to in- ing permits in 2014, according to crease headcount as much as 15 data from the Southeast Michigan percent in the next 12 months, said Council of Governments. Tony Frabotta, chairman and CEO. Macomb issued 1,680 new resi- “Businesses in the county are de- dential building permits — single manding a lot more professional family, apartments and condomini- services of a more technical nature,” ums — in 2014, up from 1,205 in Frabotta said. 2012. Oakland County issued 1,405 David Girodat, president and CEO SUCCESSFUL BUSINESSES permits in 2014, according to of Fifth Third Bank Eastern Michigan, ™ SEMCOG. said the increased affluence of the DON’T HAPPEN BY ACCIDENT At First State Bank, home pur- region is presenting the bank its own chase transactions are up signifi- opportunity for growth. While business leaders focus on taking their companies to new heights, cantly year over year, said Eugene Fifth Third expects to grow from they trust Plunkett Cooney’s determined, distinctive and fearless attorneys to obtain Lovell, president 6 percent market share in metro the right results in the boardroom and the courtroom. and CEO of the Detroit to 10 percent in the next 11-branch com- few years and expects to reach that munity bank goal in Macomb County before the Q Banking & Finance QBusiness Transactions QHealthcare Law QReal Estate Law based in St. Clair neighboring counties, Girodat

QConstruction Law QCommercial Litigation QEnvironmental & Energy Law QTransportation Law Shores. said. “We antici- “We’re no longer slicing the pie Q Q Labor & Employment Law Estate Planning & Business Succession pate 2015 to be into smaller pieces in Macomb our best year for County,” he said. “There’s enough ATTORNEYS & COUNSELORS AT LAW Eugene Lovell: mortgage activi- growth to allow all of us to grow.” First State expects ty since the fi- Henry B. Cooney Disparity across a big mortgage year. nancial crisis,” President & CEO communities ® Lovell said. “Also, 248.901.4019 | [email protected] reflecting continued improvement But Macomb County is not within housing values, we have seen Michigan | Ohio | Indiana | www.plunkettcooney.com strong growth in home equity lend- See Next Page 20150504-NEWS--0012,0013-NAT-CCI-CD_-- 5/1/2015 11:03 AM Page 2

CRAIN’S DETROIT BUSINESS // May 4, 2015 13 SPECIAL REPORT: MACOMB COUNTY

[PIERRETTE DAGG/CRAIN’S DETROIT BUSINESS]

From Previous Page percent in Wayne County. County Executive Hackel doesn’t out its challenges. That’s because the see the gap as a problem. uptick in jobs and income isn’t uni- “A lot of our growth in population form across the county, Jacobs said. in the southern communities is “Clearly, there is a considerable from the city of Detroit,” he said. difference, economically, between “They are backfilling our residents the northern end and the southern as they migrate north, and there’s end of the county,” Jacobs said. nothing wrong with that. “While younger families are mov- “These residents are finding af- ing into the southern communities, fordable homes, and we’re happy to Central Michigan those incomes tend to be lower than provide opportunities for everyone those previously living there, and at every economic level. In fact, it’s University’s 11 local their needs are different. How do we critical we supply it because all of centers across integrate the interests of both our futures are linked.” Michigan and online groups?” Another source of population deliver the quality degrees you Communities such as East- growth is from immigrants. Those need and the flexibility Attend pointe, Roseville and St. Clair from Iraq and from India account any of the events Shores haven’t seen as quick of a re- for the largest increase, according you want. covery as communities farther to data from the U.S. Department of below and receive a code to north, Jacobs said. Homeland Security. Earn all three waive the $50 application fee!* Household in- Between 2003 and 2011, 18,260 come in Ma- Iraqis and 16,372 Indians came to *Application must be received between 5/12/2015 and comb County Macomb County. 5/29/2015. Applies only to Global Campus and online admissions has dropped That immigrant population could at CMU’sexcept Global DHA. Does Campus not apply to admission fees to the Mount Pleasant Campus. sharply since be- become a boon for the county, Ja- fore the Great cobs said. Recession, sur- “Most of the new Americans are Tour Tuesday Webinar Wednesday Twitter Thursday passed only by coming with skills which will be 5/12/2015 Wayne County. important for the future growth of 5/13/2015 5/14/2015 11 a.m. to David Girodat: Median house- the county — in particular, entre- 7 to 8 p.m. 7 to 8 p.m. Fifth Third expects to hold income preneurial skills,” he said. “Most of 7 p.m. add market share. dropped to the (immigrant population) are Visit any of our 11 centers Not able to visit a center. Join the conversation by $52,978 in 2013 part of families with young chil- across Michigan. Join in the live Webinar. following #CMUGlobal and from $71,979 in 1999, a decrease of dren, so there is a future genera- using it in your tweets. 26.2 percent, according to the U.S. tion growing up in Macomb Census. During the same period, County.” Ⅲ Dustin Walsh: (313) 446-6042 RSVP today! 877-268-4636 y [email protected] y global.cmich.edu/CMU3 household income dropped 23.9 Individuals with disabilities who need accommodation should call 800-950-1144, ext. 3018 at least one week before the event. percent in Oakland County and 28.5 Twitter: @dustinpwalsh CMU is an AA/EO institution (see cmich.edu/OCRIE). cmich.edu/GlobalCampus 41248 4/15 20150504-NEWS--0014-NAT-CCI-CD_-- 5/1/2015 10:37 AM Page 1

14 CRAIN’S DETROIT BUSINESS // May 4, 2015 SPECIAL REPORT: MACOMB COUNTY

Kosch Hospitality takes over operation of Blossom Heath Inn

By Sherri Welch wife, Julie, and sister-in-law led the percent, and we’re projecting about [email protected] renovations. the same (increase) for this year,” Rochester-based Kosch Hospitali- The restoration included new Kosch said, noting the northern ty LLC has assumed management of carpeting and paint, lighting up- Michigan operations have done Blossom Heath Inn, a city-owned grades, original hardwood restora- particularly well. banquet and events center in St. tion, ballroom dome restoration, At Blossom Heath, Kosch Hospi- Clair Shores, under a new 10-year new high-tech audiovisual equip- tality hosted a handful of events as contract. The revamped venue is ment, a new bar and bar room, the renovations were progressing, part of the company’s overall restoration of the patio, new furni- he said. And it’s booked about two growth strategy for this year. ture and, in the bar area, a wall dozen weddings and an equal num- Kosch took over operation of the mural by local artist Dan Melendez, ber of other events. center from Oak Management, said Kosch, 56. He projects the new venue will which had managed the venue for Exterior renovations and land- gross about $300,000 this year from more than 30 years until Kosch won scaping are also underway. events, but that’s less than half of the contract in January. A May 8 grand opening fundrais- what he is projecting for 2016 from During the first quarter, Kosch se- er, including automobiles from the the venue: $800,000 cured the liquor license for the prop- 1920s and ’30s, is sold out. Both event catering and contract erty and invested nearly $200,000 in Kosch, which began as a tavern dining are up, said Ryan Angott, interior renovations to the historic and restaurant operator in Sterling corporate marketing director at banquet center on Jefferson Avenue Heights in the early 1980s, today Troy-based Continental Services. As between Nine Mile and 10 Mile along manages onsite dining operations employers bring on more people, the city’s Nautical Mile. for several area companies and food sales are rising and corpora- Blossom Heath Inn opened in parks, ranging from the Huron-Clin- tions are hosting more events. The 1911 as a roadhouse. During prohi- ton Metroparks to Troy Community number of private events and bition, it was an “infamous Center, Walsh College, Monroe Coun- amount spent on them are also speakeasy,” Kosch says on its web- ty Community College and private picking up as the economy im- site. Evidence of basement bars and and public golf and country clubs. proves, he said. hidden walls still exist. It also caters events and operates The cost of the average wedding Interior renovations were aimed restaurants in northern Michigan, in Michigan has increased in the at taking the building back to its including Alpine Tavern & Eatery in past three years from about $27,000 roots, but with modern conven- Gaylord, Trout Town Tavern & to about $31,000, Angott said. iences, said Gordie Kosch, who co- Eatery in Kalkaska, and The Like Kosch, Continental is pro- owns Kosch Hospitality with his Boathouse near Traverse City. jecting the market will increase brother Gary. The company employs 400 and again this year. “Little to no resources had been posted $12 million in revenue last “People are loosening their belt a put into the facility for decades, and year, its owner said. little bit; it’s nice to see and definite- it showed,” he said, noting that his “We were up last year about 15 ly a trend,” Angott said. Ⅲ

AIM HIGHER Photo by Christopher Lark

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CRAIN’S DETROIT BUSINESS // May 4, 2015 15

SPOTLIGHT PEOPLE GEORGE PHIFER: Director, Huron-Clinton Metroparks ON THE MOVE George Phifer has been named Send news items and photos to [email protected] director of the Huron-Clinton Metroparks. As director, he serves ARCHITECTURE al manufacturing engineering direc- as CEO and is Jerry Attia to principal, Rossetti As- tor, Thermal Systems Division, Del- responsible sociates Inc., Detroit, from director of phi Automotive plc, Troy. for day-to-day marketing development and project operations of management, FINANCE the Huron-Clin- SORG Architects, Jim Jahnke to ton Metropoli- Washington, D.C. director, Blue River tan Authority. Also, Kirk Phillips Financial Group Inc., Phifer had to architectural Bloomfield Hills, been deputy design lead, from from managing Phifer director and director of hospi- director, Palisade COO of the tality design, Capital Manage- Huron-Clinton Metroparks. Hamilton Ander- ment LLC, Fort In 2010, Phifer was appointed Attia son Associates Lee, N.J. executive secretary to the Board Inc., Detroit, and Jahnke of Commissioners, serving as a Mike Shea to senior project manager, Vince Callaghan staff officer of the agency while from senior project manager, Hamil- to manager, Blue River Financial Group maintaining his responsibilities ton Anderson Associates Inc. Inc., Bloomfield Hills, from CEO, with the Metroparks Police De- Business Problem Solvers, Berkley. partment as police chief, a posi- CONSULTING Also, Scott Sharp to manager, tion he has held since 2008. David Kauppila to principal, Fulcrum acquisition support group, from CEO, Phifer, 51, worked for nearly Edge Inc., Bloomfield Hills, from glob- S. Lawrence & Co. LLC, Flint; and 20 years at the Pontiac Police De- George Petrulis to managing director, partment. He retired from the People on the Move acquisition support group, from department as a captain in 2004. announcements are limited to managing director, McLean Group He earned his master’s degree management positions. Email LLC, Chicago. from Eastern Michigan University, a [email protected] bachelor of business leadership person’s name,new title,company,city MANUFACTURING from Baker College and an associ- in which the person will work,former Paul DiLisio to senior vice president ate of applied science degree in title,former company (if not promoted of automotive and industrial original criminal justice from Oakland from within) and former city where the equipmentsales, Dayco LLC, Troy, from Community College. He is also a person worked.Photos are welcome; we director of sales and marketing, auto- graduate of EMU’sPolice School cannot guarantee their use. motive division, SKF USA, Northville. of Staff and Command. CALENDAR THURSDAY the GEM’s garage. Population Healthcare Manage- Crain’s2015 M&A Awards ment: Strategies That Work. 7:30- Join Crain’s Detroit Business, The 2015 Tigers. 11:30 a.m.-1:35 9:30 a.m. Modern Healthcare. in partnership with the Associa- p.m. May 13. Detroit Economic Club. Speakers include Joe Mullany, CEO, tion for Corporate Growth - Detroit Speakers are David Dombrowski, presi- Detroit Medical Center; Bruce Muma, Chapter, to meet the M&A Awards dent, CEO and general manager; and chief medical officer, Henry Ford winners and finalists and hear Brad Ausmus, manager, Detroit Tigers. Physician Network; and Thomas Sim- the stories behind the top trans- MotorCity Casino Hotel, Detroit. $45 mer, senior vice president and actions of 2014 from the deal- DEC members, $55 guests of mem- chief medical officer, Blue Cross makers themselves. bers, $75 nonmembers. Ticket sales Blue Shield of Michigan. Maureen The event takes place 5-9 p.m. end at noon May 12. Contact: (313) McKinney, editorial programs man- May 12 at the Troy Marriott. Tickets 963-8547; email: [email protected]; ager, Modern Healthcare, moder- are $100 in advance, or $95 for website: econclub.org. ates. MGM Grand, Detroit. $95. current ACG members. Groups of Contact: Jenna Trautman, (312) 10 or more are $95 each. Prereg- APACC 14th Annual Dinner Celebra- 649-5238; email: jtrautman@ istration closes May 11 at 9 a.m. tion. 5:15 p.m.-midnight May 16. Asian modernhealthcare.com; website: If available, walk-in registra- Pacific American Chamber of Com- modernhealthcare.com/detroit. tion will be $120 per person. merce. Keynote speaker is Bill Imada, For information, contact Kacey chairman and chief collaborative of- Collaboration for Power and Profit Anderson, (313) 446-0300, ficer, IW Group . MGM Grand Detroit. Breakfast and Symposium II. 8:30-11 [email protected]. Tickets $200 members, dinner only a.m. The Black Advantage III Busi- ($350/couple); $350, dinner and VIP ness Conference Biz To Biz Match. The Jayne Group, on personal and reception ($650/couple); $250 dinner Scheduled panelists: Eric C. Williams, corporate branding and marketing only for nonmembers ($400/ program director, Entrepreneurship strategies. Bastone Brewery, Royal couple); or $400 dinner and recep- and Business Law at Wayne State Oak. $35. Contact: Tonya McNeal- tion for nonmembers ($700/couple). University; Brian Ellison, principal of Weary, (866) 490-6233, email: Registration ends May 8. Contact: Intersection Consulting Group LLC.; the [email protected]. Erin Mclin, (248) 430-5855; email: Rev. Elreta Dodds, author and pub- [email protected]; website: apacc.net. lisher; Paul K. Rozier, “serial entrepre- UPCOMING EVENTS neur,” re-engineering strategist, and Learn About High-Profile Redevelop- Calendarguidelines. Visit business educator. Greater Grace ments. 11:30 a.m.-2 p.m. May 12. Com- crainsdetroit.com and click “Events” Temple, Detroit. Tickets: $25, collab- mercial Real Estate Women, Detroit. near the top of the home page.Then, orationforpower.eventbrite.com. Program features a panel discussion click “Submit YourEvents” from the about the Detroit Packard Plant, drop-down menu. Fill out the FRIDAY Michigan State Fairgrounds, Village of submission form, then click “Submit CEO Business Roundtable Luncheon. Bloomfield and M-1 Rail. Gem The- event” at the bottom of the page. Noon-2 p.m. Michigan Association atre, Detroit. $45 for CREW members for Female Entrepreneurs. A discus- and $65 for nonmembers. Lunch is More Calendar items can be sion with Camille Jayne, president of included; parking will be available in found at crainsdetroit.com/events. 20150504-NEWS--0016-NAT-CCI-CD_-- 5/1/2015 11:03 AM Page 1

16 CRAIN’S DETROIT BUSINESS // May 4, 2015

offices in Birmingham and Naples, nounced it has established PolyFlex ACQUISITIONS & Fla. Website: ckcagency.com. Products UG, Dusseldorf, Germany. MERGERS Ally Financial Inc., Detroit, and Mit- The new firm will provide sales, en- InfuSystem Holdings Inc., Madi- DEALS subishi Motors North America Inc., Cy- gineering, technical support and son Heights, a provider of infusion press, Calif., announced that Ally manufacturing capabilities to cus- pumps and related services for the will become the preferred financing tomers in Germany and the Euro- heath care industry, announced it source for Mitsubishi Motors in the pean Union and U.S. companies has closed the acquisition by its U.S., replacing the brand’s captive with German affiliations. Website: subsidiary of substantially all of the finance company, Mitsubishi Motors polyflexpro.com. assets of Ciscura Holding Company & DETAILS Credit of America Inc.Websites: Inc. Con-Way Freight , Alpharetta, Ga., and its sub- Submit news to [email protected] ally.com, misubishicars.com. , Ann Arbor, a sidiaries. Website: infusystem.com. less-than-truckload carrier and sub- Altair Engineering Inc., Troy, a sidiary of Con-Way Inc., announced Great Expressions Dental Centers Nederlander Detroit, part of Ned- (248) 200-6181. provider of computer-aided engi- the opening of its newest service PC, Bloomfield Hills, has acquired a erlander Organization Inc., New York neering and computing software center in Joliet, Ill. The $12 million, dental practice at 30260 Cherry Hill City, has renewed its relationship AVL Powertrain Engineering, Inc., and services announced that Airbus 41,600-square-foot freight facility Road, Suite B, Garden City. Website: with Fiat Chrysler Automobiles (FCA Plymouth Township, has been Defense and Space, a division of Air- will serve as a local hub from which greatexpressions.com. US LLC), Auburn Hills, and its awarded a $17 million project by bus Group NV, has joined the Altair the company will provide daily Chrysler brand to sponsor the the National Advanced Mobility Con- Partner Alliance, bringing commercial freight pickup and de- CONTRACTS 2015-16 Broadway in Detroit sea- sortium to collaborate research and Strength2000, for performing livery services throughout the Rubicon Genomics Inc., Ann son. This the fifth consecutive the- development work with the U.S. strength and stability analyses to greater Joliet region. Website: Arbor, a provider of kits to improve ater season the automaker has Army Tank Automotive Research, meet aerospace standards. Web- con-way.com. the performance of genomic ana- sponsored. As part of the sponsor- Development and Engineering Cen- sites: altairalliance.com, lytical platforms, has extended to ship, the latest Chrysler vehicles will ter, Warren, for an opposed piston, airbusdefenceandspace.com. Attorneys Title Agency LLC, Farm- three years its clinical supply agree- be on display at the Fisher Theatre, two-stroke single cylinder ad- ington Hills, a real estate title insur- ment with Agendia, Amsterdam, for Detroit. Website: broadwayin vanced combat engine technology American Society of Employers, ance company, has opened an of- use of its TransPlex whole genome detroit.com. demonstrator. The work will be per- Livonia, a trade association that fice at 125 Ottawa Ave. NW, Suite RNA amplification technology. formed at AVL’s Plymouth Town- provides people-management in- 350, Grand Rapids. Telephone: (616) Websites: rubicongenomics.com,. Talmer Bancorp Inc., Troy, has re- ship facility. Website: avl.com. formation and services to Michigan 965-3330. Website: atatitle.com. agendia.com. tained Assets International LLC, employers, has contracted with Southfield, as its asset recovery CKC Agency, Farmington Hills, a McLean & Co., London, Ontario, a MOVES ZipLogix, Fraser, a real estate firm. Websites: talmerbank.com, full-service public relations and division of Info-Tech Research Display Group, an event manage- technology company, announced assetsinternational.com. media services firm, has added five Group Inc., to provide human re- ment company, has moved from contract expansions and extensions new accounts to its client roster: sources services to member organi- 1700 W. Fort St., Detroit, to 6235 with three East Coast associations: Robert Dresner, owner of Focus National Kidney Foundation of Michi- zations. Websites: aseonline.org, Concord Ave., Detroit. Website: Greater Capital Area Association of Realty Inc., Southfield, and gan, Ann Arbor; City of Auburn Hills; hr.mcleanco.com. displaygroup.com. Realtors, Rockville, Md., and Wash- Lawrence Quick, owner of Reliable KLA Laboratories Inc., Dearborn; ington, D.C.; Greater Hartford Asso- Realty Group LLC, Royal Oak, have Motor City Comic Con 2015 in Novi EXPANSIONS Dr. Gary Burnstein Health Clinic has ciation of Realtors, Hartford, Conn.; agreed to collaborate to provide presented by Motor City Conven- PolyFlex Products Inc., Farmington moved from 90 W. University Drive, and Roanoke Valley Association of services to the multifamily sector of tions, Farmington Hills; and Beth Hills, a provider of custom reusable Pontiac, to 45580 Woodward Ave., Realtors, Roanoke, Va. Website: investment real estate. Telephone: Rose Real Estate & Auctions, head- trays, returnable containers and Pontiac. Telephone: (248) 309-3752. ziplogix.com. Dresner, (248) 877-9033, or Quick, quartered in Maumee, Ohio, with other packaging products, an- Website: garyburnsteinclinic.org. NAME CHANGE The Magic Stick, Detroit, part of the LENDING | TREASURY MANAGEMENT | BANKING | BUSINESS SERVICES Majestic Entertainment Complex, owned by Dave Zania, has been ren- ovated and opened as Populux De- troit, an electronic music venue, co- owned by Zania and Amir Daiza. Website: populuxdetroit.com. NEW SERVICES Gravity Software LLC, Southfield, an online cloud business management software company, has launched Gravity Software. Website: Best bank...3 years running. go-gravity.com. Autism Alliance of Michigan, South- field, has launched MiNavigator, a Best-in-class products. personalized resource and case management program specific to Michigan and provides up-to-date information for services, support Best of all… and resources. Website: autismallianceofmichigan.org.

local decision making. ManagedWay, Southfield, a provider of cloud services and collo- cation, has launched the Noction IRP (Intelligent Routing Platform) software, an Internet optimization system engineered by Noction Inc., Being a Michigan-based bank since 1917 means our expertise and loan decisions come straight out of our local office, not out Sunnyvale, Calif. The new technolo- of state. With best-in-class commercial products like Positive Pay and Business Express Deposit to optimize cash flow and SBA gy is designed to direct customer traffic to the best performing route. loans to finance growth, you’re always banking big…even when you’re banking local. Websites: managedway.com, noction.com.

Deals & Details guidelines. Make an appointment with a Business Specialist Email [email protected]. and learn why big doesn’t always mean best. www.thefsb.com/business | 866-372-1275 Use any Deals & Details item as a model for your release, and look for the appropriate category. Without complete information, your item will not run. Photos are welcome, but we cannot guarantee they will be used. 20150504-NEWS--0017-NAT-CCI-CD_-- 5/1/2015 2:30 PM Page 1

CRAIN’S DETROIT BUSINESS // May 4, 2015 17 New bike shops in paceline for Detroit openings

By Gary Anglebrandt services will be offered as well. been in decades, it’s an open ques- de Troit, that draw in visitors, as po- Special to Crain’s Detroit Business Hughes is upbeat about the tion as to whether downtown De- tential sources of business. Welcome to Detroit Bike City. downtown market, despite the troit has the capacity to support O’Keefe, the Metropolis Cycles This spring, five new bike shops Eastern Market episode. “It’s grow- several new shops. owner, previously managed The are slated to open within greater ing so fast, if I could have been “If a ton of shops open up, the Hub of Detroit, a nonprofit bike re- downtown Detroit, starting this down there last summer I would other guys are going to have to figure pair business on Cass Avenue on week with Detroit Bikes 1216 and its have been there,” he said. what their niche is going to be. We’re the southern edge of Midtown. grand opening inside The Albert In fact, he signed a 10-year lease. pretty well established,” said Hughes, Based on his experience there, he building in Capitol Park. It will be Other plans are underway for who also warns would-be bike retail- believes greater downtown Detroit the first retail location for Detroit- Eastern Market to get some bike re- ers not to underestimate the Michi- has enough sales capacity to absorb based bike manufacturer Detroit tailers. Wheelhouse Detroit LLC, gan winter. “You have five or six the new retailers. Bikes LLC. which runs a bike rental and retail months of the year to make money.” “Bikes are a versatile product. “We can’t wait for people to see spot on the RiverWalk, plans to Kelli Kavanaugh, owner of When times are good, people buy it,” said Detroit Bikes President and open a location in the Market after Wheelhouse Detroit, opened her them to enjoy life. When times are founder Zak Pashak. “Detroit Bikes the extension of the Dequindre Cut store in 2008, which is enough to tough, everybody buys a bike to get 1216 is beautiful and evokes the walkway is finished. And Motorless make it a veteran of the scene. She’s around and go to work,” said city’s rich cycling history.” City LLC is planning a custom bicy- said she’s had trouble getting the O’Keefe, who got into bikes 10 years When the 1,200-square-foot [ARA HOWRANI] cle retail and repair store this spring message out that her shop does re- when his car was stolen and he store opens on May 8, it will carry Detroit Bikes founder Zak Pashak: “De- on the East Fisher Freeway service tail and service, in addition to the needed cheap transportation. only Detroit Bikes’ two lines of bicy- troit Bikes 1216 is beautiful and evokes drive, behind the building that rentals and tours it’s known for. The winters are tough, but scal- cles, both of which sell for $699, as the city’s rich cycling history.” houses Zef’s Coney Island Restau- But she said the downtown bicy- ing back on staff hours helps mud- well as a line of accessories. rant and Supino Pizzeria. cle market is healthy, and winters dle through it. At the Hub, it was es- Meanwhile, in Corktown, Shayne now hopes to open June 1. Motorless City will offer retail and are manageable if the business pecially tough for about two O’Keefe is struggling against con- This will be Hughes’ second go at repair in the front of its 1,500-square- plans ahead and builds a financial months, he said. struction delays to Metropolis Cycles downtown Detroit. His first attempt, foot store and do custom metalwork, cushion to get through it. Not that he thinks it will be easy. LLC before prime cycling weather. a shop in Eastern Market, lasted the visible through windows to shop- “We’ve been growing our cus- O’Keefe left his job as general man- The 2,300-square-foot store, located summer of 2013, but the long winter, pers, in the back. Bikes will retail tomer base for eight years,” Ka- ager at The Hub last year to work on across Michigan Avenue from Slows nonfunctioning heat and bathrooms from $300 to $1,200. It also will do a vanaugh said. this project. He is funding the new Bar BQ, will carry new bikes in the — and a landlord who wanted to pickup and delivery repair service. Wheelhouse plans to open an- business with credit cards and range of $200 to $2,000, from raise rents amid such conditions — Business partners Chris Kiesling other location in greater downtown parental financing, he said. Ted Sli- brands such as Bianchi and Raleigh, led to a short stay, he said. and Al Schlutow planned to open a Detroit (separate from the Eastern winski, also a former Hub employ- but no used bikes. It will also feature His 1,400-square-foot shop will be year ago, but their first real estate Market one) by fall. The business is ee, will oversee the business and accessories and parts as well as full at Cass Avenue and Peterboro Street deal fell apart. Kiesling couldn’t help trying to get into a 2,000-square- staff of four people with O’Keefe. repair services. in the same building where The Pe- but laugh at how a year later he foot space — a big step up com- It’s a myth, he said, that Detroit is Downtown Ferndale Bike Shop, terboro, a planned Chinese restau- finds himself with so much compa- pared to its 500-square-foot spot on a land of free real estate where any- which has been open for six years, rant, is scheduled to open this fall, as ny. the river. Further details are on hold one can open a shop with very little plans to open a Downtown Detroit well as a tattoo shop and craft beer “It’s hilarious. ... Fast forward, until a lease is signed. money, despite suggestions to the Bike Shop in Midtown as soon as on- business. Bike prices will range from and now everyone is opening,” he Kiesling points to the increasing contrary. going construction is finished. An $300 to $10,000. New and used bikes said. population downtown and the “We’re paying market rates for opening planned for April 1 was will be in stock, along with acces- While bicycles are undoubtedly many large group bike events and my rent, and it’s my friend who postponed, and owner Jon Hughes sories, parts and clothing. Full repair more popular now than they have groups, such as Slow Roll and Tour owns the building,” O’Keefe said. REAL ESTATE JOB FRONT

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18 CRAIN’S DETROIT BUSINESS // May 4, 2015 KROGER,from Page 3: ‘No way a small grocer like Hiller’s would be able to compete’

fered this opportunity,” Homco Sid Hiller opened the downtown plan for a marketplace format loca- specialty and ethnic food markets tion plans online Friday, some read- said. “We’re working closely, hand in Detroit butcher shop that started it tion near the second Commerce that Kroger hasn’t seemingly been ers weighed in with concerns about hand with Jim Hiller.” all in 1941. Ten years later, he opened Township Hiller’s location, prior to too successful in penetrating.” whether the quality of specialty CEO Jim Hiller said that as he the family’s first grocery store in the Hiller’s deal, he said, noting, “the Hiller’s has been a leader in the goods and produce could be main- looks to the future of the supermar- Berkley, Jim Hiller said. Fast forward plan at this point is to maintain that “upscale” grocery market specializ- tained under the Kroger flag. ket business, it belongs more to a few decades, and the company re- Hiller’s location.” ing in their meats, seafood and spe- But Kroger has a very fresh repu- companies like Kroger than it does ported 2013 revenue of $168 million, The Hiller’s locations will be re- cialty food items such as organic, tation and also sells many local to companies like his. ranking No. 100 on Crain’s 2014 list of branded as Kroger stores and merge healthy products, said retail con- products, like Hiller’s, Homco said. “There’s no way a small grocer the largest 200 privately held compa- into Kroger’s Michigan division, sultant Cindy Ciura, principal of “The ethnic piece is something we like Hiller’s would be able to com- nies in metro Detroit. adding to its current 123 stores and CC Consulting LLC in Bloomfield hope to learn from Hiller’s. pete pricewise on national brands The Hiller’s stores in West Bloom- 64 fuel centers in the state. Hills. “Hopefully, we’ll do a good job of and private labels,” he said. field, Ann Arbor, Northville, Ply- The stores, which range from Many customers shopped transitioning those stores.” Kroger has succeeded in doing mouth, South Lyon and two in 30,000 to 70,000 square feet, will fit Hiller’s specifically for those items Kroger plans to do some minor what virtually no other grocery has, Commerce Township will become nicely with Kroger’s format, given and did general shopping at stores updates to the Hiller’s stores, largely Hiller said. “While they bring the part of Kroger’s Michigan division in that its average Michigan division like Kroger, Meijer and Wal-Mart, she on the front-end systems since it pricing advantages of a national July when the deal is finalized. store is 55,000 square feet, Homco said. uses more technology, Homco said. grocery store, they are intimately in- Kroger said it will assume the said. “As Kroger has been expanding The Northville store may need a lit- volved and supportive of local lease for the Hiller’s store at 3010 and inching into Hiller’s upscale tle more remodeling, she said, and Staffing situation growers,” just as Hiller’s is. Union Lake Road in Commerce markets — Commerce, for example may take a little longer to reopen “What do I say to my customers? Township, but it will close the store Kroger plans to interview and — there is a huge emphasis on the after ownership transfers. I’ve got a Kroger (Plus) card, and so there, given that its own recently hire as many of Hiller’s 800 employ- healthy section of the store called Kroger will spend $150 million on should you.” built store and fuel center is across ees as possible, Homco said. Simple Truth.” new stores, remodels and expansion The decision to sell was one his the street. There are 900 job openings right With the rising popularity of this in the Michigan division this year, family as a whole made, he said. Kroger had been looking to enter now across the company’s Novi- Kroger brand, the chain’s continued the most it’s ever spent in a single In striking the deal, “we had in the Commerce Township area even based Michigan division, “and there emphasis on meat and seafood spe- year, Homco said, noting it sees op- mind the future and security of our prior to the deal with Hiller’s, said will be more because of our cial pricing and new, expanded or- portunity in the Michigan market to employees, and as a family, the Communications Manager Ken growth,” she said. ganic areas in the produce depart- fill those “pockets of void.” ability to kind of untie ourselves McClure, who was a COO of Hiller’s The Hiller’s acquisition enables ments, “it became harder and Aside from the site plan it sub- from our business which has been before joining Kroger in January Kroger to obtain locations in popular, harder for Hiller’s to compete as a mitted in Commerce Township, so integral for our family for 75 2014. dense markets at grandfathered lease smaller grocer without the huge Kroger has site plans pending for a years.” It had already submitted a site rates, said Emily Todebush, client buying power that Kroger has.” store in Royal Oak at 12 Mile Road strategist at Southfield-based retail and Stephenson Highway, and an- Retaining customers consulting firm JGA Inc. in an email. other in the Grosse Pointe-to-Ro- “I think Hiller’s was an interesting How does Kroger plan to retain seville shopping area, McClure choice for Kroger to acquire, in that the customers who were loyal to said. Ⅲ it fits nicely into the Kroger model, Hiller’s as Kroger customers? After Sherri Welch: (313) 446-1694 but helps them expand into some Crain’s posted news of the acquisi- Twitter: @SherriWelch

SAKTHI,from Page 3: Supplier hires ex-offenders

Department of Corrections to pro- part of the grow- from the MSF, is expected to create vide parolees with certificates of ing social pro- 350 new jobs, the MEDC said last employability, detailing which edu- gressiveness of week. cational programs they completed, the industry. Sakthi is expanding to produce conduct history and work record. “This is part of its aluminum castings,which it will The law also established legal the changing de- supply to North American and protections for employers who hire mographics of transplant tier-one suppliers and ex-offenders. our business automakers. Sakthi plans to shift The corrections department Julie Fream: A community,” 90 percent of its aluminum castings spends, on average, $30 million an- trend toward “social Fream said. “As work, which is currently done over- nually on re-entry services for commitment” more millennials sees, to its Detroit plant. parolees, which include a mandato- — which see so- The city of Detroit is also planning ry GED program if they did receive a cial commitment as instrumental in to recommend a Renaissance Zone high school diploma as well as train- choosing a company — come into tax exemption for the expansion, as ing services, said Chris Gautz, the de- the workforce, we’re going to see this well as a property tax abatement. partment’s public information offi- more and more.” Sakthi is also planning to redevel- cer. Sakthi’s desire to hire ex-offend- op the abandoned former South- “As a department, we have been ers stems from its rapid growth in western High School through a designing programs that encourage Southeast Michigan, as well as newly created joint venture. the input of specific employers who supporting the community, Verma Verma said the plans are not so- have specific needs for skills their said. lidified, but the project will include future employees need to have,” The auto supplier received a retrofitting the school to include of- Gautz said. $1.5 million grant in 2012 to estab- fice space, an educational aspect “We also work with local and re- lish the Detroit location, a former tied to the community and ware- gional partners to identify emerg- ArvinMeritor plant. The state will housing space. ing sectors so that we can position make the final payout for that grant Verma said $10 million will be our parolees for jobs in those fields in June, the Michigan Economic De- spent on the redevelopment, but that by training them for those types of velopment Corp. said. figure could shoot up to Call Paul Mattes jobs while they are incarcerated.” Sakthi entered the North Ameri- $30 million if Sakthi sees opportunity Vice President-Principal Gautz previously worked as can market in 2012 after acquiring for warehousing products tied to the Certiﬁed Risk Architect Crain’s Lansing correspondent. the former ArvinMeritor plant on construction of the New International The corrections program offers West Fort Street. The supplier ac- Trade Crossing Bridge near its site. classes in business education, auto quired the plant for $7.6 million, ac- Preparation work for the $2.1 bil- tech, building trades, custodial cording to real estate information lion publicly owned bridge project, maintenance, food tech, horticul- database CoStar Group. funded by the Canadian govern- ture, optical, welding and machine The Michigan Strategic Fund ment, has already begun. tooling. awarded Sakthi with a $1.5 million “We see so much opportunity in It’s time to rethink your insurance strategy Julie Fream, president of the grant toward the plant. Detroit,” Verma said. “We have good Troy-based Original Equipment Sup- Now, Sakthi is doubling down in support, are finding good people 888.525.7575 | 586.323.5700 | sterlingagency.com pliers Association, said the organi- Detroit with the planned $31.9 mil- and are finding the success to help zation isn’t aware of other suppliers lion expansion. rewrite this city’s history.” Ⅲ Sterling Insurance Group is a Michigan based company. making a formal commitment to The project, supported by a $3.5 Dustin Walsh: (313) 446-6042 hire parolees, but does see this as million performance-based grant Twitter: @dustinpwalsh 20150504-NEWS--0019-NAT-CCI-CD_-- 5/1/2015 5:48 PM Page 1

CRAIN’S DETROIT BUSINESS // May 4, 2015 19 [PIERRETTE DAGG/CDB]

GRIDLOCK, from Page 1: Congestion tarnishes Macomb County’s ‘Golden Corridor’

gone” on Hall Road, Sowerby said. Development continues on east edge Hall corridor our five-year plan now,” Forbes said. the resulting development boom of “Some of that is because of the in- the 1990s and early 2000s. The coun- Alternate routes? tense competition, and some of The Macomb County portion of the M-59 corridor extends all the way from ty’s population increased from about that is because if you want to go out Dequindre Road to just east of I-94, with the bulk of the development and In the near term, MDOT is focus- 788,000 in 2000 to an estimated for a casual dinner, not everyone congestion concentrated between Van Dyke Avenue and Romeo Plank Road. ing on its night and weekend pave- 860,000 in 2014 — a 9.1 percent in- wants to fight the traffic. M-59 is op- Communities along that stretch include Utica, Sterling Heights and Shelby, ment repair program, which is ex- crease, according to U.S. Census fig- tional if you’re going out (to eat). Macomb and Clinton townships. pected to end in mid-July. Crews are ures. “It’s the yin and yang of being on While much of the Hall Road corridor is fully developed, areas on the eastern working on both sides of Hall be- Sowerby, the broker, has helped a powerful corridor. Merchants edge are still filling in. tween Elizabeth Road and I-94. move that growth along. don’t like the traffic, but they love For example, development continues at Chesterfield Corners, a shopping MDOT is conducting the work In the past year, he has done the people.” from Friday evenings to 5 a.m. on three major deals on Hall: center north of Hall and east of Gratiot Avenue. Kicking off in 2001 with Ⅲ The average daily traffic count on construction of Wal-Mart, the development now includes Menards, Bob Mondays to minimize the impact on Crest Automotive Group’s sale M-59 near M-53 — the busiest sec- Evans, Hampton Inn, Holiday Inn and other businesses. traffic, Forbes said. Because the sec- of its dealership between Groesbeck tion of the road, according to the tion of road is east of Hall’s restau- Highway and Gratiot Avenue to Michigan Department of Transporta- Colin Forbes, the Michigan Department of Transportation projects and rant district, business owners are less Causley Automotive Group LLC, tion — is 102,700 vehicles. While contracts administration engineer who oversees work in that section of Macomb impacted by construction, he said. which now operates Causley that falls short of the 128,300 vehi- County, recalls that just a few decades ago Hall Road was mostly farmland. Bottom line, there is no easy way Hyundai Mazda. cles that travel I-696, about nine “It’s just amazing, the last 25 years, how it has built up,” he said. to make a major fix to gridlock, said Ⅲ Scottsdale, Ariz.-based Stone- miles due south, M-59 offers many Mike Labadie, a transportation en- gate Properties’ sale of 6.5 acres of more entrance and exit points than gineer and group manager in the land between Card Road and Eliza- its controlled-access cousin. And section of Macomb County. When “We’re going to be reviewing the Farmington Hills office of Fleis and beth Road in Clinton Township to All that means one thing: slow traffic. it’s done, it should improve traffic need to increase capacity,” Forbes VandenBrink. The Grand Rapids- Pro Motors LLC, of New Jersey, for the In terms of moving traffic smooth- flow, he said. said of the span, which carries based company is a consultant for planned All Pro Nissan dealership. ly, sometimes Hall Road works and “Reconstruction is going to help 60,000 vehicles a day. MDOT, township government, de- Ⅲ Sale of the closed Stu Evans Lin- sometimes it doesn’t, said Robert with mobility,” Forbes said. “We’re At Garfield Road, headed east, velopers and others. coln Mercury dealership near Hoepfner, director of the Macomb going to look at pretty much every- Hall decreases from four lanes to Creating a northern I-696, a Romeo Plank in Clinton Township County Department of Roads. thing. If we can improve right turn three. MDOT is considering adding below-ground freeway using service to Scottsdale, Ariz.-based Spirit Cap- “It probably carries more traffic lanes, median lanes — we’re going a fourth lane there. drives to reach businesses, would be ital LLC. The site now is home to an at rush hour than it was designed to look at all of that.” The agency also would look at prohibitively expensive, he said. LA Fitness gym. for,” said Hoepfner, whose agency MDOT decided to tackle that improving traffic signal timing. “(And) think of the impact on the Because the M-59 corridor is does not have authority over the stretch of Hall as part of its regular MDOT will design the expansion businesses that rely on passerby largely mature, much of the devel- state road. “I would prefer not to evaluation of roads it maintains. The at the same time as the M-53 to traffic,” he said. opment going forward will be re- travel it on rush hour. If you’re not in agency determined patchwork fixes Hayes project, Forbes said. But the Other solutions could be to cre- purposing tired properties. rush hour, it’s a great road.” would no longer be cost-effective. second project will have to overcome ate limited-access lanes near the “What you’re seeing now is what I The most sluggish section seems “Every year, we review our road several hurdles — including comple- median for express traffic or to cre- just did with LA Fitness,” Sowerby to be from Garfield Road to just east conditions, countywide and region- tion of an environmental impact as- ate higher-capacity, alternate routes said. “You don’t see any big bang of Romeo Plank Road, Hoepfner said. wide,” Forbes said. “The road is show- sessment and getting input from north or south of M-59. going on, but you see a lot of stuff “The cause of this, in my opinion, ing some significant deterioration business owners who would be af- With limited funds and serious getting recreated.” (is) there are a lot of traffic signals over the last five years. There comes a fected by a major reconstruction road safety problems, though, the Only about three or four large there,” he said. “When you build point when it doesn’t make sense to project. state’s first priority won’t be improv- parcels remain undeveloped in the large traffic generators, this is what spend significant dollars on repairs.” The project’s biggest challenge, ing traffic flow, he said. corridor — including a 9.2-acre site you get.” The reconstruction of Hall from though, will be MDOT’s ability to “When you’ve got bridges falling east of the Causley dealership. Solutions are limited, since there’s M-53 to Hayes could lead into a fu- secure funds. With a crumbling in- down, maybe you better fix those Sowerby has the site listed. That little room for widening, he said. ture phase of road improvement, frastructure and a Tuesday ballot first,” he said. means further development isn’t but MDOT hasn’t made any definite measure to increase road funding likely to ratchet up the gridlock Road improvements? A mature market plans, Forbes said. That $36 million uncertain to get voter approval, the much more, Sowerby said. Get in line phase would involve the two-mile state is in a cash crunch. The corridor has been taxed by “The good news is, I don’t think MDOT, which does traffic light stretch from Hayes to Romeo Plank. “Hayes to Romeo Plank is not in decades of population growth, and the traffic is going to get any worse.” Ⅲ timing studies every couple of years, recognizes the issues and is readying to take a stab at improving traffic flow. But businesses and drivers are in for a wait before they get any major relief. While road crews have been patching pavement since the begin- ning of April, the next major reconstruction project in the congested corridor won’t begin until 2017. That’s when MDOT expects to begin a $30 million effort to rebuild the two-mile stretch of Hall from Delco Boulevard, just east of M-53, to Hayes Road in both directions. MDOT expects to finish the design phase of the project, which will begin in June, in December 2016. It’s too early to determine whether rebuilding that part of the road, which is four lanes in each direction, will take one or two years, said Colin Forbes, the MDOT projects and contracts administration [LARRY PEPLIN] engineer who oversees work in that The average daily traffic count on M-59 near M-53 – the busiest section of the road – is 102,700 vehicles.Further complicating traffic: There are many exit and entrance points. 20150504-NEWS--0020-NAT-CCI-CD_-- 5/1/2015 5:28 PM Page 1

20 CRAIN’S DETROIT BUSINESS // May 4, 2015 NANOVERE,from Page 3: Chemist’s coating defies elements, doubles company revenue

apply Nano-Clear to passenger ship How Nano-Clear works of dollars. There are far more oxi- lifeboats from the world’s major dized surfaces than new products.” cruise lines, such as Cunard, Royal Nano-Clear is an anti-oxidant From lifeboats to oil rigs Caribbean, P&O Cruises and Holland industrial top coat that fights the America, Choate said. More cruise corrosive effects of long-term What broke the market open for lines are interested. exposure to air, sunlight and Nanovere was getting into that Additionally, Southport, Conn.- chemicals. The application also is cruise ship market. based industrial shipper Principal extremely hard, helping resist Lifeboats on cruise ships typical- Maritime Management LLC will use chipping and abrasion. ly are re-polished or repainted every Nano-Clear on its fleet of Princemar The material is very dense, has low four months, Choate said, but the crude oil tankers, he said. viscosity, deeply penetrates the vessel owners are paying to shine a On land, Chicago-based GATX surface, and exceeds automotive material that’s not designed to last Corp. is among the rail car compa- OEM standards. in the sun — increasing mainte- nies using Nano-Clear to preserve Without revealing his scientific trade nance lifecycle costs. thousands of tanker cars crossing secrets, founder Thomas Choate “The problem was that the polish the country. said the key to Nano-Clear’s only lasts a few months. The materi- “The environ- protective and restorative properties al is not designed to have long-term ment on a train, comes from his lab work reducing UV resistance,” Choate said. with all the the size of the polymers within the Oxidation is the enemy. chemicals coating’s molecular makeup, along [NANOVERE TECHNOLOGIES] In simple terms, oxidation is the they’re carrying, with its ability to react to the Dave Ashley, director of Southampton, England-based Nanotech Marine Services, when a surface is exposed to oxygen is pretty harsh,” surface to which it adheres. inspects a lifeboat from the cruise ship Queen Victoria after it was coated with and over time the interaction causes Choate, 49, said. Nano-Clear from Brighton-based Nanovere Technologies. a loss of electrons — causing rust, Japanese elec- “We start with the architecture of spoiled fruit, or the dulled surface of a Thomas Choate: tronics giant the polymer,” Choate said. points for refinishing products like on research and design before mov- lifeboat hull. Sunlight hastens the re- “It’s not magic pixie Toshiba Corp. has What sets the product apart from lifeboats is gloss protection. In the ing into selling the products. action. dust or snake oil. It used Nano-Clear similar coatings is that it can be case of lifeboats, keeping the finish “In the last three years, we fo- Ship and boat hulls are exposed is real science.” for factory safety applied directly to already oxidized bright and shiny is a safety necessity. cused on taking our own intellectu- not only to salty sea air, but relent- applications, ac- surfaces, not just new ones. Since The gloss loss for Nano-Clear- al property and presenting it to the less sunshine, especially cruise cording to Nanovere’s client list. most surfaces in need of protection coated surfaces over 10 years is just marketplace,” he said. ships in the bright Caribbean. 4 percent to 5 percent, Choate said, Including Choate and his wife Hence, the glossy orange (or yel- Off the shelf: $269 a gallon already are out in the world, that’s a huge potential market. while other coatings result is a 30 (Katie, vice president of operations), low) and white hulls of lifeboats — Such clients are fueling the small percent to 40 percent loss of shine the company had eight employees. intended to be sharp colors that con- company’s growth: Nanovere’s rev- over that time. Choate said he’s the primary trast against the darker sea water to enue in 2014 was $1.3 million, Carnival Corp. & plc hired Ashley’s “It’s not magic pixie dust or snake chemist, and the manufacturing visually aid rescue — soon fade. Choate said, and he’s estimating $2 company last year to solve the oil. It is real science, real chemistry, processes are kept secret. And that’s a costly problem for million for this year and $4 million lifeboat oxidation issue for the com- validating by companies around the Nanovere has a handful of in- ship owners, especially those haul- for 2016. He predicts it will keep pany’s vessels based in the United world,” Choate said. vestors who own 20 percent of the ing hundreds of thousands of pas- doubling annually as the company Kingdom. It’s also science that Choate started company after buying in for about sengers for whom safety is a priority. expands its production space and Nanotech Marine specializes in learning about early in his career — $1 million, Choate said. He owns “It affects appearance and safety. adds more clients. high-end finishes for yachts and very early. As a teenager, Choate got the remaining 80 percent, and said A lightly oxidized boat is not as Some revenue is derived from boats, but a conversation between his start in R&D by creating dental he’s tried to buy out his investors, bright,” Choate said. “Everything the licensing of polymers for coat- Ashley’s son and a Carnival execu- materials such as crowns and den- but they refuse because of the rap- needs to be immaculate on that ings produced by other companies tive whose boat was being refin- tures, and eventually created a dental idly improving financial success of ship.” such as Nippon Paint, Choate said, ished eventually led to a successful supply and manufacturing firm. the company. The coating eventually could be but most comes from the sale of test of the Nano-Clear coating on “I saw gaps in the dental industry Some of Nanovere’s other indus- used to seal the entire hull of ships, Nano-Clear. It retails for $269 a gal- the liner Queen Elizabeth’s lifeboats from a materials standpoint,” he trial coatings are manufactured Choate said. lon but is sold to distributors in bulk during Mediterranean cruising. said, adding that as a teenager he under license in China for the Asian The 26 lifeboats of the Carnival- at wholesale prices. Nanotech had previously was creating teeth for the Detroit Pis- market, but Nano-Clear is solely owned Azura, sailing under the For the cruise line industry, it searched for a product that would tons and then for professors while a produced in Brighton at the firm’s P&O Cruises brand, are getting takes 1 to 2 gallons of Nano-Clear to provide long-lasting oxidation re- student at the University of Michigan. 3,000-square-foot facility. It can Nano-Clear treatments this year. coat a standard commercial sistance, and eventually settled on He later sold his dental company make about 1,000 gallons a day. It’s not an overnight revenue lifeboat, Choate said. Lifeboats can Nano-Clear after experimented to Pennsylvania-based American The plan is to find a 6,000- to windfall, however. Cruise ships typi- be coated in 24 hours and air-dried, with it, Ashley said. Dental Supply and used undisclosed 10,000-square-foot building in 2016 cally do a full re-fit, including fresh- he said, meaning they can do a “We were quite skeptical at first. the proceeds — along with his own because of increased production ening the lifeboats, every three to ship’s inventory of boats in about a It’s not an easy product to apply,” assets, but no borrowing — to launch needs, Choate said. four years, Ashley said. week. (Two lifeboats at a time is typ- Ashley said. “Many boat yards don’t Nanovere in 2003. Because the company is small, Nanotech Marine has an upcom- ical while a vessel is in dry dock.) allow spray finishes.” “I took everything that I could and demand is growing, the busi- ing contract to coat the 18 lifeboats Today’s typical cruise ship, with Instead, they had to perfect a and didn’t borrow from anyone, and ness plan is to eventually find a from the Queen Victoria, the sister several thousand passengers and method of applying the coating changed my lifestyle to reduce ex- global company that needs to fill a ship of the Queen Elizabeth and crew aboard, has anywhere from 18 with rollers. penses, and I put everything into fo- gap in its product line, he said. Queen Mary 2. to 26 lifeboats. They usually seat 150 Nanotech opted to use Nano- cusing full time on the research and “As we scale, we’ll partner with Germany’s Fassmer GmbH & Co. people (and for anyone doing the Clear for the test on the Queen Eliz- development,” he said. leading paint formulators,” Choate KG, whose maritime services in- math, the ships have dozens of large abeth, a Carnival vessel operated by He used more than cash from the said. clude manufacturing commercial inflatable life rafts to complement its upscale Cunard Line. dental business to create Nanovere; As revenue increases, he intends lifeboats, intends to use Nano-Clear the traditional lifeboats). “We applied a patch on one of he said his experience in creating to add a CEO to handle the business (via Nanotech Marine’s services) on Marine paints and finishes were the boats they suggested, and we distribution channels and creating aspect of Nanovere, he said, be- an order of 64 lifeboats for a cruise a $430 million business domestical- left it with them. After four months, relationships gave him a road map cause he knows running the com- line in 2017-18, Ashley said. Other ly in 2010, according to the most re- they observed the Nano-Clear coat- for the new company. He also used pany isn’t what he does. shipping lines and even oil rig firms cent data available from a U.S. Cen- ing working, while the surface his knowledge of surface protec- “For now, I’m focusing on being have been calling his office to ask sus Bureau’s industrial report via the around the test patch was already tions from dentistry and applied the CEO, running the company, about Nano-Clear, he added. Washington, D.C.-based American starting to fail and show oxidation,” them to industrial surfaces. building out the revenue,” he said. “Really, Tom’s product is the only Coatings Association. Ashley said. “I took from the concepts of the “But at the end of the day, my core coating quite like it,” he said. The products are a niche in the Everyone involved was pleased, dental industry, including high abra- competency is in the laboratory. I Dennis Haag, owner of Lennox $5.3 billion coatings industry, the and the market opened for Nan- sion resistance, and developed the know I’m not the guy long term. I Twp.-based Strategic Visionary So- association said. otech and Nano-Clear. materials (for the coatings compa- have a family. I want work-life bal- lutions LLC, called Nano-Clear a The vendors using Nano-Clear “They’ve indicated they want all of ny),” he said. ance. I’m not the guy to bring this to “paradigm shift” in lifecycle mainte- sing its praises. the lifeboats done. They want Queen After launching Nanovere and a billion dollars.” nance budgeting. His firm is using “Look at any cruise ship lifeboat, Mary 2 done early next year,” Ashley spending years experimenting with Choate said he’s open to a sale, Nano-Clear to refinish the epoxy and its orange is badly oxidized. It’s said. “Once we got those guys on polymers, he eventually developed but it’s premature now. He would coating in some of Michigan State the same problem for any gel coat board, we found it would be much a series of industrial coatings in sell once revenue has increased sig- University’s pools. surface,” said Dave Ashley, director easier to penetrate the market.” conjunction with BASF, Bayer Mate- nificantly. “Everyone has a corrosion prob- of Nanotech Marine Services, based rialSciences and Alcoa. “It’ll take far more revenue,” he lem. It’s a fact of life,” Haag said. Ⅲ Dental roots in the English port of Southampton. Choate said he spent Nanovere’s said. “The value of this tech in the Bill Shea: (313) 446-1626 The British office of cruise giant One of Nanovere’s major selling first decade mostly concentrating global marketplace is in the billions Twitter: @Bill_Shea19 20150504-NEWS--0021-NAT-CCI-CD_-- 5/1/2015 7:02 PM Page 1

CRAIN’S DETROIT BUSINESS // May 4, 2015 21 DVP, from Page 1: VC entity reaffirms investment pace, focus CRAIN’S DETROIT BUSINESS might demand quick returns. Companies closed or sold by DVP and 2010 failed outright, with their “Our limited partners all have a assets being liquidated. www.crainsdetroit.com HiredMYWay: Closed in 2013. Started as a hiring site but closed after several long-term view of this business and Since that includes later-stage as Editor-in-Chief Keith E. Crain reinventions. Group Publisher Mary Kramer, (313) 446-0399 what we’re trying to accomplish, and well as seed-stage investing, the or [email protected] Chalkfly: Sold last November. At the time of the sale, Jake Cohen declined to Associate Publisher Marla Wise, (313) 446-6032 what it takes to percentage of failure is likely higher or [email protected] grow an ecosys- say whether the deal could be considered a successful exit for DVP.Sources for seed-stage companies. Executive Editor Cindy Goodaker, (313) 446-0460 tem,” said DVP familiar with the deal say the company was sold as a way to salvage “Not all your early-stage invest- or [email protected] Managing Editor Jennette Smith, (313) 446-1622 partner Jake something for its investors. ments are going to work out. At or [email protected] Cohen. some point you have to say, ‘That Director, Digital Strategy Nancy Hanus, (313) 446- StyleCaster: Sold. A New York-based fashion site for young women. 1621 or [email protected] That has al- company is not going to make it,’ Managing Editor/Custom and Special Projects lowed DVP to Sociocast: Sold. A New York-based data analytics company. and move away. DVP is doing just Daniel Duggan, (313) 446-0414 or [email protected] grow the local Flud: Closed. A California-based social news site. what it needs to do,” said Adrian Senior Editor/Design Bob Allen, (313) 446-0344 industry to the Fortino, the former Invest Detroit or [email protected] Miso: Closed. A music education app. Senior Editor Gary Piatek, (313) 446-0357 Jake Cohen: point where VC vice president who opened the Ann or [email protected] Growing an activity here Arbor office of the Houston-based Web Editor Kristin Bull, (313) 446-1608 or [email protected] “ecosystem” eclipsed Ann Success stories from the DVP portfolio Mercury Fund last year. Research and Data EditorSonya Hill,(313) 446-0402 Arbor, the state’s But it was the collapse of a funding or [email protected] normal hotbed of VC activity, in LevelEleven, which makes sales motivation software, was one of 12 round for another highly touted DVP Web Producer Norman Witte III, (313) 446-6059 companies nationwide that presented at the annual Google Demo Day in or [email protected] 2014. company, Ginkgotree Inc., that really Editorial Support (313) 446-0419; YahNica Craw- Silicon Valley in April, winning the Game Changer award. ford, (313) 446-0329 Detroit ranked 38th nationally, ac- fueled DVP rumors. The firm was Newsroom (313) 446-0329, FAX (313) 446-1687 , cording to National Venture Capital Detroit Labs, which designs custom smartphone apps for customers, long- founded in Georgia but company co- TIP LINE (313) 446-6766 Association, with $106.1 million in- ago outgrew its incubator space in the Madison Building and keeps adding to founder and CEO Scott Hasbrouck REPORTERS vested in 18 deals. Ann Arbor was its space in the 1520 Woodward building. moved it to Detroit, and into Gilbert’s Jay Greene, senior reporter Covers health care, in- Madison Building surance, energy, utilities and the environment. No. 46, with $67.2 million in 21 deals. In January, iRule closed on an investment round of $2.5 million. The round was , in 2013 after getting (313) 446-0325 or [email protected] “I give them credit,” said a venture a DVP-led investment of $750,000. Amy Haimerl, entrepreneurship editor Covers led by Kramer Electronics Ltd., a large Israeli company that will distribute entrepreneurship and city of Detroit. (313) 446- capitalist who asked to remain iRule’s products for controlling high-end home and office entertainment. Last fall, Hasbrouck told Crain’s 0416 or [email protected] anonymous. “They got the VC com- he was about to sign documents for Chad Halcom Covers litigation and the defense in- Are You A Human began as a project by University of Michigan students to dustry. (313) 446-6796 or [email protected] munity, which can be cynical, excited a funding round of $6 million for his Tom Henderson Covers banking, finance, tech- about what was going on in Detroit.” create simple games that websites could use to replace captchas, the often company. It has licenses with book nology and biotechnology. (313) 446-0337 or indecipherable string of letters and numbers that site visitors are supposed [email protected] The question is whether they will publishers to allow university pro- Kirk Pinho Covers real estate, higher education, to identify. The company now uses algorithms to identify which visitors to Oakland and Macomb counties. (313) 446-0412 or continue to look at Detroit if DVP fessors to craft their own course [email protected] isn’t stable. sites are humans and which are bots. Last week, it announced a contract with material at a fraction of the price to Bill Shea, enterprise editor Covers media, PK4 Media that will allow the Los Angeles-based company to charge a higher advertising and marketing, the business of Said a second area venture capi- students compared with traditional sports, and transportation. talist, who also asked not to be rate by being able to show its clients that ads are only shown to humans, not textbooks. (313) 446-1626 or [email protected] bots. Dustin Walsh Covers the business of law, auto named: “People are worried that if One Ann Arbor venture capitalist suppliers, manufacturing and steel. (313) DVP becomes inactive, Detroit will Marxent Labs designs 3-D product demos for manufacturers and retailers. who asked not to be named had 446-6042 or [email protected] Sherri Welch, senior reporter Covers nonprofits, stop being a place you can go to get Marxent Labs launched in June 2011 with an app that allowed anonymous committed to the deal, which he services, retail and hospitality. (313) a deal done.” social chat. Marxent now operates as a company that develops iOS and thought was imminent, only to be 446-1694 or [email protected] Hermelin reiterated Gilbert’s Android-augmented reality apps and games for retail customers and told the deal had collapsed. ADVERTISING commitment to Detroit. marketing campaigns. Hasbrouck told Crain’s that a Sales Inquiries (313) 446-6032; FAX (313) 393-0997 Sales Manager Tammy Rokowski “Dan views entrepreneurship book publisher had verbally com- Senior Account Executive Matthew J. Langan and the tech startup environment is mitted to invest $2 million in that Advertising Sales Christine Galasso, Catherine one of the key legs on the stool that ePrize Inc. in Hermelin also remains as man- round, but changed its mind after a Grace, Joe Miller, Sarah Stachowicz Classified Sales Manager Angela Schutte, (313) is going to reposition Detroit for 1999, wants to aging partner of Detroit-based bad quarter. A difference of opinion 446-6051 economic growth, and we’re going take worldwide. Rockbridge Growth Equity LLC, a pri- with DVP executives in how to fund Classified Sales Lynn Calcaterra, (313) 446-6086 Audience Development Director Eric Cedo to continue to invest in it.” Linkner is still vate equity firm he co-founded in the company on an interim basis Events Manager Kacey Anderson That may be because Gilbert has a limited partner 2007 with Kevin Prokop and Gilbert. while it tried to put the $6 million Creative Services Director Pierrette Dagg objectives beyond just reaping prof- in DVP and told Another departure from DVP in round back together led Hasbrouck Senior Art Director Sylvia Kolaski Marketing Coordinator Ariel Black its. For example, said one venture Crain’s last week: December fueled more speculation. and his co-founder and wife, Lida, Special Projects Coordinator Keenan Covington capitalist, many of the companies “I continue to be Partner Ted Serbinski, a member of to leave the company late last year. Sales Support Suzanne Janik, YahNica Crawford pay rent in Gilbert-owned buildings Josh Linkner: “I excited at the the Crain’s class of 40 under 40 last They are in the process of moving Editorial Assistant Nancy Powers Production Manager Wendy Kobylarz and bodies in seats help Gilbert sell continue to be impact DVP is year, announced in December he to San Francisco, where he has co- Production Supervisor Andrew Spanos Detroit as a place that is open for excited” by DVP. making in the was leaving to join Techstars, the founded a new company, Convoy, business. Detroit entrepre- Boulder, Colo.-based organization which provides consumer electron- CUSTOMER SERVICE neurial scene and remain opti- that provides mentoring and seed ics technical help. Cohen said that Main Number: Call (877) 824-9374 A couple of departures or [email protected] mistic that the fund will deliver a money for tech companies. DVP still has hopes for Ginkgotree Subscriptions $59 one year, $98 two years. Out of state, $79 one year, $138 for two years. Outside When Linkner left DVP in No- positive outcome.” Serbinski is heading up Techstars and has started two pilot programs U.S.A., add $48 per year to out-of-state rate for surface mail. Call (313) 446-0450 or (877) 824-9374. vember, he told Crain’s he wanted to At the time of Linkner’s departure, Mobility, an accelerator program with new customers. Single Copies (877) 824-9374 pursue his own entrepreneurial in- Hermelin said he would replace that will be based in downtown De- Cohen said the perception that Reprints (212) 210-0750; or Alicia Samuel at [email protected] terests, primarily his book writing Linkner as interim CEO and manag- troit and hopes to launch 30 trans- DVP has slowed down its pace of in- To find a date a story was published (313) 446- and speeches. Subsequently he ing partner. Now, though, he says portation-related startups. vesting is mistaken. 0406 or e-mail [email protected] launched Fuel Leadership, a one- DVP is not actively seeking a replace- The timing of Serbinki’s move, He said the company invested Crain’s Detroit Business is published by day leadership conference that had ment CEO and for now he is content coming on the heels of Linkner’s de- $12 million last year, the most in its Crain Communications Inc. Chairman Keith E. Crain its debut in Detroit in April and to spend more time at DVP as its parture, was coincidental, say Her- three full years of investing. Howev- President Rance Crain which Linkner, who co-founded managing partner. melin and Cohen. er, most of that went to Detroit- Treasurer Mary Kay Crain based LevelEleven, iRule LLC and Executive Vice President/Operations Batting .300 is the goal William A. Morrow Dayton, Ohio-based Marxent Labs. Executive Vice President/Director of Strategic INDEX TO COMPANIES DVP, however, has been paring DVP invested in just one new Operations Chris Crain These companies have significant mention in this week’s Crain’s Detroit Business: Executive Vice President/Director of Corporate down its portfolio companies. company last year, Detroit-based Operations KC Crain Vice President/Production & Manufacturing Anton, Sowerby & Associates ...... 1 Metropolis Cycles ...... 17 Cohen said DVP currently has 15 Spirit Shop, an online provider of of- Dave Kamis Blossom Heath Inn ...... 14 Michigan Department of Corrections ...... 3 active companies, having shut ficially licensed merchandise. And Chief Financial Officer Thomas Stevens 11 19 Blue Economy Initiative ...... Michigan Department of Transportation .. down three firms and sold off three so far it has made one investment Chief Information Office Anthony DiPonio Continental Services ...... 14 Moceri Cos...... 5 G.D. Crain Jr. Founder (1885-1973) Detroit Bikes ...... 17 Motorless City ...... 17 others that were struggling. Those this year: market analytics firm Mrs. G.D. Crain Jr. Chairman (1911-1996) Detroit Venture Partners ...... 1 Nanovere Technologies...... 3 six accounted for 29 percent of Reach Influence. Editorial & Business Offices Downtown Detroit Bike Shop ...... 17 Omega Talent...... 12 1155 Gratiot Ave., Detroit MI 48207-2732; EBuy Media...... 6 Original Equipment Suppliers Association .. 18 DVP’s portfolio at its peak. Still, that may be the smarter (313) 446-6000 Fifth Third Bank ...... 12 Presbyterian Villages of Michigan ...... 10 “The nature of seed-stage invest- pace, say local VCs, and Hermelin Cable address: TWX 248-221-5122 AUTNEW DET First State Bank ...... 12 St. John Macomb-Oakland Hospital ...... 12 CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is Fleis and VandenBrink...... 19 Sakthi Automotive Group USA ...... 3 ing is if you bat .300, you’re in the doesn’t bristle at the feedback. published weekly, except for a special issue the General Motors ...... 5 Tanner Friedman ...... 6 Hall of Fame, like baseball,” said “DVP was a startup, and with any third week of October, and no issue the fourth week of December by Crain Communications Inc. Hiller’s Markets ...... 3 Taubman Foundation ...... 7 Cohen. startup you can say, what would at 1155 Gratiot Ave., Detroit MI 48207-2732. Peri- Homestead Home Health Care ...... 10 UHY Advisors ...... 12 odicals postage paid at Detroit, MI and additional Honey Baked Ham ...... 18 U.S.Army Tacom Life Cycle Manage. Comm. ..12 That is in line with national ex- you have done differently?” asked mailing offices. POSTMASTER: Send address Kosch Hospitality ...... 14 University of Michigan ...... 7, 10 pectations. According to a 2012 Hermelin. “There are things we changes to CRAIN’S DETROIT BUSINESS, Circula- Kroger Co. of Michigan ...... 3 Victor International ...... 4 study by Shikhar Ghosh, a senior would do differently. ... But we tion Department, P.O. Box 07925, Detroit, MI Lawrence Technological University ...... 7 Warner Norcross & Judd ...... 12 48207-9732. GST # 136760444. Printed in U.S.A. Macomb Community College ...... 11 Wheelhouse Detroit ...... 17 lecturer at Harvard Business School, wanted to establish companies on Entire contents copyright 2015 by Crain Commu- nications Inc. All rights reserved. Reproduction or Macomb County Department of Roads .... 19 more than 30 percent of firms re- the ground quickly. We wanted to use of editorial content in any manner without ceiving VC funding between 2004 get some momentum.” Ⅲ permission is strictly prohibited. 20150504-NEWS--0022-NAT-CCI-CD_-- 5/1/2015 6:26 PM Page 1

22 CRAIN’S DETROIT BUSINESS // May 4, 2015 WEEKON THE WEB/APRIL 25-MAY 1 RUMBLINGS MSX to move North American Detroit Digits Root Restaurant duo to open A numbers-focused look at the operations base to Southfield week’s headlines: farm-to-table spot in Hazel Park $5 million SX International Inc. grand opening of its North Ameri- elebrity chef James Riga- en alleges violations of the federal plans to relocate its can headquarters in Birmingham. The amount of cash Detroit to and business partner Administrative Procedures Act and North American The new office had a quiet open- International Bridge Co. owner Ed Mamou have targeted claims that the government wanted M operations center ing in December. Manuel “Matty” Moroun will give C Hazel Park for their next Quicken to pay an exorbitant settle- and 325 employees from Warren Ⅲ Livonia-based Trinity Health the city of Detroit to rehab restaurant venture. ment and “publicly admit to to Travelers Towers in Southfield struck a definitive agreement to Riverside Park in exchange for the The pair, partners in the success- wrongdoing that the company did during the third quarter. The new, acquire 451-bed St. Joseph’s Hos- 3 acres it needs for a second ful The Root Restaurant & Bar in not commit,” to avoid litigation. 36,000-square-foot location will pital Health Center in Syracuse, Ambassador Bridge span. White Lake Township, will open 40- provide 30 percent more space, N.Y., Modern Healthcare reported. 150,000 seat Mabel Gray later this summer ‘SNL’alum rounds out the company said. The move fol- Ⅲ On Monday, the second at John R and Woodward Heights in cabaret’s season lows MSX’s relocation of its global group of what J.P. Morgan Chase & The number of helmets Xenith the storefront at 23825 John R that headquarters with about 15 of its Co. calls its Detroit Service Corps LLC, co-owned by Dan Gilbert, most recently was Liza’s Place and “Saturday Night Live” alum and executives to Ally Detroit Center, starts work with four metro De- could produce through 2016 at its Ham Heaven. Broadway star Ana Gasteyer will formerly One Detroit Center, in troit nonprofits: the Detroit Land new manufacturing space on West The fare will be a truncated ver- headline the grand finale to Cabaret downtown Detroit from Warren Bank Authority, Youth Develop- Fort Street. The Massachusetts- sion of the Root’s traditional Ameri- 313’s second season this weekend. in 2013. ment Commission, Eastside Com- based company announced it can offerings (along with Korean, Gasteyer’s “Elegant Songs From a munity Network and Accounting would move production of its Chaldean and Italian touches) that Handsome Woman,” on stage at the concussion-fighting football ON THE MOVE Aid Society of Detroit. Three are Michigan-sourced, but with a Boll Family YMCA’s Marlene Boll The- Chase professionals from around helmets to Detroit last week. farm-to-table menu that rotates atre, will be the latest installment in Ⅲ The Grosse Pointe War Memor- the world will be embedded at $27.8 million much more often, Rigato told what began as a passion project for ial Association named University of each nonprofit for three weeks. Crain’s. It will have a full bar. producers Sandi Reitelman and Michigan fundraiser Ann Rock, 60, The potential price the Fisher Rigato, 30, Allan Nachman, who had the idea Building and the Albert Kahn its first vice president of institu- OTHER NEWS who appeared two years ago to bring award-win- tional advancement. Rock, who Building in Detroit’s New Center on Bravo’s “Top ning cabaret performers to intimate will be the organization’s chief Ⅲ Michigan Gov. Rick Snyder said could each fetch at a June auction. Chef” last sea- venues throughout Detroit. fundraising officer, had been di- he wants to break the troubled De- The buildings fell into default last son, and Mamou “We wanted to help the city in its rector of development for the UM troit Public Schools into two entities year on a $27 million mortgage. will spend up to rebuilding effort in some small way William L. Clements Library. and will ask the Legislature to con- $430,000 $300,000 for the by adding a genre of music that Ⅲ Crain’s Detroit Business and tribute more state funding to relocation, which hasn’t been part of the cultural Bridge Magazine hired Lansing solve nearly a half-billion dollars in The amount of the Michigan includes the scene,” said Nachman, Cabaret 313 State Journal business reporter operating debt, AP reported. On Strategic Fund grant to support Rigato price of the managing producer, who is counsel Lindsay VanHulle, 29, as Lansing the day of Snyder’s announcement the renovation of a vacant building in building and a at Butzel Long and a real estate de- correspondent in a joint venture April 30, classes were canceled at Detroit’s Paradise Valley that will build-out of the narrow building’s veloper. for the publications. Bridge is a 18 Detroit schools after teachers become the new home of the coney island-style interior. It will be Nachman and Reitelman, the past thrice-weekly online news-and- failed to show up. Michigan Chronicle newspaper. kept intentionally imperfect, he director of corporate gifts for the De- analysis publication of the Ann Ⅲ The Nuclear Regulatory Com- 17 said. troit Symphony Orchestra, scout the Arbor-based nonpartisan non- mission approved DTE Energy Co.’s Roman Bonislawski of Birmingham- city for intimate performance profit Center for Michigan. Van- proposal for a new nuclear power The day in May known as Flower based architects Ron & Roman Con- spaces. Like the upcoming night Hulle begins her post May 4. plant in Southeast Michigan, al- Day at Detroit’s Eastern Market, cept & Design is creating the interior. with Gasteyer, Cabaret 313 usually though the Detroit-based utility which is dedicated to selling The Mabel Gray name comes presents two shows in one evening; flowers ahead of locals’ spring COMPANY NEWS said it has no immediate plan to from a folklore legend about a Lake artists typically do a meet-and-greet build a third unit at the Fermi beatification projects. The market Michigan ghost, and a seafaring and CD signing after each show. Ⅲ The Detroit Lions sought to bol- plant in Monroe County, AP re- is also celebrating an $8.5 million folk song. Shows are at 7 and 10 p.m. Fri- ster their offensive line in the first ported. Opponents say regulators expansion of Shed 5. day. Ticket prices range from $25 to round of the 2015 National Football haven’t done enough to assess en- Quicken legal team gets busy $125. For details, call(313) 405-5061 League draft by making a trade with vironmental impacts. dence life and diversify interna- or visit cabaret313.org. the Denver Broncos that netted two Ⅲ Nearly 20 downtown tional opportunities for students. Managing partner Jeffrey Mor- guards. For the 23rd overall pick, Rochester boutiques and salons Ⅲ Former Detroit Tigers outfield- ganroth of Birmingham law firm Busted glasses mean new biz Denver sent 2007 Lions draftee are sending a clear message to er Kirk Gibson, who joined the Morganroth & Morganroth PLLC and Manny Ramirez back to Detroit, shoppers: Feel free to bring your team’s local TV broadcast booth as Thomas Hefferon of Boston-based Every inventor has an “aha mo- along with the 28th pick, a fifth- dog with you. The Rochester an analyst this season, has been Goodwin Procter LLP will represent ment” story to tell. For Birmingham round pick this year and a 2016 Downtown Development Authority diagnosed with Parkinson’s dis- Quicken Loans Inc. in dueling law- entrepreneur Nancy Oram, that fifth-round selection. The Lions has designated ease. The Tigers and Fox Sports De- suits with the U.S. Department of story begins three years ago in a then took Duke University’s Laken the dog-friend- troit announced Gibson’s condi- Justice over loans insured by the Palace of Auburn Hills bathroom. Tomlinson with the 28th pick. ly businesses tion; the broadcaster said Gibson Federal Housing Administration. She was taking a break at a Detroit Ⅲ Aston Martin Lagonda Ltd. with a window will return to the air when he can. Morganroth, perhaps best known Pistons game when her favorite named Detroit-based Ally Financial cling featuring Ⅲ Nancy Schlichting, CEO of in recent years as an attorney for pair of sunglasses slipped off her Inc. as its preferred U.S. auto lender an icon of a dog Henry Ford Health System in De- former Detroit mayoral Chief of head and crashed to the floor. to help the United Kingdom-based (left). troit, and Patricia Maryland, for- Staff Christine Beatty and for the late After the game, Oram, who maker of luxury sports cars expand Ⅲ As George Hynd was officially mer CEO of St. John Providence assisted suicide advocate Jack works in purchasing at Ford Motor sales, Bloomberg reported. inaugurated as president of Oak- Health System and now COO of Kevorkian, brought Quicken’s April Co., began re- Ⅲ Leader Dogs for the Blind land University, he reiterated his Ascension Health in St. Louis, are 17 lawsuit in Detroit against Justice searching grip- launched the public phase of its commitment to liberal arts educa- included in the Top 25 Women in and the U.S. Department of Housing ping materials. $14.5 million campaign to reno- tion. Hynd also expressed the need Healthcare by Modern Healthcare, and Urban Development. That’s how she vate its canine kennel and care for OU to invest resources into a sibling publication of Crain’s De- He and Hefferon, of Goodwin’s came up with center in Rochester Hills. The cam- community outreach, expand resi- troit Business. Washington office, are plaintiff’s StaysOnEyewear paign is the largest Leader Dogs counsel in that case as well as de- — sunglasses has undertaken since its 1939 fense counsel in the April 23 civil and reading founding. The quiet phase of the suit that Justice brought against glasses that dou- campaign, during which the non- Quicken at a federal court in Wash- Oram ble as head- profit sought larger-dollar gifts ington, D.C. Both cases stem from a bands. from major supporters, has raised three-year investigation of FHA-in- Oram, 48, has invested $90,000 in $12.3 million since November sured loans originated by Quicken Nancy Oram Design LLC, through 2013. Leader Dogs expects to finish starting in 2007. which she secured a licensing agree- work on the canine center in 2016. The government alleges Quicken ment with a company based in New Ⅲ Budapest-based automotive [COURTESY OF FUSCO, SHAFFER & PAPPAS INC.] initiated hundreds of such loans York which manufactures the line of navigation software supplier NNG Leader Dogs for the Blind began work to upgrade its kennel in Rochester Hills between 2007 and 2011 that were glasses and headbands that sell for LLC last week celebrated the last August and expects to complete work on its canine center in 2016. not eligible for the program. Quick- $19.99. See Staysoneyewear.com. DBpageAD_DBpageAD.qxd 5/1/2015 10:36 AM Page 1

REACH CRAIN’S MOST INFLUENTIAL AUDIENCE OF THE YEAR!

Crain’s Annual Mackinac Edition | ISSUE DATE: June 1 | EARLY CLOSE: May 14

The Detroit Regional Chamber Reach the area’s most influential business, civic and government Mackinac Policy Conference, May 26–29. leaders, plus thousands of Crain’s Detroit Business readers who can’t attend the Detroit Regional Chamber Mackinac Policy Conference. Bonus distribution on Thursday at the Governor’s This special edition includes two other powerful features: speech Crain’s tenth class of

Page M51 CRAIN’S DETROIT BUSINESS 20 in their 20s — spotlighting June 2, 2014 2014 Mackinac Policy Conference the distinct accomplishments of the area’s newest generation of business Growing large by thinking small visionaries still in their twenties. t be fueled by big business alone If entrepreneurship is to revive Detroit, it can’ TECHTOWN BY THE NUMBERS BY AMY HAIMERL 2013 INESS 2007 and CRAIN’S DETROIT BUS Between Ⅲ Served 866 companies, which believe in entrepreneurs. created 1,155 jobs and raised if in That is what I would say more than $103 million investment I were on the old NPR show follow-on I I Believe,” where “This Building numbers a contributors talked about Ⅲ Physical tenants: 26 that spoke to range of topics (82% occupancy) to the and their souls, from ghosts Ⅲ Mailbox tenants (mailbox and of diversity. My food access to conference rooms power 24 Jason Sheehan support services): critic friend desk space recorded Ⅲ Co-workers (share off the lobby): 17 one of the tech show’s The venture capital-fueled most popu- startups toiling away in Dan lar mis- Gilbert’s incubator and accelera- laud- I be- tor are doing important and sives: lead able work that will hopefully lieve in bring- to huge successes. They are barbecue. showing sexy back to Detroit by al- Mo- I’ve ing the world a very different seen what I would tor City than the one they’ve ways wondered But now: I be- in the ruin-porn compilations. say if asked. I know of while they are a critical piece in entrepreneurs. fuel lieve our future, they alone cannot be- the Motor City. I believe in their hustle. I the resurgence of in entrepreneurial lieve in their drive. I believe It will take an to accept de- INC. a culture of entrepre- their unwillingness COURTESY OF TECHSHOP spirit, and ability to than a myopic fo- feat. I believe in their region. neurship, rather over des opportunities needed in the to grow the themselves up and start elding and other skilled tra cus on one industry, pick Allen Park provides w in Michi- I believe in their willing- TechShop in in the economy and create jobs again. and checked shirts sitting opportunity where oth- result of that success Anything else is an old-school ness to see to support profits. The Building,” said Robin gan. jobs that allow people — is that small has Madison economic development. ers only see challenges. — of being big chairman of the urban model of nd women small business owners. However, be- Boyle, money in one I believe in the men a these not been celebrated. studies department “To put all our de- Detroit Regional Chamber be- planning and what- mercializing new medical The small leads to more disruptive . “That’s thing, that is the classic com too. So much so ing at Wayne State University Boyle. ations and the ones start- lieves in them, Being small leads to the en- said vice innov a innovations. presented in the media as we’ve-done-in-the-past,” shops. I believe that it made entrepreneurship small leads to big money at big busi- ing new auto-body Poli- being nimble. Being spirit, and that’s “We throw urs who are tenet of this year’s Mackinac leads to trepreneurial come there. That in the food entreprene creativity. Being small to many people.” ness that will d veg- alienating a more so- rning jams and sausage an cy Conference. possibilities.” world is gone. We need tu e trying to do here is new ies into thriving busi- “What we’r small and entrepreneurial and denser approach.” an delicac culture Being phisticated the immigrants really have a different to remake this idea of entrepreneur- nesses. I believe in ndy also has the ability Starting small When the ith their dset in Michigan,” said Sa But development who move to our shores w min state, and revive our cities. rship is about so ship as an economic O of the chamber. “We as Entrepreneu to eneurial spirit and drive. Baruah, CE we define “entrepreneur” sm and cod- was formally introduced entrepr an entrepre- only if much more than optimi tool companies need to make being sets his or her own six years ago, it seemed I believe in high-tech d path someone who lls. It’s about growing and the region never ur a much more celebrate narrow vi- ing ski many thinkers. developing products we ne destiny, rather than the ess, supporting like a crazy idea to in uals. This has been a has starting a busin the we needed. I believe for individ small tech startups that building those who did embrace even knew successful for sion of your family, adding jobs, Even businesses that feed state that has been zeitgeist. r neighborhood captured the . It’s about controlling you Page our cul- being big. tends to be wealth See Next our communities and Big “Entrepreneurship fast- companies. Big unions. with beards future. tures. And I believe in the “Big presented as four kids create and even big non- growing companies that government, Colleges and : or talk about real engagement MARY KRAMER Time f tributing to making lives better in estment was somewhat surprising since etroit needs most is inv in the communities in which some of h believed $100 mil- D Chase has been a quiet presence operate.” Universities: wit h, the city’s institutions ISLAND and jobs. Without bot in the stature these MACKINAC lion was hardly enough. Detroit, clearly not offers a reasoned ar- round chances are dim. Thompson — Leave it to Detroit to ll, the bank set- turna of its ancestor, NBD Bank. e engagement, After a week of is gument for genuin the downside in a feds late I was out of town the the very least, Thompson ompanies find tled with the but the At beyond cash. But for c million gift. a record $13 Chase’s announcement, ommuni- $100 last year for hopeful that Chase’s $100 million who listen to some of the c was my first re- its role in media coverage I saw was hugely spur others “whose finger- igure out That billion over Michigan could ty chatter, it is tough to f uality positive. One exception: eing action to hearing nega- selling poor-q prints are absent or barely present what to do without b Business Education editor Bankole Thomp- cape, just acked secu- Chronicle etroit’s economic lands erloper or tive comments about mortgage-b on D called a carpetbagger, int the $100 million commit- he core of the son, who framed the Chase gesture rities at t of “public good” vs. to now act in goodwill, and out of a worse. to Detroit revital- ess that in the context need to make a difference.” We ment mortgage m crucial Detroit needs investment. ecimate De- “public relations.” on the ization that J.P. Morgan helped to d is Michigan’s As he concluded in the column: can’t afford to leave money borhoods. The Chronicle responsibility This is Chase Chairman Jamie troit’s neigh “Corporate social table — or vilify investors. Dimon announced in But what do you do? leading media voice in the should go beyond just sponsoring a African-American community. definitely a conversation that Detroit on May 21. Leave the Chase money banquet or a dinner. It is more than Who will convene fer- raised Chase’s role — needs to happen. At the policy con Or take the money Thompson writing a $5,000 check to have your Crain’s Democrat on the table? role of companies it ac- it? Maybe Thompson and ence here, a prominent e more of it to or the ge and hope to leverag mortgage crisis. name mentioned at an event. … It can help start it. that given the mortga round? quired — in the taking part and con- told me ance Detroit’s turna should mean matic effect on De- fin The $100 million announcement meltdown’s trau hink it’s the latter. What as speaking Clearly, I t LISTS: Michigan Graduate Degree Programs; Private 200 troit, many people he w 3OXV

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