Could Qline Expand? for Growth

MAY 8 - 14, 2017

Delphi spino : Shinola mobility bet Detroit in changing dives industry into Supplier splits with Big audio Iron heritage. Page 3 Page 8

Transportation Champion, cash needed Could QLine expand? for growth

By Bill Shea [email protected] t took a decade to get the QLine from an idea on paper to a streetcar on rails. I e project survived amid the city’s political scandals and a historic municipal bankruptcy, and weathered an e ort by the city, state, and federal government to kill it in favor of more buses. Expanding the QLine to run father north on Woodward Ave- nue, or on spur routes elsewhere in the city, may be a simpler and cheaper endeavor, the system’s CEO said, as the line prepares to start ferrying the public this Fri- day. “ e next ones aren’t as expensive,” said Matt Cullen. “We had a lot more complexity.” What he means is that the nearly $200 million to get the $6.6-mile QLine loop designed, built, and running also provides much of the infrastructure needed for expansion. For example, already built is the 19,000-square- foot Penske Technical Center in the New Center neighborhood. Inside e $6.9 million facility serves as How safe will the QLine the maintenance, storage and op- be for other drivers, erations nexus for QLine, and pedestrians? Page 13 would for any expansion. The new QLine streetcar takes a test run down Woodward Avenue. Timeline of light rail in SEE QLINE , PAGE 26 DANIEL MEARS/AP Detroit. Pages 13-16

Insurance State targets L.A. Insurance for deceptive business practices By Chad Livengood gators “targeting us” for closure. State investigators found L.A. Insur- [email protected] Records obtained by Crain’s ance’s roadside assistance plans could State insurance regulators have through a Freedom of Information Act more than double the down payment accused multiple L.A. Insurance request show the Michigan Depart- through a sales tactic known as “slid- agencies of deceptive business prac- ment of Insurance and Financial Ser- ing” in which an agent would not dis- tices for allegedly tricking customers vices has been investigating L.A. Insur- close the ancillary product or tell the into unknowingly buying a roadside ance since at least 2011 in what appears customer the emergency towing ser- CRAIN’S DETROIT BUSINESS/CHAD LIVENGOOD assistance plan to pad their pro ts — to be a sweeping and ongoing probe of vice was a mandatory portion of the L.A. Insurance, under re for its seven-day insurance policies, is also being pursued in charges the company’s CEO claims an insurance agency with a large pres- insurance premium when it was not. court over claims it tricked customers into buying roadside assistance plans. have been invented by state investi- ence in Detroit and other urban areas. SEE INSURANCE , PAGE 24

© Entire contents copyright 2017 by Crain Communications Inc. All rights reserved crainsdetroit.com Vol. 33 No 19 $2 a copy. $59 a year. Short’s Brewing goes long << From humble dorm-room beginnings NEWSPAPER brewery becomes one of the state’s largest. Page 10 2 CRAIN’S DETROIT BUSINESS // MAY 8, 2017

INSIDE MICHIGAN BRIEFS BANKRUPTCIES 4 CALENDAR 12 State conrms jobless developers clean up areas with envi- CLASSIFIED ADS 23 fraud claims ronmental hazards. ey allow developers to keep a portion of taxes gener- DEALS & DETAILS 12 e state’s unemployment oce ated from businesses and residents KEITH CRAIN 6 has conrmed claims of benets moving into the site. e main bill OPINION 6 fraud in more than half of the cases it passed 85-22 with bipartisan support has re-examined after a computer while others passed on 83-24 mar- OTHER VOICES 7 wrongly accused thousands of Mich- gins. PEOPLE 22 igan residents of falsely receiving JASON ROBINSON/GENERAL MOTORS CO. Additionally, developers would be RUMBLINGS 27 benets. Durant-Dort Factory One in Flint, where General Motors Co. founder William Crapo able to receive up to 50 percent of tax- Fraud was found in about 52 per- “Billy” Durant and partner Josiah Dallas Dort started the Flint Road Cart Co. in 1886. es generated from the sites for a maxi- WEEK ON THE WEB 27 cent of the 14,454 cases — a total of mum of up to 20 years. Developers 7,582 cases — originally decided be- GM opens restored One operations manager, became in- could get no more than $40 million COMPANY INDEX: tween 2013 and 2015 that have been Flint birthplace terested in restoring the building. annually. SEE PAGE 26 reviewed to date, the Michigan Un- “Factory One sparked the global employment Insurance Agency said General Motors Co. opened the auto industry and was a catalyst in the Corrections last week. A total of 6,872 cases, or 48 Durant-Dort Factory One in Flint on formation of General Motors,” Reuss percent, were reversed for such rea- May 1 after four years of restorations, said in a statement. “It preserves the J On the list of largest law rms in $270 million is the total general fund sons as the state obtaining additional Automotive News reported. stories of the early visionaries who Southeast Michigan and Greater reductions proposed by House and information about a claimant or for e factory is considered to be built a brand-new industry in this city, Michigan in the April 24 issue, Ho- Senate Republican lawmakers. its practice of averaging wages over a GM’s birthplace and the “epicenter” within the very walls of where it hap- nigman Miller Schwartz and Cohn J In the May 8 Twenty in their 20s quarter. for the worldwide automotive indus- pened.” LLP’s attorney counts were incor- section, Amanda Lewan’s age was In all, the unemployment oce try, the automaker said in a statement. rect. Honigman has 211 attorneys in incorrectly listed as 29 on the photo plans to review approximately 28,000 Factory One includes space to rent House approves Southeast Michigan, 272 worldwide, inset. Lewan is 28. Also in Lewan’s cases that were agged as fraudulent out for events, as well as a GM car- browneld tax breaks and 37 in greater Michigan. e prole, a quote was misattributed to by a computer, a process that should riage-building and vehicle-manufac- company is tied for ninth-largest in Etrit Demaj. e quote was provided be nished in July, the state said. turing archive collection. e Michigan House approved leg- greater Michigan with Plunkett & by Edi Demaj. Refunds were owed in 13 percent In 1886, William Crapo Durant and islation ursday that would ease the Cooney PC. A corrected version of J In David Alade’s prole on page 9, of fraud cases overturned to date, the Josiah Dallas Dort leased the factory cost of cleaning up and redeveloping the list is at crainsdetroit.com/sec- Alade was said to be a Brooklyn na- unemployment agency said. to build carriages. Durant went on to browneld sites across the state. tion/data_lists. tive. Alade is from Queens, N.Y. e embattled unemployment buy Buick Motor Co. and then built e legislation, which the Senate J Ron Fournier's column on Page 8 J In Stacey Matlen’s prole on page agency is in the midst of a complete GM in 1908. approved in February and was backed of the May 1 issue referred to Gov. 11, Matlen’s LLC was incorrectly re- restructuring amid the fraud com- In 2012, Mark Reuss, GM’s execu- by Detroit businessman Dan Gilbert, Rick Snyder by an incorrect title and ferred to as Fresh Share LLC. e plaints, which have led to multiple tive vice president of global product could soon be sent to Gov. Rick Sny- incorrectly characterized $270 mil- company’s correct name is Fresh lawsuits, and complaints about cus- development, purchasing and supply der for his signature after reviewing lion in proposed budget cuts. e Fare LLC. tomer service. chain, and Kevin Kirbitz, the Factory House changes. e bills seek to help

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Auto suppliers Delphi’s spino reects changing auto industry By Dustin Walsh companies, one focused on power- Delphi shareholders will hold stock Delphi [email protected] train components and the other on in both companies. Automotive Delphi Automotive plc’s paring of electrical architecture and electron- Since emerging from bankruptcy plc split o its powertrain business to focus on ics safety. in 2009, the former General Motors its power- technology for autonomous and e move is the culmination of Co. unit has divested its high-vol- train unit to electric vehicles is the latest move by years shedding old-line automotive ume, low-margin automotive opera- focus on legacy auto companies to keep up parts businesses in favor of a techno- tions. In 2015, Delphi sold its thermal technology with an industry expected to change logical focus, now highlighted by the business to Germany’s Mahle GmbH for autono- rapidly as self-driving cars take to the push for autonomous vehicle tech- for $727 million and sold its 50 per- mous and roads. nologies. cent stake in its Korea Delphi Auto- electric e Troy-based company an- e spino, which will be tax-free, motive Systems Corp. Ltd. joint ven- vehicles. nounced last week that it would cre- is expected to be completed by ture to its partner for $70 million. ate two separate publicly traded March 2018, Delphi said. Current SEE DELPHI, PAGE 25 DELPHI

Health care Services Hospital nances improve, but Trouble on tap changes loom By Jay Greene [email protected] Local hospitals continued to do well nancially in 2016, despite shift- ing patient volumes to lower-paying outpatient and observation services, at payer reimbursement, rising operating costs and regulatory burdens. Lower tax-exempt bond costs and a rising stock market boosted hospital system bottom lines, especially at Flint-based McLaren Healthcare, Detroit-based Henry Ford Health System and Southeld-based Beau- PHOTOS BY JOEL KURTH/BRIDGE MAGAZINE mont Health. Ocials say recent improvements have cut notoriously long lines at Detroit Water and Sewerage Department payment centers. But uncertainty looms strong for hospitals as the Trump administration pushes to change regulations Detroit cites progress, but shutos actually rose last year and payment formulas under the Af- fordable Care Act. Last week, U.S. By Joel Kurth break down every night and cry.” House Republicans passed a bill that Bridge Magazine Larry bought the house for $3,500 would rework many provisions of Camay Larry has a bucket under in late 2015. Unbeknownst to her, that 2009 law, commonly known as her gutter and tattoo over her heart. she said, it came with a $3,400 water Obamacare. e Obamacare re- e bucket collects rainwater bill that is now her responsibility. placement still must pass the Senate, from the roof so she can ush her is is life today in Detroit, a city considered a high hurdle. toilet. e tattoo reads “Cry Later” in that, since its historic bankruptcy, Over the past several months, hos- cursive. It’s become a daily arma- has abandoned its longtime practice pital and insurance company execution since the city of Detroit discon- of ignoring past-due bills in an eort tives have strongly advised President nected her water a few weeks ago. to end what water ocials called a Donald Trump and congressional She says she needs to stay strong for culture of delinquency. When De- Republicans against radically chang- her 1-year-old son, Juan. troit launched the aggressive shut- ing Obamacare provisions they have “What I’m going through right o campaign in 2014, drawing inter- incorporated into their business now, I have to laugh for my baby be- national attention, city ocials models since 2010. cause he doesn’t know this isn’t nor- pledged that shutos would decline “ e biggest thing we are most mal,” said Larry, 24, whose house on after the initial blitz. concerned with is the (future of) the east side is lled with jugs she But newly compiled city records Medicaid expansion, because we spends much of her days relling. obtained by Bridge Magazine have 670,000 people in it and without “I have to keep it together for him through the Freedom of Information it, they would not be insured,” said because, baby, we’re struggling. He Act show that residential shutos Pat McGuire, CFO of the seven-hos- doesn’t know he’s taking a bath in last year jumped 18 percent over the pital St. John Providence Health Sys- the sink, that I make his bottles from previous year, to 27,552. Camay Larry has lived without running water for a few weeks because of a bill tem in Warren. a (neighbor’s) garden hose or that I SEE WATER, PAGE 23 dispute. SEE HOSPITAL, PAGE 26

More than One MUST READS OF THE WEEK Campus Martius Gilbert con rms a large addition to Perks at work the former Compuware Building is being considered. Page 9 How second-stage companies recruit and retain talent. Page 17 4 CRAIN’S DETROIT BUSINESS // MAY 8, 2017 I

INSPIRING DESIGN

COURTESY OF SOAVE ENTERPRISES LLC An aerial rendering of the Corktown neighborhood. P Elton Park project construction to begin this week in Corktown

By Kirk Pinho [email protected] The rst-phase The $150 million Anthony Soave’s sweeping buildings Elton Park project mixed-use development in Cork- ING is planned to Fishbeck, Thompson, Carr & Huber, Inc. town begins construction Monday. Checker Cab Building engineers | scientists | architects | constructors A ceremony will be held to break feature 420 Novi | Macomb | 800.456.3824 | ftch.com (redevelopment): Two oors of ground on the $150 million Elton one- and two-bedroom los apartments and Park project that’s planned to bring 420 apartments and 30,000 square The Robertson (new 30,000 square feet of retail space to a 4.5-acre construction): Four stories, 45 feet of retail swath of the neighborhood west of one- and two-bedroom S downtown. e name comes from apartments, retail. space. a park that was demolished in the The Crawford (new construction): rm, selling it to Waste Manage- late 1950s to make way for the John Five stories, 40 one- and two- ment Inc. seven years later. C. Lodge Freeway. bedroom apartments, retail. His Soave Enterprises has varied IS EVERYTHING. e $45 million rst phase of the business interests, ranging from 2100 Trumbull (new construction): project, announced last year, in- metal recycling to industrial ser- Five live/work spaces, retail. cludes 151 apartments totaling vices and hydroponics. 124,000 square feet, averaging 821 2120 Trumbull (new construction): e Roxbury Group has been re- square feet, and just over 13,000 Five live/work spaces, retail. sponsible for the redevelopment of square feet of retail. at phase is 8th Street Row (new the David Whitney Building and expected to be complete by late construction): 4 three-story others in the last decade. summer 2018, according to the de- attached rowhouses with 1,744 Soave has developed large resi- veloper. square feet each. dential properties, including one e project has received $6.9 Source: Soave Enterprises LLC. under way in suburban Washing- million from the Michigan Com- ton, D.C., where he is working on munity Revitalization Program and around 12,000 units in Louden construction nancing from Co- expected to move to another De- County. He has also developed merica Bank and Huntington Bank. troit location as part of the redevel- condominiums along the beaches Contractors on the project are opment eorts, in 2002. of Naples, Fla. Eastpointe-based Monahan Con- e next year, Soave started buy- e company says it has a real struction, which is construction ing property surrounding the estate development portfolio of ap- manager; the architecture rms of Checker Cab building, and has ac- proximately $2 billion in six states. Detroit-based Hamilton Anderson cumulated 18 parcels on Trumbull, Soave also has residential com- Associates and Quinn Evans Archi- Elizabeth, Brooklyn, Plum and plexes in Michigan, including Huron tects, which has oces in Detroit Eighth streets, largely in 2003 and Pointe in Huron Township, e Mill- and Ann Arbor; and Detroit-based 2004, although a pair of additional town in downtown Rochester, e e Roxbury Group, which is pro- properties in the development area Overlook in Rochester, e Moors of viding development services. were purchased in 2013 and 2014. Oxford in Oxford Township and Tul- Soave, president and CEO of De- Soave founded City Manage- lamore in Oxford Township. with an MBA Take charge of your career troit-based Soave Enterprises LLC, ment Corp. in 1961 and built it into Kirk Pinho: (313) 446-0412 from Lawrence Technological University. purchased Checker Cab, which is a multistate waste-management Twitter: @kirkpinhoCDB i Project-based instruction i Industry-savvy professors i On-campus or online BANKRUPTCIES

The following businesses filed J Harvest CCP LLC, 1315 Lone untary Chapter 11. Assets and lia- Learn more at: ltu.edu/mba for bankruptcy protection in U.S. Pine Road, Bloomfield Hills, vol- bilities are not available. Bankruptcy Court in Detroit April untary Chapter 11. Assets and lia- J EPC Enterprises Inc., 4696 Dixie 28-May 4. Under Chapter 11, a bilities are not available. Highway, Waterford Township, company files for reorganization. J Joseph Berenholz, M.D., PLLC, voluntary Chapter 7. Assets and [email protected] Chapter 7 involves total liquida- 30445 Northwestern Highway, liabilities are not available. tion. Suite 140, Farmington Hills, vol-

6 CRAIN’S DETROIT BUSINESS // MAY 8, 2017 The business case against legislative term limits ary Barra spent 34 years climb- ere are commission reports OPINION ing the corporate ladder at about the dire need to x our broken MGeneral Motors before becoming the infrastructure and poor-performing Detroit automaker’s rst female CEO public education system piling up in in 2014. She oversees a company of Lansing. Another report from a gu- Safety push needed 225,000 employees across the globe bernatorial commission on the fu- that generated $166.4 billion in reve- ture of Michigan’s economy is due nue last year. out in May. as QLine launches Jay Farner became CEO of Quick- But few elected members of the CHAD LIVENGOOD etroit’s long-awaited streetcar line opens to the public on May 12. Con- en Loans in February after 21 years [email protected] Legislature are paying attention with sider it the driver’s permit phase; the QLine shares tra c lanes with mo- with the mortgage giant, which saw the term-limits clock ticking for torists, pedestrians and bicyclists, and there are bound to be some its lending volume top a record $17 House members from the conse- them to nd new jobs (many land Dbumps, if data from cities with similar systems are a guide. billion in 2016 under his leadership quences of their public policy deci- gigs in local or state government or at M-1rail.com, the line’s website, oers safety tips and diagrams, and downtown as president and commercial pitch- sions. lobbying rms after their time in of- outreach has been largely through employers and the Downtown Detroit Part- man for a company with 16,000 em- One-third weren’t in o ce a year ce). nership. But as Bill Shea reports on Page 13, some transit supporters fear out- ployees. and half ago when the Legislature Because they don’t have time. reach hasn’t been strong enough. Gerry Anderson joined DTE Ener- passed a $1.2 billion road funding When the newly elected class of We agree. A busy summer, with thousands of occasional downtown visitors, gy in 1993 as a vice president at the bill that won’t be fully funded until nearly 40 House members arrives in will be critical for the streetcar’s success. Employers, restaurants, the sports ven- Detroit-based energy company and 2021. Lansing every other January, the ues — all need to help educate visitors on safety and navigation tips. We suspect held several executive jobs before be- In 2019, two-thirds of the House ones who want to be committee the push by M-1 Rail begins with the public opening. coming president in 2004 and CEO will have had no role in the Legisla- chairmen or take leadership posts Meanwhile, expect to see some unhappy motorists who, accustomed to park- the following year. DTE has a nation- ture’s decision to earmark $600 mil- quickly start making their moves. ing along Woodward Avenue for quick dashes into buildings along the route, nd wide workforce of 10,000 and posted lion of the $11 billion general fund Leonard went from being an as- their vehicles towed. $10.3 billion in operating revenue in for roads and bridges — a decision sistant prosecutor in Genesee Coun- “Could be the most expensive latte you’ve ever had,” says Paul Childs, the la- 2015. that will put a strain on the funding ty in 2012 to running the state House conic COO of M-1 Rail, who warns against parking over the streetcar track “just Tom Leonard spent four years rep- source for prisons, Medicaid, munic- this year. He succeeded Paul Op- for a minute” to run into a coee shop. Childs even had a FedEx truck towed last resenting a suburban Lansing state ipalities and public universities. sommer, who went from being week after a fruitless 15-minute search for its driver. House district in Clinton County be- By that time, thanks to term limits, House Transportation Committee Parking in the right-of-way for the QLine earns tickets, nes, towing and stor- fore being elevated to speaker of the just a dozen of the 38 current sena- chairman in 2012 to a lobbyist for age fees that could approach $700, Childs told a group of government o cials House, a position that wields great tors could still be o ce — if they get Ambassador Bridge owner Manuel riding the cars in a test run last week. power over a $55 billion annual state re-elected in 2018. “Matty” Moroun weeks after he was A lot is riding on the QLine’s success. Transit fans hope the QLine will whet the budget and 48,000 state employees. e revolving door of term-limit- term-limited from o ce. appetite among voters for expanded transit options in the region through the Re- Leonard’s predecessor, Kevin Cot- ed legislators has certainly created Now Leonard is reportedly eyeing gional Transit Authority, which narrowly lost a millage election last November. ter, also spent four years as a state rep new opportunities for more Michi- a run for attorney general in 2018 — In retrospect, the RTA may have been smarter to schedule its millage for No- from Isabella County before being ganders to become involved in gov- because he can't run for re-election vember 2018. propelled into the speaker’s seat for a erning the state. For the most part, to the House again. mere two years, before the state Con- that’s a good thing for a representa- In a matter of ve years, Cotter stitution sent him home. tive democracy. went from private sector law practice With all the clamoring from busi- But the Legislature hasn't exactly to a rocky two-year term as speaker City Airport a worthwhile asset nesspeople who want the govern- been attracting the highest quality of of the House that may be best re- ere is talk about closing City Air- ment to be run like a business, why characters in recent years for a membered for pushing Courser and port and using the rather large piece of do we promote junior-level associ- $71,685-a-year job that expires in six Gamrat out of the Capitol. land for some other purpose. ates to be chief executive o cers of to eight years and no longer includes Both Leonard and Cotter are both is is not the rst time folks have the Legislature every two to four retirement benets. perfectly qualied public servants. talked about closing the airport, which years? In the past two years alone, one But they simply have had no time to has been serving the city of Detroit Because of term limits. state senator went to jail for shooting gain the kind of experience on the job since the 1920s. What is now called In 1992, 59 percent of voters, fed up his ex-wife’s car (Virgil Smith of that Barra, Farner and Anderson got Coleman A. Young International Air- up with career politicians in Lansing Detroit); two state representatives before being elevated to the CEO’s port has been a xture in our city. KEITH CRAIN and Washington, took out their anger were caught in a bizarre sex scandal seat. It is a valuable asset that should be Editor-in-chief at the ballot box by imposing consti- leading to the resignation of one and Senate Majority Leader Arlan nourished, not abandoned. Waterford Township. tutional limits of three two-year the expulsion of the other (Todd Meekhof got a little more on-the-job ere are lots of cities that have an I have no idea what the present and terms for House members and two Courser of Lapeer and Cindy Gamrat training. e Ottawa County Repub- airport that primarily serves the busi- potential economic benet is for the four-year terms for members of the of Plainwell, respectively) and an- lican is in the third year of a four-year ness community such as Cleveland’s city, but it would seem reckless to aban- Michigan Senate. other state rep (Brian Banks of Harp- term leading the Senate. In his rst Burke Lakefront. don such an asset that could never be e U.S. Supreme Court ruled the er Woods) resigned as part of a plea four-year Senate term, Meekhof was One exception is Chicago’s Meigs replaced. term limits on members of Congress deal with prosecutors over bank the majority party's oor leader — Field, where Mayor Richard Daley bull- It seems hard to believe that this city were unconstitutional, and they got fraud charges. the business equivalent of chief oper- dozed the runways in the dark of night. is looking for large pieces of land. I al- tossed out. e state term limits And Banks got elected to a district ating o cer — after serving two e airport has remained abandoned ways understood that there was plenty stuck. representing northeast Detroit and terms in the House. since then. e rumors of a casino on of land available; we were lacking the A generation later, the conse- part of the Grosse Pointes with a rap Meekhof used a business case for that site have seemed to be wrong, and need on the part of someone who might quences of this ill-conceived experi- sheet that includes eight felony con- at least lengthening term limits the mayor’s dream, luckily, is dormant like to build a huge manufacturing facil- ment in government reform are victions for writing bad checks and during a recent scal policy summit for now. ity. We are still looking, and I am sure showing up in nearly all facets of our credit card fraud. His campaign slo- in Lansing. City Airport has had a couple of fee- that we haven’t lost a factory because of state’s governance — or lack thereof. gan was literally “you can bank on “If you had a $55 billion company ble attempts to host a commercial carri- a lack of land. ere’s little to no institutional Banks.” and told investors every six years er out of the airport, but it simply never I will be the rst to admit that I am a memory among the elected mem- State Sen. Bert Johnson of High- you’re going to bring in new people caught on. pilot, although retired, and we’ve had bers of the Legislature. Lobbyists, gu- land Park, was just indicted by a fed- that haven’t done this very much, e airport is a great magnet for cor- an airplane at City Airport for at least a bernatorial appointees and legisla- eral grand jury for allegedly putting a how likely are people to invest in that porations interested in locating in De- couple of decades. Having the airport tive aides — and former lawmakers woman on his Senate payroll for a business?” Meekhof said, according troit or doing business in our city. close to downtown has given us a great working in those jobs — ll in the no-show $23,000 job to repay her for to e Detroit News. “It's very uncer- Whenever there is business activity in reason to stay in Detroit. If there had memory gaps for freshmen reps ev- a $14,000 personal loan. tain.” our city, like the North American Inter- been no City Airport, I wouldn’t have ery two years. While the sideshows of these Meekhof’s point is something for national Auto Show or SAE, there seem been surprised to see our company Not one member was around mostly personal problems play out the likes of Barra, Farner, Anderson to be quite a lot of visitors’ airplanes move out to Oakland County many when Proposal A passed in 1994 — in the media, real and consequential and their respective boards to think parked at City Airport. years ago. and few, if any, could explain how issues facing this state go unnoticed. about. As our business community grows, City Airport is a unique and valuable this constitutional amendment As the House was consumed in Au- If uncertainty is really the anathe- the airport can become even more of an asset for economic growth. To even greatly changed the way property is gust 2015 with booting Courser and ma of businesspeople, why stand by asset. Somehow I cannot imagine our consider closing it would be foolhardy. taxed and public education is funded Gamrat from o ce, researchers and let our state government be run mayor giving all the economic growth It deserves to be kept open, nurtured in this state. were discovering lead in Flint’s water with a constant churn of leadership to Oakland County and its airport in and promoted. Term limits serve to insulate supply. uncertainty? CRAIN’S DETROIT BUSINESS // MAY 8, 2017 7 Investing in children now benets all in the future At a corporate event this March, I sidering buying a new building at So many of the children the gym impoverished children we prevent discovered that former junk bond 6445 East Vernor Highway that would serves are trapped in the type of pov- them from growing into impover- king Michael Milken has now fash- become a permanent home. e rst erty that is cyclical, generational and ished adults. Coach and Jessica have ioned himself into one of the coun- time I walked in, there were tools and deeply psychological. ere are no had over 300 children pass through try’s leading advocates for medical debris everywhere, chemical stains silver bullets to remedy it. Youth de- their doors. 100 percent of them have research. During his speech, Milken on the oor, possible asbestos. But the velopment takes patience, good nu- graduated high school and over 95 made it clear that the health and edu- price was right. It was hard for me to trition, healthy bodies, academic percent of them have gone on to a col- cation of our children were the great- OTHER VOICES visualize how we could turn that support, accountability, encourage- lege or trade school. None are in a est threat facing the U.S. economy. Matthew Roling building into something special. ment and love. Michael Milken was penitentiary. None are homeless. I could not have agreed with him Now, the building has found a sec- de nitely onto something when he Capitalism and investing should Business development director, Rock more. ond life as an after-school program. spoke about bodily health, but for the be about acting for more than pro t. As the board chair for the Down- Ventures LLC; chairman of the board, Since purchasing and rehabbing the gym that’s a vitamin swallowed in When we recognize that investing in town Boxing Gym youth program, I Detroit Boxing Gym building, our budget, sta and enroll- support of academic health. our children is not only the right have seen the bene ts of investing in ment have grown several fold. We Beyond moral calls to act, ending thing to do, but also economically that health and education. sion and the visionaries toiling away. now serve almost 140 Detroit chil- poverty is about the economic bene t the smart thing to do, all of us will be e state of Michigan spends about In the fall of 2013, the gym was con- dren, with a waiting list of over 600. we receive. When we invest in helping richer for it. $2 billion a year on our department of corrections, about $45,000 per inmate and about $200 per year for every man, woman and child in our state — spent on prisons. Most researchers estimate the direct costs of homeless- ness are about $20,000 per person per year (medical bills, police, emergency response, temporary aid, etc.). Only about 60 percent of Detroit’s children graduate high school. About ATTENTION one in four African-American male dropouts are incarcerated. Wouldn’t it be so much better for all involved if we LOCAL TRAILBLAZERS: invested in vulnerable children and help them realize their full potential — thereby helping them become tax- LAST CHANCE TO payers themselves? Meanwhile, our budget at the boxing gym is about $5,000 per student per year. e boxing gym, open since 2005, NOMINATE! was founded by Coach Khali Sweeney — a man who saw a need in his community, and did what he could to ad- Crain’s Detroit Business is now seeking nominations for dress it. e gym provides Detroit’s its 2017 class of 40 under 40. We’re looking for today’s kids with a safe alternative to the streets. It’s much more than a place to brightest under 40 who continue to make their mark learn how to box. Here, kids can come within their company, their industry and their to train, study and meet accom- community. Winners will be proled in the plished adults who expand their ca- Oct. 2 issue of Crain’s and honored at an pacity to envision their future careers. Coach initially ran the gym with his awards event in November. personal savings. When those funds were exhausted, he sold anything and If you consider yourself a trailblazer everything else he had to keep the doors open. For a long period, the or have been inspired by one, gym was where he slept. Coach has we invite you submit a nomination never asked parents for money. to Crain’s 40 under 40. In 2010, Jessica Hauser visited the gym. Jessica, a cellist and PhD student at Oakland University, thought she was going to learn how to box. In- SUBMIT A stead, the visit became a pivotal mo- NOMINATION TODAY ment in her life. She saw how boxing at crainsdetroit.com/nominate spoke to the children. She saw how attentive and well-behaved they were, Nomination Deadline: May 17 and how they responded to Coach Khali. Jessica dropped everything and became the executive director of the gym. And in doing so, sold many of her own possessions — including her cello — to keep the gym aoat. An article by Sharon Luckerman in the Detroit Jewish News in 2012 made its way to my employer, Rock Ven- tures. Coach and Jessica came looking for help nding a permanent location for the gym. An old car wash near Eastern Market had housed the gym. e building was condemnable, the program was outgrowing it, and the landlord was dicult. Someone asked me to look into helping; they wanted a budget guy to look into the nancials. en it was my turn to visit the gym and fall in love with the mis- 8 CRAIN’S DETROIT BUSINESS // MAY 8, 2017

One Of The World’s Top Sandler Training Companies Shinola Detroit dives into audio with turntables, and headphones on way

By Kurt Nagl Learn how to create an ELITE team [email protected] to take your company to the next level! Shinola/Detroit LLC has a knack for things that spin. Featuring e hands of a watch, wheels of a Murray Feldman Gerry Weinberg Alana Nicol bicycle and now vinyl on a turntable. e company is expanding its audio division, launched in 2015 inside 1,500 square feet of space at the Shinola Detroit store in Midtown. Neighboring the store is Jack White’s WWJ CEO of President of ird Man Records, where the De- Business Editor Gerry Weinberg & Associates, Inc. troit native and former White Stripes front man opened a 10,000-square- If you’re a CEO, President or Business Owner, who is: foot vinyl pressing plant in Febru- • frustrated with unpaid consulting and how long it takes ary. to close business? “It makes sense to bring music back to Detroit,” said 38-year-old • unsure your existing salespeople have what it takes to Alex Rosson, a self-described audio- KURT NAGL/CRAIN’S DETROIT BUSINESS grow your company? phile heading up Shinola's audio Alex Rosson, 38, is a self-described audiophile heading up Shinola/Detroit LLC’s division since it started in 2015. audio division since it started in 2015. • disappointed that your vision isn’t met? “ ey had a vision and it aligned Wednesday, May 17th with what I was interested in. It was As Rosson explained his plans to “I come from the crazy audio- very grandiose and gave me free continue expansion of the division, phile world where it’s about music 11:30 AM – 2:00 PM reign.” a White Stripes record spun on a as a ritual bringing people together,” Andiamo Bloom eld Twp. Shinola moved audio operations Shinola Runwell Turntable in the he said. out of the store in February to the corner of the plant. e record play- He knows the high price limits his Investment: company's factory headquarters in er was a special edition for Black Fri- audience, but he said he’s not too Sponsored by Gerry Weinberg & Associates and WWJ Newsradio the A. Alfred Taubman Center for day, one of two turntables released worried about getting them o the Design Education building. Rosson in November and on sale at the shelf. “People will buy into the beau- To Register or For More Information, Visit: said he regrets moving out just as company’s store and website and ty and ease of setup, and it should be www.gerryweinberg.sandler.com or ird Man opened its vinyl plant, some audio retailers. ey took the last turntable you ever buy,” he Call (248) 353-4030 | RSVP Required but he still plans to partner with the about a year to develop, Rosson said. company eventually. at’s only one said. Rosson said his vision is far from Registration must be con rmed by a team member from line on a long list of objectives, e company doesn’t release rev- complete and the new factory is Gerry Weinberg & Associates, Inc. though. enue gures or client information, simply a stepping stone. He has an Rosson is from Los Angeles. In but Rosson said the factory produc- ambitious goal of moving the divi- 2008, he co-founded Audeze, where es 20-25 turntables per day and has sion into an old 20,000-square-foot he worked for seven years crafting so far produced 1,000. creamery at 634 Selden St. He said high-end headphones and building Rosson said 90 percent of the the company bought the space as the brand. After the company un- turntable assembly takes place in soon as he gave it the OK. Terms of derwent a round of investments, he the Shinola factory in Detroit, with the purchase and plans for build- said he was ready to move on. the rest assembled by American out were not available, though Ros- He now spends the majority of his Board Assembly in California. All of son said he is looking to move there time in Detroit, but travels back to the parts are top of the line, he said, in the next year and a half. the West Coast to keep tabs on the and they try to source as much in Also in the works are head- research and development arm of the U.S. as possible, but “inevitably, phones, Rosson’s bread and butter. Shinola’s audio division. e plan is we have to get parts overseas be- e Caneld line is expected to be to move the 12 employees in Los An- cause it’s environmentally and - available by the end of the year, Ros- geles to Detroit, where all opera- nancially responsible.” e leather son said, and at $1,000 a pair he ex- tions will be in one location. and decorative components are pects them to be the main revenue “A lot of people think we’re taking produced in Shinola’s leather facto- driver for the division. “Jewelry for advantage of the name,” Rosson ry. the ear,” he called them. said, referring to Detroit. “But I think e Runwell Turntable costs "We engineered it to last, hand se- Detroit needs that. It’s a message $2,500 and unlike many other re- lected every component with pur- Your trust. Your triumphs. that we got to do this together if cord players, it is “calibrated and op- pose, worked with the best, and we’re going to do it.” timized out of the box.” Rosson lik- built something very special," he We care about both. Again, it’s about taking one thing ens it to ne architecture. said of the audio products. "And at a time, Rosson said, gesturing at "Buildings and homes that are even when it was done, we weren’t. the factory oor, which seems tidy mass-manufactured and slapped We spent months ne tuning the We’re here to help. If you are in enough for everyone but him. He together begin to decay before the prole, revising it, perfecting it." VHDUFKRIñH[LEOHðQDQFLQJVROXWLRQV wears dark, thick-rimmed glasses paint is even done drying," he said. For now, the focus is on the turn- and a long black ponytail. He’s a "But look around you, there are table and convincing consumers IRU\RXUEXVLQHVVWDONWRXVDERXW perfectionist, a hi- end and ob- buildings in every direction in De- Shinola does audio, too, and does it sessed with delivering studio-quali- troit that have been here a hundred well. DVVHWEDVHGOHQGLQJ ty sound to listeners. years because of the people behind Larry Sanders, 61, of Detroit, “I like to run a tight ship,” he said. them, how they were engineered, works in the audio division’s quality “My plan — once I get a minute to how they were thought out, how assurance. He came from the leath- breathe — is to tap into Detroit’s they were built. ey have a soul and er department, where he had been music community.” they were built to last." for three years. He grew up around &RQWDFW0LNH6HPDQFRWRGD\ e new audio division is 5,000 at's what separates Shinola au- turntables and wanted to see “what square feet on the fourth oor of the dio from competitors, he said. makes them tick,” he said. A while (248) 658-1100 College of Creative Studies-owned For $1,500 the company also sells back he brought home a turntable KLWDFKLEXVLQHVVÀQDQFHFRP building, which along with the fth bookshelf speakers to pair with the he helped build at the factory, but oor makes up Shinola’s factory turntable. All the electronics and as- refrained from setting it up right headquarters. ere are 19 workers sembly for the speakers is handled away. at the audio plant, some of whom by American Board Assembly. It is “I’m saving it for the family to get Rosson recruited while others came all part of Rosson’s desire to control together,” he said. “ en I’ll put on from Shinola’s leather and watch di- and perfect his audience’s listening some Stevie Wonder or Fleetwood visions. experience. Ma c .” CRAIN’S DETROIT BUSINESS // MAY 8, 2017 9

One Campus Martius, con- structed in 2003, is owned by a 50-50 joint-venture between Dan Gilbert’s Bedrock LLC and De- troit-based Meridian Health, which purchased it from Compu- ware Corp. at the end of 2014 for $142 million.

COSTAR GROUP INC. This undated photo shows the northern portion of One Campus Martius where a large addition could be built. BEDROCK LLC Gilbert conrms plans for large addition to One Three generations and counting, on you. Campus Martius By Kirk Pinho For a family’s wealth to sustain ensuing generations, its capital has to grow and [email protected] Dan Gilbert con rmed that he its management must remain stable. The Family Oﬃ ce at Greenleaf Trust plans to build an addition to the One Campus Martius building downtown helps aﬄ uent families achieve those goals, and so many more. We capably where his Quicken Loans Inc. makes its headquarters. serve at every level of the wealth continuum, harnessing the most robust In an interview last week with Crain’s, Gilbert did not elaborate on technologies, sophisticated investment platforms, and comprehensive size or timeline for construction, but when asked about the potential for an reporting tools. All the while providing remarkably personalized service. addition to the 1 million-square-foot It’s no wonder Greenleaf Trust has grown to nearly $9B in assets under building he and Detroit-based Merid- ian Health purchased for $142 million advisement in just 18 years. We know family matters—in every meaning in 2014, he said, “I’d say you’re on the right path on that.” of the phrase. Give us a call to learn how we can serve yours. Crain’s reported in March that recent behind-the-scenes discussions had taken place about adding around 250,000 square feet to the building on its north side, according to one source. Two other sources con rmed discussions but did not know the size of the planned addition. e building at 1050 Woodward Ave., formerly the Compuware Corp. headquarters, has 15 stories of oce and retail space, but there is a northern section that is just three stories tall that could accommodate an addition. It would be one of several new building projects that Gilbert, who has emerged as the city’s most promi- nent landlord and developer in the last ve years, has in the works. Included in his development pipe- line is a $775 million project on the 2-acre site of the former J.L. Hudson’s department store immediately north of One Campus Martius and a two- block development immediately east of the building with oce and residential towers. In addition, he and Detroit Pistons owner Tom Gores plan a $1 billion Major League Soccer stadium and mixed-use development with three 18- to 28-story towers for oce, residential and hotel space on the site of the half-built Wayne County Consoli- dated Jail site. A 400 unit-plus residential development is underway in Brush Park and his team has also been in talks 34977 woodward avenue birmingham, mi 48009 greenleaftrust.com 248.530.6200 with General Motors Co. about a 10- acre development along the Detroit River. 10 CRAIN’S DETROIT BUSINESS // MAY 8, 2017 SPECIAL REPORT: CRAIN’S MICHIGAN BUSINESS

COURTESY OF SHORT’S BREWING CO. Short’s Brewing Co. is on track to brew 55,000 barrels of beer this year, up from 48,000 barrels last year and 39,000 in 2014. No stopping Short’s Cra beer powerhouse expects to brew 55,000 barrels this year

By Tom Henderson hou San Miguel, Spain’s largest brewery group, [email protected] in 2012. e association limits ownership by From humble beginnings, Joe Short has cre- larger brewers to a maximum of 25 percent for ated a craft beer powerhouse, with revenue ex- brewers to retain the craft designation. pected to jump from about $17 million last year When Short began brewing beer, he wasn’t to $20 million this year. thinking craft beer mini-empire, farm-to-table Short’s Brewing Co. is on track to brew dining or souvenir shops. 55,000 barrels of beer this year, up from 48,000 He was under the legal drinking age, and he barrels last year and 39,000 in 2014 in its con- was just thinking about getting beer. As a soph- tinually-expanding brewery in Elk Rapids, a omore at Western Michigan University, he tourist town on Lake Michigan north of Tra- made a practical decision: “It was easier to verse City. In nearby Bellaire, Short’s has a big make beer myself than nd someone to buy it and bustling brew pub as well as a popular for me,” said Short. restaurant and a retail store called Short’s “en, I wanted to make it drinkable. And Mart, where fans can buy Short’s-branded then I wanted to make it really drinkable,” said beer steins and glasses, golf shirts, hats, hood- Short, his old-fashioned handlebar mustache ies, jackets and T-shirts. seeming to extend his smile. About 7,500 barrels of Short’s beer will be Short liked brewing his own beer well distributed this year in Illinois, Indiana, Ohio, enough to leave college his junior year, subse- TOM HENDERSON/CRAIN’S DETROIT BUSINESS Pennsylvania and Wisconsin. Short’s employs quently getting jobs at breweries in Traverse Joe Short (le), Leah Short, and Scott Newman-Bale of Short’s Brewing Co. about 150 year-round and 200 in the summer. City, Jackson and Webberville. Depending on the de nition of what makes But he said it was at another job that he de- In 2002, Short, who was then 22, registered says Short. Only a small percentage are made at a brewer a “craft” brewer, Short’s is either No. 2 cided his love of beer, and brewing beer, might Short’s Brewing Co. as a business in Michigan. any one time. or No. 3 in Michigan. Bell’s Brewery Inc. is the actually become a career. He was working as a In 2003, he began renovating a 120-year-old Short’s wife, Leah, has the title of visionary. clear leader, with a capacity to brew one million bus boy at the Dockside, a popular bar and hardware store in downtown Bellaire, where he She created the restaurant menu and oversees barrels a year. Founder’s Beer in Grand Rapids restaurant on the western shore of Torch Lake opened his brew pub in April 2004 with a sev- deli operations. has capacity of about 900,000 barrels. near the tourist town of Alden, washing glasses en-barrel brewing system. (ere are 31 gallons Leah had been water-ski buddies with Joe But Short and others in the beer industry, in- and listening to two customers arguing philos- in a barrel.) and worked at a marina adjacent to the Dock- cluding the national Brewers Association, say ophy. One made a point that resonated with Short is CEO. e other title, his favorite, is side when he was washing dishes there. She Founder’s lost its craft brewery status when it Short: If you’re going to do something for a liv- creative engineer, with an emphasis on “cre- worked at the brew pub on a volunteer basis. sold a 30 percent stake of the company to Ma- ing, do something you enjoy. ative.” “We’ve got 400 beers in our portfolio,” SEE SHORT’S, PAGE 11 CRAIN’S DETROIT BUSINESS // MAY 8, 2017 11

SPECIAL REPORT: Microbiological CRAIN’S MICHIGAN BUSINESS Testing Services Analytical & FOOD | WATER | PHARMA | STERILITY | COSMETIC Chemical Testing

“Verifying Purity, With Value” FOOD TESTING ENVIRONMENTAL PERSONAL CARE PRODUCT & Micro Bio offers a wide MONITORING PHARMACEUTICAL TESTING variety of food testing Micro Bio provides services for Micro Bio offers Rapid Testing Service following FDA-BAM, USDA, monitoring your work process through our validated BD FACS AOAC/FSIS guidelines, environment and assists with Microcount flow-cytometer equipment, COURTESY OF SHORT’S BREWING CO. assuring you are provided designing an Environmental as well as traditional testing through Short’s makes beers in categories it labels as agship beers, specialty beers, the results on time, and Monitoring Program that can be USP compendia. CFR, cGLP and ICH seasonal beers, pub beers, private stash beers and imperial-series beers. within compliance. adapted to your HAACP plan. guidelines are followed. a stout; Black Cherry Porter; Blud- SHORT’S geon Yer Eye, a black IPA; Celestial Micro Bio FROM PAGE 10 Critter, a Belgium blonde ale; Choco- “I did random things in exchange late Covered Strawberry, a brown por- ISO/IEC 17025:2005 1925 W. Maple Road for food and beer,” she said. ter; Controversius Maximus, a double FDA Registered / Audited FEI # 100011551 Troy, MI 48084 Leah thought the summer of 2005 IPA; Empress Catherine, a Russian MDEQ Certified Laboratory # 9979 (248) 288-6098 would be her last in Michigan. e imperial stout; Key Lime Pie, a fruit Accreditation #77268 www.microbiollc.com plan was to go to graduate school in beer; and Twisted Cain, an American Montana, but she and Joe started dat- black ale. ing, she traded school for marriage As if making hundreds of beers and the beer business and began run- wasn’t diversication enough, in ning the brew pub in 2006. 2014, Short’s began selling 10 dierent In 2008, Short bought a former fac- ciders under the Starcut Ciders brand. tory in an industrial park on the out- e brewery has also diversied into skirts of Elk Rapids to expand opera- selling spent yeast to operators of tions and began shipping beer made wastewater treatment plants (the there the following March. Every label yeast eats microbes) and used grain to was axed by hand. Today, a $2 mil- local vintners to use as mulch. lion bottling line automates the bot- Short’s only setback came in 2012 tling and labeling process; the facility when Joe tried to buy a 100-year-old has undergone eight expansions and former Bech’s Mustard factory adja- now occupies about 25,000 square cent to the marina near downtown feet. Elk Rapids. He wanted to renovate the In 2004, Short’s brewed a total of building to create a second brew pub, 324 barrels. Today, it does that volume put in some public boat slips and help every two days. ere are about 13.8 incubate three food startups. cases of beer in a barrel, 55 six packs e Elk Rapids planning commis- and 331 bottles. sion held hearings but wasn’t swayed Scott Newman-Bale, who moved to either by Short’s plans or the crowds the U.S. from England in 1999, is a of supporters who showed up to voice partner and head of business devel- approval in 90 minutes of public com- opment. Short’s website says that ment. while Joe’s focus is “on the next big e commission turned down the thing to excite craft beer fans in Mich- proposal, and the morning after the igan,” Newman-Bale is “the guy who vote, a contractor leveled the old fac- found a way to fund such projects and tory. Today the site serves as a green make them nancially viable.” He is space. also treasurer of the Michigan Brew- “It’s not even nice grass,” said Leah. ers Guild. “ ey had their mind made up. Tony Hansen, who met Joe Short at ey didn’t want us there,” said Joe, a home-brew club meeting in 2006, is who said he had budgeted $1 million the head brewer. on the renovation. Short’s makes beers in categories it Elk Rapids’ loss was Bellaire’s labels as agship beers, specialty gain. e Shorts decided to expand beers, seasonal beers, pub beers, pri- there, instead. In December, Short Jessica Korda vate stash beers and imperial-series bought the former home of the An- beers. trim Review newspaper next door Flagship beers include Bellaire to his brew pub and began an ex- • Tickets Brown, an American brown ale; Hu- pansion that will add 150 seats to • Corporate Hospitality ma-Lupa-Licious, an India pale ale; the previous capacity of 208. ey Soft Parade, a fruit rye ale; and Space will also convert their original • Pro-Am Rock, a gluten-reduced American Short’s Mart retail store into a busi- • Sponsorship Opportunities pale ale. ness incubator after they move the Specialty beers include Alien Ein- store into a former pharmacy stein, a pale lager; Beach Wheat; Aor- downtown they are renovating. Visit volviklpga.com or call 734.707.0789 ta Ale, an amber ale; Bim Bam Boom, Twitter: @TomHenderson2 12 CRAIN’S DETROIT BUSINESS // MAY 8, 2017 CALENDAR DEALS & DETAILS WEDNESDAY, MAY 10 Reasonably Unreasonable: when rity presentation will dene the ACQUISITIONS & JJLighthouse of Oakland County, REinvest Michigan. 8-9:30 a.m. accommodating one employee dierent ransomware that exists MERGERS Pontiac, a nonprot organization for Troy Chamber of Commerce. Eco- disadvantages others; Religious and address how to avoid an at- JJLiberty Center One, Royal Oak, a emergency services, workforce de- nomic update: Paul Traub, senior Freedom Restoration Act: when do tack, what to do if hit and how to data center, acquired Zimcom Inter- velopment programs and long-term business economist, Federal Re- the employer’s religious beliefs be- protect a business. Speaker: God- net Solutions, Cincinnati, Ohio, a case management, has opened a serve Bank of Chicago – Detroit come a defense to discrimination frey Nolan, president, RIIS LLC, a cloud solutions provider. Website: 2,100-square-foot service center at Branch; Panel discussion to follow: claims? Management Education mobile and web development rm libertycenterone.com. 5850 Dixie Highway, Clarkston. Tele- Matthew Farrell, CEO, co-founder, Center, Troy. $75. Contact: Pamela based in Troy. Automation Alley, phone: (248) 620-6116. Website: Core Partners; Jennifer Nelson, Perkowski, phone: (313) 567-5921; Troy. Free for members; $20 non- CONTRACTS lighthouseoakland.org. chief business development o - email: pperkowski@nemethlawpc. members. Phone: (800) 427-5100; JJAmber Engine LLC, Detroit, a cer, Michigan Economic Develop- com; website: www.nemethlawpc. website: automationalley.com Quicken Loans company, a home NAME CHANGE ment Corp.; and Traub. Moderator: com furnishings services provider, has in- JJOh So Radio, Southeld, is now Daniel Duggan, vice president – Inforum 55th Annual Meeting tegrated with Protsystems, Colora- operating as Oh So Media Group. origination, Bernard Financial Automotive Roundtable: Staying Featuring Mae Jemison. 11:30 do Springs, Colo., a retail manage- e transition coincides with the Group. Altair Engineering, Troy. Relevant in a Time of Revolution- a.m.-1:30 p.m. May 25. Astronaut ment system provider. Websites: launch of Oh So Magazine, Oh So $25 members; $40.00 nonmem- ary Industry Transformation. 5-8 Mae Jemison, a scientist, doctor amberengine.com, protsystems. Photo Studio and Oh So Radio. Web- bers. Website troychamber.com p.m. May 17. Marketing and Sales and crew member on Space Shut- com. site: ohsoradio.com. Executives of Detroit. Panelists in- tle Endeavour, is the speaker. e UPCOMING EVENTS clude: Julie Martin, vice president Henry, Dearborn. $50 members; JJPublicCity PR LLC, Southeld, a NEW PRODUCTS Best Practices for Managing sales, Hella; Jim Seta, global vice $75 guests. Website: inforummich- public relations agency, has been re- JJGravity Software, Detroit, an ac- Competing Rights in the Work- president, automotive bearing igan.org. tained by the Ann Arbor Art Fair, counting software company, has re- place. 9 a.m-noon. May 16. sales, SKF USA - Automotive. Mod- Ann Arbor; Figure Skating in Detroit, leased its Revenue Recognition Nemeth Law PC. Attorneys will erator: Glenn Stevens, vice presi- Tech Takeover: Collaborative and Detroit, a youth development pro- module. e module enables com- discuss best practices for employ- dent, MICHauto, Detroit Regional Autonomous Robots: How Do You gram for Detroit girls; EHM Senior panies to recognize revenue and ex- ers in today’s charged workplace Chamber. Marriott, Southeld. $50 Use These Things? 8:30-10:30 a.m. Solutions, Ann Arbor, a health and penses in the period earned in ac- climate. Topics include: Policing member; $65 nonmember. Web- May 31. Automation Alley. Beh- human service organization; and cordance with IASB and FASB Politics: polarization in the work- site: www.msedetroit.org co-MRM, a technology distributor Amaze Travel, Northville, a travel standards. Website: go-gravity.com. place; Controlling the Conversa- and integrator, on how to success- agency. Websites: publiccitypr.net, tion: protected speech or hostile Tech Takeover: Ransonware Res- fully use new robotic tools in appli- theannarborartfair.com, gure- NEW SERVICES work environment? Culture Clash: cue Manual. 8:30-10:30 a.m. May cations including machine tend- skatingindetroit.org, ehmchoices. JJBNP Media, Troy, a publishing diversity decisions that divide; 24. Automation Alley. A cybersecu- ing, fabrication, quality inspection org, amazetravel.com. company, has launched Autono- and assembly. Automation Alley, mous Vehicle Technology, a brand Troy. Free for members; $20 non- JJQualitech, Bingham Farms, a dedicated to the business-to-busi- members. Phone: (800) 427-5100; technology integrator and software ness autonomous vehicle industry. website: automationalley.com reseller, has installed its hosted e rst stage of the launch is its new phone system at TrillaMed, Bing- website: autonomousvehicletech. Building a Consumer-Focused ham Farms, and Shamie Properties, com. Website: bnpmedia.com. Health Care System. 11:30 a.m.- Franklin. Website: qualitech.net 1:30 p.m. June 5. JJWalsh College, Troy, announced A Fee-Only Wealth Management Group Detroit Eco- JJBEET Analytics Technology, Plym- its new graduate degree program, nomic Club. outh, a manufacturing solution pro- Master of Arts in Business. Website: Mark Bertolini, vider, and KUKA, Augsburg, Germa- walshcollege.edu. chairman and ny, an automation supplier, have CEO, Aetna signed a value added reseller agree- Michigan’s #1 Financial Advisor* Inc., will dis- ment. Websites: beet.com, kuka. cuss his com. Deals & Details guidelines. Email thoughts on a [email protected]. Use 21st century EXPANSIONS any Deals & Details item as a model health care sys- JJLakehouse Studios, Brighton, a for your release, and look for the Mark Bertolini tem that is built digital media and design agency, appropriate category. Without Charles C. Zhang complete information, your item will ® around the consumer. Townsend opened at 32751 Franklin Road, CFP , MBA, MSFS, ChFC, CLU Hotel. $45 members, $55 guests, Franklin. Telephone: (248) 890-4848. not run. Photos are welcome, but we Managing Partner $75 nonmembers. Website: econ- Website: lhs-dmg.com. cannot guarantee they will be used. club.org. Charles has been ranked in the top 10 on Barron’s list of Top 100 Gender Equality in the U.S. and Independent Financial Advisors for the Workplace. 11:30 a.m.-1:30 2015 and 2016, and is currently Deadline extended for p.m. June 12. Detroit Economic the highest ranking fee-only NAPFA-Registered Financial Club. A discussion on the social Advisor on the list.** barriers which hold women back 40 under 40 nominations from participating more fully in the The deadline has been extend- workplace, and where progress has ed to nominate candidates for Winners will be been made; what the talent pipe- Crain’s 2017 class of 40 under 40, proled in the We Uphold a Fiduciary Standard line looks like across Fortune 500 which recognizes young achievers Oct. 2 issue of companies in the U.S., and how it based on factors such as financial 101 West Big Beaver Road diers by industry and how lead- impact and community leader- Crain’s and will be ers’ talent decisions impact gender ship. 14th Floor honored at the equality in the workplace. Motor- Past winners have started com- awards event in Troy, MI 48084 City Casino Hotel, Detroit. $45 panies, found success at a young members; $55 guests of members; age, established businesses and November. (248) 687-1258 or (888) 777-0126 $75 nonmembers. Website: econ- made nonprots stronger. e pro- club.org. gram has run annually since 1991. e deadline for nominees to ll Winners will be profiled in the out their forms is May 24. Oct. 2 issue of Crain’s and will be To make a nomination, go to www.zhangnancial.com Calendar guidelines. Visit honored at the awards event in www.crainsdetroit.com/nomi- crainsdetroit.com and click “Events” November. With more than 640 nate. Assets under custody of LPL Financial and TD Ameritrade. near the top of the home page. Then, alumni invited, the annual event Once nominated, nominees will click “Submit Your Events” from the brings together the current class receive an email with a link to the *As reported in Barron’s March 4, 2017. Rankings based on assets under management, drop-down menu that will appear. Fill with colleagues, clients, family form. revenue generated for the advisors’ rms, quality of practices and other factors. out the submission form, then click and friends to celebrate this For questions regarding the **As reported in Barron’s August 22, 2015 and August 27, 2016. Based on assets “Submit event” at the bottom of the achievement. awards or this nomination pro- under management, quality of practices, revenue that advisors generate for their To be eligible, nominees must gram, please contact Special Proj- firms, and other factors. For fee-only status see NAPFA.org. page. be 39 or younger as of Oct. 2, 2017. ects Coordinator Keenan Coving- More Calendar items can be found Minimum Investment Requirement: $500,000 in Michigan/$1,000,000 outside of Michigan. e deadline to nominate some- ton at [email protected] or at crainsdetroit.com/events. one has been extended to May 17. (313) 446-0417. CRAIN’S DETROIT BUSINESS // MAY 8, 2017 13

SPECIAL REPORT: THE QLINE 1863 into the Detroit Street Railway carhouse in 2007 study for the streetcar project. Aug. 4: Regular streetcar service begins in Highland Park at 5:56 a.m. February: John Hertel, CEO of the Regional July: The Kresge Foundation, the Hudson Detroit with eight horse-drawn cars 1976 Transit Coordinating Council, develops the Webber Foundation, Roger Penske and Dan operating on Je erson Avenue between A mile-long trolley line called Detroit concept for a 3.4-mile privately-funded light rail Gilbert agree to fund a study and preliminary Third Street and Elmwood Avenue. Fares Citizen’s Railway (later called the Detroit line on Woodward Avenue from downtown to plan by UDM and Deloitte & Touche LLP. were 5 cents. Downtown Trolley) was built on Washington New Center as the catalyst for a regional transit October: UDM’s “Woodward Transit Catalyst 1956 as tourist-shopping attraction that was part system. Project” study is presented to the e ort’s April 8: Detroit streetcar service ends, in CRAIN’S DETROIT BUSINESS of a revitalization e ort to turn are into a June: Hertel approaches University of organizers. It estimates construction at $103 favor of buses, when the No. 233 car pulls Trolleys from the 1970s-era line. pedestrian mall. It ended in 2003. Detroit Mercy about creating a feasibility million for a 3.4-mile line with 23 stations, QLine safety plans: Are they enough? M-1 Line zones The M-1 Line is a 6.6-mile Woodward loop with 20 stops and a dozen permanent stations between Grand Boulevard and Larned Street. Fi¦ een zones serve three parts of the city: New Center, Midtown and Downtown.

Zone CHANDLER ST.

15 M-1 RAIL TECH CENTER

NORTH END/NEW CENTER Fisher building Grand Station W. GRAND BLVD.

Amtrak Station 14 Amsterdam Station BURROUGHS 13 94 12 WOODWARD

Ferry Station 11 Detroit Institute of Arts

WARREN AVE. Warren Station CASS AVE. CASS

JOHN R ST.

10 MIDTOWN

CANFIELD Can£ eld Station

9 Max Fisher Music KURT NAGL/CRAIN’S DETROIT BUSINESS Center Martin Luther MLK JR./ MACK AVE. King Jr. Station The view from a recent test run of the M-1 Rail QLine, which took funders and government o cials around the 6.6-mile Woodward Avenue loop in Detroit. 8 WATSON Streetcar project in talks with city to hire transit o cers

Little 7 Caesars Arena to protect trains and stops, keep parked vehicles o tracks SIBLEY ST. Sibley Station By Bill Shea backed up by the city’s regular police 6 [email protected] and Wayne State University o cers, e safety plan for the QLine re- said M-1 COO Paul Child. e line 5 75 Foxtown Station mains a work in progress as the launches May 12 with free rides. For- streetcar system prepares to launch mal paid passenger service begins Fox Theater Comerica service on Friday. later in the month. 4 Park Until the system is running, it will e original plan was to use pri- remain unclear whether the plans vate security, but M-1 opted instead ADAMS Grand are enough. to use transit o cers because they Circus Grand Circus A last-minute issue remains polic- have police powers and connections Station DOWNTOWN Detroit ing. e nonpro t’s top executives to agencies such as Homeland Secu- Opera House told Crain’s last week that the system rity. Part of the deal with the city is is in talks with the city, which the getting language drafted that would 3 mayor’s o ce con rmed, to con- allow the transit police to ticket and

GRAND RIVER AVE. tract the transit police who patrol the tow vehicles parked on the streetcar GRATIOT Detroit People Mover. ey’d be tracks so that QLine trips aren’t de- MICHIGAN AVE. used, at times, aboard the streetcars Campus layed, M-1 said. e deal for transit Martius and would use a patrol car to police police services has been in the works Campus Martius the streetcar’s 6.6-mile loop of track KURT NAGL/CRAIN’S DETROIT BUSINESS “for some time” and is not a recent 2 Station W. FORT ST. on Woodward Avenue between New The QLine streetcars are 66 feet long and able to carry 125 passengers on average. change, said Dan Lijana, M-1’s top Center and Larned/Congress streets. They are air-conditioned, heated and come equipped with bike racks and Wi-Fi. spokesman. CONGRESS ST. Matt Cullen, CEO of the M-1 Rail Here’s what the o cers will han- 1 nonpro t that created the QLine, de- talks still are underway, but did say operating cost to more than $6 mil- dle: Each streetcar is expected to car- LARNED ST. Congress Station clined to say how much the transit it’s among the factors that have lion. ry about 125 passengers, and the sys- Source:M-1 Rail police might cost the system because pushed the line’s annual estimated e QLine o cers would be SEE SAFETY, PAGE 14 14 CRAIN’S DETROIT BUSINESS // MAY 8, 2017

SPECIAL REPORT: THE QLINE SPECIAL REPORT: THE QLINE with passengers carried in two streetcar-style with the city of Detroit’s “Detroit Transit June: M-1 Rail becomes part of the city’s trains powered by overhead electrical wires. Options for Growth” light rail project to Woodward Avenue Light Rail project. November: “The Regional Area Initial Link” create a 9.3-mile, $528 million line that August: The U.S. Department of Transpor- (TRAIL) is incorporated as a nonprot would run from Hart Plaza to the city limit at tation green-lights the rail project to organization to construct the Woodward Eight Mile Road. The goal is to be fully proceed with an environmental study. running by 2013. M-1 and its private funding Transit Catalyst Project. 2011 would construct 3.3 miles of the line, and Dec. 13: Crain’s breaks the news that Detroit 2008 the city would use bonds and other funding Mayor Dave Bing, Gov. Rick Snyder and U.S. Early 2008: Roger Penske becomes to pay for the service to the city limit. Secretary of Transportation Ray LaHood have chairman of the project’s board, and Dan Gilbert Granholm December: Federal legislation is enacted to reached an accord that would kill the city’s light Gilbert becomes vice chairman. street rail companies to receive state funds allow M-1 Rail’s private funding to serve as rail plan in favor of a proposed regional system of Feb. 25: Crain’s breaks the news of the and construct rail stops and other the local match for extension of the line. rapid-transit buses — a decision linked directly streetcar proposal. infrastructure on state-owned right-of-way. 2010 to the city’s looming takeover by a Snyder-ap- Matt Cullen becomes volunteer CEO of TRAIL. pointed emergency nancial manager. 2009 February: The U.S. Department of January: Gov. Jennifer Granholm signs KURT NAGL/CRAIN’S DETROIT BUSINESS March: TRAIL changes its name and Transportation awards a $25 million federal 2012 legislation that authorizes private funding of Roger Penske, chairman and CEO of Penske Automotive Group Inc., checks the view reincorporates as M-1 Rail. grant to the Michigan Department of Jan. 6: A hasty gathering of M-1’s backers a railway on Woodward Avenue. It permits from the QLine. He put $7 million toward the project. September: M-1’s board votes to cooperate Transportation for the combined rail project. and top elected ocials, including U.S. Sen.

SAFETY Quick QLine: Need-to-know FROM PAGE 13 JJThe line is a 6.6-mile Woodward loop with 20 stops between Grand Boulevard tem has been predicted by organizers and Larned Street. to ferry about 5,000 to 8,000 passen- JJBase fares will be $1.50 and end-to-end rides are predicted to take 22-25 gers on average per day. Rides are minutes as the streetcars will move at the speed of vehicle trac (35 mph). M-1 predicted to take 22-25 minutes as predicts 5,000-8,000 riders per day. the streetcars — powered by aerial electrical lines and by batteries — JJThe line’s hours, which could change as service demands ¢uctuate, will be 6 a.m. will move at the speed of vehicle traf- to 11 p.m. Monday-Thursday; 6 a.m.-midnight on Fridays; 8 a.m.-midnight on c (35 mph). Saturdays; and 8 a.m.-8 p.m. Sundays. Ocers also will be tasked with JJThe $142 million streetcar system is being paid for with a mix of public and security at the line’s 20 stations and private funding. to ensure vehicles aren’t parked on JJThe line, which operates mostly in a curbside layout using the second lane on the rails. Woodward, is powered by a mix of overhead electrical power lines and batteries in the streetcars. It operates 60 percent of the route on battery power. Safety planning JJThe six-car system is expected to operate as a pair of two-car trains during M-1 also continues to promote its regular operations, with the other two cars as backups or for use during safety education plan for pedestri- especially busy times downtown. Fewer cars may operate during o¥-peak ans, motorists, and cyclists who hours. must learn to share Woodward with JJThe three-piece articulated cars are 66 feet long and able to carry 125 10% up to six of the 66-foot-long, 44-ton passengers on average. There are 34 cloth seats along with a slew of loop handles streetcars. While the cars can top out for standing, mostly in the center portion of the streetcars, which are lower at SAVINGS during service at 35 mph, they can- either end. They’re air-conditioned, heated and come equipped with bike racks not stop on a dime. and Wi-Fi. Passengers enter from grade-level station platforms, and each side of For months, the nonpro t has When your business is more energy efﬁcient, it’s the streetcars has two large sliding doors. For safety, there are six internal conducted safety education meet- cameras whose footage is recorded, and four exterior cameras used by the driver also more proﬁtable—and DTE Energy wants to help ings and has pushed out videos to as navigation aids. help people learn about navigating JJThe streetcars also are equipped with “black boxes” similar to what’s found on make that happen. Take John Logiudice, owner the roadway with the streetcars. airliners. There are enclosed driver modules on either end of the car. The operators of Florentine Pizzeria, for example. DTE worked e best education, however, will will have a central digital screen that displays information about the status of the be actually seeing the vehicles in ac- with him to make some small changes that led cars, a radio, horns and the usual controls equipped on transit vehicles. tion, Lijana said. He said hundreds to big savings. Simply installing a programmable of people have attended QLine safe- thermostat, sink aerators, LED lights and a pre- ty brie ngs. quickly get messaging out, and use “ere’s nothing that beats the ex- of social media for near real-time rinse spray valve in the kitchen saved John around perience of seeing the actual street- updates. 10% a month on his energy bill. car out on the street,” he said. Overall, streetcars have the fewest One local transit advocate worries fatal incidents by rail mode, accord- If you’d like to manage energy use to save money that the QLine safety outreach eort ing to 2007-13 statistics compiled by may not be enough. the Federal Transit Administration at your business, visit dteenergy.com/savenow. “I still think there’s a fair bit that and published in December. In that needs to be done to ensure people time, just nine deaths were attribut- that come into the corridor are fa- ed to streetcar incidents out of 968 miliar with the QLine enough for rail fatalities, the data shows. safety,” said Megan Owens, execu- e entire American streetcar tive director of Detroit-based Trans- system as a whole averaged 148 in- portation Riders United, which pro- juries per year in that same time moted transportation access and frame, according to the report, sig- mobility in the metro area. ni cantly below heavy rail (203) and It also remains to be seen if the light rail (280). QLine has done enough to tell the Federal data measures rail “events” public, including delivery services, per every 100 million miles of revenue to not park on the tracks. Vehicles service, and by that metric U.S. street- continue to be towed from the rails. cars as a whole averaged just 166 incidents annually from 2007-13, far be- Accident data low light (498) and heavy rail (312). e streetcar event rate declined year- Every transit system eventually ly beginning in 2008. has accidents, including fatalities. e FTA de nes “events” as colli- M-1 said it has plans in place to deal sions, injuries, deaths, accidents, de- with incidents, as required by law. railments, and evacuations. at includes communicating with Portland’s modern streetcar sys- the public, businesses, and media to tem, opened in 2001 and responsible CRAIN’S DETROIT BUSINESS // MAY 8, 2017 15

SPECIAL REPORT: THE QLINE with the city of Detroit’s “Detroit Transit June: M-1 Rail becomes part of the city’s Carl Levin, meets at Mayor Dave Bing’s oce Options for Growth” light rail project to Woodward Avenue Light Rail project. to discuss the proposal to kill the city’s light create a 9.3-mile, $528 million line that August: The U.S. Department of Transpor- rail plan. LaHood gives M-1 90 days to would run from Hart Plaza to the city limit at tation green-lights the rail project to convince Washington of the merits the Eight Mile Road. The goal is to be fully proceed with an environmental study. streetcar plan. M-1 has to convince running by 2013. M-1 and its private funding Washington, along with the city and state, 2011 would construct 3.3 miles of the line, and that the system can be built and operated Dec. 13: Crain’s breaks the news that Detroit the city would use bonds and other funding at its estimated costs. It spends the rest of Mayor Dave Bing, Gov. Rick Snyder and U.S. to pay for the service to the city limit. the year doing so via a series of reports. Secretary of Transportation Ray LaHood have December: Federal legislation is enacted to reached an accord that would kill the city’s light November: The Legislature creates the allow M-1 Rail’s private funding to serve as rail plan in favor of a proposed regional system of Regional Transit Authority of Southeast the local match for extension of the line. rapid-transit buses — a decision linked directly Michigan, which eventually is intended to take public control of M-1 Rail. 2010 to the city’s looming takeover by a Snyder-ap- Jocelyn Benson pointed emergency nancial manager. February: The U.S. Department of 2013 Keynote Speaker Transportation awards a $25 million federal 2012 Jan. 18: LaHood announces a $25 million CEO, RISE grant to the Michigan Department of Jan. 6: A hasty gathering of M-1’s backers grant for M-1 Rail, the nal piece of funding Transportation for the combined rail project. and top elected ocials, including U.S. Sen. necessary for the project to move ahead. THURSDAY, MAY 18 6:00 PM SAFETY Quick QLine: Need-to-know FROM PAGE 13 JJThe line is a 6.6-mile Woodward loop with 20 stops between Grand Boulevard tem has been predicted by organizers and Larned Street. Join us to help celebrate women whose to ferry about 5,000 to 8,000 passen- JJBase fares will be $1.50 and end-to-end rides are predicted to take 22-25 achievements in the ﬁ eld of communications we gers on average per day. Rides are minutes as the streetcars will move at the speed of vehicle trac (35 mph). M-1 recognize and honor! predicted to take 22-25 minutes as predicts 5,000-8,000 riders per day. the streetcars — powered by aerial electrical lines and by batteries — JJThe line’s hours, which could change as service demands uctuate, will be 6 a.m. Enjoy a silent rafﬂ e and dinner at the Plum Hollow will move at the speed of vehicle traf- to 11 p.m. Monday-Thursday; 6 a.m.-midnight on Fridays; 8 a.m.-midnight on Country Club while meeting and connecting with c (35 mph). Saturdays; and 8 a.m.-8 p.m. Sundays. women from metro Detroit who are part of the Carol Cain Ocers also will be tasked with JJThe $142 million streetcar system is being paid for with a mix of public and communications community. Hope we see you there! Emcee security at the line’s 20 stations and private funding. Producer, Reporter to ensure vehicles aren’t parked on JJThe line, which operates mostly in a curbside layout using the second lane on the rails. Woodward, is powered by a mix of overhead electrical power lines and batteries For more information about the event, visit us atwomcomdetroit.org in the streetcars. It operates 60 percent of the route on battery power. Safety planning Tickets are available at eventbrite.com JJThe six-car system is expected to operate as a pair of two-car trains during M-1 also continues to promote its regular operations, with the other two cars as backups or for use during safety education plan for pedestri- especially busy times downtown. Fewer cars may operate during o¢-peak ans, motorists, and cyclists who hours. must learn to share Woodward with JJThe three-piece articulated cars are 66 feet long and able to carry 125 up to six of the 66-foot-long, 44-ton passengers on average. There are 34 cloth seats along with a slew of loop handles streetcars. While the cars can top out for standing, mostly in the center portion of the streetcars, which are lower at during service at 35 mph, they can- either end. They’re air-conditioned, heated and come equipped with bike racks not stop on a dime. and Wi-Fi. Passengers enter from grade-level station platforms, and each side of For months, the nonpro t has the streetcars has two large sliding doors. For safety, there are six internal conducted safety education meet- cameras whose footage is recorded, and four exterior cameras used by the driver ings and has pushed out videos to as navigation aids. help people learn about navigating JJThe streetcars also are equipped with “black boxes” similar to what’s found on the roadway with the streetcars. airliners. There are enclosed driver modules on either end of the car. The operators e best education, however, will will have a central digital screen that displays information about the status of the be actually seeing the vehicles in ac- II WantWant ToTo cars, a radio, horns and the usual controls equipped on transit vehicles. tion, Lijana said. He said hundreds of people have attended QLine safety brie ngs. quickly get messaging out, and use for what transit insiders say is the “ere’s nothing that beats the ex- of social media for near real-time current streetcar boom, averaged perience of seeing the actual street- updates. nearly an accident a week in 2013- LiveLive InIn car out on the street,” he said. Overall, streetcars have the fewest 14, according to an analysis by Ore- One local transit advocate worries fatal incidents by rail mode, accord- gonLive.com. None were fatal, and that the QLine safety outreach eort ing to 2007-13 statistics compiled by few were the fault of the streetcars. may not be enough. the Federal Transit Administration Portland was running 13 streetcars, “I still think there’s a fair bit that and published in December. In that more than double Detroit’s eet. Michigan!Michigan! needs to be done to ensure people time, just nine deaths were attribut- Cincinnati, which is the newest that come into the corridor are fa- ed to streetcar incidents out of 968 U.S. streetcar system and the one I am the President of a $2B division of a $14B global corporation. I am miliar with the QLine enough for rail fatalities, the data shows. most similar to the QLine, saw 10 acci- interested in continuing to grow my career, but the next promotion requires safety,” said Megan Owens, execu- e entire American streetcar dents during testing and rst few a move out of state. But I WANT TO LIVE IN MICHIGAN! So I am launching tive director of Detroit-based Trans- system as a whole averaged 148 in- months of service, Cincinnati.com re- a job search. portation Riders United, which pro- juries per year in that same time ported. e system in September moted transportation access and frame, according to the report, sig- launched a 3.6-mile line with ve ve- mobility in the metro area. ni cantly below heavy rail (203) and hicles at a cost of $148 million. My responsibilities include 10,500 employees and a sales force of 600 It also remains to be seen if the light rail (280). In its rst three months of testing across North America. I personally manage our 12 largest and most QLine has done enough to tell the Federal data measures rail “events” beginning in October 2014, the Wash- strategic customers. A list that includes some of the largest and highly public, including delivery services, per every 100 million miles of revenue ington, D.C., streetcar line sustained respected companies in the U.S. to not park on the tracks. Vehicles service, and by that metric U.S. street- nine accidents, NBCWashington.com continue to be towed from the rails. cars as a whole averaged just 166 inci- reported. e only incidents during dents annually from 2007-13, far be- QLine testing were a few clipped mir- I am known as an outstanding leader and strong business strategist, with Accident data low light (498) and heavy rail (312). rors on vehicles parked too close to the a unique ability to drive process and accountability that yield high customer e streetcar event rate declined year- tracks, and one streetcar had a camera loyalty and consistently strong nancial results. Every transit system eventually ly beginning in 2008. clipped, Childs said. has accidents, including fatalities. e FTA de nes “events” as colli- A message was left with the De- M-1 said it has plans in place to deal sions, injuries, deaths, accidents, detroit Department of Transportation If you think I may be able to help lead your organization to new heights, let’s with incidents, as required by law. railments, and evacuations. seeking the agency’s bus accident talk. Please leave a message at (734) 892-5820. I will get right back to you. at includes communicating with Portland’s modern streetcar sys- rate numbers for 2016. the public, businesses, and media to tem, opened in 2001 and responsible CONTINUES ON PAGE 16 16 CRAIN’S DETROIT BUSINESS // MAY 8, 2017

SPECIAL REPORT: THE QLINE April: M-1 Rail gets its required federal and general contractor. Detroit-based White at a cost of $6.9 million. It’s used for the environmental clearance to proceed. Construction Co. is subcontracted by Stacy line’s maintenance, storage and operations. and Witbeck to work on the project. July 18: The City of Detroit les for Chapter June 30: M-1 signs ve-year, $15.5 million 9 bankruptcy protection. Dec. 20: Initial prep work begins. deal with Lombard, Ill.-based Transdev Services Inc. to operate the QLine. July 20: Alameda, Calif.-based civil 2015 Sept. 12: The rst streetcar arrives in Detroit. construction rm Stacy and Witbeck Inc. wins June 8: M-1 signs a $32 million deal with On-street testing begins not long aer. the bid to become M-1’s construction manager Brookville, Pa.-based Brookville Equipment Corp. for six streetcars, spare parts and Nov. 8: Voters narrowly reject a regional support services. transit tax that would have funded QLine operations starting in 2024. 2016 Dec. 1: Track construction ends and QLine name is formally unveiled. March 24: Woodward formally reopens in its entirety. Quicken Loans Inc. paid $5 million in 2014 for the naming rights. 2017 QLine service is scheduled to begin. CRAIN’S DETROIT BUSINESS May 2: The 19,000-square-foot Penske May 12: The nal piece of the QLine track is Technical Center that will be the central KURT NAGL/CRAIN’S DETROIT BUSINESS Sources: M-1 Rail, detroittransithistory.info, welded into place in November 2016. nervous system of streetcar system opens The Penske Technical Center serves as the nerve center of M-1 Rail QLine. state of Michigan, Crain’s research

Accident plans rm Transdev Services Inc., the sys- to four regular streetcars in use with tem said. M-1 in January 2016 signed a fth when necessary, and the nal Additionally, to get a transit sys- a ve-year, $15.5 million contract car will be on the road during big tem operator license, M-1 has had to with Transdev to run the QLine. events. conduct emergency drills, and put in As part of its bid to avoid mishaps, “We’re new and we’re going to place reporting procedures for the M-1 isn’t launching at a full-service start o slow, and we’re going to do it state and federal government. capacity on Friday, Child said. right and pay attention to safety,” While state and federal transit Instead, the system will take six to Child said. laws don’t require the QLine system nine months to ramp up operations In addition to having its own se- to carry insurance, the city mandat- so that it has time to work out any curity force, and being connected to ed that M-1 carry $50 million in acci- kinks, get a sense of passenger needs the city’s police, re, and EMS ser- dent insurance and to indemnify the and allow the public to get used to vices, the QLine cars themselves are city against any liability, Child said. sharing the road with the streetcars, equipped with safety equipment, an at was accomplished via a $50 he said. on-board camera system and “black million commercial general liability Initially, the line is expected to be- boxes” similar to the accident-re- insurance policy through the QLine’s gin with three of its six cars in morn- cording devices used on aircraft. third-party operator, Lombard, Ill.- ing service, and use four during peak Bill Shea: 313 (446-1626) KURT NAGL/CRAIN’S DETROIT BUSINESS based transportation management hours. at eventually will increase Twitter: @Bill_Shea19 Exterior shot of the QLine, which opens to the public on May 12.

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Building the electric transmission infrastructure that will power the future. www.itc-holdings.com CRAIN’S DETROIT BUSINESS // MAY 8, 2017 17 SPECIAL REPORT: SECOND STAGE Perks at work Inside this section: In this month’s Second Stage, Crain’s talked to three di erent companies for advice, tips and tactics they’ve used to improve retention rates. n Looking toward tomorrow: Company gives employees a vision for the long-term, this page n Prot sharing: Giving back to employees when times are good, Page 18 n Feeling valued: A concierge service to improve employees’ work-life balance, Page 19 n Losing employees? PHOTO BY LARRY PEPLIN You may be Ewa Matuszewski (le), Mark Lazar, Andrew making these Kurezk, Erica Ross, Kathryn Correll and common Samantha Michalak of MedNetOne Health mistakes, Solutions in Rochester. Page 19

“We would just get through train- Companies o er ing, and we began losing people to other companies locally who needed Firm gives its employees tips, advice for individuals with the skills that we prepared our employees with,” Ewa retaining talent Matuszewski, CEO and co-founder a vision for the long-term By Rachelle Damico said. Special to Crain’s Detroit Business Once employees are on board, By Rachelle Damico As the economy improves, many make sure there is a development Special to Crain’s Detroit Business “We’re in a changing employers are nding employee re- program in place. Employers may To keep your employees today, you need to give society, and we need to tention to be an increasing chal- balk at spending money on develop- them a vision for tomorrow. have individuals that are lenge. ment activities, or taking the time to at’s what Ewa Matuszewski learned when she “It’s an issue where the economy create a career path for an employee, was trying to solve her company’s retention prob- willing to innovate, is especially hot,” said David but the cost tends to be lower than lem. transform and lead that Haviland, founder of Phimation the time and money spent on train- Matuszewski is co-founder and CEO of Med- Strategy Group, an Ann Arbor-based ing and hiring a new employee. NetOne Health Solutions. She said the organization change.” consultancy that focuses on sec- “Generally, the cost of nding a made changes to its hiring process after struggling Ewa Matuszewski ond-stage businesses. new employee is sustainably more to keep employees. “e marketplace is more com- than the cost of keeping an employ- “We would hire, and within a period of 18-24 University’s School of Health Sciences master of petitive than it has ever been, and ee,” Haviland said. “ere’s a great months we’d lose folks that we thought would stay public health program and Madonna University’s everybody has employees jumping return on investment case to be with the company for many years, if not forever,” undergraduate population health program. ship at a rate higher than they were made for retention programs, espe- Matuszewski said. “ey’d be out the door joining e organization also made changes to the inter- before.” cially if they’re focused on key posi- our competitors or moving on to other organiza- viewing process. Today, candidates are interviewed Companies that have high turn- tions and key performers.” tions.” by a team of potential peers rather than with HR. over rates during or shortly after the Employers should also consider e Rochester-based member service organiza- “It’s the folks the prospective employees will be hiring process should make sure becoming more aggressive with tion provides technical, infrastructure and clinical working with,” Matuszewski said. “You have to t prospective employees are a cultural compensation, or consider other in- support to about 800 physician members. Med- into the culture and the activities that are requiring fit. Haviland said that means making centives, such as work exibility or NetOne has 48 employees. your assistance.” sure they are aligned with the com- gym memberships. e company began making changes to improve Prospective employees are asked about their pany’s purpose and that the compa- “Happy wife happy life, it’s the retention about 10 years ago. long-term goals, their ambitions within the company can take the prospective employ- same thing for employees,” said Polly To adapt to the changing healthcare industry, ny and where they see themselves in ve years. ee where they want to go in the Swingle, co-founder and co-owner MedNetOne began looking for candidates with “We’re in a changing society, and we need to have future. of e Recovery Project, a Livo- knowledge in public and population health and individuals that are willing to innovate, transform Rochester-based physicians net- nia-based rehabilitation center. quality improvement strategies. Previously, the or- and lead that change,” Matuszewski said. “Every em- work MedNetOne Health Solutions “ey buy into the mission and what ganization hired individuals who had a clinical de- ployee wants to know if there’s a tomorrow, and how struggled to retain employees until we want our company to be like be- gree in nursing. And to recruit candidates, Med- they t into that process.” they changed their hiring process. cause they’re happy.” NetOne began a collaboration with Oakland SEE VISION, PAGE 18 18 CRAIN’S DETROIT BUSINESS // MAY 8, 2017

SPECIAL REPORT: SECOND STAGE Giving back to employees when business is good By Rachelle Damico Parkhill said the company sur- Special to Crain’s Detroit Business “It is important prised employees with Apple e Recovery Project, a physical for our employees watches and oered the team their and occupational therapy provider, to get together own customized Nike tennis shoes. rewards employees when the busi- “If we hire right, take great care ness is doing well, an eort owners outside of the of our employees and keep them and co-founders Polly Swingle and workplace to have happy, they’re going to do a great Charles Parkhill believe has had the job with our client group,” Parkhill biggest impact on retention. opportunities to said. “If we take care of them right, “Our promise since we started be social and then they’ll take care of our clients the company is that pro ts would right.” be shared,” Parkhill said. “If we’re enjoy each other’s In addition to gifts, e Recovery doing well we always try to give company outside Project started a dining program back to our employees.” of the clinic.” this year which allows employees e Livonia-based company em- to be reimbursed twice a year for a ploys 60 and has an additional lo- Polly Swingle dinner up to $125 for themselves cation in Clinton Township. and a guest. Parkhill said e Recovery Proj- tention,” Swingle said. To promote wellness, Swingle ect has awarded employees bonus- Last year, Parkhill said he and said employees are also reimbursed es or given gifts spontaneously Swingle discussed tactics to main- up to $25 a month to use on well- such as Apple iPads, at-screen TVs tain favorable retention rates after ness activities, such as yoga, cycling or Tigers tickets. noticing other rms were hiring. or a massage. e company has lost only about “e economy is getting better, “We’re a rehab center, so we’re six employees since it was founded and we have to think about these always talking about staying 14 years ago. things,” Parkhill said. healthy,” Swingle said. “We’ve been very fortunate to Since 2016 was a strong nancial Swingle said e Recovery Proj- Polly Swingle and Charles Parkhill , co-founders of The Recovery Project, a physical not really have to worry about re- year for e Recovery Project, ect is also in the process of plan- and occupational therapy provider, reward employees when the business is doing ning group wellness activities for well as a way to improve employee retention. team members which will occur three to four times per year. For in- Swingle said is important to the also makes the value of our compa- stance, Swingle and another in- company’s team that includes ny so much higher if we have these structor will teach a yoga class and physical therapists, speech thera- employees that are very knowl- provide pizza, beer and wine. pists and occupational therapists edgeable with the newest tech- “It is important for our employ- — all of which require continuing niques and the science behind ees to get together outside of the education to maintain their licens- what they do,” Swingle said. workplace to have opportunities to ing. Swingle said these eorts keep be social and enjoy each other’s e company also pays for em- employees happy, which she said is company outside of the clinic,” ployee association dues to encour- the key to retention. Swingle said. “Sponsoring wellness age employees to become mem- “If you have a happy employee, activities outside of the clinic helps bers of their professional the work that they’re going to pro- improve our sta’s overall quality associations. vide for you is going to be at a better of life.” “We feel as a company that this is quality,” Swingle said. “ey’re go- Employees are also incentivized critical because it makes their cusing to provide and be more reliable, for continuing education, an aspect tomer service so much better, and it accountable employees.”

TOP GRADUATE “He has the ability of designing the good of the company. VISION coaching-like team-based ap- “I don’t have to be number one all FROM PAGE 17 proaches to our organization,” Ma- the time,” Matuszewski said. “I will PROGRAMS Matuszewski also recommends tuszewski said. She realized that al- provide the environment and the letting new employees know that lowing people to pursue projects opportunity for our newer sta to they’re not just there for the short- outside of work can bene t the com- show that they have the ability of Set yourself apart term, but to help the company grow pany. It “has been really positive,” leading a team or designing a proj- — and that their engagement in that she said. e c t .” Separate yourself from the crowd by earning a growth is key. e organization also adapted Allowing employees to develop graduate degree from Grand Valley. With 38 master’s Before the company revamped its employee bene ts and incentives. themselves professionally is anoth- and doctoral programs, we oer the degree you need approach to retention, employees Employees are incentivized mon- er strategy Matuszewski said is cru- to advance your career, increase earnings, and enhance left “because they really didn’t know etarily or with additional ex time cial for retaining employees. your job satisfaction. Programs deliver a unique blend what they’d be doing with us tomor- for meeting certain types of projects MedNetOne employees are in- of theoretical knowledge, practical experience, and row,” she said. “Now, we’re very clear or targets they have identi ed indi- centivized for developing them- professional networking here in West Michigan that in our mission and our vision in how vidually or as a team. selves professionally outside of the no other university can match. And, you’ll beneﬁt from every employee ts into the tomor- “We’re not able to meet the salary oce. For instance, MedNetOne has row of our company.” targets that Beaumont or Detroit paid for employees’ online classes, Grand Valley’s respected reputation among employers, MedNetOne also moved away Medical Center can reach, but we or have reimbursed employees for convenient campuses, aordable tuition, and diverse from strict set working hours and can ensure them that if they take obtaining a certi cation. e orga- educational opportunities. gave employees more exibility, fo- certain targets, we would be able to nization also has a budget for the Set yourself apart. Contact The Graduate School at cusing instead on making sure em- provide them with incentives that sta to maintain their professional (616) 331-7105 or [email protected] for more ployees complete projects and would allow them to have that job certi cation status. information or help getting started. Spring classes achieve goals. satisfaction and ... job security,” Ma- “One of my biggest investments For instance, Mark Lazar, Med- tuszewski said. has always been in education,” Ma- start May 2017. NetOne’s director of corporate af- Encouraging employees to man- tuszewski said. “Learning is key to fairs, needed time o this year to age projects also allows employees the success for any organization.” coach the U.S. men’s curling junior the opportunity to take the lead and Due to these eorts, Matuszewski national team. (e team won a sil- grow, Matuszewski said. at re- said the organization’s retention ver medal at the 2017 World Junior quired a personal change, she said. rate has gone up by 60 percent. In Championships in South Korea.) “It was really dicult for me to let addition, all employees hired in the While overseas, Lazar continued my guard down,” Matuszewski said. past four years have stayed with the gvsu.edu/gs to oversee MedNetOne projects and “I was indeed one of those very pre- company, and in the past three coach the organization’s team by scriptive people.” Since then, she years, 100 percent of the interns phone and e-mail. has learned to take a step back, for have stayed. CRAIN’S DETROIT BUSINESS // MAY 8, 2017 19

SPECIAL REPORT: SECOND STAGE Losing employees? You may be making these common mistakes A concierge service to improve By Rachelle Damico pecially with key positions. Special to Crain’s Detroit Business David Haviland, founder of Ann 2. You are not employees’ work-life balance Arbor-based consultancy Phima- challenging your tion Strategy Group, said sec- employees. By Rachelle Damico “We work hard to set our ond-stage businesses that are los- Special to Crain’s Detroit Business ing employees are likely making “ey’re just asking employees Would employees have an easi- culture so that people feel these two common mistakes: to do the job, and they’re not er time focusing at work if they valued, appreciated and thinking about it from the employ- weren’t worried about everyday 1. You haven’t looked at ee perspective of where the em- errands, like picking up dry clean- they know that we respect your compensation ployee wants to go in their career ing? them for the work that they structure regularly. and where they’re looking for — Michigan First Credit Union not just today or next week — but hired a third-party concierge ser- bring.” Companies that do not pay at- in the future,” Haviland said. vice to help employees save time, Patty Jones, Michigan First Credit Union tention to what their competitors “One of the best retention tools stay focused and enjoy their time are oering risk losing employees is giving employees really fun, in- off more, said Patty Jones, chief concierges and introducing them when they go home they can spend to the competi- teresting, great work to do.” human resource officer at Michi- to employees. good quality time with their fami- tion. Haviland said this can be chal- gan First. “We asked them to provide us ly,” Jones said. “ey hav- lenging for companies because “We really feel that our invest- with a concierge who would match In addition to the concierge ser- en’t looked at they want to give employees the ment in our team members from our culture and be able to do great vices, Jones said other initiatives their composi- same type of work repeatedly to be an attraction and retention stand- work for our team members,” Jones have led to retention. The compa- tion structure more productive and ecient, but point is so critical,” Jones said. “We said. ny implements team building ex- regularly, and it can bore employees and they want to make sure our team mem- Employees sign up for the con- ercises twice a year, has a leader- they’ve gotten may grow unhappy with their bers feel that they’re always valued cierge free of charge to help with ship program for developing talent out of sync with work. and appreciated for the service chores such as taking their cars in and offers other perks like Red what the mar- “What employees, and espe- they provide.” for regular maintenance or picking Wings and Tigers tickets, gift cards David Haviland: ket rates are,” cially millennials are often looking Michigan First has 17 branches up prescriptions. to restaurants and a free on-site Employees leaving Haviland said. for, is that the work itself is new, throughout the state and 300 em- Jones said it has saved employ- gym at their main branch location a wakeup call. “en it’s a changing and challenging for ployees. ees about 200-250 hours per month available for all employees to use. wakeup call them,” Haviland said. About two years ago, the Lath- for all the organization’s team “We work hard to set our culture when people start noticing they’re Haviland suggests having the rup Village-based credit union re- members, and ve or six hours a so that people feel valued, appre- leaving.” management team cross training ceived an e-mail from Cincinna- week of her own personal time. ciated and they know that we re- To retain employees in an in- employees and look for new peo- ti-based concierge service “Our team members will benefit spect them for the work that they creasingly competitive market, ple to do assignments, as opposed organization Best Upon Request. from being able to focus at work bring,” Jones said. “We truly be- Haviland said employers should be to the same people that have done Michigan First hired the organiza- and being able to provide a little lieve that the most critical compo- aggressive with compensation, es- the same type of work repeatedly. tion after meeting with one of their more balance in their life so that nent of our success is our people.”

EY names Michigan, northwest Ohio region Entrepreneur of the Year nalists By Tyler Cliord J Steve Peacock, owner, Pro-Vi- tcli[email protected] This is the sion Video Systems, Bryon Center EY has chosen its Michigan and program’s 31st J Chris Rizik, CEO, Renaissance northwest Ohio region nalists for year, which now Venture Capital Fund, Ann Arbor the Entrepreneur of the Year 2017 J Barry Spilman and Peter Osten, Award. recognizes leaders co-founders, RPM Freight Sys- Award winners will be an- in more than 145 tems, Royal Oak nounced at a gala at the Detroit In- J Mike Jennings, CEO, Secure-24 stitute of Arts on June 21. cities and more LLC, Southfield Honorees are recognized for in- than 60 countries. J Royce Neubauer, CEO, Service novation, nancial performance First Logistics Inc., Auburn Hills and personal commitment to their J Damien Rocchi, CEO, Grand Cir- J Molly MacDonald, founder, The businesses and communities, cho- cus Detroit, Detroit Pink Fund, Bloomfield Hills sen by a panel of independent judg- J Je Grasman, president, Grand J Birgit Klohs, president and CEO, es. is is the program’s 31st year, Equipment Co., Hudsonville The Right Place Inc., Grand Rapids which now recognizes leaders in J Lon Oenbacher, president and J Phil Brabbs, co-founder, Torrent more than 145 cities and more than CEO, Inteva Products LLC, Troy Consulting LLC, Ann Arbor 60 countries. J Wade Wyant, president and CEO, J Jason Vazzano and Kurt Steck- J Jan Akervall and Sassa Akervall, ITS Partners, Grand Rapids ling, co-founders, Vectorform LLC, president and CEO respectively, Ak- J Matthew O'Bryan, president and Royal Oak ervall Technologies Inc., Saline CEO, KLA Laboratories Inc., Dear- J Carla Walker-Miller, president J David Dauch, chairman and CEO, born and CEO, Walker-Miller Energy American Axle & Manufacturing J Brad Oleshansky, founder and Services LLC, Detroit Holdings Inc., Detroit CEO, M1 Concourse, Pontiac Regional award winners can be J Adrienne Way, owner and CEO, J Brent Parent – Material Handling considered for EY's Entrepreneur Edcor Data Services LLC, Troy Services LLC, Perrysburg, Ohio of the Year national awards, which J Denise Crawford, president and J Doug Armstrong, CEO, North Star will be announced at the national CEO, Family Health Center, Kalama- Reach, Ann Arbor awards gala Nov. 18 in Palm zoo J Alan Mack, president and CEO, Springs, Calif. The national awards J Jason Wenk, founder and CEO, NxGen MDx, Grand Rapids are followed by the World Entre- FormulaFolio Investments LLC, J Tom Shea and Bob Powers, preneur of the Year award, which Grand Rapids co-founders, OneStream Software will take place in June 2018 in Mo- J Laura Varon Brown, executive di- LLC, Rochester naco. rector, Gilda's Club Metro Detroit, J Kirk Vercnocke, CEO, Phoenix In- The Entrepreneur of the Year Royal Oak novate Inc., Troy Awards is produced by EY, which is J Chris McCuiston and Jenny Mc- J Charles Stocking and Carol Stock- based in London. Crain’s Detroit Cuiston, co-founders, Gold sh Swim ing, co-CEOs, Principle Business En- Business is a sponsor of the region- School Franchising LLC, Troy terprises Inc., Bowling Green, Ohio al award program. 20 CRAIN’S DETROIT BUSINESS // MAY 8, 2017

CRAIN'S LIST: LARGEST MICHIGAN ACCOUNTING FIRMS Ranked by number of Michigan employees (Includes Southeast Michigan employees) Number of Number of Number of employees Michigan Number of Number of Number of Number of employees Southeast employees Michigan Michigan Michigan CPAs Company in Michigan Michigan engaged in employees employees employees Michigan Address Jan. 2017/ Jan. 2017/ audit/ engaged in engaged in engaged in Jan. 2017/ Rank Phone; Website Managing partner(s) 2016 2016 accounting taxes consulting other 2016 Plante Moran PLLC Gordon Krater 1,599 1,142 514 321 402 362 630 1 27400 Northwestern Highway, Southfield 48037 1,503 1,062 617 (248) 352-2500; www.plantemoran.com Deloitte LLP and its subsidiaries Mark Davidoff 1,071 992 438 234 224 175 319 2 200 Renaissance Center, Suite 3900, Detroit 48243-1895 1,083 1,001 315 (313) 396-3000; www2.deloitte.com/us/en.html PricewaterhouseCoopers LLP Ramesh Telang 787 755 405 170 124 88 450 3 500 Woodward Ave., Detroit 48226 795 764 432 (313) 394-6000; www.pwc.com Ernst & Young LLP George Lenyo 673 586 206 191 168 108 258 4 777 Woodward Ave., Suite 1000, Detroit 48226 674 589 253 (313) 628-7100; www.ey.com Rehmann Randy Rupp 627 296 192 125 154 158 266 5 1500 W. Big Beaver Road, 2nd Floor, Troy 48084 CEO 605 288 257 (248) 952-5000; rehmann.com BDO USA LLP Fred Rozelle 518 135 128 163 5 222 158 2600 W. Big Beaver Road, Suite 600, Troy 48084 assurance regional 562 135 147 6 (248) 362-2100; www.bdo.com John Marquardt tax office UHY LLP Thomas Callan 380 380 125 127 71 57 164 7 Chrysler House, 719 Griswold St., Suite 630, Detroit 48226 CEO 351 351 169 (313) 964-1040; www.uhy-us.com KPMG LLP Heather Paquette 369 310 73 85 134 77 83 8 150 W. Jefferson Ave., Suite 1900, Detroit 48226 352 291 71 (313) 230-3000; www.kpmg.com Doeren Mayhew & Co. PC Mark A. Crawford 241 239 111 66 19 45 108 9 305 W. Big Beaver Road, Suite 200, Troy 48084 chairman and shareholder 226 225 97 (248) 244-3000; www.doeren.com Crowe Horwath LLP Rhonda Huismann 207 13 36 63 66 42 87 55 Campau Ave. N.W., Suite 500, Grand Rapids 49503 196 11 76 10 (616) 774-0774 ; www.crowehorwath.com/offices/ grandrapids/ Yeo & Yeo PC Thomas Hollerback 200 23 70 42 25 72 85 11 3023 Davenport, Saginaw 48602 president and CEO 215 37 86 (989) 793-9830; www.yeoandyeo.com Grant Thornton LLP Dan Zittnan 109 109 47 23 25 14 53 12 27777 Franklin Road, Suite 800, Southfield 48034 104 104 39 (248) 262-1950; www.grantthornton.com Baker Tilly Virchow Krause LLP Patrick Killeen 103 103 29 28 20 26 48 13 2000 Town Center, Suite 900, Southfield 48075 123 103 43 (248) 372-7300; www.bakertilly.com Beene Garter LLP Thomas Rosenbach 95 0 29 35 4 43 48 14 56 Grandville Ave. SW, Suite 100, Grand Rapids 49503 91 0 43 (616) 235-5200; beenegarter.com Clayton & McKervey PC Robert J. Dutkiewicz 78 78 42 20 4 12 36 15 2000 Town Center, Suite 1800, Southfield 48075 president 71 71 31 (248) 208-8860; www.claytonmckervey.com Cohen & Co. B Robert MacKinlay 66 66 15 37 9 5 30 16 21420 Greater Mack Ave., St. Clair Shores 48080 77 77 26 (586) 772-8100; www.cohencpa.com Gordon Advisors PC Executive committee 62 62 29 18 11 9 32 17 1301 W. Long Lake Road, Suite 200, Troy 48098-6319 62 62 62 (248) 952-0200; www.gordoncpa.com MRPR Group PC C Angela Mastroionni 51 51 22 21 1 7 26 18 28411 Northwestern Highway, Suite 800, Southfield 48034 27 27 19 (248) 357-9000; www.mrpr.com Croskey Lanni PC David Croskey, CPA 48 48 34 38 5 8 29 19 345 Diversion St., Suite 400, Rochester 48307 43 43 27 (248) 659-5300; www.croskeylanni.com Cole, Newton & Duran CPAs Arthur Cole 45 D 45 D 20 15 2 8 14 20 33762 Schoolcraft Road, Livonia 48150-1625 29 NA 12 (734) 427-2030; cndcpa.com Mattina Kent & Gibbons Vincent J Mattina Jr. 43 29 34 33 14 14 20 21 1214 N. Main St., Rochester 48307 41 27 21 (248) 601-9500; www.mkgpc.com Echelbarger, Himebaugh, Tamm and Co. David Echelbarger 41 0 7 22 14 10 14 22 2301 East Paris Ave. SE, Grand Rapids 49546 president 34 0 9 (616) 575-3482; www.ehtc.com Polk and Associates PLC Richard Williams 41 41 21 10 2 8 13 22 30600 Telegraph Suite 2191, Bingham Farms 48025 32 32 8 (248) 645-5700; www.polkcpa.com Derderian, Kann, Seyferth & Salucci PC Ursula C. Scroggs 37 37 28 31 11 4 23 24 3001 W. Big Beaver, Suite 700, Troy 48084 managing director and 37 37 20 (248) 649-3400; www.DKSScpas.com president Alan C. Young & Associates PC Alan C. Young 36 36 27 3 4 2 7 25 7310 Woodward Ave., Suite 740, Detroit 48202 CEO 31 31 7 (313) 873-7500; www.alancyoung.com

This list of accounting firms is an approximate compilation of the largest such companies in Michigan. It is not a complete listing but the most comprehensive available. Unless otherwise noted, information was provided by the companies. Companies with headquarters elsewhere are listed with the address and top executive of their main Michigan office. NA = not available. B Formerly Godfrey Hammel, Danneels & Co. PC. Bought by Cohen & Co. Ltd. of Cleveland in January 2016. C Merged with Hantz Rhoades & Doehrer LLC , effective Jan. 1. The combined firms operate as MRPR CPAs & Advisors with offices in Southfield, Ann Arbor and Saline. D Acquired Bartos, Hoffer, Lustig, and Tomes PC and Michael G. Thomas CPA on Oct. 1, 2016.

LIST RESEARCHED BY SONYA D. HILL CRAIN’S DETROIT BUSINESS // MAY 8, 2017 21 Deadline nears to nominate for Health Care Heroes award By Jay Greene [email protected] e deadline is approaching to nominate innovators and leaders for Crain’s annual Health Care Heroes program, newly expanded in its 16th year. New categories are focused on medical research that is ground-breaking and life-changing for patients and their families. To make a nomination, go to www. crainsdetroit.com/nominate. A panel of six health care judges will choose the winners and run- ners-up. e deadline to nominate is May 22. Overall, the eight categories recognize medical innovators and patient advocates dedicated to saving lives or improving access to care. The deadline to nominate is May 22. J Corporate Achievement in Health Care: Honors an individual at a company that has created an innovative health care program or benets plan that has solved a problem in health care administration. J Innovation in Oncology Care or Research: Honors a company or individual responsible for a discovery or for developing a procedure, device, program or service that can save lives or improve quality of life in oncology care. J Innovation in Heart or Vascular Care or Research: Honors a company Commercial Finance Experience or individual responsible for a discovery or for developing a procedure, device, program or service that can ® save lives or improve quality of life in In Your Corner. heart or vascular care. J Innovation in Other Health Care Ŷ Domestic and international bi-lateral Services or Research: Honors a and syndicated commercial, real- company or individual responsible estate and asset-based nancing. for a discovery or for developing a procedure, device, program or ser- Ŷ Loan workouts, restructuring, vice that can save lives or improve quality of life in any related health bankruptcy and collection. care eld. J Administrator or Executive: Hon- ors an administrator at a hospital, health insurance company, pharmaceutical company or any health care related support company who has made a signicant contribution to their company and the health care industry. J Physician: Honors a physician whose clinical or administrative performance is considered exemplary, innovate and groundbreaking. J Allied Health: Honors an individual from nursing or allied health elds deemed exemplary, innovative or groundbreaking by patients and peers. J Board Member: Honors leader- First Tier Ranking in Corporate Law and ship and distinguished service on a Commercial and health care board. Construction Litigation Articles about the winners will be published in the Crain’s July 17 Contact David McLeod at [email protected] Ŷ Detroit Ŷ Novi Ŷ Grand Rapids Ŷ Kalamazoo Ŷ Grand Haven Ŷ Lansing Ŷ Ann Arbor Ŷ Hastings health care special section. 22 CRAIN’S DETROIT BUSINESS // MAY 8, 2017

SPOTLIGHT Macomb nonpro t names new director Laprisha Berry Vaughn has taken on the role of executive director of the Macomb Children’s Healthcare Access Program. Vaughn, 39, was director of programs and engagement for the nonpro t organization and has been there since March 2016. “ is is what I have been preparing for,” Vaughn Vaughn said, explain- ing that her main goal in the new position will be to expand services in Oakland County and eventually Wayne County, which also have CHAP programs, lling in gaps as needed. e Warren-based MCHAP focuses on improving the health of children on Medic- aid while decreasing costs and taking advantage of available resources, according to its website. Vaughn said the group is aiming to improve services of several pediatric practices NEUMANN/SMITH ARCHITECTURE identi ed as “high-volume and low-per- The Wagner Place redevelopment is expected to include a restoration of the Wagner Hotel’s facade and turet. forming.” Vaughn replaces Monica Woodson, who came on as director in 2014 and is beginning a new role as CEO of the Albany Park Ford Land’s $60M Wagner Place breaks ground Community Center in Chicago. By Kirk Pinho about 600 of the automaker’s and its suppliers’ Village Drive and Monroe. [email protected] data insights and analytics employees moving e project is expected to bring a pair of Gates to head new A $60 million project to transform a historic there in the middle of next year through reloca- three-story mixed-use buildings to down- hotel and other largely vacant buildings in west tion and consolidation. town and restore the Wagner Hotel into retail Bodman o ce downtown Dearborn broke ground last week. In December, the city secured a $3 million and o ce space. One-third of the e Wagner Place development, led by Ford performance-based grant from the Michigan 150,000-square-foot development is expect- Attorney Floyd Gates Jr. will lead Bod- Land Development Corp., the real estate arm Strategic Fund to construct a 373-space parked to be retail space. man PLC’s new Grand Rapids o ce. for Ford Motor Co., is expected to result in ing deck on what is a surface parking lot at West “Developing an urban o ce environment is will be Bod- positions Ford to o er a work setting that will man’s fth Michigan appeal to a new generation of employees,” location, which in- Dave Dubensky, chairman and CEO of Ford cludes its Detroit head- ADVERTISEMENT SECTION Land, said in a statement. “Wagner Place quarters and full-ser- FINANCIAL SERVICES supports our goals to create a more collabo- vice o ces in Troy, Ann rative and inviting campus atmosphere for Arbor and Cheboygan. Chris Hooper all employees.” Gates, 49, will be the Director of Seminar e project area is between Mason Street sole attorney in the Services to the west, Oakwood Boulevard to the east Grand Rapids opera- and south of Michigan Avenue. Some of the Gates tion, which he plans to M&O Marketing structures in the area are slated for demoli- grow. He brings more than 18 years of legal Chris Hooper has been tion as part of the project, according to a De- experience in litigation and corporate law. promoted to Director of cember MSF memo. He will be a member of Bodman’s Banking, LAW Seminar Services at M&O Marketing in “ is is absolutely a transformational Business and Litigation and Alternative South eld, MI. In this role, Hooper will project that will change the future of down- Dispute Resolution Practice groups, ac- oversee one of the most sought a er Ryan Plecha town west Dearborn in the sense that we are cording to a news release. nancial services seminar programs in the bringing in over 600 employees who will be Gates came from Detroit-based Miller Senior Counsel country. In addition, he will also be able to patronize our businesses, and acti- Can eld PLC, where he served three years Kostopoulos responsible for expanding his team and vate the climate and environment there,” said as a principal in the Grand Rapids o ce. Rodriguez, PLLC developing the Seminar Services Cristina Sheppard-Decius, executive director department at M&O Marketing. Hooper Ryan C. Plecha has of the West Dearborn Downtown Develop- has been with M&O Marketing since 2015. Snyder appoints 3rd joined Kostopoulos ment Authority. Rodriguez, PLLC, as Senior Counsel in the Detroit-based Neumann/Smith Architec- Circuit Court judge rm’s litigation practice group. Ryan’s David M. Dickman ture is the architecture rm on the project while Mid-America Real Estate Corp., which Gov. Rick Snyder has appointed Mariam practice focuses on complex civil and President & Managing commercial litigation. “KORO is excited has an o ce in Bloom eld Hills, will be re- Bazzi to the 3rd Circuit Court in Wayne Partner of Wealth sponsible for leasing the retail space to ten- County. She replaces that Ryan’s unique understanding of Management people, business and the law will be an ants. Judge Daphne Curtis, Vivaldi Capital asset to the rm and our clients,” said K. Dearborn Mayor John O'Reilly Jr. said in a who retired from the Management Dino Kostopoulos, founding and managing statement that the project “represents the bench. partner of KORO. I am con dent that Ryan Vivaldi Capital Management, an ongoing evolution of not only our west Bazzi, 38, became a will help KORO ful l its purpose of “taking independent nancial rm serving high net downtown, but the entire city.” Wayne County assistant care of businesses.” worth families and institutions, welcomes e project is the latest large-scale real es- prosecuting attorney in David M. Dickman as President and tate move for the automaker. 2006 and is the lead at- Managing Partner of Wealth Management. It is spending about $1 billion in the next torney of the Deed and 10 years to overhaul its headquarters campus Mortgage Fraud Task For more information about David will be drawing on over 25 years of industry experience to advise clients, and research and engineering hub in Dear- Mariam Bazzi Force. She was assigned advertising in this section, oversee Vivaldi’s wealth management born, and has leased about 240,000 square to multiple district contact Lynn Calcaterra at team and develop numerous rm-wide feet at Fairlane Town Center in the former courts in the county and led complex felony (313) 446-6086, or email strategy initiatives. He joins from Lord & Taylor space and an adjacent mall and misdemeanor cases. Bazzi got her start [email protected] J.P.Morgan’s Private Bank where he was a wing. in law as a clerk for the Law O ces of Ha- Managing Director and Midwest Regional Kirk Pinho: (313) 446-0412 mood, Runco & Fergestrom. Executive. Twitter: @kirkpinhoCDB May 8, 2017 CRAIN’S DETROITCRAIN’ SBUSINESSDETROIT BUSINESS // MAY 8, 2017 Page23 23

ment rarely heard from public o- get on payment plans and numerous Since the shutos began, 91 per- Brown said most disconnected WATER cials. other assistance and repair pro- cent of residential customers are customers have water restored with- FROM PAGE 3 “I’ll be the rst to admit that we grams, some of which oer dramatic current on bills, up from 77 percent in 48 hours. It’s an assertion that’s It’s a staggering tally, even for a are having problems with customer debt relief if residents keep current in 2014 and inching closer to the na- challenged by water activists and city where un attering numbers are service,” Lewis told the Eastside on payments. tional average of 95 percent, the city may be impossible to verify. Bridge the norm. And the numbers contra- Community Network. She rep- “I’ve lived in the city all my life. All said. (Unpaid bills from residents has attempted to obtain that data, dict a narrative repeated by Detroit resents a leadership of the water de- my family is here,” Brown said. “I’m and businesses still total $122 mil- but city ocials said the depart- ocials for years that the shutos partment that took over less than concerned about water quality like lion, though, about a third of the de- ment’s billing system doesn’t track were an attempt to quickly get resi- two years ago. anyone with any humanity.” partment’s $364 million budget.) that information. dents into compliance and then “We ask for your patience. We in- In the past year, the department Another sign of optimism: e If Detroit’s new policy is compas- would decline. herited a mess.” has tripled the size of its customer 18,000 now eligible for shuto is sion, water activists said they have Instead, they’re becoming a way of help sta (bringing it to 30), simpli- down from 24,000 at this time last yet to see it. life. Last year alone, the number of ‘Poverty is poverty’ ed its bills and added 28 payment year. ose numbers uctuate as the “It’s getting worse, not better,” said shutos equated to almost 1-in-6 of kiosks throughout the city to ease year progresses and some residents Cecily McClellan, a volunteer with the city’s 175,000 residential accounts. Founded in 1836, the department what had been long lines at three fall further behind in bills. e city the group We the People of Detroit, at’s more disconnections in one began with a water system of wood- customer service centers. A payment disconnects accounts that are more which distributes bottled water to year than the total number of homes en logs and a sewer made of brick app is in the works. than 60 days and $150 delinquent. disconnected residents. in the city of Saginaw (about 25,000). and stone. It grew to serve 43 percent In the three years since the cam- of the population of Michigan, sell- paign began, the city has had 83,000 ing water to 126 suburbs and 4 mil- residential shutos, city records lion residents. REAL show. at’s more than all sin- Detroit has the reputation for de- JOB FRONT gle-family houses in Southeld, livering some of the cleanest munic- ESTATE Farmington Hills, West Bloomeld ipal water in the nation. But over the POSITIONS AVAILABLE Township and Novi combined. years, the water department’s fail- WATERFRONT PROPERTY Another 18,000 residential cus- ings became the stu of legend. Senior Account Manager for Maxion Wheels, in Novi, MI. tomers could be next, following the Its 3,438-mile network of pipes SUMMER WEEKLY RENTALS Duties: Manage & direct the org & execution of sales strategies, incl’g initiating & April announcement that shutos still contains some made of wood. maintaining cust contact, for passenger car & large commercial truck wheel programs. HARBOR SPRINGS Coordinate communication w/ customers’ eng’g, financial, materials planning & qual suspended during cold months are Drawing water from Lake Huron, the control departments of assigned accounts. Negotiate prices, retain current bus, ensure all resuming. system carries 400 million gallons of products fully satisfy customer eng’g req’ts & devel detailed quotations & follow-up water per day — though as much as responses. Facilitate the eng’g & devel of new products in accordance w/ evolving customer needs & requirements & locate & devel potential new customers. Participate in A legacy of incompetence 80 million gallons of that leaks be- program launches & on APQP (Advanced Product Quality Planning) teams, ensure all fore reaching customers, according eng’g & commercial issues are addressed in a timely fashion & manage & oversee prog Other cities nationwide cut ser- to the department’s 2015 master team members in addressing customer tech eng’g req’ts. Contribute to the devel of bus unit sales & marketing strategies. 40% travel, both domestic and international. Req’s: vice on delinquent accounts, but plan. Bach Degree in Mech, Manuf’g, Ind, Electrical/Electronics, or Automation & Control • In Town, walk to beach what makes Detroit’s situation so Years of suburban frustration over Engineering, or Bus. 2 years exp in an account management or prod or application eng’g • 4 bedrooms 3 baths challenging is that the city is trying to high bills, and Detroit’s bankruptcy, pos in the auto and commercial wheel manufacturing ind. Exp must include: providing • NEW Furnishings eng’g & prod devel support for passenger car & large commercial truck wheel programs; x customers’ habits while also try- led the city to agree in 2015 to agree • Hot tub devel’g integrated wheel designs & technologies, incl’g welding solutions for assemblies ing to x itself. to lease the system to a new regional • A few weeks still available between wheel discs & rims; stamp-based manufacturing, spinning, roll-forming & welding Even city ocials acknowledge agency, the Great Lakes Water Au- processes for wheels; coordinating eng’g prog activities w/ external wheel component Joe Blachy suppliers & customers; prog management for new wheel prod introd, from concept the Detroit Water and Sewerage De- thority. through prod’n, in accordance w/ APQP processes; leading internal wheel prod design & partment has a legacy of ineptitude. e deal gives the city $50 million (231) 409-9119 eng’g devel activities, incl’g design reviews of new programs & plant launch operations. “Honestly? Everything I hear per year over 40 years to pay for re- Call anytime between 7am & 10pm Exp can be acq’d concurrently. Mail resumes: Kelsey Stalk, HR, Maxion Wheels, 39500 about the water department is al- pairs. e suburbs get a stronger www.jobstcottage.com Orchard Hill Place, Ste 500, Novi, MI 48375. Ref Senior Account Manager pos. EOE most all negative,” said Detroit City voice in setting water rates. And De- 420 Howard St., Petoskey, MI 49770 MISCELLANEOUS Councilwoman Mary Sheeld, who troit has to pay its own way, no lon- POSITIONS AVAILABLE has hosted community meetings ger able to pass along the cost of un- COMMERCIAL PROPERTIES about water issues. paid bills to suburban customers. Hall Rd. & 44935 Hayes - Bar & Rest. SURVEY “e ineciencies in the depart- But Detroit must do so in a city $2.8M Invstd, Asking $575K Communications Manager ment needed to be addressed before where 40 percent of residents live in 52 Ac./Chesterfield Twp - Underground & JGA, a global leader in creating branded environments, is seeking a ANALYZE they started shutting o water to poverty, more than 100,000 homes Engineering done, 25 Mi. Rd. just E/Gratiot $700K-112 Units - Land cleared ready to dev. Communications Manager to manage all thousands of people’s water and im- have been foreclosed in the past 10 internal and external communications, Collision Shop - Warren ~ $900K O.B.O. MATCH pacting their lives like that. Bills are years, and water sales are declining including social media, website, print and BILL McMACHEN - 586-915-4441 public relations. If you are a team player still being sent to the wrong address- every year as conservation eorts in- with 3+ years in B2B marketing and PR, es. Water is still shut o at the wrong crease and the population remains have an awareness and curiosity of retail INDUSTRIAL PROPERTY houses. Water is still running at at. and design, interpersonal skills, positive attitude, high energy, flexible and adaptive abandoned houses. ey should x Perhaps that’s why water depart- ST. CLAIR COUNTY, MI to various opportunities; themselves before they start hurting ment director Gary Brown looks 430,000 Sq. Ft., 20 Acre Portfolio For Submit Resumes to: [email protected] CrainsDetroit.com/JobConnect | residents.” tired. Sale by Owner. $760,000 Gross Rent, She and others said, however, that Meeting with Bridge in late April 26 Year History. Industrial, Warehouse, the department has improved since in his downtown oce, Brown re- Offices. Much Potential. Email Contact: the shuto campaign began in 2014, counted a recent meeting with a [email protected] when the city earned condemnation mother of eight whose water was OFFICE SPACE MARKET PLACE from the United Nations. But Shef- turned o for nonpayment. eld contends rampant mistakes Six of her children tested positive FRANCHISE OPPORTUNITIES REQUEST FOR PROPOSALS with bills and customer service have for lead paint poisoning, Brown said. PHOTO STUDIO exacerbated the problem. Her water was restored, but her 9/WOODWARD Quantifying the mistakes is im- problems will persist, he predicted. 2,500 Sq. Ft. ~ $1,500 Per Month INVESTMENT possible, though, because of limita- Brown wondered aloud if the most Also 1,000 Sq. Ft. ~ $500 Per Month. CONSULTANT RFP tions to the city’s billing records. De- humanitarian thing would have Call 248-398-7000 troit ocials acknowledge they been to leave her without water, The General Retirement System don’t know the identity of two-thirds plunging her into such a crisis that City of Detroit has issued a VACANT LAND of their customers because most social services agencies would have Request for Proposal for bills are sent to “occupant,” and they to intervene so the woman could get STERLING HEIGHTS, MI Investment Consulting Services. don’t know if homes that are shut o “more holistic” help. 3.4 Ac. Vacant Land The deadline for submitting a are occupied. “I’ve disconnected a lot of people. 33353 & 33431 Mound Rd. FRANCHISES AVAILABLE proposal is June 2, 2017. CHECK US OUT AT Water ocials don’t hide from But poverty is poverty. ese things Zoning Comm’L/Resid’l 178 Rd. Frontage less 50 Foss Rd. Easement WWW.PASSPORTPIZZA.COM For further information please their reputation. Late last month, a happen every day,” said Brown, a CALL (586) 992-8800 Call Tom @ 586-759-7220 OR EMAIL [email protected] visit our website: www.rscd.org spokeswoman for the department, former deputy police chief and City [email protected] Chandra Lewis, listened patiently as Council member who became de- BUSINESSES FOR SALE INDUSTRIAL SERVICES speaker after speaker at an east-side partment director in late 2015. community forum recited horror Call or email today for information WHITTEMORE, MI WOODSHOP C.W. JENNINGS stories about water bills. City taking steps on a custom advertising plan! Fully Equipped Millwork/Cabinet Shop INDUSTRIAL EXCHANGE When it was her turn to speak, 6888 Whittemore Rd, Whittemore, Mi Global Industrial Consulting Lewis smiled, thanked them for Brown said he takes a “compas- [email protected] 20,000 sq ft - $225,000 Construction • Acquisitions bringing the problems to her atten- sionate” approach. He said the in- 313.446.6068 Call Pete @ 989 239-3666 Exporting • Financing tion and oered an acknowledg- tent of shutos is to spur residents to Sahasa Realty Corp (855) 707-1944 24 CRAIN’S DETROIT BUSINESS // MAY 8, 2017

ate?’” Yousif said. “ ey don’t want us to be in was unaware that L.A. Insurance INSURANCE compliance. ey want to shut us down.” was under investigation in Michigan FROM PAGE 1 ose three stores — two in Ypsilanti and for allegedly sliding its roadside as- Unlike other states, sliding is not explicitly one in Owosso — are among the 10 facing clo- sistance plans into insurance poli- outlawed in Michigan law. But state Insurance sure in the latest regulatory action for allegedly cies until contacted by Crain’s last Director Patrick McPharlin issued an adminis- having unlicensed agents selling insurance week. trative order in September 2015 barring the and misleading customers that the roadside “We would never condone that practice under a law that allows him to take assistance plan was included in their no-fault kind of activity,” said Eric Sharfstein, action against insurance agencies that engage coverage. claims director at Nation Safe Driv- in fraudulent and dishonest sales tactics. ers. “Our customers should be made L.A. Insurance is challenging whether Mc- Added charges aware and oered the product.” Pharlin's bulletin is legally binding. e practice of sliding is illegal in As state regulators scrutinize L.A. Insur- In several cases, records show, L.A. Insur- most states, Sharfstein said. ance’s sale of roadside assistance plans, the ance's roadside assistance charge added about “It is something that does go on in department also has threatened to ban the $100 to a roughly $250 seven-day insurance the industry, unfortunately, and it seven-day auto insurance policies that L.A. In- plan. gives insurance agencies a black surance markets to Detroiters who can’t aord But the prices for a week of insurance cover- eye,” he said. “It’s something we big down payments for traditional six-month age and at least six months of roadside assis- would not approve of at all.” plans. tance protection varied wildly from store to e roadside assistance plans L.A. Insurance sells seven-day insurance store, according to investigation records. from Nation Safe Drivers are similar plans to Detroit motorists for as little as $199 in “ e amount that will be charged is often to the kind of vehicle assistance AAA what’s emerged as a legal workaround for De- determined by the agent during the insurance of Michigan oers its members. But troiters to get their vehicles registered and sale and depends on how much money the motorists have to be AAA members then drive without insurance for the rest of the customer has available for the insurance pur- in order to purchase a separate auto year. e seven-day plans are a symptom of chase. A portion of that money is then diverted insurance policy from AAA, spokes- Detroit having some of the highest auto insur- to purchase the NSD membership,” state in- woman Susan Hiltz said. ance rates in the country. surance regulators wrote in one complaint Yousif said L.A. Insurance’s agents Beginning last July, the state insurance de- against L.A. Insurance operators Sonny Kass- are trained to inform customers that partment began taking action against L.A. In- ab and Sandy Kassab, who run two agencies in seven-day and six-month plans surance in a series of six complaints seeking to Detroit. come with an optional membership revoke the licenses of a dozen agents and shut A customer identied only by the initials to Nation Safe Drivers. “Not only are down 10 agencies from Detroit to Lansing. “DW” told investigators he “wanted to spend they telling them, we’ve got dis- In regulatory lings, DIFS accuses L.A. In- up to $500 to start a six-month policy” when he claimers that shows that they’re buy- surance employees of selling auto insurance went to the Kassabs’ store at 17516 Livernois in ing it and also shows that it’s option- without a license, misrepresenting themselves Detroit’s University District on July 29, 2013. al,” Yousif told Crain’s. as a licensed superior, disguising the cost of a After the customer was told the down pay- But customers are not always in- roadside assistance plan as part of auto insur- ment for a six-month plan would exceed $500, formed they’re purchasing the road- ance premiums, falsifying documents and de- Sonny Kassab quoted him $370 for a seven-day side assistance plan before they buy ceiving recipients of a welfare-to-work pro- policy. it. gram. “DW” was charged at least $200 more — During an April 4 interview of an e investigations center on L.A. Insurance over 54 percent — for a roadside service plan L.A. Insurance agent at an store at agents adding six-month or one-year roadside that was “disguised as part of the premium for Lahser and Eight Mile in Detroit, a assistance and emergency towing plans from the insurance policy” that cost him $370, ac- Crain’s reporter observed the agent Nation Safe Drivers Auto Club without cus- cording to the complaint led against Sonny sell a seven-day insurance policy to a tomer consent. Kassab and Sandy Kassab. Detroit man without disclosing the Anthony Yousif, CEO of L.A. Insurance, said Just $104 — or 28 percent of the total bill — roadside assistance plan until after his company’s franchise agencies have been went to covering the premium of the custom- charging his credit card. unfairly targeted by state insurance investiga- er’s July 29, 2013, bill for seven-day insurance. e agent, Takara ompkins, of- tors who use their broad powers to pull trans- e remaining $66 “was converted to personal action records and then contact customers or business use” by the L.A. Insurance agent, and tell them they were “illegally charged.” according to the Aug. 1, 2016, complaint. “ e customers are not ling the com- In that complaint, the state alleges the Kass- DELPHI plaints,” Yousif told Crain’s. “ ey’re creating abs repeatedly engaged in a “prohibited prac- FROM PAGE 3 their own complaints. e investigator creates tice of sliding by using the cover of the insur- e same year, it went on an ac- the problem.” ance transaction to trick customers by quisition binge, acquiring U.K.- Andrea Miller, spokewoman for the Depart- including (Nation Safe Drivers) membership based cable equipment supplier ment of Insurance and Financial Services, said in the insurance transaction without their per- HellermannTyton for $1.7 billion; she cannot comment on “any ongoing en- mission or knowledge.” Allen Park-based Control-Tec LLC, a forcement cases.” Attorneys for L.A. Insurance argued in a provider of telematics and analytics e regulatory complaints were led in July May 1 court ling that “sliding” roadside assis- software, for $100 million; Plym- and August 2016 and March 3 of this year and tance plans into insurance policies is not ex- outh-based over-the-air software most rely on interviews with L.A. Insurance pressly banned in state insurance law or regu- update provider Movimento Inc. for customers and undercover stings dating back lations and is “merely referenced in a 1981 an undisclosed sum; Pitts- to 2013. Hearings before administrative law non-binding administrative bulletin, which it- burgh-based software developer Ot- judges are set for later this summer. self states that it does not have the force and tomatika Inc. for an undisclosed “In general, investigations can take months eect of law.” sum; Warwick, Rhode Island-based or years to complete, depending on the nature “ ese claims fail as a matter of law because on-glass connectors supplier Anta- of the conduct involved and number of con- the conduct complained of is not actually pro- ya Technologies Corp. for $151 mil- sumers aected,” Miller said in a statement to hibited by statute or properly promulgated ad- lion; and New York-based media Crain’s. “DIFS’ prosecution of enforcement ministrative rules — or even by non-binding connectivity module supplier Un- cases can be aected by many factors, includ- bulletins,” the company’s attorneys wrote. wired Holdings Inc. for $191 million. ing, but not limited to, available department Royal Oak-based L.A. Insurance has hired “Looking ahead, new mobility resources, cooperation of witnesses, and coor- Lansing attorney John Pirich of the Honigman will be dened by the convergence dination of investigation activities with other Miller Schwartz and Cohn LLP law rm to de- of automated driving, increased state departments and government agencies.” fend its agents and agencies in the administra- electrication, and connected info- e Department of Insurance and Financial tive law proceedings, Yousif said. tainment, all enabled by exponen- Services has previously denied it is targeting Pirich is regarded in Lansing as one of the tial increases in computing power L.A. Insurance in its ongoing review of the le- top attorneys for navigating the halls of power and smart vehicle architectures,” gality of seven-day auto insurance plans. in state government. He most recently repre- CEO Kevin Clark said in a statement. But Yousif said insurance regulators won’t sented President Donald Trump in stopping a “As a result of our strategy to grow give guidance on how to sell the roadside in- December recount of Michigan’s presidential and expand through organic invest- surance coverage since a judge blocked the election results. ments, acquisitions, and strategic department from shutting down three stores partnerships aligned to the safe, in 2013 over previous allegations of misleading Illegal in most states green and connected industry meg- and dishonest business practices. atrends, our (electronic) businesses “At that time, we asked the department of A representative for Boca Raton, Fla.-based are well positioned for signicant insurance, ‘Tell us how you want us to oper- Nation Safe Drivers said the automobile club growth as the only global provider of CRAIN’S DETROIT BUSINESS // MAY 8, 2017 25 ate?’” Yousif said. “ ey don’t want us to be in was unaware that L.A. Insurance roadside assistance on a seven-day compliance. ey want to shut us down.” was under investigation in Michigan plan that cost $121. ose three stores — two in Ypsilanti and for allegedly sliding its roadside as- “I thought the amount I had paid one in Owosso — are among the 10 facing clo- sistance plans into insurance poli- was for the seven-day policy,” said sure in the latest regulatory action for allegedly cies until contacted by Crain’s last Coburn, who signed a document ac- having unlicensed agents selling insurance week. knowledging she had purchased and misleading customers that the roadside “We would never condone that “roadside service and towing.” assistance plan was included in their no-fault kind of activity,” said Eric Sharfstein, “Shame on me for not catching it.” coverage. claims director at Nation Safe Driv- Coburn said she returned to the ers. “Our customers should be made L.A. Insurance agency the day Blood Added charges aware and oered the product.” called her and demanded a refund, e practice of sliding is illegal in which the agent issued. In several cases, records show, L.A. Insur- most states, Sharfstein said. “ ey’re charging for something ance's roadside assistance charge added about “It is something that does go on in that’s not being explained unless $100 to a roughly $250 seven-day insurance the industry, unfortunately, and it somebody calls them out on it,” Co- plan. gives insurance agencies a black burn said. “And they’re making all of But the prices for a week of insurance cover- eye,” he said. “It’s something we this money.” age and at least six months of roadside assis- would not approve of at all.” tance protection varied wildly from store to e roadside assistance plans Public assistance Catherine Coburn, a waitress and single store, according to investigation records. from Nation Safe Drivers are similar recipients mother of two from Clinton Township, “ e amount that will be charged is often to the kind of vehicle assistance AAA said she received a call last month from determined by the agent during the insurance of Michigan oers its members. But State insurance regulators also a state insurance investigator . sale and depends on how much money the motorists have to be AAA members say their investigation of L.A. Insur- customer has available for the insurance pur- in order to purchase a separate auto ance agencies in Ypsilanti and Insurance regulators accuse Lau- chase. A portion of that money is then diverted insurance policy from AAA, spokes- Owosso owned by Jennifer and Lau- rence Essak of engaging in an “egre- to purchase the NSD membership,” state in- woman Susan Hiltz said. rence Essak “uncovered unfair and gious” scheme of “bait and switch surance regulators wrote in one complaint Yousif said L.A. Insurance’s agents dishonest treatment of public assis- sales” where the PATH recipient against L.A. Insurance operators Sonny Kass- are trained to inform customers that tance recipients.” would get a $300 check for the down ab and Sandy Kassab, who run two agencies in seven-day and six-month plans A former L.A. Insurance employ- payment on a six-month policy but Detroit. come with an optional membership ee told investigators he was trained be given a seven-day policy that cost A customer identied only by the initials to Nation Safe Drivers. “Not only are to “manipulate the numbers to in- $83. “DW” told investigators he “wanted to spend they telling them, we’ve got dis- ate” insurance quotes for individu- e remaining $217 would be ap- up to $500 to start a six-month policy” when he claimers that shows that they’re buy- als in a welfare-to-work program plied to a Nation Safe Drivers road- went to the Kassabs’ store at 17516 Livernois in ing it and also shows that it’s option- called PATH (Partnership, Account- side membership fee without the Detroit’s University District on July 29, 2013. al,” Yousif told Crain’s. ability, Training, Hope) that helps customer’s knowledge, according to After the customer was told the down pay- But customers are not always in- PHOTOS BY CHAD LIVENGOOD/CRAIN’S DETROIT BUSINESS subsidize auto insurance premiums the complaint. e Essaks, who also ment for a six-month plan would exceed $500, formed they’re purchasing the road- An L.A. Insurance oce on Van Dyke. so people can get to work. are being represented by Pirich, did Sonny Kassab quoted him $370 for a seven-day side assistance plan before they buy To get taxpayer assistance, the not return messages left at their Yp- policy. it. fered to refund $100 on a $271 charge last month from state insurance in- PATH recipient must present two in- silanti stores. “DW” was charged at least $200 more — During an April 4 interview of an to the man’s credit card when he vestigator Justin Blood about the surance quotes for a six-month poli- e CEO of L.A. Insurance said over 54 percent — for a roadside service plan L.A. Insurance agent at an store at questioned the charge. After being $271 seven-day plan she bought in cy to a service provider, which then the sale of seven-day plans to public that was “disguised as part of the premium for Lahser and Eight Mile in Detroit, a told the roadside assistance plan January at an L.A. Insurance in Ros- cuts a check to the insurance agency. assistance recipients was an error. the insurance policy” that cost him $370, ac- Crain’s reporter observed the agent would last well beyond the life of his eville. Blood’s call and a subsequent e state insurance department’s “If somebody sold them anything cording to the complaint led against Sonny sell a seven-day insurance policy to a actual insurance coverage, the man questionnaire he sent Coburn sug- complaints against L.A. Insurance under a six-month policy, they’re Kassab and Sandy Kassab. Detroit man without disclosing the decided to keep the membership. gests the insurance department con- accused agents of falsifying receipts not doing their job or they weren’t Just $104 — or 28 percent of the total bill — roadside assistance plan until after Catherine Coburn, a waitress and tinues to investigate L.A. Insurance. to “conceal” charges for roadside as- trained properly,” Yousif said. went to covering the premium of the custom- charging his credit card. single mother of two from Clinton Coburn said Blood asked whether sistance plans that weren’t an ap- Chad Livengood: (313) 446-1654 er’s July 29, 2013, bill for seven-day insurance. e agent, Takara ompkins, of- Township, said she received a call she knew she paid an extra $150 for proved use of the taxpayer funds. Twitter: @ChadLivengood e remaining $66 “was converted to personal or business use” by the L.A. Insurance agent, according to the Aug. 1, 2016, complaint. an integrated ‘brain and nervous draw investment and please Wall nectivity supplier Arada Systems were willing to pay,” Hilgert said in In that complaint, the state alleges the Kass- DELPHI system’ of the vehicle.” Street. Inc. — which supplies vehicle-to-in- the note. abs repeatedly engaged in a “prohibited prac- FROM PAGE 3 Analysts believe the electronics “I think this is a good move, as frastructure technology on road- Delphi may be positioning itself tice of sliding by using the cover of the insur- e same year, it went on an ac- business will be able to generate Wall Street likes to punish auto ways, including in the city of Detroit. as a tech company, but it has deeply ance transaction to trick customers by quisition binge, acquiring U.K.- higher returns once separated from stocks and reward tech stocks; Tesla Liam Butterworth, currently se- automotive roots. It was formed in including (Nation Safe Drivers) membership based cable equipment supplier the capital-intense powertrain unit. is a prime example,” Wybo said. nior vice president and president, 1994 as a unit of GM, then called the in the insurance transaction without their per- HellermannTyton for $1.7 billion; “We believe higher growth poten- Johnson Controls Inc. performed Powertrain Systems, will become Automotive Components Group. In mission or knowledge.” Allen Park-based Control-Tec LLC, a tial exists as the industry adopts a similar spino last year, separating president and CEO of the new entity. 1999, it was spun out to become an Attorneys for L.A. Insurance argued in a provider of telematics and analytics electried powertrains, which re- its building eciency and battery Timothy Manganello, currently an independent public company. May 1 court ling that “sliding” roadside assis- software, for $100 million; Plym- quire more robust electrical archi- business apart from its automotive independent director on the Delphi ings went south from there, tance plans into insurance policies is not ex- outh-based over-the-air software tectures,” Richard Hilgert, senior seating business, now called Adient. board, will become nonexecutive with the U.S. Securities and Ex- pressly banned in state insurance law or regu- update provider Movimento Inc. for equity analyst of the auto sector for Adient plans to open a $75 million chairman of the new Powertrain change Commission investigating lations and is “merely referenced in a 1981 an undisclosed sum; Pitts- Chicago-based equity research rm headquarters in the city of Detroit company’s board of directors. Man- the supplier for irregular accounting non-binding administrative bulletin, which it- burgh-based software developer Ot- Morningstar Inc., said in an analyst later this year. ganello was most recently chairman practices. self states that it does not have the force and tomatika Inc. for an undisclosed note. “Greater numbers of circuits Delphi joins a growing list of auto of the board and CEO of BorgWarner It led Chapter 11 bankruptcy eect of law.” sum; Warwick, Rhode Island-based per vehicle will also be required to companies heavily investing in au- Inc. protection in 2005, resulting in the “ ese claims fail as a matter of law because on-glass connectors supplier Anta- meet higher demand for electronic tonomous vehicle technology. Last e public powertrain business, closing of more than two dozen the conduct complained of is not actually pro- ya Technologies Corp. for $151 mil- devices. Advanced driver-assist sys- year, GM acquired California start- which will have about $4.5 billion in plants and elimination of tens of hibited by statute or properly promulgated ad- lion; and New York-based media tems and autonomous driving sys- up Cruise Automation for $1 billion, annual revenue, will likely become thousands of jobs, before emerging ministrative rules — or even by non-binding connectivity module supplier Un- tems are included in Delphi’s elec- invested $500 million in Lyft and an attractive M&A target in the near from bankruptcy in the midst of the bulletins,” the company’s attorneys wrote. wired Holdings Inc. for $191 million. tronics product portfolio.” launched its own car-sharing ser- future, Wybo said. It’s thought that automotive industry collapse in Royal Oak-based L.A. Insurance has hired “Looking ahead, new mobility Hilgert estimates those electron- vice called Maven. Ford Motor Co. Delphi already tried to sell its power- 2009. Delphi controversially incor- Lansing attorney John Pirich of the Honigman will be dened by the convergence ics components will grow 20 percent created a subsidiary based on mo- train unit before settling on spinning porated in the U.K., but maintained Miller Schwartz and Cohn LLP law rm to de- of automated driving, increased year-over-year for the next decade. bility and partnered with Uber. Fiat it o. its operational headquarters in Troy. fend its agents and agencies in the administra- electrication, and connected info- “Because less capital-intense al- Chrysler Automobiles NV formed a Hilgert, in the analyst note, said In 2016, it won an appeal to the tive law proceedings, Yousif said. tainment, all enabled by exponen- gorithm development is a large part relationship with Google for auto- Delphi was likely unable to secure its Internal Revenue Service on its U.S. Pirich is regarded in Lansing as one of the tial increases in computing power of the value add for the company’s mated minivans. e city of Detroit target price from potential buyers tax liability. e IRS wanted to tax top attorneys for navigating the halls of power and smart vehicle architectures,” electronic control devices, in con- hired a new mobility chief in De- that could have included BorgWar- Delphi as a U.S. entity, which would in state government. He most recently repre- CEO Kevin Clark said in a statement. junction with higher margins, we cember. ner, Continental Automotive Sys- have cost the supplier hundreds of sented President Donald Trump in stopping a “As a result of our strategy to grow believe Delphi’s remaining busi- Fellow supplier, Southeld-based tems or Magna International. millions in back taxes. As a U.K. tax December recount of Michigan’s presidential and expand through organic invest- nesses will have higher returns on Lear Corp., bought the intellectual “In our opinion, there was no resident, Delphi isn’t required to pay election results. ments, acquisitions, and strategic invested capital,” he said in the note. property and technology of Santa shortage of prospective buyers lead- U.S. taxes on its sales tied to overseas partnerships aligned to the safe, Steven Wybo, senior managing Rosa, Calif.-based Autonet Mobile ing us to the conclusion that man- operations and is only taxed in the Illegal in most states green and connected industry meg- director of Birmingham-based advi- Inc., an Internet-based telematics agement was disappointed by buy- U.S. on income related to sales in the atrends, our (electronic) businesses sory and turnaround rm Conway and app service provider for the au- ers that might have wanted to U.S. A representative for Boca Raton, Fla.-based are well positioned for signicant MacKenzie Inc., said the move is de- tomotive market in 2015 and ac- cherry-pick individual product lines Dustin Walsh: (313) 446-6042 Nation Safe Drivers said the automobile club growth as the only global provider of signed to boost Delphi’s ability to quired Troy-based automotive con- and/or the valuation that buyers Twitter: @dustinpwalsh 26 CRAIN’S DETROIT BUSINESS // MAY 8, 2017

QLine beneted from having major tion Riders United. sorbed and funded by the publicly QLINE deep-pocket private donors along the at echoes what the QLine’s funded regional transit authority. FROM PAGE 1 tracks, such as Quicken Loans, Com- founders have said all along. However, the RTA failed to win voter www.crainsdetroit.com Also already paid for are the de- puware and Ilitch Holdings, along with “People get a chance to ride a mod- support for a transit tax in November. Editor-in-Chief Keith E. Crain signs for any additional streetcars, al- Wayne State University, Detroit Medi- ern transit system and see the conve- Cullen said other options included Executive Vice President KC Crain Publisher/Editor Ron Fournier, (313) 446-1674 or though the eet of six likely could sup- cal Center and Henry Ford Health. nience and service it provides, and seeking corporate donations, selling [email protected] port a modest extension of the line. e single biggest QLine donor was they’ll say ‘What about us, let’s do more advertising, and reselling the Group Publisher Mary Kramer, (313) 446-0399 “Within 10 years, I would not be the Troy-based Kresge Foundation, more of this sort of thing’ whether it naming rights. Quicken Loans Inc. in or [email protected] Managing Editor Michael Lee, (313) 446-1630 surprised if there are a couple of con- and its CEO, Rip Rapson, said he be light rail or bus-rapid transit or March 2016 announced that it had or [email protected] nector spokes,” said Cullen, who add- worked hard to convince the nonprof- streetcar,” said Leo Hanin, dean bought the naming rights for $10 mil- Director, Crain Custom Content Kristin Bull, ed that the QLine was intended to be a it’s board to provide what eventually emeritus at the University of Detroit lion over ve years. Quicken Chair- (313) 446-1608 or [email protected] Product Manager/Marketing and Events Kim Winkler, demonstration project and to be part totaled $50 million for the project. Mercy’s College of Engineering and man Dan Gilbert is M-1 Rail’s (313) 446-6764 or [email protected] of a wider public commuter transit Now, the foundation is eager to aid Science, and an M-1 Rail board mem- co-chairman, and Cullen is one of his Digital Product Manager Carlos Portocarrero, (313) 446-6056 or [email protected] system that includes city and subur- the high-speed bus regional transit ef- ber who led the original streetcar top lieutenants. Membership Director Nancy Hanus, (313) 446-1621 ban bus systems and Amtrak. fort, but Rapson wouldn’t rule out - study that became the QLine. e ideal operational funding or [email protected] Aside from more tracks north on nancing help for streetcar expansion. solution, Cullen said, is the RTA get- Creative Director David Kordalski, (216) 771-5169 or [email protected] Woodward, possible candidates for “It’s very attractive,” he said. Funding ting a regional tax approved. News Editor Beth Reeber Valone, (313) 446-5875 streetcar service include Monroe Having the Regional Transit Au- “We think there’s a path to sustain- or [email protected] Street in Greektown, and Jeerson Av- thority of Southeast Michigan in place e streetcar, which was the brain- ability and it depends on what hap- Special Projects Editor Amy Elliott Bragg, (313) 446-1646 or [email protected] enue, which has population density also will make any eort to get federal child of longtime local transit ocial pens to the RTA,” Cullen said. Design and Copy Editor Beth Jachman, (313) 446-0356 and economic development potential. transit dollars for expansion easier, John Hertel, was originally envisioned or [email protected] But any expansion faces major hur- Cullen said. Basically, a city or region as a privately funded $100 million Organizational changes Research and Data Editor Sonya Hill, (313) 446-0402 or [email protected] dles: “Who’s the champion of that? must have an RTA established to act as project. at has grown to at least Newsroom (313) 446-0329, FAX (313) 446-1687, Where’s the money come from?” Cul- the pass-through for federal funding, $187.3 million to cover construction, Over the next 12 months, M-1 Rail TIP LINE (313) 446-6766 len said. and the lack of one locally hampered administrative and early operating will scale back because an operating REPORTERS e QLine’s champion was Roger M-1’s early eorts. costs. e money comes from corpo- streetcar system no longer requires Tyler Cliord, breaking news. (313) 446-1612 or Penske, the M-1 Rail chairman who Cullen said the demand and eco- rate, foundation and public sources. the same size organizational infra- tcli[email protected] Annalise Frank, breaking news. (313) 446-0416 or has served as Detroit’s mastermind for nomic case are there for adding ser- M-1 will have a nal QLine capital structure, Cullen said. What that [email protected] major projects such as Super Bowl XL vice, but there’s nothing formally in cost by the end of June, Cullen said. means remains to be seen. Jay Greene, senior reporter Covers health care. in 2006. Penske, the auto racing and the works from M-1 beyond getting e system also will have recast its “We’re going to revamp the orga- (313) 446-0325 or [email protected] Chad Livengood Covers Detroit rising. (313) 446-1654 or truck rental industrialist, personally the QLine running. operating budget by then, which Cul- nization to become smaller and lean- [email protected] convinced many of the QLine’s nan- “We as a board have not signed on len said will be more than $6 million er because we won’t be building it Kurt Nagl Breaking news. (313) 446-0337 or ciers to commit to the project. Penske for any additional tasks,” Cullen said. annually because, in part, of a late anymore,” he said. [email protected] Kirk Pinho Covers real estate. (313) 446-0412 or has intimated that he’ll be stepping One transit insider said that de- decision to contract the city’s transit One thing it does mean is that Cul- [email protected] back from his civic eorts, so someone mand will fuel the political will for ex- police for streetcar safety rather than len expects to step away from the Bill Shea, enterprise editor Covers the business else would have to quarterback a ma- pansion, especially beyond the city. use private security. Previously, the CEO role. His future role will be more of sports. (313) 446-1626 or [email protected] Lindsay VanHulle Lansing reporter. (517) 657-2204 jor expansion of the streetcar system. “I hope once people have a chance yearly operating budget had been appropriate as an M-1 Rail board or [email protected] at person also would have to to ride on it, to experience what con- forecast at $5.8 million. member, he said. While nothing is of- Dustin Walsh, senior reporter Covers economic issues. navigate the political and economic venience modern transit can really A long-term question that remains cial, it’s likely that current COO Paul (313) 446-6042 or [email protected] Sherri Welch, senior reporter Covers nonprots and hurdles that any transit project must mean, more will say, ‘Why don’t we unanswered is how the system will Child could assume the CEO role. philanthropy. (313) 446-1694 or [email protected] overcome. have this in Royal Oak and Troy and be funded in the future. M-1 operat- “Paul has eectively carried a lot of ADVERTISING Even without some of the startup Grosse Pointe,’ and we’ll have de- ing funding is available for several that role already,” Cullen said. Sales Inquiries (313) 446-6032; FAX (313) 393-0997 costs, any streetcar expansion still will mand,” said Megan Owens, executive years of service, but the original in- Bill Shea: (313) 446-1626 Director of Sales Lisa Rudy cost tens of millions of dollars. e director of Detroit-based Transporta- tention was for the system to be ab- Twitter: @Bill_Shea19 Senior Account Manager Katie Sullivan Advertising Sales Gerry Golinske, Sharon Mulroy, Diane Owen ly risen to 4.6 percent in 2016, 3.4 per- 1.8 percent. gan, the rst six months of scal 2017 Classied Sales Manager Angela Schutte, cent in 2015 and 3.1 percent in 2014. “We are having another good year. ended Dec. 31 saw operating income (313) 446-6051 HOSPITAL Classied Sales Lynn Calcaterra, (313) 446-6086 FROM PAGE 3 “We had very strong volume We are continuing to grow as a compa- jump to $109.9 million, up from a Events Manager Kacey Anderson “ ose people will not be in posi- growth of the organization, year over ny and managed our costs well,” said loss of $27.2 million, which includes Marketing and Sales Promotions Manager tion to buy insurance, so for us, the year across the spectrum” said John David Mazurkiewicz, McLaren’s CFO. a premium adjustment loss of $65 Christina Fabugais-Dimovska Senior Art Director Sylvia Kolaski paramount is protecting the Medicaid Kerndl, CFO of Beaumont Health. After investment income gains and million. Operating revenue im- Special Projects Coordinator Keenan Covington expansion. We worry about that being Net revenue grew 6.7 percent to other nonoperating income, McLar- proved 9.9 percent to $8.7 billion for Sales Support Suzanne Janik phased out or eliminated,” he said. $4.4 billion. en’s net income increased 66 percent the same six month period in 2016. Media Services Manager Hussein Abdallah McGuire said of secondary con- J Henry Ford: Despite a 13 percent in- to $142.9 million in the rst half. Trinity’s Southeast Michigan ali- CUSTOMER SERVICE cern is losing federal subsidies that crease in total revenue to $5.7 billion, J St. John Providence: For the rst six ate is Ann Arbor-based St. Joseph Main Number: Call (877) 824-9374 or [email protected] help pay for private insurance of more six-hospital Henry Ford recorded a 15 months of scal 2017 ending Dec. 31, Mercy Health System, which did not Subscriptions $59 one year, $98 two years. Out of state, than 85 percent of the 350,000 people percent decrease in operating income St. John Providence Health System, a report individual nancial data $79 one year, $138 for two years. Outside U.S.A., add $48 on Michigan’s health insurance ex- to $95.1 million in scal 2016 ending ve-hospital system based in Warren, J University of Michigan Health Sys- per year to out-of-state rate for surface mail. Call (313) 446-0450 or (877) 824-9374. change. “Some portion of those will Dec. 31. had a slightly misleading 38 percent tem: UMHS operating income in- Single Copies (877) 824-9374 become uninsured if the exchange “It was a good year for us by histor- decline in operating income to $29.9 creased 80 percent to $121.1 million Reprints (212) 210-0750; or Krista Bora at piece goes away,” he said. ical perspective. By adding Allegiance million from $48.3 million for the for a 6.5 percent margin during the [email protected] To nd a date a story was published (313) 446-0406 ough McGuire said most health and HealthPlus, we had signicant same period in 2016. rst six months of scal 2017 ended or e-mail [email protected] systems in Michigan won’t face im- growth in revenue, $5 billion to $5.7 But McGuire said 2016 revenue and Dec. 31 from $67.3 million. Revenue mediate budget decisions this year if billion (in 2016),” said Edward Chad- income numbers were slightly inated also grew 8.1 percent to $1.85 billion. Crain’s Detroit Business is published by Crain Communications Inc. Obamacare is phased out or radically wick, Henry Ford’s CFO. because the state of Michigan nally Last year, UMHS completed the Chairman Keith E. Crain altered, repeal would have a devastat- But Henry Ford’s operating margin paid its overdue bill from Healthy acquisition of Wyoming-based Met- President Rance Crain ing eect on many in 2019. dropped to 1.7 percent last year from Michigan Medicaid. ro Health Corp., adding net patient Treasurer Mary Kay Crain Senior Executive Vice President William A. Morrow “ ere are a lot of dollars getting 2.2 percent in 2015. St. John’s revenue increased 1.8 revenue of about $280 million. Executive Vice President/Director of Strategic paid through the Healthy Michigan e decline in income primarily percent to $1.09 billion, while expens- Detroit Medical Center, which is Operations Chris Crain plan,” he said. “People don’t realize was due to the loss of a major Medic- es grew 3.6 percent to $1.06 billion. owned by Dallas-based Tenet Health- Executive Vice President/Director of Corporate Operations KC Crain how much (Obamacare) has helped aid contract for HAP Midwest Health J Trinity Health: e Livonia-based care Corp., did not report nancial Vice President/Production & Manufacturing keep a lot of health systems aoat the Plan and PPO business on the national Catholic system with 90 data to Crain’s, per its usual practice, Dave Kamis past three or four years.” Obamacare exchange for 2016. hospitals, including eight in Michi- and would not comment further. Chief Financial Ocer Bob Recchia Chief Information Ocer Anthony DiPonio Moody’s Investor Services predicts Henry Ford’s net income increased G.D. Crain Jr. Founder (1885-1973) that Trump’s eort to eliminate parts to $275.6 million from $72.1 million, a Mrs. G.D. Crain Jr. Chairman (1911-1996) of Obamacare that expands Medicaid 282 percent increase, primarily be- Editorial & Business Oces INDEX TO COMPANIES 1155 Gratiot Ave., Detroit MI 48207-2732; and private insurance coverage cause of $240 million of equity added These companies have signicant mention in this week’s Crain’s Detroit Business: (313) 446-6000 “would be negative for the nonprot from the Allegiance and Health Plus Beaumont Health 3 Michigan First Credit Union 19 Cable address: TWX 248-221-5122 AUTNEW DET health care sector.” acquisitions. CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is published weekly Among metro Detroit’s major hos- J During its rst Delphi Automotive plc 3 Phimation Strategy Group 19 by Crain Communications Inc. at 1155 Gratiot Ave., Detroit MI McLaren Healthcare: 48207-2732. Periodicals postage paid at Detroit, MI and additional pital systems: six months of scal 2017 ending March Ford Land Development Corp. 22 QLine 1 mailing o¦ces. POSTMASTER: Send address changes to CRAIN’S J Beaumont Health: Eight-hospital 31, McLaren Healthcare Corp., an DETROIT BUSINESS, Circulation Department, P.O. Box 07925, Detroit, Henry Ford Health System 3 Quicken Loans 9 MI 48207-9732. GST # 136760444. Printed in U.S.A. Beaumont enjoyed an operating in- 11-hospital system based in Flint, re- Contents copyright 2017 by Crain Communications Inc. All rights come increase of 43 percent to $200.6 corded a 3.8 percent increase in oper- L.A. Insurance 1 Shinola Detroit 8 reserved. Reproduction or use of editorial content in any manner without permission is prohibited. million in scal 2016 ended Dec. 31. ating income to $67.8 million from McLaren Healthcare 3 Short’s Brewing Co. 10 Over the last three years, Beau- $65.3 million in 2016. McLaren’s oper- MedNetOne Health Solutions 17 The Recovery Project 18 mont’s operating margins have steadi- ating margin rose to 3.6 percent from CRAIN’S DETROIT BUSINESS // MAY 8, 2017 27 THE WEEK ON THE WEB RUMBLINGS April 29 - May 5 | For more, visit crainsdetroit.com Event to reveal results of Oakland 811-square-foot one-bedroom units Detroit and four 1,140-square-foot two-bed- University names room units costing $2,000-$3,000 a Kresge Foundation study Digits month. ational business leaders and new president J Cohen & Co. Ltd. has opened an of- local entrepreneurs remain A numbers-focused look at last ce in the Chrysler House in down- Nbullish on Detroit, according to a akland University has named week’s headlines town Detroit. e 5,500-square-foot new study due out from the Kresge OOra Hirsch Pescovitz, M.D., its space at 719 Griswold St., leased from Foundation. seventh president. 15 percent Bedrock LLC, is the Cleveland-based e Troy-based foundation is set e board of trustees announced The growth metro Detroit saw in accounting rm’s eighth location. to share specics on the latest nd- its decision ursday after the univer- construction jobs over the past J Banyan Investments LLC and De- ings from the Detroit Reinvestment sity reviewed more than 60 candi- year, according to a study by the troit Mayor Mike Duggan broke Index, a report launched in 2016 to dates and hosted several on-campus Associated General Contractors ground on a $10 million renovation of that measure Detroit’s comeback visits and forums. of America. the historic St. Charles School build- from bankruptcy in 2014 through the Rip Rapson: Pamela Lewis: It came down to two nalists: Pes- ing in Detroit’s Islandview perceptions of business leaders and Kresge president Leads the New covitz and Carl Camden, CEO of neighborhood. entrepreneurs, in Washington, D.C. and CEO. Economy Initiative. Troy-based Kelly Services Inc. Cam- 93,000 on May 17 at an event hosted by e den is stepping down from that posi- The number of tickets the OTHER NEWS Brookings Institute. leaders on a panel discussing Detroit’s tion eective Wednesday. University of Michigan will sell for Kresge Foundation President and strategy to bet big on small businesses, Pescovitz will take up her post at 2017 Wolverine home football J The World Heritage Founda- CEO Rip Rapson; Pamela Lewis, head whether it can serve as a model for Oakland on Aug. 13 under a ve-year games in response to increased tion-Prechter Family Fund has made of the New Economy Initiative and An- other Rustbelt cities and what small contract. demand. a new commitment to match up to $5 thony Hatinger, co-Founder and CEO business owners and entrepreneurs A faculty survey conducted in the million in gifts made to support bipo- of Detroit Ento — an Eastern Mar- still require in order to continue to leadup to the vote indicated that the $60 million lar disease research at the University ket-based startup that’s turning locally power Detroit’s comeback. faculty preferred Pescovitz over Cam- Total cost of the Wagner Place of Michigan. sourced insects into food products like Want to listen in? e event will be den and trusted more in her abilities development, a Ford Land J Wayne State University’s Center for tortilla chips — will join other corpo- webcast live and is open to the to lead the university and implement Development Corp.-led project Urban Responses to Environmental rate, philanthropic and nonprofit public. her vision. that broke ground last week in Stressors received a $7.5 million ve- Pescovitz is senior vice president west downtown Dearborn and is year renewal from the National Insti- ody Text Cap hdhk hkdhkhkhdk for Eli Lilly and Co.’s pharmaceutical expected to house 600 Ford tute of Environmental Health Scienc- Bhkhk hdkh khkhd khkh kdh khk company and U.S. medical leader for Motor Co. workers. es of the National Institutes of Health. Nearing run for governor, dkh kh kdhk khkdhkjh khdk khk Lilly Bio-Medicines and former CEO J e Battle Creek-based W.K. Kel- dkhk kdh khkj hkdhk kh kdhkjh kd of the University of Michigan Health logg Foundation has made a $3.5 mil- hkhdkjhk dhkhkhkd System. aged by Village Green Cos., of which lion grant to support the Detroit Calley touts repeal of MBT A renowned pediatric endocrinol- Holtzman was formerly CEO. Promise scholarship program for t. Gov. Brian Calley inched clos- Calley co-sponsored three of the ogist and researcher, she has pub- J A.G. Simpson (USA) Inc. is plan- high school graduates in the city. er to a campaign for governor bills that were part of MBT legisla- lished more than 190 papers and ning an expansion of facilities in Ster- J Henry Saad, a Michigan Court of Lwith a new online video advertise- tion in 2007 that replaced the Sin- books, according to a news release. ling Heights, which is expected to Appeals judge since 1994, will retire ment last week that makes a direct gle Business Tax, which the Legis- She also serves as an adjunct profes- generate capital investment of $9 mil- from the bench eective Nov. 30. appeal to business owners. lature repealed at the behest of a sor of pediatrics at the Indiana Uni- lion and create 50 jobs. e Michigan J e city of Detroit opened applica- “I got rid of the Michigan Business voter-initiated campaign to over- versity School of Medicine and was Economic Development Corp. tions last week for its TechHire Boot- Tax — it just haul the tax code for business previously executive associate dean awarded the company a $400,000 camp training program aimed at De- didn’t work,” profits. for research aairs there. Among her performance-based grant for the troit residents interested in becoming Calley says in the Calley’s work with Democrats awards and honors, she was elected project. entry-level developers. new ad paid for on the MBT could be an issue used to the National Academy of Medicine. J Comerica Park will host an Inter- J e city of Detroit has issued re- by his political against him in a Republican pri- Pescovitz was the University of national Champions Cup match on quests for proposals as it seeks out action commit- mary next year. Michigan’s rst female executive vice July 19 between A.S. Roma and Paris assistance on planning and design tee. “We re- In an interview with Crain’s, president for medical affairs and Saint-Germain. It will be the rst soc- strategies for Russell Woods, Jeer- placed it with it Calley defended his work on the health system CEO. She stepped cer event played at the home of the son Chalmers and Banglatown under with one that much-hated MBT with Democrats, down from UM in June 2014 and ac- Tigers. its continuing neighborhood rede- was fair for all who controlled the state House cepted the Eli Lilly position the same J Livonia-based supplier Tower In- velopment initiative. businesses — Brian Calley: Has and governor’s office at the time. month. ternational Inc. said its rst quarter J e city of Detroit has begun dem- large and small. history with “There are times you have to ap- Oakland University announced in net income more than doubled as olition of the former Animal Control Your govern- business taxes. proach things with incremental September it would not renew the sales rose slightly and the company building at Riverside Park as part of a ment got that progress,” he said. “... If I had contract of George Hynd, who served avoided major costs it faced during multimillion dollar plan to expand right.” walked away from the process, I’m as president for three years, earning the same quarter last year, Automo- and improve the park on the city’s As president of the Senate, Calley afraid we wouldn’t have been able $400,000 annually. tive News reported. southwest side. cast a tie-breaking vote in 2011 on to make even incremental progress J Bingham Farms-based Floyd Street J Two Michigan high school teams the main package of legislation that in protecting as many small busi- BUSINESS NEWS LLC started construction Monday on earned top honors at the FIRST Ro- replaced the MBT with the 6 percent nesses as possible.” e Park, an eight-unit luxury apart- botics World Championship in St. Corporate Income Tax. It was part of Calley said he worked to ensure J e hosts of Detroit’s top-rated ment complex in Birmingham at 1193 Louis, a competition that Detroit will a $1.8 billion tax cut for businesses small businesses could pay a 1.8 morning radio show, “Dave and Floyd St. The Park will offer four host for the next three years. that was paid for, in part, by the percent income tax rate as an al- Chuck the Freak” on 101.1 FM WRIF, elimination of multiple tax credits, ternative to MBT’s complicated got four-year contract extensions. deductions and exemptions for mixture of a 4.95 income tax and J Hockeytown Cafe in downtown individuals. 0.8 percent gross receipts tax. Detroit is getting a new broadcast and But Calley’s web ad only tells part The MBT legislation Calley was recording studio plus performance of the story about the demise of the involved in crafting lowered the al- space on its second oor for CBS Michigan Business Tax. ternative rate from 2 percent and Radio Detroit stations. As a Republican state representa- increased the limits on owner in- J Clarkston native Luke Jaden is tive from Ionia County, Calley was come, gross receipts and business lming an adaptation of horror au- involved in the crafting of the com- income for filing under the alter- thor Stephen King’s “My Pretty Pony” promise MBT legislation in 2007 and native tax, according to the non- at Blake’s Orchard in Macomb Coun- joined then-Democratic Gov. Jenni- partisan House Fiscal Agency. ty and areas throughout Romeo, with fer Granholm at the bill signing. “I was able to expand the num- costumes and accessories provided e MBT, a levy that taxed a com- ber of businesses that qualified for by Dearborn-based Carhartt Inc. bination of corporate income and (the alternative tax),” Calley said. J Jonathan Holtzman’s new Farm- gross receipts, was replaced in 2011 Calley is planning an event on ington Hills-based multifamily real with the at 6 percent Corporate In- May 30 that’s expected to be his estate company City Club Apart- come Tax. Some large businesses re- launching pad for the 2018 gover- ments has taken over management of KIRK PINHO/CRAIN’S DETROIT BUSINESS main in the MBT system to cash-in nor’s race. some of its apartment assets. e The Country Club of Detroit in Grosse Pointe Farms is set to host a U.S. Amateur job retention and creation tax credits “It’s going to be a great day,” Cal- apartments were previously man- championship Aug. 29-Sept. 3, 2020, the United States Golf Association announced. through 2031. ley said. DETROIT is a RISING LEADER in INNOVATION and CREATIVITY – and so are YOU.

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