Home is where Andy Appleby’s heart is. Sports entrepreneur launches a league of his own, Page 3

MAY 30-JUNE 5, 2016

By Bill Shea [email protected] The Regional Transit Authority of Southeast Michigan on Tuesday will unveil a proposed RTA to four-county tax that would raise billions of dollars over 20 years to pay for a bus rapid JEFF JOHNSTON/CDB transit system in the region and a commuter rail line between Detroit and Ann transit lines on the Woodward, Michigan and tion and Troy-based Kresge Foundation, is Arbor. Gratiot avenue corridors, and on Washtenaw expected to begin a month or two before the The specifi cs of the tax, Avenue between Ann Arbor and Ypsilanti, Nov. 8 vote. The RTA itself is forbidden by unveil which is intended for the create the long-discussed commuter rail state law from advocating a yes vote but will November ballot in service, and cover annual operating costs. conduct an informational campaign through Oakland, Wayne, Once the master plan is released Tuesday, the election. Macomb and Washtenaw a four-week public comment period will If voters approve the transit tax, all counties, won’t be made begin. The RTA will process the opinions and property owners in the four counties would public until the RTA Michael Ford: suggestions it receives from a series of public pay it — there would be no opt-out provision, releases its master plan Rapid bus lines, meetings and refi ne the plan, if necessary. unlike the suburban bus tax. The RTA millage during a news conference commuter trains After that, the master plan will be presented would be atop the other transit taxes already millage at 10 a.m. Tuesday at hang in balance. to the RTA’s 10-member board for approval. in place in the Ann Arbor area and Detroit Lawrence Technological The board will vote on the plan, its budget suburbs. 20-year proposal would University in Southfi eld. and the language for the ballot proposal. To build public support for another transit raise billions to pay for bus RTA CEO Michael Ford told Crain’s recently A multimedia "vote yes" campaign, tax, Ford and other RTA offi cials have spent a that the tax likely would be about 1 to 1.2 mills, created by and fi nanced largely by the rapid transit, commuter rail which would raise money to build bus rapid pro-transit Detroit Regional Chamber Founda- SEE RTA, PAGE 16

Survey: Midsize employers adjust to reduce health care cost increases By Jay Greene “We have a younger workforce, to $75, compared with 23 percent of [email protected] “We are trying to  gure out how to and looking at our numbers with companies in 2015. Tier one usually Health care costs for Southeast incorporate wellness to drive down claims, we are hoping to reduce our includes lowest-cost generic drugs Michigan midsize companies are costs,” Nessel said. The company of- and features the expected to increase by 4 percent costs for employees.” fers two PPO plans with $500 and lowest copays, this year, a slight uptick from 2015’s Brittany Nessel, NS International Ltd. $1,000 deductibles, which is similar with a second near-historic low of 3 percent, but to the fully insured plan offered the tier for brand- still below national projections of care costs by boosting deductibles tion drug management and tele- past several years with Blue Cross, name drugs and 4.3 percent, according to a new re- for PPO and HMO benefi t plans, us- medicine programs, according to she said. a third tier for port from Troy-based Marsh & Mc- ing high-deductible health insur- the 440 employers that participated NS International, an automotive nonpreferred Lennan Agency LLC. ance plans, wellness programs tied in Marsh & McLennan’s 13th annual supplier that employs 240 people, brand-name Most employers managed health to incentives, aggressive prescrip- Southeast Michigan Mid-Market mostly engineers in Michigan and drugs. General- Group Benefi ts Survey. Ohio, is owned by Nippon Seiki Co. ly, the higher the Rebecca But some employers lowered Ltd. of Japan. tier a drug is in, © Entire contents copyright 2016 McLaughlan: by Crain Communications Inc. All rights reserved health care costs by shifting from Rebecca McLaughlan, vice presi- the higher the Drug prices are a crainsdetroit.com Vol. 32 No 22 $2 a copy. $59 a year. fully insured plans to self-insurance. dent with Marsh & McLennan, said copayment. challenge. Troy-based NS International Ltd. drug price increases are driving Drug costs shifted to self-insurance with Blue higher employer costs and leading “are the highest Cross Blue Shield of Michigan, cut the some employers to add higher co- in years, especially for biotech number of dental and vision carri- payment tiers for specialty medica- drugs,” McLaughlan said. ers to three from 10 and reduced tions. While employers continue to of- company health benefi t costs by For example, 30 percent of com- fer high-deductible health plans (47 14.6 percent, said Brittany Nessel, panies now offer a fourth tier of HR business partner. drug copays, which range from $60 SEE SURVEY, PAGE 17 2 CRAIN’S DETROIT BUSINESS // MAY 30, 2016 seas by reducing accidents and dan- to be completed by November. MICHIGAN gerous combat situations for sol- n Manistique-based Mackinac Fi- INSIDE diers, especially in places where nancial Corp. will extend its footprint THIS ISSUE ...... 13 bombs and improvised explosive in Wisconsin with a planned acqui- CALENDAR CLASSIFIED ADS ...... 15 devices could be hidden, officials sition of Niagara Bancorp. The two DEALS & DETAILS ...... 13 said. The I-69 stretch was chosen for banks expect the $7.3 million deal to KEITH CRAIN...... 6 testing because of its proximity to an close in the third quarter or early MARY KRAMER ...... 6 international border crossing and to fourth quarter of this year, MiBiz re- OPINION ...... 6 BRIEFS the R&D center’s headquarters at the ported. Mackinac Financial, with RUMBLINGS ...... 19 Snyder halts Flint probes plan to address underground infra- U.S. Army Detroit Arsenal in Warren. assets of $732.9 million as of March WEEK ON THE WEB ...... 19 aer prosecutors object structure needs statewide. The Re- 31, is the parent company of mBank, publican governor and GOP legisla- MICH-CELLANEOUS which has 13 offices in the Upper Gov. Rick Snyder last week tempo- tive leaders still have to sign the n Coopersville-based Admiral Pe- Peninsula and three in the northern COMPANY INDEX: rarily halted civil and administrative accord, but unsettled details were troleum Co. — a long-standing price Lower Peninsula, including one in SEE PAGE 18 investigations into how the state De- described as small. leader at Michigan gas pumps — Birmingham, plus three in Wiscon- partment of Environmental Quality has been sold to Sun Capital Partners sin. Niagara Bancorp., the holding and filed suit. Caribou Coffee said it contributed to Flint’s lead-tainted Army to test driverless Inc., a Boca Raton, Fla.-based pri- company of First National Bank of has contributed to a GoFundMe drinking water crisis, after being vate equity firm. The acquisition in- Niagara, has four offices in Wiscon- fundraising page to help with the warned they are hampering state vehicles on I-69 in June cludes 130 Admiral-branded gas sin with assets of about $70 million. Chorleys’ rebranding efforts. and federal criminal investigations, A convoy of U.S. Army vehicles will and convenience stores and nine n A cafe in the northern Lower n Long a favorite of Lansing The Associated Press reported. cruise along I-69 in Lapeer and St. Lemmen Oil Co. stores across Michi- Peninsula has to change its name sports fans, Tripper’s Sports Bar & Snyder’s office released letters Clair counties in late June as part of gan and northern Indiana, MLive. after a couple was accused by coffee Grill closed last week after 27 years in from state Attorney General Bill an initial testing of driverless military com reported. Terms of the sale store chain Caribou Co‘ee of trade- business. Owner Steve Tripp told Schuette and U.S. Attorney Barbara vehicle equipment on public road- were not announced. mark infringement. Eric and Kelly the Lansing State Journal that more McQuade raising concerns about ways, officials from the U.S. Army n Six volleyball courts or four Chorley have to change the name of and more people are staying home an already-concluded state police Tank Automotive Research, Develop- full-sized basketball courts will re- the Blue Caribou Cafe in Beulah., the to watch games on their big-screen investigation of the DEQ’s role in the ment and Engineering Center and the place the roller skating rink at the Grand Rapids Press reported. The TVs, and that with new state regula- lead contamination of the city’s tap Michigan Department of Transporta- Woodland Skating Center in Grand Minneapolis-based chain claimed tions, its business for charity poker water. Schuette also complained tion said. Rapids, DV5 Properties LLC, a sports the name and logos were too similar tournaments had diminished. about an ongoing inquiry targeting The vehicles will test a piece of academy owned by Amway Corp. the state Department of Health and technology critical in the develop- heir Cheri DeVos, announced. MSA Corrections Human Services that is being con- ment and testing of driverless and Woodland, the new 105,000-square- ducted by the state auditor general connected vehicles, the Times Her- foot facility, will offer indoor turf for n The headline on the May 23 article about Bank of America Merrill and the department’s inspector ald of Port Huron reported. Someone lacrosse and soccer and have an Lynch naming Senior Vice President Matt Elliott as head of business general at the governor’s request. will be behind the wheel of each ve- outdoor sand volleyball league and banking for the Midwest region should have abbreviated his title as SVP. Also last week, key Republican hicle, which is equipped with fea- outdoor soccer fields. It replaces n A May 23 story about Aghogho Edevbie should have said he worked lawmakers and Snyder’s adminis- tures from the driverless vehicle sys- what was built in 1969 as West Mich- at Butzel Long PC for two years and that while there he prepared deposi- tration agreed on the framework of tems. I-69 will remain open to traffic. igan’s largest skating center. DV5 tions in a federal lawsuit. a spending plan that would direct If the testing is successful, the bought the facility for $2.075 million n A May 23 story about Tyson Gersh should have said his urban farm $165 million more to the Flint water driverless-vehicles technology could in April, according to city property has produced 50,000 pounds of food over the past five years. crisis and significantly scale back a save the lives of soldiers serving over- records. Renovations are expected

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“Why do we want to buy teams in other Straith markets when I can create just as good here, and create the mascots, colors, nicknames and uniforms?” Hospital Andy Appleby, General Sports remolds itself Focus moves beyond plastic surgery roots

By Jay Greene [email protected] Straith Hospital for Special Sur- gery, a hospital in Southfi eld found- ed by a plastic surgery pioneer, is branching out under new CEO Jan Rys, CFO Bradley Bescoe and long- time Chairman James Straith. Founded and open for business in 1954 by Claire Straith and his physician son Richard, 34-bed Straith Hospital is looking to expand medical rehabilitation, eye surgery and general inpatient services. Hoping for hits “People either think we only do plastic surgery Utica baseball stadium, which opens Monday, or they have part of wider Midwest expansion plan never heard of (Straith),” said By Bill Shea M-59 in Utica. Rys, who be- [email protected] And Appleby doesn’t just own came CEO last When Andy Appleby owned the the 2,000-seat ballpark he built for October after Single-A Fort Wayne Wizards base- $15 million. He also owns the being a nurse at ball team, he’d make the three- three-team developmental United the hospital Jan Rys: More and-a-half hour drive from his , since 1984. Shore Professional Baseball League than 30 years at sports management business in which he plans to expand to 20 “We have a hospital, now CEO. Rochester to northeast Indiana teams in 10 Midwest stadiums new team here and often dream of building a sta- over the next decade. By 2017, he and are looking dium closer to home. wants at least four to six teams to rebrand the hospital,” she said. “It was probably 12 years ago, playing, and 10 to 12 teams by “We have fi ve new (operating coming back from Fort Wayne, I 2020. rooms), good OR times, and have was thinking I’d like to build a And all of those teams, unaffi li- underutilized space. We are also ballpark near my house,” he said. ated with Major League Baseball’s looking at adding other inpatient That dream becomes reality on minor leagues, would be owned PHOTOS BY JACOB LEWKOW services,” including cardiovascular Monday when Appleby’s Jimmy by Appleby through his Of the stadium’s 24 suites, all but three have been leased under  ve-year care. John’s Field opens for play along SEE STADIUM, PAGE 15 contracts that range in annual cost from $35,000 to $55,000. Straith Hospital is the last inde- pendent, nonprofi t hospital in Southeast Michigan. The other three independent hospitals in metro Detroit are Grand Prix organizers believe they’re on right road now for-profi ts Oakland Regional Hospi- tal, also in Southfi eld; Michigan By Dustin Walsh team owner, championed and in- Penske Corp. and Grand Prix chair- Surgical Hospital in Warren; and [email protected] Chevrolet Detroit Belle vested in the 501(c)(3) nonprofi t man. “And we’re going to keep doing Pontiac General Hospital, which Organizers of the Chevrolet De- Isle Grand Prix race’s return to Detroit in 2007. The it for years to come.” emerged from bankruptcy earlier troit Belle Isle Grand Prix have found Great Recession also crippled the The event, set for June 3-5, has this month under new manage- Friday through Sunday the winning formula for IndyCar When: event, which was not held in 2009, sold 74 sponsorships — an all-time ment. racing in Detroit. More details: Page 17 2010 and 2011. high — and has sold out all 33 of its “They have as good a quality as The seventh race weekend since Penske is past chairman of the corporate and spectator chalets. anybody in the market for surgery the event’s return , Roger Penske and signs of slowing down. Downtown Detroit Partnership, of The race is expected to have an eco- and rehabilitation, and they are low- partners have invested $13 million The Grand Prix was mothballed which the race is a subsidiary. nomic impact on the region of near er cost because they don’t have a lot in the track and other improve- after 1997 until Roger Penske, the “We’re starting to stabilize; we $50 million. of overhead,” said Harry Dalsey, ments to Belle Isle to create one of Bloomfi eld Hills-based Penske know what to expect now,” said Bud “We’ve got the same amount of president of Dalsey & Associates in the largest events in the city, with no Corp. founder and Penske Racing Denker, executive vice president of SEE GRAND PRIX, PAGE 17 SEE HOSPITAL, PAGE 18

MUST READS OF THE WEEK Mackinac Policy Conference Banks of the future Live coverage next week at Mobile banking is drastically changing the shape CrainsDetroit.com/mackinac. and purpose of the traditional bank branch, Page 9 4 CRAIN’S DETROIT BUSINESS // MAY 30, 2016 Ford to buy nearly 2 blocks in downtown Dearborn By Kirk Pinho [email protected] “Ford Land is exploring options to Ford Motor Co. is purchasing near- acquire and develop o ce and ly two blocks of prime property in west downtown Dearborn, includ- retail space in downtown Dearborn ing a historic former hotel and a pair to support its campus of well-known restaurant sites. Ford Land Development Corp. transformation plan.” Chairman and CEO Donna Inch Dawn Booker, Ford Land Development Corp. confirmed Friday the planned pur- chase of property on the south side two blocks bounded by Michigan to and Oakman Boulevard and Schae- of Michigan Avenue between Ma- the north, Oakwood to the east, fer between Ruby and Bryan streets. son Street to the west and Oakwood Mason to the west and West Village Both of the city's downtown de- Boulevard to the east. Drive to the south contain about 20 velopment authorities were estab- She declined to provide specifics buildings totaling nearly 130,000 lished by ordinance in 1977. on plans for the properties, but re- square feet. Some of the properties The automaker has also signed a development is expected with office in that area are expected to retain lease for about 220,000 square feet in and retail space. the same ownership. the former Lord & Taylor department “Ford Land is exploring options West downtown runs on both store in Fairlane Town Center as well to acquire and develop office and sides of Michigan between Outer as a connected wing of the mall. The retail space in downtown Dearborn Drive to the west and east of Brady store is about 120,000 square feet and to support its campus transforma- Street. East downtown generally the connected wing is about 100,000. tion plan,” Dawn Booker, commu- surrounds the intersection of Mich- Kirk Pinho: (313) 446-0412 nications manager for Ford Land De- igan Avenue between west of Schlaff Twitter: @kirkpinhoCDB velopment Corp., the real estate division of the Dearborn-based au- tomaker, said in a statement. “Ford Land will continue to work with the city of Dearborn and share more detail when finalized.” That could be in a couple weeks, Inch said. The properties — which include A Fee-Only Wealth Management Group the former La Shish and Talal’s restaurants at 22039 and 22041 Michigan Ave. — have a mix of pub- lic and private ownership. For example, the Dearborn City Michigan’s #1 Financial Advisor Council on Tuesday passed a resolu- tion authorizing the sale of those two buildings totaling about 10,000 square feet to Ford Land, which is in the beginning stages of an ambi- tious 10-year plan to transform its &KDUOHV&=KDQJ headquarters campus and research &)3Š0%$06)6&K)&&/8 and engineering center through 0DQDJLQJ3DUWQHU new construction and demolition to the tune of at least $1 billion. 2QHRIWKH1DWLRQ熎V7RS1$3)$5HJLVWHUHG The city resolution called for a )HH2QO\)LQDQFLDO$GYLVRUV purchase price of $200,000. Another one of the properties, the historic 120-year-old former Wagner Hotel at the corner of Mich- igan and Monroe, is part of the rede- velopment. Last year, a technical assistance panel of the Urban Land Institute Michigan drafted a 40-plus- page report that called for the devel- We Uphold a Fiduciary Standard opment of 26,000 square feet of new retail space along with 71 units of 犇犆犇:HVW%LJ%HDYHU5RDG residential housing ranging from 犇犊WK)ORRU 440 to 900 square feet, renting for $1.57 per square foot in the area. 7UR\0,犊犎犆犎犊 Last year, a technical assistance 犈犊犎 犌犎犍犇犈犋犎RU 犎犎犎 犍犍犍犆犇犈犌 panel of the Urban Land Institute Michigan drafted a 40-plus-page proposal on the historic 120-year- old former Wagner Hotel at the cor- ner of Michigan and Monroe. The www.zhang nancial.com report called for the development of 26,000 square feet of new retail $VVHWVXQGHUFXVWRG\RI/3/)LQDQFLDODQG7'$PHULWUDGH “Our employees come to us with a willingness space along with 71 units of residen- tial housing ranging from 440 to 900 $VUHSRUWHGLQ%DUURQ犑V0DUFK犋犈犆犇犌5DQNLQJVEDVHGRQDVVHWVXQGHUPDQDJHPHQWUHYHQXH and true desire to be the best. And that leads JHQHUDWHGIRUWKHDGYLVRUV犑ILUPVTXDOLW\RISUDFWLFHVDQGRWKHUIDFWRUV $VUHSRUWHGLQ to great results.” square feet renting for $1.57 per %DUURQ犑V$XJXVW犈犊犈犆犇犋7KHUDQNLQJUHIOHFWVWKHYROXPHRIDVVHWVRYHUVHHQE\WKHDGYLVRUV month in the area. DQGWKHLUWHDPVUHYHQXHVJHQHUDWHGIRUWKHILUPVDQGWKHTXDOLW\RIWKHDGYLVRUV犑SUDFWLFHV – Rob MacKinlay, President 1$3)$5HJLVWHUHGVWDWXVUHSRUWHGDVRI6HSWHPEHU犇犎犈犆犇犋RQZZZQDSIDRUJ According to data from CoStar RQHÀUPEHWWHUWRJHWKHU_FRKHQFSDFRPJKG Group Inc., a Washington, D.C.-based 0LQLPXPLQYHVWPHQWUHTXLUHPHQW犇犆犆犆犆犆犆 real estate information service, the CRAIN’S DETROIT BUSINESS // MAY 30, 2016 5

This is the tale of two Shacks — the locally beloved Chicken Shack and the New York phenomenon Shake Shack — and their squabbles over the ‘Chicken Shack’ name, told in a graphic-novel format. The text and art are by Crain’s reporter Chad Halcom. It’s an Trademark squawk experiment in form for Crain’s; let us know what you think by sending an email to Managing Editor Michael Lee at [email protected].

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OPINION Yahoo bid hints at Gilbert’s vision etroit as the “fintech capital of the world.” With that offhand remark, Dan Gilbert hinted at a strat- egy that may lie behind his reported bid for Yahoo, Dthe ailing digital behemoth that put itself on the block. Ya- hoo Finance is a major asset of the online portal. Gilbert’s Quicken Loans is as much a technology com- pany as a mortgage originator. And the growth of Quicken is helping to fuel Gilbert's downtown investments. Gilbert, whose bid is backed by financial help from inves- tor Warren Buffett, has been largely silent on Yahoo, but was asked about it during a panel discussion about finan- cial technology companies last week during Detroit Start- up Week. Many suitors are after Yahoo, but the confidential auction process is expected to conclude in early June. You can say a lot of things about Gilbert, but “he thinks Paying the whistleblower: A necessary evil? too small” isn’t one of them. attletale, snitch, disloyal” were his client settled for 10 percent of among the words two well- dollars recovered because he want- Tknown whistleblowers said were ed more money to go to Fata’s vic- Dec. 1 looms for new OT rules used to describe them after they tims. But Haron has also amended You can’t really say employers had no warning. The new went public with corporate mis- the original complaint with addi- deeds. tional allegations and new parties. overtime rules — announced by President Barack Obama Sherron Watkins, who blew the The U.S. Attorney’s office has until earlier this month — had been drafted 10 months ago and whistle on energy giant Enron Corp., July 15 to determine whether addi- will require companies to pay overtime to salaried workers and Cynthia Cooper, who did the MARY KRAMER tional actions will be taken. earning $47,476 or less. That’s a big jump from the current same at now-defunct WorldCom Publisher Hardly a day passes without a level of $23,660. Inc., told attendees at Crain’s Gener- news story about new ethical lapses, The U.S. Department of Labor estimates 4 million more al and In-House Counsel summit investigations and attorneys’ fees, earlier this month that they paid because they fear retaliation — the whether it’s Detroit’s Land Bank, Americans will be eligible for overtime. But how many of heavy personal and professional kind both Watkins and Cooper ex- Medicare fraud allegations, Detroit those folks are working OT now? Estimates vary. penalties for their actions. perienced. Public Schools or the Flint water cri- Employers — and their human resources and legal coun- Similar whistleblowers today, One such drama is playing out lo- sis. But Haron’s own caseloads show sels — are scrambling to figure out how the ruling applies be- however, can be eligible for finan- cally in the case of George Karad- that whistleblowing is alive and well fore a Dec. 1 deadline. cial incentives — 10 percent to sheh, the former practice manager in corporate America, too. One case 30 percent of what the government in Farid Fata’s oncology practice involved two former drug salespeo- If companies want to keep their payroll costs stable, the recovers for violations of securities who so far has earned nearly $2 mil- ple who alleged a drugmaker was il- monitoring of the hours people actually work will begin now. and federal laws. Whether it’s a boon lion for alerting authorities to Fata’s legally marketing a drug for non- In some cases, employers may figure out which is cheaper or a bane depends on where you sit. scheme to intentionally poison pa- FDA approved uses. — bump up the pay of some employees to make them ex- It certainly has created a new legal tients by treating them for cancer Maybe it has ever been thus. And empt — which is the compensation-boosting goal Obama niche for some lawyers who are now they didn’t have. Fata is serving a I guess that’s why taxpayers, ulti- had all along — or converting salaried jobs to hourly. experts on the terms of whistleblow- 45-year prison sentence. mately, now pay tipsters. er laws. Karadsheh knew enough to call Or employers could opt to begin “editing” job assignments The Dodd-Frank Wall Street Re- attorney David Haron after several Mary Kramer is publisher of Crain’s in ways that could hurt people in the early stages of their ca- form and Consumer Protection Act employees shared concerns about Detroit Business. Catch her take on reers. An employer may refrain from sending a junior worker of 2010 came too late to help Wat- Fata with him. That led to the filing business news at 6:10 a.m. Mondays on out of town because of difficulty in tracking hours worked. kins and Cooper. But they applaud of a sealed lawsuit in federal court the Paul W. Smith show on WJR AM 760 Whatever the strategies, employers have until Dec. 1 to the incentives because some inside that allowed him to claim some of and in her blog at officers and executives don’t blow the money feds seized as part of the www.crainsdetroit.com. figure it out. the whistle on corporate misdeeds fraud recovery. Haron told reporters

troit shine, get a look at how the tele- racing. I understand that there are vision cameras show off Detroit plenty of packages for the whole Once again, Detroit shines from the Belle Isle vantage point. family to enjoy. There is some spectacular racing, I have always said that the first There are a couple of events every the motor capitol of the world. It is a but for a global audience, Detroit automobile race happened five year that are now a part of the fabric great week for publicity and a sec- has never looked better. minutes after the second car was of Detroit. ond week for giving the public a Over that three-day weekend, built. Well, this weekend, Chevrolet Every January, we celebrate the chance to see hundreds of cars on tens of thousands of race fans from and Honda will be duking it out for car and the car companies on an in- display. By now, it has become an KEITH CRAIN all over will descend on Belle Isle to bragging rights. And they, and their ternational stage. Thousands of institution for Detroit. Editor in chief watch first-hand some very com- teams, are very serious. journalists from around the world This weekend, we have what has petitive racing. It has become a rare The Detroit Belle Isle Grand Prix descend on Detroit to cover the become the second half of our Mo- share the spotlight during the week- doubleheader that has Indy cars is a second great automotive event North American International Auto tor City spectacular. end. racing for victory both Saturday and of which our city can be proud. It's Show. The impact on the economy Three days of racing on Belle Isle, But the stars of the show are still Sunday. another one of those must-see is substantial, and it certainly puts following the 100th running of the the Indy race cars — all still vying for It's a great way to enjoy Belle Isle. events. Detroit in the most positive light Indianapolis 500 on Memorial Day. the very coveted national champi- And like our motor show, it is a won- Be sure and put it on your bucket possible. It re-establishes Detroit as Lots of motor racing events will onship. If you ever want to see De- derful way to enjoy the heritage of list; it's worth it. CRAIN’S DETROIT BUSINESS // MAY 30, 2016 7 Food companies sought for Aug. 22 Crain’s summit Crain's Detroit Business is seeking YOUR PLANE SHOULD BE food companies looking for invest- ment to take part in an event this summer tied to the state’s food BASED WHERE YOU ARE. economy. The Crain's Food Summit on Aug. 22 at Eastern Market will shine a light on the state’s dynamic food compa- nies and the innovative players in that space. Part of the event is designed for investors to meet investment-wor- thy food-related companies. Food companies interested in taking part can apply at CrainsDetroit.com/ foodcompanies. Crain's is looking for companies that fit into three categories: n Impact companies, those that are helping to bring healthy food to underserved communities, and that with some coaching and mentoring can take their business to the next level. n Early-stage companies that have some investment and revenue but are looking for additional inves- tors to get the company to the next level. n Second-stage companies that State-of-the-art facilities, unrivaled safety standards and mission-specific have more than 100 employees and fleet provide members best-in-class personalized services and availability. $1 million in revenue and can show- Originating right here in metro Detroit. case the kinds of investment-wor- thy companies we have in the state. 248-461-9001 | corporateeagle.com A team of food executives and ex- perienced investors will help Crain's vet the companies. On the day of the event, a small panel of judges will help pick three winners. The Michigan Good Food Fund is title sponsor of the investor portion of the event and will also be spon- soring the award for the impact companies. The fund is a new $30 million effort that provides fi- nancing and business assistance to healthy food production, distribu- tion, processing and retail projects. Deadline for companies to apply to be part of the event is July 1. Email questions to Dan Duggan at [email protected].

Wayne County helps win $700,000 grant to boost summer jobs program Wayne County has helped secure a $700,000 grant that will employ up to 1,000 people enrolled in Grow De- troit’s Young Talent summer jobs program. The grant from the Michigan Child Care Fund, announced Thursday, will be paired with $700,000 raised from the philanthropic community and the Detroit Employment Solu- tions Corp. The money comes one week af- ter the Obama administration and Mayor Mike Duggan announced that the summer jobs program The Leader in would receive a $2 million federal grant. The jobs program teams Complex Business Litigation youths with employers for summer jobs and provides work readiness training, transportation and em- ployer support services. 8 CRAIN’S DETROIT BUSINESS // MAY 30, 2016 Q&A: PAUL HOGLE Departing DSO’s Paul Hogle looks back at legacy, memories By Sherri Welch whole career Q: What other things do you see as [email protected] working with part of your legacy? I would never The Detroit Symphony Orchestra’s boards of direc- say it was all me, but we are definite- second-in-command, Executive tors and some of ly a stronger organization now than Vice President Paul Hogle, will depart the world’s best in 2010. Fundraising and ticket sales after July 8 to become president of musicians in have grown. Webcasts were estab- the Cleveland Institute of Music. He Detroit and oth- lished, neighborhood concerts were spoke with Crain’s Senior Reporter er places. I got launched. Sherri Welch about his six-year ten- into this field 30 Q: Did you play a role in launching ure at the DSO. His remarks have years ago be- the DSO’s $125 million endowment been edited for length and clarity. Paul Hogle: Never cause I wanted campaign in 2012, which has raised Q: You joined the DSO in 2010 with had second to run an institu- $40 million to date? Of course it was the musicians’ strike on the horizon. thoughts coming tion. Last June the full enterprise behind the cam- Ever have second thoughts? The to Detroit. when I became paign. Sustainability is something thunderclouds were beginning to acting CEO, I re- that will be a permanent challenge form, but I never had a second connected with that mission and got for arts organizations in Detroit un- thought. Anne (Parsons) told me to see it play out when Anne went on less they can capitalize through en- that when I got to Detroit I would her sabbatical. I knew I wanted to dowment. Was I a voice? Certainly, know quickly whether the Detroit get back to that early ambition. but not the only voice. As result of story, character and excellence was Q: What legacy do you think you the endowment fundraising over for me. I knew before the first morn- have le at the DSO? People. We the past few years, we will have dou- ing was over that Detroit was for me. brought and promoted more than bled the size of our endowment Detroit doesn’t hide who she is. That 30 people from across the region when the gifts are all paid in to $80 is either really attractive to you or it’s and the country to the staff. That is million. not. To me, it was very attractive. the most obvious legacy I will leave Q: What memory stands out the Q: In what way has your position at the here — strong people, well-pre- most for you as you prepare to leave DSO prepared you for your new role in pared for work here or whatever the DSO? Carnegie Hall, the DSO’s Cleveland? I truly have been the clas- their futures might hold. There will first time back in 17 years, in 2013. sic No. 2. I’ve been responsible for be other things that will be my lega- That opening night when every- day-to-day operations, from artistic cy, but I will be most proud of the body was waving their red, Detroit to education to fundraising and people, because they will continue flags; I’ll never forget that. Half the marketing programs. I’ve spent my the work. hall was from Detroit.

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Loans subject to credit approval. Member FDIC Ann reflects a composite of clients with whom we’ve worked; she does not represent any one person. 5368_FM16 CRAIN’S DETROIT BUSINESS // MAY 30, 2016 9 SPECIAL REPORT TOM HENDERSON [email protected] Twitter: @tomhenderson2 At United Shore, it’s not all about the work How important is culture? All-im- portant, says Mat Ishbia, president and CEO of Troy-based United Shore Finan- FINANCE cial Services LLC. In 2011, the company did about $1.8 billion in mortgages, with most of Banks its employees crammed into 25,000 square feet of space in a former Farmer Jack grocery store in Birmingham. Last year, United Wholesale Mortgage, United Shore's fast-growing wholesale invest in division, was the top wholesale lender in the U.S., according to Inside Mortgage Finance. It did $12.96 billion, a year-over- year increase of 54.6 percent and nearly $1 billion ahead of the runner-up. digital age The company is on track to set an- other record this year. It had its best first quarter ever, ending what is normally a Institutions big and small slow three months by closing 14,576 adapt with more mobility, loans worth $3.9 billion. It did $1.8 bil- lion in March alone. fewer branches Nobody is crammed anymore. The company occupies 250,000 square feet By Tom Henderson in the former Entertainment Passbook [email protected] building at Stephenson Highway and What do tiny Clarkston State Bank and big Maple Road. Employees are offered Ally Bank have in common? Almost nothing plenty of amenities. There is free valet except their approaches to banking in the 21st parking for the 1,500 employees, about century. For both, mobile banking and the in- 250 of whom were hired this year. The ternet are replacing brick-and-mortar parking lot that surrounds the building is branches. often filled, so employees are offered off- Clarkston, which has $178 million in assets, site parking with a free shuttle bus. introduced mobile banking two years ago. On the ground floor, there is a Star- The almost-immediate dropoff in branch vis- bucks, a deli and a fitness facility. There its by customers was shocking, said J. Grant is a concierge available for any employ- Smith, the bank’s president and CEO. Half of ee who might need a card picked up for his customers now do mo- a spouse’s birthday, or flowers bought bile banking. for a sick mom. On a recent midday “We analyzed our data tour, I got to catch up on the Tigers and saw such a decline in game as I walked past the various large, traffic, we closed two of flat-screen TVs scattered about on the our four branches a year walls. ago,” he said. That closing Fifty-eight percent of employees are included what had been millennials. Renee Harmon is definitely the bank’s headquarters not one of them. She started in the mort- building, a stately historic gage business 30 years ago and had her stone structure on Main own mortgage company in Wyandotte “It Street in Clarkston. It for 10 years. She's been at United Shore didn’t have a drive-thru, for five years. seems and small-town down- “When I first walked in, I thought, like we towns don’t get the foot ‘I’m older than all these kids. What have traffic they used to, so his- I got myself into?’ ” she said. “But I love have toric or not, it was closed. it here. I’m here for life, or until I retire “We go see prospects LARRY PEPLIN had ’s interac- to that boat in the Florida Keys.” now; we close deals at Comerica tive teller machine Ishbia, who learned about teamwork smart- their offices. Fewer people connects customers as an end-of-the-bench guy for Tom phones come to banks. The feed- with a live teller if Izzo at Michigan State, has several rules. back you get is there’s no forever, needed. No one is allowed to eat at his or her reason to go to a bank,” desk. They need to take a break from but it’s said Smith, who said his Troy-based Talmer the job. Get out of the office, go for a only bank has been aggressive Bank and Trust (le) run, go shopping. in teaching older custom- just opened this The other? What he calls the “firm been ers how to go mobile, 1,500-square-foot 40.” At some other mortgage outfits, since “We’ve migrated a lot of branch in Birmingham, work often means coming in early, customers over who replacing one of staying late, full days on Saturdays and 2007.” weren't using technology.” 6,000 square feet. maybe Sundays. The “firm 40” means Carrie Sumlin, Carrie Sumlin is the dig- work hard when you work. No tweeting Ally Bank ital consumer executive at or sharing on Facebook. But go home Utah-based Ally, a division after eight hours, have a life. of Detroit-based Ally Financial Inc. (NYSE: And on Thursday afternoons, every- ALLY), which means she oversees all online one is invited to a 15-minute dance and mobile banking. In 2013, Ally was hon- itself as Ally Bank with the premise of building eral regulators and were available for cents on party. Shake some booty, shake off the ored by the research firm Forrester for having a bank entirely without branches, a decision the dollar, bank officials never considered get- cobwebs, then get back to business. “I the most customer-friendly mobile banking Sumlin said has never been second-guessed. ting into the brick-and-mortar business. want people to love coming to work,” platform in banking. Even as banks around the country were being Ishbia said. In 2009, the former GMAC Bank rebranded shut down during the Great Recession by fed- SEE BANKS, PAGE 10 10 CRAIN’S DETROIT BUSINESS // MAY 30, 2016 SPECIAL REPORT: BANKING SPECIAL REPORT: BANKING

FROM PREVIOUS PAGE

branch is Fifth Third’s at the North- west Activity Center in Detroit. Cus- tomers can open accounts there, but it is a cashless branch, except for a full-service ATM. Another prototype branch is a so- called end-cap branch at the end of a retail center in Redford that opened two years ago. Columbus, Ohio-based Hunting- ton Bank has been at the forefront of putting small-footprint branches in retail settings. It has 85 branches in Meijer stores in Michigan and 91 in Giant Eagle stores in Ohio, ranging from a few hundred square feet to about 1,000, with bankers’ hours now including 11 a.m. to 4 p.m. on Sunday and staying open until 8 p.m. Monday through Friday. Like Girodat, David Provost, pres- COURTESY OF PNC BANK ident and CEO of Troy-based Talmer No more teller windows: Pittsburgh-based ’s new branch in downtown Birmingham features a cross-trained PNC Bank Bank and Trust, remembers what it “universal banker” who helps customers from a central kiosk. was like as a teller early in his career, when 15 teller stations would be in weekly banking mobile users and a Still a demand for brick manned on a Friday, with backup BANKS 60 percent drop in weekly branch us- and mortar tellers ready to relieve those who FROM PAGE 9 ers, so the numbers are going our had to go to the bathroom. way,” Sumlin said. “The mobile bank- “We’ll still have a demand for “Automatic deposit of paychecks “We never had any serious discus- ing shift and speed of adoption has brick and mortar. Some people was the start,” he said. “It began the sion about doing that,” she said. “We been amazing.” want to go in and interact with peo- process of ‘Why do you have to go were seeing such growth from what In March, Ally launched Apple Pay, ple,” said Dave Girodat, president of into a bank?’ ” we were doing, we didn't see any ad- in which customers with Ally debit the east Michigan region of Cincin- “Staffing has been dramatically af- vantage to going to a brick-and-mor- cards could pay merchants with their nati-based Fi h Third Bank. “But we fected. You always had to overstaff for tar environment.” Apple devices. won’t need a 4,000-square-foot the rush hour at lunch or at closing. In 2012, Ally surpassed the mil- Area bankers say the mobile revo- branch on every corner any more.” Now, we have more cross-trained lion-customer mark. This year it lution in banking has changed nearly Girodat said that when the bank employees. Fewer tellers and more passed $55 billion in deposits, and for everything about branch banking, began offering online banking in relationship officers,” he said. the fifth straight year it was named from either their disappearance or 2005, usage plateaued for a while at One of Talmer’s oldest branches, the nation’s best online bank by Mon- shrinking footprint, to the mix of em- 15 percent, slowly climbed to 25 the former Detroit Commerce Bank in ey magazine. ployees who work at them. percent, then a couple of years ago the Penobscot Building in down- “In the last five years in the U.S., “The adoption of mobile contin- began spiking. Sixty-three percent town Detroit, has 10,000 square feet. there has been a 333 percent increase ues to accelerate,” said Matt Elliott, of customers now use digital regu- Typical branches now have 2,000. the Michigan market president for larly, and 73 percent of new custom- Talmer just opened a 1,500-square- Bank of America. ers use it regularly. Mobile is up foot branch in Birmingham, replac- The result is a different look to the 21 percent year ing one of 6,000 square feet nearby. inside of a branch. Instead of walking over year to 39 In April, Pittsburgh-based PNC in and immediately seeing a line of percent of the Bank had a ribbon-cutting for its teller windows, there are now more customer base, prototype 21st century branch on small conference rooms and offices. and is at 59 per- Woodward Avenue in downtown Instead of seeing tellers, customers cent for new Birmingham. In two years, the bank see bankers who can handle a range customers. has seen non-branch banking activ- of duties, from starting a mortgage to He said banks ity go from 38 percent to 55 percent. to small-business lending. will carve out a Teller windows are gone, replaced “We want to use branches less as bigger presence by an employee known as a univer- a place to do a transaction than a in malls and David Girodat: sal banker who stands at a kiosk in place where you come in and speak shopping cen- Expect smaller the middle of the office and is cross- to someone face to face about what ters, with 1,000- branches in malls, trained to handle a wide range of you need,” Elliott said. or 1,500-square- shopping centers. customer needs. “We're turning That often includes, he said, foot branches coming into a bank from a transac- branches that have on-site financial that will have tional event into an interactional advisers from Merrill Lynch, one of smart ATMs and computer screens event,” said branch manager Jose- Bank of America’s business units. that allow you to access tellers or phine Obasuyi. There are no tellers behind bars at other service providers. There’s fresh Bank of America’s newest branch on Girodat said in his teller days in coffee brewing Adams Road in Rochester Hills. the early 1980s, on Fridays, a branch all day, and two Share your success with There’s someone to greet you at the might be staffed with a dozen tellers smart ATMs door and lead you to a meeting room. awaiting the onslaught. The tech where you can reprints | E-prints | plaques and more! There’s a smart ATM that will give you fear then was about the pneumatic deposit a check money in denominations you ask for. tubes being installed to make drive- or get money in On May 23, at a confer- thrus more efficient. denominations Reprints are a great way to leverage news coverage Google about your company to clients and prospects. ence in Mountain View, Calif., BofA One branch he worked at had a you choose. In announced it was rolling out its card- drive-thru unattached from the one alcove in a less ATM technology to 5,000 ATMs main building, but it didn't have Josephine corner are nationwide, including 40 in branches pneumatic tubes. Tellers accessed it Obasuyi: From self-service safe- in metro Detroit. Using what is being through an underground passage. transactions to ty-deposit boxes. billed as a digital wallet stored on “When pneumatic tubes came interactions. Since 2011, Contact Krista Bora at smartphones, customers can make along, it was, ‘My God, is technology web banking at [email protected], (212) 210-0750 withdrawals, transfer money or going to replace us?’ With tubes, one Comerica has increased from under for a unique opportunity to check balances without a bank card. teller could do more than one trans- 10 percent to more than 75 percent. co-brand your company Earlier this year, BofA rolled out action at once.” Comerica opened a prototype with a reputable news source. the ATM technology in Boston; Girodat said the prototypical new branch of what it calls an “experience Charlotte, N.C.; New York City; San center” in Auburn Hills in 2014. There Francisco; and Silicon Valley. SEE NEXT PAGE are now 32 nationally, and more are CRAIN’S DETROIT BUSINESS // MAY 30, 2016 11 SPECIAL REPORT: BANKING SPECIAL REPORT: BANKING

FROM PREVIOUS PAGE planned. They are much smaller than has 2,500 square feet, compared a typical Comerica branch. with 3,500-4,000 in a typical branch. Report: Alternative nancing growing fast branch is Fifth Third’s at the North- The first thing a customer sees is a Gone there, too, are the teller cages. west Activity Center in Detroit. Cus- service pod in the middle of the floor, One interesting result of convert- The alternative financing mar- Over 10 years, the median pri- tomers can open accounts there, where a banker greets those coming ing brick-and-mortar customers to ket, including crowdfunding and vate equity return was 11.8 percent but it is a cashless branch, except for in. More employees are being cross- mobile customers? “You get an in- peer-to-peer lending, is explod- on an annualized basis, compared a full-service ATM. trained, as customers coming in need crease in loyalty with customers who ing, according to a report by KPMG to 6.9 percent for the Russell 3000 Another prototype branch is a so- more advice and fewer deposit or are digitally savvy. Customers who set LLP, the Cambridge Centre for Al- and 6.8 percent for the S&P 500. called end-cap branch at the end of withdrawal transactions. up digitally score a lot higher on loyal- ternative Finance and the Polsky Over five years, the PE return a retail center in Redford that There is a digital teller on-site for ty,” Fehring said. Center at the Chicago Booth School was 14.4 percent, compared to opened two years ago. after-hours transactions, where the Sandro DiNello, president and of Business. 13.3 percent for the Russell 3000 Columbus, Ohio-based Hunting- customer is connected via comput- CEO at Troy-based Flagstar Bank, Alternative financing generat- and 13.3 percent for the S&P 500. ton Bank has been at the forefront of er screen to a live teller if needed. A has somewhat of a contrarian view ed more than $36 billion in 2015, putting small-footprint branches in program called Expert Connect al- of banks and their branches. up from just $11 billion in 2014, Lake Michigan CU listed retail settings. It has 85 branches in lows customers during normal “This year, I’ll be celebrating my according to the report. Meijer stores in Michigan and 91 in business hours at the branch to talk 40th year in banking. When I first got Peer-to-peer lending totaled 2nd in performance Giant Eagle stores in Ohio, ranging via Skype to off-site mortgage bank- in, people were talking about the more than $25 billion last year. The Grand Rapids-based Lake from a few hundred square feet to ers or wealth managers. death of branches, and here we are. U.S. businesses are learning Michigan Credit Union was ranked as about 1,000, with bankers’ hours Despite ATMs and mobile, branches how to tap into these alternative the second-best-performing credit now including 11 a.m. to 4 p.m. on Surprised by the are still here and continue to be a ma- funding sources. In 2013 and 2014, union in the U.S. in 2015, accord- numbers Sunday and staying open until 8 jor way people do their banking, and such funding totaled $10 million. ing to SNL Global Market Intelligence, p.m. Monday through Friday. When Pat Fehring, president and will do their banking for a long time,” It was $6.8 billion last year. based on a variety of metrics. Like Girodat, David Provost, pres- CEO at Farmington Hills-based Lev- he said. The other state credit unions in COURTESY OF PNC BANK ident and CEO of Troy-based Talmer el One Bank, launched his communi- And yet, Flagstar launched a new the top 50 were Genisys Credit No more teller windows: Pittsburgh-based ’s new branch in downtown Birmingham features a cross-trained Council: PE returns better PNC Bank Bank and Trust, remembers what it ty bank eight years ago, “I thought I'd digital platform last year and began Union of Auburn Hills, at No. 11; “universal banker” who helps customers from a central kiosk. was like as a teller early in his career, need more than 10 branches to have doing mobile deposits two years ago. than public markets and Consumers Credit Union of Ka- when 15 teller stations would be more than $1 billion in assets. But DiNello said Flagstar began According to the Washington, lamazoo, No. 24. Still a demand for brick manned on a Friday, with backup part of all the digitization that is going building a lot of branches in 1994, D.C.-based Private Equity Growth and mortar tellers ready to relieve those who on means you don’t need that many with teller windows in the back and Capital Council, private equity re- Level One Bank ranks had to go to the bathroom. branches. More than half of all our sit-down areas up front. turns continue to outperform “We’ll still have a demand for “Automatic deposit of paychecks consumer transactions are done dig- “We were ahead of our time for public markets on both short- 10th in performance brick and mortar. Some people was the start,” he said. “It began the itally.” 1994,” he said. and long-term horizons. Farmington Hills-based Level want to go in and interact with peo- process of ‘Why do you have to go He said as branches see fewer The design has worked well with For the year that ended Sept. One Bank ranked as the ple,” said Dave Girodat, president of into a bank?’ ” customers, “we see more complex customers doing more simple things 30, 2015, the median private equi- 10th-best-performing bank in the the east Michigan region of Cincin- “Staffing has been dramatically af- transactions in branches. We’re online and coming in for things like ty return was 6.4 percent, while U.S. with assets under $1 billion nati-based Fih Third Bank. “But we fected. You always had to overstaff for more consultatively oriented. We do loans. “Our sit-down branch model the return for the Russell 3000 In- for the year that ended Dec. 31, won’t need a 4,000-square-foot the rush hour at lunch or at closing. more small-business lending, and lets us be less transactional and more dex was a minus 0.5 percent and 2015, based on a variety of asset branch on every corner any more.” Now, we have more cross-trained more wealth management.” consultative,” he said. the return for the S&P 500 was a and revenue metrics, according to Girodat said that when the bank employees. Fewer tellers and more Level One recently opened its Tom Henderson: (313) 446-0337 minus 0.6 percent. SNL Global Market Intelligence. began offering online banking in relationship officers,” he said. first branch in downtown Detroit. It Twitter: @TomHenderson2 2005, usage plateaued for a while at One of Talmer’s oldest branches, 15 percent, slowly climbed to 25 the former Detroit Commerce Bank in percent, then a couple of years ago the Penobscot Building in down- began spiking. Sixty-three percent town Detroit, has 10,000 square feet. of customers now use digital regu- Typical branches now have 2,000. LENDING | TREASURY MANAGEMENT | BANKING | BUSINESS SERVICES larly, and 73 percent of new custom- Talmer just opened a 1,500-square- ers use it regularly. Mobile is up foot branch in Birmingham, replac- 21 percent year ing one of 6,000 square feet nearby. Voted “Best Bank” 2011 - 2015* over year to 39 In April, Pittsburgh-based PNC 4HJVTI+HPS` percent of the Bank had a ribbon-cutting for its customer base, prototype 21st century branch on and is at 59 per- Woodward Avenue in downtown cent for new Birmingham. In two years, the bank customers. has seen non-branch banking activ- He said banks ity go from 38 percent to 55 percent. will carve out a Teller windows are gone, replaced Best bank...5 years running. bigger presence by an employee known as a univer- in malls and David Girodat: sal banker who stands at a kiosk in shopping cen- Expect smaller the middle of the office and is cross- ters, with 1,000- branches in malls, trained to handle a wide range of Best-in-class products. or 1,500-square- shopping centers. customer needs. “We're turning foot branches coming into a bank from a transac- that will have tional event into an interactional smart ATMs and computer screens event,” said branch manager Jose- Best of all… that allow you to access tellers or phine Obasuyi. other service providers. There’s fresh Girodat said in his teller days in coffee brewing the early 1980s, on Fridays, a branch all day, and two local decision making. might be staffed with a dozen tellers smart ATMs awaiting the onslaught. The tech where you can fear then was about the pneumatic deposit a check tubes being installed to make drive- or get money in thrus more efficient. denominations One branch he worked at had a you choose. In As a Michigan-based bank, we’ve been getting to work helping businesses since 1917. By providing area expertise and loan drive-thru unattached from the one alcove in a decisions that come out of our local office and not out-of-state, our services are enhanced to optimize cash flow and finance main building, but it didn't have Josephine corner are growth to help businesses move forward, even faster. And with best-in-class banking resources like Positive Pay, Business pneumatic tubes. Tellers accessed it Obasuyi: From self-service safe- Express Deposit and SBA loans, you’re always banking big…even when you’re banking local. through an underground passage. transactions to ty-deposit boxes. interactions. “When pneumatic tubes came Since 2011, Learn more about how big doesn’t always mean best. along, it was, ‘My God, is technology web banking at Give us a call today. going to replace us?’ With tubes, one Comerica has increased from under www.thefsb.com/business | 866-372-1275 teller could do more than one trans- 10 percent to more than 75 percent. action at once.” Comerica opened a prototype *Voted “Best Bank” by 4HJVTI+HPS` Girodat said the prototypical new branch of what it calls an “experience (2011: 3rd; 2012: 1st; 2013: 1st; 2014: 1st; 2015: 2nd) center” in Auburn Hills in 2014. There SEE NEXT PAGE are now 32 nationally, and more are 12 CRAIN’S DETROIT BUSINESS // MAY 30, 2016 Turmoil in Brazil stalls student exchange By Chad Halcom “It’s a shame The Senate vote automatically [email protected] put opposition party Vice President A recent impeachment move since we actually Michel Temer in power in Brazil, against Brazilian President Dilma had some great pending the outcome of Rousseff's Rousseff likely cements a $5 mil- trial. lion-plus revenue loss this fall for students come The BSMP program aims to give Michigan universities, who have because of the overseas training to more than hosted more than 1,000 engineer- 100,000 Brazilian science and engi- ing and science students, including program. We’re neering students to help the coun- more than 140 this past year, under saddened to see try’s college graduates become a program Rousseff launched. globally competitive. Students typi- Local university officials said the this happen.” cally study two years in Brazil, one Brazil Scientific Mobility Program, Darnishia Slade, year abroad as an upper-class un- which has placed about 25,000 stu- Michigan Technological University dergraduate plus a summer re- dents in the U.S. since 2011 for up search project or an internship with to a year of undergraduate study a local employer, before a final year funded by the Brazilian govern- the University of Michigan, Michigan of study back home. ment, is on hold. The country State University, Lawrence Technologi- Internship sponsors with the stopped sending applications cal University and the University of De- program have included Ford Motor around the time legislators first troit Mercy, according to IIE. Co., Delphi Corp., Daifuku Webb Hold- convened a panel to explore pro- “Every year they have been an- ing Co., Kelly Services Inc. and P­zer ceedings against Rousseff late last nouncing a group of students who Inc. year, some said. were coming to the U.S., and we are Western Michigan, the sec- The Senate in Brazil voted 55-22 one of the destination schools and ond-largest Michigan host school in mid-May to put Rousseff on trial we start regularly getting applica- to date, according to IIE, peaked on accusations she padded a defi- tions,” said Ahmad Ezzeddine, as- around 54 students in fall 2013 but cit by borrowing from banks to sociate vice president of education- had declined to 31 students who make Brazil’s budget look healthier al outreach and international wrapped their studies in April, said before her 2014 re-election. The programs at Cheryl Roland, executive director of move automatically suspends her Wayne State, university relations at WMU. from office pending those pro- the largest “The type of program they were ceedings. BSMP program in is sometimes called a sandwich Michigan was a top-five desti- recipient in exchange program ... (and) classes nation state for BSMP students for Michigan since they took here were at the third- several years, and Wayne State Uni- its inception. year level of undergraduate educa- versity was its third-largest host in- “(But) in light of tion,” Roland said in an email. stitution nationwide, according to political transi- But at full-time, out-of-state tui- reports from the Institute of Interna- tions within the tion rates of more than $11,000 per tional Education, a nonprofit that country, the Ahmad semester at Wayne State and administered the program in the program is on Ezzeddine: Taking $13,000 at WMU, the program likely U.S. hold, and we’re a wait-and-see generated nearly $1 million of an- Other host universities have in- waiting to see approach. nual revenue at Western last year cluded Western Michigan University, what occurs.” and double that at Wayne, to say Other university administrators nothing of the other schools. said they stopped receiving appli- Lawrence Tech and Michigan Tech- cations either toward the end of nological University both reported re- 2015 or at the beginning of this year, ceiving 13 students apiece for the and were told that no new cohorts program last fall, but no new stu- would be arriving for the fall. IIE did dents since then. not return phone calls seeking As with the other schools, they comment. expect the last of the exchange stu- Wayne State was hosting 22 stu- dents to complete summer intern- dents on campus in fall 2013, ac- ships, research projects or other cording to data from the institute in studies, but all had been told no New York, but that number swelled more are coming in the fall, with lit- Complimentary to more than 200 the following year tle explanation. as the BSMP program ballooned in “It’s a shame since we actually Webinar size. had some great students come be- Presented by That made Brazil the No. 4 home cause of the program. We’re sad- country in 2014-15 for the school’s dened to see this happen,” said Comerica Business 2,000-plus international students Darnishia Slade, director of inter- Owner Advisory Services from 70 nations. But WSU was still a national programs and services at leading host university in Michigan Michigan Tech. “There were rumors even when the program scaled back starting early this year, but they Experience a Higher Level last year to 54 students, according didn’t go into much detail.” of Business and to IIE and Ezzeddine. Chris McKenzie, assistant direc- Wealth Planning Most universities reported a tor in the Office of Study Abroad at smaller cohort of BSMP students MSU, said the school was hosting that arrived last fall for the aca- 36 BSMP students last fall, of which demic year ending in April or early fewer than half a dozen remain for May. A handful of those students the summer. But most said the are continuing their studies Rousseff trial means they expect no through the summer, but Wayne is decision soon from Brazil on re- Incorporating not currently expecting new ap- suming the program. Tuesday, June 21, 2016 plications to attend this coming Rick Fitzgerald, director of public Charitable Giving Into 12 p.m. – 1 p.m. ET academic year. affairs at UM, said the school’s Col- “Mexico has also attempted its lege of Engineering does not partic- Your Succession Plan own version of the program, and ipate in the BSMP program. But IIE What every business owner and wealthy individual we have seen some students at- reports indicate nearly 100 had at- needs to know about charitable giving. To Register: tending for shorter periods fo- tended the institution as of late CrainsDetroit.com/webinars cused on more limited studies,” 2014, mostly at the University of Mich- Powered by: Ezzeddine said. “But nothing so igan-Dearborn. far has been on the scale of this Chad Halcom: (313) 446-6796 Comerica Bank. Member FDIC. (Brazil’s) program.” Twitter: @ChadHalcom CRAIN’S DETROIT BUSINESS // MAY 30, 2016 13 ACQUISITIONS & Gale Group Inc., Farmington Hills, CALENDAR MERGERS part of Cengage Learning Inc., and a publisher of research and Oxford Cos., Ann Arbor, a commercial reference resources, launched THURSDAY real estate portfolio manager, has Gale Researcher, a research JUNE 2 acquired Concord Center. The DEALS & platform and curriculum tool Scaling Up Your Business Through building consists of 92,000 square designed to help students easily Mergers and Acquisitions. 9 a.m.- feet and expands Oxford’s connect to citable content noon. National Association of commercial portfolio to more than aligned to introductory college Women Business Owners. A 2.2 million total square feet. courses, and American Fiction, strategic merger or acquisition can Website: oxfordcompanies.com. DETAILS 1774-1920, a new digital archive. often be a faster, less expensive way Practice Master software. Detroit, offering innovative Website: gale.cengage.com. to grow than through the Soaring Pine Capital, Birmingham, a Website: qualitech.net. industrial cleaning products traditional method of marketing Simon Group Holdings company, said designed for niche industrial and Acromag Inc., Wixom, a designer and sales. Presenters from UHY tell it purchased Technology Solutions Minacs Ltd., Farmington Hills, a automotive markets. Website: and manufacturer of industrial about the advantages, how to go Inc., Chicago, a fulfillment and global outsourcing business detroitgarageworks.com. electronics, measurement and about it, and the risks. UHY, construction services company, solutions partner, will work with control products, announced Farmington Hills. Free for by Soaring Pine Capital Growth Nippon Systemware Co. Ltd., Tokyo, NEW PRODUCTS a new series of general purpose members; $10 nonmembers. Fund I. Website: soaringpine.com. an IT provider, to offer customer I/O modules for embedded Contact: nawbogdc.org. experience management for Henkel Corp., Madison Heights, a computing applications. CONTRACTS connected devices and the IoT subsidiary of Germany-based Website: acromag.com. UPCOMING EVENTS market. Websites: minacs.com, Henkel AG & Co., announced that PublicCity PR LLC, Southfield, a nsw.co.jp. Henkel Adhesive Technologies Freudenberg-NOK Sealing Driving Innovation and Engagement: public relations agency, has been introduced two interior adhesive Technologies, Plymouth, developed The Role of the University Research retained to manage and execute zipLogix LLC, Fraser, a real estate technologies for passenger a two-part sealing system, Corridor in the Motor City. 11:30 all media relations activities and technology company, announced vehicles: Aquence PL 5101, consisting of its radial shaft seal, a.m.-1:30 p.m. June 7. 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Email $55 guests of members; $75 Qualitech, Bingham Farms, a tracking tool. Websites: ergonomics consulting firm, [email protected]. Use nonmembers. Phone: (313) technology integrator and software zipform.com, curbcall.com. announced a new e-book, Three any Deals & Details item as a model 963-8547; email: info@econclub. reseller, was selected by Seabolt Law Ways to Establish a Strong for your release, and look for the org. Firm, Livonia, to provide a new Foundation for Your Ergonomics EXPANSIONS appropriate category. Without office system, including an Intel Process, the second in a series complete information, your item will The Multi-generational Workforce. Xeon server, workstations, office Martin Midwest Group LLC, about the five steps required to not run. Photos are welcome, but 11:30 a.m.-1 p.m. June 7. cabling, hosted phone service, Northville, a cleaning chemical build and sustain a successful we cannot guarantee they will be Automation Alley. Jason Morga, conference room with necessary developer, opened its newest ergonomics process. used. vice president of Kelly Services hardware, installation and Tab3 subsidiary, Detroit Garage Works, Website: humantech.com. Americas marketing group, talks about the global phenomenon of a multi-generational workforce where four generations are employed in one workplace. Automation Alley, Troy. $20 members; $40 nonmembers. Phone: (800) 427-5100; email: [email protected]. Providing valuable solutions Brand Storytelling. 11:30 a.m.-1:30 p.m. June 8. Adcraft Detroit. Featuring Bridget Russo, chief marketing officer, Shinola. College We’re ready to deliver for Creative Studies, Detroit. $40 members; $50 nonmembers; $25 junior/student members. Website: Rehmann’s dedicated professionals leverage their technical knowledge and industry adcraftdetroit.com/events. experience to customize the ideal approach for your financial services organization. 2016 Detroit CIO Executive We offer assurance, tax, regulatory compliance, information technology and a variety of Leadership Summit. 7 a.m.-5:30 p.m. June 9. HMGStrategy. A panel of IT consulting services. leaders will explore, among other things, the mindset needed by Our team stands ready to assist you with meeting today’s challenges, including CECL CIOs to react to future trends, implementation, cyber security and vendor risk management. emerging technologies CIOs should know about, and the future role of the digital technology Contact us to learn how our team can help your organization thrive in the marketplace. leader. Free. Westin Book Cadillac, Detroit. Phone: (203) 221-2702; email: [email protected].

Calendar guidelines. Visit Heidi Cieslik, CPA Magdalena Marriott, CPA, CISA crainsdetroit.com and click “Events” near the top of the home Principal | Financial Services Practice Principal | Advisory Services page. Then, click “Submit Your [email protected] | 248.458.7914 [email protected] | 248.463.4606 Events” from the drop-down menu that will appear. Fill out the submission form, then click “Submit event” at the bottom of the page. rehmann.com More Calendar items can be found at crainsdetroit.com/events. 14 CRAIN’S DETROIT BUSINESS // MAY 30, 2016 ADVERTISEMENT SECTION

INSURANCE ADVERTISING & MARKETING

Mike Jurecki Chief Executive O€ cer FordDirect Mike Jurecki has been appointed ADVERTISING & CEO at FordDirect where his strategic MARKETING vision will drive continued innovation and expanded o‘ erings, while working to solidify the company’s position as Tony Malinowski & Salvatore Giammarusti III the digital marketing and advertising solutions provider of choice for Ford Senior Vice President, Resident Sales Director / Senior Vice President, and Lincoln Dealers. Jurecki joins Aon Risk Solutions, FordDirect from RouteOne, where he In this role, Malinowski will help clients grow by developing and implementing innovative led the formation of the RouteOne joint risk management solutions that positively impact their bottom line. Malinowski has venture and served as CEO for the last extensive experience in employee bene ts, most recently serving as regional sales 14 years. Prior to RouteOne, Jurecki manager of group bene ts for Cigna. He earned his Bachelor of Science degree from spent more than 20 years with Ford Grand Valley State University. Credit.

Jamie McCarthy Giammarusti is responsible for delivering strategic risk management and Health & Chief Creative O€ cer Bene ts solutions that drive measurable results for clients. Giammarusti has more than AUTOMOTIVE 25 years of industry experience within the employee bene ts sector, previously serving J.R. Thompson as President and owner of SJG Financial Group. He has also served as an adviser on Jamie McCarthy has been appointed multiple strategic business committee’s to the health care insurance industry and to Susan Kampe Chief Creative O‰ cer, Innovation at J.R. charitable organizations, including Vista Maria and Gleaners Corporate O€ cer Thompson. He’s in charge of driving the innovation process by focusing on the Cooper Standard key principles behind innovation Susan Kampe also including leadership, creating networks serves as chief and leveraging the right incentives. A information o‰ cer creative leader with over 15 years of for Cooper Standard, responsible for experience, McCarthy will identify new leading the transformation of the strategies and business opportunities. Company’s information technology (IT) JRT is a creative marketing services  rm function consistent with Cooper specializing in communications, digital Standard’s Pro table Growth Strategy. and technology services. A recognized leader in the IT  eld, she is the recipient of numerous industry honors and acknowledgements. Kampe HEALTH CARE James DeLeeuw & Scott Davis earned a Master of Business Senior Vice President, Regional Marine Practice Leader / Administration and Bachelor of Science degree in business administration from Senior Vice President, Marine Practice Bowling Green State University. Aon Risk Solutions Christine As Regional Marine Practice leader, DeLeeuw is responsible for the development and implementation of risk solutions servicing the Marine Cargo and Logistics sector. Prior Krathwohl to joining Aon, DeLeeuw, who has nearly 30 years of industry experience, served as a Corporate O€ cer regional marine practice leader with a global brokerage in their global marine practice. Cooper Standard He earned his Bachelor of Arts degree in Business from Wayne State University. Christine Krathwohl also serves as vice As senior vice president, Davis is responsible for creating innovative Marine Cargo and president global supply chain. As a Marc Corriveau Logistics solutions that will drive value for clients. Prior to joining Aon, Davis was a vice seasoned supply chain professional, president in the global marine practice of a large brokerage for nearly ten years. He Vice President of Krathwohl leads the Company-wide earned a Bachelor of Science degree in Finance from Ball State University. strategy for purchasing, procurement, Government A„ airs logistics, vendor management and Henry Ford Health System supplier quality using her more than 20 Brian Vestergaard Joseph Radtka Corriveau will lead all government a‘ airs years of experience in logistics, supply Vice President, Sales Vice President, and public policy work for Henry Ford chain and purchasing. Krathwohl and Marketing Finance Health System. Most recently, he was earned an Executive Master of Business Director of Michigan Advocacy for Trinity LifeSecure Insurance LifeSecure Insurance Administration degree and a bachelor’s Health System. Additionally, he was a Company Company degree in materials and logistics government relations attorney and An expansion of his Joseph Radtka brings management from Michigan State lobbyist for the Lansing-based Kelley- previous position as vice president of more than 15 years of experience in University. Cawthorne law  rm and served in Product and Marketing, Brian Vestergaard  nancial accounting and leadership roles Michigan’s House of Representatives now leads LifeSecure’s Sales, Product, and to LifeSecure. As the lead executive for all from 2006-2010, as Chairman of both Marketing areas. His responsibilities  nancial disciplines within LifeSecure, he the Health Policy Committee and Ethics include directing LifeSecure’s sales will provide the  nancial oversight and and Elections Committee. Marc is a strategies in order to continue the direction necessary to keep LifeSecure on For more information native of metro Detroit. company’s national growth and expansion. its path of continued growth. Joe received Vestergaard joined LifeSecure when it was his master’s in business administration or questions regarding founded in 2005 and has been from Wayne State University and a advertising in this section, instrumental in the design of its trademark bachelor’s degree in accounting from SEARCH SMARTER candidate’s skills and interests to make the simple, yet œ exible products, while also Eastern Michigan University. please call Lynn Calcaterra at overseeing brand development and Data Driven Matching employers marketing. (313) 446-6086 or email: [email protected]

CrainsDetroit.com/JobConnect CRAIN’S DETROIT BUSINESS // MAY 30, 2016 15 May 30, 2016 CRAIN’S DETROIT BUSINESS Page 15 ishing school” for players en route vised that to around $3 million. and lawn seating. field of dreams. STADIUM to the affiliated minor leagues and, Among the companies with suite The Utica stadium will have Wi-Fi, “The component that is mi- FROM PAGE 3 one day, “the show” — what aspir- or other corporate sponsorship and green aspects such as LED field nor-league baseball sounds to me to ing ballplayers call the majors. deals at the ballpark are Budweiser, lighting, separate trash and recycling be very difficult. Very few indepen- Rochester-based General Sports & Appleby launched General Sports General Motors Co., Ford Motor Co., receptacles and waterless urinals. dent teams are consistently profit- Entertainment. & Entertainment in 1998. The com- AAA, Scotts Miracle-Gro Co., Pepsi, The stadium sits on 7.8 acres east able. The market has to be exactly “We would want to own and con- pany does about $30 million in rev- and Birmingham-based Belfor USA. of Moscone Drive and north of Au- right,” Andrew Zimbalist, a sports trol all the stadiums and teams, so enue annually, and specializes in A year ago, Troy-based mortgage burn Road. Appleby said he private- economist at Smith College and au- there’s that tremendous level of pro- consulting, team management, lender United Shore Financial Ser- ly financed the stadium and league thor of several sports finance books, fessional and quality in everything marketing, sponsorships, financing, vices LLC signed a 10-year deal to through General Sports. previously told Crain’s. we do,” he said. and education, and had a synthetic put its name on Appleby’s baseball A second phase, to be built at a There are other hurdles, he said. Appleby, 53, is relentless about turf division. Before starting his league, and Champaign, Ill.-based date yet to be determined, is a retail One is that independent teams quality control and customer service company, Appleby had risen to se- Jimmy John’s Franchise LLC and its and condo development just across must pay the salaries and equip- with his new league and stadium. He nior vice president at Palace Sports franchisees jointly signed a 10-year the Clinton River on 1.4 acres. ment costs that aligned mi- said he’s using his 30 years of sports and Entertainment LLC, the Detroit contract for the stadium name. Utica’s DDA, which owns the nor-league teams have covered by management and marketing experi- Pistons’ parent company in Auburn Financial terms were not disclosed. 15.7-acre project site, is leasing the their MLB parent clubs. ence to bring every best practice to Hills, where he worked from 1986 Appleby said he negotiated al- land to General Sports for $1 annu- How does Appleby define a suc- Jimmy Johns Field — and avoid every until launching General Sports. most all of the deals himself, and he ally under a 30-year lease with two cessful first season? mistake. Appleby cites former longtime relied on 30 years of relationships to 10-year options. General Sports “It will be to sell out at least half Owning all of the teams also is a PS&E President Tom Wilson as one of get them done. “Every one of those owns the stadium. the games, but we’re hoping to sell safeguard against failure, he said. the major influences on his career. decisions (to do a deal with the The stadium’s general contractor out most every game,” he said. “Almost always, a league is only as “Working for Wilson was a figura- league) was made either by the is Rochester-based Frank Rewold & Additionally, the baseball itself strong as its worst owner,” he said. tive Ph.D. in sports management at global chief marketing officer or the Son Inc., and Kansas City-based Pen- has to be good, and the players have “Why do we want to buy teams in age 23,” Appleby said. president of that company,” he said. dulum is the architect. Pendulum’s to develop into professionals. other markets when I can create just Wilson, who now is president of About 500 season tickets have local current Detroit work is as de- “There are a plethora of excellent as good here, and create the mascots, Olympia Entertainment in Detroit, been sold, he said. Season ticket signer of the proposed $15.5 million baseball players out there. (Critics) colors, nicknames and uniforms. We praised his former employee and plans range from $475 to $3,000, Detroit Police Athletic League head- think it’s ‘Bad News Bears.’ It’s not,” he will only go into markets that make said he intends to visit the new sta- and single-game tickets are $6 for quarters and training facility at the said. sense, and not be beholden to an dium within a couple of weeks. the lawn to $40 for front-row seats. old Tiger Stadium site. Bill Shea: (313) 446-1626 owner that may be undercapitalized, “He was always studying every “We’re selling a lot right now There are skeptics of Appleby’s Twitter: @Bill_Shea19 who may not be a good marketer. aspect of the business. He always since the ballpark is almost opera- Our league scales extremely well to had higher aspirations. ..., ” Wilson tional,” Appleby said. other towns across the Midwest.” said. “If anybody can make this Minor-league baseball, especially Appleby’s future stadiums would work, it’s Andy.” at the lower levels, traditionally be home to two teams each. Jimmy With General Sports, Appleby has thrives on being an entertainment REAL MARKET Johns Field has three, and they’ll play owned the Fort Wayne baseball product rather than on its players — their 75-game May-September team (an affiliate of the San Diego Pa- most of whom will never reach the ESTATE PLACE schedules round-robin style, mainly dres he bought for $4.75 million in majors. Appleby knows that, and on weeknights and weekends. He May 1999 and sold for an undis- plans to make USPBL games fun be- AUCTIONS ADVERTISING/MARKETING termed summer weekends “the Holy closed sum in 2006) and the sec- yond balls and bats. There will be fire- Grail of scheduling” because those ond-division British soccer club works after Friday night games, and GOVERNMENT AUCTION are the most attractive times to get Derby County. He also unsuccessful- theme nights such as “Star Wars.” families to the ballpark. ly tried to buy the National Hockey “It’s as much about the extrava- BESTBusiness Writing “Every new ballpark will have two League’s St. Louis Blues. ganza,” Appleby said. Carol Dunitz, Ph.D. home teams. That’s the trick behind Appleby and his ownership group Games will be played at 7:25 p.m. 734.237.6614 allowing you to play every Saturday sold Derby last year for an undis- Wednesdays, Thursdays and Satur- [email protected] night in the summer,” Appleby said, closed sum, but one he confirmed is days; 7:45 p.m. Fridays; and 2 p.m. INVESTMENT OPPORTUNITIES as opposed to starting in April. more than the $100 million they on Sundays. 36.35 - ACRE FORMER MILITARY SITE INVESTORS The three-team league’s inaugu- paid for it in 2008. The past week has been a scram- NEEDED ral game is the Birmingham-Bloom- Owning Derby was a learning ex- ble to get the stadium done. “It’s re- NEWPORT & TELEGRAPH RD. Looking for funding of 600K for a Christian eld Beavers vs. Utica Unicorns at 2 perience that Appleby said he’s us- ally just finishing the details,” Ap- NEWPORT, MICHIGAN movie to be fi lmed in Michigan. This will be our second movie in this genre. p.m. Monday. The third team is the ing to ensure the USPBL is a success. pleby said. The locker rooms were U.S. GENERAL SERVICES Eastside Diamond Hoppers. After owning teams in both baseball getting their black walnut lockers ADMINISTRATION While the stadium idea isn’t new, and soccer, he opted to invest in installed, and the suites were getting û û û 1st movie "The Messengers' Box" is it was just a couple of years ago Ap- baseball as his legacy project. furniture and carpet. distributed through Amazon, Christian Family RICH BALSANO stores nation wide in the U.S., Christian pleby decided to also create his own “Soccer is great, but the cost Part of the stadium’s $3 million Cinema, Heritage Films & PureFlix will 312-353-0302 be handling the internet streaming. league. structure in minor league baseball is cost escalation was because of the realestatesales.gov Piercing Purpose Productions “When you do own your own better, and it’s still more of America’s ground underneath it, the former Please call Brian at 248-860-4809 league, you have a much greater level pastime,” he said. “It’s still a great town dump. The trash turned out to www.piercingpurpose.com of control and professionalism,” he model. To me, there is nothing like be just under the surface. “We’re on said. “We’ve got to service the heck baseball, baseball under the stars.” 20 feet of trash,” Appleby said. out of customers — suite holders, di- Appleby, a former Crain’s 40 under The turf comes from Kogelmann’s JOB INVESTMENT OPPORTUNITY amond table holders, our sponsors. 40 honoree, usually is the front man Creek-Side Sod Farm in Macomb Utica - VanDyke Area Everyone that comes here will want of an investment group, the same Township, he said. FRONT 3,700 sq. ft. Buidling to come back again and again.” strategy he’s using with the Utica Appleby said the biggest challenge 3 Stores, Separate Meter The financial success of the stadi- baseball stadium. He is the stadium was a lack of state funding for the site MISCELLANEOUS um is one business metric for Ap- and league’s majority owner, and said cleanup. State law forbids such fund- Call 248-909-6429 pleby. The other is the actual base- there is a small group of minority ing for stadium sites, he said. SURVEY ball, and his long-game strategy owners from “all over the world,” but “We could have put a bump shop MISCELLANEOUS there is to get players into Major he declined to identify them or say if on their property on this site and got ANALYZE League Baseball. any of them also were part of the more than what we got,” he said. NEED WAREHOUSING? “All I need is my first major group that owned Derby County. Because the land is a capped Plymouth & Livonia Area MATCH leaguer,” he said. “It’ll happen. We’re The local business community brownfield site, Utica’s Downtown • Cross-Dock Services • Trucking Services trying to make every kid better, to has been impressed enough with Development Authority provided • Diverse Supplier • Reasonable Rates the majors. The minute I get a major Appleby’s baseball effort to write $400,000 in federal brownfield rede- Call 810-701-0833 leaguer, we will have 100 percent some big checks. velopment funds for cleanup. validation for this league.” Of the stadium’s 24 suites, all but Other spending upgrades include TRAINING The USPBL, whose teams will have three have been leased under five- an elaborate scoreboard, upgrades Cyber Risk = Business Risk up to 25 players each, is for players year contracts that range in annual to the VIP club, and full netting to CrainsDetroit.com/JobConnect | Your Data = Your Assets IT Security Awareness is a MUST ages 18-25 who have not yet made it cost from $35,000 to $55,000, he said. protect fans from foul balls. Solution: Train Your Staff into Major League Baseball’s minor And all 18 of the half-moon-shaped “We invested in the very best net- Call CNC @ 734-462-2090 leagues. Rosters were put together af- “On Field Diamond Tables” that each ting that MLB teams use,” Appleby Call or email today for information ComputerNetworkingCenter.com ter tryouts in recent weeks, and Ap- seat four have been leased under five- said. “We pretty much have the best of on a custom advertising plan! QuickBooks pleby said players are both local and year contracts for $20,000 annually. everything here. It’s very much a bou- Sage 50  Sage 100 from elsewhere in the country. Appleby previously thought his tique ballpark. I wouldn’t trade this Plus Distribution and Manufacturing He said he’s spending $1 million stadium and league would do about ballpark for any ballpark in America.” [email protected] Sales Training Support this year on baseball operations $1 million in corporate sponsorship The stadium has 1,900 seats with 313.446.6068 alone, and termed his league a “fin- revenue this year, but he’s since re- capacity for 4,000 with premium JCS (800) 475-1047 16 CRAIN’S DETROIT BUSINESS // MAY 30, 2016 Amtrak. RTA “We want to have enough band- Detroit Wayne Mental Health Authority wins FROM PAGE 1 width and frequency that people can use it to get to their jobs,” Ford said. year hosting meetings with the The millage also is expected to public and business, political and fund new traditional Detroit Depart- temporary restraining order over Gateway Health civic leaders to get opinions about ment of Transportation and Subur- transit needs and to educate the ban Mobility Authority for Regional By Jay Greene mental and physical health prob- Gateway paid vendors nearly public about mass transit plans. Transportation bus service, a uni- [email protected] lems. Gateway’s contract with De- $1.5 million without a contract, and The RTA tax would be the local versal fare card for the region, and The Detroit Wayne Mental Health troit Wayne is to administrate a pro- without validating whether the ser- money required to access matching an express service across the region Authority last week was granted a vider network. vices were properly completed, said federal funding to build and oper- from the airport, Ford said. temporary restraining order against Problems with the treatment the Alan Young audit. ate bus rapid transit and train sys- A regional mass transit system Gateway Community Health by the center were documented in Febru- The UHY audit concluded Gate- tems. The RTA would have to apply will boost economic development Third Judicial Circuit Court in Detroit ary by a WDIV-Channel 4 news re- way had negative assets of $7.5 mil- for such funding from the federal — advocates say every $1 invested that protects against improper ex- port. Clients of the clinic were seen lion in 2015 and “auditors effectively government, and the process is vig- in transit systems generates $4 in penditures of state Medicaid funds going to and from counseling ses- concluded that (Gateway) was in- orously competitive and often new development — and is aimed and preserves documents, accord- sions at Gateway to purchase alco- solvent.” lengthy. at connecting residents with jobs, ing to Circuit Judge Brian Sullivan. hol at a liquor store next to the clinic According to Detroit Wayne’s Under a bus rapid transit system, school and to access medical ser- Gateway Community Health is a and openly drinking on the streets. complaint, Khoury informed the buses operate much like a rail line, vices, facilitating commerce and Detroit-based mental health pro- After the state of Michigan last authority it would need a “cash infu- with specialized train-like wheeled improving mobility for the disabled vider network that has been under year mandated mental health pro- sion from an outside source, pre- vehicles with dedicated lanes, priori- and elderly, supporters say. contract with Detroit Wayne the vider networks to divest themselves sumably (from Detroit Wayne) to ty traffic signaling and higher speeds. The RTA’s intent is to link the new past 10 years to offer mental health, of provider ownership, Gateway re- avoid insolvency.” Audits estimated Bus rapid transit lines typically system into the region’s other trans- substance abuse and developmen- portedly complied. The complaint at least $12.2 million in provider-re- cost $15 million to $25 million per portation agencies, such as the bus tal disability services through pro- does not state who now owns the lated liabilities and only $5.6 million mile, meaning the Woodward proj- lines, Detroit People Mover, Ann Ar- viders to about 50,000 people. clinic, and Gateway officials did not in cash and accounts receivable. ect could range from $405 million bor Area Transportation Authority and In a 10-0 decision May 18 after a respond to interview requests from The Detroit Wayne board also au- to $675 million, according to a 2014 M-1 Rail streetcar system now under closed executive session, the Detroit Crain’s. thorized the release of the Alan estimate from Carmine Palombo, construction on Woodward Avenue. Wayne board voted to terminate However, Detroit Wayne alleges Young audit on Gateway to Michi- deputy executive director of the M-1 Rail, which is handling the Gateway’s three-year, $120 million in its 121-page complaint that Gate- gan Attorney General Bill Schuette, Southeast Michigan Council of Gov- public and private financing for contract, effective June 17, after way “had improperly transferred the Michigan Department of Health ernments regional planning agency. what is now called the QLine street- three audits found potential finan- approximately $20 million between and Human Services and the U.S. De- Ford said the bus rapid transit car line that goes into service next cial problems with Gateway, accord- it and the provider it was in the pro- partment of Health and Human Ser- system would cost about $17 mil- year, will eventually fall under the ing to documents obtained by cess of divesting.” vices’ office of inspector general. lion annually to operate. RTA’s operational control within 10 Crain’s. Sources told Crain’s that De- Audits performed on Gateway’s Sources said that Schuette and The commuter rail line, which years, organizers have said. troit Wayne’s decision to terminate accounting and business practices U.S. Attorney Barbara McQuade in has been on the books for many The RTA was created in 2012, after and file a lawsuit against Gateway came from Detroit-based UHY Advi- Detroit launched an investigation years, initially would have eight 40 years of failed attempts to do so, stemmed from long-term problems sors LLC and Troy-based Rehmann into Gateway several months ago. round trips per day between De- with the intent of creating a regional with the network’s operations and Robson. Detroit Wayne hired De- Meanwhile, Detroit Wayne plans to troit and Ann Arbor, with other like- transportation plan and network for its ability to pay mental health pro- troit-based Alan C. Young & Associ- transition services formerly provided ly stops in Dearborn, at Detroit Met- the metro area. It is responsible for viders for services rendered. ates P.C. to conduct its own audit. by Gateway to CareLink Network Inc., ropolitan Airport and in Ypsilanti. coordinating mass transit operations For example, Gateway in 2013 “Those reports have raised con- another Detroit-based manager of a More trips could be added, Ford and funding across the four counties, opened a clinic, Gateway Integrated cerns about, among other things, provider network with which the said. including cooperation among agen- HealthCare, which some believe was (Gateway’s) long-term ability to pay health authority contracts. The RTA would buy the locomo- cies such as DDOT and SMART. in violation of the contract with De- providers,” the Detroit Wayne board Last week, Khoury said in a state- tives and passenger cars for the Bill Shea: (313) 446-1626 troit Wayne because it provides di- said in a statement last week signed ment to its providers that Detroit line, and use tracks now used by Twitter: @Bill_Shea19 rect clinical services to patients with by Detroit Wayne CEO Thomas Wat- Wayne gave no warning to Gateway kins and Herbert Smitherman, about the impending action and M.D., board chairman. characterized the audits as routine The Alan Young audit also deter- with no willful illegality or fraud iden- mined that Gateway CEO Radwan tified. Khoury, M.D., received $70,000 in “A fair-minded person reading the bonus payments in 2014 and an ad- reports would conclude that there is ditional $41,000 in expense reim- no disclosure or negative information bursements. Other Gateway execu- that would justify a sudden contract tives also received bonus payments termination,” Khoury said. for unspecified work. The former Khoury did not respond to an in- COO received a $62,000 severance terview request from Crain’s. package only to return to his job Jay Greene: (313) 446-0325 several months later. Twitter: @jaybgreene CRAIN’S DETROIT BUSINESS // MAY 30, 2016 17 GRAND PRIX miums dropped to $96 from $101 emergency department visit and time-consuming office visit. Em- FROM PAGE 3 FROMSURVEY PAGE 1 and average family premiums de- instead use their smartphone to ployee copayment is $10 with NS’ clined to $332 from $349. talk with a doctor or nurse, savings cost another $45. chalets as last year, but we’re sold percent in 2015), the big change “HMOs are still popular in Mich- and convenience can pay divi- NS International also is launch- out way earlier,” Denker said. “We’re was the increase in median de- igan, and for many employees (are) dends. ing a wellness program for the first working hard to find places to put ductibles for PPO plans, which in- still the lowest-cost option,” Mc- “My daughter used telemedi- time this year, Nessel said. people.” creased to $600 from $500 for sin- Laughlan said. “Employers want to cine” at college for strep throat, Mc- “We are trying to figure out how Race sponsors include Chevrolet, gle coverage and $1,200 from keep that attractive.” Laughlan said, and got a prescrip- to incorporate wellness to drive Cadillac, Quicken Loans Inc., Metro $1,000 for family coverage, Mc- Interesting trends continue to tion. down costs for employees,” Nessel Detroit Chevy Dealers and Metro De- Laughlan said. feature employers adding wellness Nessel said NS International’s said. “We are looking at getting peo- troit Cadillac Dealers. Other sponsors “This was the first increase in six and telemedicine programs. telemedicine program through Am- ple engaged and (building) aware- include American Axle & Manufactur- years,” she said. “More employers “There is huge interest in tele- well and Blue Cross also allows em- ness for their health.” ing Holdings Inc., Blue Cross Blue are adding HMO deductibles, and medicine programs by employers ployees and their families to be Jay Greene: (313) 446-0325 Shield of Michigan, Cooper-Standard consumer-driven health plan de- with vendor participation and “seen” over the phone and avoid a Twitter: @jaybgreene Holdings Inc., Dykema Gossett PLLC, ductibles went up for the first time health plan participation,” Mc- MotorCity Casino Hotel and Lear since 2008.” Laughlan said. Corp., among others. For example, 78 percent of em- Some 38 percent of employers The weekend’s race includes the ployers this year had an HMO de- surveyed offer telemedicine as a Verizon IndyCar Series’ “Chevrolet ductible ($1,000 for single and care provider option, up from 20 Dual in Detroit” presented by $2,000 family), up from 68 percent percent last year and only 4 per- Machine Quicken Loans; the IMSA Weath- last year, the survey showed. cent in 2014, the survey said. EXPANDING: manufacturer erTech SportsCar Championship; and However, many employers held McLaughlan said employers are the SPEED Energy Stadium SUPER down employee HMO premium just starting to understand that if with a $1 million Trucks series. costs. Average single monthly pre- an employee can avoid a high-cost The Trans Am Series’ “Motor City 100” also returns this year for the line of credit first time in 15 years. The series last participated in the Grand Prix in 2001. The opening day will once again be the Comerica Bank Free Prix Day Helping staffi ng companies, Gate, where admission to Friday’s consultants, distributors and more with races is free of charge. Denker said he expects more than 100,000 at- business cash fl ow solutions. tendees over the event’s three days of activities, thanks to a favorable weather forecast calling for low-80 iA/R Financing degree highs and sun (at least as of i last week). Last year's attendance, Lines of Credit estimated at 65,000, was impacted by rain and thunderstorms. (248) 658-1100 www.hitachibusinessfi nance.com “Last year was terrible,” Denker said. “The forecast looks good so far, and we’re expecting a big (ticket sales) push after the Indy 500 (May 29). I ex- pect great attendance this year.” Chevrolet Detroit Belle Isle Grand Prix When: Friday through Sunday Commercial Finance Experience Friday: Free Prix Day. Practice and qualifying. Speed Energy Stadium Super ® Truck Series race Saturday main events: IndyCar In Your Corner. Series race, 3:30-6 p.m.; The Romantics, Ŷ Domestic and international bi-lateral 6 p.m. and syndicated commercial, real- Sunday main events: Morris Day & The Time, 12:30 p.m.; IndyCar Series estate and asset-based nancing. race, 3:30-6 p.m. Ŷ Loan workouts, restructuring, Tickets: $40 and up. Children under 12 free. Call (866) 464-7749, visit www. bankruptcy and collection. DetroitGP.com/tickets, or purchase in person at the Grand Prix o“ce in the Renaissance Center. Shuttle service: Shuttles will run from various parking options; round- trip cost is $10. Shuttles will run continuously from 7 a.m. to 10 p.m. Parking: Cobo Hall roof, Joe Louis Arena deck, marina lots at Atwater and Orleans streets Parking Saturday-Sunday only: Street-level lots east of the Renaissance Center; Renaissance Center parking decks at Beaubien Street, Port Atwater and Franklin Street Broadcast: ABC, FS1, CBS Sports Network First Tier Ranking in Details: DetroitGP.com or the Corporate Law and Commercial and DetroitGP mobile app available in the Construction Litigation Apple or Google Play app stores

Contact David McLeod at [email protected] Ŷ Ŷ Ŷ Ŷ Ŷ Ŷ Ŷ Ŷ Dustin Walsh: (313) 446-6042 Detroit Novi Grand Rapids Kalamazoo Grand Haven Lansing Ann Arbor Hastings Twitter: @dustinpwalsh 18 CRAIN’S DETROIT BUSINESS // MAY 30, 2016

HOSPITAL FROM PAGE 3 www.crainsdetroit.com Editor-in-Chief Keith E. Crain West Bloomfield Township. Group Publisher Mary Kramer, (313) 446-0399 Originally based in Detroit and or [email protected] Editor Jennette Smith, (313) 446-1622 known as a hospital specializing in or [email protected] plastic, reconstructive and orthope- Director, Digital Strategy, Audience Development dic surgery, Straith added eye sur- Nancy Hanus, (313) 446-1621 or [email protected] Managing Editor Michael Lee, (313) 446-1630 gery in 1984 and later rehabilitation or [email protected] services in 1993. It built a new hos- Managing Editor/Custom and Special Projects Daniel pital in Southfield in 1973. Duggan, (313) 446-0414 or [email protected] Assistant Managing Editor Kristin Bull, After World War I, Claire Straith, (313) 446-1608 or [email protected] who originally was a dentist, decid- News Editor Beth Reeber Valone, (313) 446-5875 ed to become a surgeon after so or [email protected] Senior Editor Gary Piatek, (313) 446-0357 many doughboys returned home or [email protected] with facial injuries. He pioneered re- STRAITH HOSPITAL Research and Data Editor Sonya Hill, (313) 446-0402 or constructive surgery techniques Straith Hospital for Special Surgery, Southeast Michigan’s only independent nonpro™t hospital, was started by a local pioneer [email protected] Newsroom (313) 446-0329, FAX (313) 446-1687, and built one of the largest plastic in plastic surgery and is now trying to navigate a changing health care world. TIP LINE (313) 446-6766 surgery practices in the Midwest. In REPORTERS 1951, he patented the auto indus- said. icult for commercial insurers to au- Bescoe said the hospital also is Jay Greene, senior reporter Covers health care, try’s first crash pads, which are now In 2009, Straith built the new five thorize payments. We are working looking into participating in Medi- insurance, energy, utilities and the environment. (313) 446-0325 or [email protected] presented in the Smithsonian Na- operating rooms and renovated its on it.” care’s bundled payment pilot for hip Chad Halcom Covers litigation, the defense industry and tional Museum, to protect riders facade, private rooms and pre- and One of the competing hospitals and knee joint replacement. “We education. (313) 446-6796 or [email protected] from disfiguring injuries. post-surgical areas. in the market, St. John Providence can partner with orthopedic sur- Tom Henderson Covers banking, ™nance, technology and biotechnology. (313) 446-0337 or James Straith, One of the hospital’s bright spots Hospital in Southfield, which is 2 geons for knee and hip payments [email protected] grandson of the the past two decades has been its miles from Straith, also operates a because we are low cost and high Kirk Pinho Covers real estate, Oakland and Macomb founder and 24-hour rehabilitation unit for post- 16-bed inpatient rehabilitation unit. quality,” he said. counties. (313) 446-0412 or [email protected] Bill Shea, enterprise editor Covers media, advertising chairman of the acute care patients. The 24-bed “Straith has branded themselves While many hospitals have and marketing, the business of sports, and eight-member unit’s average census is 13 patients as a specialty surgical hospital,” said reaped bankable revenue increases transportation. (313) 446-1626 or [email protected] board, which is with an average stay of 6.5 days. Joe Hurshe, president of Provi- because of the Affordable Care Act Robert Snell, reporter Covers city of Detroit and regional politics. (313) 446-1654 or [email protected] mostly made up They are mostly seniors with an av- dence-Providence Park Hospital. and Medicaid expansion, Bescoe Lindsay VanHulle, Lansing reporter. (517) 657-2204 of Straith family erage age of 82 who have had sur- “They have aspirations into other said Straith’s Medicaid revenue in- or [email protected] members, also gery on knees and hips and require things.” creased only slightly. Still, Medicaid Dustin Walsh, senior reporter Covers the business of law, auto suppliers, manufacturing and steel. heads up Troy- physical and occupational therapy. Hurshe said rehabilitation ser- revenue doubled last year to 2.5 per- (313) 446-6042 or [email protected] Brad Bescoe: based Straith Straith said the combination of vices generally are driven by patient cent of total revenue, up from about Sherri Welch, senior reporter Covers nonpro™ts, Pitching Straith as , a bou- surgery and rehabilitation can be a preference. “They have an ability to 1.2 percent, and bad debt declined services, retail and hospitality. (313) 446-1694 or Group [email protected] lower-cost for tique commer- plus for surgeons who want to offer choose where care continuum is to by 30 percent. The bulk of revenue, insurers. ADVERTISING cial and invest- patients quality post-acute care. be provided, and there is a criteria 70 percent, comes from Medicare, Sales Inquiries (313) 446-6032; FAX (313) 393-0997 ment real estate “It’s this synergy that we want to for admissions.” with the rest from commercial and Advertising Director Matthew Langan company. The board members are promote,” Straith said. “Orthopedic Because Providence Hospital is self-pay, he said. Senior Account Manager Katie Sullivan Advertising Sales Gerry Golinske, Catherine Grace, shareholders in the nonprofit cor- surgeons and cardiologists can offer part of the St. John Providence Health “We saw an increase in Healthy Joe Miller, Diane Owen, Sarah Stachowicz, poration. their patients proximity access.” System, Hurshe said, “we would Michigan patients. They probably ClassiŠed Sales Manager Angela Schutte, “I remember my grandfather Dalsey, who has provided con- look within our own system first for didn’t have insurance before. We (313) 446-6051 ClassiŠed Sales Lynn Calcaterra, (313) 446-6086 Claire very well and remember sulting services to Straith over the referrals” when the rehab unit is full. hope that trend continues,” Bescoe Events Manager Kacey Anderson climbing around when the hospital years, said the challenge for Straith Competition and other forces said. Senior Art Director Sylvia Kolaski was being built in 1954,” said Straith, is how to survive in a competitive have changed Straith into diversify- Financially, the hospital has had Marketing Coordinator Ariel Black Special Projects Coordinator Keenan Covington who is now 66 and has been on the landscape that is dominated now by ing into other service lines. good cash flow, Straith said, but it Sales Support Suzanne Janik board the past 25 years, the last multi-hospital systems that have A decade ago, Straith conducted has lost money on operations the Production Manager Wendy Kobylarz eight as chairman. tight relationships with multiple up to 6,000 cataract surgeries each past several years. Production Supervisor Andrew Spanos “We are trying to get the message physician groups. year. Beginning around 2006, entre- From 2010 to 2014, Straith lost CUSTOMER SERVICE Main Number: Call (877) 824-9374 out that we are very efficient, have “Straith also needs to create ap- preneur surgeons started opening $4.6 million on operations, but over or [email protected] low infection rates, and are very well propriate packages of services be- competing ambulatory surgery the past two years net income to- Subscriptions $59 one year, $98 two years. Out of state, managed,” Straith said. “Because of cause insurers are looking for low centers, cutting Straith’s annual to- taled $2.8 million when investment $79 one year, $138 for two years. Outside U.S.A., add $48 per year to out-of-state rate for surface mail. Call (313) our small scale, we can provide cost, price and good outcomes,” tals to about 250, Rys said. income and other revenue is added, 446-0450 or (877) 824-9374. state-of-the-art OR space, rehabili- Dalsey said. “There shouldn’t be any Total eye surgeries amount to according to Medicare cost reports Single Copies (877) 824-9374 tation care and other care to special- reason why Blue Cross Blue Shield of about 1,200 annually, including reti- provided by Louisville-based Ameri- Reprints (212) 210-0750; or Krista Bora at [email protected] ists who can really appreciate it.” Michigan, Priority Health and Health nal and corneal transplants. can Hospital Directory. Net patient To Šnd a date a story was published (313) 446-0406 or Straith said hospital officials are Alliance Plan shouldn’t support “We tried a transitional care unit revenue has averaged about $10 e-mail [email protected] looking to attract new physicians to them.” few years ago, but it didn’t fit with million the past five years. Crain’s Detroit Business is published by the 39-member medical staff and But Bescoe acknowledged that our service mix,” Rys said. But end-of-year cash and cash Crain Communications Inc. Chairman Keith E. Crain develop new relationships with Blue Cross pays Straith less than Bescoe said discussions are un- equivalents have averaged $2.6 mil- President Rance Crain physician groups and account- Medicare for certain services be- derway with several physician-led lion the past three years, according Treasurer Mary Kay Crain able-care organizations. cause the hospital isn’t a designated accountable-care organizations. An to the hospital’s audited financial Executive Vice President/Operations William A. Morrow “We have a surplus of unused OR inpatient rehabilitation unit. Obamacare initiative, ACOs are statements. When investments are Executive Vice President/Director of Strategic time, and we can offer orthopedic “We don’t want to be, because groups of physicians, hospitals and included in the cash metrics, the Operations Chris Crain surgeons or eye surgeons, cardiac that limits us to just 13 procedures,” other providers who agree to accept hospital shows a steady cash flow Executive Vice President/Director of Corporate Operations KC Crain surgeons or interventional cardiolo- he said. “But we are a much low- flat payments from Medicare and increase to $8.6 million last year Vice President/Production & Manufacturing gists a better choice of OR time,” he er-cost option for insurers. It is very share in the savings. from $7.2 million in 2013. Dave Kamis “We could help providers avoid “We are fiscally sound with tre- Chief Information O“cer Anthony DiPonio G.D. Crain Jr. Founder (1885-1973) readmissions by using our rehab mendous ratios, and our debt cov- Mrs. G.D. Crain Jr. Chairman (1911-1996) INDEX TO COMPANIES unit,” Rys said. Straith’s readmission erage is excellent,” said Straith, add- Editorial & Business O“ces These companies have signicant mention in this week’s Crain’s Detroit Business: rate is less than 5 percent, much ing that the board expects steady 1155 Gratiot Ave., Detroit MI 48207-2732; (313) 446-6000 Ally Bank ...... 9 Level One Bank ...... 11 lower than the region’s 20 per- increases in patient volume and Cable address: TWX 248-221-5122 AUTNEW DET Bank of America...... 10 Marsh & McLennan Agency...... 1 cent-plus average. revenue over the next several years. CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is Chevrolet Detroit Belle Isle Grand Prix ...... 3 Michigan Technological University...... 12 Dalsey said contracts with ACOs “We are a small hospital, and published weekly, except for a special issue the third week of November, and no issue the third week of Chicken Shack ...... 5 NS International...... 1 could boost patient volume and be- small hospitals have been going by December by Crain Communications Inc. at 1155 Gratiot Clarkston State Bank ...... 9 PNC Bank...... 11 come a good arrangement for phy- the wayside for years,” Straith said. Ave., Detroit MI 48207-2732. Periodicals postage paid at Detroit, MI and additional mailing o¦ces. POSTMASTER: Detroit Institute of Arts...... 8 Providence-Providence Park Hospital...... 3 sician partners. “The trend is economy of scale with Send address changes to CRAIN’S DETROIT BUSINESS, Detroit Wayne Mental Health Authority ...... 16 Regional Transit Authority of Southeast Michigan.1 “The challenge is to overcome big hospitals gobbling up smaller Circulation Department, P.O. Box 07925, Detroit, MI Fi•h Third Bank ...... 10 Straith Hospital for Special Surgery ...... 3 the politics. If you have a Beaumont hospitals. Our mission is to stay in- 48207-9732. GST # 136760444. Printed in U.S.A. Entire contents copyright 2015 by Crain Communications Flagstar Bank...... 11 Talmer Bank and Trust...... 11 or (Henry) Ford-related medical dependent, and we can do so be- Inc. All rights reserved. Reproduction or use of editorial Ford Motor...... 4 United Shore Financial Services LLC...... 9 group, do they want to take patients cause we have an excellent adminis- content in any manner without permission is strictly Gateway Community Health...... 16 United Shore Professional Baseball League...... 3 out of the mother hospital?” Dalsey trative and staff at the hospital with prohibited. General Sports & Entertainment ...... 15 Wayne State University...... 12 said. “You have to find the right kind strong loyalty.” Grow Detroit’s Young Talent...... 7 Western Michigan University ...... 12 of doctors and patients to make it Jay Greene: (313) 446-0325 work.” Twitter: @jaybgreene CRAIN’S DETROIT BUSINESS // MAY 30, 2016 19 ON THE WEB RUMBLINGS WEEK MAY 21-27 Detroit Digits Foundation of American Veterans. In Gilbert joins lineup for Longtime 2013, Michigan Attorney General A numbers-driven look at last week’s Bill Schuette ordered ACS to stop its supporters leave headlines: use of what he said were misleading telemarketing tactics. Mackinac conference $2.9M gi‡ to DSO n United Auto Workers members resh from a billion-dollar of the idea winners are minority- $95 million at Detroit Diesel ratified a contract soccer stadium proposal and owned businesses, 64 percent he Detroit Symphony The amount to be invested by Illinois- that includes a wage increase and a reported bid to buy Yahoo were woman-owned and 53 received a commits F, percent were both woman- and Orchestra based automotive parts Daimler Trucks North Inc. Dan Gilbert $2.9 million gift — the manufacturer Flex-N-Gate Corp. to America to new engine production, was a late minority-owned. Businesses range Tsecond-largest in its 129-year Automotive News reported. addition to the from 3 to 93 years old. Businesses buy 30 acres of Detroit land to build a history — from the estate of new plant that will create up to 750 n The University of Michigan event roster for must be 3 years or older by the longtime supporters Clyde and jobs. A $3.5 million performance- Health System in Ann Arbor has the 2016 application deadline to be eligible Helen Wu to help sustain music based state grant has been approved joined Together Health Network as a Mackinac Policy for an NEIdeas award. education programs provided for the project. referral provider for complex, or Conference, the NEIdeas features two types of through the Wu Family Academy for quaternary, health care services. Detroit Regional awards: $10,000 for businesses Learning & Engagement. The gift Together Health is a joint venture Chamber that gross under $750,000 brought the couple’s total giving to $2 million between Warren-based Ascension announced last annually with ideas to grow, and the DSO to more than $5 million. The amount of a grant by the Health Michigan and Livonia-based week. Dan Gilbert: Late $100,000 for businesses that gross Clyde Wu, a cardiologist at Oakwood Detroit-based DTE Energy Trinity Health Michigan. Gilbert, addition to more than $750,000 and less than Hospital in Dearborn, died last year. Foundation to the Detroit n The Michigan Department of chairman of Mackinac Policy $5 million annually with ideas to He was preceded in death by his Symphony Orchestra in support for Environmental Quality approved two Detroit-based Conference. grow “big.” wife, a concert pianist. the orchestra’s community concert new air permits for the Marathon Oil Quicken Loans Thirty applicants will be series, held each September. Corp. refinery in southwest Detroit. Inc., will appear Wednesday at the awarded $10,000 each, and two COMPANY NEWS The state said the update will lead annual conference on Mackinac businesses will be awarded n Diversi™ed Restaurant Holdings to reductions in air pollution, The Island, which runs Wednesday $100,000 each. Inc., the Southfield-based company Detroit News reported. through Friday. He is expected to The application is available at that owns the ’s 7,410 n A Bloomfield Hills-based talk about the city’s progress in NEIdeasDetroit.org. Bagger Dave The team-record attendance for the restaurant chain and is the largest organization that aims to connect recent years as his Bedrock Real NEIdeas is operated in inaugural match for Detroit City FC BuŽalo Wild Wings franchisee, is companies in Israel and Michigan Estate Services LLC has purchased partnership with the Detroit at Hamtramck’s Keyworth Stadium. getting a new CEO and plans to will pilot an effort to boost Israeli more than 80 properties Economic Growth Corp. The NEI is a DCFC and AFC Ann Arbor played to explore strategic alternatives for firms’ Michigan supply chains with downtown. It’s not known if he’ll special project of the Community a 1-1 draw in the „rst National Bagger Dave’s, the company said. help from the state. Michigan Israel come bearing more news. Foundation for Southeast Michigan. Premier Soccer League game at the , Diversified’s founder, , founded in 2007, Gilbert is scheduled to participate Michael Ansley renovated site. Business Bridge chairman, president and CEO, will will team with the Michigan in a one-on-one discussion with Rakolta Jr. to speak on turn over the president and CEO Economic Development Corp. and its Dennis Archer Jr., president of Archer rebuilding city at JVS lunch titles to CFO David Burke on Jan. 1, least 50 jobs at a facility in Shelby Pure Michigan Business Connect Corporate Services and this year’s the company said. Bagger Dave’s Township. The company plans to program, which matches suppliers conference chairman. Walbridge endured two waves of closings last refurbish a manufacturing facility it to in-state vendors. Gilbert’s involvement comes Aldinger Co. year that shrunk it by 11 will lease at the Cherry Creek n Sports Authority Inc., which amid reports that he is seeking to Chairman and restaurants, including one in Business Park. filed for bankruptcy protection acquire internet pioneer Yahoo CEO John Rakolta downtown Detroit, to 16. n John Krafcik, CEO of Google’s three months ago, is closing all 460 with the backing of investor Warren Jr. will give the n Athletic apparel maker Nike self-driving car project, said the of its stores, including four in BuŽett, founder of Berkshire keynote address became the latest addition to Silicon Valley tech firm would open Michigan, after it was unable to Hathaway Inc. on rebuilding downtown Detroit’s retail offerings a 53,000-square-foot development adapt to consumers’ move online. Gilbert joins a three-day roster of Detroit at JVS’ when the Nike Detroit Community center in Novi. The Englewood, Colo.-based sports speakers that includes Gov. Rick 19th annual opened Thursday in the n announced it retailer has Michigan stores in ; Flint water crisis Strictly Business Store Ford Motor Co. Snyder John Rakolta Jr.: former F.W. Woolworth building. will launch a pilot program to hire Auburn Hills at Great Lakes Crossing whistleblower Mona Hanna-Attisha, Networking and To give keynote Michigan State University basketball adults with autism on June 1. Ford Outlets, Clinton Township, M.D.; Detroit Mayor Mike Duggan; Awards address at JVS coach Tom Izzo was on hand for the will create five positions in product Dearborn and Flint. former CNN anchor Soledad O’Brien; Luncheon on luncheon. opening; the school has an apparel development suited to the skills n Shake Shack, the popular New and Daymond John, CEO of the FUBU June 23. contract with Nike. and capabilities of workers with York City fast-food restaurant clothing line who appears on ABC’s Rakolta co-chairs the Coalition for n Dan Gilbert played deaf and autism for the program, called chain, said it will open its first the Future of Detroit School Children, dodged a question during a Detroit FordInclusiveWorks and developed Michigan location in downtown Workshop to o er late which issued recommendations on Startup Week event about whether with the nonprofit Autism Alliance Detroit sometime next year, in the improving education for children in he is going to buy internet pioneer of Michigan, which is funding the Dan Gilbert-owned First National help for NEI applicants the city last year and continues to Yahoo Inc. “What was the question?” training program tied to the jobs. Building at 660 Woodward Ave. The New Economy Initiative will advocate for stabilizing the Gilbert said jokingly to an audience n Ilitch Charities and its affiliate host a last-minute workshop for troubled school district. member during a question-and- Detroit Tigers Foundation have OTHER NEWS businesses seeking to apply for its During the fundraising event, answer session about financial donated $135,000 to state and local n Prosecutors filed more third Small Business Challenge, the which is expected to draw nearly technology startups at the Masonic law enforcement agencies to charges in an investigation of deadline for which is Wednesday. 800 business and community Temple in Detroit. “I wish I could purchase three highly trained, Detroit Public Schools corruption, The Last Call NEIdeas Info leaders, JVS will comment on that.” His response is bomb-detecting dogs. The Michigan accusing a former district official of Session & Workshop on Tuesday also present believed to be the first public State Police, Wayne State University obtaining more than $1.2 million will be at the Northeast Guidance Detroit Labs and comment by the chairman of Public Safety Department and for tutoring services that were never Center at 2900 Conner St. in its co-founder Detroit-based Quicken Loans Inc. Detroit Police Department will each provided, AP reported. A charge Detroit from 6-8 p.m. The session and CEO Paul since reports surfaced he was get one of the dogs. filed last week said Carolyn Starkey is for interested business owners Glomski with its seeking to acquire Yahoo with the n New York state Attorney Darden submitted fraudulent to get more information on Business backing of Warren BuŽett’s Berkshire General Eric Schneiderman sued invoices over seven years after NEIdeas or to talk about their Leadership Hathaway Inc. Ann Arbor-based Domino’s Pizza leaving DPS. Darden worked for the ideas before turning in their Award; and Zack n Metropolitan Hotel Partners Inc., affiliates and three franchisees, district for 37 years and was applications. Sklar, majority Zack Sklar: Chef LLC, a joint venture between the alleging they underpaid workers director of grant development. About 1,200 small businesses owner and chef to receive Rising Detroit-based Means Group and based on payroll reports generated n An appeals court affirmed the from Detroit, Hamtramck and of Peas & Carrots Entrepreneur Roxbury Group, will own and by the parent company’s computer 45-year prison sentence for Farid Highland Park applied to the Hospitality, with Award. develop the Element Detroit at the system, AP reported. Fata, the Oakland County cancer NEIdeas challenge in 2014 and its Rising Metropolitan Building, the city’s only n The state of Minnesota is doctor who put hundreds of patients 2015. NEIdeas has given $500,000 Entrepreneur extended-stay hotel, planned for a suing professional fundraising through needless treatments. to 32 small businesses in those Award, during the luncheon. July 2018 opening.. company Associated Community n Five of seven people accused cities. The event is set to begin at 11:30 n Cosworth Group, the United Services and its affiliate Central in a cheating conspiracy at Industries have spanned sectors a.m. at MGM Grand in Detroit. Kingdom-based high-performance Processing Services, alleging the MotorCity Casino Hotel in Detroit ranging from barbers to Tickets are $150. For more engine technologies company, will Southfield-based firms are pleaded guilty in the case and are manufacturers, mechanics to information, visit www.jvsdet.org/ invest $30 million and create at deceptively soliciting money for the awaiting sentencing, officials said. bakers and more. Seventy percent strictlybiz. DBpageAD_DBpageAD.qxd 5/27/2016 1:41 PM Page 1

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