New President Creates a Weighty To-Do List

CD_20130909BASIC-Cover.qxp 9/6/20135:16PMPage1 ©Entire contentscopyright2013byCrainCommunicationsInc.Allrightsreserved with $664million. Charles ReinhartwasNo.3 gross saleswith$2.6billion; tial Brokerslistbasedon2012 on said. hart brokers38percent,Elsea in thecounty;CharlesRein- brokers 12percentofthedeals Currently, RealEstateOne market shareinWashtenaw. Real EstateOne50percent retaining thatbrand.” ker there.Wearegoingtobe “They arethedominantbro- market share,”hesaid. strong WashtenawCounty the purchaseprice. vices. Hewouldnotspecify president ofbrokerageser- Dan Elsea,RealEstateOne finalized thismonth,said based intent topurchaseAnnArbor- One Inc. Ann Arbor’s CharlesReinhart Real EstateOnetobuy manufacturers, Page17 Largest Michigan all trades,Page11 Cracker Jackof Rapids a U.S.A.’: Grand ‘Snack City center seeksnewleader Now debt-free,science kids’ imaginations Manufacturing campsparks

NEWSPAPER www.crainsdetroit.com Vol.29,No.37 Page 3 Crain’s Crain’s This JustIn MICHIGAN BUSINESS Real EstateOnewasNo.1 He saidthemergerwillgive “It givesussomevery The dealisexpectedtobe Southfield-based Crain’s Charles ReinhartCo. has signedaletterof Lists CRAIN’S Largest Residen- — KirkPinho Real Estate

LON HORWEDEL I per credithourformostundergraduatepro- hike thisacademicyear. funding infavorofan8.9percenttuition philanthropy, retention Improved budgetmodel, Tops onWilson’s agenda: a weighty to-dolist New creates president research grantandcontractfunding. focus onphilanthropy,improvingstudentretentionandsix-yeargraduationratesrebuilding Roy Wilson’sprioritiesashebeginshistenurepresidentofWayneStateUniversity:Arenewed Wilson saidtheincreasetoaround$500 forgo statelegislativeperformance supports hispredecessor’sdecisionto M. RoyWilsonof t wasn’thiscalltomake,butPresident CRAIN’S DETROITBUSINESS B Y C HAD A NEWCHAPTERFORWAYNE STATE A NEWCHAPTERFORWAYNE STATE H Wayne StateUniversity ALCOM SEPTEMBER 9–15,2013 TONY TLAW ATTORNEYS AT year. initiative rolledoutbytheWhiteHousethis bly bytakingpartinanewbrainscience search grantandcontractfunding—possi- six-year graduationratesandrebuildingre- ing year-over-yearstudentretentionand a renewedfocusonphilanthropy,improv- for theDetroitresearchuniversityinclude president Aug.1,told the topitemsonWilson’sto-dolist. able budgetingmodelforWayneisamong get, hesaid.Butdevelopingamoresustain- tuition revenuesoughtforthe2013-14bud- versity raisemostofitstarget$348million he doesnotintendtorepeat. grams wasaone-offfundingstrategythat Wilson, whostartedasWayneState’s It hasmainlypaidoffinhelpingtheuni- A BETTERPARTNERSHIP (see ouradonpage2) Yearning for legalpeace ofmind? Crain’s See Wilson,Page37 that priorities GLENN TRIEST eral-Mogul’s directorofcorporatecommunications. ees overthepastseveralyears,saidJimBurke,Fed- only abouthalfthatsizeduetoareductioninemploy- and NorthwesternHighway,butitneedsanoffice square feetonthesouthwestcornerofLahserRoad nected four-buildingcomplextotalingabout360,000 and Farmingtonroads. Hills at34405-34705W.12MileRoad,betweenDrake building into about180,000squarefeetofspaceinthefour- a newofficeinneighboringsuburbnextyear. 650-700 employeesatitsSouthfieldheadquartersto move tosmallerspace Federal-Mogul plans Rasher tutions, saidBruceRasher,redevelopmentmanager be usedbyautomakers,suppliersandresearchinsti- shared researchanddevelopmentcenter,whichwill derstanding, Walbridgewouldownandoperatethe ture, othervehiclesandsystems.Connectedsystems wirelessly connectandcommunicatewithinfrastruc- General MotorsCo. connected vehicleresearchcenterontheformer a riskonpotentialdevelopmentprojecttobuild Willow Runplantsite Walbridge looking at vehicle research for connected Center proposed ‰ Auto supplier Burke saidthecompanyisinfinalstagesof Federal-Mogul isthesoletenantinanintercon- A realestatesourcesaidthecompanyismoving Detroit-based Connected vehiclesusemodemsandsensorsto Arboretum OfficeComplex CRAIN’S DETROITBUSINESS CRAIN’S DETROITBUSINESS B Walbridge DevelopmentLLC B Y Federal-Mogul Corp. Willow RunPowertrainplant. disruptive vehicletechnologies. the regiontocontinuedevelop sive andsaiditmeetsaneedfor Township lastweek. of the332-acresiteinYpsilanti posed toredevelopthemajority firm diagnostics andinfotainment. are usedforactivesafetysystems, Y D Under thememorandumofun- Experts calltheprojectprogres- The subsidiaryofconstruction K USTIN IRK Walbridge GroupInc. See Federal-Mogul,Page37 P W INHO See WillowRun,Page35 ALSH $2 acopy;$59year WNJ.com in Farmington will movethe is taking pro- ® CD_20130909CMB-Cover.qxp 9/6/20135:29PMPage1

0 71486 02858 1 ©Entire contentscopyright2013byCrainCommunicationsInc.Allrightsreserved C million. Reinhart wasNo.3with$664 with $2.6billion;Charles list basedon2012grosssales Largest ResidentialBrokers recently No.1onthe brokers 38percent,Elseasaid. the county;CharlesReinhart kers 12percentofthedealsin Currently RealEstateOnebro- market shareinWashtenaw. Real EstateOnea50percent retaining thatbrand.” ker there.Wearegoingtobe “They arethedominantbro- market share,”hesaid. strong WashtenawCounty the purchaseprice. vices. Hewouldnotspecify president ofbrokerageser- Dan Elsea,RealEstateOne finalized thismonth,said based intent topurchaseAnnArbor- One Inc. Arbor’s CharlesReinhart Real EstateOnetobuyAnn center seeksnewleader Now debt-free,science sparks kids’imaginations Jackson manufacturingcamp Page 11 all trades, Cracker Jackof Rapids a U.S.A.’: Grand ‘Snack City manufacturers, Page17 Largest Michigan

NEWSPAPER www.crainsdetroit.com Vol.29,No.37 This JustIn Crain’s Page 3 Inside Michigan Real EstateOnewasmost He saidthemergerwillgive “It givesussomevery The dealisexpectedtobe Southfield-based Charles ReinhartCo. has signedaletterof Lists RAIN — KirkPinho Real Estate Crain’s

LON HORWEDEL I per credithourformostundergraduatepro- hike thisacademicyear. funding infavorofan8.9percenttuition philanthropy, retention Improved budgetmodel, Tops onWilson’s agenda: a weighty to-dolist New creates president research grantandcontractfunding. focus onphilanthropy,improvingstudentretentionandsix-yeargraduationratesrebuilding Roy Wilson’sprioritiesashebeginshistenurepresidentofWayneStateUniversity:Arenewed Wilson saidtheincreasetoaround$500 forgo statelegislativeperformance supports hispredecessor’sdecisionto M. RoyWilsonof t wasn’thiscalltomake,butPresident ’ S CRAIN’S DETROITBUSINESS B Y C HAD A NEWCHAPTERFORWAYNE STATE A NEWCHAPTERFORWAYNE STATE D H Wayne StateUniversity ALCOM ETROIT TONY TLAW ATTORNEYS AT SEPTEMBER 2013 year. initiative rolledoutbytheWhiteHousethis bly bytakingpartinanewbrainscience search grantandcontractfunding—possi- six-year graduationratesandrebuildingre- ing year-over-yearstudentretentionand a renewedfocusonphilanthropy,improv- for theDetroitresearchuniversityinclude president Aug.1,told the topitemsonWilson’sto-dolist. able budgetingmodelforWayneisamong get, hesaid.Butdevelopingamoresustain- tuition revenuesoughtforthe2013-14bud- versity raisemostofitstarget$348million he doesnotintendtorepeat. grams wasaone-offfundingstrategythat Wilson, whostartedasWayneState’s It hasmainlypaidoffinhelpingtheuni- A BETTERPARTNERSHIP (see ouradonpage2) Yearning for legalpeace ofmind? Crain’s See Wilson,Page37 that priorities B GLENN TRIEST USINESS eral-Mogul’s directorofcorporatecommunications. ees overthepastseveralyears,saidJimBurke,Fed- only abouthalfthatsizeduetoareductioninemploy- and NorthwesternHighway,butitneedsanoffice square feetonthesouthwestcornerofLahserRoad nected four-buildingcomplextotalingabout360,000 and Farmingtonroads. Hills at34405-34705W.12MileRoad,betweenDrake building into about180,000squarefeetofspaceinthefour- a newofficeinneighboringsuburbnextyear. 650-700 employeesatitsSouthfieldheadquartersto move tosmallerspace Federal-Mogul plans Rasher tutions, saidBruceRasher,redevelopmentmanager be usedbyautomakers,suppliersandresearchinsti- shared researchanddevelopmentcenter,whichwill derstanding, Walbridgewouldownandoperatethe ture, othervehiclesandsystems.Connectedsystems wirelessly connectandcommunicatewithinfrastruc- General MotorsCo. connected vehicleresearchcenterontheformer a riskonpotentialdevelopmentprojecttobuild Willow Runplantsite Walbridge looking at vehicle research for connected Center proposed ‰ Auto supplier Burke saidthecompanyisinfinalstagesof Federal-Mogul isthesoletenantinanintercon- A realestatesourcesaidthecompanyismoving Detroit-based Connected vehiclesusemodemsandsensorsto Arboretum OfficeComplex CRAIN’S DETROITBUSINESS CRAIN’S DETROITBUSINESS B Walbridge DevelopmentLLC B Y Federal-Mogul Corp. Willow RunPowertrainplant. disruptive vehicletechnologies. the regiontocontinuedevelop sive andsaiditmeetsaneedfor Township lastweek. of the332-acresiteinYpsilanti posed toredevelopthemajority firm diagnostics andinfotainment. are usedforactivesafetysystems, Y D Under thememorandumofun- Experts calltheprojectprogres- The subsidiaryofconstruction K USTIN IRK Walbridge GroupInc. See Federal-Mogul,Page37 P W INHO See WillowRun,Page35 ALSH $2 acopy;$59year WNJ.com in Farmington will movethe is taking pro- ® 20130909-NEWS--0002-NAT-CCI-CD_-- 9/6/2013 4:09 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS September 9, 2013

MICHIGAN BRIEFS To put it charitably: Philanthropy lis as its new president. For the past five years, he has been special in GR, K’zoo set to be studied Mercantile-Firstbank merger creates ‘formidable’ rival assistant to the president and then Michelle Miller-Adams, a profes- vice president for university ad- Mercantile Bank Corp. vancement. sor of political science at Grand Val- grew up by catering to small The stock transaction requires shareholder ap- Ⅲ ley State University in Allendale, will businesses and touting its hometown ties to become proval at both corporations as well as regulatory ap- Having sold 11.5 million shares of common stock in August use one of GVSU’s Russell G. Maw- one of the top banks in the Grand Rapids area. Now, proval and could close by year’s end. Shareholders and raised $89.1 million before ex- by Fellowships in Philanthropic under the proposed $151.5 million merger with probably will vote on the proposal this fall, execu- penses, Ionia-based Independent Studies to compare the philanthrop- Alma-based Firstbank Corp., Mercantile is poised to tives say. Bank Corp. said it had repaid the ic cultures of Grand Rapids and become the third-largest bank headquartered in The combined bank would rank 12th in deposit U.S. Department of Treasury the $81 Kalamazoo, MLive.com reported. Michigan. market share among all banks operating in the state million received as part of the Miller-Adams will look at “why “The combined entity is going to be a formidable and have a solid presence in Michigan’s three Troubled Asset Relief Program, a two similar communities have competitor in Michigan, more so than they were be- largest markets outside of Detroit: Grand Rapids, press release said. produced such different models of fore,” said John Barber, an analyst at Keefe, Bruyette Lansing and Kalamazoo. & Woods in New York City who follows banks in the Mercantile CEO Mike Price will be president and Ⅲ Grand Rapids-based Brewery philanthropic behavior and what Vivant has persuaded Ardmore, are the implications of the differ- Midwest. CEO of the merged bank and will become chairman The combined bank would operate as Mercantile after one year. Firstbank CEO Thomas Sullivan will Pa.-based Tired Hands Brewing Co. ent models for philanthropy and Bank and remain based in Grand Rapids. It would be board chairman for a year. The bank has no in- to retire its “FarmHands” label, volunteerism in the broader com- have 53 offices throughout the central Lower Penin- terest in moving into Southeast Michigan, Sullivan which Brewery Vivant claimed munities,” the university said. sula with assets of nearly $2.8 billion and deposits of said. infringed on its “Farmhand” $2.3 billion. — MiBiz trademark. Jean Broillet IV, own- MSU plans for biosciences er of Tired Hands, gets bonus points for noting in a Bloomberg corridor in downtown GR 2017. MSU said the student-faculty science and gymnasium/health for its proposed merger with Min- News story that “marketplace Michigan State University officials team aims to create a vision for center and another building to be neapolis-based Nash Finch Co. ex- confusion sucks.” led by President Lou Anna Simon MSU and Grand Rapids as a center built downtown, if voters approve. pired without any action from the were in Grand Rapids last week to for biomedical research, clinical Many midsized cities have used federal government, one of the con- start the planning phase for a new study and education. campuses for development, MCC ditions for the merger to proceed, Find business news from around the state at crainsdetroit biomedical research center down- President Dale Nesbary said, point- according to a news release. The .com/crainsmichiganbusiness. town. Faculty and students from ing to Grand Rapids Community Col- merger is on track to be completed Muskegon Community College Sign up for Crain's Michigan MSU’s Land Policy Institute and lege, Kalamazoo Valley Community by the end of the year. Ⅲ Business e-newsletter at crains School of Planning, Design and plans downtown campus College and Lansing Community Col- The Spring Arbor University board of trustees elected Brent El- detroit.com/emailsignup. Construction will do research on Muskegon Community College lege as examples of schools that several parcels of real estate over plans to move part of its campus to have moved parts or all of their the next several weeks, the Grand downtown Muskegon as part of a campuses into urban areas. CORRECTION Rapids Business Journal reported. $24 million proposal approved by MSU bought the 7.85 acres of the MCC board of trustess last Ⅲ A headline on a Briefly item on Page 9 of the Aug. 5 issue should property for $12 million in early month, MiBiz reported. The mea- MICH-CELLANEOUS have said Detroit Future City is moving its offices from, not to, Eastern 2012. The university hopes to build sure calls for a new creative arts Ⅲ Grand Rapids-based Spartan Market to temporary space. the biomedical research facility by facility, additions to the college’s Stores Inc. said the waiting period

Legal peace of mind

Now within Midland ofﬁces

When you partner with the right law firm, you position your company for the best possible business outcomes. That’s legal peace of mind. We have a long and successful track record as trusted legal advisors because we listen to and understand the needs of our clients. How can we help you? Let’s have coffee and discuss the possibilities.

A BETTER PARTNERSHIP® F=9R^\~'%%$""" ' Southﬁeld Macomb County Midland Lansing Grand Rapids Holland Muskegon 20130909-NEWS--0003-NAT-CCI-CD_-- 9/6/2013 5:17 PM Page 1

September 9, 2013 CRAIN’S DETROIT BUSINESS Page 3 Science center ready for new start Health Care Debt-free, center shoots for $2M in revenue GLENN TRIEST

BY SHERRI WELCH Issner, a longtime member of the Detroit Science CRAIN’S DETROIT BUSINESS Center board, who held top engineering management positions at Chrysler, Penske Automotive Group Buoyed by promising operating results during the Inc. and California-based Fisker Automotive Inc. before first half of the year and a clean financial sheet, the stepping up to lead the center in December 2011. Michigan Science Center has launched a national The science center has settled all other debts tied search for a permanent executive director and may to the former Detroit Science Center and is operating name one as soon as this week. debt-free on a budget of about $4.5 million. Since its reopening late last year under a new le- The goal is $2 million in earned revenue, and it’s gal structure, the center has repaid its white knight on pace to do that, Issner said. Observation units being donor Ron Weiser, founder of Ann Arbor-based During the first half of the year the center had $1 McKinley Associates Inc., who acquired $6.2 million in million in revenue on tickets, memberships, travel- observed, Page 21 science center debt in June 2012 to prevent the cen- ing exhibits, outreach and facility rentals. The re- ter’s building and assets from going up for auction. mainder of the budget would come from grants and PHOTO COURTESY OF MICHIGAN SCIENCE CENTER contributions. Two presenters at the Michigan Science The center once again owns its building and all of Center show a summer camp student how More than 100,000 people visited the science cen- the assets, thanks, in part, to Weiser forgiving part the brain works during a show at the of the loan, said interim Executive Director James See Center, Page 35 center’s Chrysler Science Stage. Company index These companies have significant mention in this week’s Crain’s Detroit Business:

Academy for Manufacturing Careers ...... 36 Advanced Food Technologies ...... 13 Dominik Balser, 13, of Hillsdale, spot-welds Airea ...... 4 what he calls a “radioactive coaster” Amway ...... 19 during the Jackson Area Career Center’s Ann Arbor Spark ...... 35 “Machining U” program. Arboretum Ventures ...... 29

LON HORWEDEL Autoliv ...... 19 Barbara Ann Karmanos Cancer Institute ...... 29 Beaumont Health System ...... 21 Beaumont Hospital ...... 22 Blue Cross Blue Shield of Michigan ...... 22 Butzel Long ...... 25 CBRE ...... 37 Center for Automotive Research ...... 35 Charles Reinhart ...... 1 Chelsea Community Hospital ...... 23 Chrysler Group ...... 19 CMS Energy ...... 28 Columbian Logistics Network ...... 11, 15 Compuware ...... 19 Cooper-Standard Automotive ...... 19 Core Partners ...... 37 Delphinus Medical Technologies ...... 29 Detroit Creative Corridor Center ...... 4 Detroit Design Festival ...... 4 Detroit Lions ...... 33 Domino’s Pizza ...... 19 This Dow Chemical ...... 19 DTE Energy ...... 28 Eastern Michigan University ...... 37 Federal-Mogul ...... 1, 19 Festida Foods ...... 16 Great Lakes Caring ...... 25 Greater Detroit Area Health Council ...... 23 Health Law Partners ...... 21 Hearthside Food Solutions ...... 12, 14 Henry Ford Health System ...... 22, 25, 33 class Henry Ford Macomb Hospital ...... 22 Honigman Miller Schwartz and Cohn ...... 34 Inteva Products ...... 19 Jackson Area Manufacturers Association ...... 36 JGA ...... 4 John S. and James L. Knight Foundation ...... 30 Jones Lang LaSalle ...... 37 Kellogg ...... 11, 14 Kerry ...... 13, 14 King Milling ...... 15 is Meritor ...... 19 Metaldyne ...... 19 Michigan Association for Home Care ...... 25 Jackson program makes Michigan Charitable Gaming Association ...... 18 Michigan Manufacturers Association ...... 36 Michigan Science Center ...... 3 Michigan State University ...... 37 manufacturing fun for young students, MSX International ...... 19 North Coast Technology Investors ...... 29 Oakland University ...... 37 riveting RACER Trust ...... 35 creates pipeline for employers Real Estate One ...... 1 Real Times Media ...... 34 Roskam Baking ...... 11, 14 Shiloh Industries ...... 26 BY CHRIS GAUTZ es to the metal table she had just built. It was a challenge and a skill Nichols TAC Manufacturing ...... 36 CRAIN’S DETROIT BUSINESS “I love to weld,” she said. “It’s really didn’t have just a few days before — or TI Automotive ...... 19 even knew existed. University of Michigan ...... 37 ressed in a Lady Gaga T-shirt, fun.” Walbridge Development ...... 1 Nichols chose to spend two weeks of Wayne State University ...... 1, 28 jeans and bright neon yellow The table legs were made of 16-gauge her summer at the “Machining U” aluminum, and the centerpieces of the shoelaces, Madison Nichols camp in Jackson, which teaches young Department index table, also welded onto each edge, were stood laughing with her students a variety of manufacturing D BUSINESS DIARY ...... 30 metal butterflies she created using a friends, her blond ponytail skills, from how to run a lathe, to a swaying back and forth as she talked. computer numerical control (CNC) CALENDAR ...... 31 CNC machine — and the math that CAPITOL BRIEFINGS...... 27 Then, the 13-year-old Jackson plasma cutter. She picked that design, goes into it — and how to weld all the CLASSIFIED ADS ...... 33 eighth-grader adjusted her safety glass- not just because she likes butterflies, but pieces together safely. KEITH CRAIN...... 8 es, picked up her electric drill and got because it was the most complicated de- LETTERS...... 8 back to work on some finishing touch- sign the plasma cutter’s computer had. See Jackson, Page 36 MARY KRAMER ...... 11 OPINION ...... 8 We listen to her ... why not you? A hire calling PEOPLE ...... 32 THIS WEEK @ On Monday mornings, Crain’s Publisher Mary People on the move, job postings and other RUMBLINGS ...... 38 Kramer speaks with Paul W. Smith on WJR AM 760. career information can be found at Crain’s WWW.CRAINSDETROIT.COM Find them at crainsdetroit.com/marykrameraudio. Job Front at crainsdetroit.com/jobfront. WEEK ON THE WEB ...... 38 20130909-NEWS--0004-NAT-CCI-CD_-- 9/6/2013 4:50 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS September 9, 2013 Office furniture dealer to put store, ‘hangout’ in Compuware building \ BY SHERRI WELCH to be a part of it,” he said. everyone else what they’re looking CRAIN’S DETROIT BUSINESS Airea is considering moving its for ... I’ll get more opportunities to headquarters to Detroit, as well as work with clients,” he said. Airea Inc., a Farmington Hills- looking to expand throughout Airea saw double-digit revenue based Haworth office furniture deal- Michigan, Johnson said. growth last year, and Kiwior ex- er owned by former Detroit Pistons The new studio will be outfitted pects the same this year, bringing guard Vinnie Johnson, hopes to with Haworth products to create 11 2013 revenue to $17 million. score with a new downtown studio. nontraditional work zones, from a One of the company’s 30 employ- Airea has signed a seven-year single-person lounge to a 40-person ees will be based at the new studio lease for 2,500 square feet of space conference space. The entire space full time. Five others, including on the ground can accommodate 150 people. Kiwior, will split their time be- floor of the Com- tween the downtown location and Airea plans to open the doors to puware building the company’s Farmington Hills its new studio Sept. 16 and host an in Detroit. site, he said. open house Sept. 19 during the De- J SINGLETON It’s investing Since its launch in 1996, Airea troit Design Festival, with a Sphere Among the creations at last year’s Detroit Design Festival: the “Post It, $700,000, John- has been trying to build its busi- Stick 'Em Up Challenge.” Trending presentation on “The New son said in an ness around connecting with cus- Color Rules” — the first of many email, to turn tomers and looking them in the office environment speakers the space into eye, the emotional part of the busi- planned for the new studio — and a not only a venue ness that’s hard to do over text 5-day fest has designs happy hour as a warm-up to the Johnson for selling office messages and email, Kiwior said. festival’s main event at Eastern furniture but “By bringing people together for Market later that evening. also a place for people from the live events ... we’ll get more face- building to hang out and meeting The new studio is intended to be to-face meetings and be able to con- on showcasing talent spot for the Detroit design and busi- a place to hang out while surfing nect in a much more genuine way, ness community. the Web or talking with associates, which is going to lead to long-term BY AMY HAIMERL The new business activity down- like “Panera without the food,” relationships.” CRAIN’S DETROIT BUSINESS DRAWN TO DESIGN? town drew Airea to Detroit, John- said Airea President David Kiwior. With more than two years left on Detroit is crawling with design. Ⅲ Find the entire Detroit Design son said. “It’s the right thing to do “I’ve always been a pay-it-for- the company’s Farmington Hills Festival schedule and more to support the growth, and I want ward kind of guy ... by giving The city is home to more industri- lease, the studio made sense, Ki- al and commercial designers than details at detroitdesignfestival.com. wior said. anywhere else in the country. So Compuware Corp., one of Airea’s what better way to celebrate them largest clients, offered space when than with the Detroit Design Festi- Shed 3. Sept. 19, 7-11 p.m. it found out the Haworth dealer val, a showcase for all of the talent “This really brings the neigh- was interested in coming down- toiling behind the city’s walls? borhood alive at unexpected town, Kiwior said. “Design festivals happen times,” Clayson said. “Nobody Airea’s other downtown clients throughout the world in what I thinks of Eastern Market as an are DTE Energy Co., Shinola/Detroit after-dark destination.” would consider to be aspirational Ⅲ LLC, Quicken Loans Inc. and Crain Com- markets: Istanbul, New York, Mi- Light up Livernois: The party munications Inc., the parent company lan, London,” said Matthew continues over on the Avenue of of Crain’s Detroit Business. Among Clayson, director of the Detroit Cre- Fashion, at Livernois Avenue and its other clients are Beaumont Health ative Corridor Center, which orga- Seven Mile Road. The night is a System and Flagstar Bank. nized the event. “And it just coming-out party for the strip, At the new studio, Airea is in- seemed natural that we should which has been the focus of an corporating Reclaimed Detroit wood have something that celebrates arts and entrepreneurial on the walls, ceilings and columns the independent design work hap- makeover this summer by the De- and wall coverings for other areas pening here in Detroit.” troit Economic Development Group’s from Detroit Wallpaper Co. On Sept. 17 the third annual Revolve program. Meet new busi- Haworth is helping equip the Detroit Design Festival kicks off nesses, such as Renaissance space with technology products it at the A. Alfred Taubman Center for (streetwear shop), Art in Motion (ce- offers, such as one that allows the Design Education. That preview ramic studio) and Local Social Ice wireless projection of images from party will give a taste of what’s to Cream, and check out art installa- a laptop onto a plasma screen. come when the five-day event of- tions from Detroit designers as Brighton-based Sport View Tech- ficially rolls on Sept. 18. The festi- well as international talents. Sept. nologies, which plans to bring its val is free and will roam across 20, 3-11 p.m. own customers to the space, is in- neighborhoods and pop up in art Clayson is particularly excited stalling an 80-inch, touch-screen galleries, warehouses, parks, stu- about the launches happening as plasma television and two other dios, storefronts and more. There part of the festival: Practice Space, touch-screen televisions, a sound will be 70 separate events repre- a collaborative work space and system and other technology. senting nearly 400 artists. residency program for architec- Airea plans to “flip the space” “We want to show how design ture-related projects, is hosting its quarterly to showcase the latest of- informs the city and how the city grand opening Sept. 21; the debut fice furniture designs and con- informs design,” Clayson said. of the downtown Airea Inc. location cepts so people will have a reason “We want people to use it as a ve- is set for next week; and DC3 is an- to come back, Kiwior said. hicle to explore the city, explore nouncing Artifact Maker Society, He hopes to attract professional the neighborhoods, the contrasts which will connect the city’s prod- design and real estate associa- that make the city wonderful and uct designers, fabricators and tions, small businesses and corpo- challenging and dynamic all at manufactures and provide them rate work groups to host meetings the same time.” with what Clayson called “skills- in the new studio. People working Here are a few highlights: building programming.” in the Compuware building and Ⅲ Eastern Market After Dark: Get Nearly 15,000 people attended others are welcome to hang out a peek inside such galleries as the festival last year; Clayson ex- and take advantage of free Wi-Fi, OmniCorpDetroit and Red Bull pects closer to 20,000 this year. too, Kiwior said. House of Art, and letterpressers There will be shuttles running For interiors industry-related Salt & Cedar and Signal Return, from the Walter B. Ford Building events hosted by architects, design- then indulge at the soon-to-open on the Center for Creative Studies ers, engineers, contractors and re- Frontera restaurant or the hard- campus to the major events. altors, Airea will likely provide to-get-into Guns + Butter, among Amy Haimerl: (313) 446-0402, meeting space at no charge, he said. other food vendors. Don’t miss [email protected]. Twitter: “Most if it will be our contribu- the fashion showcase, too, in @haimerlad tion to bringing the interiors industry together ... the collaborative efforts are good for of Southfield-based retail consul- Having a space like the Airea everybody.” tancy JGA Inc. in an emailed state- studio is an “opportunity that oth- A space like the new Airea stu- ment. er retailers might take for granted, dio will create a “third place” for Spurred by “showrooming,” cus- particularly in other metropolitan people who are looking to be cre- tomers who visit a store to check areas,” he said. ative in design and business and out a product but buy it online, re- “But (it’s) positive and unique to who want to step away from just tailers nationwide are increasingly Detroit.” meeting in a hotel lobby, as well as using their store space and prod- Sherri Welch: (313) 446-1694, great exposure for the Haworth ucts to host events and create new [email protected]. Twitter: @sher- brand, said Ken Nisch, chairman places for people to enjoy, he said. riwelch DBpageAD_DBpageAD.qxd 8/7/2013 9:15 AM Page 1 20130909-NEWS--0006-NAT-CCI-CD_-- 9/6/2013 4:10 PM Page 1

Page 6 CRAIN’S DETROIT BUSINESS September 9, 2013 Detroit’s vow to pay trade creditors follows bankruptcy precedence

BY AMY HAIMERL That is also true in Jefferson law surrounding Chapter 9 bank- CRAIN’S DETROIT BUSINESS County, which was the country’s ruptcies is still emerging. Chapter 9 Unlike corporate Chapter 11, in Chapter 9, largest municipal restructuring doesn’t prohibit the payment of pre- Of all the unsecured creditors in case, with $4.2 billion in debt, be- petition debt, but it doesn’t specifi- the city of Detroit’s bankruptcy, cities can continue to pay vendors for fore Detroit filed its historic $18 cally allow it, either. So other unse- those with the least need for worry billion bankruptcy. cured creditors could ask the courts are the trade creditors. earlier goods and services. “Jefferson County made the to claw back money from area busi- Emergency Manager Kevyn line with how other municipalities tinue to pay vendors for the earlier business decision to pay its pre-pe- nesses, such as Detroit-based Federal Orr’s office has said he intends to have treated their trade creditors goods and services. tition vendors in the ordinary Pipe & Supply, which is owed $16,000 pay vendors through the bank- during Chapter 9 bankruptcy, in- “The city of Vallejo paid all of its course post-petition,” said David in pre-petition debt. ruptcy, even for debts incurred be- cluding Vallejo and Stockton, pre-petition debt on a timely basis,” Carrington, president of the coun- “Under the bankruptcy law, if a fore the city filed for bankruptcy. Calif., and Jefferson County, Ala. said Marc Levinson, a partner in ty’s commissioners. “No motion or vendor creditor or lender is paid “This has been the emergency Unlike in corporate Chapter 11 the restructuring group at Orrick, order was required. No creditors within 90 days before the bank- manager’s position on the day of bankruptcies, where payments on Herrington & Sutcliffe LLP, which filed committee was formed. The plan ruptcy filing, then in bankruptcy the bankruptcy filing and remains most invoices incurred before for bankruptcy on behalf of Vallejo leaves all trade debt unimpaired.” an action can be brought to have so today,” said Orr’s spokesman, bankruptcy — known as pre-peti- and Stockton. “They paid all trade Of course, some attorneys say it is them pay that back,” said Chuck Bill Nowling. tion debt — must be stopped, in creditors on a timely basis. Stock- possible that those payments could Tatelbaum, a partner at Chicago- That puts the city of Detroit in Chapter 9, municipalities can con- ton has done the same.” be challenged later because the case based Hinshaw & Culbertson LLP, who represented creditors in the bankruptcies in Orange County, Calif., in 1994 and Harrisburg, Pa., in 2011. “But what I suspect is going to happen is that (with) the union and bondholders, nobody wants to blow the whistle.” In the Stockton case, there were no attempts to have the trade creditors’ payments reversed, and only one person contested them in Valle- jo. “We exchanged some emails,” Congratulations to the 2013 Levinson said, “but there were no motions and I never heard back.” Knight Arts Challenge winners But, he reminded, just because the city can pay doesn’t mean it must pay. So Orr could decide later to reverse course on the treatment of trade creditors, though his Earlier this year, the Knight Arts Challenge asked: What’s your idea for the local arts office has given no indication that would happen. community? Detroiters responded overwhelmingly - with 1,400 submissions! Read on In Chapter 11, there can be a to discover the 56 winners receiving $2.1 million and visit KnightArts.org to learn more. “critical vendors” list or motion, outlining which vendors the corporation determined to be essential to operations. For example, a » adrienne maree brown » Jeff Karoub » North American Residency grocery store couldn’t continue to » ADULT. » Jon Brumit » Notes for Notes operate — and thus bring in revenues with which to pay creditors » Allied Media Projects » Leander Johnson » Omowale Entertainment — without eggs or milk. So it would list these firms as critical » Al-Mutanabbi Street » LeeLeeFilms » Plowshares Theatre vendors and ask the judge for per- Starts Here Project Company mission to pay them. » Leni Sinclair In Chapter 9, it’s uncertain » Alonso del Arte » Public Art Workz » Living Arts whether there is an equivalent list. » Ara Topouzian » Public Pool None were created in Stockton, » LO & BEHOLD! Vallejo or Jefferson County, and » Arts League of Michigan Records & Books » PuppetART Theater the city of Detroit has not filed a critical-vendor motion. » Brightmoor Alliance » Maison LaFleur » The Hinterlands “I think that there might be issues if you pick and choose some » Center of Music & » Mark Wallace » The Secret Society of trade creditors,” Levinson said. Performing Arts Southwest Twisted Storytellers “That might come back and be an is- (COMPAS) » Michigan Arab Orchestra » The Woodward Line sue come Plan of Adjustment time. » Charles H. Wright Museum » Michigan Philharmonic Poetry Series But again, both Stockton and Valle- of African American History jo made the decision that it was im- » Michigan Theater » Theatre Bizarre portant to these cities trailblazing » Complex Movements » Midtown Detroit Chapter 9 to continue paying the » Trinosophes vendors. Nobody was singled out.” » Cosmic Slop Festival » M. L. Liebler for » Young Nation Nowling would not answer ques- » CutTime Productions The Midtown Detroit tions about a critical vendor list; Literary Walk » Zimbabwe Cultural however, several area businesses » Detroit Chamber Centre in Detroit have received “essential vendor” Winds & Strings » MODCaR letters signed by Orr, stating: “You have been identified by the » Mosaic Youth Theatre of » Detroit SOUP (department redacted) as an essen- Detroit tial vendor. As an essential ven- » East Side Riders » Motor City Brass Band dor, the (department redacted), in » Grandmont Rosedale consultation with the Emergency Development Corporation » Mt Elliott Makerspace Manager’s office, has determined to continue payments to you in the » Hardcore Detroit » Museum of Contemporary ordinary course. … The United Art Detroit (MOCAD) States Bankruptcy Code allows a » Hatch: A Hamtramck municipality, such as the city of Art Collective » N’Namdi Center for Contemporary Art Detroit, to exercise its discretion » Heritage Works in determining whether to satisfy obligations of its vendors and oth- » InsideOut er creditors, including those oblig- Literary Arts Project ations that arose prior to the com- mencement of a Chapter 9 » Jazz Network Foundation bankruptcy case.” Amy Haimerl: (313) 446-0416, [email protected]. Twitter: @haimerlad DBpageAD_DBpageAD.qxd 8/20/2013 12:07 PM Page 1 20130909-NEWS--0008-NAT-CCI-CD_-- 9/6/2013 4:45 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS September 9, 2013 OPINION Short-stay hospital issue needs remedy ocal hospitals are in a bit of a Catch-22. As Senior Reporter Jay Greene reports on Page 21, lo- L cal hospitals have been boosting the number of observation beds as insurers, both public and private, have been more rigorously scrutinizing inpatient admissions after care has been delivered. There are some benefits to this. Short stays in lower-cost observation units save money, and patients generally prefer to recuperate at home instead of in a hospital ward. But second-guessing is leading to millions of dollars in denied charges. And paradoxically, insurers are challenging both inpatient and observational admissions. Hospitals appeal these decisions and often win, but patients still sometimes end up being charged more money than expected. The whole process seems unnecessarily convoluted. Hospitals, Medicare and other insurers all tend to use the same nationally published guidelines to make decisions, but it doesn’t always lead to the same judgments. Diagnoses are not always cut and dried, and sometimes patients can be sicker or less ill than they originally seem. Insurers and health care providers have worked together on a number of initiatives designed to both enhance patient care and control costs — programs to reduce the number of LETTERS readmissions, for example. It would seem this issue could use one of those initiatives. Duggan tally reveals other issues Take note of church musicians Editor: boards, vocals, performance and Crain’s Detroit Business With the demise of so many choral conducting. How do you spell “Duggan”? welcomes letters to the editor. school music programs in recent Almost all administer programs In Detroit, let us count the ways. First, of course, is the bar- All letters will be considered for ber/candidate, Michael Thaddeus Dugeon. years, it is refreshing to see a publication, provided they are complete with cantors, choirs and study reflecting the economic im- instrumentalists, some of whom But documents from the state board of canvassers’ final signed and do not defame pact of the music industry in the individuals or organizations. are also paid stipends in addition certification of the Aug. 6 mayoral primary results show amaz- metro Detroit area (“Study puts Letters may be edited for length to volunteering their talents. Any ingly diverse ways of spelling this now-famous name. The value of Detroit music industry at and clarity. time of the year, you can find out- $1 billion,” Sept. 2, Page M14). The standing recitals or concerts as state completed its work on Aug. 29. Write: Editor, Crain’s Detroit city most famous for Motown now well as high-quality music at nor- A sample: Duggon, Diggeu, Luggon, Daggen, Duggon, Gog- Business, 1155 Gratiot Ave., has all types of music flourishing Detroit, MI 48207-2997. mal weekend services. I have been gan, Dunhcan, Duggin, “Mike Duggan the Whiteman,” in both large and small urban and a music director for more than 40 Email: [email protected] Dugken, Dunmen, “Mick Duggann,” Doughing, Boggan and suburban venues, boosting De- years, and it’s amazing how often many more, with many deemed for neither Dugeon or Duggan. troit’s potential as an upcoming people will compliment the quality The election has made it into the history books as a re- recording hub like L.A., New York categories examined in the study of my music, somewhat surprised, and Nashville. And why not? Some conducted for Crain’s by Anderson with the question, “Do you do this markable showing of more than 48,000 votes for a write-in can- of the most famous music person- Economic Group, were church professionally?” as if church musi- didate, however he spells his name. alities have made the Detroit area musicians ever considered? cians aren’t considered “real” mu- But the state tally also identified problems: no seals on con- home. Many more like them are As in any metropolitan area, De- sicians. tainers in some precincts, broken or open seals in others, no out there. troit is home to hundreds of If the category of “church musi- churches, and nearly all of them ballots in a container from Precinct 244. However, there is one area of cian” has been inadvertently left musicianship that always seems have a director of music. Most po- out of the study, the financial num- The November election likely will be contentious. It’s criti- absent from any serious music dis- sitions are staffed with full- or bers cited are low; when re-evalu- cal that the election process be tightly managed with little cussion, and I’m wondering if part-time musicians formally ating, please consider this profes- room for mistakes — or lengthy court challenges. that’s the case here: Among the 11 trained in organ, piano, key- See Letters, Page 9

KEITH CRAIN: Does anyone really care about issues? Once you get a few miles west Dearborn and metro De- Now it would appear “pin prick” to the head of Syria is them a lesson. Our president of Washington, D.C., the interest troit would speak out in from recent revelations going to do to make sure that it nev- wants to save face after drawing a displayed in our nation’s capital loud and varying voices. that atrocities have oc- er uses gas again. I guess that means couple of red lines? seems to diminish quickly. Not But they have been quiet curred on both sides of we’ll look the other way from the Maybe that has to be done. Let only do folks in the rest of the in voicing opinions. So it this tragic conflict. Nei- continued slaughter of civilians us just hope that it is a very quick country not pay attention to the is- would seem that this is- ther side is without sin. with conventional weapons. excursion. And I am sure all of us sues of the day, but they rarely sue is once again being I have a very hard The situation seems so bizarre do not want to see a single Ameri- voice any opinions. driven by politics rather time coming to grips and surreal. Syrian government of- can put in harm’s way under the Secretary of State John Kerry than anything else. with the difference be- ficials at best are not anything but worst of circumstances. made an impassioned speech that I haven’t run across tween the slaughter of a butchers who slaughter their own If we have to give this regime a was muted when our president anyone yet who has hundred thousand inno- civilians. The rebels are not much “pin prick,” then I can only hope took the stage a couple of days lat- strong opinions about cents who suffered their nicer, if at all. Their conduct, while that we do it from many miles er to give his opinion on the plans becoming involved in end by gas rather than within the Geneva Conventions, is away and that somehow it doesn’t for U.S. involvement in Syria. this civil war that has been going bullets or some other ugly means. still nothing short of brutal. raise the ire of Syria and its allies I have assumed that the large on for years, and tens of thousands I, along with many others, have a So our government wants us to to escalate our “pin prick” into an- population from the Middle East in of Syrians slaughtered as a result. hard time understanding what a weigh in on this conflict to teach other war. 20130909-NEWS--0009-NAT-CCI-CD_-- 9/6/2013 10:26 AM Page 1

September 9, 2013 CRAIN’S DETROIT BUSINESS Page 9

LETTERS CONTINUED ■ From Page 8 more clearly and boldly high- TALK ON THE WEB Ⅲ In 2006, our soft drink com- sion as more than just an after- panies joined as charter partici- light caloric information on the Re: Snyder, Dillon subpoenaed Re: Declining wages, benefits stir thought. Perhaps a second verse? pants in the Children’s Food and front of beverage containers and in Detroit’s bankruptcy dismantled unions Janina Parrott Jacobs Beverage Advertising Initiative, on vending and fountain ma- Director of Music under the supervision of the chines. In the real world (not Detroit), Walk off the job. The more pres- St. Basil the Great Council of Better Business Bu- Ⅲ While Michigan has made what these leaders did would be con- sure you exert on the employer, Eastpointe reaus. This initiative voluntarily little progress in its national sidered good planning so that they the more leverage you have in restricts advertising food and rankings for adult obesity (we might be prepared to act promptly. wage negotiations. Training new Hear both sides of issues beverages to children under 12. were fifth-highest among the Only in the unreal world of Detroit people every other week costs states in 2011, according to the As a result, you do not see adver- is that considered bad. money, more than if they just paid 2012 F as in Fat Report), we have Editor: tising for soft drinks on chil- William J a fare wage. done respectably well when mea- Regarding Mildred Gaddis’ re- dren’s television programming. Bob Probert sponse (“Gaddis: Let’s clear the Ⅲ In 2010, Coca-Cola, Dr. Pep- sured for children, rising from Re: Medicaid expansion will take effect per and Pepsi-Cola, in concert 20th-fattest in the nation in 2003 air,” Aug. 26, Page 6; response to Are you kidding? You walk off a Mary Kramer’s column “Like her with the American Beverage As- to 41st in the 2012 F as in Fat Re- later than originally planned full-time job and you will be re- or not, Gaddis is worth hearing,” sociation, became charter mem- port — better than 80 percent of Failure to give immediate effect placed by a contract worker with Aug. 19, Page 9), I have never met bers in the federal Clear on Calo- the other states. is childish peevishness. The or listened to Mildred on WCHB, ries Initiative. Working with the William Lobenherz Michigan Republican Party is a dis- wages at or near minimum wage. President Sad affair. but I am very impressed with her FDA, the companies produced a Michigan Soft Drink Association grace. articulated response. It’s always new packaging design strategy to Lansing Jungoni Jerry Wolffe nice to get both sides of the issues. As for the upcoming mayoral election, I’m sure that each candidate has his share of weaknesses but also his share of vision and strengths. I hope the voters of De- troit will elect a candidate who will balance the needs of Detroit with the ambitions of our businesses; both need each other. Let’s “ HOW CAN DTE ENERGY start with being accountable citizens who will give each person a fair chance at succeeding, and ap- preciate the good that many are HELP MY BUSINESS SAVE?” trying to accomplish. I am a transplanted East Coast- Each business is different, so DTE Energy offers an online Interactive Business tool which er, enjoy Detroit, and am excited with the impending changes and lets you get information tailored to your speciﬁc business environment. From grocery visions focused on our great city. Steve Paetzold stores to warehouses, you’ll ﬁnd tips, incentives, rebates and more that will help you Plymouth reduce your energy use. We also provide a number of other online tools to help our Let nations set their business customers use less energy and save more money. own political course

Editor: In response to Keith Crain’s column in the Aug. 19 issue, “Not everyone is ready for a democra- DTE wants to help you save, so get started at cy”: He wonders if democracy is dteenergy.com/interactivebusiness the solution for everything and everywhere. Well, wonder no more, because I have long thought democracy is, indeed, not for everything, everyone or everywhere. I truly believe numerous cultures will never be able to gov- ern themselves democratically. The mentalities of chattel, control, traditions, retribution, retaliation and serfdom are a few of the cul- turally ingrained behaviors that keep people from being able to live under a democracy. So, this nation needs to step aside and let others direct their own destiny, stop supporting — financially or militarily — one side or the other, and let each nation stay as it is or change as it wishes. Marilyn Henry Canton Township Soda industry: We, too, fight against obesity

Editor: In light of your Aug. 12 Healthy Heroes feature (“ ‘Say No’ campaign against obesity catches on,” Page 11), please note that the Michigan soft drink industry has taken a leadership role in efforts to combat obesity: Ⅲ Model school beverage guidelines developed by the Alliance for a Healthier Generation were im- Start saving today visit: plemented by our companies in dteenergy.com/interactivebusiness schools (2007-10), statewide and nationwide. The total number of calo- ries we deliver to schools has been reduced by 90 percent since 2004. DBpageAD_DBpageAD.qxd 9/4/2013 11:35 AM Page 1

WHAT’S YOUR FACTOR?

WE SOLVE FOR X Your X factor sets your business apart. Our X factor - the time, understanding and creativity we bring to each relationship - sets us apart. Visit theprivatebank.com or call 248.644.2301 to ﬁnd out how we can solve for X for you. 20130909-NEWS--0011-NAT-CCI-CD_-- 9/6/2013 11:10 AM Page 1

September 9, 2013 CRAIN’S DETROIT BUSINESS Page 11

PUBLISHER’S NOTEBOOK

Contact Mary Kramer at mkramer @crain.com. CRAIN’S MICHIGAN BUSINESS Mary Kramer Hospital mergers raise key questions You’ve munched what Detroit has its “big three” auto companies. they make. You just don’t Will Michigan have a big three of hospitals? Or maybe a big five? Like many industries, health care know it. And this Grand — especially hospitals — is consolidating. New federal health regulations are driving some of it. Rapids maker of baked But will patients — and employers who provide health care benefits — see any big advantages in the wave of goods and snacks is hospital consolidations sweeping the state? just fine with that Or do gains in market share mean only that hospitals will use their clout to get higher payments from insurers? Those are some questions that could arise during these mergers. Another question: What do more for- profit hospital companies in Michigan mean for patients and You don’t communities? There has been a lot of M&A activity. In May, Spectrum Health in Grand Rapids announced it would acquire Memorial Medical Center in Ludington — a deal approved by know Cracker Memorial Medical’s board Friday. It earlier had acquired three smaller hospitals, but deals to acquire others in northern Michigan fell through. McLaren Health Care scooped up hospitals in Petoskey and Cheboygan. Jack about And the University of Michigan Health System has new deals with PHOTO COURTESY OF FRITO-LAY NORTH AMERICA smaller hospitals and medical practices all over the state. Michigan has a stagnant, some would say declining, population. So everyone is after the same thing: market share and patient referrals Roskam that help produce growth and financial strength. BY MATTHEW GRYCZAN plant as part of a $60.5 million upgrade. Last week, I had the chance to CRAIN’S MICHIGAN BUSINESS Roskam Baking’s factory on 29th SNACK CITY U.S.A. speak with members of the health Street still has the name “Great Lakes care section of the State Bar of est Michigan truckers and con- Mazda Parts Distribution Center” on Contract manufacturers in the Grand Michigan, who met in Detroit. The tractors offer this tip if you’re the building and front sign even though Rapids area churn out billions of cereal and snack food bars and other well- question came: How do CEOs view the paying a call on the Roskam Bak- that business closed 13 years ago. The trend toward hospital consolidation? known munchies for companies such as ing Co. in metro Grand Rapids: baker also kept the logo of Cutler Sports General Mills, Kellogg, Quaker Oats and Depends if they are trustees of a W Apparel on a plant on Oak Industrial Frito-Lay, giving the region crunch cred to Take a map. hospital system, I guess. As trustees, Drive after Cutler closed its operations claim that it is a national center for they look out for the best interests of Not only does the area’s largest com- here in 1995. snacking, Page 14 the hospital systems they serve. Is The name game highlights two facts that the same as looking out for the mercial baker keep its name off its build- about Roskam Baking: its penchant for acted as a magnet to draw the nation’s best interests of the communities — ings, it also won’t bother for years to obscurity and its knack for breathing or even the employers and patients take down the signs of the former own- largest contract baker and a worldwide picking up the tab? ers. new life into vacant buildings in metro leader in food ingredients and flavors to Grand Rapids by entering new business The other trend: For-profit, investor- Case in point is Roskam’s hulking the region by selling plants it had grown owned companies are buying more plant on Broadmoor Avenue in Kent- sectors, then selling portions of the com- organically. hospitals in Michigan. Vanguard wood that doesn’t give a clue to motorists pany to fund new endeavors. Roskam’s close relationship with Health Systems purchased the driving along the thoroughfare that it op- Probably no other corporation has Columbian Logistics Network in Grand Detroit Medical Center in 2011 and erates there. A sign at the main offices at done more to put metro Grand Rapids on Rapids has helped forge a sophisticated is now selling to another for-profit the west side of the plant prominently the map as Snack City U.S.A. than supply chain for the precise movement company, Tenet Healthcare. states “Steelcase — Computer Furniture Roskam Baking, founded by Marinus and storage of foodstuffs on which other Meanwhile, a for-profit hospital Division.” and Clara Roskam as a commercial bak- local food processors now piggyback. company affiliated with Duke Roskam Baking and an affiliate ery of pies, doughnuts and specialty Documents ranging from kosher food University is picking up three bought the plant more than four years breads. (See story, Page 14.) certifications to product recall announce- hospitals in the Upper Peninsula. ments indicate that Roskam Baking has ago, county property records indicate. Not only do Roskam and its affiliates One thing is certain: The health or now serves the largest food processing Last month, its parking lot was have an estimated 1.2 million square feet care landscape in Michigan is companies on the planet, including Battle crammed with new Rademaker baking of manufacturing space and offices at changing — for better Creek-based Kellogg Co., Minneapolis- equipment and scissor lifts that con- more than nine locations throughout or worse. struction crews are using to improve the metro Grand Rapids, but Roskam also See Roskam, Page 12 20130909-NEWS--0012-NAT-CCI-CD_-- 9/6/2013 10:43 AM Page 1

Page 12 CRAIN’S DETROIT BUSINESS September 9, 2013 CRAIN’S MICHIGAN BUSINESS

Reliable, modernized grid

Energy is essential to the way we live, work and play. PHOTO COURTESY OF ROSKAM BAKING Decades ago, Roskam Baking trucks delivering Holsum breads traveled the streets of Grand Rapids while boasting prosaic mottos such as “If you had a ITC operates, builds and maintains the region’s electric million dollars, you couldn’t buy better bread.” transmission infrastructure. We’re a Michigan-based company working hard to improve electric reliability and increase electric Roskam: Publicity-shy transmission capacity throughout the Midwest. baker cooks low profile ■ From Page 11

based General Mills Inc., Chicago- court or a business associate. based Quaker Oats Co. and Plano, When Hearthside Food Solutions Inc. www.itctransco.com Texas-based Frito-Lay North America. in Downers Grove, Ill., launched But Roskam officials remain mum its grand strategy to become the on their customers and the prod- nation’s largest contract snack ucts that the company makes. food maker by first purchasing four Roskam plants in 2009, Hearthside issued Remaining news releases, invisible hosted plant tours We do not share for media and in- None of “ stalled prominent Roskam’s 18 prop- publicly lists of our signs. Roskam erties listed in said little. Kent County tax customers to assure When asked records bear the about the extraor- Roskam name — the focus remains dinary lengths including its cor- that Roskam Bak- porate headquar- on the brands and ing takes to main- ters in Cascade products they are tain its low pro- Township. Noth- file, Cameron ing marks the out- investing in and Roskam respond- side of the build- ed that the compa- ing except for a promoting in the ny “is committed prominent stone to serving our fish and a bear marketplace. customers and fashioned from supporting their river rock. ” Cameron Roskam growth through However, some- our production one peering into and innovation. the lobby last month would have We do not share publicly lists of found three immediate clues that our customers to assure the focus this is Roskam: a vintage Roskam remains on the brands and prod- fresh-bread tray, a display bearing ucts they are investing in and pro- samples of its Rothbury Farms moting in the marketplace.” croutons and an old-time Cracker The company says it has about Jack pushcart. Roskam has made 1,000 employees. Cracker Jack, a product of Frito- Lay, in Grand Rapids for years. No news release was issued The big-name years when Cameron Owen Roskam, 36, A veil of secrecy didn’t always became the fourth generation of surround Roskam Baking, which Roskams to take the reins of the started in Kalamazoo and was company as president — in this once a well-known name in West case, from his father, Robert Owen Michigan connected with bread Roskam, 63. and other baked goods. There wasn’t any hoopla in 2008 A veteran of World War I, Mari- when Roskam Baking/Rothbury nus Roskam brought a new mean- Farms launched an entire line of ing to the word “doughboy.” He en- specialty baked breads under the tered the baking business with his Grandpa’s Oven brand, named in brother Arie when the two estab- homage to Donald O. Roskam and lished a Dawn Donuts shop and gro- sold exclusively through Wal-Mart cery business in Kalamazoo by stores. 1925. Within two years, Marinus; When news filters out about his wife, Clara; and Arie had moved Roskam Baking, the source is usu- to Grand Rapids and acquired the ally from a government agency, a See Next Page 20130909-NEWS--0013-NAT-CCI-CD_-- 9/6/2013 10:44 AM Page 1

September 9, 2013 CRAIN’S DETROIT BUSINESS Page 13 CRAIN’S MICHIGAN BUSINESS

From Previous Page ceeds being reinvested in areas of new growth,” Cameron Roskam Miner Pie Co. — which made meat said in written responses to ques- pies like those that today through- tions posed by Crain’s. out Michigan are called pasties, along with doughnuts, fruit pies It’s clear that Roskam Baking is and other baked goods. pouring resources into its 666,000- square-foot Broadmoor Avenue As a teenager, Marinus’ son, Donald Owen Roskam, made pies plant, with the state and city of and acted as a delivery boy for the Kentwood granting tax abate- fledgling business. By the time he ments with the expectation that a was 44, Donald Roskam was total of 1,500 people will be hired. named president of the growing “As a fourth-generation presi- bakery business, which advertised dent of Roskam Baking, I am mak- rolls and breads under prosaic ing every effort to lead the compa- mottos such as “Roskam’s: It pays ny and our dedicated employees to eat the best” and “If you had a into new ventures with a premier million dollars, you couldn’t buy list of customers,” Cameron better bread.” Roskam said in the statement. “An By 1960, Donald Roskam had es- example of this commitment is evi- tablished routes to deliver fresh denced by the investment of $62 bread to grocery stores in West million in new processes for Michigan and Lansing, and the Roskam Baking’s operations in company used public relations to Grand Rapids.” raise its profile. Newspapers ran Given Roskam Baking’s track photos of Donald Roskam taking record for buying vacant plants bread off a baking line or giving au- and filling them with equipment thentic reproductions of the Decla- and people, its president was ration of Independence to local or- asked what the company intends ganizations because he valued the to do with a closed factory on Edna principles espoused in the docu- Street in Grand Rapids that it ment. bought in 2006 from Interstate It wasn’t uncommon for resi- Brands. The 60,000-square-foot dents of metro Grand Rapids to see plant — bearing in large blue let- bright red trucks delivering Hol- ters “Butternut Bread” — has fall- sum breads with the “Roskam’s is PHOTO COURTESY OF GRAND RAPIDS HISTORY & SPECIAL COLLECTIONS, GRAND RAPIDS PUBLIC LIBRARY en on hard times, with a few bro- good bread” tagline plastered on When he ran Roskam Baking, Donald Roskam helped raise the profile of his growing company through publicity such as ken windows, some overgrown their sides. And it wasn’t unusual this newspaper photograph showing him holding loaves of bread from the baking line at his Grand Rapids plant. weeds and crumbling steps. to see the company advertise in Cameron Roskam had no com- everything from the daily newspa- Brands to fund other ventures, in provides flavorings and ingredi- Food Solutions, including the Oak ment. pers to high school yearbooks. 2002 Roskam Baking sold a plant ents to food-processing companies Industrial Drive plant formerly on 52nd Street in Kentwood as part worldwide. A few years later, known as Cutler Sports Apparel. But by the late 1960s, Roskam Matthew Gryczan: (616) 916-8158, of its cereal and granola business Roskam Baking sold four plants in “Portions of the business have Baking appeared to eschew its [email protected]. Twitter: to Kerry Inc., an Irish company that metro Grand Rapids to Hearthside been sold over time, with the pro- public persona, and the red trucks @mattgryczan stopped running after the company exited the bread business en- tirely. The company was indicted by the federal government, along with a number of other smaller independent bakers and a few large multistate companies, on charges of fixing the prices of breads, buns and rolls in Michigan from 1964 to 1966. According to news reports, Roskam Baking and other baking companies and their officers pleaded no contest to the bid-rig- ging charges, and the case was set- That’s our commitment to you. tled in 1969. In 1972, the company went full From traditional tax and accounting services to lean bore into the production at its But- terworth Avenue plant in Grand manufacturing design, Rehmann has the seasoned Rapids of baked croutons for the wisdom and industry experience essential to deliver restaurant business under con- focused solutions. tract and into doing a private label business as Rothbury Farms Inc. The Our commitment to excellence shows: In a recent next year, Roskam Baking sold its survey, we achieved a 98 percent overall satisfaction wholesale bread operations to In- terstate Brands Corp. and became a rating from our manufacturing clients. leading producer of dry, wheat- Contact me today to learn more. based products such as croutons, stuffing, bread crumbs, caramel corn and garlic bread. The 1980s and 1990s became the snack-attack years for Roskam Baking. After earning his degree in bakery science from Kansas State University and gaining experience at other baking companies, Garrett Klein, CPA, CGMA Robert Roskam took over as presi- Principal | Manufacturing Group Leader dent of the business by 1985 and 248.614.6436 oversaw development of its fast- growing sector of granola, snack [email protected] and cereal bars, snack mixes and prepared breakfast cereals. A fire in 1996 destroyed the But- terworth Avenue factory that made croutons, but the plant was 21 locations in Michigan, Ohio, Florida and Indiana rebuilt on the same site and operates today under the name Ad- rehmann.com | 866.799.9580 vanced Food Technologies. Similar to the way it sold its bread business to Interstate 20130909-NEWS--0014,0015,0016-NAT-CCI-CD_-- 9/6/2013 11:08 AM Page 1

Page 14 CRAIN’S DETROIT BUSINESS September 9, 2013 CRAIN’S MICHIGAN BUSINESS 60$//2)),&(Ř+20(2)),&( Outstanding Selection For Small Professional Ofﬁce or Home Ofﬁce  Free Design Assistance  Customization - Flour power: Grand Rapids a Sizes & Finishes  Professional Installation  Contemporary or Traditional BY MATTHEW GRYCZAN CRAIN’S MICHIGAN BUSINESS FEATURING Although it recently won an hon- orary title as Beer City U.S.A. from an online straw poll, metro Grand Rapids should be known by another nickname: Snack City U.S.A. The Grand Rapids area churns out billions of cereal and snack food bars a year, along with products such as Cracker Jack, Bear Naked granola, Pop-Tarts, Rice Krispies Treats, Multi Grain Cheerios Peanut Butter cereal, Kashi brand granola and nut bars, Ralston 6287+),(/'ō752< snack mixes and confections under 129,ō/$.(6,'( *5$1'5$3,'6 The Hershey Co. brand, such as Zag- www.gormans.com nut, Reese’s Crispy Crunchy, Mr. SPBT0404 Goodbar and Cookies ’n’ Crème. Given the size and number of local contract manufacturers that pump out products for General Mills Inc., Kellogg Co., Quaker Oats Co., LAST CHANCE TO Frito-Lay North America and others, the region has enough credibility FASTEST Learn secrets from the to claim that it is a national center GROWING COMPANIES region’s fastest-growing for the production of snack foods and cereal bars. PHOTO COURTESY OF HEARTHSIDE FOOD SOLUTIONS TITLE SPONSOR companies Hearthside Food Solutions Inc., Hearthside Food Solutions has five plants in metro Grand Rapids. Two production Roskam Baking Co. and Kerry Inc. lines alone in Grand Rapids produce more than 2.5 billion food bars a year. The Colony Club, aren’t household names to snack SEPT. 11 Detroit • 5 – 9 p.m. food junkies, and the companies contractual and competitive rea- only and rarely show locations of like it that way. They are loath to sons. Food companies themselves manufacture. name the products they manufac- are tight-lipped about where prod- But it’s hard to miss the drum- To register, please CALL 313.446.0300 ture on behalf of the world’s ucts are made. Snack wrappers of- beat of snack food processing in largest food companies for both ten bear “Distributed by” names metro Grand Rapids, as one-ton totes of cereal and trainloads of flour arrive and convoys of trucks depart regularly with packaged foods to distribution centers across the Midwest and Northeast. Behind a lot of the growth is a ris- Tax & Financial Controversy Experience ing demand for food bars, which have become a daily part of the American diet. ® The market research company In Your Corner. Packaged Facts estimates that the combined market for cereal/granola bars and energy/nutrition ■ Former Senior Trial Attorney for the District bars will be $6.8 billion this year, up nearly 9 percent over last year. Counsel of the IRS and Special Assistant U.S. It’s only fitting that Hearthside Attorney for the U. S. Department of Justice Food Solutions, the nation’s largest ■ Tax and fi nancial controversy (IRS and various independent baker and largest con- States), civil and criminal tax litigation tract food manufacturer, would have five plants in metro Grand ■ Listed in Michigan Super Lawyers Top 100, Rapids and would mark the area as its point of origin. The Downers named in The Best Lawyers in America for Grove, Ill.-based company was Tax Litigation and Controversy launched in 2009 with the purchase of four plants from Cascade Town- ship-based Roskam Baking. Hearthside continued to grow through further acquisitions to the point that it now employs nearly 10,000 people at 20 factories with CELEBRATING expected sales of more than $1 billion this year. 12 YEARS Roskam Baking itself is a heavy- 5 weight in contract food manufacturing even after its divestiture. (See story, Page 11.) With estimated manufacturing and storage capacity of more than 1.2 million square feet, Roskam is Grand Rapids’ largest contract bakery in terms of owned facilities, and the company is in the midst of a $62 million renovation of plants and equipment. First Tier Ranking Through its Keebler Co. sub- in Tax Litigation sidiary, Battle Creek-based Kel- logg’s operates three plants in Eric M. Nemeth Grand Rapids that produce Pop- [email protected] ■ Metro Detroit ■ Grand Rapids ■ Kalamazoo ■ Grand Haven ■ Lansing Tarts, Special K Crisps and other snack products. In 2010, officials announced that the company 20130909-NEWS--0014,0015,0016-NAT-CCI-CD_-- 9/6/2013 11:09 AM Page 2

September 9, 2013 CRAIN’S DETROIT BUSINESS Page 15 CRAIN’S MICHIGAN BUSINESS s area gains reputation as snack food center

would spend $18 million to relo- term contract warehousing, where ness,” said Blair solutely grown because of the in- glass can look both ways. The CEO cate a baked-bar production line customers transport bulk goods to Thomas, Col- crease in food processing in metro of Hearthside Food Solutions trav- from Indiana to Grand Rapids. their own factories, to arrange- umbian’s direc- Grand Rapids,” Thomas said. eled from suburban Chicago and In that same year, Omaha, Neb.- ments where Columbian employ- tor of customer stayed in the city during the week based ConAgra Foods Inc. an- ees move items between docks on care. And cars to bars for nearly 18 months while work- nounced its purchase of Elan Nutri- the customer’s premises. With about ing on the acquisition of plants tion, a cereal and nutrition bar Not only does Columbian Logis- 260 full-time em- Just why Grand Rapids has be- from Roskam. manufacturer founded by George ployees, Colum- come a snack food capital appears tics need to keep hourly inventory “We have invested well over $20 and Rick Manus, two brothers bian Logistics to be the confluence of both good million after the acquisitions, and from the Rockford area near Grand of all these items, but commodities expects to post and bad fortune, depending on we have some of our most advanced Rapids. ConAgra said it intends to such as sugar stored for one cus- Thomas about $35 mil- how you view the half-glass of wa- facilities there,” Scalise said. spend $73 million on new equip- tomer can’t be used by another. lion in revenue this year, up from ter. ment, to relocate an R&D lab and to “That’s a huge no-no in our busi- $29 million in 2010. “We’ve ab- Rich Scalise knows how the See Snack, Page 16 improve efficiencies on production lines that manufacture nutrition and cereal bars. Kerry, an Irish provider of flavorings and food ingredients, operates a 115,000-square-foot plant in Grand Rapids that is based on a cereal ag- glomerates business it bought from Roskam Baking in 2002. In addition, Kerry recently opened a warehousing operation nearby. Flour to power bars There’s no doubt that Grand Rapids’ easy access to grain, flour and other bulk food commodities from America’s breadbasket has helped the industry flourish there. Gleaming white Bulkmatic rail cars often line the Hughart Yard in downtown Grand Rapids, bearing flour that will be transferred pneu- matically into trucks that shuttle the loads to the on-site silos of commercial bakeries and snack food plants throughout Grand Rapids. The flour is brought north from In- diana on the 150-mile-long Grand Elk Railroad, formed in 2009 to transport agricultural products, aggregates and other heavy commodities to West Michigan. Nearly all of the major snack food processors in metro Grand Rapids get at least some of their flour by truck from one of the last six flour mills in the state — King Milling Co. in Lowell, now undergo- ing an $11 million expansion to expand capacity to well over 1 million pounds of flour a day. Probably no other company represents the transportation and storage expertise for snack foods better than Grand Rapids-based When the goal is not riches, but to live richly. Columbian Logistics Network, which carries the distinction of process- For the sake of discussion, let’s say wealth is a relative term. To some, it could mean having an eight digit portfolio. ing every cigarette sold in Michi- gan through its Hall Street plant. To others, it might mean having friends, family and good health. To others still, it could be the ability to do and Although it deals with commodi- have what is most rewarding. Whatever the definition, and regardless of whether wealth is a means or an end, those ties that range from chewing gum to car parts, Columbian Logistics who have it also have goals that shape their decisions. particularly shines when the talk turns to batter mixes, one-ton totes That’s why clients of Greenleaf Trust benefit greatly from our goals-based wealth management approach. of Cheerios and pungent spices Thoughtful and holistic in its methodology, goals-based planning ensures clear-minded focus on managing your used for baked food snacks. During the past decade, wealth so that you achieve the things in life that are most important and Columbian Logistics has built up a meaningful. Through reliable benchmarks, we measure progress in meeting network of five warehouses in the southeast quadrant of metro your goals, instead of narrowly measuring performance against any one Grand Rapids that buzz daily with financial index. And at every step of the way, our client-centric team model the activity of contract food manufacturing. Racks two stories high puts your well being at the center of every decision, giving you peace of mind. store doughnut batter, sugar, salt, cereals, spices and other dried To learn more about Greenleaf Trust, and how goals-based wealth management commodities. But they also store Financial Security from Generation to Generation individually packaged foods for can help you live a life well spent, call us. Roskam, Hearthside and other snack food processors. Columbian Logistics, which was established in 1892, formed its 34977 woodward avenue, suite 200 birmingham, mi 48009 www.greenleaftrust.com 248.530.6202 877.530.0555 Sprinter Services Inc. business unit to supply everything from long- 20130909-NEWS--0016-NAT-CCI-CD_-- 9/6/2013 11:06 AM Page 1

Page 16 CRAIN’S DETROIT BUSINESS September 9, 2013 CRAIN’S MICHIGAN BUSINESS Snack: Grand Rapids gains tasty reputation for treat making ■ From Page 15 One reason that the area was at- Scalise said 70 also represents workers at Kee- tractive is that “candidly, the auto- Hearthside Food bler and Kerry. For all the motive business took a downturn,” Solutions has a Scalise’s strategy doesn’t hinge automation that he said. “We really did benefit in “great working on being the low-cost producer of Hearthside Food terms of getting quality managers relationship” snack foods by paying the lowest Solutions and quality hourly associates who with Local 70 of wages. “We’ve measured our employs, CEO understood what needs to be done the Bakery, Con- wages and health care plans Rich Scalise says to become competitive.” fectionery, Tobac- against some of the bigger compa- the company uses nies,” he said, “and we usually probably half the Many employees are steeped in co Workers and come out about on top.” amount of lean manufacturing techniques. Grain Millers In- automation that The company has customized Scalise ternational Union, Rather, his strategy centers on leveraging the area’s skilled work- its customers use those as its Hearthside Perfor- which represents workers in four — and that is force, using its favorable locations mance System, which emphasizes plants, “because they get what we crucial to its for bulk commodities and distribu- do. We have to be competitive or flexibility. how those manufacturing theories tion points to the Midwest and we won’t have a business.” Local PHOTO COURTESY OF HEARTHSIDE FOOD SOLUTIONS apply to food processing. Northeast markets and melding its decades-old experience in cereal processing with snack food applications to be “fast, flexible and value-adding.” The Hearthside plants are a marvel in modern manufacturing: Two production lines alone in Grand Rapids produce more than 2.5 billion food bars. Its factories are collections of K-Tron transfer bins to hold dry cereal, Bepex slab formers to make bars, Woody Stringers for icings and a whole host of sifters, mixers, ovens, cut- ters, wrapping and packaging equipment, often tied together with computers. The company has research and development labs for new food items and even makes its own spe- cialized equipment. Yet Hearthside uses probably half the amount of automation that its customers use, Scalise said, and that is key to its flexibility. Supporting all of this production is Grand Rapids’ fortunate location for distribution. “That whole area around Grand Rapids is really sort of a distribution mecca for food production,” Scalise said. “A lot of products will flow between Michigan and Indi- ana and Ohio for disbursement throughout the Midwest and the You Make It Northeast.” Look E Thomas at Columbian Logistics asy concurs. Metro Grand Rapids appears to have achieved the critical mass of attracting and retaining people experienced in snack food manufacturing, quality and safety. And Those around you marvel at the manufacturing their skills are now harnessed by smaller startups — similar to the business you’ve built. way that three of the world’s largest office furniture manufac- But from the cockpit, the view’s vastly different. A turers in the area spawned a host dashboard lit with production inefficiencies. Extreme of startups. pressure to balance costs and cash flow. Risk as you Equipment operators and managers who once worked for the rely on your pilots to fly in high-speed formation toward large snack food makers now can growth objectives. Ultimately, it is you who must steer the be found at smaller companies business to a perfect landing. such as Festida Foods Inc., which opened a 155,000-square-foot plant in Grand Rapids last year that Like trusted copilots, Doeren Mayhew helps manufacturers manufactures On The Border and like you navigate through price fluctuations, raw material MexAmerica tortilla chips, among shortages, labor issues, profit-draining waste and other snack foods. That intangible — a pool of peo- competitive challenges. So, when you’re ready to take off ple with deep experience in a par- again, we can help you achieve your mission with precision. ticular industry — bodes well for Snack City U.S.A. “In the end for us, we have no brands,” Scalise said. “Our business is really focused on our peo- Insight. Oversight. Foresight.SM ple, and if they can do well and our customers see that, then we enjoy 248.244.3000 | doeren.com more business.” Matthew Gryczan: (616) 916-8158, [email protected]. Twitter: @mattgryczan 20130909-NEWS--0017-NAT-CCI-CD_-- 9/5/2013 4:20 PM Page 1

September 9, 2013 CRAIN’S DETROIT BUSINESS Page 17 CRAIN’S MICHIGAN BUSINESS CRAIN'S LIST: LARGEST MICHIGAN MANUFACTURERS Ranked by 2012 revenue

Employees Company Revenue Jan. 2013 Address ($000,000) Revenue % Michigan/ Number of plants Rank Phone; website Top executive(s) 2012/2011 change worldwide in Michigan Michigan plant locations Clients/industries served General Motors Co. Daniel Akerson $152,256.0/ 1.3% 41,379/ 13 Bay City, Detroit/Hamtramck, Grand Rapids, Automotive 1. 300 Renaissance Center, Detroit 48265 chairman and CEO $150,276.0 213,000 Lansing, Livonia, Milford, Orion, Pontiac, (313) 556-5000; www.gm.com Romulus, Saginaw, Swartz Creek, Warren, Ypsilanti Ford Motor Co. Alan Mulally 134,252.0/ -1.5 NA/ 8 Dearborn, Flat Rock, Wayne, Woodhaven, Automotive 2. 1 American Road, Dearborn 48126 president and CEO 136,264.0 175,000 Romeo, Sterling Heights, Livonia, Ypsilanti (313) 322-3000; www.ford.com Chrysler Group LLC Sergio Marchionne 65,784.0/ 19.6 27,296/ 10 Detroit (4), Sterling Heights (2), Trenton, Automotive 3. 1000 Chrysler Drive, Auburn Hills 48326-2766 chairman and CEO 54,981.0 66,223 Warren (2), Dundee (248) 576-5741; www.chryslergroupllc.com The Dow Chemical Co. Andrew Liveris 56,786.0/ -5.3 NA/ 2 Harbor Beach, Hillsdale Automotive, agriculture, home care, 4. 2030 Dow Center, Midland 48674 president, chairman and 59,985.0 54,000 health care, construction (989) 636-1000; www.dow.com CEO Johnson Controls - Automotive Beda Bolzenius 21,334.0/ 6.3 10,000/ 11 Battle Creek, Detroit, Grand Rapids, Automotive vice president and president, 20,065.0 170,000 Highland Park, Holland, Lansing, Monroe, Experience automotive seating Port Huron, Romulus, Warren, Plymouth 49200 Halyard Drive, Plymouth 48170 William Jackson 5. (734) 254-5000; www.johnsoncontrols.com vice president, operations and innovation and president, automotive electronics and interiors Whirlpool Corp. Jeff Fettig 18,143.0/ -2.8 NA/ 0 NA Household appliances 6. 2000 North M-63, Benton Harbor 49022 chairman and CEO 18,666.0 68,000 (269) 923-5000; whirlpool.com TRW Automotive Holdings Corp. John Plant 16,444.0/ 1.2 3,385/ 5 Fenton, Fowlerville, Portland, Saginaw, Automotive 7. 12001 Tech Center Drive, Livonia 48150 chairman, president and 16,244.0 65,000 Sterling Heights (734) 855-2600; www.trwauto.com CEO Delphi Automotive plc Rodney O'Neal 15,519.0/ -3.3 1,485/ 0 NA Automotive 8. 5725 Delphi Drive, Troy 48098 president and CEO 16,041.0 117,500 (248) 813-2000; www.delphi.com Lear Corp. Matthew Simoncini 14,567.0/ 2.9 3,022/ 9 Traverse City, Roscommon, Farwell, Mason, Automotive 9. 21557 Telegraph Road, Southfield 48033 president and CEO 14,156.5 113,400 Rochester Hills, Detroit (2), Taylor, (248) 447-1500; www.lear.com Brownstown Kellogg Co. John Bryant 14,197.0/ 7.6 NA/ 3 Battle Creek, Grand Rapids, Wyoming Food products 10. 1 Kellogg Square, Battle Creek 49016 president and CEO 13,198.0 31,000 (269) 961-2000; www.kelloggcompany.com Continental Automotive Systems U.S. Samir Salman 10,734.8 B/ 22.0 NA/ 5 Auburn Hills, Brimley, Dearborn, Rochester Automotive OEM CEO, Continental North 8,800.0 B NA Hills, Troy 11. Inc. America 1 Continental Drive, Auburn Hills 48326 (248) 393-5300; www.conti-online.com Robert Bosch LLC Mike Mansuetti 10,600.0/ 8.2 2,710/ 4 St. Joseph, Kentwood, Bridgeport, Buchanan Automotive, industrial, construction 12. 38000 Hills Tech Drive, Farmington Hills 48331 president 9,800.0 306,000 goods, building technology (248) 876-1000; www.boschusa.com Stryker Corp. Kevin Lobo 8,657.0/ 4.2 2,700/ 2 Kalamazoo, Portage Health care 13. 2825 Airview Blvd., Kalamazoo 49002 president and CEO 8,307.0 22,000 (269) 385-2600; www.stryker.com Masco Corp. Richard Manoogian 7,745.0/ 3.7 NA/ 6 Ann Arbor, Adrian, Novi, Brownstown, Home improvement, construction 14. 21001 Van Born Road, Taylor 48180 chairman 7,467.0 30,000 Lapeer, Taylor (313) 274-7400; www.masco.com BorgWarner Inc. James Verrier 7,183.2/ 1.0 NA/ 3 Cadillac, Livonia, Marshall Automotive tier-one supplier 15. 3850 Hamlin Road, Auburn Hills 48326 president and CEO 7,114.7 19,100 (248) 754-9200; www.borgwarner.com Visteon Corp. Timothy Leuliette 6,857.0/ -9.0 830/ 1 Warren Automotive 16. 1 Village Center Drive, Van Buren Township president and CEO 7,532.0 22,000 48111 (734) 710-5000; www.visteon.com Denso International America Inc. Hikaru "Howard" Sugi 6,800.0/ 9.7 NA/ 1 Battle Creek Automotive 17. 24777 Denso Drive, Southfield 48033 president and CEO 6,200.0 NA (248) 350-7500; www.densocorp-na.com Federal-Mogul Corp. Rainer Jueckstock 6,664.0/ -3.6 1,493/ 2 Greenville, Sparta Automotive, commercial, aerospace, 26555 Northwestern Highway, Southfield 48033 co-CEO, Federal-Mogul; and 6,910.0 45,000 marine, rail and off-road vehicles; and (248) 354-7700; www.federalmogul.com CEO, powertrain segment industrial, agricultural and power- 18. Kevin Freeland generation equipment co-CEO, Federal-Mogul; and CEO, vehicle components segment Dow Corning Corp. Robert Hansen 6,120.0/ -4.8 4,600/ 5 Auburn, Freeland, Hemlock Semiconductor - Electronics, construction, automotive, 19. 2200 W. Salzburg Road, Midland 48686 president and CEO 6,430.0 12,000 Hemlock (2), Midland energy, personal care (989) 496-4000; www.dowcorning.com Faurecia North America Michael Heneka 6,000.0/ 25.0 4,200/ 7 Fraser (2), Lansing, Saline, Sterling Heights Automotive 20. 2500 Executive Hills Blvd., Auburn Hills 48326 president, North America 4,800.0 94,000 (2), Taylor (248) 409-3500; www.faurecia.com Guardian Industries Corp. Ron Vaupel 5,600.0 C/ 12.0 NA/ 2 Albion, Carleton Automotive, home, lighting, electronics, 21. 2300 Harmon Road, Auburn Hills 48326-1714 president and CEO 5,000.0 B NA construction (248) 340-1800; www.guardian.com General Dynamics Land Systems Gary Whited 4,924.0 B/ 0.2 2,115/ 0 NA Military 22. 38500 Mound Road, Sterling Heights 48310 president 4,912.0 B 8,721 (586) 825-4000; www.gdls.com International Automotive Components James Kamsickas 4,700.0/ 6.8 2,579/ 5 Alma, Mendon, Port Huron, St. Clair, Warren Automotive 23. (IAC) president and CEO 4,400.0 24,000 28333 Telegraph Road, Southfield 48034 (248) 455-7000; www.iacgroup.com Meritor Inc. Ike Evans 4,418.0/ -4.4 797/ 0 NA Automotive 24. 2135 W. Maple Road, Troy 48084 chairman, president and 4,622.0 9,039 (248) 435-1000; www.meritor.com CEO Aisin World Corp. of America Masayasu "Mike" Saito 4,247.0/ 23.7 646/ 1 Plymouth Automotive 25. 46501 Commerce Center Drive, Plymouth 48170 president and CEO 3,432.0 83,378 (734) 453-5551; www.aisinworld.com

This list of manufacturing companies is an approximate compilation of the largest such companies in Michigan. It is not a complete listing but the most comprehensive available. Crain's estimates are based on industry analyses and benchmarks, news reports and a wide range of other sources. Unless otherwise noted, information was provided by the companies. Companies with headquarters elsewhere are listed with the address and top executive of their main Michigan office. Actual revenue figures may vary. NA = not available. B Crain's estimate. C Forbes estimate, as of Nov. 2012. LIST RESEARCHED BY BRIANNA REILLY 20130909-NEWS--0018-NAT-CCI-CD_-- 9/5/2013 5:16 PM Page 1

Page 18 CRAIN’S DETROIT BUSINESS September 9, 2013 CRAIN’S MICHIGAN BUSINESS House bill would reverse recent Kyle Sasena, VP, International Banking Specialist Fred Fordon, SVP, Commercial Banking Manager The Entrepreneurial Bank. changes to charitable gaming rules

BY SHERRI WELCH to participate in charitable gaming guidelines for the so-called mil- CRAIN’S DETROIT BUSINESS without facing unnecessary bu- lionaire parties: Level One Bank makes international reaucratic red tape.” Ⅲ Would put in place a new mid- State Rep. Jeff Farrington, R-Uti- Farrington said he has been night curfew for the games trade easy. Import and export, safe ca, last week introduced legisla- working with the Michigan Charita- Ⅲ Limit to two the number of tion that would effectively reverse ble Gaming Association for the past charities allowed to host games and eﬃcient. recent changes enacted by the several months on the bill. concurrently at a single site Michigan Gaming Control Board to The association, which repre- Ⅲ Forbid dealers and other Level One, your international bank, the way charitable poker games sents nearly 400 for-profit charity game operators from accepting can operate in the state. poker room owners and charities, game chips as tips and limit the right here at home. Among other changes, Farring- said in early August that it was number of chips in play on a single ton’s House Bill 4960 seeks to allow seeking a legislative sponsor to in- game to $15,000, and Call us. the poker rooms where the charity troduce changes it’s proposing to Ⅲ Forbid remote software on games take place to operate until 2 the Traxler-McCauley-Law-Bowman Bin- computers used in charity poker a.m. and allow five charities to go Act of 1972, which governs charity rooms. Contact Greg Wernette hold an event concurrently at the poker games, among other things. The new guidelines were meant same location. The changes issued by the gam- to address some of the “glaring Entrepreneur and Chief Lending Oﬀicer Farrington said the bill also pro- ing control board July 29, many of concerns” about the fundraisers, 248-737-0300 poses “common sense” licensing which were to take effect on Sept. based on more than 900 site visits, standards, requirements and fees. 1, were put on hold in late August and better equip the gaming con- “Nonprofit organizations can after Ingham County Circuit trol board to monitor the games, use the money from these charita- Judge Clinton Canady signed a Kalm told Crain’s in July. ble gaming events to support many temporary restraining order He cited “an inherent lack of in- great causes across the state,” said against the gaming control board ternal controls” at many of the poker Farrington, chairman of the House and its executive director, Rick games and noted the lack of ade- Tax Policy Committee, in a release. Kalm, to block the set of licensing quate security, proper record-keep- “However, recent rules enacted and regulation updates. ing, proper oversight of the gaming by the Michigan Gaming Control Nineteen nonprofits have operations, illegal noncharitable 32991 Hamilton Court Farmington Hills, MI 48334 levelonebank.com Board have put a heavy burden on brought a lawsuit against the gam- gambling taking place alongside Commercial Banking Retail Banking Mortgage Services organizations and charities oper- ing control board and Kalm, chal- charitable games and other illegal ating these games and have led to a lenging the regulations. They activity spurred by the games. decrease of over 70 percent in au- claimed the updates violate state The Gaming Control Board took thorized licenses. law and mean millions in lost rev- over the issuance of licenses for “Charitable organizations should enue for charitable organizations. the games from the Bureau of State have rules in place that allow them Among other things, the new Lottery last October. 20130909-NEWS--0019-NAT-CCI-CD_-- 9/5/2013 4:59 PM Page 1

September 9, 2013 CRAIN’S DETROIT BUSINESS Page 19

Monthly France WHERE MICHIGAN DOES BUSINESS

rance is the world’s fifth- ed in Esson, Saint Die Amway Co. Crain’s World Watch Month- and Sully-sue-Loire largest economy by its ly showcases Michigan compa- Based: Ada F Employees: 1,100 nominal GDP, reported nies leading the way in inter- Operations: Office in Paris Products: Motors, national business as well as Employees: 5,000 independent at $2.6 trillion in 2012. latches, window regula- those expanding global opera- distributors Its major exports include tors and door modules tions. Products: Nutrilite vitamin, min- machinery and transportation Clients: PSA, Nissan, Each World Watch Monthly eral and dietary supplements; Renault, BMW, Toyota, equipment, autos, plastics, features a different country. If Artistry and BeautyCycle skin Volkswagen, Ford, chemicals and steel. Major im- you know of a Michigan com- care and cosmetics products; Hyundai pany that exports, manufac- Amway home cleaning products ports include machinery and Top executive: tures abroad or has facilities Top executive: Andy Smith, gen- equipment, vehicles, crude oil, Pierre Blanchard, ex- abroad, email Jennette Smith, eral manager aircraft, plastics and chemi- ecutive director of managing editor, at jh- Inteva Products’ tech center in Esson cals. motors and electronics [email protected]. manufacturers Autoliv Inc. The country is working on Clients: Ford Motor Co., Jaguar Land Based: Auburn Hills fiscal consolidation aimed at COMING UP Meritor Inc. Rover Ltd., Peugeot Citroën, BMW AG, bringing its public debt down Kia Motors, Fiat SpA, Mondelez Operations: Office in Paris, tech Ⅲ October: India Based: Troy International Inc., Volvo Car Corp. center in Gournay-en-Bray and and resolving pension short- Ⅲ November: China Operations: Foundry in Vénissiuex seven plants throughout France falls. Investors are expected to Employees: 186 Top executives: Olivier Cam- panello, managing director; Eric Employees: 3,100 watch fiscal policy changes Products: Cast axle housings Products: Airbags, seatbelts, Top executives: Patrick La- Menoret, regional vice steering wheels, micro gas genera- closely to gage long-term planning. A report from Ernst & gardette, site manager; Philippe president tors, passive safety electronics Young also projects short-term job losses as some employers Couppey, managing director Clients: Audi, Bentley, BMW, Cit- seek to increase productivity and profit margins. roën, Fiat, Ford, GM, Mercedes, Mit- subishi, Nissan, Peugeot, Renault, Rolls Royce, Scania, Toyota, Volkswa- England Belgium gen, Volvo Boulogne Luxembourg Top executive: Marc Neyret, managing director, Autoliv France Germany Esson Paris Chrysler Group LLC Nanterre Creutzwald Based: Auburn Hills Lillebonne Operations: France headquarters Rennes Trappes FRANCE in Trappes and parts center in Va- Brognard try Employees: 282 employees, not Switzerland including network of dealers Nazelles Metaldyne LLC’s development tech center in Lyon Products: Jeep brand products Lyon distributed under Fiat France. In- cludes Wrangler, Wrangler Unlim- Metaldyne LLC TI Automotive Ltd. Italy Based: Plymouth ited, Compass and Grand Chero- Based: Auburn Hills kee vehicles. Operations: Two manufacturing Operations: Plants in Brognard, Top executives: Christophe plans, office building and one re- Châlons en Champagne, Les Bertoncini, France general man- search and development tech cen- Mureaux and Nazelles ager ter in Lyon Employees: 779 Employees: 200 Spain Products: Rubber crankshaft Products: Steel tubing, fuel Compuware Corp. dampers and isolation pulleys pumps and modules, armatures, Products: Sealing and trim sys- Employees: 1,350 Clients: BMW, Renault, Peugeot, level sensors, dosing systems, Based: Detroit tems, fuel and break delivery sys- Products: A range of plastic, ad- Citroen, Ford, Jaguar, Land Rover, VM pump and module kits, pump and Operations: France headquarters tems, fluid transfer systems, ther- hesive chemical, automotive, wa- Motori module validation testing and tub- in Boulogne; satellite location in mal and emissions systems, ter treatment, coatings and con- Top executive: Didier Thierion, ing assembly Sophia anti-vibration systems struction, oil and gas, personal managing director, Metaldyne In- Clients: PSA, Renault, Magna Steyr, Employees: 192 Clients: Continental, Magneti care and agricultural products. ternational France SAS VW, Audi, Bugatto, Bentley, BMW, Products: IT software and ser- Marelli, Tenneco, Delphi, Hutchinson Clients: Large and medium-sized Mini, Mercedes-Benz, Ford, Toyota, vices such as application perfor- Pal, Magna, TRW, Webasto, Yazaki, industrial companies mance management, which helps Nissan, Mitsubishi Motors, Saab, Land Plastic Omnium, Faurecia, Valeo, Top executive: Ramon Melgarejo, MSX International Inc. with identifying and resolving IT Mecaplast, Plastic Omnium, Porsche, Rover, Motor Service, Perkins, Inergy, president and CEO of Dow sub- Based: Warren performance issues; Uniface, a de- Ford Motor Co., Volvo, Geely, Renault, Kautex, TI Automotive, IAM, Renault- sidiaries in France Operations: France headquarters velopment language for apps; Cov- Toyota, Peugeot Citroen Automobile, Nissan, Volvo, Alpine, Sevelnord in Nanterre isint, which connects people Audi, Seat, Skoda, Renault Trucks Top executives: Jan Svec, execu- Employees: About 450 through the cloud; and Change- Federal-Mogul Corp. tive vice president, global pump Top executive: Sylvain Broux, Products: Parts and accessories point, software for professional module systems; Bogdan vice president, France Based: Southfield sales programs, dealer standards services and portfolio manage- Mieszczak, managing director, flu- ment. Compuware also provides Operations: Seven manufactur- and process improvements, train- id carrying systems Europe products and services for develop- Domino’s Pizza Inc. ing plants throughout France; cor- ing, technical support services ing and maintaining mainframes. porate office in Paris and warranty solutions to vehicle — Compiled by Ross Benes Based: Ann Arbor Top executives: Philippe Llorens, Employees: 1,750 general manager EMEA; Operations: 225 pizza delivery Products: Pistons, piston rings Veronique Mondollot, vice presi- and carry-out stores throughout and liners, engine bearings, seal- dent EMEA to APM business unit; France ing and systems protection prod- Veronique Dufour-Thery, regional Employees: About 3,000 ucts, ignition products, friction director south Europe for main- Products: Pizza and side items products frame business unit Top executive: Don Meij, CEO of Top executive: Emmanuel Cou- Domino’s Pizza Enterprises turier, managing director Cooper-Standard Automotive Dow Chemical Co. Inteva Products LLC Based: Novi Operations: Plants in Lillebonne, Based: Midland Based: Troy Rennes, Vitré and Creutzwald Operations: Nine plants through- Operations: Three manufactur- MSX International Inc.’s headquarters in Nanterre Employees: About 1,800 out France ing plants and tech centers locat- DBpageAD_DBpageAD.qxd 8/29/2013 3:09 PM Page 1

WHAT DO OUR PATIENTS TRUST MORE THAN OUR INNOVATIVE SURGERY TECHNIQUES? THE HANDS CONDUCTING THEIR PROCEDURES.

Health care is human again.

Robotic surgery for kidney cancer.

HENRY FORD HOSPITAL Specializing in comprehensive approaches to complex diagnoses.

From groundbreaking research to incisionless surgery, For a second opinion with a Henry Ford Hospital Henry Ford Hospital, the ﬂagship of Henry Ford Health System, doctor, please call 1-800-HENRYFORD or visit is innovating health care in the Motor City, head and hands-on. henryfordhospital.com. 20130909-NEWS--0021-NAT-CCI-CD_-- 9/5/2013 4:49 PM Page 1

September 9, 2013 CRAIN’S DETROIT BUSINESS Page 21

MEDICARE SCARE Home health agencies fear closings, mergers in wake of expected cuts, Page 25

People Hospitals add observation units to reduce

Ⅲ James Rowley, M.D., was appointed chief of medicine for inpatient stays; costs fall, but scrutiny rises DMC Harper University Hospital and Hutzel Women’s Hospital. He previously was medical director of the sleep disorders center at Harper Rowley University Hospital. Ⅲ George Williams, M.D., chairman of ophthalmology at Beaumont Hospital Royal Oak, received the Gertrude Pyron Award from the Retina Research Foundation, which recognizes scientists who expand knowledge on Williams vitreoretinal disease.

Gowans Tsai Ⅲ The following people were named section heads at Beaumont Children’s Hospital in Royal Oak: L. Kate Gowans, M.D., pediatric hematology GLENN TRIEST and oncology; Wan Earl Doucet, administrative director of emergency services at Henry Ford Macomb Hospital, says patients are better served by waiting in Chong Tsai, M.D., observation units rather than the emergency room. pediatric Gebara pulmonology; and Souheil Gebara, M.D., pediatric gastroenterology. Gowans previously worked at the Cleveland Clinic Children’s Hospital department of hematology and oncology. Tsai previously was associate professor at the University of Michigan C.S. Mott’s Claims under the microscope Children’s Hospital. Gebara has been a gastroenterologist at Beaumont since BY JAY GREENE consider as inappropriate claims, said Abby 1995. CRAIN’S DETROIT BUSINESS WHAT IS AN OBSERVATION PATIENT? Pendleton, partner with Southfield-based The Ⅲ Valerie Castle, Health Law Partners PC. M.D., chairwoman of An observation patient is one who meets the he growth of hospital observa- Hospitals are doing a better job at identify- the University of following criteria: ing patients as inpatient or observation and Michigan Health tion units — short patient stays Ⅲ Stabilization and discharge are expected System’s of 48 hours or less — in South- within 24 hours. creating short-stay units to house the patients, Pendleton said. department of T Ⅲ More than six hours of treatment will be east Michigan has been stimu- pediatrics and required. “The problem still is admitting physicians communicable lated the last three years by Medicare Ⅲ still need to document the decisions they diseases, was Clinical diagnosis is unclear and may be and private payer denials of claims for determined in less than 24 hours. make (for both inpatient and observation elected to serve a stays). It is difficult to round all the doctors inpatient admissions. Ⅲ A procedure is underway that requires more two-year term as vice up to get them to document what they need president of Virginia- than six hours of medical observation. Castle Legal and hospital experts say these de- in charts,” she said. based Association nials can lead to revenue losses, payment de- Ⅲ Complications are present from ambulatory of Medical School Pediatric surgery or medical procedures. The Michigan Department of Community lays and, in some cases, higher bills for pa- Health has also appointed a work group to Department Chairs. Ⅲ Symptoms are unchanged at least four tients that can run into the thousands of study hospital reimbursement issues, includ- Ⅲ Kathryn Moseley, dollars for a typical three-day stay. hours after treatment in the emergency department. ing observation stays of Medicaid patients. M.D., co-chair of the A recent article by Modern Healthcare, a Source: McKesson Corp.’s InterQual and Milliman Care Hospital, insurance and state officials are in pediatric ethics sibling publication of Crain’s Detroit committee at Guidelines the work group. Business, said observation bed use increased University of Like most hospital systems, Beaumont Health servation unit claims before reimbursement Michigan C.S. Mott by 40 percent from 2007-2011. Factors in addi- System has been rapidly adding observation Children’s Hospital, tion to insurer scrutiny include a need to free is made at hospitals in 11 states, including units and beds at its three hospitals in Royal was elected to the up inpatient beds, reduce costs and increase Michigan. Oak, Troy and Grosse Pointe to comply with American Medical patient flow. Millions of dollars in denied charges and Medicare and private payer standards for ad- Association Council On top of Medicare and private payer au- thousands of dollars in appeal costs are at missions, said Nick Vitale, Beaumont’s CFO. on Ethical and dits, Medicare last year announced it would stake for hospitals in Michigan when Moseley Judicial Affairs. more carefully scrutinize inpatient and ob- Medicare and private payers deny what they See Microscope, Page 22 20130909-NEWS--0022-NAT-CCI-CD_-- 9/5/2013 4:49 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS September 9, 2013 Health Care Microscope: Hospitals add short-stay units; claims scrutinized ■ From Page 21 “The reason observation is be- years ago. She said Blue Cross tus is under increasing scrutiny,” tients in observation status be- Vitale said. “We have done a good coming such a hot issue is the gov- doesn’t have data to show payment Vitale said. “We are challenged with cause it is providing the right care job in documenting our decisions ernment and other payers are look- denial trends. ensuring that our patients receive at the right level. It also creates in- and locating patients in the appro- ing to reduce the cost of health “We ask attending physicians to the best care in the most appropri- patient capacity for us” when pa- priate areas.” care,” Vitale said. “Typically a hos- make the decision to admit based on ate setting. We are also challenged tients are in observation units in- pital gets paid 10 times more for in- national screening guidelines, in- by the increasing administrative stead of in medical or specialty patient stay than observation stay.” dustry practice and the patient’s burden of public and commercial unit floors, Vitale said. Observation as a tool Costs are much lower for obser- health,” Stojic said. “(Blue Cross) plans having multiple, complex and From 2010 to 2012, Beaumont Hos- Over the past 10 years, Henry Ford vation patients because they mostly does not perform retrospective re- diverse programs in place related to pital in Royal Oak doubled the num- Health System has been working to don’t require the same staffing or views/audits of short-stay inpatient inpatient admissions.” ber of patients classified as obser- reduce inpatient length of stay by technology. Most observation unit admissions for our commercial Pendleton said Medicare re- vation to 14,500 from 7,400, said improving care coordination with- room sizes are about 100 square feet members. We discontinued reviews leased new inpatient payment Leslie Rocher, M.D., the hospital’s in the hospital, said Bob Riney, the with no bathroom as opposed to a of traditional and PPO admissions guidelines last month that she be- physician in chief and senior vice health system’s president and COO. typical non-obstetric private hospi- for site of care several years ago.” lieves will increase the difficulty president of the health system. “Things that once required six tal room of 200 to 300 square feet. For short stays up to 48 hours, for hospitals in classifying a pa- Beaumont Hospital has two ob- or seven nights are now done out- Vitale says Medicare and private Blue Cross pays an hourly rate, tient as an admission. servation units that total 45 beds. patient,” said Riney, adding that payers use nationally published Stojic said. For example, inpatient stays ex- Beaumont recently announced the use of observation beds is an- guidelines — typically InterQual or While two other commercial pay- pected to “last less than two mid- plans to build a new emergency de- other tool to reduce length of stays. Milliman — for determining ers — Health Alliance Plan and Priority nights are generally inappropriate partment, which will include a In 2009, Henry Ford Macomb Hospi- whether a patient should be classi- Health — contacted by Crain’s did for inpatient hospital admission larger observation unit. tal in Clinton Township converted fied as an inpatient admission or ob- not respond to questions about in- and Part A (hospital) payment ab- “From the physician end, it is part of its emergency department servation status. (See box, Page 21.) patient claim denials before dead- sent rare and unusual circum- confusing,” Rocher said of the inpa- to a 20-bed dedicated observation line, hospital executives said pri- stances,” according to Medicare’s tient admission rules. “The doctor unit to complement the ER and de- vate payers also have followed Aug. 2 final rule. knows the patient is sick and needs mand for short-stay patients, said A complicated choice Medicare’s lead. Vitale said Beaumont physicians to be admitted for a day or two. It Earl Doucet, administrative direc- Helen Stojic, director of corpo- “We have seen an increase in in- put extra effort into documenting a becomes a bureaucratic decision. tor of emergency services. rate affairs at Blue Cross Blue Shield patient claim denials based on clear medical reason for an inpa- The payers look at it and pay you at “Most patients (more than 96 of Michigan, said the state’s largest ‘medical necessity criteria’ from all tient admission or for patients who the observation rate. We try to do percent) come to the observation health insurer stopped auditing in- commercial payers,” Vitale said. are designated for observation. the right thing for patients.” unit from the ER,” Doucet said. patient admission validity a few “Inpatient versus outpatient sta- “We have been placing more pa- But Rocher said in the instance “Very rarely do they come from a when Medicare or private payers physician office or back from inpa- deny the inpatient stay and when tient units.” hospitals rebill as an outpatient As many as 20 percent of patients stay, Medicare and some private are flipped from observational sta- payer rules require that hospitals tus to inpatient units because they collect deductibles and copayment have been found to have a more se- amounts from patients. rious medical problem. Under Medicare, hospitals would “Instead of having patients then be required to refund patients stuck in the ER, waiting for test re- for inpatient copays and de- sults, it is better they come into the ductibles, although those refunds observation unit,” Doucet said. could happen years after the admis- With a daily occupancy rate of sion, depending on the timing of the 90-100 percent, Macomb Hospital is denials, Pendleton said. considering expanding the number of observation beds, Doucet said. Average length of stay has in- A Catch-22 creased slightly the past 18 months Not only are physicians some- to 1.04 days from 0.896 days, he said. times perplexed by admission “Last year we had a 15 percent rules, Medicare appears to want it increase in ER visits because of both ways — fewer admissions and population growth in the area and fewer observation stays, said Jes- more older patients” coming in sica Gustafson, a partner with with symptoms of stroke and heart Health Law Partners. attack,” said Doucet, adding that First, Medicare began auditing Macomb Hospital recently was and penalizing hospitals for inap- also designated a level-two trauma propriate inpatient stays to reduce center that added more patients. costs. But when hospitals moved Riney said patient admission de- more patients into observation sta- nials have caused Henry Ford phy- tus to avoid the inpatient denials, sicians to change their criteria. Medicare began denying those “If there is a judgment call, you claims, Gustafson said. start them out as observational In 2010, Medicare sent a letter to case,” Riney said. “Consumers are the American Hospital Association also interested in being in the hos- that criticized hospitals for large pital the least amount of time.” increases in observational claims, Once physicians get the test re- Gustafson said. sults back, Riney said, patients are “Hospitals can’t win,” said either sent home, or if a serious Pendleton. “Hospitals are trying to problem is found, admitted. shift Medicare patients to observa- But Riney said sometimes hospi- tion status to lower costs, but in tals and payers disagree. some instances it costs patients “Insurance companies identify more money” out of pocket. inappropriate admissions and Over the past several years, the have rejected those admissions,” Centers for Medicare and Medicaid he said. “The hospital has to ap- Services have hired third-party au- peal. There is lost revenue, which ditors to hunt down improper is why we have expanded our ob- Medicare payments and unearth servational settings.” potential fraud, waste and abuse. Riney said all five of his system’s These so-called Recovery Audit hospitals, including Henry Ford Hos- Contractors are paid a financial pital, now have observation units. bounty of up to 12.4 percent for “We believe we have enough ob- successfully challenging claims. servation beds now. We have the Like most hospitals, Vitale said, ability to flex up and down on oth- Beaumont generally appeals claims er units depending on our needs,” denials — and wins. Riney said. “Beaumont has been very suc- Jay Greene: (313) 446-0325, cessful in defending (payment de- [email protected]. Twitter: nials). We don’t have that many,” @jaybgreene 20130909-NEWS--0023-NAT-CCI-CD_-- 9/5/2013 4:22 PM Page 1

September 9, 2013 CRAIN’S DETROIT BUSINESS Page 23 Health Care Health care summit speaker, presenters to focus on innovation BY DANIEL DUGGAN en Innovators Show the Way to Bet- tive ideas. GDAHC’s CEO, Kate Kohn-Par- Rod Reasen, the CEO of Healthi- CRAIN’S DETROIT BUSINESS ter Care, Better Health and Lower As part of the Health Care Lead- rott, and will feature presenters est Employer, will be a speaker at Costs. ership Summit, Crain’s will also from past webinars. the summit to offer context on Crain’s will bring metro De- The first 200 people to register continue its HealthFacts series, The event will also feature the Michigan’s wellness programs, troit’s health care executives to- for the event will receive a copy of offering strategic advice for em- winners of Michigan’s Healthiest particularly how they compare to gether with employers Oct. 29 at her book. ployers, employees and providers Employers. This program, done in the rest of the country. the San Marino Club in Troy for Bisognano will discuss the as the Patient Protection and Af- partnership with Indianapolis- Crain’s Health Care Heroes will its annual Health Care Leadership broader context of how innova- fordable Care Act changes take based Healthiest Employer LLC, rec- also be recognized at the event. Summit. tive health care providers across hold. ognizes five wellness programs The five winners were named in Keynote speaker for the event the country are finding ways to The series, created in partner- from metro Detroit companies. the Aug. 12 issue. will be Maureen Bisognano, CEO improve care and lower costs. ship with the Greater Detroit Area Those companies will be featured To register, go to www.crainsde of the Cambridge, Mass.-based In- Following Bisognano will be Health Council, has comprised we- in a print supplement, which runs troit.com/events. stitute for Healthcare Improvement. short presentations by several binars and a print supplement to Oct. 14 in Crain’s as well as in Daniel Duggan: (313) 446-0414, She is also the author of the recent health care providers in metro run Sept. 16. MiBiz, a media partner in the pro- [email protected]. Twitter: book Pursuing the Triple Aim: Sev- Detroit who are executing innova- The panel will be moderated by gram. @d_duggan

Chelsea Community Hospital starts $6M fund drive for cancer center Chelsea Community Hospital has launched a $6 million fundraising DENTAL IS ALL WE DO— campaign tied to plans to build a $10 million, 15,000-square-foot cancer center. The cancer center is the third phase of a project that includes a AND WE DO IT BETTER! new atrium, completed in January 2013, and renovation of its surgery center, which is under construction, said spokeswoman Laura Blodgett. The fundraising campaign will focus on communities in western Washtenaw County and eastern Jackson County. The hospital plans to break ground for the cancer center in January, with an opening planned for December 2014. The new center will add radiation therapy to its current oncology treatments. The remaining $4 million for the project will be paid by CHE Trinity Health, Blodgett said. Chelsea Community Hospital is part of the St. Joseph Mercy Health System, which is a member of CHE When switching to Delta Dental, you may Trinity. CHE Trinity was formed experience something you haven’t had with last May after the consolidation of Trinity Health and Catholic Health- other carriers—silence. care East. CHE Trinity operates in 21 states with 84 hospitals, according to a news release. With 9 out of 10 Michigan dentists participating, — Ross Benes Delta Dental offers your employees in-network savings by improving the chance that their CON Roundup preferred dentists participate in one or more of our programs. That, in turn, results in less The following are selected Cer- employee noise and helps us deliver greater plan tificate of Need filings from July: savings to you. Silence really is golden! Applications received William Beaumont Hospital, Troy: Replace 14 operating rooms and one To learn more about how Delta Dental can do procedure room; $36.6 million. Providence Long Term Acute dental better for you, please contact your agent Care Hospital, Southfield: Create 30- or visit deltadentalmi.com/dentaldonebetter. bed long-term acute care hospital within Providence Hospital and Medical Centers; $19.4 million. Marycrest Manor, Livonia: Re- place current facility with new nursing home facility; $20.6 million.

Decisions St. Joseph Healthcare Center, Hamtramck: Acquire 27 beds from St. Anne Convalescent Center and enter new lease for initial five-year term with five five-year renewal options for a total of 30 years; $29.6 million. Conditional approval. Regency at Troy, Troy: Lease 150-bed nursing facility for 15 years; $11.3 million. Approved. — Ross Benes 20130909-NEWS--0024-NAT-CCI-CD_-- 9/5/2013 4:23 PM Page 1

Page 24 CRAIN’S DETROIT BUSINESS September 9, 2013 Health Care Lawmakers approve Medicaid expansion – but will the feds?

BY STEVEN ROSS JOHNSON bill, recipients would be charged CRAIN NEWS SERVICE MICHIGAN’S MEDICAID CATCH co-pays for services. Michigan Medicaid expansion will Premiums, co-payments and oth- In the wake of the Michigan Leg- require two waivers from the federal er types of cost sharing are not by islature’s approval of a plan to ex- Centers for Medicaid & Medicare themselves unusual in state Medic- pand the state’s Medicaid pro- Services before it can be enacted. aid programs in recent years. Ac- gram to include an estimated The first waiver would require all cording to the CMS, states can 470,000 low-income residents, Medicaid beneficiaries without charge premiums and enrollment some observers question whether disabilities to pay up to 5 percent of fees for individuals and families the Obama administration will OK their income on co-payments for whose income exceeds 150 percent C WBE the state’s request to require en- their medical care after the first six of the federal poverty level, in states orporate title sponsor title sponsor rollees to pay up to 5 percent of months. that had expanded Medicaid eligi- their income for cost sharing. The second waiver would be bility to that income level before The Republican-controlled Mich- needed to move forward on a plan passage of the Affordable Care Act. to require those receiving Medicaid igan Senate narrowly approved a Schwartz pointed out that law- coverage after four years to pay up measure last month to expand the to 7 percent of their income in cost makers and governors in several state’s Medicaid program to include sharing or else buy private Republican-controlled states where all childless adults with incomes up coverage through the state health Medicaid expansion under the Af- to 133 percent of the poverty line, or insurance exchange. fordable Care Act has faced tough $15,500 for an individual. The state political sledding — including Iowa, House of Representatives approved tion and Affordable Care Act. Wisconsin, Ohio and Pennsylvania the Senate version last week. Five Twenty-one states have rejected ex- — have proposed similar cost shar- percent of $15,500 is nearly $800, pansion, while five — Pennsylva- ing as a condition of expansion. which experts say is a lot of money nia, Ohio, Indiana, New Hampshire None of those states has yet ap- for someone at that income. and Tennessee —remain undecid- proved a Medicaid expansion. What The bill now goes to Republican ed. Under the act, the federal gov- makes Michigan’s provisions differ- Gov. Rick Snyder, who supports ernment will pay 100 percent of the ent, Schwartz said, is basing eligibil- expanding Medicaid. The bill costs to expand the Medicaid popu- ity on time spent in the program. Visit miceed.org to register or won’t become effective until late lation for the first three years, then In Iowa, a similar provision was March or early April because the 90 percent after that. included in proposed legislation for more information Senate refused to reconsider its de- Snyder said the cost-sharing that would charge premiums to low- cision not to give its passage of the provision included in the Medic- income individuals and families Call : (734) 677-1400 bill immediate effect. aid expansion plan was a way for whose incomes were between 100 Once signed, Michigan will be- enrollees to take more of a respon- percent and 138 percent of the come the 24th state plus the District sible role in their health care by poverty level. In Ohio and Pennsyl- of Columbia to expand Medicaid as deterring them from pursuing un- vania, where debate continues over authorized by the Patient Protec- necessary medical treatment. whether to expand Medicaid, co-pay “The Healthy Michigan plan em- requirements have been considered phasizes personal responsibility,” as part of those proposed plans. he said in a news release. “Those Schwartz said the political goal of covered by the plan will be required elected officials proposing such to share in the costs through premi- measures is to reduce the number ums. There also will be incentives of people receiving Medicaid. She for them to take responsibility for predicted that it would take a lot of Have a specific need? Our candidates have specific training. their lifestyle choices and to main- time and expense for the states to tain or improve their health.” try to collect these co-payment Once reconciled and signed, the amounts from low-income people. plan will need to get approval from “At the end of the day, I don’t the Centers for Medicaid & Medicare know how exactly how this is go- Services. Some think that decision ing to work,” Schwartz said of is uncertain despite the desire of state efforts to try to collect the the Obama administration to have cost-sharing amounts from Medic- all states approve the Medicaid ex- aid recipients. “But it could end up pansion, a key mechanism for ex- being a deterrent from enrolling.” panding coverage under the Afford- Schwartz said it was difficult to able Care Act. tell what the Centers for Medicaid The problem lies in provisions in & Medicare Services ultimately the Michigan legislation that will would decide on such proposed require two waivers from the Cen- measures at this point because the ters for Medicaid & Medicare Ser- legislation has not yet been signed vices before it can be enacted. The into law and the agency has yet to first would require all Medicaid receive any waiver request from beneficiaries without disabilities to the state. It’s expected that if the pay up to 5 percent of their income agency rejected the waiver re- Business Computers Health Engineering/ Education & on co-payments for their medical quests, Michigan lawmakers would Technology Human Services care after the first six months. reverse their approval of the Med- The state then would need a sec- icaid expansion. When you have a position to fill, you want someone ond waiver to move forward on its As the federal government con- who’s qualified and ready to hit the ground running. plan to require those receiving tinues to urge more states to expand their Medicaid program as part of Baker College’s HireQualified® can help. Our candidates Medicaid coverage after four years to pay up to 7 percent of their in- the Affordable Care Act, rejection are highly trained in very specific areas by instructors come in cost sharing or else buy of plans such as Michigan’s could who are working professionals. They know what’s private coverage through the state put efforts to provide coverage for needed in their industries and teach practical experience health insurance exchange. low-income people at risk. On the over theory. The service is free—the result is just the “It’s somewhat unusual,” said other hand, Obama administration person you are looking for. Sonya Schwartz, a research fellow officials and their allies recognize Georgetown University Health the problems with imposing stiff To learn more about how we can help you find the best at the Policy Institute’s Center for Children cost sharing on poor people. candidate for your needs, or to schedule a meeting at and Families. “I think CMS is going “They know how sensitive peo- your place of business, visit HireQualified.com. Free recruiting services from to look at it really carefully, partic- ple are to premiums and cost shar- America’s leading career college. ularly the part that requires peo- ing,” Schwartz said. “So I think ple under 100 percent of poverty to CMS will look at it very carefully.” X6461HQ have to pay premiums.” Under the From Modern Healthcare 20130909-NEWS--0025-NAT-CCI-CD_-- 9/6/2013 10:38 AM Page 1

September 9, 2013 CRAIN’S DETROIT BUSINESS Page 25 Health Care Home health agencies fear closings, mergers in wake of expected Medicare cuts

BY JAY GREENE ternal growth, said William Deary, CRAIN’S DETROIT BUSINESS Great Lakes’ CEO. However, the Medicare cuts will Home health agency executives slow Great Lakes’ home health in Southeast Michigan said a ma- revenue growth in 2014 to 7 per- jor shakeup in the industry is ex- cent, Deary said. pected as agencies deal with plans “The issue is, ‘Do providers have by Medicare to cut reimbursement enough scale to grow through the by an average of 14 percent over cuts?’ Many companies don’t. Forty the next four years. percent of agencies are still doing Last month, the Centers for things on paper. They haven’t in- Medicare and Medicaid Services end- vested in information technology” ed the comment period for a pro- that is necessary to provide pa- posed regulation that would save tients with high-quality care and 8I\ZQUWVa+WV\MUXWZIQVM Medicare an estimated $22 billion keep costs down, Deary said. from 2014 to 2017. Unless overruled “At the end of the day, we will by Marilyn Tavenner, CMS admin- have to work very, very hard” to istrator, the rule could go into ef- keep growing as a company, Deary fect Nov. 2. said. “In the past, I took care of five The proposed 14 percent cuts, patients to earn $1. Now I will have which don’t include a 2 percent cut to take care of 10 patients to make from sequestration in 2014, could that $1.” cause a reduction in the scope of Deary said there will be winners home health services and charity and losers because of the cuts. care, closures of dozens of small “There is a big opportunity for agencies, an increase in acquisi- us to grow. We are talking with tions of weaker agencies and the two companies that are struggling resulting disruption in patient right now,” said Deary, noting that care, said several experts. Great Lakes likely will acquire a “It doesn’t make sense what number of smaller agencies over (Medicare) is do- the next several years. ing,” said Greg CMS said in a statement that the Solecki, vice proposed changes will “foster president of greater efficiency, flexibility, pay- home health at ment accuracy and improved qual- Henry Ford Health ity” for nearly 12,000 agencies and System in De- 3.5 million beneficiaries. troit. But a study by Avalere Health and “What we Dobson DaVanzo Associates shows have is a pretty home health agencies will lose mon- antithetical ap- Solecki ey in 47 of the 50 states, including FREE WEBINAR: SEPTEMBER 19 • 12-1 PM proach to what Michigan, by 2017 because of the we thought we were supposed to be cuts. Nationally, the Medicare working on: putting an emphasis home health margin is estimated to on the lower-cost provision of drop to -9.77 percent with 77 percent home health services to keep pa- of agencies losing money on it. tients from being readmitted to the The study was conducted for the hospital,” Solecki said. National Association for Home Care While the Medicare cuts will and Hospice, the Visiting Nurse Asso- have the short-term impact of re- ciations of America, and the Partner- ducing spending, Mark Lezotte, a ship for Quality Home Healthcare. partner with Detroit-based Butzel Solecki said the repercussions of Long, said the long-term impact is the cuts will extend beyond the likely to increase hospital read- home health industry. missions, emergency department “We have seen so much success Employee Health Literacy: visits and lower quality care. in reducing the 30-day readmission Despite payment cuts totaling 17 percent since 2009, the number of rates in Southeast Michigan,” Getting the Most Out home health agencies in Michigan Solecki said. “One big reason is us- has grown to 647 Medicare-certi- ing tools like home health. Cutting of a Doctor Visit fied agencies, including about 300 lower-cost services like home in metro Detroit, from about 548, health, which account for less than according to the Michigan Associa- 4 percent of the (Medicare) budget” About the Webinar: tion for Home Care. The growth re- will drive up costs in hospitals. The Affordable Care Act means changes for employees too. flects an aging population. In July, Solecki said, Henry While there’s a requirement for individuals to have coverage, “The proposed reductions are Ford Home Health was forced to there are rights and protections under the law as well. forcing change in the industry eliminate its maternal and child with a need for consolidations and home health program for about Discover: increased efficiencies,” said Exec- 2,000 mothers. “We were losing $500,000 annu- How to make the most of a visit, utive Director Barry Cargill. at “We are talking with legislators ally on this charity and Medicaid under the new ACA provisions Register Today and hopeful we will not see the program over the past 12 years,” Crainsdetroit.com/webinars cuts that are proposed,” Cargill Solecki said. What will and won’t be covered said. “The more home care is cut, “After 31 years, if Medicare is the more difficult it is for patients cutting us, we just decided we Additional changes, beyond 2014, to stay in (lower-cost settings of) can’t afford to provide under- or that will impact a doctor visit their homes” uncompensated care programs. Great Lakes Caring, a Jackson- You will see this with other based for-profit home health and providers. The only way to with- hospice company, has been grow- stand the cuts is to close down spe- In Partnership With: Presented By: ™ ing at a 17 percent clip the past two cialized services, shrink geograph- years through acquisitions and in- ic coverage and reduce services.” 20130909-NEWS--0026-NAT-CCI-CD_-- 9/6/2013 11:02 AM Page 1

Page 26 CRAIN’S DETROIT BUSINESS September 9, 2013 Shiloh CEO sees cautious optimism in automotive M&A This year’s merger and acquisi- tive team is located, acquired Revs- Chrysler Group LLC and Nexteer Auto- You had one of the few deals hap- easier to buy tion activity, while predicted to be tone Transportation LLC subsidiary motive Inc. pening this year. How is the M&A out- the company steady, has been anything but a Contech Castings LLC for $54.4 mil- Shiloh acquired two other busi- look? than presses; boon. But automotive suppliers lion in August. nesses in 2012 and is taking advan- We’ve actually done two deals in demand and are closing strategic deals — most- For Shiloh, Contech offered all tage of what Ramzi Hermiz, presi- December and the third one with capacity for ly to gain a region, customer or ca- three of the aforementioned acqui- dent and CEO, said is a market in Contech. From our perspective, it the customers pacity. sition strategies with four plants need of capacity. helps us accomplish our goals, in anticipation Valley City, Ohio-based Shiloh In- in Alma; Clarksville, Tenn.; Crain’s reporter Dustin Walsh whether it’s customer base, tech- of their needs. dustries Inc., which operates its Auburn, Ind.; and Pierceton, Ind., discussed with Hermiz the current nology, footprint, etc. We are a technical center in Canton Town- as well as new contracts with Ford environment of M&A and the auto- Part of that was to bring on healthy compa- ship and where much of its execu- Motor Co., General Motors Co., motive industry. needed capacity. M&A was a lot ny, and some of these stronger com- Q&A panies are more capable Ramzi Hermiz, of doing that. Shiloh Industries

PARTNERSHIP AVAILABLE What’s holding back your competi- tors and peers in M&A activity this We invite you to experience the difference that year? private ﬂight travel can make. Overall, there is this question Providing years of experience about integration. Everybody thinks the acquisition is going to in strategic marketing, branding UÊ Ê >ÃÃiÊiÌÀÞÊiÛiÊÊ be perfect. It’s not. Integration is and rebranding efforts. ÊÊÊ«>ÀÌiÀÃ «ÃÊ always a concern. Some of the UÊÜiÃÌÊ«iÀ>Ì}ÊVÃÌÃÊÊÊÊÊÊÊ companies are also looking at how With a strategic integrated ÊÊÊÊÌ iÊ>ÀiÌÊ to manage cash in Europe. Do they marketing communications UÊVViÃÃÊÌÊÛiÀÊx]äääÊÊ have enough wherewithal to make process, the LEE Group will help ÊÊÊ1°-°Ê>À«ÀÌÃÊ it through the desert? Others are UÊ*ÌÃÊÞÕÊÜÊ>`ÊÌÀÕÃÌÊ looking at investments toward your company increase sales UÊ/À>ÛiÊÊÞÕÀÊÃV i`Õi]ÊÊ new launches. When you buy a and impact your bottom line. ÊÊÊÌÊÌ iÊ>Ài½ÃÊ company, you still need additional UÊ->viÊ>`ÊÃiVÕÀi resources to integrate that compa- Contact me today and let’s ny to do that work. But they restart a discussion about your main hesitant and (are) trying not American Jet Management to move too quickly. That’s why company’s goals. M&A is less than what people >Ê iÊ>ÌÊn£ä°ÓÎÓ°{{{ÎÊÀÊÊ>ÌÊÓ{n°nÈä°ÈÎÇn would expect. In an upswing mar- MARK S. LEE, Founder & President, The LEE Group, MI LLC ket, everyone wants a premium for upstream growth. There’s the [email protected] added risk that you’re buying something on the multiples that have yet to be proven. We’re a cyclical industry.

What’s the mood of the industry right now? I would say the mood is varied by location. I would say it’s positive and optimistic, but there is a sense of caution. In North Ameri- ca, the mood is positive because Uncommon everyone sees there are a good cou- Creative, Conservative Thinking. ple of solid years of growth. In Eu- rope, there’s still the concern of de- Remarkable Solutions. mand. The general economy, while we’ve bottomed out, in Europe is still slow growth, and we see a Personal life insurance consulting very slow recovery. Somebody can in a non-salesy environment. say, ‘Yes, but I’m better than a quarter ago,’ but the high is still a long way off. Reducing estate and income taxes Questions remain on how quickly to add capacity, how quickly to add resources. Last year we Enhancing ﬁxed income yields launched 225 different tools. It’s having the people to manage those launches and supply chain, a mix- Solving family and retirement issues ture of capital equipment and human equipment. Optimizing existing life insurance policies How are fuel economy standards changing what you offer customers? Business succession planning While there are incremental gains in the powertrain side of our and corporate beneﬁts business, we feel lightweighting is where the growth will happen. If we can take weight out of the vehicle, it helps all powertrains. You’re going to see that continued effort to invest in the business. You need to lead with technology. We’re ask- ing ourselves, “How do we bring in new technology and innovation and help simplify what the (au- tomakers) need?” We are optimistic on our moves from a customer support side and BIRMINGHAM, MI | NEW YORK, NY customer activity side. We feel comfortable that we are making 248.731.9500 | WWW.SCHECHTERWEALTH.COM the right moves with capacity. We are in the right market segment. 20130909-NEWS--0027-NAT-CCI-CD_-- 9/6/2013 11:56 AM Page 1

September 9, 2013 CRAIN’S DETROIT BUSINESS Page 27 Social impact bond plan:

Thursday, September Fund programs, save cash 12, 2013 Social impact bonds, program that will save sistance Lab there, said one benefit which bring private cap- money in the long run, to using this approach is that gov- ital to help fund state Capitol but hasn’t been started ernments too often fund social pro- programs that offer so- Briefings because of lack of fund- grams but don’t spend much time cial benefits, are coming ing. to find out if they work. With this to Michigan. A company or a pri- bond program the results are mea- Gov. Rick Snyder was vate investor would pay sured and if the performance goals to announce today that to start the program, typ- are not achieved the government the state will have a full- ically in conjunction could decide to no longer fund the Thursday, September 12, 2013 time fellow for a year with nonprofit financial program. DTE Energy Headquarters | One Energy Plaza, Detroit from the Harvard Kennedy support. “The pay-for-success approach School to help choose an Metrics are put in transforms government relation- Celebrating today’s Real McCoys in Science, Technology, investment-worthy pro- place to define success ships with social service pro- Engineering, Mathematics and Medicine (STEMM)! Chris Gautz gram that will save the for the program and the viders,” Liebman said. Awardees: state money by doing length of time it should Critics of the concept have said Science: Jerry Caldwell, Director Drew Scholars Program, good. The way the concept works take to achieve results. If it is suc- it has not been around long Michigan State University-Ann Arbor is this: cessful, investors are repaid with enough to prove if it works be- Technology: Rodney O’Neal, CEO Delphi A program not already offered interest from the savings. If the cause none of the projects that Engineering: Jessica Moreno, Engineering Business Manager by the state that addresses a social program isn’t successful, the in- have been started have concluded. General Motors-Global Electrical Systems need is identified, such as reduc- vestors lose their money. No state The first social impact bond pro- Mathematics: Ronald Hall, Sr., President/CEO Bridgewater Interiors ing juvenile recidivism or child- money is at risk. gram in the U.S. was started last Medicine: Linda Gillum, Assoc. Dean Academic & Faculty Affairs, hood obesity. The program could Jeffrey Liebman, professor of year in New York City to help try Oakland University William Beaumont School of Medicine be one offered in another state or public policy at the Harvard to reduce the recidivism rate of in- Individual tickets and sponsorship opportunities available at: on a small scale by a community in Kennedy School and director of carcerated youth at Rikers Island. www.dapcep.org or call (313) 831-3050 Michigan. The idea is to choose a the Social Impact Bond Technical As- The roughly $10 million program was financed jointly by Goldman Sachs and Bloomberg Philanthropies. DAPCEP is a 501(c)3 nonprofit organization that provides historically underrepresented youth with innovative education programming in STEMM. After four years, if recidivism THE MILLER LAW FIRM rates for those in the program are reduced by 10 percent, the in- Changing the Odds in our Clients’ Favor vestors will make money. What happens at that point is unknown, Liebman said. One possibility, he said, is that the city could renew the contract, or the city could decide to pay for the program itself going forward. As part of today’s announcement, Joe Pavona, special adviser to Sny- der for public-private partnerships, said the state will issue a formal request for information to seek out potential program opportunities and the level of interest among organizations and groups to be involved. There were 28 state and local The Miller Law Firm is Recognized as a governments that applied as part Leader in Complex Business Litigation of a national competition for the assistance the school and lab are Q Class actions Q Family law and probate litigation offering. Michigan missed out on Q Employment litigation Q Commercial and business lawsuits the first round of awards, but the

Q Automotive Supplier Counseling Q Shareholder and partnership disputes lab found additional resources to fund several more projects. Referral fees honored on contingency fee cases Pavona said this is a new way of 950 West University Drive, Suite 300 Rochester, Michigan 48307 248-841-2200 millerlawpc.com trying to solve a problem, rather than just throwing taxpayer money at it. “This is more of an outcome- REAL OCTOBER 17 based way,” he said. “It also trans- ESTATE AUCTION LIVE & ONLINE BIDDING fers the risk for financing and non- performance to the private sector.” OPERATING 18-HOLE, 134 ACRE Comings and goings BLACK RIVER GOLF & COUNTRY CLUB Tim Hortons could offer sales at 3300 Country Club Drive, Port Huron, MI (North of Detroit, 2 miles to Sarnia, Ontario) the Capitol building under a deal Well Maintained · Large Canadian Draw · Full Service Restaurant that’s in the works, the Associated · Built by Fred Riggin (of Mueller Brass Family) in 1926, redesigned by William Diddle in 1950’s Press reported. A former state · Semi-private, 6,500 yards, 129/71.4 · 11,500 SF Club House · 18,500 SF gross area House press room could be con- · Pro shop, range, practice area, tennis courts · House for management verted for food service and would · MagniĆcent tree-lined fairZays on the BlacN River be the first such arrangement at · FullFully irrigated Zith Zater supply from the adMacent BlacN River the building, WLNS-TV reported. ActiveA Banquet Business · Conference Center · Ceremony Site The station says the Canadian- based coffee-and-doughnut chain VOTEDV “BEST OF PORT HURON GOLF COURSES” is talking with the Commission for the Blind, which has rights to sell food in state buildings. Rep. John Walsh, R-Livonia, said he’s excited about the possibility. Senate Minority Leader Gretchen Whitmer, D-East Lansing, said she has questions about the plans and whether it would lead to other deals. Chris Gautz: (517) 403-4403, 847.418.2700 HilcoReal.com [email protected]. Twitter: In Cooperation with Alan R Kravets MI Broker #6504284299, 14943 Lakeside Rd, Lakeside, MI 49116. 10% Buyers Premium. @chrisgautz 20130909-NEWS--0028-NAT-CCI-CD_-- 9/6/2013 11:02 AM Page 1

Page 28 CRAIN’S DETROIT BUSINESS September 9, 2013 DTE to expand pilot project to turn landfill gas into usable fuel

BY JAY GREENE built by Clean Energy Renewable Fu- projects at Monroe County Communi- CRAIN’S DETROIT BUSINESS els, a Newport Beach, Calif.-based ty College, General Motors’ Detroit- production company. Hamtramck Assembly Plant, Ford Mo- A pilot project that converts “We are purchasing the gas tor Co.’s Wayne Assembly Plant, Blue methane, carbon dioxide and other from Clean Energy Renewable Fu- Cross Blue Shield of Michigan’s trace elements from a Canton els,” Brown said. “They are operat- downtown Detroit parking garage Township landfill into burnable ing the plant in Canton.” and an 80-kilowatt solar array at natural gas that can be sold to cus- Projects are also in the pipeline DTE’s own parking in Detroit. tomers is helping Detroit-based for other kinds of renewable ener- By 2015, DTE plans to generate a DTE Energy Co. inch closer to its gy production. total of 22 megawatts of solar pow- state-mandated renewable energy Because of lower prices and er, which includes 15 megawatts goals. greater availability, utility compa- from utility-owned plants and The natural gas effort is part of nies are converting energy produc- 7 megawatts from customer-owned the utility’s required goal to pro- tion toward more natural gas and projects. vide 10 percent of its electricity away from dirtier coal, said Nitin Earlier this month, DTE select- generation from renewable energy Paranjpe, an economist at Wayne ed 67 solar energy projects pro- sources. State University School of Business posed by residential and small- Last month, DTE Gas, a sub- Administration. business customers that are sidiary of DTE, announced plans “Landfill gas won’t increase pro- expected to generate 500 kilowatts to expand its BioGreenGas pilot duction that much in the long of power. project that provides 2,000 cus- term, but people are very happy to “The first phase was tomers across the state with the participate because they feel they 5 megawatts, and it was fully sub- equivalent of natural gas convert- are contributing to a better cli- scribed in several months,” Si- ed from the Sauk Trail Hills land- mate by reducing pollution and us- mons said. “We decided a better fill in Canton Township. ing our natural resources,” Paran- way to go was to portion (the next DTE said it plans to expand the jpe said. “DTE also must feel it is a 2 megawatts) in four rounds of 500 BioGreenGas program to serve profitable venture.” kilowatts each.” dozens of other people on a waiting Simons said DTE will offer cus- list. tomers opportunities to submit so- Since last year, customers have Solar power expansion lar power projects two more times agreed to pay a $2.50 per month DTE is more than halfway next year, with the next deadline subscription fee that helps cover toward its goal of providing 15 Feb. 12, 2014. the cost of the green gas produc- megawatts of power through its tion, said Marca Brown, DTE’s res- utility-owned solar photovoltaic idential program manager. The facilities. Wind park power projects customers also pay DTE’s normal With 15 solar power projects op- With DTE’s Thumb Wind Park gas rates. erational, two under construction in Huron and Sanilac counties “People enrolling in the pro- and four in the engineering phase, generating 110 megawatts of ener- gram are supporting the develop- Simons said those 21 projects will gy — enough to power about 25,000 ment of natural gas (from landfills) represent 9 megawatts of power homes — DTE’s Echo Wind Park to improve the environment,” said when they all come online by early in Huron County is expected to be Brown, noting that the BioGreen- next year. completed later this year. Gas is similar to DTE’s GreenCur- Last December, an unspecified Echo Wind Park will cover Need a rents renewable energy program. number of companies submitted 16,000 acres with 70 General Electric Brown declined to further discuss requests for proposals to build 1.6-megawatt turbines. DTE’s DTE’s expansion plans or necessary additional new solar plants that fourth wind farm will contribute regulatory approvals from the Michi- range from 500 kilowatts to another 110 megawatts. New Bank? gan Public Service Commission. 2 megawatts. To meet the 10 percent renew- The green energy push stems “We are negotiating contracts able energy requirement, Simons from the state level; Michigan law now. We hope to file them with the said 90 percent will come from approved in 2008 requires utilities, (Public Service Commission) this wind, 8 percent from biomass that including DTE (NYSE: DTE) and fall,” said Simons, who declined to includes landfill biogas and 2 per- Lansing-based CMS Energy Corp. provide the number of proposed cent from solar power. (NYSE: CMS), to generate at least projects. Jay Greene: (313) 446-0325, 10 percent of power from renew- DTE owns and operates several [email protected]. Twitter: @jay- able energy by 2015. DTE expects large solar installations, including bgreene to invest about $1.3 billion to achieve the 10 percent goal. And it’s very close to reaching it. “We are at 9.8 percent of the 10 percent” requirement with renewable energy projects in operation or under contract, said Scott Si- mons, a DTE spokesman. With the addition of the Lake Winds Energy Park in Mason Let ours compete for County last November, CMS is up to about 8 percent of its 10 percent renewable requirement, said Dan your business. Bishop, director of media relations Loan amounts: $1,000,000.00 and above. for CMS utility subsidiary Con- sumers Energy. s Investment Real Estate s Accounts Receivable Later this year, CMS plans to be- s Owner Occupied Real Estate s Equipment gin construction of its second wind s Lines of Credit s Bank Workouts park — the Cross Winds Energy Park in Tuscola County. The utility company also operates 13 hydroelec- tric plants on the Au Sable, Manis- tee and Muskegon rivers, and gener- ates small amounts from solar and biomass programs, Bishop said. On DTE’s biogas project, DTE 800.509.3552 spent $2 million to build a pipeline www.eclipsecapitalgroup.com and a meter station at the landfill. 2207 Orchard Lake Road, West Bloomﬁeld, MI 48320 The pipeline sends the landfill bio- “Since 1997” gas to a $20 million purifying plant 20130909-NEWS--0029-NAT-CCI-CD_-- 9/6/2013 10:42 AM Page 1

September 9, 2013 CRAIN’S DETROIT BUSINESS Page 29 Delphinus gets $11M VC boost for 3-D breast cancer detector

BY TOM HENDERSON happy to close on the B round. It’s where a tumor is suspected. CRAIN’S DETROIT BUSINESS all good at this point,” said Green- In early testing, the device was way, who told Crain’s last Decem- better than mammography at get- Delphinus Medical Technologies ber that he hoped to raise a ting good images from dense Inc., a spinoff from the Barbara Ann B round of funding of between $15 breast tissue. Karmanos Cancer Institute that uses million and $17 million. Greenway said the goal is to 3-D ultrasound imaging to detect Greenway said the company have the first two devices show the breast cancer, has raised a second will use the funds to improve its technology is good enough at more venture capital funding round of current device — by adding a bet- accurately detecting tumors than $11 million. ter interface between the machine mammography to justify a price of Joining are the three firms that and a hospital’s electronic records about $400,000. were in the first round of $8 mil- and improving the images pro- Mammography has increasingly lion in 2010 — Arboretum Ventures duced during tests on patients — come under criticism for generating LLC and North Coast Technology In- and to ramp up manufacturing. too many false positives, which vestors LP, both of Ann Arbor, and The first few devices can be used cause unnecessary and expensive Beringea LLC., Farmington Hills. under what is called an investiga- follow-up procedures, and because Delphinus, based in the Michigan tive device exemption from the of the dangers of radiation. Life Science and Innovation Center in U.S. Food and Drug Administration. “Numerous studies have come Plymouth Township, has had one Delphinus has applied to the FDA out in the last year that have said device in operation at Karmanos for approval to begin full-scale that there’s a large overdiagnosis since December and is negotiating manufacturing and marketing un- of breast cancer with mammogra- to have a second unit installed in a der Section 510(k) of the Food, phy and a lot of needless biopsies, hospital in London, England, said Drug and Cosmetic Act. and that fits into Delphinus’ sweet CEO William Greenway. The device at Karmanos is being spot,” said Hugo Braun, a partner “This is still a challenging used to augment mammography, and co-founder at North Coast. fundraising environment for a as a follow-up to confirm a diagno- “It’s clear there’s a gap in the medical device company, so I’m sis or to provide better images market and a big opportunity to lower costs. As an investor in the health care market, if you’ve got something that reduces cost and improves health care, that’s WORLD-CLASS INFORMATION perfect.” SERVICES FOR MICHIGAN BUSINESS The device looks like a bed with a hole cut near the top. Patients lie face down, with a breast through the hole. The breast is immersed in water and surrounded by a ring containing 2,048 ultrasound sensors to create the data that is trans- lated into images. Greenway said the company applied for the 510(k) approval nine months ago and has had a normal back-and-forth process with the FDA since. He said the last step is about to begin and that he expects FDA approval by year-end. The last step is to do tests on 20 DATA CENTERS women at Karmanos to show that the technology gets results equivalent to those produced by competi- FIBER TO YOUR BUSINESS tor iVu Corp. of Grapevine, Texas, which is also marketing an ultrasound-based breast cancer device. FIXED METRO WIRELESS Greenway said his company hopes to sell 10 machines within 12 months of the first approval from MPLS | SIP | PRI the FDA, and to sell 25-50 machines the second year. Delphinus currently employs 20. Greenway said he will hire three to five engineers and scientists in www.123.net the near term and a small sales staff after getting FDA approval. The company eventually will 866.603.4774 seek approval for the larger, more lucrative screening market, where its device would be used to analyze breast tissue to identify patients at a higher risk for developing cancer. Delphinus was co-founded by Ned Duric, a professor of oncology at Karmanos, and Peter Littrup, M.D., the director of radiology research at Karmanos. Before the first VC funding in 2010, the technology had had more than a decade of R&D and more than $19 million in funding, including private donors, the Michi- gan Economic Development Corp., the Susan G. Komen Breast Cancer Foun- dation and large grants from the National Institutes of Health and the National Cancer Foundation. Tom Henderson: (313) 446-0337, [email protected]. Twitter: @tomhenderson2 20130909-NEWS--0030-NAT-CCI-CD_-- 9/6/2013 11:49 AM Page 1

Page 30 CRAIN’S DETROIT BUSINESS September 9, 2013 Knight grants to fund community arts projects

BY SHERRI WELCH or three-year funding, take place in sense of ownership in the cultural CRAIN’S DETROIT BUSINESS Detroit or benefit the city. The win- activity that goes on,” he said. ners must now secure matching Detroit is the third city where A hip-hop Mardi Gras parade in funding to support their projects Knight is launching the challenge, Detroit, in-home folk music con- through grants, donations, Kick- behind Miami and Philadelphia. certs, an ice cream truck playing starter campaigns or other means. The foundation was impressed classical music and a permanent They’ll have about a year to do with the 1,400 entries from Detroi- light installation on Woodward so, said Dennis Scholl, the founda- ters, the biggest per-capita re- Avenue will soon become realities tion’s vice president/arts. And sponse it’s gotten to date, and with in local community arts, thanks to some showing good potential for the quality of the ideas, Scholl said. $2.1 million in grants from the John raising their full match could get A large number of ideas involved S. and James L. Knight Foundation. seed money from the foundation to music, from classical to techno to Fifty-six community arts pro- begin their project even as they hip hop and rock ’n’ roll, he said. jects will see $2.1 million in fund- are fundraising, he said. A panel of 10 made up of local ex- ing during the initial round of the Detroiters could start to see perts on specific arts disciplines three-year, $9 million Knight Arts some of the projects before the end such as music or theater, those Challenge Detroit. of the year, Scholl said. with broad cultural knowledge The Miami-based foundation was “I think when you see ... this and others with a strong knowl- expected to announce the grants much cultural activity happening edge of the community as a whole, Sunday, with the full list of winners in a community, the citizens ... be- read all of the entries and made posted at knightarts.org. gin to get a different sense of them- recommendations to Knight on the The challenge is part of a $19.25 selves as a place of culture,” he said. winners, Scholl said. million investment in Detroit arts Knight noted a tremendous Knight plans to put out a call in announced last fall, along with amount of grass-roots activity hap- the spring for new entries for the $10.25 million in operating grants to pening in Detroit and the winning second year of the contest. cultural institutions in the region. projects reflect that, Scholl said. Sherri Welch: (313) 446-1694, The winning community arts “We think these projects will [email protected]. Twitter: @sher- projects, some of which will get two- give people a sense of pride, a riwelch

BUSINESS DIARY CONTRACTS phone: (800) 453-1165. Website: el within XenDesktop and is included www.theprofgroup.com. with XenDesktop Enterprise and Plat- Sanluis Rassini International Inc., a inum. Website: www.lakesidesoft- Mexican-based automotive supplier U-Haul International Inc., Phoenix, ware.com. with its technical center in Plymouth Ariz., opened U-Haul Moving and Stor- Township, is supplying suspension age of New Center, a moving and self- Altair Engineering Inc., Troy, released components, leaf and coil springs, and storage facility, at 899 W. Baltimore St., SimLab 12.0, an upgraded technology brake rotors on General Motors Co.’s Detroit. Telephone: (313) 879-5852. Web- package that brings together the tools 2014 GMC Sierra and Chevrolet Silver- site: www.uhaul.com/movingdetroit. engineers require for the design and ado trucks. Website: www.sanluis- analysis of vehicle powertrains. Sim- rassini.com. MOVES Lab 12.0 has been released as part of HyperWorks 12.0, Altair’s suite of PublicCity PR LLC, Southfield, added Ritten Financial, a subsidiary of THG computer-aided engineering software. clients Andiamo Restaurant Group, , moved from Financial Strategies LLC Altair also released Computer Manag- Warren; Blue Filament Law PLLC, 4000 Town Center, Southfield, to 40 er 12.0, a faster version of its software Birmingham; Mosaic Youth Theatre, Oak Hollow St., Suite 200, Southfield. for running, monitoring and manag- Detroit; and Qualigence International, Telephone: (248) 327-3205. Livonia. Website: ing workloads and results on distrib- The KPM Group, a recruiting and tem- www.publiccitypr.net. uted resources in high-performance porary staffing firm, moved its head- computing environments. Computer has completed web- Front Street PR quarters from 39209 W. Six Mile, Suite Manager is a Web-based job portal sites or projects for Leading Edge Title 200, to 17197 N. Laurel Park Drive, Suite that serves as an interface for submit- Agency, Farmington; College Connect 135, Livonia. Telephone: (734) 542-0202. ting and monitoring jobs in Altair’s Michigan, Brighton; The New You Website: www.thekpmgroup.com. PBS Professional complexes. Website: Body Wraps & Wellness Spa, Warren; www.altair.com. and CrossFit North Industry, Livonia. Collins, Buri & McConkey LLP, certi- Manufacturing is not Website: www.frontstreetpr.com. fied public accountants, moved from Hirschmann Solutions, a business unit 31700 Telegraph Road, Suite 220, Bing- of Hirschmann Car Communication Arotech Corp., Ann Arbor, announced ham Farms, to 1450 W. Long Lake Inc., Auburn Hills, a supplier of anten- that the company was selected to sup- Road, Suite 365, Troy. Telephone: na and transceiver systems for ma- just coming back, ply its Milo firearms and force options (248) 646-7440. chine-to-machine and automotive training simulators to the California Commission on Peace Officer Stan- communications, introduced the Iridi- dards and Training. The contract calls NEW PRODUCTS um Transceiver Antenna System, an it’s moving forward. antenna paired with the Iridium 9602 for the delivery, installation and on- Barbara Ann Karmanos Cancer Insti- modem, a tracking and monitoring de- site training of Milo at 30 locations, tute, Detroit, announced its new app vice that allows satellite communica- along with five years of product sup- to help physicians and health care tion from virtually anywhere in the port. The initial contract award is val- professionals become aware of cut- world. Website: www.hirschmann-so- "OFXJOEVTUSJBMSFWPMVUJPOJTSFWJUBMJ[JOHBOE ued at $1.67 million.Website: ting-edge cancer clinical trials. The lutions.com. USBOTGPSNJOHUIFJOEVTUSZ BOE'PMFZBUUPSOFZTBSF www.arotech.com. KCI Trials App, free and available on the App Store for iPhone and iPad, al- Dearborn Mid-West Co., Taylor, a ma- BUUIFGPSFGSPOU8JUIBIPMJTUJDBQQSPBDIIPOFE EXPANSIONS lows users to search for cancer clini- terial handling supplier, introduced SM its Intellilube single-point lubrication PWFSZFBST PVSOBUJPOBM-FHBM*OOPWBUJPO)VC DTE Energy Co., Detroit, selected 67 so- cal trials by disease site, keyword, protocol number, phase or principal brand and accessory product line to lar energy projects in the second the automotive and manufacturing in- GPS/FYU(FO.BOVGBDUVSFSTDBOIFMQHVJEFZPVS investigator. The information dis- round of its expansion of the Solar dustries. Website: www.dmwcc.com. CVTJOFTTJOUPUIFOFYUHFOFSBUJPOGSPNSJHIUIFSF Currents customer-owned pilot pro- played for each trial includes the title, gram, which offers customers an af- objective, principal investigator, dis- STARTUPS JO%FUSPJU fordable way to install solar photo- ease sites, drugs involved and eligibil- voltaic systems on their homes and ity criteria. Website: www.kar- Ganbei Chinese Restaurant and Bar -FBSONPSFBCPVU'PMFZT-FHBM*OOPWBUJPO)VCBU'PMFZDPNNBOVGBDUVSJOH PS businesses. Incentives were awarded manos.org. opened at 227 S. Main St., Rochester. Telephone: (248) 266-6687. DPOUBDU%FUSPJU0GmDF.BOBHJOH1BSUOFS%BMKJU4%PPHBMBUEEPPHBM!GPMFZDPN to 56 residential projects in Southeast TRW Automotive Holdings Corp., Livo- Michigan representing 373 kilowatts nia, designed a new anchor seat belt and ranging in size from 1 to 20 kilo- pretensioner in a rotary configura- watts. In addition, 11 small-business tion. Known as APR1, it features a DIARY GUIDELINES projects representing 121 kilowatts lighter weight design and more com- will be built in seven counties. These Send news releases for Business pact packaging and is designed to de- Diary to Departments, Crain’s projects range from 4 to 20 kilowatts. liver pretensioning forces of more Website: www.dteenergy.com. Detroit Business, 1155 Gratiot than 3 kiloNewtons, which can help to Ave., Detroit, MI 48207-2997 or Liberty Title Agency Inc., Ann Arbor, remove some seatbelt slack within send email to cdbdepartments@ opened a new location at 439 S. Main milliseconds of a crash being detected. crain.com. Use any Business Diary St., Suite 201, Rochester. Telephone: The APR1 will launch on several Eu- item as a model for your release, #0450/t#3644&-4t$)*$"(0t%&530*5t+"$,40/7*--&t-04"/(&-&4 (248) 434-5471. Website: www.libertyti ropean vehicle platforms in 2015. Web- and look for the appropriate ."%*40/t.*".*t.*-8"6,&&t/&8:03,t03-"/%0t4"$3".&/50 tle.com. site: www.trw.com. 4"/%*&(0t4"/%*&(0%&-."3t4"/'3"/$*4$0t4)"/()"*t4*-*$0/7"--&: category. Without complete 5"--")"44&&t5".1"t50,:0t8"4)*/(50/ %$ The Professional Group, Detroit, a Lakeside Software Inc., Bloomfield information, your item will not run. maintenance company and subsidiary Hills, added Citrix XenClient to its Sys- ª'PMFZ-BSEOFS--1t"UUPSOFZ"EWFSUJTFNFOUt1SJPSSFTVMUTEPOPUHVBSBOUFFBTJNJMBSPVUDPNF Photos are welcome, but we cannot /$MBSL4USFFU 4VJUF $IJDBHP *-tt of Belfor Holdings Inc., Birmingham, Track analysis tools. Citrix XenClient guarantee they will be used. opened an office in Orlando, Fla. Tele- is a key virtual desktop delivery mod- 20130909-NEWS--0031-NAT-CCI-CD_-- 9/6/2013 11:55 AM Page 1

September 9, 2013 CRAIN’S DETROIT BUSINESS Page 31 CALENDAR FRIDAY UPCOMING EVENTS port Authority; Linda McIntosh, and chief blogger, Detroit Regional CHANCE TO LEARN FROM marketing director, Somerset Collec- News Hub. Crain Communications SEPT. 13 Getting Equity Compensation Right. tion/corporate director of communi- Inc., Detroit. $28 AWC members, $30 FAST-GROWING COMPANIES 5-7 p.m. Sept. 16. Ann Arbor Spark. A cations, Forbes Co.; and Maggie nonmembers, $25 full-time students. Future of Health Care in Michigan. 10 panel of attorneys will discuss equity- Sweeney, retail promotions manager, Contact: (866) 385-1784; email Join Crain’s Detroit Business from a.m.-2 p.m. Citizens Research Council related issues, including positive and Olympia Entertainment/Detroit Red [email protected]; website: 5-9 p.m. Wednesday at the Colony of Michigan. Focus on how health care negative aspects of stock options, Wings. Townsend Hotel, Birmingham. www.womcomdetroit.org. Club, Detroit, to salute Crain’s is changing and what the changes will founders stock, fair market value, $55 members in advance, $70 at the Fastest Growing Companies. mean for businesses, providers and change in control and permissible door; $70 nonmembers in advance, $85 Crain’s Detroit House Party. 4-10 p.m. The July 15 CDB issue profiled Michigan residents. With Marianne payment dates under Code Section at the door. Contact: Michael Stozicki, Sept. 26. Crain’s Detroit Business, companies from Crain’s annual list Udow-Phillips, director, Center for 409A. Spark Central, Ann Arbor. Free. (248) 674-4991, Ext. 540; email: Michigan State Housing Development Contact: Alissa Carpenter, (734) 372- of fastest-growing companies. At Healthcare Research & Transforma- [email protected]; website: Authority. Guests will choose from six 4071; email: [email protected]; www.icsc.org/2013B09. tion; Jim Haveman, director, Michigan tours that include an overview of the the event, hear the stories on website: www.annarborusa.org. what’s driving their growth. Department of Community Health; people, places and neighborhoods that Paul Spaude, president and CEO, A Panel Discussion on the Future of make up Detroit’s core. Tours leave A panel discussion is to feature from Cobo Center. $60 Crain’s sub- Borgess Health, Kalamazoo; and Michigan Retailers Breakfast. 7:30- Media. 6 p.m. Sept. 24. Association David Carroll, vice president of scribers, $85 ticket and one-year sub- keynote speaker , 11:30 a.m. Sept. 18. Michigan Retail for Women in Communications. Lead- miscellaneous stuff, Quicken David Spahlinger scription, $99 nonsubscribers, $55 M.D., senior associate dean for clini- Committee, International Council of ing media professionals debate tech- Loans Inc.; Michael Ansley, Shopping Centers. With Oakland nology, shrinking owhership of news guests in groups of 10 or more. Contact: cal affairs at University of Michigan president and CEO, Diversified County Executive L. Brooks outlets and the outlook for jobs. Kacey Anderson, (313) 446-0300; email: Medical School. Dearborn Inn, Dear- Restaurant Holdings Inc.; Richard Patterson, Macomb County Executive With Jennifer Kluge, publisher of Corp [email protected]; website (includ- Beckman, CEO, Great Expressions born. $70 per ticket, $300 for five seats Mark Hackel and panelists Brian Magazine; Mary Kramer, group pub- ing tour previews): www.crainsde- Dental Centers; and Todd Sachse, or $575 for 10 seats. Contact: (734) 542- Lassaline, manager, concessions and lisher, Crain’s Detroit Business; troit.com/events. Join the conversa- CEO, Sachse Construction Co. 8001; website: www.crcmich.org. quality assurance, Wayne County Air- and Marjorie Sorge, executive director tion on Twitter with #cdbhouseparty. Tickets are $60 for subscribers, $99 for nonsubscribers, $85 with an offer that includes a one-year subscription to Crain’s, and $10 for guests in groups of 10 or more. For tickets and more information, contact Kasey Anderson at (313) 446-0300, or visit www.crainsdetroit.com/events. TUESDAY SEPT. 10 Capital Raise Meet-up. 9:30-11 a.m. Macomb-OU Incubator. Learn about funding options for a startup or early- stage growth-based business. With Mike Brennan, business commercial- ization and capital investment adviser for the Macomb-OU Incubator. Ma- comb-OU Incubator at Velocity Collaboration Center, Sterling Heights. Free. Contact: Joan Carleton, (586) 884-9324; email: macINC@oak- Ready to grow land.edu; website: www.oakland.edu/ macombouinc. Planning a Successful IPO. Noon-5:30 your business? p.m. PricewaterhouseCoopers LLP, R.R. Donnelley & Sons Co. A panel of experts will explain the process of going public. C-suite executives, con- trollers, general counsel, investor relations, private equity and venture capitalists are encouraged to attend. Let’s customize a plan to Detroit Athletic Club, Detroit. Free. Contact: Jessica Wayland, (313) 394- 6688; email: jessica.r.wayland @us.pwc.com; website: www.meet pwc.com/ipo2013. make it happen.

Powerful Female Leadership. 5:30-7:30 p.m. Michigan Association for Female Entrepreneurs. Interactive discussion and exercises on how women can un- leash their leadership potential. Red- ford Township District Library, Red- ford Township. Cost: $20 members, $30 CITIZENS BANK IS NOW FIRSTMERIT BANK. nonmembers. Contact: Tonya McNeal- Weary, (866) 490-6233; email: [email protected]; www.mafede troit.org. THURSDAY We’re here to help. SEPT. 12 At FirstMerit Bank, we make it our business to know your business. Michigan Values Veterans – Hiring How-To Conference. 7 a.m.-4 p.m. Ma- With over one hundred years of experience creating tailored solutions comb County, Macomb Community College. Learn how to start or to meet unique business needs, we can help you make the best choices strengthen efforts to recruit veterans. Macomb Community College, War- for your business. So, whenever you’re ready to chat, we’ll be here. ren. Free. Contact: Maria Zardis, (586) 469-5285; email: maria.zardis@mac ombgov.org; website: www.macomb business.com.

Garden Fresh: Developing a Success- ful Business Strategy. 6-8 p.m. Ameri- can Marketing Association – Detroit. With Dave Zilko, vice chairman, Gar- den Fresh Gourmet, who will share TO LEARN MORE, CONTACT: the story of how the Ferndale-based David Lochner, President, Michigan, company has grown to be one of the 248-324-8555 david.lochner@ﬁrstmerit.com. nation’s leading salsa and tortilla chip at or producers. The Iroquois Club, Bloom- field Township. $35 AMA members, $45 nonmembers, $15 students. Con- Member FDIC tact: Jessica Baird, (586) 610-6938; 1403_FM13 FirstMerit.com/MeetUs email: [email protected]; website: www.amadetroit.com. 20130909-NEWS--0032-NAT-CCI-CD_-- 9/6/2013 11:09 AM Page 1

Just three of the reasons Page 32 CRAIN’S DETROIT BUSINESS September 9, 2013 to book our bus. PEOPLE MIKE DONNA MITCH Driver Customer Service Mechanic CONSULTING NONPROFITS Emily Heintz to as- IN THE SPOTLIGHT Michael Rhoads You’ll love this Our girl Friday (... and If it ain’t broke, he’ll to director of sociate director, Great Expressions Dental Centers, man in uniform. every other day, too!) check it anyway.y y Michigan Venture school services, Bloomfield Hills, has named Ken Detroit Institute Capital Associa- Strohschein its tion, Ann Arbor, for Children, first chief from equity capi- Detroit, from information tal markets asso- sales manager, MagneGas Corp., ciate, Michigan officer. He had Chesterfield Town- Economic Devel- been vice president of ship. Also, Janette opment Corp., Kolodge to direc- Lansing. information technology. tor of develop- Rhoads ment, from execu- Heintz EDUCATION Strohschein, tive director, 51, earned a Wyman Lare to director of school secu- Mothers Against Drunk Driving bachelor’s Michigan state office, Troy. rity and crisis management, Warren Consolidated Schools, Warren, from Strohschein degree in Harold Love to director of safety and director of student affairs. management security, Downtown Detroit Partner- information systems from Kennedy- ship, Detroit, from commander, com- ENTERTAINMENT Western University, Cheyenne, mercial vehicle enforcement division, Wyo. Michigan State Police, Lansing. Leslie Raymond to executive di- REAL ESTATE rector, Ann Arbor Tyler Mitchell to accounting, audit and Film Festival, assurance manager, Doeren Mayhew Ryan Bertin to vice president, corporate Ann Arbor, from & Co. PC, Troy, from audit associate. services, Signature Associates Inc., visiting assistant Also, David Praet to strategic advisory Southfield, from senior vice president, professor, depart- manager, from consultant/senior ana- Paine/Wetzel Associates Inc., Chicago. lyst; to tax manager, from ment of art and John Burns tax associate; Kyle Lusczakoski to tax art history, Oak- manager, from tax associate; Stephen EOPLE GUIDELINES land University, Skok to tax manager, from tax associ- P Rochester Hills. Raymond ate; and Linda Pelczarski to interna- Announcements are limited to tional tax manager, from associate. FINANCE management positions. Send submissions to Departments, John Richards to LAW Crain’s Detroit Business, 1155 senior vice presi- Jeremy Cnudde Gratiot Ave., Detroit, MI 48207- NEWNEW MODELMODEL COACHESCOOACCHES dent and nvest- t to shareholder, 2997, or send email to tFREE WIFI t24/7 DISPATCH ment region man- Kemp Klein Law ager for East [email protected]. , Troy, from tECO-FRIENDLY Michigan and Firm Releases must contain the person’s EXPERT BOOKING CONSULTANTS Northwest Ohio, senior attorney, name, new title, company, city in t Butzel Long PC, AFFORDABLE RATES Huntington Na- which the person will work, former t tional Bank, Bloomfield Hills. title, former company (if not Troy, from busi- Also, Edward Nah- promoted from within) and former ness owner advi- hat to senior asso- city in which the person worked. sory strategist, ciate, from associ- Photos are welcome, but we cannot Richards 800-292-3831 indiantrails.com Comerica Bank, ate, Caputo Bros- guarantee they will be used. Costa Mesa, Calif. Cnudde nan PC, Warren.

It’s All Relative: Hosts a SPONSORED WEBINAR, Presented By Key Issues in Succession Planning for the Family Business

Only 30 percent of today’s family-owned businesses will be successfully passed along to future generations. with families often putting off succession planning until it’s too late. This webinar will lay out the process for succession planning and discuss the FREE WEBINAR: dynamics of operating a family-owned business. SEPT. 26 • 12-1 P.M. Discover ■ Weighing the options ■ Placing a value on ■ Developing of holding on vs. the business and leaders for the Register today at crainsdetroit.com/webinars exiting the family allocation of wealth next generation business among the family

> Donald Levitt > Jeffrey Smith > Frank Henke > Sean Cook president CEO attorney attorney Levitt Consulting Woodworth Warner Norcross Warner Norcross & Judd & Judd Financial 20130909-NEWS--0033-NAT-CCI-CD_-- 9/6/2013 4:49 PM Page 1

September 9, 2013 CRAIN’S DETROIT BUSINESS Page 33 Feeling lucky, Lions fans? You can buy raffle tickets at games

BY BILL SHEA The volunteers will be carrying being provided by Toronto-based one-third the size of National Foot- troit Tigers and Detroit Red Wings, CRAIN’S DETROIT BUSINESS Android tablets and mobile print- Bump 50:50, a division of Bump ball League games. and Tanenbaum said he expects ers. There also will be six raffle Worldwide Inc. Ford Field seats 65,000. Howev- decisions soon. The Detroit Lions were to launch kiosks on the concourse. Bump and the team signed a er, NFL teams have eight home Additional details about the Li- an inaugural season-long digital Buyers will receive a lottery- one-year deal under which the games, compared with 41 for NHL ons raffle plans: 50/50 raffling program during Sun- style ticket printed from volunteer company gets a percentage of all and NBA franchises. Ⅲ The winning number will be day’s home opener at Ford Field, or kiosk mobile printers, the Lions raffle tickets sold at Ford Field, Other pro sports teams using announced and displayed on stadi- making the team only the third to said. said President Dan Tanenbaum, Bump include the Detroit Pistons, um signs in the fourth quarter. do so since the National Football The cash-only tickets are three who founded Bump in 2010. St. Louis Blues, Florida Panthers, Ⅲ After the game, the number League relaxed its prohibitions on for $5, seven for $10 and 25 for $20. Bump 50:50 clients averaged Chicago Blackhawks, Winnipeg Jets, and more information will be at such raffles last year. Proceeds will benefit the team’s $84,000 a game in total raffle sales, Vancouver Canucks, Atlanta Hawks Detroitlions.com/5050. Fans can buy the cash-only raffle “Living for the City” community according to an April report from and Chicago Bulls. Ⅲ Winners have 30 days to tickets during games from Henry outreach initiative and Henry Sports Business Journal. That’s The NFL had banned 50/50 char- claim their winnings. Ford Health System volunteers who Ford Health’s Josephine Ford Cancer based on National Hockey League ity raffles as part of its anti-gam- Bill Shea: (313) 446-1626, will be wearing “safety green” Lions Institute, the team said. and National Basketball Association bling prohibitions. [email protected]. Twitter: 50/50 Raffle shirts, the team said. The digital raffle technology is games, which generally are half or Bump has had talks with the De- @bill_shea19 MARKET PLACE REAL ESTATE

ANNOUNCEMENTS & BUSINESS OPPORTUNITIES COMMERCIAL PROPERTIES MISCELLANEOUS WATERFRONT PROPERTY SERVICES 18711 W. TEN MILE ROAD SOUTHFIELD, MI ATTENTION MARKETING » Priced to sell: $225,000.00 DONATE REAL ESTATE BEST DEAL BUSINESS SERVICES COMPANY OWNERS! » 6,200 SF lower level + Full Market Value Tax Deduction. ENTREPRENEUR LOOKING TO BUY 3,000 SF second floor In Harbor Springs Does Your Business Need a A privately held, international marketing » Excellent signage & visibility Fast And Easy. » Positive cash flow at "Second Opinion?" company is looking to expand through current occupancy We Do All Paperwork. An advisory board will serve as an effective acquisition. If you are looking to sell your 248.324.2000 (248)408-6027 tool in ensuring the company is moving in marketing firm, let’s talk. www.friedmanrealestate.com How2donate.com the right direction. Contact the owner directly, Learn how a Board of Advisors can help. 100% confidential. INDUSTRIAL PROPERTY RETAIL SPACE [email protected] (248) 642-3287 [email protected] (248)891-2020 AVAILABLE NOW Sandusky, Mi Retail Center for Lease FINANCIAL SERVICES Taylor/Romulus Area Near Detroit Metro Airport 8,000sf, lease rate is only $2.95/sf! INVESTMENT OPPORTUNITIES 4,000 to 80,000 sq. ft. Centrally located next door to Tractor t6MUJNBUF'BNJMZ$PNQPVOE Ideal for logistics, mfg., service co., distribution, Supply, Fresenius Medical and Rite Aid. t1SJWBUF#FESPPNT #BUIT office warehouse etc. Call for Availability t'FFU4BOEZ-BLF.JDIJHBO 24.99% APR PAID Call John (248) 376-0631 or t$PNQMFUF'VSOJTIJOHT*ODMVEFE Yvon Rea 734-946-8730 or MONTHLY visit our website www.reaconstruction.net Vince (586) 489-0150 t Investment guaranteed by letter of credit from major bank. INTERNATIONAL REAL ESTATE RESIDENTIAL PROPERTY +PF#MBDIZ $100,000 minimum investment. CRANE BUILDING FOR LEASE Residential Estate Site, 10 ACRES +/- FNBJMKPF!KPFCMBDIZDPNXFCTJUFKPFCMBDIZDPN 400’ Along Franklin Hills CC (private) TRAVEL SERVICES (248) 506-9968 TWINSBURG, OHIO 44087 $BMMBOZUJNFCFUXFFOBNQNEBZTBXFFL ROCKRIDGELOT.COM $1.9M 248.514.0685 )PXBSE4U 1FUPTLFZ .* 120,000 sq. ft., includes; Mona Parlove, Hall & Hunter, Realtors A Quick, Affordable Getaway •12,000 sq. ft. Office Space Smiths Full Service Travel is currently offering a •Three 60-foot Wide Bays AUCTIONS 3 night cruise with Norwegian Cruise Lines to the Bahamas starting as low as $417.98 per •Eight Class-D Overhead Cranes person! Cruise dates will be 2/14/14 to 2/17/14 •10-35 Ton Capacity with Magnets This is a limited time offer. •Plus Jib Cranes You must call before SEPTEMBER 15th. Easy access to interstate and Ohio Turnpike. ABSOLUTE Payment Options Available! Offices Recently Updated. (313) 567-0543 | [email protected] Contact: Jim Fleming (440) 821-5830 OR Kirk Mooney (330) 221-4640 BUSINESS & AUCTION INVESTMENTS MONEY PARTNERS WANTED LUXURY PROPERTY ADOBA HOTEL LARGE INVESTMENT FIRM, TH BUSINESSES FOR SALE REAL ESTATE BUY BACK DEALS. 8 PROPERTIES - SEPT 18 5PM 10 TO 12% INTEREST SHORT TERM. Barrier Free Equipment Company for Sale Stairway Lifts, Wheelchair Ramps, Residential/ CALL PETER: (800) 826-2517 Commerical Wheelchair Lifts. Est. 1965. Inquiries Invited. (313) 520-0909 OR VISIT WWW.MID-CITY.NET

MUST SEE 3700’ Executive Residence in Washington Twp. JOB FRONT $549,000 • 5BR, 4.5 Baths, Split Level • Commercial Properties in Westland & Taylor MANAGEMENT POSITIONS AVAILABLE Dream Granite Kitchen/Stainless Steel Appliances • Cherry Cabinets • Library with Judges Paneling Condo in Dearborn Heights Chief Financial Officer/Director • Master Bedroom/Bath with 2 Walk-In Closets Duplexes & Triplexes in Dearborn of Administration • Finished Lower Level with Media Room Tamarack Camps is looking for a strategic • Granite Wet Bar, Ballroom Etc. and analytic thinker to lead the financial • See MLS # 213081389 Call for Bid Packet & Previews The Cornerstone Charter Schools seeks affairs of the organization. Establish CONTACT: LARRY WILLIAMS (248) 917-2323 an experienced, creative and www.RoseAuctionGroup.com results-driven Chief Operating Officer policies that ensure highest professional standards are met; forecast long-range Real Living Kee Realty Rose Auction Group, LLC (COO) 210 E. University 877.696.7653 The COO is a critical part of the outcomes and develop business Rochester, MI 48095 Beth Rose, Auctioneer organization’s senior leadership, providing strategies. Must have minimum 6 years [email protected] vision and direction on growth and related exp. CPA required. For full job improvement. The COO provides servant leadership to the operations team: human description, visit ActNow.jobs. Please The Crain’s reader: resources, facilities, information technology, e-mail resumes to Nancy at Call Us For Personalized compliance, marketing, grants, and quality [email protected] systems. The COO also plays a critical role 29.2% are with companies in business planning, budgeting and Service: (313) 446-6068 strategy. This is an outstanding opportunity SALES contemplating moving/ for an energetic leader wanting to help an FAX: (313) 446-1757 innovative, student-focused organization expanding. Help them grow. To apply and view this job description Detroit Regional Chamber E-MAIL: [email protected] in its entirety please visit our website Membership Sales www.cornerstonecharters.org INTERNET: ﬁnd you by advertising in Sell memberships to the Detroit Regional Chamber. Great pay and benefits. www.crainsdetroit.com/section/classifieds Crain’s Real Estate section. Call or email today for information Salary + commission. Knowledge of business community and aggressive sales See on a custom advertising plan! ability required. Crainsdetroit.com/Section/Classifieds 313.446.6068 • FAX: 313.446.1757 [email protected] Apply Now At: for more classified advertisements E-Mail: [email protected] 313.446.6068 detroitchamber.com/opportunities 20130909-NEWS--0034-NAT-CCI-CD_-- 9/6/2013 4:47 PM Page 1

Page 34 CRAIN’S DETROIT BUSINESS September 9, 2013 Chronicle owner used city pension fund loans for company

BY BILL SHEA “We mutually agreed that in order Times has never missed a payment Times this week. $4 million,” said Berg, a partner CRAIN’S DETROIT BUSINESS for the company to grow, we needed or been in default on its pension A story published by the rival in, and vice president of, Detroit- more flexibility and working capital. loans. He also said the company Michigan Citizen on Thursday sug- based public relations agency Berg The owner of Detroit’s largest We agreed to convert debt to equity was profitable last year, without gests Real Times received $4.1 mil- Muirhead and Associates. weekly African-American newspa- to give the company breathing room divulging specifics. lion from the city to publish legal He said the city has paid the per used $15.5 million in city pen- to expand,” Jackson said. “The idea Jackson became the Chronicle’s notices. Chronicle $50,000 so far this year, sion fund loans to pay for debt con- was they would make it a longer- publisher in December 2012 after The Citizen story implies that and $112,000 in 2012 — an election solidation and an expansion term investment. The pension board the death of Sam Logan, who had Real Times got a $4.1 million check year that required additional legal strategy, the company CEO said. was very supportive.” been publisher, and face of the from the city, but the city and Real notices, he added. A story Friday in The Detroit Real Times has paid the fund $3 newspaper, since the mid-1980s. Times told Crain’s that the amount The newspaper was paid $99,000 News lays out al- million and will pay it $3.5 million Jackson and Logan were part of is actually a cap on legal notice ad- by the city in 2011, Berg said. leged connec- in the next year, Jackson said. the Real Times ownership group vertising on a contract that’s been The contract was approved by tions between The publishing company’s own- that bought the Chronicle and sev- renewed annually since 1996 — and Orr in August, while the city coun- the loans and De- ership board decided to approach eral other newspapers from Chica- that annual spending by the city on cil was in recess. The contract, troit-based Real the pension board for loans in 2007 go-based Sengstacke Enterprises Inc. such ads is typically around along with one other involving Times Media Inc., to help keep Real Times afloat. in 2003 in a cash and debt assump- $100,000. Real Times, was provided to the publisher of the Johnson said the company had tion deal that the Chicago Tribune The city pays for such ads only council on Tuesday as an FYI. Michigan Chron- various outstanding debts and valued at nearly $11 million. after they’ve published. icle; ex-Mayor needed to grow. That deal included $3 million in The entire amount the city on Kwame Kilpat- “The capital was intended to cash upfront, a five-year $3 million spent on legal ads with the Chroni- Money for Paradise rick; and indict- Jackson consolidate the debt and execute promissory note, a bonus interest cle since 2006 is not much more At the same time as the legal no- ed ex-Detroit the (growth) strategy,” he said. payment after five years or 5 per- than $500,000 — a spending total tice deal, Orr also approved giving Treasurer Jeffrey Beasley. “We used it to consolidate those cent of the fair market value of the confirmed by the newspaper and Paradise Valley Real Estate Holdings Beasley’s indictment in 2012 for debts into one instrument.” company, whichever is greater, Detroit Emergency Manager LLC — its resident agent is Hiram taking bribes and kickbacks, and Jackson did not say how much the Tribune reported. Kevyn Orr’s office. Jackson — $900,000 in federal fund- various court records, suggest Real debt was consolidated, nor did he Also included in the deal were “There never has been a time ing that had provided to Detroit, Times received the pension invest- disclose the terms. other African-American newspa- when the city came close to spend- with the money to pay for con- ment after making donations to Kil- The pension fund loans also paid pers: the Chicago Defender, New ing that much ($4.1 million),” Orr struction, renovation and rehabili- patrick’s civic fund, The News re- for the launch of a special events Pittsburgh Courier and the Mem- spokesman Bill Nowling said in an tation of property over 24 months ported. division, which does 75 to 80 phis (Tenn.) Tri-State Defender. email. at 1452 Randolph St. Real Times CEO and Chronicle events annually, Jackson said. Real Times’ holdings also include Detroit City Council President That’s the proposed Paradise Publisher Hiram Jackson on Fri- The $15.5 million also paid for FrontPage Detroit, which Logan Saunteel Jenkins told The News Valley location of a new headquar- day told Crain’s that his checks to an effort to commercialize the founded after leaving the Chronicle that the city has spent about ters for Real Times Media. the civic fund — Kilpatrick was Chronicle’s archive of more than 1 for a time beginning in 2000; the At- $557,000 total on the contract. The corporate offices will be on convicted in March of misusing million photos, he said. lanta Daily World, added in 2012; Bob Berg, a spokesman for Hi- the third floor, the Chronicle on civic donations for his own ends — “We have an extraordinary li- and Who’s Who Publishing. The ram Jackson, told Crain’s on the second floor and to-be-deter- were unrelated to the pension brary of images that really articu- Chronicle, founded in 1936, has a Thursday that the city has paid mined retail on the ground floor, fund’s two loans. late the African-American experi- circulation of more than 40,000. Real Times around $500,000 since Jackson said. Neither Real Times nor any of ence that goes back a hundred Real Times also offers multime- 2006, when the company was Real Times bought the building its executives have been accused years,” he said. dia marketing and promotions ser- formed. The original contract with for $550,000 from the Detroit Eco- of wrongdoing. The money also paid for Real vices, including public relations the Chronicle dates to Jan. 17, 1996, nomic Growth Corp., he said. The pension fund voted on Aug. Times’ acquisition of Columbus, and broadcast, print and digital he said, and it has been renewed All board approvals for the pro- 22, 2007, to loan Real Times $7.5 Ohio-based Who’s Who Publishing. production options. annually. ject are in hand, Jackson said, and million and on Sept. 17, 2008, ap- The price wasn’t disclosed. “That’s an authorization for only construction and other per- proved an $8 million loan. The money did not pay for the running legal notices. They gener- mits are needed to begin work. The $15.5 million was later con- acquisition of an Atlanta newspa- More media scrutiny ally don’t get paid until the invoice Bill Shea: (313) 446-1626, verted into a 30 percent ownership per last year, Jackson said. The pension fund loans are not runs. It’s a ceiling for $4 million. It [email protected]. Twitter: for the pension fund, Jackson said. Jackson was adamant that Real the only media scrutiny on Real doesn’t mean they’re going to get @bill_shea19 Tax or fee: Court ruling may impact DWSD stormwater runoff billings

BY KIRK PINHO ing and yard waste collection with The department said in an Aug. CRAIN’S DETROIT BUSINESS general tax revenues. The stormwa- 29 news release that “runoff The charges, which in some cases were ter management charge was de- charges have appeared on the bills Is it a tax or a fee? signed to replace that, according to of the majority of (commercial) cus- That’s the crux of a recent Michi- billed retroactively as far back as six years, court documents. tomers since 1984.” gan Court of Appeals ruling regard- William Wolfson, chief operating The DWSD has also accepted re- ing stormwater runoff charges upset affected commercial property owners and compliance officer and general sponsibility for the error. that the Detroit Water and Sewerage counsel for the DWSD, said the de- “It’s our fault. We accept respon- Department is reviewing in light of when about 1,200 learned the DWSD had partment is reviewing the implica- sibility for not doing this the right some city businesses’ concerns mistakenly not assessed them. tions of the Jackson case. way the first time,” said DWSD about a DWSD stormwater runoff “It’s our intention to look at and spokesman Bill Johnson. “We un- charge that hadn’t been billed for amendment, in part, prohibits in- Grand River watershed.” apply whatever lessons we think derstand this is a shot to some cus- in years. creasing existing taxes or impos- The court also ruled that a 1998 are applicable from that case to our tomers, so we are working with The charges, which in some cas- ing new ones without a vote of the Michigan Supreme Court decision, operations,” he said. “That being them instead of being confronta- es were billed retroactively as far electorate. Bolt v. Lansing, requires that “a said — and we also have not com- tional with them.” back as six years, upset affected “A true fee confers a benefit permissible utility service charge pleted our review — but we do be- The charges only affected Detroit commercial property owners this upon the particular person on is one that ‘reflects the actual costs lieve there may be some differences businesses because the DWSD is spring when about 1,200 learned whom it is imposed, whereas a tax of use, metered with relative preci- in our operation and the city of not responsible for stormwater the DWSD had mistakenly not as- confers a benefit on the general sion in accordance with available Jackson.” drainage services in suburban sessed them. public. … In the present cases, we technology, including some capital He declined to elaborate. communities. They also did not af- Some business owners told cannot readily identify any partic- investment component.’” fect residential consumers. Crain’s in April that they expected ularized benefit the charge confers The court ruled that there was- Some businesses have appealed to owe tens of thousands of dollars on the property owners that is not n’t a close enough relationship be- Opposition grows the charges — $600 per month for because of what the department also conferred upon the general tween the amount of runoff on a Ken Gold, an environmental law each acre of impervious surface, has said was a billing oversight public,” the ruling states. land parcel and the management specialist and partner with Detroit- such as parking lots and roofs — but uncovered by an internal audit. The Jackson charge benefits charge. based Honigman Miller Schwartz and Johnson did not know exactly how “not only the property owners sub- The ordinance that imposed the Cohn LLP, declined to say whether many have done so or if any charges ject to the management charge, but fee for the city’s stormwater man- the businesses he is advising will have been reduced or erased. Violation of Headlee? also everyone in the city in rough- agement system’s operation and challenge the fees the court, and “The department will continue Published Aug. 1, the appellate ly equal measure, as well as every- maintenance is also effectively whether the Jackson case will fac- to evaluate each case individually court’s ruling determined the Jack- one who operates a motor vehicle mandatory, making it a tax instead tor in any possible legal action. and make the appropriate adjust- son City Council’s 2011 approval of a on a Jackson city street or road- of a fee, the court’s ruling reads. “We’ve been contacted by more ments, if any, to the customer’s stormwater management charge way or across a city bridge, every- Before the Jackson council’s ap- and more people who are extremely bill,” Wolfson said. on city property owners was un- one who uses the Grand River for proval of the charge, the city paid irate and upset” about the charges, Kirk Pinho: (313) 446-0412, kpin- constitutional because it violates recreational purposes downriver for a variety of services, including he said. “There is a real groundswell [email protected]. 1978’s Headlee Amendment. The from the city and everyone in the street sweeping, catch basin clean- of opposition and anger.” Twitter: @kirkpinhoCDB 20130909-NEWS--0035-NAT-CCI-CD_-- 9/6/2013 4:55 PM Page 1

September 9, 2013 CRAIN’S DETROIT BUSINESS Page 35 Center: Debt-free, revitalized facility aims for $2M in revenue ■ From Page 3 ter during the first half of the year, schools get ramped up and come ter until its closure and has contin- researchers from local universi- such as First Lego League or First in which is comparable to the num- back to visit us,” Issner said. ued to provide support to the Michi- ties to conduct research on how Michigan and its robotics competi- ber that attended during the same School field trips are $6 per child, gan Science Center through a the center’s programs are impact- tion, Issner said. period before the center’s closure, but the free admission the Detroit In- $50,000 gala sponsorship in 2012 and ing next-generation STEM profes- “When you see how engaged the Issner said. His goal for a full year stitute of Arts offers for residents of $100,000 in grants and corporate sionals, said Julie Johnson, direc- kids are when they’re visiting, it is 300,000-400,000 visitors. Wayne, Oakland and Macomb contributions this year, he said. tor of education. was tragic to have (the center) Visitors were drawn not only by counties in exchange for millage The center’s informal STEM ed- On the program side, the science closed as long as it was,” said Dave the center’s permanent exhibits but support presents a challenge in at- ucation is “very instrumental in center has reached another 36,000 Campbell, president of the Detroit- also by its traveling exhibits. The tracting school groups, he said. terms of being able to inspire children through visits with edu- based McGregor Fund, which has pro- center reopened with “Bodies Hu- To augment earned revenue, the youth to embrace science and tech- cational programs at schools vided grants for its operation. man: Anatomy in Motion,” and is science center is looking for con- nology,” Glowiak said. STEM is an through Michigan, Ohio, Indiana To open the door for the Michi- now hosting “The Science of Rock tributions to make up the remain- acronym for science, technology, and Canada, she said. gan Science Center to once again ’n’ Roll” through the end of the year. ing $2.5 million of its 2013 budget. engineering and math. Back at its Detroit home, the apply for grants from the founda- Memberships also have been Foundations, automotive com- The science center is also a core center is considering a new strate- tion, McGregor’s board voted in promising. The center offered peo- panies and others like ITC Holdings institution for the city as well the gy to only bring traveling exhibits June to convert a $300,000 grant it ple who had been members of the Corp. have been supportive, Issner region in serving as both an educa- when they’re significant to its mis- made to the former Detroit Science Detroit Science Center a four- said. tional institution and a tourist at- sion, rather than as a regular part Center in 2007 for uncompleted im- month free membership to the “We have a wide range of discus- traction, he said. of its business, Issner said. provements to the planetarium to Michigan Science Center. As of the sions ongoing, some more firm than The center, which is operating “If the right traveling exhibit an operating grant, Campbell said. end of June, the reopened center others, but I expect to meet our with about 40 full-time-equivalent comes up and it makes sense for us “The leadership at the Michi- has more than 3,000 members, Iss- goal,” he said. employees, plans also to seek multi- to bring it in, we’re not going to gan Science Center has done a re- ner said. It’s aiming to have 4,800 Chrysler and its foundation have year grants to make its operations walk away,” he said. ally good job of reorganizing and by year’s end. been longtime supporters of the sci- more secure and enable it to look at “But we’re not going to do ex- getting the doors open again,” The center hosted 21 weddings, ence center, having led the capital ways to operate more strategically, hibits just for the sake of doing Campbell said. corporate events and other special campaign for the construction of its Issner said. them. We’re going to do ones that “We did not want that old com- events through June and has an- building in the 1990s, said Brian That could include everything make sense for us.” mitment to the prior organization other 14 booked between now and Glowiak, director of civic relations from refurbishing and buying new In between the exhibits it to interfere with the new organiza- year’s end, said Todd Slisher, di- and community engagement at exhibits to looking at how the sci- brings, the science center is con- tion’s ability to clear the barriers rector-visitor experiences. Chrysler Group LLC and vice presi- ence center fits into next-genera- sidering using the 9,800 square feet and get moving forward positively.” “We’re on track to raise the oth- dent of the Chrysler Foundation. tion science standards for the state, of traveling exhibit space in its Sherri Welch: (313) 446-1694, er $1 million this year, but a lot The foundation was contributing he said. building to regularly host other [email protected]. Twitter: will depend on how quickly to the former Detroit Science Cen- It could also include bringing in groups doing STEM programs @sherriwelch

Willow Run: Walbridge proposes connected vehicle R&D site ■ From Page 1 for the Revitalizing Auto Communities firm, is creating its own unpopulat- Krutko said the center should be senger vehicles, including com- in a land swap with the Wayne Coun- Environmental Response Trust. ed city center for technology testing, able to attract nonautomotive commercial vehicle, military and be- ty Airport Authority and space used Walbridge entered the deal with including connected and auton- panies, like Cisco Systems Inc. and yond, Wallace said. for RACER’s cleanup oversight. RACER, which owns the property. omous vehicles, in Albuquerque, Google Inc., to the center. Corey Clothier, co-founder and The air museum is trying to The trust was formed by the feder- N.M., called the Center for Innovation, “I think we’re likely to see sig- board member of proposed robot- raise a reported $8 million to sepa- al government in 2011 to liquidate Testing and Evaluation, or CITE. nificant companies utilize this fa- ics research consortium, laborato- rate and preserve the 175,000- GM’s holdings and clean up the en- CITE will represent a city with a cility and potentially want to be lo- ry and education center RobotTown square-foot World War II bomber vironmental contamination at its population of approximately 35,000 cated next to it,” he said. “We’ve Inc., said the consortium is inter- plant on the site. 89 sites across 14 states. people and will be built on roughly seen that kind of interest already.” ested in becoming a tenant in the Ford Motor Company built Willow It remains unclear whether Wal- 15 square miles. The site should also represent an Willow Run center. Run Airport in 1941 to manufac- bridge would seek a third-party op- The National Highway Traffic Safety economic boon to an area devastat- “With RobotTown as a tenant, a ture the B-24 Liberator bomber for erator for the center. Administration said in July it is con- ed by plant closures, Krutko said. test-bed organization, we’ll hopeful- U.S. forces. sidering mandates for vehicle-to-ve- “This is a tremendous opportuni- ly be a pole organization and get Ford built 8,685 B-24s from 1942 hicle communication standards. ty for Ypsilanti Township, the sur- businesses from around the coun- until the end of World War II in Supply and demand Richard Wallace, director of trans- rounding community and all of try to do testing at this facility,” 1945, according to the museum. However, Walbridge is obligated portation systems analysis for the Southeast Michigan,” Ypsilanti Clothier said. “Having a communi- The bomber plant employed more to meet benchmarks over the next Ann Arbor-based Center for Automo- Township Supervisor Brenda cations infrastructure available than 42,000 people and produced 12 to 14 months to gain ownership tive Research, said the region needs Stumbo said in a statement. “I be- and partners available and a devel- one bomber every 59 minutes. of the site, including an approved to be home to a connected vehicle lieve this will usher in a new era of opment group on site would be real- The bomber plant was the work- redevelopment proposal by Ypsi- testing site. collaboration and cooperation be- ly great.” place of Rosie the Riveter, who be- lanti Township, Rasher said. “If NHTSA is going to be mandat- tween the public and private sec- RobotTown is a concept launched came an iconic female figure dur- Terry Merritt, group vice presi- ing V2V safety, we need a place that tors. This development will bring in 2009 to create a robotic innova- ing the war. dent for Walbridge, said the pro- can say these comply with the rules high-tech R&D, excellent jobs, a tion, incubation, testing and educa- GM acquired the plant in 1953 ject remains fragile until certain and are safe on the roads,” said. stronger tax base and be a source of tion center to push advancements and manufactured and assembled requirements are met. “Why not Ypsilanti (Township) in- great pride for our region.” in robotic technology. transmissions at the site until 2010. “The MOU with RACER requires stead of some other location?” Clothier, also a contractor con- In 2005, GM conducted a $200 we enter into a development agree- Paul Krutko, president and CEO Robots and test tracks sultant to U.S. Army Tank-Automotive million upgrade to 1 million ment with Ypsilanti Township and of Ann Arbor Spark, said the economic Research, Development and Engineer- square feet of the nearly 5 million- form alliances with local communi- development Krutko said stakeholders want to ing Center in Warren, said the site square-foot plant before consoli- ty groups to help secure public in- agency brought include a large urban-environment could potentially service the test- dating operations into its Toledo centives,” Merritt said in an the idea to Wal- test track on the site for testing of ing of autonomous military vehi- transmission plant in 2009. emailed statement. “The idea and bridge after re- connected and autonomous vehicles. However, he said TARDEC is The RACER Trust took over the concept of a connected vehicle cen- ceiving consider- cles. not involved in the Willow Run de- site in 2011 and in July of that year ter is in its infancy. able interest in “Part of the vision is to create an velopment. fielded a reported $9 million offer “There is considerable investi- such a center. environment like a downtown from Grosse Pointe Farms-based gation, study, research and inno- Ann Arbor city, a location that replicates a va- developer A.E. Equities Group Holdings vation, including local community Spark released a riety of intersection types, differ- History becomes the future LLC. A.E. Equities told the Detroit white paper in support, required over the next 12 ent kinds of pavements and cross- Demolition of the entire site is ex- Free Press it had secured redevelop- March calling months to determine the scope, vi- ings,” Krutko said. “It won’t be pected to begin in the next four to ment commitments from various Krutko for the center on ability and cost of the project.” designed to test the endurance of eight weeks, RACER said in a news companies, including Chinese au- the Willow Run site. However, local automotive re- the vehicle like other tracks, but release. Detroit-based Devon Industri- tomaker BYD Auto Co. Ltd. searchers and economic develop- “We’re very pleased that the for the testing of controls through al Group LLC will demolish the site, However, the deal fell through. ment groups say Southeast Michi- RACER Trust was able to make this a variety of intelligent transporta- with Bloomfield Hills-based MCM The RACER Trust has sold sev- gan needs the center to compete decision to see if Walbridge can tion system components.” Management Corp. supervising. eral former GM sites in Pontiac; with similar centers in develop- turn this dream into a reality,” Krutko said the center would also The proposed deal will not affect Wyoming, Mich.; Parma, Ohio; ment in Texas, South Carolina and Krutko said. “These new technolo- likely include internal software and the current plan to redevelop a por- Moraine, Ohio; and elsewhere. Mexico and to prepare for poten- gies are the next big thing in trans- hardware testing facilities, a large tion of the site for an expansion of The Willow Run site is the largest tial federal mandates. portation and this region has been server environment, staging struc- the nearby Yankee Air Museum, under the trust. Cle Elum, Wash.-based Pegasus the leader for well over a century, tures and garage space. Rasher said. Rasher also said other Dustin Walsh: (313) 446-6042, Global Holdings LLC, a private inter- and we want to maintain that posi- The center would expand be- areas of the site will not be included [email protected]. Twitter: national technology development tion for what’s next.” yond testing and validation of pas- in the deal, including land involved @dustinpwalsh 20130909-NEWS--0036-NAT-CCI-CD_-- 9/6/2013 4:48 PM Page 1

Page 36 CRAIN’S DETROIT BUSINESS September 9, 2013 Jackson: Students learn manufacturing’s fun, once you drill down ■ From Page 3 The camp is designed to teach the students transition from one the students that manufacturing is camp to the next as they get older. not dead in this state and can pro- One of those was Tristan Chan- duce highly skilled jobs that re- dler, 15, of Manchester. He had main in high demand. previously attended the “I Can The program, run by the Acade- Make It!” camp and recently at- my for Manufacturing Careers, along tended Machining U for the second with its other supporting summer summer in a row. camps and its education programs “I’m glad I did it,” Chandler used in local schools beginning in said. “I wasn’t into it before I kindergarten, are unmatched in came, but now I think it could be a the state in terms of their breadth really good career.” and scope, said Delaney McKinley, Chandler said he may even pur- director of human resource policy sue a career in automotive manu- for the Lansing-based Michigan facturing. “This is good experi- Manufacturers Association. ence,” he said. “They have been the model for Rayl said another important the entire state,” McKinley said. piece, aside from the camps, is im- “It’s the only area or program in plementing things like the Engi- the state that has a seamless K-16 neering is Elementary program program that gets kids interested developed by Boston’s Museum of in manufacturing careers.” Science in classrooms in the area. The results are just now starting It encourages young students to to develop as the first two classes think about engineering problems of camp graduates are now of in innovative ways from the earli- working or college age and have est of ages. graduated from high school. “We’ve taken all those pieces Bill Rayl, executive director of and parts and developed this the Jackson Area Manufacturers Asso- pipeline,” Rayl said. “You can’t ciation, which sponsors the Acade- just say ‘I’m going to run a camp my for Manufacturing Careers, for fourth-graders.’ If you spark in- said 31 students attended one or PHOTOS BY LON HORWEDEL terest in these kids and there’s no both of the first two years of the Above: Ben Marsh, 14, of Jonesville uses a power drill to poke holes into the Plexiglas tabletop of the metal end table he follow-through, that’s not a camp in 2007 and 2008. made in the Machining U class. Below: Kaleb Revere, 12, puts his team’s underwater remotely operated vehicle into the pipeline.” Of those, more than a half dozen Jackson High School pool for a test run. For the academy, the main focus have gone on to find full-time em- has always been on the adult ap- ployment at local manufacturers or Academy for Manufacturing Ca- prenticeship program, which are in college studying engineering reers, surveys the shop floor at the helps retrain workers, or assist in- or a similar discipline, Rayl said. Jackson Area Career Center like a dividuals in obtaining the skills Because the camp is largely proud mother, as the students at needed to obtain manufacturing aimed at students ages 12-14, those the manufacturing camp move jobs. who have attended since 2009 are from the machining lab to the weld- But as that program was being still in high school. Rayl said they ing area, each focused on their task built, the manufacturers in the hear often from current high school at hand. community also talked of the need students who attended the camps “These kids — these are the fu- for creating the future workforce. when they were younger and are ture,” Norris said. “This is a long-term workforce now working in the summer During the economic downturn development strategy that was months at local manufacturers. in 2009, when General Motors and built by the manufacturing com- Rayl said the goal isn’t just to get Chrysler were headed toward bank- munity,” he said. the most amount of kids involved ruptcy and the suppliers in the in a manufacturing career, but to Jackson area were struggling, a lot give students more of a practical of parents had a dim view of manu- Making it work understanding of math and science. facturing, said the camp’s welding Norris said she and Rayl have “You can’t be what you can’t see, instructor, Gale Brockie. traveled the state to meet with oth- and these programs are all meant Coupled with the decline in the er groups about their training pro- to help kids see a bigger possible fu- number of parents who have the grams and said she thinks other ture for themselves and give them tools and capability to do in their regions haven’t emulated the suc- tools and skills that can help them garage some of this work that their cess in Jackson because it takes an realize that future,” Rayl said. children are exposed to, most stu- involved manufacturing commu- McKinley said her association dents would not see these ma- and the other students take notice. somewhere else over the summer, nity and champions who under- has been encouraging its members chines and what they can do if it Later, once a student graduates he said. stand it. to become involved with programs wasn’t for a camp like this, he said. from high school and opts to pur- Manufacturers “are salivating “They all want to do something, like this around the state. But even during the downturn, sue a journeyman’s card, he or she over really talented kids that have and they all love what we’re do- “We believe this is what it’s go- Norris said, the Machining U camp can increase pay to $18 to $20 an exposure to the skills they need,” ing,” she said. “The manufacturing to take to solve the issue with a has not seen an attendance drop; it hour. McKinley said. ers are not going to come together lack of skilled workers in the takes 20 students each summer. McKinley said this is a great Roger Watson, manager of injec- once a month and make it hap- state,” she said. This year, the camp had a wait- selling point, because there aren’t tion molding at Jackson-based TAC pen.” A report released this summer by ing list to get in, Norris said. many careers where someone can Manufacturing Inc., spent a day vol- She said without the support the state’s Bureau of Labor Market Infor- “That negative stereotype is start out making $40,000 a year, unteering at the camp and work- from a local manufacturing com- mation and Strategic Initiatives showed changing,” Norris said. “It takes even before earning a college de- ing with the kids. They will come munity to offset the cost, by donat- that about 15 percent to 20 percent of parents, it takes teachers and coun- gree. into the working world with the ing raw materials and personal ex- the skilled trades workforce in the selors and hearing these success “If they have enough fore- skills his company needs, he said. pertise, a program will never get manufacturing sector is age 55 or stories and knowing that the manu- thought, it can be a gold mine,” “We could be seeing future em- off the ground. older, and there is an increased de- facturing jobs are out there.” Lienhart said. ployees here already,” he said. Norris said companies in the mand for new skilled workers. During the camp, the owners and Jackson area are quite generous It also showed there was a 20 per- managers of manufacturing com- with their donations because cent increase from 2012 to 2013 Good pay to start panies will attend the camp to help The program “they know we are training their in online job ads in Michigan The jobs students are taking mentor students or assist in teach- Norris was hired in January future workforce,” she said. for skilled trades positions. The right out of high school, or during ing a particular skill. 2005, before any of the youth work- McKinley said the reason the state’s employment website, the summer break, pay around $15 But, like college football coaches force pipeline existed. program in Jackson has been so www.mitalent.org, shows there are an hour on average, which also attending a high school football That summer, the first youth successful is because of Norris and now more than 5,000 manufactur- helps attract interest, said the game, these manufacturers are camp — called “I Can Make It!” — Rayl, who have been the champi- ing jobs available, and more than camp’s machining instructor, Joe also eyeing potential recruits. kicked off. In the camp, students in ons of it from the beginning. 500 are specifically for welders. For Lienhart. Often, Lienhart said, many of grades four through six learned to “There’s not enough Bill Rayls the long term, job growth in the Lienhart, who also teaches the the older students begin meeting design, build and test a variety of and Annette Norrises out there,” skilled trades sector is expected to high school machining class at the with company officials and taking different projects. McKinley said. “I’ve never seen increase 7.4 percent by 2020. Jackson Area Career Center, said tours of their facilities. Eventual- After the students finished with two people more dedicated to kids students who take these jobs over ly, some are spoken for, and when that camp, they asked Norris what and to this industry.” the summer often come back to they are offered a job by another they could do next, she said, which Chris Gautz: (517) 403-4403, First-hand understanding school in the fall with a car, or a firm, they have to decline because is where the idea for the Machin- [email protected]. Twitter: Annette Norris, director of the four-wheeler or other “new toys,” they had already agreed to work ing U camp came from. Many of @chrisgautz 20130909-NEWS--0037-NAT-CCI-CD_-- 9/6/2013 4:46 PM Page 1

September 9, 2013 CRAIN’S DETROIT BUSINESS Page 37

Wilson: WSU’s president sets a weighty agenda www.crainsdetroit.com EDITOR-IN-CHIEF Keith E. Crain ■ GROUP PUBLISHER Mary Kramer, (313) 446-0399 From Page 1 or [email protected] ASSOCIATE PUBLISHER Marla Wise, (313) 446- Balancing the books academic year that began last week. University Research Corridor al- week from New York real estate 6032 or [email protected] Eleanor Reynolds, assistant vice liance with the University of Michi- magnate and Miami Dolphins owner EXECUTIVE EDITOR Cindy Goodaker, (313) 446- Wilson said new student enroll- 0460 or [email protected] president of student affairs and di- gan and Michigan State University Stephen Ross, to be split between MANAGING EDITOR Jennette Smith, (313) 446- ment was down between 3 percent rector of admissions at Oakland, could offer some joint grant writ- the athletic department and UM’s 1622 or [email protected] and 4 percent in the school year that MANAGER, DIGITAL CONTENT STRATEGY Nancy said its enrollment of students ing or research contract opportu- Stephen M. Ross School of Business. Hanus, (313) 446-1621 or [email protected] began Aug. 28, but total credit hours from Wayne County did see a nities, particularly because all Wilson said Ross, who received MANAGING EDITOR/CUSTOM AND SPECIAL enrolled for the fall semester saw a PROJECTS Daniel Duggan, (313) 446-0414 or bump this year over last, although have medical schools and a history a law degree from Wayne State in [email protected] relative increase, according to pre- Wayne County typically con- of commercializing their research 1965, is among the alumni contacts SENIOR EDITOR/DESIGN Bob Allen, (313) 446- liminary data compiled by the uni- 0344 or [email protected] tributes only about 8 percent of in the private sector. he hopes to make in future SENIOR EDITOR Gary Piatek, (313) 446-0357 or versity for the fall semester. each incoming freshman class. “Any time you can get multiple fundraising efforts. Donor solicita- [email protected] Wayne State expects tuition to WEB EDITOR Kristin Bull, (313) 446-1608 or Oakland reported the largest institutions to collaborate with tion appears to be going well [email protected] come in only about 0.3 percent be- class of incoming freshmen in its each other on developing a new enough in the quiet phase of its WEST MICHIGAN EDITOR Matt Gryczan, (616) 916- low its projection, at roughly 39 56-year history — 2,542 first-time initiative, that tends to get the best capital campaign to begin a public 8158 or [email protected] DATA EDITOR Brianna Reilly, (313) 446-0418, percent of its approximately $893 students — for a total 1.8 percent attention from funders,” he said. phase by fall 2014, he said. [email protected] million in annual budget revenue. WEB PRODUCER Norman Witte III, (313) 446- enrollment growth in fall 2013. The “Philanthropic supporters and The university’s Division of De- 6059, [email protected] “When we look at some of the school also expects to surpass total foundations tend to take more no- velopment and Alumni Affairs has EDITORIAL SUPPORT (313) 446-0419; YahNica priorities we have already identi- enrollment of 20,000 for the first tice and have an easier time get- reported that it hopes to be about Crawford, (313) 446-0329 NEWSROOM (313) 446-0329, FAX (313) 446- fied for performance, I don’t see time this year. ting behind the programs. So do halfway toward its 2018 funding 1687 TIP LINE (313) 446-6766 how we would able to afford the “Some of that growth definitely legislators, since the benefits are goal when the campaign goes pub- REPORTERS needed measurers like growing ad- came from Wayne County, but I widespread.” lic and that it expects to seek about Jay Greene, senior reporter: Covers health care, visory services and academic insurance, energy utilities and the environment. think what puts us in record terri- Other short-term priorities $750 million. (313) 446-0325 or [email protected] bridge programs for students, tory is strong growth in recruit- could include a new focus on seek- Some fundraising efforts may fo- Amy Haimerl, entrepreneurship editor: Covers without a way to come up with the entrepreneurship, second-stage companies and ment from St. Clair and Washte- ing funds for translational re- cus on improving educational ac- small business. (313) 446-0416 or funding for that,” Wilson told naw counties,” she said. search, or efforts to turn pure or cess and opportunities. As Michi- [email protected] Crain’s editorial board during an EMU also reported a fall fresh- basic scientific research into gan’s only member of the national Chad Halcom: Covers litigation, higher education, non-automotive manufacturing, defense interview last week. man headcount of 2,877 in late Au- knowledge with practical or com- Coalition of Urban Serving Universities, contracting and Oakland and Macomb counties. The WSU Board of Governors in gust, a record in its 164-year histo- mercial applications. Wayne can Wayne State often serves the role of (313) 446-6796 or [email protected] Tom Henderson: Covers banking, finance, late June approved a budget pro- ry, but had projected enrollment to do more to help researchers navi- being the best educational option technology and biotechnology. (313) 446-0337 or posal submitted by outgoing uni- come in at or near record territory gate the patent application process for bright students in underserved [email protected] Kirk Pinho: Covers real estate and the city of versity President Allan Gilmour since midsummer. Wayne State of- or in obtaining venture capital areas and could pursue an identity Detroit. (313) 446-0412 or [email protected] that included the 8.9 percent in- ficials also said this week that en- funding to commercialize their as the nation’s premier urban re- Bill Shea, enterprise editor: Covers media, advertising and marketing, the business of sports, crease — about three weeks after rollment and registration pat- work, Wilson said. search university, he said. and transportation. (313) 446-1626 or the board appointed Wilson its [email protected] terns, compared with last year He also said he considers the fac- A new set of admissions stan- Nathan Skid, multimedia editor: Also covers the next president under a five-year and the timing of the tuition in- ulty a WSU asset and said the dards that took effect this fall also food industry and entertainment. (313) 446-1654, contract that began Aug. 1. [email protected] crease, suggest the hike did not eight-year labor contract adopted appeared to be having an effect on Dustin Walsh: Covers the business of law, auto Wilson said he was not consult- contribute to the enrollment drop. earlier this year with the American the freshman crop. Preliminary suppliers and steel. (313) 446-6042 or ed by the board or administration [email protected] Association of University Professors enrollment data indicate the first- Sherri Welch: Covers nonprofits, services, retail about that decision, but he sup- local chapter gives administration time freshman this year has a and hospitality. (313) 446-1694 or ports the decision to forgo about Using brainpower [email protected] the opportunity to incentivize out- mean ACT score of 22.7, up from LANSING BUREAU $534,700 in supplemental “perfor- Wilson comes to WSU from serv- standing professors and hold un- 22.2 last year and above the mean Chris Gautz: Covers business issues at the Capitol mance funding” the state would ing as deputy director for strategic derperformers accountable. test-taking score statewide of 19.9. and utilities. (517) 403-4403 or [email protected] have added to its budget this year, scientific planning and program “It’s got to be a top-down ap- The university reports it has in- ADVERTISING if it had kept tuition increases un- coordination at the National Insti- proach,” he said, involving en- creased financial aid by 11 percent SALES INQUIRIES (313) 446-6052; FAX (313) der a 3.75 percent cap. tute on Minority Health and Health couraging faculty and providing fi- this year over last, and more than 393-0997 Fall 2013 undergraduate enroll- SALES MANAGER Tammy Rokowski Disparities, an agency of the Nation- nancial rewards. 75 percent since 2007. Wilson said SENIOR ACCOUNT EXECUTIVE: Matthew J. ment is estimated to be slightly al Institutes of Health. keeping education accessible to Langan less than 19,000 students, off from NIH Director Francis Collins qualified students is a priority. ADVERTISING SALES Christine Galasso, Jeff 19,342 in fall 2012 and 19,877 in Stress fundraising, development Lasser, Dale Smolinski, Sarah Stachowicz and President Barack Obama an- He also said he does not intend CLASSIFIED SALES Angela Schutte, manager, 2011, according to the WSU Office of nounced in April that the federal Wilson said a big priority for to repeat the tuition hike next year (313)-446-6051 Institutional Research and Analysis. Brain Research through Advanced him is greater alumni engagement as a way of shoring up the budget, GENERAL MANAGER/BUSINESS DEVELOPMENT First-time freshman enrollment is AND EVENTS Elizabeth Buscher Innovative Neurotechnologies, or and philanthropy in lieu of re- but he does hope to speak with law- DIRECTOR, INTEGRATED MARKETING Eric Cedo expected to be off about 8 percent BRAIN, initiative would launch liance on the Legislature or tuition makers about the criteria used to EVENTS MANAGER Kacey Anderson this year, but final fall semester with $100 million in the proposed dollars to cover the budget. evaluate public universities’ SENIOR PRODUCER FOR DIGITAL/ONLINE data was not yet available. PRODUCTS Pierrette Dagg fiscal 2014 budget. More private dollars should sup- progress and compute the supple- MARKETING ARTIST Sylvia Kolaski “We have some data at the uni- The decade-long, cross-agency port scholarships, academic pro- mental funding that gets added to SALES SUPPORT Suzanne Janik, YahNica Crawford versity that suggests that (a tu- grand challenge aims to expedite grams or the university’s capital their base budgets next year. PRODUCTION MANAGER Wendy Kobylarz ition hike) does not have much of technologies that would be capable campaign for buildings and infra- “The concept of a performance PRODUCTION SUPERVISOR Larry Williams an impact on the decision to enroll of producing real-time images of structure improvements, Wilson funding system is fine, and I don’t CUSTOMER SERVICE in any specific university,” he MAIN NUMBER: Call (877) 824-9374 or write neural circuits and visualize chemi- said. really see any issue with that, but [email protected] said. “And we have a moral re- cal and electrical interactions in the He also said he expects to spend the metrics are particularly im- SUBSCRIPTIONS $59 one year, $98 two years. sponsibility, I think, to make sure Out of state, $79 one year, $138 for two years. brain. It would be a coordinated ef- about 30 percent of his time as portant,” he said. “One size does Outside U.S.A., add $48 per year to out-of-state the students that we enroll are ca- fort among the NIH, the Defense Ad- president focusing on develop- not fit all, and depending on the rate for surface mail. Call (313) 446-0450 or pable of graduating.” (877) 824-9374. vanced Research Projects Agency and ment and fundraising — about the nature of the metrics you use you SINGLE COPIES: (877) 824-9374 Be that as it may, neighboring some private foundations. Wilson same level of effort he gave as can penalize some schools and re- REPRINTS: (800) 290-5460, ext. 125; public schools and tuition cap coop- (717) 505-9701, ext. 125; or lindsay.wilson said he expects the initiative to of- chancellor of the University of Col- ward others.” @theygsgroup.com erators Oakland University and East- fer grant or contract opportunities orado Denver from 2006-2010. Chad Halcom: (313) 446-6796, TO FIND A DATE A STORY WAS PUBLISHED: ern Michigan University boasted to universities or research teams. The University of Michigan re- [email protected]. Twitter: (313) 446-0406 or e-mail [email protected] record freshman class sizes in the CRAIN’S DETROIT BUSINESS IS PUBLISHED BY He has said previously that the ceived a $200 million donation last @chadhalcom CRAIN COMMUNICATIONS INC. CHAIRMAN Keith E. Crain PRESIDENT Rance Crain TREASURER Mary Kay Crain Executive Vice President/Operations William A. Morrow Executive Vice President/Director of Strategic Operations Chris Crain Federal-Mogul: Move is planned to smaller space Vice President/Production & Manufacturing Dave Kamis ■ From Page 1 Vice President/Chief Information Officer Paul Dalpiaz Vice President/Chief Human Resources Officer negotiations for leased space out- LaSalle is the Arboretum building feet would bring the complex’s oc- trustee for Federal-Mogul’s Class B Margee Kaczmarek side of Southfield but was unable representative. CBRE will market cupancy rate to about 65 percent. office space, according to Burke. G.D. Crain Jr. Founder (1885-1973) to confirm whether the move is to the Federal-Mogul office to new oc- Major tenants at the Arboretum Federal Southfield LP and Northwest- Mrs. G.D. Crain Jr. Chairman (1911-1996) EDITORIAL & BUSINESS OFFICES: the Arboretum. cupants. include Priority Health, Schneider Lo- ern Associates LP own the building, 1155 Gratiot Ave., Detroit MI 48207-2732; He said employees were notified Federal-Mogul, which emerged gistics Inc. and the Logicalis Group. he said. The registered agents and (313) 446-6000 Cable address: TWX 248-221-5122 AUTNEW DET of the move a few weeks ago. from bankruptcy in December In 2011, Trinity Health announced owners for those entities are not CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is Matt Farrell, executive princi- 2007, in July reported its first posi- that it was vacating its space at Ar- disclosed in state business records. published weekly, except for a special issue the third week of August, and no issue the third week of pal and partner at Birmingham- tive net income since the first boretum, as well as its Novi head- Renovations to the building, as December by Crain Communications Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. Periodicals based Core Partners LLC, which quarter of 2012 due to downsizing quarters at the Cabot Building at well as who would market the postage paid at Detroit, MI and additional mailing manages the Arboretum, declined over the last 18 months. 27870 Cabot Drive, to the 340,000 building to new prospective ten- offices. POSTMASTER: Send address changes to CRAIN’S DETROIT BUSINESS, Circulation to comment. Joe Hauska, vice The Arboretum, a 600,000-square- square feet of space vacated in Au- ants, would be determined by Fed- Department, P.O. Box 07925, Detroit, MI 48207- president of industrial services in foot, 40-acre complex, is currently gust 2010 by Quicken Loans Inc. eral Southfield and Northwestern 9732. GST # 136760444. Printed in U.S.A. Entire contents copyright 2013 by Crain the Southfield offices of CBRE Inc., about 50 percent leased, according Burke said Federal-Mogul will Associates, Burke said. Communications Inc. All rights reserved. represents Federal-Mogul. He also to a real estate source speaking on have sign rights at its new space. Kirk Pinho: (313) 446-0412, Reproduction or use of editorial content in any manner without permission is strictly prohibited. declined to comment. the condition of anonymity. A Fed- New York City-based Lexington [email protected]. Twitter: The Detroit office of Jones Lang eral-Mogul lease of 180,000 square Corporate Properties Trust is the @kirkpinhoCDB 20130909-NEWS--0038-NAT-CCI-CD_-- 9/6/2013 5:06 PM Page 1

Page 38 CRAIN’S DETROIT BUSINESS September 9, 2013 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF AUG. 31-SEPT. 6

the 37-year old, blogger who wrote the piece. Nelson told Court lifts CONTEST CONCLUDES WITH ‘WHIMSICAL’ WINNER Skid he has never been to RoboCop “Whimsical Detroit, but he has friends Detroit,” the final who have. injunction on weekly winner of “They loved it,” Nelson the Summer in said. the City photo statue has Nelson said his friends’ key labor law contest, is an experiences were contrary “artistic tribute to the narrative played out 2012 law that bars to the city” near through news outlets across Michigan and its lo- Eastern Market, the globe. A cal governments says the photographer, Staci Dodson Beurer. One of the judges, good timing So, here is a blogger who from entering labor agree- Associate Publisher Marla Wise, said: “I love how the ments considered to favor named Detroit one of the photographer took old and worn items and turned them into oboCop is more pop- Leadership Fellowship pro- worst food destinations in unionized construction something great to look at … kind of what’s going on with ular now than dur- gram at the Harvard Universi- America without ever hav- companies was upheld Fri- the city right now.” Beurer’s image was the ninth chosen by R ing its debut in 1987 ty School of Business. ing been here admitting day by the 6th U.S. Circuit Crain’s judges in the summerlong contest, which attracted — especially in Detroit. The Designed for CEOs who that the narrative he is Court of Appeals. The appeals more than 300 entries. Next week, the grand prize winners part-human, part-machine are transitioning from lead- helping to create is inaccu- court in a 2-1 decision up- will be announced. One of the two top winners will receive a protagonist became a sym- ership roles, the program rate. held an amended version of brick paver on the Detroit RiverWalk, and the other will bol of what the city had be- provides a year of learning Johnson said he is inter- the Fair and Open Competi- receive a stay at The Townsend Hotel in Birmingham. come as it descended into fi- in tandem with the develop- tion in Governmental Con- ested in visiting Detroit, of five-year bonds, Manager Kevyn Orr testified nancial ruin. ment of a significant project struction Act, signed last and Skid offered up his food Bloomberg reported. Pro- that access to casino tax A 10-foot crowdfunded addressing a major social year by Gov. Rick Snyder. knowledge and time — if ceeds will be used for debt revenues is key to the city RoboCop statue is currently issue. and when he does. Read the repayment. staying afloat financially, being bronzed at Venus Goss, 65, said she hopes to full blog at www.crainsde- Ⅲ Ann Arbor-based Co- according to newly re- Bronze Works in Detroit be- focus on systemic child wel- COMPANY NEWS troit.com/skide varon Advanced Materials leased transcripts of his fore an unveiling later this fare issues in Michigan, es- Ⅲ MLive Media Group an- Inc. has completed its seed Aug. 30 deposition. Orr also year. A Kickstarter cam- pecially in Detroit and nounced that on Sept. 12 round of funding with a said he has no plans to sell paign raised more than Wayne County. ITS IECES B & P AnnArbor.com will become $250,000 investment from art from the Detroit Institute $60,000 for the statue.The Ⅲ The Detroit Area Pre-Col- part of its sibling statewide the Michigan Pre-Seed Capi- of Arts collection. timing matches up with the Hey, bloggers: Eat it lege Engineering Program an- online news operation, tal Fund, administered by Ⅲ Detroit Mayor Dave unveiling of the trailer for nounced the honorees for MLive.com, and the twice- Ann Arbor Spark. The start- Bing and Department of Hous- Nathan Skid, Crain’s mul- the upcoming remake of the its second annual Real Mc- weekly print edition will be up, which has developed a ing and Urban Development timedia editor and food beat film, which is available on- Coy awards. The awards, rebranded as The Ann Ar- new process for making Secretary Shaun Donovan reporter fired back in a blog line. The new movie fea- sponsored by DTE Energy Co., bor News. AnnArbor.com high-performance ceram- announced the first stage of Friday to a San Francisco tures a black, not gray, ar- honor five Michigan-based will be replaced with ics, raised $550,000 for its demolishing the Frederick real estate blog that placed mored Alex Murphy and a leaders in science, technolo- MLive.com/annarbor. Stat- seed round, with a larger Douglass Homes, the graffiti- Detroit on a list titled cast of recognizable actors, gy, engineering, math and en Island-based Advance round of VC expected to be covered complex known as “America’s Worst Cities for unlike the original. medicine and are named af- Publications Inc. shut down raised by year’s end. the Brewster projects. Food Lovers.” Starring in the film are ter Elijah McCoy (1844- the News in 2009 to run a Ⅲ Centerville, Utah-based Ⅲ David Trott, chairman Said Skid: “Detroit’s pro- Michael Keaton, Gary Oldman, 1925), a Detroiter and me- digital news operation. Pro Image Franchise LLC, a na- and CEO of Farmington file on the Movoto site fea- Ⅲ Samuel L. Jackson and Joel chanical engineer. Sixty-two new luxury tional chain of licensed Hills-based Trott & Trott PC tured a picture of a sloppy joe seats at Ford Field that Kinnaman as RoboCop. The winners are Rodney sports item shops, opened and owner of related compa- bathed in ketchup and mus- include their own high-def The trailer, which can be O’Neal, CEO, Delphi Automo- its first Michigan store at nies Attorneys Title Agency tard and what one can only televisions are for the ex- found on YouTube, is tive; Jessica Moreno, engi- the Fairlane Town Center in LLC and National Default Ex- assume to be chili sauce.” clusive use of Quicken Loans chock-full of violence, sci- neering business manager, Dearborn. The new Pro Im- change, announced his can- The caption reads: “Mo- Inc. as part of a new five- ence fiction and even two General Motors-Global Electri- age Sports store is the first of didacy to replace U.S. Rep. tor City likes its food sim- year sponsorship deal an- seconds of the Detroit river- cal Systems; Ronald Hall, several planned for the re- Kerry Bentivolio in Michigan’s ple.” nounced between the De- front. president and CEO of gion. A second, a National 11th Congressional district. “Isn’t the sloppy joe a sta- troit-based online mortgage The film opens Feb. 7, Bridgewater Interiors; and Lin- Hockey League Winter Clas- Ⅲ Superstar pianist Lang ple of Detroit food?” asked lender and the Detroit Lions. 2014. da Gillum, associate dean for sic store, is expected to open Lang will join the Detroit Nick Johnson, public rela- Ⅲ Toyota will spend academic and faculty af- at Fairlane this fall. Symphony Orchestra in a tions director and contribu- more than $28 million to ex- fairs, Oakland University Ⅲ American Roads LLC, op- Sept. 28 concert that will be Retirement for Carol Goss: tor to Movoto, when Skid pand powertrain opera- William Beaumont School of erator of the Detroit-Windsor Lang’s first live webcast questioned him about the tions at the Toyota Technical Medicine; and Jerry Caldwell, Tunnel, won court approval with a U.S. orchestra, the Schoolwork at Harvard ranking. Center in Ann Arbor, the director, Drew Scholars of a turnaround plan to shed AP reported. What do you do after re- “No,” Skid said. “No, they company announced. The Program, Michigan State Uni- $830 million in debt from Ⅲ Three-quarters of tirement? aren’t.” expansion will add 60 jobs versity, and executive direc- swaps and bonds issued af- Detroit-area CIOs plan to If you’re Carol Goss, you Johnson said the photo at the center, a division of tor of the Michigan Louis ter a private-equity buyout. hire IT professionals in the go back to school. came from Flickr. Stokes Alliance for Minori- Toyota Motor Engineering fourth quarter of 2013, and Goss, who is retiring at “Have you ever been to ty Participation. and Manufacturing North 10 percent plan to expand year’s end from the Detroit- Detroit?” Skid asked. Winners are to be hon- America Inc. that conducts OTHER NEWS their teams, according to a based Skillman Foundation, “I’ve been to Grand ored at a Thursday event at research and development. survey from California- has been accepted into the Rapids,” Johnson said. DTE headquarters. See Ⅲ Former Allen Park- Ⅲ Former Detroit Medical based Robert Half Technology. 2014 class of the Advanced Same with Randy Nelson, www.dapcep.org based wheelchair-accessi- Center CEO Mike Duggan ble van startup Vehicle Pro- won the Aug. 6 Detroit Ⅲ Michigan’s large reduction Group has been mayoral primary election serves of natural gas proba- resurrected by South Bend, after the Board of State Can- bly won’t be developed on a Ind.-based AM General LLC, vassers certified that Dug- large scale for many years, which plans to design the gan received 48,716 votes, if ever, giving policymakers product in Livonia. AM more than 4,000 more than time to deal with the envi- BEST FROM THE BLOGS General said it signed an Detroit election workers ronmental and public health unofficially tallied for him concerns associated with READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS agreement to acquire the U.S. Department of Energy’s and nearly 25,000 more fracking, according to a Uni- $49.96 million secured loan than a Wayne County can- versity of Michigan study. TechTown offers $10,000, space When? 2013? Nope, 1860 to VPG for about $8 million vass report said he re- Ⅲ The Southeast Michigan and will restart the compa- ceived. Duggan and Wayne Purchasing Managers Index Want rent-free pop-up Glaciers start ny as Mobility Ventures LLC. County Sheriff Benny climbed 7.1 points in Au- space“ during the busy melting“ and retreat Ⅲ SKF AB, the world’s Napoleon will square off in gust to 60.2, continuing a holiday shopping season? dramatically. Snow largest maker of bearings, the Nov. 5 general election. climb from an unexpected That’s the prize — plus cover disappears. has offered to buy Ann Ⅲ Oakland County wants drop in June. cash — for the best Sounds like today’s to issue bonds this month Ⅲ Despite worries that business to come out of headlines, eh? But it Arbor-based Kaydon Corp. TechTown Detroit’s isn’t now that a NASA for $1.25 billion to expand after delaying a $350 mil- premiums will increase be- upcoming Retail Boot report is talking its U.S. operations and add lion offer planned for this cause of the Affordable Camp. about. velocity control products, week, Bloomberg reported. Care Act, most members of Bloomberg reported. The sale would be the the Michigan Business & Pro- ” ” Ⅲ Ally Financial Inc., the biggest from the state since fessional Association plan to Amy Haimerl’s blog on small business is at Tom Henderson’s blog about accounting, banking, Detroit-based auto lender Detroit filed its record mu- continue offering health in- www.crainsdetroit.com/section/blogAmyHaimerl venture capital and high tech can be found seeking to repay a U.S. nicipal bankruptcy. surance benefits to employ- at www.crainsdetroit.com/henderson bailout, issued $750 million Ⅲ Detroit Emergency ees, according to a survey. DBpageAD_DBpageAD.qxd 8/19/2013 3:08 PM Page 1

Req. qualifying data plan & new 2-yr agmt./activation per line. sprint.com/ruggedphones 855-878-4BIZ

Screen image simulated. Offers avail. for corp-liable customers only. Activ. Fee: $36/line. Credit approval req. Early Termination Fee (sprint.com/etf): After 14 days, up to $350/line. Phone Offer: Offer ends 9/30/13. While supplies last. Taxes and svc charges excluded. No cash back. Req. activation of all same model phones on same account in one sales transaction. Data: Add’l charges apply for premium content/downloads. Includes select e-mail. Usage Limitations: Sprint may terminate service if off-network roaming usage in a month exceeds: (1) 800 min. or a majority of min.; or (2) 300 MB or a majority of KB. Prohibited network use rules apply. Engaging in such uses will not result in throttling but could result in adverse action. See sprint.com/termsandconditions. Other Terms: Offers and coverage not available everywhere or for all phones/networks. Restrictions apply. See store or sprint.com for details. CL Port-in Svc Credit: Offer ends: 9/30/13. Available online, via telesales, in participating Sprint Stores, and direct & indirect business channels. Purchases from other national retailers are not eligible for svc credit. Requires port-in from an active number (wireless or landline). Svc credit request must be made at https://www.sprintportcredit.com within 72 hours from the port-in activation date or svc credit will be declined. Must remain active with Sprint Business for 61 days to receive full svc credit. Excludes upgrades, replacements and ports made between Sprint entities or providers associated with Sprint (i.e. Virgin Mobile USA, Boost Mobile, Sprint As You Go and Assurance), telephone numbers active on Sprint within the previous 60 days, all Individual-liable plans, Seasonal Standby plans, all plans with an MRC $10 or less, Business Freedom plans, M2M plans, special Government plans, and select custom pricing plans. May not be combinable with other offers. Port-in Payment Expectations: If the svc credit does not appear on the ﬁrst or second invoice following the 61st day, visit https://www.sprintportcredit.com and click on “Where’s My Service Credit”. Other Terms: Offers and coverage not available everywhere or for all phones/networks. Restrictions apply. See store or sprint.com for details. Nationwide Sprint Network reaches over 278 million people. Sprint 3G network reaches over 275 million people. ©2013 Sprint. All rights reserved. Sprint and the logo are trademarks of Sprint. Other marks are the property of their respective owners. DBpageAD_DBpageAD.qxd 8/28/2013 11:00 AM Page 1

Walsh grads see great old brands up to new tricks. We love our pets. In 2012, Americans spent $53 billion on pet food, supplies, over-the-counter medicine, vet care, and designer products like Paul Mitchell dog shampoo, Omaha Steaks pet treats, and Harley Davidson collars. What pets are most popular? Freshwater ﬁ sh, then cats and dogs and birds, oh my. Walsh grads see business in everything, and impact great companies everywhere. See more at livebreathebusiness.org/DogTreat. Classes start September 25.

®The yellow notebook design is a registered trademark of Walsh College. And the campaign is a creation of Perich Advertising + Design. Thanks to the ﬁ ne folks at Walsh for letting us say so.