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www.crainsdetroit.com Vol. 30, No. 49 DECEMBER 8 – 14, 2014 $2 a copy; $59 a year

©Entire contents copyright 2014 by Crain Communications Inc. All rights reserved Page 3 New Auto Alley Change to bar exam tests Cooley Law’s passing rate Kroger’s $100M upgrade accelerator aims to boost Kroger planned to reopen its Birmingham store last Friday after a four-month closure, manufacturing during which the Huntington looks to clean grocery chain spent $5.6 million to BY AMY HAIMERL up in the dry-cleaning biz remodel it. CRAIN’S DETROIT BUSINESS To drive growth, 2 auto Automation Alley is launching a new accelerator targeting South- dealers become partners east Michigan’s advanced manu- facturing firms. The 7Cs Program, as it is being Second Stage called, will as- sist firms that Lessons learned by firms are beyond the featured in Crain’s, Page 11 idea stage and JOHN SOBCZAK can get to com- mercialization CRAIN’S Grocery chain remakes stores, adds gas stations within the next 12 to 24 months. MICHIGAN BUSINESS But what is most and products to boost stake in Michigan market exciting about Education, the program is BY SHERRI WELCH Its Howell store will have a new fuel center by that it promises Kelly vocation are CRAIN’S DETROIT BUSINESS Dec. 17, and another is set to open near its Roseville to connect participating firms with store at Gratiot and Frazho Road in January, weath- their first customer. Already Au- high school he Kroger Co. is investing hundreds of millions er permitting. of dollars in its Michigan stores in a bid to tomation Alley has the chief inno- All told, Kroger will have in- vation officers of more than two classmates, Tmaintain and grow its top share of the local vested more than $100 million in grocery market, dozen tier-one suppliers in Michi- Page 17 its Michigan operations by year’s gan signed on to review the partici- Investments are taking the shape of store expan- end, said Jayne Homco, president sions at sites in Rochester Hills and Canton Town- pants when they are ready. of its Novi-based division, The “Getting that first customer was ship and renovations this year at 10 area stores, in- Kroger Co. of Michigan. cluding one in Birmingham set to reopen Friday critical to the program because my And it plans to invest at least philosophy is that you don’t build after a four-month closure and remodel totaling $5.6 that much in the state each of the million.Cincinnati-based Kroger (NYSE: KR) is also a company to raise venture capital next two years. funding,” said Tom Kelly, who looking to establish as many fuel centers as it can, “The Michigan market is very, adding to the 62 it operates near its 124 stores in De- troit, Ann Arbor, Flint and Lansing. Homco See Kroger, Page 29 See Accelerator, Page 27

Suppliers such as Continental Structural Plastics Far afield in hunt for talent have gravitated to small towns. But now they need more highly skilled workers, Skills gap imperils small-town manufacturing who generally MAKING THE VC SCENE don’t settle in Bundled with this week’s issue BY DUSTIN WALSH As labor needs transition from LLC. “As we come up with new small towns. is The Michigan Deal, our CRAIN’S DETROIT BUSINESS low-cost, low-skilled workers to an means of manufacturing, more au- periodic special report on the educated, highly skilled labor tomation, more sophistication, the state’s venture capital scene Sarepta is quintessential small- force, auto companies are strug- job requires a person that’s become and an in-depth look at M&As, town America. gling to persuade this new type of more technical than these standard It’s a one-stoplight town in tech transfer and investment- employee to live and work in hardworking individuals.” worthy companies. northwest Louisiana with a popu- towns devoid of big-city amenities. CSP, a supplier of composite Among the highlights: Tom lation of 877, complete with a sin- door panels, trunks and other “These U.S. plants were estab- Henderson’s report on the gle post office and a drive-in burg- equipment to automakers, em- lished to be close to our customers evolution of university tech er joint. ploys 175 at its plant in Sarepta — transfer programs, a directory of and to utilize the work ethic of But it’s Sarepta, and small about 20 percent of the town. spinoffs of note and a report on small farm towns, hard-working towns across the South just like it, That plant is critical to CSP’s major VC-driven deals of 2014. and reliable people,” said Frank that are creating a labor night- supply of products to automakers Read the print supplement or mare for Southeast Michigan’s au- Macher, CEO of Auburn Hills- visit crainsdetroit.com/MIdeal tomotive suppliers. based Continental Structural Plastics See Skills, Page 28 BILLY HATHORN/WIKIPEDIA NEWSPAPER 20141208-NEWS--0002-NAT-CCI-CD_-- 12/5/2014 1:39 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS December 8, 2014

MICHIGAN BRIEFS Treetops Resort files Chapter 11; voters turned it down. main creditors are the owners Domino’s delivers to Kenya; Swahili Chicken, anyone? MICH-CELLANEOUS The eight owners of Treetops Re- Ⅲ The Federal Energy Regulatory sort in Gaylord — who also happen Depending on your view of KFC, the birth scream company considers Kenya “the gateway to East Commission delayed for at least to be the primary creditors — vot- of a modern society or a sign of the apocalypse oc- Africa. There is a growing middle class, growing three months a $97 million annual ed to place the resort in Chapter 11 curred in 2011 when Yum Brands Inc. put the first spending power among consumers and a strong re- increase in electricity rates to op- bankruptcy protection, the Tra- U.S.-based fast-food chain in the Kenyan capital of ceptivity to international brands.” erate the coal-fired Presque Isle verse City Record-Eagle reported. Nairobi. Which makes some sense, unless you’re a Domino’s will be adaptable to challenges, includ- Power Plant in Marquette, The As- No bank is involved, General Man- dietitian. The International Monetary Fund forecasts ing the threat of terrorism, which isn’t unique to sociated Press reported. The com- ager Barry Owens said. The resort Kenya’s economy to expand 5.8 percent in the fiscal Kenya, Allison noted. Crime “happens all over the mission wants more information. will continue to operate. year through June from 5 percent last year. world, and it even happens in the U.S.” “The filing is necessary to pre- Ⅲ The Michigan Department of The latest entrant in the Kenyan Fast Food fray is Domino’s operates in 75 countries, with more than serve the value of our business and Transportation was expected last Michigan’s own Domino’s Pizza International, which half its retail sales generated by international stores. to ensure continued operations,” week to complete a $70 million pro- plans to grow its presence in East Africa after open- The company has adapted its menu for Kenyan Owens said. At stake is about $23 ject that included an overhaul of ing its first shop in Kenya last month, Bloomberg re- tastes, with offerings such as the Swahili Chicken million in long-term debt to the the Zilwaukee Bridge on I-75. ports. Pizza. And considering the country’s reputation for owners, Owens said. After the reor- Ⅲ Travel writers from a Cincin- Richard Allison, president of the international producing long-distance runners, if any population ganization, the owners will remain nati-based organization called Im- unit of Ann Arbor-based Domino’s Pizza Inc., said the can afford to eat pizza, it’s Kenya’s. involved. Management and staff pulcity have determined that Hol- are expected to remain unchanged. land should rank No. 2 on its list of lowing users to access information Grand Rapids, the Grand Rapids have to close, The Holland Sentinel the “19 Most Beautiful Small on public transportation and the Business Journal reported. The reported. Staff and hours already Towns in America,” MLive.com re- Grand Valley students offer GR schedules of city sports teams, building is across the street from have been cut, and the operating ported. No. 1 is Beaufort, S.C., tips on keeping them in town among other things. the DeVos Place convention center budget has been sliced 30 percent. which probably won the warm- The students urged city commis- and just west of Calder Plaza. CWD The Holland Historical Trust, weather tiebreaker. A group of Grand Valley State Uni- sioners to create a “Millennials’ would not disclose the purchase which operates the museum, Find business news from versity students gave the Grand Advisory Board” that would pro- price of the building, which it plans asked voters in the city of Holland around the state at crainsdetroit Rapids City Commission a report full vide feedback on policy and act as to renovate within the next year. and Park and Holland townships .com/crainsmichiganbusiness. of recommendations on making a bridge between the city and orga- CWD’s real estate holdings en- to approve a 0.2-mill tax. All three Sign up for the Crain’s Michi- the city a place where college stu- nizations such as Grand Rapids compass 2.7 million square feet, communities had to OK the mea- gan Morning e-newsletter at dents are more likely to stay after Young Professionals. half of it urban office space in crainsdetroit.com/emailsignup. graduation, MLive.com reported. sure Nov. 4, but Holland Township Grand Rapids. The recommendations include strengthening the “brand” identi- GR real estate firm buys building ties of city neighborhoods, promot- After cuts and failed millage, CORRECTION ing diversity, offering more downtown near convention hall Ⅲ A Page 1 story in the Dec. 1 issue should have quoted Staffing Industry “midrange” rental options and Grand Rapids-based CWD Real Es- Holland Museum says it may close Analysts as saying that MSX International Inc. could be among the largest adding chain stores and restau- tate Investment purchased the 10- The Holland Museum says that if it independent managed service providers, overseeing contract staffing rants. Students also said the city story Calder Plaza Building, one of the can’t find a long-term funding fix in contracts for clients, instead of that it is conclusively among them. should create a smartphone app al- largest buildings in downtown the next three to six months, it will

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CLOSE DATE: Dec. 10, 2014 | MATERIALS DATE: Dec. 17, 2014 | ISSUE DATE: Jan. 19, 2015 *Based on distribution and potential readership 20141208-NEWS--0003-NAT-CCI-CD_-- 12/5/2014 4:24 PM Page 1

December 8, 2014 CRAIN’S DETROIT BUSINESS Page 3 Bar exam pass rates test Cooley Inside

part. The weighting was changed — while other schools have seen 8 School lags rivals in adjusting again for the July 2014 test. to 15 percentage-point gains, ac- But while most other schools ap- cording to data from the state pear to be recovering from the Board of Law Examiners. The im- to a new scoring standard change, Cooley hasn’t made the provement at other schools could same progress. be significant for Cooley because BY CHAD HALCOM cials are trying to figure out. one of the accreditation criteria of In July, only 55 percent of the CRAIN’S DETROIT BUSINESS Like most law schools statewide, the American Bar Association calls 199 Cooley grads taking the bar Cooley saw a major performance for the school to keep its bar pas- exam for the first time passed. Why are graduates of the Western downturn in July 2012 when the sage rate within 15 percentage Michigan University Thomas M. Cooley When graduates taking the exam state started giving greater weight points of exam-takers as a whole Law School more often failing the for the second, third or subsequent to the essay portion of the exam. for the states where most of its Fans, sponsors think Detroit bar examination than students at time are included, that percentage Previously, a good score on the graduates apply. any other Michigan law school? multiple-choice portion could help drops to 44 percent — the third soccer’s pitch perfect, Page 6 That’s a question Cooley offi- offset poorer results in the essay summer in a row that’s happened See Cooley, Page 27 Company index These companies have significant mention in this week’s Crain’s Detroit Business: All Star Lawn Specialists Plus ...... 25 American Laser Skincare ...... 22 American Spoon Foods ...... 19 Martinizing Arctaris Michigan Partners ...... 25 Automation Alley ...... 1 Auto-Owners Insurance ...... 25 Belfor Holdings ...... 20 Bissell ...... 20 Blue Care Network ...... 10 Blue Cross Blue Shield of Michigan ...... 10 joins the fold Cambridge Consulting Group ...... 16 Certified Restoration Drycleaning Network ...... 3 ChemicoMays ...... 12 Cherry Republic ...... 19 companies one of the largest in the Consumers Energy ...... 26 Acquisition makes business. Continental Structural Plastics ...... 1 Then, last month’s purchase of Cooper-Standard Automotive ...... 20 Detroit City Football Club ...... 6 Martinizing Dry Cleaning gave Wudy- Domino’s Pizza ...... 20 Huntington largest ka and Snyder all of Martinizing’s Doner Partners ...... 5 422 national and international out- DTE Energy ...... 26 lets, more than any other U.S.-based Essential Bodywear ...... 14 Fast Hands Hockey ...... 11 dry-cleaning firm dry-cleaning business, according to Federal-Mogul ...... 20 rankings from Entrepreneur maga- Freudenberg-NOK Seating Solutions ...... 28 BY GARY ANGLEBRANDT zine. General Motors ...... 5, 20 SPECIAL TO CRAIN’S DETROIT BUSINESS That’s on top of the 154 franchise Grand Rapids Public Schools ...... 17 Grand Traverse Pie ...... 19 outlets under Certified Restoration The purchase last month of the Greater Macomb PHO ...... 10 Drycleaning Network LLC, another one Grit Design ...... 13 Martinizing national dry-cleaning of Wudyka and Snyder’s compa- Huntington ...... 3 chain has more than doubled the IAC Group ...... 20 nies. size of a local dry-cleaning fran- ImageSoft ...... 21 Wudyka and Snyder set up Mar- chisor, making it the country’s IMX Cosmetics ...... 27 tinizing International LLC to pur- Innovation Central High School ...... 17 largest. chase the assets of the Martinizing Kelly Services ...... 20 Berkley-based The Huntington Co. KPMG ...... 28 business, including all franchise LLC manages a slew of dry-clean- Kroger ...... 1 agreements, trademarks and intel- ing-related entities and brands Lear ...... 7, 20 lectual property, in a cash deal Leelanau Cheese ...... 19 owned by partners Wayne Wudy- KENNY CORBIN from Martin Franchises Inc. Lowe Campbell Ewald ...... 5 Wayne Wudyka, who owns The Huntington Co. LLC along with Jeffrey Snyder, ka and Jeffrey Snyder. A steady McLaren Health Care ...... 22 thinks one company is likely to dominate the dry-cleaning industry — which is march of acquisitions and launch- MedNetOne Health Solutions ...... 10 why he added Martinizing Dry Cleaning to his collection of businesses. es already had made this family of See Huntington, Page 26 Meijer ...... 29 Metaldyne ...... 20 Michigan State University ...... 27 Moguldom Media Group ...... 25 MSX International ...... 20 NSF International ...... 20 Original Murdick’s Fudge ...... 19 P3 North America ...... 27 2 dealers partner to grow while retaining control PCS Insight ...... 27 Penske Automotive Group ...... 7, 20 Phimation ...... 16 Physician Alliance ...... 10 BY JESSE SNYDER called YourOnlineDealer that al- Rockford Construction ...... 18 AUTOMOTIVE NEWS lows online customers to choose, Sellers Auto Group ...... 3 buy, finance and even take delivery Skidmore Studio ...... 5 After toiling to revitalize separate of a vehicle without visiting a deal- Slows Bar BQ ...... 4 single-point auto dealerships in ership. Team Detroit ...... 5 metro Detroit, two childhood TI Automotive ...... 20, 28 The partnership contract wasn’t Triangle Associates ...... 17 friends merged and expanded opera- final until this year, but the two TRW Automotive Holdings ...... 20 tions to compete with larger groups. have been working toward the Wellco ...... 15 Sam Slaughter and Katie Bow- arrangement since 2010, well before West Construction Services ...... 4 Western Michigan University Cooley Law School . . . 3 man Coleman created Sellers Auto the 2013 opening of Sellers Subaru in Group by pooling their resources — Macomb Township. his Sellers Buick-GMC store in Farm- “We wanted to grow and be part of Department index ington Hills and her Bowman Chevro- something bigger, but we both also BANKRUPTCIES ...... 5 let in Clarkston. wanted to remain in control as deal- BUSINESS DIARY ...... 23 “It’s not an acquisition, but a ers,” said Coleman, 50. “We couldn’t partnership,” said Slaughter, 52. have done this if we hadn’t been CALENDAR ...... 24 The distinction is key. Without friends since we were kids.” CLASSIFIED ADS ...... 25 making a big payout to a seller, the They met as children living in a KEITH CRAIN...... 8 two partners have invested their “We wanted to grow and be part of something bigger, but we both also wanted close-knit community in Bloom- LETTERS...... 8 combined assets in growth and to to remain in control as dealers,” said Katie Bowman Coleman, who partnered with Sam Slaughter to form Sellers Auto Group. “We couldn’t have done this if develop proprietary technology MARY KRAMER ...... 17 we hadn’t been friends since we were kids.” See Dealers, Page 28 OPINION ...... 8 PEOPLE ...... 23 Real estate rumblings ... and rubble RUMBLINGS ...... 30 THIS WEEK @ Remember Schweizer's German restaurant? Kirk Pinho has the ... uh ... latest on the site STAGE TWO STRATEGIES ...... 16 WWW.CRAINSDETROIT.COM and other real estate news. WEEK ON THE WEB ...... 30

KIRK PINHO/CDB 20141208-NEWS--0004-NAT-CCI-CD_-- 12/5/2014 1:37 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS December 8, 2014 Slows Bar BQ to open location in Pontiac’s former Strand Theatre

BY KIRK PINHO CRAIN’S DETROIT BUSINESS

Slows Bar BQ has signed a lease to open a restaurant in the former Strand Theatre in downtown Ponti- ac, which is planning to undergo a $21 million renovation and reopen in the fourth quarter next year. Phil Cooley, co-owner of Detroit- based Slows, said he was drawn to Pontiac because he was “blown away” by economic development in the city and the restaurant is “ready for this kind of growth.” “I was in love with Detroit when I moved here, and I feel the same way about Pontiac. There is a lot of sensationalism about Detroit — and about Pontiac.” Cooley said the new Slows will have capacity to seat 100-150. In addition to its original Corktown location, the restaurant has an- other location in Midtown and a Grand Rapids site opening in the JOHN SOBCZAK spring. From left: Kyle Westberg, Bill Lee and Phil Cooley inside the Strand Theatre, Kyle Westberg, president and where Slows Bar BQ plans to be serving customers next year. Give Yourself CEO of Pontiac-based West Con- struction Services, the Strand rede- a Gift! veloper, said about $3.5 million is still needed for renovation along with $1.5 million to fund Encore RETURN TO LEARN Performing Arts Center, a nonprofit that will be the theater’s opera- Begin your master’s tions and business manager. Complete your bachelor’s A campaign to raise the $5 mil- lion is underway. Earn a certificate Westberg and Bill Lee, who was named president and CEO of En- Enhance your career core last month, said they believe Slows’ name recognition and pop- WINTER SEMESTER BEGINS JANUARY 5, 2015 ularity will help attract donors to the project, the latest in a string of renovation proposals dating back to at least 1999 that previously have not come to fruition. “We want it to be truly unique School of Business and have a real hip and entertaining vibe where it’s easily accessible 40 years of Excellence in Business Education with great food and great bands,” Westberg said. “I don’t know of any Livonia, Michigan | madonna.edu/business | 734-432-5361 venue in the U.S. that will have this food experience available.” Lee, former vice president of Celebrity Events Group and vice presi- dent of sales and marketing for Olympia Entertainment Inc., said out- reach to potential donors has be- THE MILLER LAW FIRM gun with the financial, medical, au- Changing the Odds in our Clients’ Favor tomotive and philanthropic communities, but wouldn’t be more specific. The renovation is being funded by $4.1 million in federal historic tax credits, $2.27 million in Michigan Economic Development Corp. funding from the Community Revitalization Program, $3.26 million in developer equity, and $7.67 million in equity from a city of Pontiac renovation that was never completed. Westberg, who has a 98 percent ownership share of the theater building at 12 N. Saginaw St. with his brother Brent Westberg, ex- The Miller Law Firm is Recognized pects to close on the financing in as a Leader in Complex Business Litigation the first quarter. The Strand, which was last open 20 years ago, will reopen with 838 Q Q Commercial and business lawsuits Automotive supplier counseling seats and host concerts, live the- Q Employment litigation Q Shareholder and partnership disputes ater, comedy shows, films, and Referral fees honored on contingency fee cases community and private events. Kirk Pinho: (313) 446-0412, 950 West University Drive, Suite 300 248-841-2200 millerlawpc.com [email protected]. Twitter: Rochester, Michigan 48307 @kirkpinhoCDB 20141208-NEWS--0005-NAT-CCI-CD_-- 12/5/2014 3:49 PM Page 1

December 8, 2014 CRAIN’S DETROIT BUSINESS Page 5 LCE will rebound from loss of Cadillac account, observers say

BY BILL SHEA Other agencies have closed up million in 2013 U.S. revenue, rank- work. The marketing work for the — financially and emotionally. But CRAIN’S DETROIT BUSINESS shop after losing car accounts: Om- ing it 81st among all advertising Navy’s recruiting has long been there are a lot of talented people at nicom in 2010 closed its BBDO De- agencies by that metric, according one of the agency’s largest ac- LCE, and I’m sure they will carry Losing another major General troit office in Troy and cut 450 jobs to data from Advertising Age. counts, and dates back to 2000. on in a positive manner,” said Motors Co. account will hurt, but it when Chrysler brand creative work “Campbell Ewald has some The Navy, which must put its David DeMuth, co-CEO and presi- isn’t the death knell for Detroit- moved after 45 years to Minneapo- amazing talent, people I would advertising contract up for review dent at Southfield-based advertis- based advertising agency Lowe lis-based Fallon Worldwide. love to work with. I’m absolutely every five years, told Crain’s in ing agency Doner Partners LLC. Campbell Ewald, marketing ob- When it lost Chevy, Lowe Camp- shocked that GM decided to move May it will award the work on a Doner lost the Mazda account in servers are saying. bell Ewald downsized from more on,” said Toby Barlow, chief cre- long-term deal before January. 2010, and was able to rebuild itself. Cadillac last week said it will than 1,200 staffers at its former ative office at Team Detroit, which Other major LCE clients include Said Jeff Stoltman, a marketing shift its marketing from New York Warren office building to about 500 does Ford Motor Co.’s advertising. OnStar, Alltel Wireless, Atkins Nutri- professor at Wayne State University: City-based Interpublic Group of Cos. today. While Cadillac is LCE’s major tionals Inc., Consumers Energy, Kaiser “The key for LCE will be their col- — one of the world’s four major ad- The 103-year-old ad agency be- local account, there is another of Permanente, LifeLock Inc., Snuggle, lective resiliency, their resolve vertising holding companies and came known for its Chevrolet TV equal or greater value to the Unilever and USAA. and ability to bring on new clients, parent of Lowe Campbell Ewald — commercials such as “Like a agency. In May, the U.S. Navy gave Rival ad houses understand and most importantly, their ability to Paris-based Publicis Groupe SA, Rock” and “See the USA in Your Lowe Campbell Ewald a contract what Lowe Campbell Ewald is go- to hold onto and motivate the peo- one of the other mega ad conglom- Chevrolet.” extension worth up to $85 million ing through. ple who are the creative engine erates. Lowe Campbell Ewald had $121 for a year of recruiting marketing “Obviously, this a serious blow that drives any agency.” Tim Smith, owner and CEO of De- troit-based advertising and design firm Skidmore Studio, was blunt in his assessment of the situation. “Lowe Campbell Ewald is an iconic and creatively strong shop that will be better off without the drama that GM continues to cre- ate,” he said. “They are better off, in my opinion, without the schizo- phrenic behavior of a bad client.” Skidmore has done LCE client work over the years, and Smith said GM’s recent decision to shift Cadillac’s headquarters to Man- hattan is the real problem, and not having options the agency’s work. “The more appropriate question is how will Cadillac, an iconic De- troit brand, fare in New York City — the taxicab capital of the world — using the world’s largest agency, which is based in Paris, France?” he said. Lowe Campbell Ewald moved its 500 employees to office space in- side Ford Field in January to work on the luxury brand, which basi- cally supplanted the Chevrolet ac- count that GM stripped it of in 2010 after a 91-year relationship. LCE CEO Jim Palmer acknowl- edged displeasure with the Cadil- lac decision in a statement, but has declined to elaborate or comment, for now, on how the loss of the work will affect the agency. Cadillac spent $280 million in measured media in 2013, according to New York City-based data firm Kantar Media. LCE handled the account man- agement work while London-based Lowe and Partners Worldwide han- dled the Cadillac creative, so the revenue was split in an undis- closed way. Cadillac said it is moving the ad work to accelerate global expan- sion, but sales numbers could have played a role: The brand’s U.S. sales have struggled all year, falling 6 percent to 154,600 vehicles through November in a strong overall market that gained 5.5 per- cent. Sales plunged 19 percent in November.

Blue Cross Blue Shield of Michigan and Blue Care Network BANKRUPTCIES have a wide range of comprehensive health plans to help you make the right choice for your business. The following business filed for Chapter 11 bankruptcy protection | | | bcbsm.com/employer in the U.S. Bankruptcy Court in GROUP HEALTH PLANS DENTAL VISION Detroit Nov. 28 to Dec. 4. Under Chapter 11, a company files for re- organization. Mike’s K&G Deli #2 Inc., 15500 E. Warren Ave., Detroit, voluntary Blue Cross Blue Shield of Michigan and Blue Care Network are nonprofit corporations and independent licensees of the Blue Cross and Blue Shield Association. Chapter 11. Assets and liabilities not available. — Dustin Walsh 20141208-NEWS--0006,0007-NAT-CCI-CD_-- 12/5/2014 1:37 PM Page 1

Page 6 CRAIN’S DETROIT BUSINESS December 8, 2014 Detroit City FC grows ticket sales, sponsors for new season

BY BILL SHEA Wright said. Individual game tickets are $10 The Detroit City Football Club CRAIN’S DETROIT BUSINESS “It follows that we have to find a at the gate, the same as 2014. averaged 2,878 fans a game last bigger place to play soccer,” he The team also makes money from season at Cass Tech High School, A year ago, a Cyber Monday sea- said. “There are not a ton of places selling clothing, caps, scarves, including a season-high 3,398. son-ticket buying rush on the De- in the city, and we’re committed to stickers and other goods from its troit City Football Club’s website playing in Detroit. Hamtramck is online store at DetCityFCstore.com. caused a system crash. in Detroit. Maybe someday we’ll Ann Arbor-based customer ap- This year, the popular semipro be in a position to leverage what parel maker Underground Printing soccer club’s owners spent months we do and get a soccer-specific sta- has taken over merchandise fulfill- preparing to handle the expected dium together, but for now we’re ment for the club, something the online demand for 2015 season exploring our options.” owners themselves did by hand tickets and new merchandise. The club’s popularity has al- until recently. The site, DetCityFC.com, han- lowed it to boost revenue with “We would spend hours, every dled the demand without a hitch, small price increases. other day, working out of one of co-owner Alexander Wright said. For example, season tickets for our basements. We’d go over there, In fact, the team began this 2015 are $50, a $5 increase from last order some pizza and beers, and year’s 2015 sale in earnest on Black season. Season tickets were $30 for Friday and sold more of the eight- the inaugural 2011 season. See Next Page JOHN SOBCZAK game season tickets (which are on a plastic credit card-like pass) than it did in the first month of sales a year ago, Wright said. The flurry of tickets and mer- chandise sold is the latest evidence that the National Premier Soccer League team’s popularity continues to grow. “At the rate we’re selling them, I think it’s likely this year we’ll have to cap our season-ticket sales,” Wright said. The team doesn’t make public its season ticket base. “We do this internal math on how many season tickets we can move without worrying about turning people away,” he said. Le Rouge, as the club is nick- named, averaged 2,878 fans per game last season at Cass Tech High School, including a season-high 3,398 on July 11 against the Fort Pitt Regiment. The club would cap season-ticket sales to ensure that fans would be able to buy single-game tickets, Wright said. Some games last sea- son saw more than 2,000 walk-up sales. In addition to being good — the club is 24-5-9 in its first three sea- sons — Detroit City is profitable, Wright said, but the team doesn’t disclose financial specifics. The team’s operating budget will be just a bit more than $200,000, he said, the most the team has spent. Ticket sales account for about 40 percent of the team’s operating budget, the club has said, while corporate sponsorship makes up 15 percent to 20 percent, and mer- chandise sales are the remainder. Expenses are kept relatively low because there are no player con- tracts at DCFC’s level of soccer. Club spending for the first time includes TV spots during WDIV- Channel 4’s telecasts of English Pre- mier League soccer matches on Sun- days, Wright said, alone with digital advertising on the station’s website. The team has 23 corporate spon- sors in 2014, most being bars and restaurants. Ownership expects that number to grow and diversify. Sponsorship deals are a blend of cash contracts and in-kind rela- tionships. “There is a lot of room for us to grow on the sponsorship side of things,” said Wright, who owns Southfield-based Web content pro- duction company Good Problem Pro- ductions LLC, which does a lot of work with Fox Sports Detroit. The club’s popularity also is fu- Equal Housing Employer/Lender TTY 1.800.382.4568 eling a potential relocation. DCFC is considering playing at Key- worth Stadium in Hamtramck in 2016, and is studying the stadium’s suitability and physical status, 20141208-NEWS--0006,0007-NAT-CCI-CD_-- 12/5/2014 3:44 PM Page 2

December 8, 2014 CRAIN’S DETROIT BUSINESS Page 7

From Previous Page full-time employee, and the club Wright said. teams do not jump up or down lev- may add seasonal staff to aid him. Soccer observers laud what els based on winning. Lear, Penske eye fill envelopes all day,” Wright said, “It’s part of the growth process. DCFC has accomplished so far. The team plays a 14-game regu- chuckling. We don’t want to grow too fast, but “I have met with them and I re- lar-season schedule. It finished 8-3- The season runs May-June. we want to give our people the ally like their vision and grass- 3 last season, good for second place Games in 2015 will be live-streamed tools they need on the field and roots-level approach to building in the NPSL Midwest Region’s move to city online, although details are being off,” Wright said. their fan base,” said Andy Apple- Great Lakes West Conference. worked out, Wright said. DCFC also believes it got an in- by, the Rochester sports entrepre- Lansing United won the conference. The 2015 schedule hasn’t been fi- terest bump from soccer fans neur who owns English profes- DCFC won its division two sea- industrial park nalized because the league has thanks to last summer’s World Cup sional soccer club Derby County. sons ago, and lost in the divisional been adding teams as a frantic and because of the exhibition “From my perspective, they ap- finals. Division rival Michigan Stars BY DUSTIN WALSH pace — more than 30 new clubs match in August at Michigan Stadi- pear to be doing a first-rate job.” FC, which plays at Hurley Field in AND KIRK PINHO since last season. um between Manchester United and DCFC’s league, the NPSL, may Berkley, finished 4-9-1 in 2014. CRAIN’S DETROIT BUSINESS “It’s pretty impressive that our Real Madrid that drew a U.S. soccer have 70 teams in 2015. It is a fourth- The New York Red Bull U23 from fans are buying season tickets not attendance record of 109,318. tier amateur league within the Harrison, N.J., won the overall Lear Corp. and Penske Corp. could knowing who were playing or “Every level of soccer in Ameri- Chicago-based United States Soccer NPSL championship in August. become two anchor tenants in a when,” Wright said. ca benefited from the World Cup Federation’s organizational pyramid, NPSL rosters consist of unpaid large automotive industrial park The club is analyzing its busi- last summer,” Wright said. which is topped by Major League Soc- players, mainly high school, colle- development in Detroit. ness functions and processes to The team worked with Detroit- cer and its 19 professional teams. giate and former professional ath- Mayor Mike Duggan is asking find more efficiencies to help gen- based Quicken Loans to host World The federation is the U.S. soccer letes. Because they’re considered the state Legislature to approve eral manager Donovan Powell, Cup viewing parties in Campus system’s governing body for both amateurs, athletes maintain their land in the city as a Next Michigan hired last year to run the business Martius. “We knew this was some- amateur and pro soccer. college eligibility while playing in Development Corp. development, side of the club. He’s DCFC’s only thing that was going to be big,” Unlike European soccer, U.S. the developmental league. Gongwer News Service reported last week. Anonymous sources confirmed to Crain’s on Dec. 4 the develop- ment is the city-led, 189-acre I-94 Industrial Park. As such a development, the site near the junction of I-94 and I-75 would be able to offer economic in- centives to businesses that use mul- tiple modes of transportation. This includes state and local incentives, tax increment financing and prop- erty tax abatements — as long as the business uses at least two of the four designated transportation modes: air, freight, rail or water. Sources said there is interest from Southfield-based Lear and Bloomfield Hills-based Penske. However, it’s unclear whether the What makes groups are close to signing a deal or if that deal is contingent on the Next Michigan designation. Lear declined to comment. your house a home? Penske did not immediately re- turn a phone call for comment. Speaking to the Committee on Economic Development on The joy of the season’s first snowman is celebrated Wednesday, Duggan told state law- makers the deal wasn’t done, but the approval of the NMDC designa- with snowball fights that dissolve into shrieks of tion would be “a key piece of get- ting it closed,” Gongwer reported. delight. Paper snowflakes decorate the fridge, House Bill 4783 is awaiting Sen- ate approval after the committee and hot chocolate is ready to warm cold fingers recommended passage. The development is part of the all the way down to their toes. Detroit Economic Growth Corp.’s plan for the I-94 Industrial Park — which has been more than 15 years in the making. The park is just north of I-94 and Memories make your house a home. bounded by Mount Elliott Street, Miller Street, Huber Street, Win- field Avenue and St. Cyril Street. Dan Labes, senior managing di- rector in the Southfield office of Newmark Grubb Knight Frank, said the site has enormous potential be- cause of its proximity to I-94 and the Coleman A. Young Municipal Airport. Its renaissance zone designation is also a large benefit, he said. “Especially with the economic in- centives, it’s a fantastic site,” said Labes, who worked with Exel Logis- tics in its deal at industrial park. The park is close to I-94, Van Dyke Avenue and Gratiot Avenue, and it has rail access via Consoli- dated Rail Corp. Incentives are also available. Investing in People. Investing in Places. It’s unclear whether the DEGC Visit michigan.gov/MSHDA to learn how we invest would lease or sell the land to a de- veloper or one or both of the an- in people and places all year round. chor tenants. The Michigan Legislature, un- der a 2010 law, has approved six re- gions for NMDC designation: Ar- eas near Detroit Metropolitan Airport, a Lansing district, a Tra- verse City zone, a Flint trade corri- dor, a Grand Rapids region and an Upper Peninsula site. 20141208-NEWS--0008-NAT-CCI-CD_-- 12/5/2014 4:21 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS December 8, 2014 OPINION Time to right-size schools’ landscape harters and school choice were supposed to force pub- lic schools to improve to compete for students. That C hasn’t worked as planned, at least not in Detroit. Mediocre or low-performing schools siphon students away from better-performing schools for reasons like proximity to a student’s home. The city also has an over-supply of classroom seats. In 1990, Detroit Public Schools had 200,000 students at- tending school in one of 275 buildings. Today, about 103,000 students attend classes in one of 230 buildings. Of those, about equal numbers attend DPS or one of 112 charter schools opened by 12 different authorizers, mostly universities. That’s half the number of students as 1990 and just 45 fewer buildings. (Auto executives grasp the concept of “over-capacity” quite quickly.) But there’s an opportunity. The term for Jack Martin, the latest emergency manager for Detroit Public Schools, comes to an end in January. What will Gov. Rick Snyder do? What he could do is recognize that it’s unlikely anyone can financially manage the district in the current environment of too many schools and not enough kids. He could engage Mayor Mike Duggan as a kind of central authorizer for all schools — including DPS — who could also coordinate transportation. And the mayor could convene com- munity input to review data and make decisions on which schools deserve state funding to operate. LETTERS TALK ON THE WEB Last week, Michigan ranked near the bottom of a report by the National Association of Charter School Authorizers for From www.crainsdetroit.com not holding charter school operators accountable for quality. Overhead power lines The governor could take a big step by helping Detroit “right- Re: UM coach Brady Hoke fired size” the school landscape by rewarding the schools — tradi- Unfortunately for UM fans, firing tional public or charter — that are serving children best. another coach isn’t going to do the are the biggest failure trick. Revolving doors never work. There’s something else deep with- Editor: House gas tax plan wrong way Crain’s Detroit Business in the culture of the program that While I completely agree with needs to be changed instead. Short- Keith Crain’s Nov. 24 column, welcomes letters to the Gov. Snyder has championed increased funding for roads editor. All letters will be term fixes never work. “Last one to leave? The lights are John and infrastructure consistently in his first term. already out,” that we are not considered for publication, He was inching closer to the goal line with the Senate ap- building enough new power provided they are signed and Why coaches do well in some plants for the future, his column do not defame individuals or proving a plan to add a wholesale tax on fuel. Then the state schools and not so well at other misses the point of why we lose organizations. Letters may be House passed a competing plan to increase road funding by programs is the real mystery. UM power every time we have a edited for length and clarity. phasing out the sales tax on fuel between 2016 and 2021 and re- does not suffer from a lack of any- storm. Write: Editor, Crain’s Detroit placing it with a fuel tax of the same amount. Public schools We could have a dozen brand- thing. It should be number one if and local governments, who are the primary beneficiaries of Business, 1155 Gratiot Ave., measured by available resources. new nuclear plants in Michigan Detroit, MI 48207-2997. sales taxes, would be the losers. and still lose power every time Whoever the new coach is, he will We prefer the Senate version that would create a new there are high winds because our Email: [email protected] have to rebuild recruiting and wholesale tax on fuel for vehicles. But if the House won’t antique electrical distribution work with what he has. It could take years to get the program up budge on its plan, let’s split the difference and get more dollars system is not up to the needs of overhead power distribution was the late 20th century, much less and running as their fans have to roads by dividing in half the current 6 percent sales tax inferior to underground distribu- the 21st century. come to expect. charged on fuel sales — half going to roads, the other half to tion. Timothy Dinan Even when it was built in the Charles Peacock schools and local governments. 1930s, engineers understood that Wyandotte See Talk, Page 9 KEITH CRAIN: Better hurry up with the power upgrade Last week, Detroit once again City-owned buildings, Obviously no one tem. It’s all following a request the interests of its customers at made national headlines in news- plus sites like the DMC should have the prob- from outgoing Emergency Manag- heart when it makes sure that the paper and television reports when and the DIA, went black lem of getting stuck in er Kevyn Orr to bring much-need- core infrastructure is sound. the lights went out. The power did- along with lots of traffic an elevator. And non- ed upgrades and better manage- DTE has probably been beaten n’t go out everywhere — but it lights. Far too many functioning traffic ment to the system. over the head to take over the De- went out in enough places to get people were stuck in ele- lights? That’s a real The sooner that DTE takes over troit power company. everyone’s attention. vators in buildings that recipe for disaster in a and invests in the upgrades, the Unfortunately, it doesn’t have a Just what our city needs. More lost power. modern urban area. Not better it will be. lot of choice. As a public utility, it publicity about chaos. DTE didn’t originally just inconvenience — We all know about the frequent is going to have to take the good No one bothered to read past the want to get involved but serious danger. power outages at DTE when and the bad. first few paragraphs to discover with this mess, and you DTE and the city are storms drop tree limbs on power It is the cost of doing business in that this problem was caused by can’t blame them. But it at the very beginning of lines. It happens like clockwork af- Detroit as a public monopoly. the city-owned power department, is their mess now, and a process to update the ter a storm, sending thousands Who knows? A successful trans- not DTE. Power was lost all over the sooner this antiquated power city’s outdated electrical grid. into temporary darkness. fer and upgrade might generate a the downtown area where the company run by the city fades Work began in July, and in about But it is a very rare occurrence lot of positive vibes to offset the city’s old and obsolete power com- away, the better off everyone will four years, the system will be up- when part of the basic grid goes next storm- generated DTE power pany was supplying power. be. graded and DTE will run the sys- down. DTE has its interests and outage. 20141208-NEWS--0009-NAT-CCI-CD_-- 12/5/2014 10:30 AM Page 1

December 8, 2014 CRAIN’S DETROIT BUSINESS Page 9

NOMINATE YOUR WORKPLACE FOR HEALTHY COMPETITION NOMINATIONS BEING SOUGHT FOR M&A AWARDS, BIGGEST DEALS Is your workplace the healthiest in Michigan? Involved in a merger or acquisition in 2014? You may be Cindy Goodaker at [email protected] or (313) 446- Find out by nominating your company for Healthiest Employers of eligible for Crain’s M&A Awards. Crain’s Detroit Business and 0460. For questions concerning the nomination process or Southeast Michigan, an awards program that will be included in the Association for Corporate Growth will honor companies the nomination form, contact YahNica Crawford at a June 2015 Crain’s report. and individuals in the following categories: [email protected] or (313) 446-0329. The Healthiest Employers award, sponsored by Health Alliance Ⅲ Best Deal of the Year: Under $100 million and $100 To nominate, see crainsdetroit.com/nominate. The Plan, takes a look at the best practices that employers across million or more. The deal must have closed in 2013. The deadline for nominations is Jan. 12. the state use to create a healthy workplace. buyer or the business sold must be in Wayne, Oakland, Macomb, Washtenaw or Livingston counties. Judging will be handled by Indianapolis-based Healthiest Biggest Deals Ⅲ Dealmaker of the Year/buyer-seller. Employers LLC. The group has conducted similar competitions in Deals of $10 million or more in transaction value initiated Ⅲ Dealmaker of the Year/adviser. M&A experts, lenders, most of the major cities in the United States. or closed during 2012 will be published in the Jan. 26 CPAs, consultants and attorneys, among others, are issue. To be considered, the buyer or sold company or The contest is free to enter. eligible. Winners will have their wellness efforts recognized as part of a company unit must be in Oakland, Wayne, Macomb, Dealmaker candidates also must be in Wayne, Oakland, Washtenaw or Livingston counties. Information needed is: print supplement to run next year. They also will be featured in a Macomb Washtenaw or Livingston counties. buyer, sold unit, cities for each, transaction value, video series as well as honored at an event in April, with time Winners will be profiled in the March 23 issue of Crain’s advisers, date the deal closed (if it has closed) and any and location still to come. Detroit Business and will be honored at an awards event in explanatory information. Please send an email by Jan. 12 To enter, go to crainsdetroit.com/nominate. The deadline for May. to Executive Editor Cindy Goodaker at entering is Jan. 26. For questions about the awards, contact Executive Editor [email protected].

TALK CONTINUED ■ From Page 8 Re: Michigan Senate defeats bill to lower truck weight Three generations and counting—on you. This is the major difference in roads between Ohio, Indiana, and Michigan: weight per axle. The At a certain level of wealth, a family’s wants and needs invariably change. Philanthropy, and the values it imparts to Michigan Senate catered to the lob- byists. Enjoy your lobbyist-ruled younger generations, takes on greater meaning; the long-term balance between family wealth and family harmony roads and highways this spring. Don’t complain if you don’t vote. becomes ever more important; and the merits of a trust become clear. Issues relevant to generational wealth are best linknet2 served by an advisor with unimpeachable integrity, competence and a steady hand. Consider the Family & Foundation Until I see more communities, counties and MDOT conducting Services Division of Greenleaf Trust. From one generation to the next, we serve families and oversee their best interests road maintenance on rotating schedules, the argument that big, in a meaningful, personalized manner remarkable for its reliability and attentiveness. As part of a highly respected, heavy trucks are the biggest of- privately held wealth management fi rm with over $7 billion in assets, we know family matters—in every fenders regarding our road condi- tions just does not hold up. meaning of the phrase. For a discrete consultation, call us. I’m not discussing shoveling cold patch into holes, but intensive asphalt crack routing and sealing, concrete pavement joint cleaning and sealing, and drainage mainte- nance. Roads do not reach their full life expectancy if they aren’t periodical- ly maintained. putthehammerdown

Re: Comerica Bank execs offer positive outlook for economy Wages are not increasing, but increases in utilities, taxes and more continue to climb. Further- more, Michigan wants to add an- other burden to the working class by increasing gasoline taxes to fix roads that should have been taken care of all along. The politicians have neglected their duties (but not their wages), and now the lower- paid employees will once again have to pay. 253110

There’s nothing preventing compa- nies from increasing employee wages now. To have to wait until unem- ployment moves to 5 percent sug- gest companies won’t share earn- ings until forced to. That’s not a healthy employer-employee rela- tionship. Be proactive for once; it would benefit individuals and the economy in general. John

Re: Covisint to move headquarters from Detroit to Southfield I hope the state ensures those 50 jobs are created. I wonder how long this company will last. It has never 34977 woodward avenue birmingham, mi 48009 greenleaftrust.com 248.530.6202 877.530.0555 made a profit. Bhoughton01 20141208-NEWS--0010-NAT-CCI-CD_-- 12/5/2014 10:31 AM Page 1

Page 10 CRAIN’S DETROIT BUSINESS December 8, 2014 Blue Cross starts high-intensity care program with physician orgs

BY JAY GREENE care providers, vided in physician offices, patient said MedNetOne comb PHO to ultimately care for CRAIN’S DETROIT BUSINESS said David homes and, in some cases, nursing CEO Ewa Ma- about 225 patients. Share, M.D., homes. Depending on the condition tuszewski, ad- The high-intensity care model is Eight physician organizations in Blue Cross se- of the patient, the team could in- ding that seniors an extension of the Blue Health Michigan have joined forces with nior vice presi- clude nurses, therapists, dietitians, also have psy- Connection program, which pro- Blue Cross Blue Shield of Michigan dent of value social workers and health coaches chological and vides telephone-based care man- and Blue Care Network to coordinate partnerships. along with the physician. social needs that agement from a specially trained care for up to 2,500 seniors enrolled The program Three of the physician organ- will be addressed Blue Cross nurse. in Medicare Advantage with six or is aimed at izations are Rochester-based in the home set- During the early phase of the more chronic diseases. Medicare Advan- MedNetOne Health Solutions; The Physi- ting. program, the nine physician orga- tage members in cian Alliance, a Warren-based organi- She said the nizations will identify patients Launched in a preliminary phase Share Matuszewski Oct. 1, Blue Cross’ High Intensity Southeast Michi- zation affiliated with St. John Provi- MedNetOne and voluntarily enroll them into Care Management Program is gan and Grand Rapids. “We have dence Health System; and Greater team this year conducted a month- the program. Practices will assess aimed at reducing costs and improv- enough of a density of membership Macomb PHO, which is affiliated long test of the program on 70 patients and develop comprehen- ing outcomes by coordinating care there and teams dedicated to work- with Henry Ford Macomb Hospital. Medicare seniors and found home sive care plans, Share said. between primary care, specialty ing with them to travel and make “This allows primary care physi- visits were particularly effective in “This program involves the very physicians, advanced practice nurs- home visits,” Share said. cians to really care totally for high- reducing costs. MedNetOne also is frail elderly,” said Karen Swanson, es, social workers and other health Services are expected to be pro- risk Medicare Advantage patients,” collaborating with the Greater Ma- M.D., chief medical officer with The Physician Al- liance. “It is a challenging pa- tient population for physicians because patients have lots of med- ical needs, in- cluding social, caregiver and Swanson transportation MAKE issues.” Swanson said The Physician Al- AN IMPACT liance expects to sign up about 300 seniors over the next six months NOW… and hire additional medical team members, including nurse practi- tioners, social workers, nutrition- ists and pharmacists. “Fortunately there is some re- AND MAKE imbursement for care in the home,” she said. Physician organizations will bill for office services as usual, but IT LAST. Blue Cross and Blue Care has cre- ated at least two new codes to help pay for the home visits and other administrative overhead costs. Share said Blue Cross also will The Community Foundation for Southeast work with practices to construct a new shared savings payment mod- Michigan ensures your gift helps meet el for the physician organizations. “By April, we will have a more and robust reimbursement system,” the needs in our communities today Share said. “Some physician orga- nizations already have gain-shar- tomorrow. We build endowment—permanent ing arrangements with Medicare Advantage plans whereby if they community capital—and offer the maximum improve financial performance over time, increase well-being of tax benefits under federal law for your gift. members, decrease the need for more costly services, they share We’ve been helping people in our region make some of the savings.” Swanson said The Physician Al- a difference for 30 years. Let us help you make liance has estimated it will incur a small loss on the program based on a difference for generations to come. the additional staffing and admin- istrative costs. She said the gain- sharing bonus system will help put Donate now to The Community Foundation for the program in the black. “Why do this program if we are Southeast Michigan, 333 W. Fort Street, Detroit, expecting a loss?” Swanson said. “This goes back to knowing that MI 48226 or at cfsem.org/make-gift. Contact we are not doing a good job with this complex population. We want us at 1-888-WE ENDOW to learn more. to do better.” Share said Blue Cross will moni- tor costs associated with hospital admission rates, use of emergency departments and nursing homes. “We will decide whether to con- tinue the program based on our re- view,” he said. The five other physician organi- zations that volunteered to be part of the program are Advantage Health Physicians, Grand Rapids; Integrated Health Associates, Ann Arbor; Lakeshore Health Network, Muskegon; Oakland Southfield Physicians, South- field; and United Physicians, Bingham Farms. Jay Greene: (313) 446-0325, [email protected]. Twitter: @jaybgreene 20141208-NEWS--0011-NAT-CCI-CD_-- 12/5/2014 10:32 AM Page 1

December 8, 2014 CRAIN’S DETROIT BUSINESS Page 11

A HEALTHY RISK Is Affordable Care Act here to stay? Benefits consultant plans for it, Page 16

growing small businesses

EDITOR’S NOTEBOOK

Amy Haimerl is entrepreneurship editor and covers Second Stage looks the city of Detroit. She can be reached at (313) 446-0416 or at ozens of Southeast Michigan companies shared their Ⅲ Andrea Livingston, managing director of Grit Design [email protected] stories this year in Second Stage, Crain’s monthly look Inc. in Detroit, featured in the May 12 section on benefits Dat issues pertaining to small and midsize businesses on and compensation techniques to attract and retain talent, Amy Haimerl the grow. Page 13 For this final issue of the year, we revisit some of the com- Ⅲ Carrie Charlick, CEO of bra business Essential To small-biz panies featured to see how their year went and what their Bodywear LLC, featured in the July 14 section about going plans are for 2015. global for the first time, Page 14 support: Cheers We hear from: Ⅲ Scott Foster, president of Wellco Corp. and the subject of Ⅲ Jim Marinoff, owner of Fast Hands Hockey LLC, a the July 14 Stage 2 Strategies, Page 15 This is the year that Detroit started Northville startup featured in the July 14 issue, this page We also asked them to read the economic tea leaves for the thinking small to grow big. Ⅲ Leon Richardson, president and CEO of ChemicoMays LLC, year ahead and share some New Year’s resolutions. Small business and entrepreneurs were the focus of the region’s economic who talked about diversity practices in the Sept. 8 issue, Page 12 — Gary Anglebrandt development efforts, from the city of Detroit hiring Jill Ford to lead efforts to foster entrepreneurship in the Motor City, or Automation Alley building a new accelerator for advanced manufacturing companies. (See Page 1). And, of course, Goldman Sachs came to town with its 10,000 Small Businesses Hockey startup gets an assist from program to help those poised for growth. And the Detroit Regional Chamber and Detroit Economic Growth Corp., two groups known for thinking about big business, started advocating a Red Wing – and a Japanese kid loudly for the city’s small businesses. Here are three ways the region focused on small business this year. 1. #NEIdeas. The New Economy hen 2014 dawned, Jim noff said. Initiative served up $500,000 in Marinoff had no idea he Fast Hands began operating in FAST HANDS HOCKEY LLC much-needed assistance to Detroit W would spend part of it at 2012, and 2013 was the first full small-business owners this year. The Pavel Datsyuk’s house. year of business. It sold 8,500 units nonprofit doled out $10,000 each to But at one point during the year, that year and doubled that this Resolutions 30 local businesses, allowing City that’s exactly what he was doing. year, to 17,000. Ⅲ Upgrade business processes. Bird to expand its retail shop in Marinoff runs Fast Hands Hockey His plans for next year follow an- This was the second full year of Midtown; Café con Leche to bring LLC, a business based on a patent- other bit of serendipity, something operation at Fast Hands Hockey, coffee roasting in house at its and Jim Marinoff still manages all Southwest Detroit café; and Gleeor ed tool he invented to help hockey Marinoff never seems short of. the billing and recordkeeping on Inc. to buy a skid steer and expand its players practice their puck-han- This year, online videos began paper. So this year, he will “get New Center-based construction and dling skills. The strength and con- circulating featuring a Japanese everything electronic.” landscaping business, among others. ditioning coach for St. Mary’s boy showing off his puck skills, Ⅲ As for hiring a first employee, 2. Detroit Microloan Collaborative. Preparatory high school in Orchard and in some of them he’s using a Marinoff’s not quite ready. “I’m Huntington Bank extended a $5 million Lake had younger people in mind homemade version of the Fast kind of scared of hiring. If I want it line of credit to the Detroit when he came up with it. Hands tool. done right, I’ve got to do it myself,” Development Fund to create a But then in October, the agent The videos became a sensation; he said. microlending program for small for the Detroit Red Wings star called a new one last month gathered businesses traditionally considered to ask whether his client could get more than 1 million views and Economic outlook unbankable. But the DDF went a step his hands on one. caught media attention in North Hockey is an expensive sport. further, partnering with the Michigan Parents have to shell out for ice Women’s Foundation, Detroit Micro- Marinoff runs the business out of America. his Northville home with help from Marinoff contacted the boy’s fa- time, gear and coaching. But since Enterprise Fund and Lifeline Business Marinoff sees no shortage of Consulting Services to target minority- his wife, who has a full-time job at a ther and sent a proper Fast Hands. demand for hockey products, he owned businesses and ensure they get shipping company. They have no The father recommended Marinoff figures that must be a good sign. the money, coaching and development employees and launched the busi- get the product in stores in Japan, “Hockey goes along with a good skills they need to succeed. ness with minimal marketing. where hockey is taking off, and economy.” 3. D:Hive grows up. For the past three So calls like this aren’t expect- gave Marinoff the contact infor- years D:Hive has acted as both a ed. mation for a big retailer. welcome center to the city and a The agent asked Marinoff to They’re working to get some- small-business development bring over a few Fast Hands to the thing happening, but the language organization. But starting in 2015 it Oakland County home of Datsyuk, barrier is slowing progress. Fortu- will split into two: Build Institute and who was out of town, and gave nately, Marinoff has a Japanese Detroit Experience Factory. That means Build Institute can train more Marinoff the code to get in. “I connection. people with ideas on how to make dropped some off with — I don’t “There’s a Japanese guy who them into businesses. know if it was the butler or what,” lives in my subdivision. I’m proba- So as I think about my New Year’s Marinoff said. bly going to ask him” for help, he resolutions, I toast the many small- Similarly, he wasn’t expecting said. Jim Marinoff’s business support organizations out Philadelphia Flyers General Manager Marinoff also has investment contraption that there, including FoodLab Detroit, Ron Hextall to come calling in plans for next year. He and the develops nimble Detroit Food Academy, Hatch Detroit April, asking for 12 units. Marinoff hockey coach from St. Mary’s, Bri- stickhandling attracted and its partnership with the Detroit figured the Flyers wanted the tool an Klanow, are developing a re- Lions, TechTown Detroit, Invest attention from to give away as a prize or some- Detroit, Focus: Hope, the Center for bounder — a tool that shoots the one of the Empowerment & Economic thing along those lines. He inquired puck back at the handler. They’ve masters of the Development, Detroit Creative to see what Hextall had in mind. spent $4,000 developing it at a proto- craft – Detroit Corridor Center, SCORE Detroit and “He said, ‘We’re putting them in typing program run by Lake Superior Red Wing Pavel all those I have yet to meet and know. the Flyers training center,’ ” Mari- State University in Sault Ste. Marie. Datsyuk. ANTHONY BARCHOCK 20141208-NEWS--0012-NAT-CCI-CD_-- 12/5/2014 10:35 AM Page 1

Page 12 CRAIN’S DETROIT BUSINESS December 8, 2014 Second Stage

JOHN SOBCZAK Leon Richardson (right) learned that expanding ChemicoMays into Mexico involves more than having the right people and resources. A simple oversight in taxation cost the company a year’s worth of taxes that could have been avoided. Be it engines or global growth, get down to the nitty-gritty

Leon Richardson, head of South- field-based ChemicoMays LLC, said the past year was a solid one with CHEMICOMAYS LLC no surprises — almost. Resolution Economic outlook The company spent 2013 prepar- After expanding into one new line of Expecting good things from low ing for the launch of a new line of business in 2014, Richardson plans energy prices: “Depressed energy business last January when it to keep building. “We’re going to costs are going to drive positive moved into the high-precision broaden our service offering to our economic growth for the foreseeable cleaning of engines being built at existing customer base.” future. I’m very bullish.” automotive plants. ChemicoMays takes the new engines, ships them to another location, cleans the mill The launch involved the logisti- Fortunately, the company, grease and stamping oils off them cal pressures of receiving special- formed in 1989, had been through and ships them back. ized washers from Germany and the wringer before. “An engineer- ing change will drive some indi- Sounds simple enough. But in specialized chemicals for the preci- viduals in other industries nuts,” the high-intensity world of auto- sion cleaning. Last-minute engi- Richardson said. “We’re we used motive manufacturing — with its neering changes — not uncommon to the pressures.” tight margins, lean inventories events in the automotive world — Another big project this year, a and breakneck deadlines — small pushed things to “the eleventh 25 percent expansion of Chemico- missteps are expensive. hour,” Richardson said. Mays’ Mexican business, also went smoothly, with one small oversight: taxes. The project was to expand the company’s work in Mexico from automotive to aerospace and de- fense. Despite taking pains to put in the right team and resources, matters of tax structure and mon- ey repatriation were overlooked. The result was the company faced double taxation, once in Mexico and once in the U.S. “We didn’t pay close enough at- tention to legislative issues like taxation,” Richardson said. And this was no theoretical mat- ter — ChemicoMays became aware of its situation last summer, 12 months after the fact. It had to pay a year’s worth of taxes that could have been avoided. This forced the company into re- forming the entity it had set up in Mexico. Consultations with Mexi- can and U.S. authorities eventually squared things away to prevent the same thing from happening next year. “No one got hurt. It was a good year,” Richardson said. 20141208-NEWS--0013-NAT-CCI-CD_-- 12/5/2014 10:36 AM Page 1

December 8, 2014 CRAIN’S DETROIT BUSINESS Page 13 Second Stage

JOHN SOBCZAK This summer, Andrea Livingston got a confidential tip that her company had won a $5 million contract. Alas, that was not to be, reinforcing Grit Design’s aversion to requests for proposals. Design firm’s RFP became RIP, but biz kept buyout bids buzzing

Looking back on the year of run- ning her digital marketing busi- ness, one moment stands out for GRIT DESIGN Andrea Livingston, managing di- Resolution and mutual respect — “folks who rector of Grit Design Inc. in Detroit. really think broadly.” It was late on a Friday in summer, Ⅲ The goal next year for managing director Andrea Livingston is “to and a call came telling her, confiden- work with people who we really Economic outlook tially, that her firm had won a enjoy working with,” whether it’s on Ⅲ Livingston expects significant $5 million contract. The official pa- the client side or in team efforts growth next year and is in talks with perwork would arrive next week. with other businesses in the investors to raise the money “We, of course, were overjoyed. marketing world. She wants to stick needed to scale the company We love the client and what they to companies that provoke thought accordingly. do,” Livingston said. Another call came during the The company was not looking to you’re constantly second-guessing middle of the following week say- sell, for an insulting price or other- yourself,” Livingston said. “When ing the contract wasn’t finished wise, but the offers came as wel- people call out of the blue, even if yet, but hang in there. Then on Fri- come encouragement. The Grit the offer is junk, it validates that day came the apologetic call say- team has been together for more you still have something.” ing the contract was canceled. than 10 years, which is rare, and it Grit Design is looking for in- From the sound of things, it never caught others’ attention, she said. vestors, however, to support antic- really had been a possibility to be- “As a small-business owner, ipated growth next year. gin with, as the potential client’s IT department wouldn’t let go of the project in question. The people at Grit Design had learned from similar experiences to never count their chickens be- fore they hatched, so there hadn’t been any champagne parties that week. But it was deflating nonethe- less. “We had been mentally organiz- ing our operations to manage” the new business, Livingston said. The contract talks were initiat- ed by a request for proposals, something Grit already was leery of doing because the amount of ef- fort RFPs take. The experience re- inforced the company’s skepti- cism. Next year, no more RFPs. “The best business comes from relationships,” Livingston said. Grit also had a more pleasant surprise this year — unsolicited buyout offers. “Three different companies offered to buy us out of the blue for low dollar amounts, assuming we weren’t sophisticat- ed enough to understand our own value,” Livingston said. 20141208-NEWS--0014-NAT-CCI-CD_-- 12/5/2014 10:39 AM Page 1

Page 14 CRAIN’S DETROIT BUSINESS December 8, 2014 Second Stage

GLENN TRIEST Carrie Charlick (left) and Marcia Cubitt saw Essential Bodywear generate considerable press when the “Today” show and “Late Night with Seth Meyers” made sport of their bra-fitting office parties. Notes Charlick: “It’s done in restrooms.” After a chilly year, bra-maker

YOU CAN TELL FROM OUR BUILDING WE MEAN BUSINESS. gets a boost as comic fodder

The GVSU Seidman College of Business full- or The weather got things off to a bad start this year for bra-maker part-time M.B.A. program will get you to the top. Essential Bodywear LLC. ESSENTIAL BODYWEAR LLC West Michigan’s premier business school now has The company has an army of Resolution where entrepreneurs pitch ideas to sales representatives, affectionate- Ⅲ After an attempt to expand its investors. an equally premier building, enhancing downtown ly known as “bra ladies,” who buy lineup went in the wrong direction, Grand Rapids’ growing skyline and economic climate. the products to sell through par- the plan is to stick to “making an Economic outlook ties at homes and offices, where impact with our basics,” CEO Carrie After sales took a bruising from last women also get fitted. Charlick said. “We’re going to focus year’s aggressive winter, Charlick on who we are, what we do best and just wants better weather. This is The polar vortex didn’t put peo- what makes this company. We’re doubly so because she has seen ple into a partying mood, however. known for our fully figured bras and consumers grow a little tighter with With everyone hunkered down for for making these women look great.” money in the past five months or the duration, sales plunged. Ⅲ The company also wants to land so. They’re willing to spend, but “It was the first time in 11 years some investors in the new year. “I they are waiting for deals and the weather affected us,” CEO Car- might throw my hat in the ring on specials first. “I do feel like people rie Charlick said. “It took a toll on going into ‘Shark Tank,’ ” Charlick are definitely tightening back on us; it took a toll on the reps.” said, referring to the CNBC show spending.” Then the Commerce Township company spent much of the rest of and India, people are working.” In 2015, Charlick and Cubitt this year untangling itself from a Kathie Lee Gifford and Hoda hope to pick up capital from in- decision gone wrong. Kotb, hosts of “Today,” wrinkled vestors so they can expand Essen- In January, Essential Bodywear their noses at the idea of walking tial Bodywear’s lineup of basic introduced a lineup of fancier, laci- around in a bra at work. But Char- bras and hire a sales manager and er bras. But the bra ladies revolt- lick said that’s not quite the way it an operations manager. ed. They wanted to stick to their works. tried-and-true basic bras and just And they’re hoping for better wanted more colors to offer. “It’s done in restrooms,” she said. weather. Because the bra ladies are the ones most attuned to customers and technically are Essential Bodywear’s front-line customers anyway, the company relented. “They don’t want to be fashion- istas,” Charlick said. The wheels already were in mo- tion and inventory ordered, re- quiring the company to make a quick about-face. It’s not an experi- ence Charlick and her fellow com- pany owner, Marcia Cubitt, plan to repeat. They promise to “stick to the basics” from now on. “It’s been a yearlong thing, deal- Teamwork that helps. ing with this,” Charlick said. The year wasn’t all bad. The company’s quirky way of selling When businesses face the changing demands that come with bras caught national media atten- running a company; growth, purchasing goods, or making tion one week in September, with payroll, they require a strong, yet flexible solution. Our commentary on the “Today” show and “Late Night with Seth Mey- asset-based lending, M&E financing, government-guaranteed ers” following a feature on Essen- programs, and equipment leasing Crain’s 2015 General and tial Bodywear’s office parties that In-House Counsel Awards NOMINATIONS week in the New York Post. can help. NOW OPEN Healthiest Employers: “Companies have started setting Contact us today! Best wellness programs up bra-fitting events in offices crainsdetroit.com/nominate from Southeast Michigan called bra parties,” Meyers riffed. 888.999.8050 “Meanwhile, in offices in China 20141208-NEWS--0015-NAT-CCI-CD_-- 12/5/2014 10:40 AM Page 1

December 8, 2014 CRAIN’S DETROIT BUSINESS Page 15 Second Stage ‘Annoying myself’: When success becomes excess

Scott Foster had one of those “be work and airline flight issues had gled with.” careful what you wish for” years. conspired against him. Now he He has been trying harder to “di- WELLCO CORP. His company, Royal Oak-based was late for a flight in Atlanta, vert daily and withdraw weekly,” Wellco Corp., was featured in running around with a phone Resolution calculating percentages to show doing things like taking walks whether he’s meeting goals. Crain’s Stage 2 Strategies in July welded to his face, unsure whether with his wife, playing tennis with Not to become “that guy” at the “I’m going to be tracking my for its work in turning the compa- he was even going in the right di- a friend and completely unplug- airport again. “I’m scheduling balance” to keep work from choking success just as I would in ny’s business model on its head. rection to get to his gate. ging all electronics on weekends. Wellco moved away from its tra- out his personal time, owner Scott business,” Foster said. “I was that traveler I never ditional business of setting up em- On the business side, Foster Foster said. wanted to be — on the phone, a Economic outlook ployer wellness programs to using plans to grow sales 35 percent next He’s doing a kind of work-life jujitsu flight attendant telling me they software to analyze employers’ en- year and has an acquisitive mind. by using work against itself to Clients are growing steadily and bolster the personal side: One of hiring again. “Companies seem to tire health care programs. The need to close the door, bullying “We’re on the lookout to purchase past everybody. ... I was annoying a company that has strong analyt- Foster’s software programmers is have more cash to invest to move created more consulting improve on their businesses in myself,” Foster said. “Those are at- ics to enhance and complement making a simple form that will let business and turned former com- Foster track how he uses his time, 2015.” petitors into customers. tributes I previously hadn’t strug- our systems,” he said. That grew revenue and cus- tomers. But it also grew demand for time with Foster, who spent much of the year learning how to reconfigure work-life balance. Under the old regime, business was cyclical. Foster would work hard but then have a period to catch up on personal and family life. The new system flattened the cycles, which was great for busi- ness but hard on Foster. “It became challenging for me personally. I reached almost 100,000 flight miles this year,” he said. Open up a world of possibilities At one point in early fall, Foster found himself fully, and publicly, for your company—with our becoming a character he loathed: the self-important business guy at the airport. local experts. Immediate demands from new and existing clients, the buildup of

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Page 16 CRAIN’S DETROIT BUSINESS December 8, 2014 Second Stage Despite health reform’s uncertainty, firm invests in optimism

BY GARY ANGLEBRANDT every 20-person business to build SPECIAL TO CRAIN’S DETROIT BUSINESS CAMBRIDGE CONSULTING customized systems. (Competitors figured that the Affordable Also on the technology side, If one type of company stands to GROUP LLC “ Cambridge spent $50,000 on model- gain from the Affordable Care Act, Location: Troy Care Act) was the death of the ing software it uses to show clients other than health insurance com- the financial outcomes of various panies, one would think it’s bene- Description: Insurance and benefits consulting firm broker in the benefits consulting scenarios under the ACA, includ- fits consulting companies. ing not providing health care at all These are companies that em- President: Cameron Kennedy world. They thought individuals Founded: 1985 and letting employees go to the fed- ployers bring in to help them man- eral exchange. Employees: 61 age, among are going to go to exchanges, or Kennedy reckons the education, Revenue: $12.5 million in 2013 other things, it’s just going to be a hiring and technological develop- STAGE 2 health care ment has cost between $2 million programs for employers no longer would be in nationalized system. and $3 million since 2010. “And a lot STRATEGIES employees. So the health care game. ” of that is recurring expense,” he a historic “A lot of agents said, ‘This is the Cameron Kennedy, Cambridge Consulting Group LLC said. A look at piece of legis- end of our role,’ and didn’t want to problem-solving Revenue is on track to reach $14.5 lation sudden- make the investments they needed by growing new needs of clients. clients directly. This led to the hir- million this year, compared with ly makes that to,” Kennedy said. $10.5 million in 2010, before Cam- companies “We were pinched on revenue, ing of about six more people. entire sphere Cambridge was among those bridge began bracing for the ACA but there was a whole ton more ser- Another staffing adjustment was much less that chose the more optimistic wave. Kennedy thinks the invest- vice,” Kennedy said. “We were cre- the hiring of a director of exchange clear, and these consultants view and began preparing. ment has only just begun to pay off. ating the ability to do more with solutions. Clients wanted to have should be seeing dollar signs be- Problem: There were a lot of “I think it’s minor compared to less.” private exchanges where employ- fore their eyes, right? preparations. A big wave of com- what it will be in two or three ees could shop for health care plans Maybe, maybe not, said panies seeking help was about to Solution: The first step was to ed- years,” he said. using money from the employer as Cameron Kennedy, president of hit Cambridge, so it had to be able ucate the staff. Cambridge spent Risks and considerations: One risk a starting point. Employers wanted Cambridge Consulting Group LLC. to handle it. Its clients are small money on attorneys and human re- was that if Cambridge didn’t invest, this for the potential savings to off- Many of these consultants were and midsize businesses, just the source organizations and sent em- it would lose out to competitors that set costs that might be incurred to leery of investing the money it sort that would have the hardest ployees to conferences to get the did. Another risk was that the com- meet the requirements of the Af- would take to grapple with the com- time understanding what they’d knowledge they needed. The com- pany could spend the money, only fordable Care Act. plexities of the legislation, for them- have to do meet the requirements pany added a director of compli- for the federal government to selves or on behalf of their clients, of the Affordable Care Act. ance to educate employees as well This was the most difficult part, change its mind about health care Kennedy said. They assumed the Cambridge — not a large compa- as clients on the new regulations. Kennedy said, because to do it cost- a few years later and toss the ACA was a quick steppingstone to ny itself — would have to steep its The consulting teams each need- effectively meant building a “plug whole thing up in the air again. nationalized health care. As soon people in the new health care mod- ed to add one administrative person and play” version of an exchange Plenty of competitors thought as they got up to speed on the el and do it on a tight budget. It to take over duties held by account that small businesses could use. that’s just what would happen. ACA, it would all change again, also would have to reconfigure its managers. This would free man- Cambridge would lose its shirt if “They figured this was the death of with the likely result being that teams and technology to meet the agers to go on the road to meet with it started sending in teams to the broker in the benefits consult- ing world,” Kennedy said. “They thought individuals are going to go to exchanges, or it’s just going to be a nationalized system.” But business is for risk-takers, Kennedy said. Yes, the govern- ment could upend the whole thing. But so can an automaker yank its business from a supplier almost entirely dependent on that one customer. It’s up to owners to scan the field and make the call. Helping entrepreneurs and “Are you willing to make bets? When it’s not clear it’s going to pay growing businesses in Michigan. off? That’s all about being an entre- preneur and taking risks,” Kennedy said.

Expert opinion: “When you have

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December 8, 2014 CRAIN’S DETROIT BUSINESS Page 17

PUBLISHER’S NOTEBOOK

Contact Mary Kramer at mkramer @crain.com. CRAIN’S MICHIGAN BUSINESS Mary Kramer Economist asks: Are we too late? Courses Walter Williams is among the handful of conservative African-American academics, authors and essayists who buck the group-think of what ails predominantly black cities like Detroit. “Black people could benefit from an honest examination of the bill of goods they’ve been sold,” he wrote last year in a column that included references to to careers Detroit. “Such an examination would not come from black politicians, civil rights leaders Innovation academies or the black and white liberal elite. Those people put Grand Rapids have benefited politically and financially from high school students on ISTOCK PHOTO Williams keeping black Americans in a constant state of grievance based on vocation-focused paths alleged racial discrimination. The long- term solution for the problems that many black Americans face begins with an absolute rejection of the self- BY ROD KACKLEY Mark Frost, principal of Innovation Central plied for the postings. But Helmholdt said serving agenda of hustlers and poverty SPECIAL TO CRAIN’S MICHIGAN BUSINESS High, said the district realized that students some came from outside the district. pimps.” who do not do well in high school are proba- Some have specialized degrees, Frost said. And that’s just for starters. tudents at Innovation Central bly not going to do well in higher education. For instance, two teachers have business de- A free-market economist who High School in Grand Rapids As a result, those students are being shown grees, while one in the Design & Construc- teaches at George Mason University study construction drawings other avenues, such as trade schools that tion academy is a builder. outside of Washington, D.C., Williams could come after high school. “The turnaround and the environment we is the subject of “Suffer No Fools,” a in the classroom before going John Helmholdt, executive director of have here is phenomenal,” said Kathy Hod- bio-documentary that its creator, Bob out into the field with ham- communications and external affairs for the der, the department head for science and the Chitester, is trying to find a home for S mer guns and nails to get their hands GRPS, said the academies lead teacher at the Academy of Health Science on public television stations. dirty building houses with Habitat for were switched to a centers- & Technology. “The kids are excited about the It has already aired on public TV in Humanity. of-innovation model in programs and everything we have to offer.” Grand Rapids; it airs on Detroit’s 2007. While such centers Many students enter Innovation Central WTVS-Channel 56 at 10 p.m. Dec. 22. Building is part of learning at the Grand might act and quack like a sure of the career path they have chosen. But Chitester and Williams spoke last Rapids Public Schools’ Academy of Design & Con- charter school, they carry some receive an awakening when they actu- week at a dinner in Bloomfield Hills struction, one of four academies that make up none of the political bag- ally get into the classes. convened by the libertarian group Friends of Liberty. Innovation Central High. All four academies gage of the charter school. Not to worry. Not everyone who comes out began in the early 2000s as separate, smaller “Our centers of innova- of the Academy of Health Science & Technol- Chitester is no stranger to public television. He persuaded economist alternative or theme schools in the district. tion benefit from the size, ogy needs to go to medical school or even col- The idea was to bring public school offi- scope and economy of scale lege. They have other opportunities, such as Milton Friedman and his wife, Rose, to Helmholdt create the landmark series “Free to cials and teachers together with higher edu- that a large district brings an emergency medical technician course Choose” in the 1980s. cation professionals and business leaders to while at the same time being afforded a large that offers the potential of a job as soon as the Williams, 79, last week invoked build a new, career-focused model of sec- amount of the autonomy, flexibility and site- student graduates from high school. Friedman’s adage: “There’s no free ondary education. based decision-making that charters enjoy,” For the 2014-15 school year, Helmholdt lunch, everything costs something; it’s These are comprehensive high schools Helmholdt said. said, 782 students are enrolled at Innovation a matter of who pays the price.” where students spend the day learning math, Also, the instructors are Grand Rapids Central, a figure that isn’t close to capacity. As a student at UCLA after an Army science, foreign languages — everything the Public Schools teachers who are part of the “We are expecting numbers to grow signif- stint in Korea, Williams said he began state of Michigan says they need to know. state retirement system and receive the same icantly and that there will soon be a waiting to think deeply about economics, But everything is also career-focused. wages and benefits as other teachers. Many list,” he said. concluding that minimum wage laws In 2012, the Academy for Design & Con- are GRPS teachers who ap- To be accepted into Innovation Central, an depressed the hiring of lower-skilled struction — along with the Academy of applicant must be in “good standing,” which workers. “When the price of anything Business, Leadership & Entrepreneurship, means the student has not failed any classes rises, people seek substitutes,” he the Academy of Health Science & Tech- and is working on their high school class said, blaming minimum wage for the disappearance of jobs ranging from nology and the Academy of Modern En- credits. Frost does make exceptions, howev- gas station attendants to theater gineering — moved into a for- er. ushers. The fast-food industry will mer high school building near More than 16,500 students are enrolled in adapt to new technologies, he downtown Grand Rapids as the Grand Rapids Public Schools, based on predicted. part of the school system’s dis- last statewide count in October. So is he optimistic about America’s trictwide transformation plan. Craig Datema, chairman and CEO of Triangle future? That plan was put in place after the district Associates Inc. in Grand Rapids, has been in- “For the first time in my life, had seen enrollment decline by more than volved in developing the curriculum since the Americans are talking about our 7,000 students, closed 25 schools and pro- inception of the Academy of Design & Con- Constitution, arguing about our grams, and cut $100 million from its budget. struction in 2009 and is chairman of the Constitution,” he said last week, The district has a graduation rate be- school’s advisory council. Triangle provides crediting President Obama’s first term low 50 percent and a dropout rate near construction management, design-build work, in office for mobilizing many 20 percent. general contracting, development services, Americans. A fifth academy, University Prep integrated project delivery and sustainable- “It’s a question of whether it’s too Academy in downtown Grand Rapids, building services. late. A question we might ask is intended to help students move When discussion began about an Academy ourselves is: Are we different from the Romans, the French, the Spanish, the from high school to college with in- of Design & Construction, Datema said, “The British — all the great empires in the dividualized educational programs. first thing I said was, ‘How can we help?’ ” past. Will we have another fate?” Moving students from high school to col- lege is a goal of the other academies. But See Academy, Page 18 ISTOCK PHOTO 20141208-NEWS--0018-NAT-CCI-CD_-- 12/5/2014 10:42 AM Page 1

Page 18 CRAIN’S DETROIT BUSINESS December 8, 2014 CRAIN’S MICHIGAN BUSINESS Academy:New lesson plan ■ From Page 17 Another early participant in the will stay with their students academy was Rockford Construction through the end of high school. Co. Jennifer “In the surveys that these stu- Boezwinkle, the dents turn in, they always come company’s vice back to the mentors. They love president of them,” Frost said. business devel- “It is awkward at first. But after opment, said the two or three meetings, they are academy fit building relationships so they can with Rockford’s talk about all different kinds of Reliable, modernized grid history of phil- things.” anthropic in- Helmholdt of the GRPS said the volvement in school district’s relationship with Boezwinkle Energy is essential to the way we live, work and play. Grand Rapids. the businesses began in the early “A secondary piece of that is 2000s. As the academy concept was ITC operates, builds and maintains the region’s supporting up-and-coming talent developed, GRPS officials began and training and really encourag- looking for more job providers electric transmission infrastructure. We’re a Michigan- ing young people to consider a pro- who could join the Innovation Cen- based company working hard to improve electric fession in a construction-related tral programs. field,” Boezwinkle said. “Con- “We looked at the top employ- reliability and increase electric transmission capacity struction, as does manufacturing, ers, the employers that had the ca- sometimes has trouble attracting pacity to dedicate staff time,” he throughout the Midwest. people into the industry.” said. “This is not like serving on Besides showing students how any old board. We are looking for to design and build, then taking some hands-on volunteers.” them out into the field to put those Oftentimes, the volunteers do We’re ITC – your energy superhighway. skills to work, the teachers and more than serve on the advisory businesspeople also help them council, Helmholdt said. Some move forward with their construc- work in the classrooms with the tion careers, Boezwinkle said. teachers. Others are involved in Some of these students could be after-school activities. the first in their families to go to Still others have helped create college, so they need some extra the curriculum for the academies. help sorting through career op- “The teachers were not trained tions. or skilled in the design or construc- www.itctransco.com Rockford Construction and Tri- tion industry, and it was apparent angle Associates are not alone. that we could really help them out The biggest names in the Grand by putting together a curriculum Rapids business community are committee,” said Datema of Trian- involved. gle Associates, who is now chair- A representative of Ada-based man of the Academy for Design & Amway Corp. sits on the advisory Construction’s advisory council. council of the Academy for Busi- “We knew that for the program to ness Leadership & Entrepreneur- be successful, they had to have in- ship, as do representatives from dustry partners that could help Huntington Bank, the Grand Rapids them set the direction of the pro- Area Chamber of Commerce and the gram.” law firm Warner Norcross & Judd Beyond helping the GRPS and LLP, among others. city of Grand Rapids, Datema also Michigan State University’s College thought the academy could help of Human Medicine, Grand Valley Triangle with Possible is everything. State University, Western Michigan one of its biggest University, Grand Rapids Community challenges: re- Today, more than ever, global competition, new technologies, and corporate College and Spectrum Health are cruiting young streamlining require innovative represented on the advisory coun- people who have cil of the Academy of Health Sci- chosen a career thinking and leadership abilities. ence & Technology. Also on the ad- path in design visory boards are teachers from or construction. Continuing your education can be each school. The Centers of key to your success. From Project Frost said having business pro- Innovation is far fessionals on the advisory boards from finished. Management and Entrepreneurial and in many of the classes has Datema Helmholdt said proved to be “vital because they the GRPS plans to use the model to Skills to Workplace Technology have real-world experience and develop other schools. and Business Administration, real-world ideas on what students “The new Grand Rapids Public Mu- will need to become successful in seum School is the next Center of Lawrence Technological University their industries.” Innovation that opens next year,” “We have human resources peo- he said. offers innovative degrees and fast- ple saying, ‘We need specific Interest from students and their things out of these students.’ ” parents has been phenomenal, track certificate programs to prepare Moving businesspeople into Helmholdt said. Hundreds of par- you for the jobs of the future. high school classrooms might ents and teachers show up for par- seem to be a recipe for awkward ent nights at the academies. interactions. And it was at first. “They had over 650 people show 2015 Explore over 100 undergraduate, But Frost called the experience up for one parent night,” AMERICA’S BEST “tremendous.” Helmholdt said. “That is virtually UNIVERSITIES master’s, and doctoral programs U.S. News & “I can’t tell you how many peo- unheard of in the world of monthly World Report® in Colleges of Architecture and ple have contacted us,” he said. parent meetings. If we got 50 to 100 Design, Arts and Sciences, “The support from this communi- parents at any other parent night, 2015 TOP 100 Engineering, and Management. ty has been unbelievable.” it would be considered a good UNIVERSITY Frost said the Academy of De- night.” Highest Alumni Salaries PayScale sign & Construction has had a Said Datema: “Without a strong strong mentorship program that public school system at its core, 2015 soon will be expanded to the other Grand Rapids will not be a strong MILITARY FRIENDLY academies. community. We were hoping that S C H O O L The mentors from the business by supporting our core city, we G.I. Jobs® Lawrence Technological University community each meet with two or could also enhance our diversity of 21000 West Ten Mile Road, Southfield, MI 48075-1058 | 800.225.5588 | [email protected] | www.ltu.edu three students once a month begin- employment as students graduate ning in ninth grade. The mentors from these programs.” 20141208-NEWS--0019-NAT-CCI-CD_-- 12/5/2014 10:44 AM Page 1

December 8, 2014 CRAIN’S DETROIT BUSINESS Page 19 CRAIN’S MICHIGAN BUSINESS

COURTESY OF (FROM LEFT) ORIGINAL MURDICK’S FUDGE, GRAND TRAVERSE PIE CO., CHERRY REPUBLIC INC. AND AMERICAN SPOON FOODS A number of northern Michigan companies can attest that food has no off-season, be it fudge, pies, covered pretzels or jam. A taste for up north gives food happy holidays! sellers a mail-order holiday boost from the team at Kerkstra Precast

BY AMY LANE day mail-order sales have been get- Said Tom Scott, senior vice pres- SPECIAL TO CRAIN’S MICHIGAN BUSINESS ting “bigger and bigger every ident of communications and mar- year,” said Margaret Alexander, keting for the Michigan Retailers As- Like most businesses on Mack- director of brand essence. sociation: “Successful retailers inac Island, Original Murdick’s Fudge Shipping growth can be attrib- provide all the channels possible closed for the season in late October. uted to a number of factors, such as to satisfy their customers, and Last year and this year, though, catalogs mailed to buyers of similar they use each of those channels to it reopened in December and fired online products, improved Internet promote the other ones.” up its copper kettles to feed a new search engines that enable poten- Megan Feeley, marketing direc- holiday mail-order business. tial customers to more easily find tor at American Spoon Foods in “It really was brought on by the company, a growing email list Petoskey, said the company tries many of our seasonal customers and a monthly email newsletter. to make a connection with cus- and corporate having a great inter- The region’s strong tourist draw tomers, such as in its catalog high- est in doing holiday gift-giving,” also has been a boost, Alexander lighting local sources and stories said Original Murdick’s owner said. Visitors connect with Grand behind fruits used in products. and president, Bob Benser. Traverse Pie products at its Tra- The company’s offerings include “We close, and then we reopen verse City or Petoskey stores. It jams, jellies, maple syrup, fruit basically four weeks later.” also has 15 company-owned or butters, grilling sauces and salsas KERKSTRA PRECAST It takes logistics: Fudge, brittles, franchised shops throughout the sold at six American Spoon stores www.kerkstra.com caramel corn and toffee made at the state, including four in Southeast throughout the state, wholesaled reheated store on the island are Michigan, and also wholesales its to specialty shops and shipped. packaged into gift boxes at an adja- products through grocery stores. Feeley said that over the past few cent pizzeria that Benser, who lives Alexander said the company adds years, the company has increased in Bloomfield Township, also owns. seven people to handle phone or- the frequency that it emails cus- Those packages then are loaded ders, shipping and baking — more tomers during the season and has fo- onto luggage carts and shipped on than doubling the number of em- cused email content, such as to pro- an Arnold Transit Co. ferry to St. ployees in those areas. mote a specific gift. The hundreds of Ignace, where FedEx collects them. The rush is also heavy at Cherry thousands of catalogs the company It’s a roughly three-week order Republic Inc. in Glen Arbor, maker mails in November and December and production period that ends of more than 170 cherry products. drive mail-order business, she said, Dec. 18 and should employ about 15 The company — which has stores producing about 80 percent of its or- people, said Benser, who hopes in Charlevoix, Traverse City, Glen ders during the period. this year to double last year’s holi- Arbor and Ann Arbor and sells Holiday mail order represents day mail-order sales of $80,000. He wholesale to Michigan specialty about 20 percent of American declined to state Original Mur- food stores — does about half of its Spoon’s overall annual business, dick’s total annual sales, which in- annual business in November-De- said Feeley, who declined to state clude others through mail order cember mail-order sales, President dollar amounts. Holiday business and at stores on Mackinac Island Bob Sutherland said. also swells a six-employee count in and in St. Ignace, Mackinaw City He declined to state sales but said customer service and shipping de- and Martha’s Vineyard, Mass. about 40,000 orders ship over the partments to about 60. To many north-country food pur- two months from Cherry Repub- At Leelanau Cheese Co., visitors veyors, mailing a taste of Michigan lic’s warehouse in Empire. That and summer residents who have during the holidays means signifi- means adding about 100 employees headed out and year-round resi- cant — and for some, growing — for jobs such as answering phones dents who want to send “a little bit business. Among the factors: an im- and packing gift boxes — an expan- of home” to families elsewhere are proved economy and an increased sion that can be challenging to fill. among holiday mail-order cus- consumer inclination to spend, mar- “We have about 275 employees tomers that fortify sales. keting tactics and spinoff from the that we’ll have at Christmastime,” Anne Hoyt, who with her hus- state’s Pure Michigan campaign, Sutherland said. “And in our little band, John, makes cheese and owns which send into stores visitors who towns of Glen Arbor and Empire, the Suttons Bay business, said the become mail-order customers. that’s about everybody that we can cheeses, made from local cow’s During the holiday ordering time, find, that we can get,” from re- milk, generate hundreds of orders Traverse City-based Grand Traverse tirees to “every gardener, waiter between Thanksgiving and Christ- Pie Co. ships several thousand pies that works during the summer.” mas — business that works well for that include top sellers apple crumb, Most mail-order customers are several reasons. cherry crumb and cherry ganache, those who have come in to Cherry In the summer, cheese is difficult among the more than 15,000 baked Republic stores “and identified with to ship and the shop is busy, she items it mails in the season. us … asked for a catalog,” and it has said. But post-season, “we slow Some of the holiday business progressed from there, he said. down so much with walk-in retail comes from households and some As with many retailers, Cherry business,” Hoyt said. Leelanau from corporate customers, includ- Republic catalogs, email, online Cheese last year did about $17,000 ing the Showtime cable network, ordering and store walk-in traffic in holiday shipping; Hoyt declined which recently placed an order for all contribute to holiday mail-or- to state overall annual sales. 450 northern Michigan Montmoren- der sales. “Thanksgiving and then Christ- cy cherry pies with the Showtime The company’s weekly Orchard mas is definitely a good time for logo in the pastry top. Report e-newsletter, which in- us,” she said. The period “can keep The holiday shipments amount cludes news and product specials, my staff busy (and) is a good way to less than 10 percent of Grand goes to about 55,000 people, and to sell our product. We love having Traverse Pie’s overall annual sales “more and more, people order off that business. It would be a long of about $20 million, but the holi- that,” Sutherland said. winter otherwise.” 20141208-NEWS--0020-NAT-CCI-CD_-- 12/5/2014 10:45 AM Page 1

Page 20 CRAIN’S DETROIT BUSINESS December 8, 2014

Monthly China WHERE MICHIGAN DOES BUSINESS

Top executives: Greg Brown, managing di- Belfor Holdings Inc. hina is the world’s second-largest economy with Each World Watch features rector of NSF China and managing director of Based: Birmingham a 2013 GDP of $9.33 trillion. Its major exports in- a different country. If you NSF Global Seafood Operations: Offices in Shanghai and Dong- C clude electrical machinery such as data process- know of a Michigan company guan ing equipment, as well as apparel, phone equipment, that exports, manufactures Employees: 20 textiles and integrated circuits, according to the CIA Penske Automotive Group abroad or has facilities Products/services: Commercial and industri- World Factbook. Its major export partners are Hong abroad, email Jennette Smith, Based: Bloomfield Hills al fire, smoke and water restoration services, Kong (17.4 percent), the U.S. (16.7 percent), Japan (6.8 managing editor, at Operations: Headquarters in Shanghai; lo- data recovery, mold remediation, electronics percent) and South Korea (4.1 percent). [email protected]. gistics facilities in Shanghai, Suzhou, and machinery restoration Crain’s reported in November that China ranks Yanzhou, Langfang and Tianjin Top executives: Tommy Kang, greater China third in Michigan’s export markets with almost $4.1 Employees: 100 regional director; Richard Chang, China oper- billion in exports to China in 2013 — a 28 percent in- COMING UP Services: Distribution center, transporta- ations manager crease from $3.3 billion in 2012. This makes Michigan the eighth-largest U.S. exporter to China, according to January: South Korea tion and industrial logistics management, research by the Michigan Economic Development Corp. customs clearance Top executive: Angela Yang, managing direc- Top executive: Felix Cheng, vice president Operations: Headquarters in Shanghai, seat- tor and general manager for China and Korea; ing operations in Changchun, Changshu, Clients: Allison Transmission, Pirelli, Landsberg Keith Power, president of Asia Pacific Federal- Chongqing, Liuzhou, Nanjing, Rui’an, Shang- Orora, TRW Automotive, Carlisle, Master Lock, Mogul Motorparts hai, Shenyang, Wuhan and Wuhu; electrical Nissens, Hilti operations in Chongqing, Nanjing, General Motors Co. Wuhan and Yangzhou Based: Detroit Employees: 11,000 Beijing Operations: Headquarters and two technical Products/services: centers in Shanghai, and 20 plants across the Seating and electrical country structures and mecha- Grand Rapids-based Bissell employs 100 in China. Employees: 58,000 nisms, seat covers, Products: Buick, Cadillac, Chevrolet, Bao- seat foam, wiring har- Bissell jun, Wuling and Jiefang vehicles and automo- nesses, terminals, con- CHINA tive products nectors, junction box- Nanjing Shanghai Based: Grand Rapids Top executive: Matt Tsien, GM executive es and electronic Chongqing Wuhan Wuhu Operations: Regional headquarters in Hong vice president and president of GM China control modules. Kong, marketing and sales offices, two tech Guangzhou Top executive: Jay centers for global product development and Kunkel, president of engineering in Shenzhen and Suzhou Asia Pacific opera- Employees: 100 Hong Kong tions Products/services: Floor care devices and Clients: Audi, BMW, consumer products, global hard surface prod- Ford, General Motors, ucts plus product testing Hyundai, Nissan, Volkswagen Top executive: Paul Voets, vice president of global operations TI Automotive Ltd. Metaldyne Based: Auburn Hills Cooper-Standard Automotive Inc. Based: Plymouth Operations: Plants in Changchun, Operations: Plant in Suzhou Guangzhou, Haikou, Chongqing, Qinhuang- Based: Novi Employees: 315 dao, Shanghai, Shenyang, Tianjin, Wuhan Operations: Facilities in Changchun, Products/services: Forged and machine en- Employees: 3,374 Chongqing, Guangzhou, Huai-an, Jingzhou, General Motors’ headquarters in Shanghai gine connecting rods, forged powertrain gears Products/services: Gasoline direct injection Kunshan, Qinpu, Shanghai, Shenyang, Wuhu and shafts, engine crankshaft dampers, trans- lines, GDI rails, turbo charger lines, brake Employees: 3,854 mission valve bodies and fuel lines, engine lines, transmission Products: Sealing and trim systems, fuel and International Automotive Top executive: Jose Miranda, general manag- lines, quick connectors, fuel tank assemblies, break delivery systems, fluid transfer sys- Components Group er, Metaldyne Suzhou AC lines, water lines tems and anti-vibration systems Based: Southfield Clients: CAF (Ford joint venture, Top executives: Plant managers Alex Feng; Top executive: Song Min Lee, president, Asia Operations: Asia headquarters in Shanghai; Chongqing), CFME (Ford Mazda joint venture, Yan Jun Gao; Geoffrey Qian; Black Guan; Pacific Nanjing), DPCA (PSA joint venture, Wuhan), Gaofeng Qian; Johnny (Zhe Ning) Zhao; Clients: AutoAlliance, BAIC, BMW, Changan 13 manufacturing facilities, design, technical, Cummins NA, Shanghai GM, Sinotruk, Nexteer James (Jianshen) Bao; Max Li; Chi Ma Ford Mazda, Chery, Daimler AG, Dongfeng Peu- and commercial centers along the east coast Clients: FAW-Volkswagen, BMW, Brilliance geot Citroen Automobile, Ford, Geely, General Mo- of the country Auto, Kautex, Nissan, Toyota, Audi AG, Shanghai- tors, Mazda, Mercedes-Benz, Nanjing Tata, Nis- Employees: 2,300 MSX International Inc. Volkswagen, Changan Ford, Changan Mazda, Li- san-Renault, Opel, Shanghai Automobile Import Products: Vehicle interior components and Based: Detroit Fan, DFL-Nissan, Geely, Dongfeng Nissan Motor, and Export Co., Volkswagen systems, headliner and overhead systems, in- strument panels, consoles and cockpits, floor- Operations: Headquarters in Shanghai Daimler China, Great Wall Motor, BAIC (Beijing ing and acoustics and door panels Employees: 100 Automotive Industry Holdings Co.), BBAC (Beijing Domino’s Pizza Inc. Top executive: Brian Pour, vice president of Products/services: Parts and accessories Benz Automotive Co. Ltd.) Based: Ann Arbor north Asia sales programs, dealer standards and process Operations: 35 stores in Shanghai and 22 improvements, training, body shop and ex- TRW Automotive Holdings Corp. stores in Beijing press service upgrading and services to vehi- Kelly Services Based: Livonia Employees: 1,200 cle manufacturers and dealer networks Operations: 20 facilities including headquar- Products: Pizza and other food products de- Based: Troy Top executive: Stuart Faid, managing direc- ters in Shanghai, technical center in Anting veloped for regional markets. Operations: Offices in Shanghai, Beijing, tor for China region and winter test track in Heihe Top executive: Doug DeBoer, president and Guangzhou, Chengdu, Suzhou Clients: BMW, Jaguar Land Rover, Ford, Infiniti, Employees: 9,000 CEO Employees: 70 Volvo, Fujian Benz, Mercedes-Benz, John Deere Products/services: Recruitment process out- Products: Braking, steering, airbags, seat- sourcing, outsourcing, consulting, profession- belts, steering wheels, aftermarket compo- Federal-Mogul Corp. al and technical services NSF International nents, engineered fasteners and engine com- ponents Based: Southfield Top executives: Nathan Li, chief administra- Based: Ann Arbor Top executive: Mark Stewart, vice president Operations: Plants in Dalian, Zhengsheng, tion officer and CFO for North Asia; Natalia Operations: One office and a laboratory in Asia-Pacific Changshu, Nanchang, Shanghai, Qingdao, Shuman, senior vice president and general Shanghai Clients: Toyota, FAW VW, GM, Shanghai VW, Anqing, Changsha, Chongqing, and Shanghai manager for Europe, Middle East, Africa, Employees: 49 Ford, Isuzu, Suzuki, Chery, Beijing Benz, Bril- technical center and sales office Asia Pacific and COO for North Asia Services: Auditing, testing, certification and liance Employees: 5,500 training services to consumer products, food, More information: 19 percent of global TRW Products: Engine bearings and materials, agriculture, health science, plastics, bottled Lear Corp. sales in 2013 were in the Asia Pacific region. rings, sealing, ignition, cylinder liners, valve water, retail, management systems and water seats and guides Based: Southfield industries — Compiled by Natalie Broda 20141208-NEWS--0021-NAT-CCI-CD_-- 12/5/2014 10:46 AM Page 1

December 8, 2014 CRAIN’S DETROIT BUSINESS Page 21 Web-based tools help courts, government cut costs

BY CHAD HALCOM in terms of the organization of the tion digital document manage- CRAIN’S DETROIT BUSINESS courts, while other states’ courts ment platform in the Lenawee are much more centrally man- Michigan has also been very County prosecutor’s office. Michigan’s courts and related aged. In those states it’s easier to “ JusticeTech is also expected to government agencies could motivated in pushing these roll out a statewide filing services launch in the Macomb County shave tens of thousands of program,” Bade said. prosecutor’s office next year, and hours in operating costs next customer service-friendly “But Michigan has also been Monroe County has used the ser- year with Web-based tools now very motivated in pushing these advances. vice since 2011. An ImageSoft case in testing by IT service vendors customer-service friendly ad- ” study estimates the Ingham Coun- for possible statewide use. vances.” Scott Bade, ImageSoft ty prosecutor has saved about Last week the State Court Ad- ImageSoft, which previously $450,000 per year in labor costs ministrative Office wrapped up a has launched TrueFiling elec- either online or internal software Bade said. with the system. two-month pilot program for tronic filing platforms in Ma- services to more than 20 courts ImageSoft also announced last Chad Halcom: (313) 446-6796, Garnishment of Income Taxes, comb, Ottawa, Grand Traverse statewide since landing its first month it had secured a new con- [email protected]. Twitter: or GarnIT, an online software and other counties, has provided Michigan court contract in 2002, tract for its JusticeTech Prosecu- @chadhalcom tool to automate the business process for issuing writs to gar- nish individual income tax re- funds to satisfy court judgments or other balances through the 36th District Court in Detroit. The online tool allowed the court to process 6,954 writs through Nov. 30, saving about 175 hours of processing time “ HOW CAN DTE ENERGY compared with processing writs by hand during the two-month period, the Administrative Of- HELP MY BUSINESS SAVE?” fice estimates. More local courts could take part in the second phase of Gar- Each business is different, so DTE Energy offers an online Interactive Business tool which nIT when the program re- lets you get information tailored to your specific business environment. From grocery launches in August. IBM Global Business Services, which has stores to warehouses, you’ll find tips, incentives, rebates and more that will help you been operating GarnIT for the reduce your energy use. We also provide a number of other online tools to help our Detroit court, also has been meeting with officials in two business customers use less energy and save more money. other local courts who could be potential users in the second phase next year, to discuss court needs and help in soft- ware design, IBM project man- ager Joseph Magyar told DTE wants to help you save, so get started at Crain’s via email. dteenergy.com/interactivebusiness If GarnIT’s bulk online filing feature is eventually adopted statewide, the state court office estimates it could take less than 65 hours to process the 635,000 garnishment requests brought annually to the Michi- gan Department of Treasury, trimming more than 15,000 hours of court staff time. Also last week, Southfield- based ImageSoft Inc. on Monday held a soft launch of its TrueFil- ing online software platform un- der a new pilot program for the Michigan Supreme Court. The high court, which previously has accepted document filings by hand at its Lansing offices, now accepts electronic filing for existing court cases only from the State Appellate Defender Of- fice, the Wayne County Prosecu- tor’s office and the Attorney General under the pilot pro- gram, said ImageSoft President Scott Bade. If all goes well, the new pro- gram would be expanded by next year to allow e-filing from all attorneys and new cases. Bade said ImageSoft also hopes to take over e-filing for the Michigan Court of Appeals, which currently provides e-fil- Start saving today visit: ing by contract with Texas- dteenergy.com/interactivebusiness based Tyler Technologies Inc. “Michigan has a very distrib- uted, more autonomous model 20141208-NEWS--0022-NAT-CCI-CD_-- 12/5/2014 11:47 AM Page 1

Page 22 CRAIN’S DETROIT BUSINESS December 8, 2014 American Laser Skincare files for Chapter 7 bankruptcy State Senate

Farmington Hills-based Ameri- all of our clinics have been ployees were notified of the clo- Macomb, Ann Arbor, Dearborn can Laser Skincare LLC has filed for closed,” the company said on its sure Nov. 14 when CEO John Har- and Plymouth. The company also rejects bill for creditor protection in Delaware website. “We too are disappointed low told them the company was operated clinics in Grand Rapids, bankruptcy court so it can liqui- in the sudden developments and closing because a key investor Grand Blanc and Okemos. date its assets. regret the impact that it is having pulled out. In 2011, American Laser Centers, the The provider of laser hair re- on our loyal clients, valued em- The company is trying to locate previous company name, filed for new McLaren moval and skin-care services list- ployees and business partners.” alternative providers for clients bankruptcy, closed 50 centers and ed assets of less than $50,000 and No reason was given for the filing. who have treatment packages that reopened as American Laser Skin- debt of more than $100 million in Crain’s reported last month that haven’t been completed and have care. At the time, Philadelphia- Chapter 7 documents filed last American Laser closed its 100 clin- asked them to check the website based private equity firm Versa Capi- hospital week in U.S. Bankruptcy Court in ics, including 11 in Southeast for developments. tal Management bought the company Wilmington, Del. Michigan. American Laser had local loca- for an undisclosed amount. “We are sorry to announce that Sources told Crain’s that em- tions in Troy, Royal Oak, Novi, — Bloomberg News BY JAY GREENE CRAIN’S DETROIT BUSINESS

In what may be the last option for TheThe Flint-based McLaren Health Care to get a new hospital built in Indepen- dence Township, the Michigan Sen- ate last week voted down a bill 26-11 LENDING pushed heavily by Majority Leader a helping hand Randy Richardville, R-Monroe. GO TO McLaren wants to transfer 200 from one entrepreneur beds from its half-filled McLaren to another. Oakland hospital in Pontiac to a advisors for new $303 million hospital on 80- acre tract it owns and where it op- erates the McLaren Health Care Vil- Michigan businesses. lage at Clarkston. Located at off I-75 at 5701 Bow Pointe Drive, McLaren Health Care Village plans include senior hous- ing, assisted living, restaurants, banking, retail and joint ventures Mike Semanco with medical device manufacturers President and COO and pharmaceutical companies. McDonald Hopkins PLC In an editorial board meeting 
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#FBDI ȈȀ inancin‰ HitachiBusinessFinance.com the McLaren Health Care Village. mcdonaldhopkins.com Carl J. Grassi, President (248) 658-1100 Ȉine• of re†it “We put a lot into this, especial- ly the last several weeks,” Greg Lane, McLaren’s chief administra- tive officer, told Crain’s on Dec. 4. “We need a breather.” Lane said McLaren had been waiting on a final decision on the future of the hospital before mov- ing forward on adding new ser- vices at the Clarkston facility. “There is still a need for a hospi- tal out in Clarkston,” he said. “There will be a hospital out there one day.” In support of a new hospital, McLaren has argued that popula- tion growth in the region supports the need for a new hospital. Hun- dreds of construction and health care jobs would be created, it said. But hospital competitors and the Economic Alliance for Michigan No jump’s too big said another hospital would in- when yo crease health care costs for pa- ur partn tients and employers. with the # er “Lawmakers in Michigan have 1 M&A Al done the right thing by not allow- l-Star. ing this bill to pass,” stated Bret Jackson, president of the Econom- ic Alliance. “We thank them for Buying or selling a business can seem caring about health care cost con- like the rational next step for growth – or your exit plan. tainment for the state. A ninth hos- pital in an area with too few of pa- But taking that step can be a huge leap of faith into the unknown. tients would have caused significant financial stress to the Too much is at stake for you to risk a free-fall. Ranked first among all U.S. M&A firms health care industry.” by INSIDE Public Accounting, Doeren Mayhew helps determine a deal’s fitness for McLaren wanted similar treat- ment to that provided by the Legis- flight and brings the parties together as one high-performing group while maximizing lature in 2002 when it allowed new your dollars. hospitals to be built by Henry Ford Health System and St. John Provi- So, before you jump at the next opportunity to join forces, we invite you dence Health System in Oakland County. to see how we’ve packed the parachute for other clients’ successful Last December, McLaren lost an mergers and acquisitions. administrative appeal to build the

® $303 million hospital when Circuit Insight. Oversight. Foresight. Judge Colleen O’Brien of Oakland County ruled against the 12-hospi- 248.244.3000 tal system. McLaren then appealed doeren.com to the Michigan Supreme Court, which has yet to rule on the issue. 20141208-NEWS--0023-NAT-CCI-CD_-- 12/5/2014 10:47 AM Page 1

December 8, 2014 CRAIN’S DETROIT BUSINESS Page 23 1HHGDQ,QYHVWPHQW PEOPLE 5HDO(VWDWH/RDQ" FINANCE ical officer, Atterocor Inc., Ann Arbor, from vice president, clinical develop- Mara Bloink to assistant vice presi- ment, Shionogi Inc., Florham Park, dent, branch manager, Huron Valley IN THE SPOTLIGHT N.J. State Bank, Milford, from assistant Diversified Chemical Technologies vice president, branch manager, In- Maureen Murphy to director of field Inc. has named care management clinicians for the dependent Bank, Peter Holmes High Intensity Care Management mod- Livonia. as CEO. Leanne Osterha- el, MedNetOne Health Solutions, Oak- gen to workplace land Township, from clinical supervi- Holmes, who banking market sor for the Children’s Health Project of has 28 years of manager for De- Detroit Mobile Medical Unit, Henry experience in troit and South- Ford Health System, Detroit. the chemical east Michigan, industry, first PNC Bank, Troy, HOSPITALITY joined the from senior busi- Michael Kornacki to director of opera- Detroit-based ness development tions, Detroit Marriott Renaissance company in officer in work- Center, Detroit, from director of opera- Holmes August 2013 as place banking. Osterhagen tions, Renaissance Cleveland Hotel, COO. Before that, he worked with Cleveland, Ohio. Rohm & Haas, Dow Chemical Co. and Celanese Corp. INSURANCE Holmes, 55, succeeds George Hill, &DOOXV Jeffrey Trees to who will remain chairman of DCT Inc. vice president /RDQDPRXQWVDQGDERYH of infrastructure, Holmes earned a bachelor’s degree Amerisure Mutual in chemistry from Virginia Tech $GGLWLRQDODYDLODEOHORDQV Insurance Co., University and a doctorate from Farmington Hills, Howard University, and completed ‡6%$86'$/RDQV from assistant his executive education at the ‡2ZQHU2FFXSLHG5HDO(VWDWH vice president of University of Pennsylvania’s ‡/LQHVRI&UHGLW information tech- Trees Wharton School of Business. ‡$FFRXQWV5HFHLYDEOH Froimson Walters nology. ‡(TXLSPHQW Grosse Pointe Park. HEALTH CARE MARKETING ‡%DQN:RUNRXWV Mark Froimson, M.D., to executive Greg Heist to chief RETAIL vice president, chief clinical officer, innovation officer, David Van Elslander to senior vice Trinity Health, Livonia, from presi- Gongos Inc., president and president of Art Van dent and orthopedic surgeon, Euclid Auburn Hills, Hospital, a Cleveland Clinic hospital, from vice presi- PureSleep, Art Van Furniture Inc., Euclid, Ohio. Also, Barbara Walters, dent, strategy and Warren, from vice president of mer- D.O., to executive vice president, innovation. chandising for Art Van PureSleep. chief population health officer, from chief medical officer, OneCare Ver- NONPROFITS Heist TECHNOLOGY  mont Accountable Care Organization ZZZHFOLSVHFDSLWDOJURXSFRP LLC, Colchester, Vt., and executive Mary Kummer Naber to president and Jim Brown to partner and director of medical director, Dartmouth-Hitch- CEO, The Center for Senior Indepen- sales and marketing, C/D/H, Detroit, 2UFKDUG/DNH5G6\OYDQ/DNH0, cock Health, Bedford, N.H. dence, Detroit, from president, MKN- from president, Coil Group Inc., ³6LQFH´ Pharis Mohideen, M.D., to chief med- aber Leadership Consulting LLC, Rochester.

BUSINESS DIARY ACQUISITIONS/MERGERS Agree Realty Corp., Farmington Hills, acquired 22 retail net lease properties for approximately $19.5 million. They include a 14-property AutoZone port- folio with stores in Alabama, Florida, Louisiana, Mississippi, South Caroli- na and Tennessee; a seven-property Sonic restaurant portfolio in Vir- ginia; and a Dollar General Market store in Red Bay, Ala. CONTRACTS Aqaba Technologies Inc., Sterling Heights, a Google-certified agency, has contracted with Adco Circuits Inc., Rochester Hills, to create a mo- bile friendly website, search engine optimization and pay-per-click Google Trusted Business advertising. Hirschmann Solutions, Auburn Hills, a supplier of antenna and transceiver systems for machine-to-machine and automotive communications, and Novotech Technologies, Ottawa, On- FindBusinessesYouCanTrust tario, a global distributor of M2M products and services, announced a www.bbb.org/detroit distribution agreement for Iridium antennae that allow satellite commu- nications worldwide. NEW SERVICES Western Michigan University, Kala- mazoo, will offer classes from its psy- Businesses: chology-behavior analysis master’s Whentheysearch,willtheyĮndyou? program starting in January at the Macomb University Center at Ma- comb Community College, Clinton BecomeaBBBAccreditedBusiness Township.  Quizzle LLC, Detroit, the free credit re- Email:[email protected] port and score site, introduced a new identity theft protection service for Call:248.356.5085 Quizzle users that includes public records monitoring, lost wallet pro- Visit:www.bit.ly/applyBBB tection and $1 million identity theft insurance policy. 20141208-NEWS--0024-NAT-CCI-CD_-- 12/5/2014 10:49 AM Page 1

Page 24 CRAIN’S DETROIT BUSINESS December 8, 2014

CALENDAR Holiday in the D. 6-10 p.m. Adcrafters. chairman, CEO and president of PG&E 11:30 a.m.-1:30 p.m. Jan. 8. With ing: Tips to Get WEDNESDAY Holiday networking and a benefit for Corp. Westin Book Cadillac Detroit. Michael Finney, president and CEO, Started. 11 a.m.-1 DEC. 10 Bottomless Toy Chest. MotorCity $45 DEC members, $55 guests of mem- Michigan Economic Development p.m. Jan. 15. Au- Casino Sound Board, Detroit. $80. bers, $75 others. Ticket sales end noon Corp., and Rodrick Miller, president tomation Alley. State of the Region/Annual Meeting. Walk-ins accepted. Contact: (313) 872- Dec. 10. Contact: (313) 963-8547; and CEO, Detroit Economic Growth Noel Nevshehir, 5 p.m. Detroit Regional Chamber. The 7850; email: [email protected]; web- email: [email protected]; website: Corp. MotorCity Casino Hotel De- director of inter- chamber discusses an analysis of site: adcraft.org. econclub.org. troit. $45 DEC members, $55 guests of national business business and economy trends. Westin members, $75 others. Contact: (313) Book Cadillac Detroit. For members, services, Automa- 963-8547; email: [email protected]; tion Alley, is $25 in advance or $40 walk-ins; other- website: econclub.org. wise, cost is $595 and includes mem- THURSDAY UPCOMING EVENTS keynote speaker. bership. Contact: Janelle Arbuckle, DEC. 11 Morning Mingle. 8-10 a.m. Dec. 16. 13th Annual NAIAS Breakfast. 7:30- Southfield Public (313) 596-0340; email: jarbuckle@ Detroit Regional Chamber. Members 9:30 a.m. Jan. 15. Nevshehir Library. $10 in detroitchamber.com; website: Detroit Economic Club Presents. 11:30 networking event. Detroit Athletic Inforum. Keynote advance, $20 at the door. Preregistra- detroitchamber.com/events. a.m.-1:30 p.m. With Anthony Earley Jr., Club. Free for members, $585 for fu- speaker is Wern- tion closes end-of-day Jan. 13. Con- ture members. Contact Maggie Old- er Struth, board tact: (800) 427-5100; email: info@au- enburg, (313) 596-0482; email: molden member, Robert tomationalley.com; website: [email protected]; website: Bosch GmbH. automationalley.com. detroitchamber.com/events. Michelle Krebs, 2015 Macomb Economic Forecast & senior analyst for Detroit Economic Club Presents. 11:30 Luncheon. 11:30 a.m.-1:30 p.m. Jan. 16. a.m.-1:30 p.m. Dec. 16. With Lily Es- AutoTrader.com, Chamber Alliance of Macomb Coun- kelsen Garcia, president of the National leads a discus- ty. Jim Jacobs, Macomb Community Education Association. MotorCity Casi- sion with Struth; College president. Andiamo Banquet no Hotel, Detroit. $45 DEC members, Connelly Sheryl Connelly, Center, Warren. $35 chamber mem- $55 guests of members, $75 others. Con- manager for global consumer trends bers, $45 nonmembers. Contact: Bri- tact: (313) 963-8547; email: info@ and futurist for Ford Motor Co.; and ana Koehn, (586) 731-5400, ext. 11; econclub.org; website: econclub.org. Suzanne Dickerson, director for in- email: [email protected]; website: ternational business development 2014 Excellence in Southfield shrcci.com. and marketing at Clemson Awards. 7:30-9 a.m. Dec. 19. South- 2015 AutoGlow. 4:30 p.m-1 a.m. Jan. University’s International Center for field Area Cham- 16. Ford Motor Co. Fundraiser bene- Automotive Research. Detroit Mar- ber of Commerce fits the Children’s Center; the theme is riott Renaissance Center. $40 Info- and the city of “The Future Starts Here.” Ford Field, rum members, $55 nonmembers, $25 Southfield. Kim Detroit. $275 through Dec. 15, or $325 students. Contact: (877) 633-3500. Yost, CEO, Art beginning Dec. 16. Contact: (313) 262- Register at inforummichigan.org. Van Furniture, is 7123; email: autoglow@thechildrens guest speaker at Multicultural Media Luncheon. 11 a.m.- center.com; website: thechildrenscen this awards 2 p.m. Jan. 15. The Ajamu Group LLC. ter.com/autoglow. breakfast. Hilton Keith Clinkscales, CEO of Revolt Me- Open City: Be the Change. 6-8 p.m. Garden Inn dia & TV, emcees this awards program Jan. 19. Build Institute. A panel dis- Southfield. $25 and speaks on brand reinvention. cusses social entrepreneurship in De- Yost members, $35 Westin Book Cadillac Detroit. $75 gen- troit. Cliff Bell’s, Detroit. Free. Con- nonmembers. Contact: Tanya eral admission, $150 VIP. Contact: tact: Muna Danish, (313) 318-1328; Markos-Vanno, (248) 557-6661; email: Cheryl Ajamu, (248) 223-0904; email: email: [email protected]; web- [email protected]; web- [email protected]; web- site: buildinstitute.org. site: southfieldchamber.com. site: ajamugroup.com. Breakfast of Champions. 7:30-9 a.m. Detroit Economic Club Presents. Grow Your Business Through Export- Jan. 21. Leadership Oakland. Kent Snyder, financial adviser, Kent Finan- cial Group, discusses “The Economics of Happiness.” MSU Management Ed- ucation Center, Troy. $25 members, $36 nonmembers. Contact: (248) 952- 6880; email: info@leadership oakland.com; website: leadership oakland.com. Detroit Economic Club Presents. 11:30 a.m.-1:30 p.m. Jan. 28. With Mike Pet- ters, president and CEO, Huntington Ingalls Industries. Westin Book Cadil- lac Detroit. $45 DEC members, $55 guests of members, $75 others. Con- Rehmann advisors have tact: (313) 963-8547; email: info@ econclub.org; website: econclub.org. hands-on, practical experience Breakfast of Champions. 7:30-9 a.m. Feb. 18. Leadership Oakland. Jen- in the industries they serve. nifer Korman, community relations, Mercedes-Benz Financial Services, moderates a panel of young profes- MIKE POWELLELL Manufacturing, financial institutions, sionals who will talk about what it Principal means to be a leader. MSU Manage- dealerships … and more. We’re effective ment Education Center, Troy. at serving our clients because we share $25 members, $36 nonmembers. Con- tact: (248) 952-6880; email: info@ common industry perspectives. In leadershipoakland.com; website: today’s competitive business world, that leadershipoakland.com. understanding can translate into the edge you need to top next year’s lists. CALENDAR GUIDELINES CHRISTINE SING If you want to ensure listing online Principal and be considered for print publication in Crain’s Detroit Business, please use the online calendar listings section of www.crainsdetroit.com. Here’s DON BURKE how to submit your events: Principal From the Crain’s home page, click “Detroit Events” in the red bar CAROL WRIGHTGHT near the top of the page. Then, To learn more about Rehmann advisors and their click “Submit Your Entries” from Principal industry experience, visit rehmann.com/perspectives. the drop-down menu that will appear and you’ll be taken to our online submission form. Fill out the form as instructed, and then click the “Submit event” button at CPAs & Consultants Wealth Advisors Corporate Investigators the bottom of the page. That’s all there is to it. rehmann.com | 866.799.9580 More Calendar items can be found on the Web at www.crainsdetroit.com. 20141208-NEWS--0025-NAT-CCI-CD_-- 12/5/2014 11:01 AM Page 1

December 8, 2014 CRAIN’S DETROIT BUSINESS Page 25 Arctaris fund ‘planting the flag’ for media company in Detroit

BY TOM HENDERSON based in Grosse Pointe Farms, is a want us to loan you money to open CRAIN’S DETROIT BUSINESS subsidiary of Boston-based Arctaris up in a bankrupt city?’ Capital Partners LLC. In October 2013, We built a relationship. We had a couple “This made sense for us. It’s a Arctaris Michigan Partners LLC has Arctaris Capital announced it had “ very profitable media company made the first investment from its launched a Michigan operation and of options for funding our growth, but with verifiable equity value.” new private equity fund, $2.25 mil- was raising what it hoped would be According to Martin, Moguldom lion, in Moguldom Media Group LLC, a a fund of at least $150 million, the Arctaris is committed to minority has more than 29 million unique fast-growing black-owned media Michigan Income and Principal- visitors for its various websites, company based in Fort Lauderdale, Protected Growth Fund LP. entrepreneurship in Detroit. more than 391 million page views a Fla., that opened an office in down- In 2009, Arc- ” month and 135 million mobile page town Detroit last month to house taris Capital Jamarlin Martin, Moguldom Media Group views a month. The company’s its documentary film division. first made news Tower said other investors in the board of advisers. nine websites have 1.5 million fol- “Planting the flag in Detroit, here when it Michigan fund include Pittsburgh- “We built a relationship,” said lowers on Facebook and Twitter, with its big automotive brands, was arranged fund- based PNC Financial Services Group Martin. “We had a couple of op- and its seven YouTube channels, really important ing for New Cen- Inc., Troy-based Flagstar Bancorp tions for funding our growth, but which produce more than 20 videos for us,” said Ja- ter Stamping on Inc., Farmington Hills-based Level Arctaris is committed to minority a week, have had 28 million views. marlin Martin, Milwaukee Moguldom Me- One Bancorp Inc., Southfield-based entrepreneurship in Detroit.” Websites include Mommynoire, a Street in Mid- Meadowbrook Insurance Group Inc., “Jimarlin has a strong entrepre- dia’s founder town. site about parenting; Madamnoire, and CEO. Grosse Pointe-based Robinson Capi- neurial spirit and has been com- a lifestyle site for black women; According to tal LLC and Michigan foundations. pletely bootstrapped,” Tower said. In October, Tower Jonathan Tow- AFKTravel, a site about African Tower said Arctaris will invest “He hasn’t raised any outside capi- Inc. magazine er, managing partner of Arctaris tourism; and HipHopWired, about another $1 million in Moguldom tal since he launched the company ranked Mogul- Michigan, paperwork for the sec- the music and entertainment indus- Media by the end of the year, pend- seven years ago by buying a do- dom Media ond investment from the Michigan tries. ing state approval, which is ex- main name for $7. Group the 14th fund will be done soon, for Sader The company has more than 100 Martin pected to be a formality. “Jamarlin fits our model of re- fastest-growing employees in offices in New York Power Enterprises Michigan LLC, a placing traditional bank financing company of the 100 fastest-grow- Arctaris’ funding is in the form City, Los Angeles, Atlanta, Fort subsidiary of Sader Power LLC of for companies. He’s got the No. 1 ing media companies in the U.S. of loans and often in conjunction Lauderdale, Johannesburg and Lon- New Orleans that plans to hire 220 digital media company focused on and No. 882 on its list of 5,000 with equity funding from other don. full-time employees in Pontiac to the African-American demograph- fastest-growing companies across sources. Tower said that portfolio manufacture racking systems for ic. He’s got more clicks and more The movie division will release industries. companies must have minimum rooftop solar panels. unique visitors than all the other 12 titles this year. The first, “A Ge- Moguldom has a three-year revenue of $10 million and a mini- Tower said Arctaris has com- African-American websites com- nius Leaves the Hood: The Unau- growth rate of 510 percent and 2013 mum of $1 million in EBITDA mitted to a first round of funding bined,” said Tower. thorized Story of Jay-Z,” has sold revenue of $15.4 million. (earnings before interest, taxes, of $4.8 million in Sader and expects “But Michigan banks were say- almost 10,000 units since its launch Moguldom Films LLC has hired depreciation and amortization). to fund a total of $9.5 million for ing, ‘You’re a profitable minority- in March. five of the 20 employees it plans for Martin said Moguldom has what the company, both from the Michi- owned business and you can’t get a Tom Henderson: (313) 446-0337, the Detroit office in Harmonie he described as “a vanilla banking gan fund and from the Boston- loan from a New York bank?’ And [email protected]. Twitter: Park and has hired five temporary and lending relationship” with City based Arctaris Income Fund LP. New York banks were saying, ‘You @tomhenderson2 employees, including a director, Arctaris had a first close on the National Bank in New York, but that production manager and camera Michigan fund of $22.5 million last traditional bank funding was un- operators, to work on a documen- year, including $4.5 million from available for his expansion plans tary on police brutality that began the Michigan Strategic Fund of the into Detroit and Johannesburg, REAL MARKET shooting locally a month ago. It Michigan Economic Development Corp. South Africa, despite his compa- has a budget of $200,000 and has yet In August, it had a second close ny’s continued rapid growth. to be given a title, said Martin. of $20 million and has $85 million He said he had been introduced ESTATE PLACE Martin said the company will in- committed for a third close, if the to Tower in 2010 by an investment vest up to $3 million in a film. state approves another $15 million banker in Silicon Valley. Tower DEVELOPMENT PROPERTY BUSINESS OPPORTUNITIES Arctaris Michigan Partners, in matching money. eventually joined Moguldom’s û DOWNTOWN FARMINGTON û û OAKLAND COUNTY û Development Opportunity SPORTS TAVERN Land 0.38 acres, high-density res project preferred Restaurant, Party Room, Game Room, Chairty Accepting proposals through 2/9/2015 Poker, seats 550, gross sale $2,555,896, nets $350,000 includes 22,000 Sq. Ft. Building on 2+ For complete details go to: acres. Asking $3 Million, completely remodeled. Injured worker can seek benefits under www.DowntownFarmington.org Owner Retiring. 248-473-7276 For more information call 586-469-3333 auto insurance, Michigan high court rules ANNOUNCEMENTS or email [email protected] û OWNER’S û û REPRESENTATION û JOB BY SHEENA HARRISON employee of All Star, and that company if they do not maintain a Administration of contract between Owner CRAIN NEWS SERVICE workers’ comp was the exclusive separate business in relation to and Contractor on behalf of the owner. remedy for his injuries, according the work they’re performing, if Represent owner’s interest in every facet FRONT Injured workers in Michigan to court records. But Derry argued they do not offer that service to the of design, construction and administration. are employees of a company, that he was an independent con- public and if they are not an em- Residential or Commercial. Over 30 yrs. MANAGEMENT rather than independent contrac- tractor who marketed his services ployer to other workers, the high experience as Professional Engineer, tors, only if they meet three crite- Project Manager and General Contractor. to the public, and that he was enti- court said in its ruling. I can also bid out your documents. Business Development Manager - Cambridge ria under Michigan’s workers tled to coverage under Auto-Own- If a worker fails to meet one of Michigan Language Assessments (CaMLA), Ann [email protected] Arbor. Visit: www.cambridgemichigan.org for compensation law, the Michigan ers’ liability and no-fault policies. those three criteria, they should be description & to apply. No phone calls please. Supreme Court has ruled. A Macomb County circuit judge considered an independent con- POSITIONS AVAILABLE The ruling late last month agreed that Derry was an indepen- tractor, the state high court said. stemmed from a suit brought by dent contractor at the time of his Additionally, the Michigan The Crain’s reader: Joseph Derry, who was injured accident, and ruled that he was en- Court of Appeals improperly inter- 26.5% influence the while vacuuming leaves for Ster- titled to coverage under Auto- preted the state’s law because it purchase of office/industrial ling Heights-based All Star Lawn Spe- Owners’ general liability and no- found that workers must fail to and commercial space. cialists Plus Inc., court records show. fault policies, records show. meet all three criteria before they Help them find you by All Star had commercial general Auto-Owners appealed, and a can be considered independent advertising in Crain’s Real liability insurance, commercial special panel of the Michigan Court contractors, the high court ruled. Estate section. PRESIDENT no-fault automobile insurance and of Appeals found in December 2013 “Each criterion of (the statute) Capitol National Bank is located in Lansing, workers’ comp insurance with that Derry was an employee of All must be satisfied for an individual 313.446.6068 • FAX: 313.446.034 7 E-Mail: cdbclassif [email protected] MI and has an excellent opportunity to lead an Auto-Owners Insurance Co. at the Star at the time of his accident, to be considered an employee; con- established, well-capitalized community bank time of Derry’s accident. and that workers’ comp was the versely, failure to satisfy any one poised for growth and looking to build on its 30 year history of outstanding service to its Derry sued All Star and one of exclusive remedy for his injuries. of the three criteria will exclude clients! the company’s owners alleging Derry then appealed. an individual from employee sta- The President provides leadership and negligence for failing to properly In its 6-1 decision on Nov. 25, the tus,” the Michigan Supreme Court direction to ensure the short and long-term secure the leaf vacuum to a compa- Michigan Supreme Court ruled ruled in remanding the case to Ma- financial strength and stability of the Bank, grow the assets of the Bank through sound ny truck, causing it to fall and that Derry was an independent comb County. credit and lending practices, and continue the strike him. He also sued Auto- contractor and could seek benefits The Court of Appeals ruling tradition of strong staff and community Owners for no-fault benefits under under Auto-Owners’ commercial showed that Derry does not em- relationships. the auto insurance policy. liability and no-fault policies. ploy other workers, and therefore Qualified individuals are encouraged Lansing-based Auto-Owners Michigan’s workers’ comp law did not meet one of the three crite- to apply at the link below: sought a ruling that Derry was an says workers are employees of a ria. hiringsolutionsllc.com/openings/CNB_President 20141208-NEWS--0026-NAT-CCI-CD_-- 12/5/2014 1:35 PM Page 1

Page 26 CRAIN’S DETROIT BUSINESS December 8, 2014 MPSC report: Utilities need to increase tree trimming

BY JAY GREENE power outages for millions of But tree trimming, or lack there- the investigation of the December side and outside of utility rights of CRAIN’S DETROIT BUSINESS homeowners and businesses in of, is recognized by many as the ice storm — found that 40 percent way. Michigan. No. 1 reason for power outages and of the tree-related outages were The MPSC order also requires A Michigan Public Service Commis- But the MPSC indicated last the sometimes dayslong time it caused by trees growing outside of utilities to develop more detailed sion report released last week is Thursday the steps weren’t takes to restore power to some the utilities’ official right-of-way reports on the duration and fre- critical of Michigan utilities’ track enough. neighborhoods. corridors. quency of power outages and make record when it comes to tree trim- The MPSC ordered DTE and Con- The December 2013 ice storm DTE Energy already has allocat- it easier for customers to get cred- ming — a key variable affecting sumers to get more serious about that took down power for 625,000 ed more funds for tree trimming and its on utility bills when they suffer electricity reliability for state cus- trimming trees next year, especially customers and the more recent line reliability technology, and Con- losses due to outages by improving tomers. by taking out trees outside of their September high-wind storm that sumers has promised more. website applications. Officials for DTE Energy Co. and normal rights of way if the trees or turned out the lights on 462,000 One continuing challenge in However, the MPSC did not or- Consumers Energy Co. have said in limbs could fall on power lines. customers are cases in point. this area is the death of millions of der the utilities to compensate cus- interviews during the past two Spokesmen for DTE and Con- During the past year, wide- ash trees. During the past 13 years, tomers for spoiled food, purchases years that their companies have sumers have told Crain’s the com- spread power outages in Michigan thousands of ash trees have been of temporary power generators or upped the amount they have spent panies plan to fully comply with the — mostly from fallen trees and killed by the Emerald ash borer. hotel bills. State law limits the on improving electric reliability commission’s order. Improvements limbs — have taken days to repair The foreign beetle now threatens credits to a maximum of $25. for customers. That’s through tree include accelerating investments and knocked out power for more up to 700 million ash trees. A longer version of this story ap- trimming, electric line improve- on projects that will minimize out- than 2 million people. For its part, DTE has removed pears as a Jay Greene blog at ment and technologies to reduce age frequency and duration. The MPSC report — based on more than 7,000 dead ash trees in- www.crainsdetroit.com.

Huntington: Firm looks to become dominant player in industry ■ From Page 3 Huntington would not disclose Time can and will use Martiniz- time. They run their businesses the sale price other than to say it CLOTHES-MINDED ing to do their cleaning services. well and keep their profits secret. was less than $10 million. Wudyka There will be opportunities for “It’s hard to consolidate those said it was less than a private equi- In 1992, Wayne Wudyka and Jeff Snyder bought Huntington Cleaners, a Martinizing operators to acquire people,” Dubois said. “They’ve re- ty buyer would have paid, but that retail dry-cleaning shop in Huntington Woods that opened its doors in those routes and fold them in, or ally been resilient. They’ve been 1950. Since then, they have added an ever-growing collection of dry- “culture was more important than vice versa.” happy and satisfied forever.” cleaning businesses to their holdings, which are managed by another of money” to the sellers. their companies, The Huntington Co. LLC in Berkley. Lapels has 63 outlets, about half The Martinizing name will re- of which are in Massachusetts, main and the business, founded in Ⅲ Bizziebox Ⅲ Dry Cleaning Station Pressing ahead and in the past six months it has 1949, will continue to be based in Launched: 2013 Acquired: 2014 The combined direct revenue signed agreements to open 70 Milford, Ohio, until its office lease Number of franchises: 22 Number of franchises: 12 for all of the brands and entities more. The company expects to runs out in a few years, after What it does: Pickup and delivery What it does: Traditional retail dry- was about $19 million last year, open up to 500 outlets in the next which the headquarters will be- service using lockers in office and cleaning service said Wudyka, who expects this five years, and Michigan is in its come part of Huntington opera- residential buildings Ⅲ Certified Restoration Drycleaning year’s total to come in at $21 mil- sights. It plans to open 16 outlets tions in Berkley. President Kevin Ⅲ 1-800-DryClean Network lion. The companies directly em- in Southeast Michigan beginning ploy 200 people. Systemwide, the Kaeding and the existing Martiniz- Acquired: 2012 Launched: 2001 next year, having announced an ing staff will continue to run the companies had revenue of $125 agreement with a local Great Clips Number of franchises: 77 Number of franchises: 154 company, Wudyka said. million last year, employing be- hair salons franchisee last month. What it does: Restoration of textiles Martinizing What it does: Pickup and delivery tween 4,000 and 5,000 people, and The push into Michigan will be- service, mainly for residential damaged in fires, floods and other outlets are are on pace to surpass $160 mil- gin with the opening of a central customers disasters lion this year. spread across Ⅲ Ⅲ Wesch Cleaners dry-cleaning plant in West Bloom- the country, and Pressed 4 Time The Martinizing buyout should field Township in spring, followed Acquired: 2009 Michigan’s Acquired: 2014 add at least $30 million in revenue by two outlets later in the year, roughly 20 out- Number of franchises: 91 What it does: Stand-alone shop in systemwide, but Wudyka was un- probably in Bloomfield Hills and Birmingham offering high-end dry- sure because Huntington is still lets put it among What it does: Pickup and delivery cleaning service Troy or Rochester Hills. It chose the bigger mar- service, mainly for office customers sifting through the franchise the Canton-Rochester Hills arc af- Ⅲ Huntington Window Fashions kets. Hunting- Ⅲ Martinizing Dry Cleaning agreements. ter studying the demographics. Launched: 2014 ton also was at- Acquired: 2014 The national presence, com- “All those ZIP codes are great tracted to What it does: Sales and cleaning of bined with the tangled nest of dry-cleaning customers,” Dubois Dubois Number of franchises: 422 Martinizing’s custom window treatments, brands, might make some compa- said. What it does: Traditional retail dry- shutters and drapes. Based in the nies eager to form an overarching eight international outlets and the cleaning service Michigan Design Center in Troy. The sort of large, polished store- possibility of growing globally. brand, but Huntington’s not ready fronts expected of national brands Following Martinizing in the drapes, area rugs, teddy bears and said. And, as Crain’s reported last for that just yet. don’t fit well with dry cleaning op- Entrepreneur listing of dry-clean- linens. year, Huntington originally “I won’t say we plan to merge erations, either. They require lots ing franchises is Miami-based Wudyka and Snyder also own planned to fold 1-800-DryClean them all together. Each business of investment, which then re- Dryclean USA, which has 389 out- Wesch Cleaners in Birmingham into bizziebox. But it has since de- has its own definite franchisees quires drawing customers from a lets, and Arlington, Texas-based and Huntington Window Fashions in cided to keep it separate. and strengths,” Wudyka said. wide geography. This doesn’t jibe Comet Cleaners Franchise Group LLC, Troy, and the Martinizing acqui- Wudyka said bizzieboxes are “That’s not to say it couldn’t hap- with a business where conve- at 210 outlets. Huntington’s Certi- sition came with Dry Cleaning Sta- now in more than 750 buildings in pen, but it might panic the other nience is king. Dry-cleaning cus- fied Restoration Drycleaning Net- tion, a small franchise business of the country, and about 60 of those franchisees and brands.” tomers come from a tight three- work, or CRDN, holds the No. 4 12 outlets based in Columbus, buildings are in Southeast Michi- The international foothold that mile radius around the slot with its 154. Ohio. gan. came with Martinizing will be one storefronts, Dubois said. Wudyka sees the industry as Early this year, they bought Huntington takes what Wudyka area of focus in the future. The “There are only so many dry- ripe for a company to dominate at Pressed 4 Time, a pickup and deliv- calls an “inside-out” approach to company also wants to take ad- cleaning dollars in a ZIP code,” he a national level and sees his collec- ery service previously based in franchising, offering existing dry- vantage of mobile technologies. said. “The No. 1 decider is conve- tion of companies as the way to be- Boston. In 2012, they bought the 1- cleaning shop owners franchise Bizziebox and CRDN already have nience. That’s ultimately the way come that dominant player. 800-DryClean pickup and delivery services to add to their offerings. apps, and Wudyka plans to invest this industry gets consolidation.” service. So a given dry-cleaning shop also more in technology. Any would-be consolidator will Freshening the pile In 2013, Wudyka and Snyder can run a CRDN textile restora- In the meantime, the plan is to have to have good customer ser- launched bizzie, now called tion business and a bizziebox improve communications with vice, clean shops and a continuing Huntington gets its name from bizziebox, a pickup and delivery pickup and delivery business franchisees, support the brands neighborhood feel, he said. Hunt- the original dry-cleaning shop at service that uses lockers placed in from the same shop. None of the and add more stores. ington has a good shot at accom- the core of the enterprise, Hunting- apartment and office buildings. Huntington franchises has any plishing this, but, apart from the ton Cleaners Inc., which opened in Customers use PINs to drop off corporate outlets, so these fran- Change-resistant industry’s general resistance to Huntington Woods in 1950. Wudy- clothes in the lockers and later to chises always are sold to separate consolidation, it will have a diffi- ka and Snyder bought it in 1992 for pick them up. franchisees. The dry-cleaning industry has cult time untangling exclusive $265,000. In early 2013 when bizziebox Wudyka and Snyder see this ap- seen “ebbs and flows” of consoli- territory rights, Dubois said. For They have added several busi- was launching, Wudyka hoped to proach as their ticket to national dation in the past, including one example, Martinizing franchisee ness lines since. The biggest one is have up to 100 franchises by growth and had it in mind when sparked by 1-800-DryClean, but rights could clash with the rights CRDN, a franchise operation spe- year’s end. There’s only about 25 they bought Martinizing. “Every none has stuck, said Kevin of CRDN franchisees operating in cializing in cleaning textiles dam- now. Martinizing in the country should Dubois, CEO of Lapels Dry the same market. aged in fires, floods and the like. Acquisitions made around the have bizzie lockers,” Wudyka Cleaning, based in Hanover, Mass. “You have to be a good psychol- CRDN gets paid by insurance com- same time as the bizziebox launch said. Most dry cleaners are family- ogist to make that work,” Dubois panies for restoring clothes, slowed down the rollout, Wudyka “1-800-DryClean and Pressed 4 owned and have been for a long said. 20141208-NEWS--0027-NAT-CCI-CD_-- 12/5/2014 4:25 PM Page 1

December 8, 2014 CRAIN’S DETROIT BUSINESS Page 27 Accelerator: Program stresses getting customers, not just money ■ From Page 1 started developing the accelerator time, she pitched her idea of a ma- going to be our vetting company, last spring when he was appointed chine that can “mix” its own lip so they will write a report that to be AA’s director of entrepreneur- gloss on site, with more than 40,000 says how the company scales and ship. possibilities, allowing customers how they manufacture at scale. “You build a company to get cus- to customize their own shades. Bar- That way a Bosch, for example, tomers. As you get customers, ven- neys New York and other high-end can look at a new product and say, ture capital funding will come to department stores excitedly em- ‘P3 has already given me the you. Stop trying to get money and braced the technology, and in- roadmap on how to adopt this.’ ” valuing yourselves at $5 million; stalled proof-of-concept machines. For Kelly, this is a critical step just focus on the blocking and But just as things were heating that will set his 7Cs Program apart tackling of getting customers.” up, Bartholomew said, she had to from others. His focus is building Kelly is seeking 10 companies to step back and focus on raising her each business and thereby creating participate in his 7Cs Program — children. Now she’s ready to refocus stable jobs that stay in Michigan. and update her work. For example, which stands for concept, context, The effort joins that of the White those early machines could turn out community, clarity, customers, House, which announced this year capital and commercialization — one lip gloss every 11 minutes; her that a $148 million advanced man- though he’s open to more firms if new technology allows for one every ufacturing research institute is there are enough good concepts. four minutes. She is also focused on the technology so that all brands can coming to Detroit. The American The initial investment in each Lightweight Materials Manufacturing firm is $25,000, which Automation be mixed with her machines, rather than selling a line of cosmetics Innovation Institute, which is a 60- Alley is covering with funds al- member consortium that includes ready allocated to it by the Michigan unique to IMX Cosmetics. GLENN TRIEST federal agencies, universities and Economic Development Corp. Compa- “You get to make what you The first test company in Automation Alley’s new accelerator for advanced private manufacturers, will open nies are expected to pay it back want,” she said. “There is a differ- manufacturing businesses is IMX Cosmetics LLC. Founder Julie Bartholomew in a 100,000-square-foot building in within two years of completing the ence between buying something al- already has found a customer interested in installing her automated cosmetics the Corktown neighborhood. program or offer an equity stake to customization machine in department stores. ready on the shelf and being able to Automation Alley. adjust something or match some- “I wanted to focus on advanced manufacturing firms because it’s The $25,000 ensures that each say, ‘I just need money to build “I was able to get my machine out thing that is specific to your needs. our pedigree,” said Kelly. “I wanted founder gets to work with a dedi- this thing and customers will flock there and do a lot of the pieces by This millennial generation loves to focus on the trillion economy in cated CEO coach from Clawson- to it.’ No. You need the confidence myself,” said Bartholomew. “But to that; they love customization.” our back yard: advanced manufac- based PCS Insight LLC to become an to go to a customer and say, ‘If I get this last push, because the idea Of course, scaling up to a global turing. We’re building alternative effective — not just enthusiastic — build this thing, will you buy it?’ is to take the technology and build level isn’t a task to take lightly. energy and life sciences, and those leader. They will also get access to We’re going to train them to be it out globally, I honestly believe I And that’s exactly the next step on are fun, but the customers that are legal and financial consultants as good salespeople and sell some- wouldn’t be as far along as I am the 7Cs Program. Each of the firms well as work with experts from thing they haven’t yet built.” without Tom. He was instrumental involved will work with Troy- all within Southeast Michigan are Troy-based Sandler Training on how Kelly started working with his in closing the deal with my first cus- based engineering consulting firm advanced manufacturing cus- to sell to customers — not funders first test pilot company in the accel- tomer and moving beyond one ma- P3 North America Inc. to help them tomers. So if I want the company to — and complete their first sales erator, IMX Cosmetics LLC, this sum- chine here and one machine there, move beyond the first customer. build here and stay here, then I video. mer, and already company founder and looking at a global reach.” Because it’s one thing to make 10 need to build companies that are “Business owners don’t get Julie Bartholomew has secured a IMX Cosmetics already has 67 and another thing for a client to sticky and want to be here because enough training on how to be good customer interested in installing patents in 18 countries (filed under believe you can suddenly build their customers are here.” salespeople, how to land and talk her automated cosmetics cus- Cosmetic Technologies LLC) because 10,000 a month. Amy Haimerl: (313) 446-0416, to customers,” Kelly said. “One of tomization machine in department Bartholomew started the company “P3 helps companies adopt new [email protected]. Twitter: the pet peeves I have is that people stores. more than a decade ago. At the innovation,” Kelly said. “They are @haimerlad Cooley: The bar (exam) is higher as lawyers-to-be adjust to test ■ From Page 3 Specifically, the ABA requires week. “At least as to first-time tak- predictor of passing the bar be- that either the first-time taker pass PASSING PERCENTAGES ers, I think we’re starting to see cause the test is designed to gauge rate stay within the 15 percent some results on that.” likely first-year academic perfor- Percentage of total applicants passing the July bar examination: margin for three of the past five Cooley first-time takers im- mance, which in turn factors into 2010 2011 2012 2013 2014* years, or that 75 percent of all proved from 52 percent passing in overall law school performance. exam takers eventually pass. WMU Thomas M. Cooley 70% 71% 44% 44% 44% July 2012 to 53 percent passing last MSU has been working to im- As of 2012, Cooley was 15.91 per- University of Michigan 96 91 86 94 87 July and a pre-appeal 55 percent prove its recent performance in centage points below, according to Michigan State University 84 86 65 76 80 passing this summer. part by working with the Board of a report it submitted to the ABA. Wayne State University 90 76 66 72 74 Among Michigan’s other four law Law Examiners about the state cri- More recent results are not avail- University of Detroit Mercy 74 62 45 55 55 schools, the July pass rate for all teria, she said, as well as tailoring able. takers was 87 percent from University course selection and offering acad- “The overall pass rate in Michi- Percentage of first-time takers passing the summer bar examination: of Michigan, 84 percent from Michigan emic assistance to students most gan (82 percent of first-time takers WMU Thomas M. Cooley 80% 80% 52% 53% 55% State University, 81 percent from likely to take the Michigan bar. About half of all MSU law students in 2011 to 64 percent in 2012) has University of Michigan 96 94 88 97 87 Wayne State University, and 65 percent dropped precipitously, and we from the University of Detroit Mercy. are from out-of-state and likely to Michigan State University 87 89 69 82 84 know that has been a topic of dis- practice law outside Michigan af- cussion for the deans in Michigan Wayne State University 93 80 72 76 81 ter they graduate, she said, so for some time,” said Barry Currier, University of Detroit Mercy 76 66 53 63 65 Lower grades preparation is managing director of accreditation *2014 numbers are pre-appeals Cooley’s students in aggregate sometimes and legal admissions to the bar at enroll with lower grade point aver- state-specific. the ABA. Cooley, the nation’s largest law much as 4 percentage points. ages and scores on the LSAT, the “The new “If the overall pass rate in Michi- school by total enrollment with The state Board of Law Examin- law school qualifying exam. scoring change gan falls, Cooley or any other more than 2,300 students, had far ers oversees the bar examination Cooley students who first en- in July was a school would have to be evaluated and away the most applicants for twice a year, in February and July, rolled in 2013 had a median LSAT welcome as to how its drop and its scores are the latest July bar exam, at 317 of with a much larger overall turnout score of 145 — about the 26th per- change, but I do measured against state results as a the total 953 applicants; 177 of in summer because of recent grad- centile — compared with a median not yet know to whole.” them failed it. uations from law schools in the 151 for Mercy, 157 for both MSU what extent any The latest exam results are pre- spring semester. and Wayne State, and 168 at UM, Howarth relative success appeal statistics. A 30-day appeal Cooley has done better in the according to ABA reports. The of MSU has to do Review visit period that began when the board February exams. Some 60 percent 50th percentile is about 152. with that change,” she said. “But Currier said the council of the released its July results Nov. 6 ex- passed this February including 65 The median GPA for those Coo- we stress grades, because we be- Section of Legal Education and Ad- pired Dec. 6. percent of first-timers, according ley students was 2.96, compared to lieve the best predictor (of bar pas- missions to the Bar, the accredit- Timothy Raubinger, interim ex- to post-appeal data. 3.13 for UDM, 3.44 at Wayne, 3.52 at sage) is course grades. That’s true ing body for law schools, visited ecutive director of the Board of Law “The school’s faculty has adopted MSU and 3.71 at UM. for our law school, and it’s true for Cooley’s campuses in March as Examiners, told Crain’s last week a bar examination results improve- Joan Howarth, dean of the Col- any other law school I know part of an accreditation review no information was immediately ment program, and the faculty re- lege of Law at MSU, said the best about.” that takes place every seven years available on how many appeals get main actively involved in carrying overall predictor of success at the Chad Halcom: (313) 446-6796, at law schools. He would not say filed. But historically, appeals have it out,” Associate Dean of External bar is grades earned in law school, [email protected]. Twitter: whether the review is complete. been known to change results as Affairs James Robb told Crain’s last although LSAT is a more oblique @chadhalcom 20141208-NEWS--0028-NAT-CCI-CD_-- 12/5/2014 4:25 PM Page 1

Page 28 CRAIN’S DETROIT BUSINESS December 8, 2014 Dealers: Partnership allows diversification, major projects ■ From Page 3 field Township. major projects. Last week, the hicle in stock, arrange financing, planned to ease the transition for The partners also just opened a SELLERS AUTO GROUP group launched YourOnlineDeal- get a trade-in quote and agree to loyal employees used to single- fourth location up the road from Ⅲ Four locations in metro Detroit er, virtual showroom proprietary buy a vehicle. As yet, the process point operations. The company the Chevy store, the site of the software that expands the capa- doesn’t have capability for an now has about 310 workers at four Ⅲ Franchises: Chevrolet, Buick- closed Randy Hosler Buick-GMC. GMC, Subaru bilities of each dealership’s web- electronic signature. The credit locations in two counties. Coleman moved the collision shop site. application and purchase con- “The exciting part is creating a Ⅲ Monthly sales: 600-650 new there to create more service space and used With YourOnlineDealer, online tract require a physical signa- new corporate culture,” Coleman at Bowman Chevy. shoppers can continue to surf ture, but the Sellers Auto Group said. A Sellers Bowman Auto Center through inventory and store per- will mail or messenger any neces- On shared processes, the part- sification to smooth the ups and banner is lashed to the building sonnel, check hours and address- sary paperwork to the customer. ners tried to develop new meth- downs of individual brands. until the permanent signage ar- es and schedule service appoint- “We encourage buyers to at ods rather than simply impose Slaughter recalls losing 65 per- rives for the used-car center, but ments. But the new software least come to the dealership to one party’s system on everybody. inside is the large shared office cent of his volume at his then-Pon- invites visitors to click to “Buy take delivery, but if they really “Not A or B but C,” Slaughter where they jointly run their oper- tiac-GMC store in 2009 before your new car online” and engage don’t want to, we’ll deliver the said. ation. adding Buick. in a video chat with an auto car to their home or office,” The partners split most func- Both desks face the door, As a group, “we can offer cus- guide, a salaried Sellers employee Slaughter said. tions and share others. Coleman Slaughter on the left, Coleman on tomers a choice,” he said. “We can who answers questions and helps Joe Jackson, the group’s chief handles finance, accounting and the right, with a conference table refer a customer to another store customers research vehicles. marketing officer, said the new IT. Slaughter has new and used for impromptu meetings with or even bring a vehicle from an- The primary setup is a two-way system offers customers more op- sales, business development and managers. other store to the customer.” live video chat, although cus- tions. tactical advertising. They share “We depend on our general The partners have greater com- tomers can opt to not be seen by “We can communicate in per- marketing and strategic advertis- managers to run the stores day to bined marketing power to develop the employee. As an auto guide son, by phone, email, chat or two- ing. day,” Slaughter said. The part- a brand with a unified marketing conducts research, he or she can way video chat,” he said. “It’s “It’s divide and concur,” Cole- ners also have five senior man- message and to compete with oth- display results on screen for the however the customer wants.” man quipped. agers that handle used cars, busi- er groups. customer to see during the expla- “We’re trying to capture more The partners see a rapid return ness development, marketing and “And Katie and I share a philos- nation. millennial buyers,” Slaughter on their efforts. Monthly group advertising, finance and account- ophy: treat customers well, treat “We figured people already are said. “They do everything online. sales are 600 to 650, about 275 of ing, and information technology. employees well,” Slaughter said. doing research online, so why not But by going for millennials, you those used. Said Coleman: “We have a lot of let them talk to somebody who get everybody.” “Our same-store sales are up 20 talented people, and this gives can walk them through the percent this year, with used and Value of diversification them a chance to build their ca- process?” Slaughter said. “They certified used growing about the Slaughter says the partnership reers without having to go some- can use YourOnlineDealer for as ‘Divide and concur’ same rate,” Slaughter said. “And makes several things possible. where else.” much or as little as they want.” During the partnership’s long our same-store, year-over-year The partners have more diver- The partnership also allows for Online shoppers can select a ve- gestation, Slaughter and Coleman service revenue is up 30 percent.”

Skills: Highly skilled workers needed but scarce in small towns ■ From Page 1 in the region, and skilled labor is been exacerbated by an overall ty, which has a strong plastics en- “Employees won’t just stay there; essential, Macher said. manufacturing labor shortage. gineering program, is only a few they will have opportunities to see The makeup of its plant work- This is no longer a “This is not limited to a big com- hours from Freudenberg-NOK’s the rest of the world.” force is 10 line workers for every “ pany or small company and isn’t plant in Necedah, Wis., population skilled worker, but that equa- wrench-and- just a U.S. issue,” Rodriguez said. 923. tion will get close to 1-to-1 in the “There’s need for technical talent “We’ve been able to find ‘A’ stu- Rural collapse? future, Macher said. nut across the board, in logistics, engi- dents who want to be close to home While the experts remain opti- “The interface between neering, computers, etc., and it’s and close to family,” Gelberman mistic about placement, the fate of chemistry and mechanics is business; starting to stress management and said. “We’ve had success because rural plants and the small towns more and more important for limit some production.” we’ve been proactive.” that host them is grim. us,” Macher said. “This is no everything is The skills gap remains an al- CSP is also getting creative to Macher said the trend will cer- longer a wrench-and-nut busi- most universally shared issue for combat the reluctance of the tainly shutter rural plants over ness; everything is totally in- totally U.S. manufacturers. skilled workforce to move to rural time — a necessary evil. terrelated from process to prod- Nearly 98 percent of CEOs say plants. “I hate shuttering plants; stores uct, and we’re recognizing the interrelated the skills gap is a problem for their The composite plastic compo- get boarded up and small towns go sensitivity of having skilled people from process to companies, according to a survey nent supplier is hiring engineers away when these plants close,” in all phases of production.” released last week by nonprofit to work at those plants — which Macher said. “In some cases, this Auburn Hills-based TI Automotive product, and we’re Change the Equation. also include locations in Indiana, will have to happen.” Ltd. also struggles to fill positions The transportation, trade and Ohio and North Carolina — on the But it’s not a move Macher plans at its plants in Caro and Cass City recognizing the manufacturing companies sur- promise that after two or three to make just yet — largely because in the Michigan thumb, said Kirk veyed by the organization repre- years, they can transfer to the it’s expensive. It costs nearly $1 Fournier, director of advanced sensitivity of having sent an employment base of 3.1 Michigan headquarters or its million to move one four-ton press technology. million — approximately 2 percent plants in Spain or China. These from its plants, he said. “The pay rates aren’t compara- skilled people in all of the entire U.S. workforce. have always been options, but are Rodriguez said that while tech- ble to more suburban or city loca- Change the Equation is a CEO- now part of marketing itself to new nology is creating the issues with tions, and you really have to find phases of led effort to improve science, tech- recruits. the workforce at rural plants, it’s the people who want this type of nology, engineering and math edu- Macher said the supplier is also also trying to solve it. lifestyle,” Fournier said. “Maybe production. cation formed in 2010 and considering other incentives, like She said mobile devices, such as this is where they are from and ” supported by President Barack paying premium wages to those the iPad, have created scenarios they want to come back home, or Frank Macher, Obama. skilled workers who transfer to its where line workers can get specific they prefer a rural existence, but Continental Structural Plastics small-town plants or providing direction from off-site engineers. this is not the norm in our indus- Recruiting plans company-paid trips or other enter- Suppliers also enlist firms like try right now.” William Frey, a demographer at tainment options. KPMG, and its stable of engineers the Brookings Institution, a Wash- Plymouth Township-based “We have to entice a skill set to and plant managers, to set up pro- Migration patterns and gaps ington, D.C.-based think tank. Freudenberg-NOK Sealing Technolo- an area where none exists,” Mach- grams to keep small-town plants Frey, in a USA Today interview in gies recognized the issue coming er said. “This has become a signifi- operational. A common practice of The inability to secure labor tal- March, called the trend a “180 de- out of the recent recession and cant endeavor.” late is to train a traveling team of ent in small rural towns is a symp- grees” shift from the rush to the went on the offensive. CSP, like many other suppliers, highly skilled launch engineers to tom of the overall trend of people exurbs prior to 2010. The automotive sealing compo- is looking at apprenticeship pro- assist rural plants in production, migrating back to metropolitan The number of college-educated nent supplier began in 2012 engag- grams to spur resident small-town and technology, ramp up. epicenters. people age 25 to 34 living within ing deans at universities with workers into higher-skilled jobs. “We’re seeing a general trend, In 2013, there were 269.9 million three miles of city centers has strong engineering programs as Having an international pres- but I don’t think that means the people living in, or near, U.S. risen 37 percent since 2000, accord- near to its rural plants as possible, ence is a bargaining chip, said Ted end of small-town manufactur- cities, up by 2.3 million over 2012, ing to an October report by Port- said Ari Gelberman, a recruiter Duclos, president of Freudenberg- ing,” Rodriguez said. “We’re see- according to U.S. Census Bureau land, Ore.-based think tank City Ob- for the company. NOK. ing the use of technology stem- data. servatory. For instance, Gelberman has “Even if someone is at our plant ming that.” Young professionals and retir- Kimberly Rodriguez, principal built a relationship with two deans in Necedah, it’s likely they are go- Dustin Walsh: (313) 446-6042, ing baby boomers are driving the in the advisory practice at KPMG at the University of Wisconsin-Stout ing to wind up on business trips to [email protected]. Twitter: boom toward cities, according to LLP in Detroit, said this issue has in Menomonie, Wis. The universi- Japan or Germany.” Duclos said. @dustinpwalsh 20141208-NEWS--0029-NAT-CCI-CD_-- 12/5/2014 1:34 PM Page 1

December 8, 2014 CRAIN’S DETROIT BUSINESS Page 29 Kroger: ‘We have to present a better, fresher, friendlier store’ ■ From Page 1 very important to Kroger Co.,” New Baltimore, Port Huron and Homco said. MARKET SHARE FOR METRO TOP 20 GROCERY COMPANIES IN SE MICHIGAN BY MARKET SHARE Hillsdale. She declined to say what percent- Company trade names Before year’s end, Kroger ex- age of the company’s $98.4 billion in DETROIT’S GROCERS pects to open additional gas sta- 1. The Kroger Co.: Kroger; Kroger Marketplace total revenue last year came from tions in Springfield Township and 2. Meijer Inc.: Meijer its Michigan operations. Howell. And if the weather cooper- But Ken Perkins, a stock analyst 3. Wal-Mart Stores Inc.: Wal-Mart Supercenter ates, another gas station will open covering grocery retail for Morn- 4. Costco Wholesale Corp.: Costco Wholesale at 13 Mile Road and Gratiot Av- ingstar Inc. in Chicago, estimates 28.3% 28.5% 5. Sam’s Club: Sam’s Club enue in Roseville in January, the Michigan division’s revenue 6. Target Corp.: Target PFresh grocery Homco said. accounted for roughly 5 percent of 7. Aldi Inc.: Aldi the company’s $77 billion in rev- 2.1% 8. GFS Marketplace: GFS Marketplace enue, not including fuel, last year. Stores and stations 3% 25.2% 9. Family Dollar Stores Inc.: Family Dollar Kroger has a long history here, 12.9% 10. Whole Foods Market Inc.: Whole Foods Market Like Kroger, Meijer also operates forged organically and through ac- 11. Hiller Inc.: Hiller’s Market gas stations near many of its stores, quisitions such as its 2007 purchase and it, too, offers customers who 12. Trader Joe’s Co.: Trader Joe’s of 20 local Farmer Jack stores from Kroger Spartan Stores make purchases in its stores dis- Montvale, N.J.-based Great Atlantic 13. SpartanNash Co.: Family Fare Supermarkets; Spartan Foods; ValuLand; counts toward fuel at those stations. Meijer Busch’s VG’s Food Center & Pharmacy; VG’s Fresh Market; VG’s Grocery & Pacific Tea Co. Inc., Homco said. “Our gas stations have always Wal-Mart Others 14. Busch’s Fresh Food Market: Busch’s Fresh Food Market “We have facilities we’ve out- been a part of our offering and our grown here in Michigan, and we All data as of October 2013. 15. Hollywood Super Markets Inc.: Hollywood Supermarket customers expect the convenience,” want to make sure we can contin- Source: The Nielsen Co., Stagnito 16. Dollar General Corp.: Dollar General said Frank Guglielmi, senior direc- Business Information Marketing Guidebook ue to grow.” 17. Kmart: Super Kmart tor, communications, in an email. “When you look at some of the complete major remodels at 10 18. SuperValu Inc.: Save-A-Lot Most Meijer gas stations were other players here, we have a lot of stores in Michigan, at an invest- 19. Saturn Food Center: Hartheart Land Marketplace; Saturn Food Center; built with its stores, he said. mass (product retailers) with Mei- ment of $4 million to $6 million Saturn Super Foods Meijer launched mPerks in 2010 jer and Wal-Mart. ... We fill a very each, Homco said. That includes re- 20. Oak Ridge Markets: Oak Ridge Market and has expanded the program in nice niche with our traditional doing the floors, rearranging food recent years with a smartphone app grocer status,” she said. cases, adding new décor and often Market share rankings are estimated by grocery-specific revenue for each company. and free Wi-Fi for customers, he The number of regional inde- flipping departments — a pricey en- Source: Chain Store Guide, 2014 Grocery Industry Market Share Report said. pendent grocers in Michigan spurs deavor since it means moving walls More than 3 million customers at stores, she said. And in August, it Livonia. And other products, like Kroger to be more competitive, and rewiring. Meijer’s 213 stores across Michigan, opened a Godiva Boutique at its the cranberries sold in its Michigan Homco said. Among them are Kroger “reopened” a Port Huron Ohio, Indiana, Illinois and Ken- Ann Arbor store. stores over Thanksgiving, are Busch’s Fresh Food Market, Hiller’s store in early December and plans tucky have enrolled in mPerks, and The boutique — its first— offers grown here. Market, Hollywood Markets, VG’s Gro- to hold a grand reopening celebra- as many as 26,000 more customers candy made from the chocolatier’s “It’s neat to be able to procure it ceries, Papa Joe’s Gourmet Market & tion at a second Canton Township are joining mPerks each week, he recipes, prepared by Kroger em- locally,” Homco said. “People want Catering and Nino Salvaggio Interna- said. store Dec. 10. ployees who are trained by Godi- to support the local economy ... tional Marketplace. About half of Meijer’s stores are It’s also renovated stores this va, Homco said. and I think you get a fresher prod- “Those independent operators in Michigan. Of those, 30 are in year in Bloomfield Township, The boutique has been doing uct that way.” very much serve a niche and are Southeast Michigan — which in- Troy, West Bloomfield Township, well, but the true test will be the Margins for grocery stores are very fresh operators. I think that cludes stores in Howell, Port Huron Farmington Hills, Springfield holiday season, she said. It’s a con- typically just 2-4 percent, “so hope- makes us better,” Homco said. “We and Monroe. Township, Lansing and Flushing. cept Kroger is looking at for other fully, you’re growing sales and have to present a better, fresher, During the past several years, But only the Birmingham store parts of the country. you’re growing market share,” friendlier store.” Meijer has invested more than at East Maple Road and Woodward “Certainly, part of our merchan- Homco said. But with Grand Rapids-based $200 million in new and remodeled Avenue closed during renovations, dising strategy is to try new things Kroger’s loyalty and fuel pro- Meijer Inc. nipping at its heels for lo- stores in Southeast Michigan, Homco said. and see how they work,” like the grams are designed to do exactly cal market share and Wal-Mart Guglielmi said. In the coming year, “We just turned that store up- Godiva boutique or the cheese that. Kroger offers personalized Stores Inc. holding the next-largest it plans to open four of 11 new stores side down. We weren’t going to shops with offerings from New coupons for items customers regu- share, Kroger is also looking to in Michigan, including its second in give customers a good shopping York’s Murray’s Cheese Shop, Homco larly shop for and a free mobile compete with expanded-format Detroit, at the former Redford High experience while we renovated said. app that provides electronic stores. In February, the state’s first School site, and others in Alpena, that store,” she said. “We’ve got another couple ideas coupons and shopping lists, pre- 123,000-square-foot Kroger Market- Manistee and Acme Township. The store was stripped down to up our sleeve for another couple scription reordering and customer place opened at 23 Mile Road and its bare walls, she said. Every de- stores.” loyalty point tracking. “Southeast Michigan has always Hayes Road in Shelby Township, partment has been rebuilt, and Customers can also earn dis- been a very important market for with nonfood departments includ- many are in different locations. counts off the price of gas pur- Meijer, demonstrated by our con- ing housewares and apparel. Shoppers will also find a repaved Food from home chased at Kroger and participating tinued investment in new and re- And the hope is to open more su- parking lot, a new foyer, a better Increasing the level of fresh food Shell gas stations by buying gro- modeled stores, as well as our ongo- perstores soon, if the company can presentation and selection of food at Michigan Kroger’s is also part of ceries, prescriptions and gift cards ing commitment to building stores in the city of Detroit,” Guglielmi find the large sites needed, Homco and some as-yet unannounced her strategy, Homco said, as is in its stores. Kroger offers a higher said. said. changes in the deli department, sourcing locally wherever possible. discount off gas purchased at one Price and location, traditional “The metropolitan statistical area Homco said. The milk, sour cream and cottage of its 62 area gas stations. competitive factors for grocery in which we operate is very dense; The chain has begun offering cheese sold at area Kroger stores Those include gas stations re- stores, are still very important, it’s amazing,” she said. “To find that Mediterranean food at some local come from its Michigan Dairy in cently opened in Farmington Hills, kind of real estate to be able to fit Morningstar’s Perkins said, as is a one of the stores has been a chal- strong focus on fresh, natural and lenge.” organic products. Kroger, which operates 2,631 Fuel and loyalty programs are stores across the country, is fortu- also important strategies, given nate, Homco said, to have so many that other retailers use them to dri- different store formats available. In ve traffic to their stores and some addition to its traditional grocery smaller competitors aren’t using stores of 30,000-90,000 square feet them. Kroger’s loyalty program and and its marketplace stores of its personalized coupons are very 123,000-125,000 square feet, it also effective in bringing customers operates convenience stores that back, Perkins said. are 10,000-15,000 square feet in other One of the newer competitive tac- states, she said. tics Kroger is now evaluating is the click-and-collect system it acquired with its purchase of the east coast Major makeovers grocery chain Harris Teeter Super- Kroger recently unveiled its ex- markets Inc. early this year. panded Rochester Hills store at Liv- Through the system, customers ernois Road and Walton Boulevard, order food online and pick it up at which grew to 90,000 square feet the grocery store. from 60,000 square feet after a $10 Kroger is assessing the econom- million to $12 million investment. ics of the system and seeing how ap- In the next couple of weeks, it will plicable it could be to its different complete a similar expansion of its stores and markets, Perkins said. Canton Township store at Canton COURTESY OF MEIJER INC. Sherri Welch: (313) 446-1694, Center and Ford roads, Homco said. Meijer Inc. — a close No. 2 to Kroger in local market share — has spent more than $200 million on new and remodeled [email protected]. Twitter: It also has completed or soon will stores in Southeast Michigan and plans to open four of 11 new stores in Michigan, including its second in Detroit. sherriwelch 20141208-NEWS--0030-NAT-CCI-CD_-- 12/5/2014 3:31 PM Page 1

Page 30 CRAIN’S DETROIT BUSINESS December 8, 2014 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF NOV. 27-DEC. 5

signed to strengthen local Ⅲ Chevrolet hired former OTHER NEWS entrepreneurship. Orr predicts Ford Motor Co. social media Andy Linn and his sister, manager Craig Daitch as se- Ⅲ The Somerset Collec- New owner Emily, opened City Bird in tion’s CityLoft returned to De- nior manager for social me- 2009. In October, they re- post-bankruptcy dia, Automotive News re- troit’s Woodward Avenue, ceived $10,000 from the NEI- ported. Daitch, 39, joins bringing more than 30 re- deas program and used that budget surplus General Motors Co. from Sapi- tailers downtown. CityLoft, soon for money to expand the 600- entNitro, where he was vice now on the ground floor of the First National Building, square-foot retail shop at etroit Emergency president of digital market- will be open 10 a.m. to 7 p.m. 460 W. Canfield St. to 1,100 Manager Kevyn Orr, ing strategy and managed Monday through Saturday square feet. D who helped take the Detroit office. He was at through Dec. 23. New vendors include De- Detroit into bankruptcy, told Ford before joining Sapient- Ⅲ Detroit Labs, a mobile Crittenton? troit-based Aptemal Clothing the city’s financial oversight Nitro late last year. app development company, LLC, known for its “Detroit board Friday that he projects Ⅲ Michael Cavanagh, a 32- ord is out that the tabowl Food Truck & Catering. will launch an app today for Hustles Harder” line, and a budget surplus of about year Michigan Supreme board of indepen- the Detroit Police Department. One-on-one sessions with Rebel Nell L3C, which em- $100 million by the end of Court justice, will join Lans- W dent Crittenton Hos- Google experts will cover ploys disadvantaged ing law firm Alane & Charti- DPD Connect, available as a next fiscal year, The Detroit free download across all pital Medical Center in areas such as online mar- women in Detroit to make er PLC early next year. Ca- News and Detroit Free Press platforms, will provide the Rochester Hills is leaning keting and website analyt- its unique jewelry. vanagh couldn’t seek reported. Orr told the panel community with breaking toward a decision on its ics. Registration for the Linn said City Bird had re-election because the he’ll ask a federal judge to news, crime updates and next owner. event is recommended at one year to spend $10,000 and state constitution bars can- make the bankruptcy exit statistics and posts about Nobody is talking yet, but gybo.com/mievent. report on how it was used, didates who reach age 70. official this week, and said wanted suspects, and fea- sources and employees are but they wanted to get start- Ⅲ University of Michigan he’ll resign when the ture a tool for people to saying it is down to three head football coach Brady Legislation would keep ed right away. All that’s left financial emergency is make anonymous tips. systems. Hoke was fired after four to do is polish the concrete completed, which he hopes Ⅲ General Motors Co.’s The three finalists are five- seasons, capped by a 5-7 alcohol flowing until 4 a.m. floors. will come by mid-month. Chevy Silverado campaign hospital Henry Ford Health Sys- NEIdeas is part of the record in 2014. tem in Detroit, 12-hospital If legislation approved by “Purple Roads,” created by the state Senate last week New Economy Initiative and Troy-based Leo Burnett De- McLaren Health Care Corp. in Community Foundation for ON THE MOVE Flint and St. Louis-based As- moves ahead for approval COMPANY NEWS troit, took the Best of Show Southeast Michigan and will Ⅲ Pontiac-based human cension Health, the nation’s in the state House, it may be honor at the eighth annual award a total of $500,000 to services agency Lighthouse Ⅲ Auburn Hills-based D Show advertising awards largest Catholic health care possible to party Miami- more than 30 businesses. of Oakland automotive leather suppli- gala sponsored by the Ad- system and owner of five-hos- style in the D next year. County er Eagle Ottawa LLC an- craft Club of Detroit. pital St. John Providence Health Well, without the palm named Lisa nounced a $10 million, Ⅲ A nearly 130-year-old System in Warren. trees or sand. The late-night Chalkfly founders remain Machesky, 16,500-square-foot expan- building near the Detroit Officially, Crittenton says part. upbeat after company sale 44, as CEO. sion to its Rochester Hills riverfront that once housed a decision will be made and A bill approved Thursday tech center, adding work- Schweizer’s German restau- would let bars and restau- Did Detroit Venture Part- She was ex- announced by the end of the space for 50 new employees, rant was demolished. River- rants pay a $10,000 annual ners LLC, the early stage ecutive di- year. Stay tuned. new prototyping and vali- front Holdings Inc. bought the fee to sell alcohol until 4 venture capital company rector of dation capabilities and new vacant building in May. a.m. That fee revenue co-founded by Dan Gilbert, the Baldwin space for its customers. Ⅲ An industrial ware- Google event to aid small would go to local police, the Josh Linkner and Brian Her- Center, a Machesky Ⅲ Detroit-based private house building at 5757 Trum- state Liquor Control Commis- melin, pull the plug on Chalk- human ser- biz, nonprofits in Pontiac equity firm Rockbridge bull St. in Detroit’s New Cen- sion and the communities fly, a company founded in vices agency in Pontiac, be- Growth Equity LLC acquired ter was sold to two Austin, Google Inc. is coming to where the late-night/early fore her departure in Octo- 2012 to sell office and janito- Robb Report, a Malibu, Texas, investors planning a downtown Pontiac — but morning bar permit is is- rial supplies? ber. At Lighthouse, she not in the way you might succeeds John Ziraldo, 56, Calif.-based company that loft-style multifamily resi- sued. That’s the word in the lo- reports on luxury lifestyles think. who left in October. dential development. Bill Ball Bill sponsor Virgil Smith, cal VC community, though through magazines, web- On Dec. 10, Google will Ⅲ The Ann Arbor-based and Jerry Lindenmuth pur- D-Detroit, said in reports those involved in the sale of sites, smartphone apps, host a free public event de- Michigan Venture Capital As- chased the building, occu- published by The Associat- the company for an undis- events and a private club. voted to small businesses sociation named Maureen pied by Boston-based docu- ed Press and MLive.com closed amount to Novi- The company will open an ment management company and nonprofits, in coopera- Miller Brosnan as executive that the move is meant to based Global Office Solutions office in downtown Detroit. Iron Mountain Inc., for $2.5 tion with the city and the director. The president of give downtown businesses declined to discuss details Ⅲ Fuel systems supplier million last month. Pontiac Regional Chamber. the Livonia City Council and the same status as those in last week. TG Fluid Systems USA Corp. Ⅲ The long-awaited Boe- Colby Chilcote, small-busi- chairman of the board of di- other big cites (Miami, New In the summer of 2012, is spending $12.9 million to ing 787 Dreamliner made ness marketing manager for rectors of St. Mary Mercy York, Atlanta, D.C., Chica- Chalkfly joined the Bizdom expand its operations in its debut at Detroit Metropol- Google, said event organiz- Livonia hospital replaces Car- go.) But Mike Tobias of the accelerator founded by Brighton and is expected to itan Airport when Royal Jor- ers hope to draw more than rie Jones, now director of the group Michigan Alcohol Policy Gilbert and later became create 36 jobs. danian landed one to begin 100 people to 7 N. Saginaw Detroit-based Studio Center. said the change would be the first Bizdom graduate to Ⅲ Swedish retailer Ikea twice-weekly passenger downtown between 10 a.m. Ⅲ Alfred Diebel, 60, was “terrible” for public health become a DVP portfolio plans to add 765 solar panels service to Amman. and 1 p.m. named executive director and safety. company. It was housed, of the Detroit-based Munici- to its 8-year-old Canton Ⅲ A $2 million grant “We picked Pontiac be- like many of DVP’s tech Township store next spring from the Detroit-based Skill- cause we are piloting this pal Advisory Council of Michi- City Bird flies higher with companies, in the Madison gan. The former treasury and summer, increasing the man Foundation is expected program and Michigan is the Building downtown. total panels to 4,925. to help create a plan to first state where we rolled manager at the Detroit Wa- more space, new vendors Gabe Karp, a partner at ter and Sewerage Depart- Ⅲ After a two-year devel- boost young men of color in out the pilot,” Chilcote said. DVP, which led an invest- ment replaces Jim Bickley, opment of its Corktown lo- Detroit, AP reported. “Pontiac (and the chamber) Holiday shoppers seeking ment of $750,000 in Chalkfly who is retiring Dec. 31. cation, Gold Cash Gold pre- Ⅲ The Michigan Economic were the first partners to locally made jewelry, appar- in March 2013, confirmed the Ⅲ Lynne Friman, 55, direc- pared for a weekend Activity Index grew by one- host a workshop.” el and other products have sale of the company’s assets, tor of strategic projects for opening for dinner. Normal tenth of a percentage point Local catering will be pro- more options now that De- which basically amounted to CultureSource, the Detroit- business hours at the new in September to 120.5 for the vided by Downtown 51 Grille, troit retailer City Bird has its list of clients, but declined based arts and cultural asso- restaurant at 2100 Michi- sixth straight month of Lafayette Market, Traveling bulked up its inventory, to comment further. Two of ciation, was named interim gan Ave. will begin Dec. 9. growth. The Southeast Michi- thanks to a program de- Chef Catering and Delec- Chalkfly’s nine employees director. Executive Director Ⅲ Overall revenue at the gan Purchasing Managers In- have joined Global Office So- Maud Lyon is leaving at three Detroit casinos fell dex was 56.8 in November, lutions. year’s end to become presi- slightly in November after up from 54.7 in October. Andrew Landau co-founded dent and CEO of the Greater rising in October, with Ⅲ The Michigan House ap- the company with his Philadelphia Cultural Alliance. Greektown Casino-Hotel re- proved a $1.2 billion plan to brother, Ryan. Ⅲ Peter Grady will retire porting the only increase for boost road funding without The two founders remain as head of Chrysler Group the month, said the Michigan raising taxes by instead us- upbeat. Ryan, who left a job LLC’s dealer network on Gaming Control Board. ing money that would other- in Washington with IBM to March 31, and will step Ⅲ Honda North America wise go to schools and local start Chalkfly, said he will down as head of Maserati said it will expand its recall governments, AP reported. continue to be part of “De- North America at the first of of potentially explosive dri- troit 2.0.” the year, Automotive News ver-side airbag inflators na- Andrew, who left a job in reported. Grady, 54, will re- tionwide in accordance OBITUARIES Chicago with Google to join tain his current responsi- with a request from federal Ⅲ Patrick Nowak, former his brother, said: “Whether I bilities until then, Chrysler regulators, even as airbag director of the Michigan De- join another startup or start said. Christian Gobber will manufacturer Takata Corp. partment of Transportation COURTESY OF CITY BIRD my own company, Chalkfly assume responsibility for continued to insist it’s not and a former Oakland Siblings Andy and Emily Linn opened City Bird in Midtown in 2009 was chapter one. I’m looking leading Maserati North necessary, Automotive County deputy executive, and recently completed an expansion. forward to chapter two.” America, effective Jan. 1. News reported. died Nov. 22. He was 76. DBpageAD_DBpageAD.qxd 12/3/2014 11:42 AM Page 1

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