Eprize Sale Boosts Region's
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20120827-NEWS--0001-NAT-CCI-CD_-- 8/24/2012 5:00 PM Page 1 ® www.crainsdetroit.com Vol. 28, No. 36 AUGUST 27 – SEPTEMBER 2, 2012 $2 a copy; $59 a year ©Entire contents copyright 2012 by Crain Communications Inc. All rights reserved Page 3 Proposal unveiled for site of razed Novi Expo Center Biz battles ballot measures policy in such areas as energy, la- Groups say constitution not place to set policy bor or transportation. “Michigan’s constitution is un- BY AMY LANE thousands of dollars into opposi- state’s emergency manager law. der attack by special interests,” SPECIAL TO CRAIN’S DETROIT BUSINESS tion coalitions, and that’s likely to In most cases, it’s a “no” vote said Brad Williams, vice president be just a start, they seek. But with Michigan’s of government relations for the De- In legal venues and the court of as they fight emergency manager law, keeping troit Regional Chamber. public opinion, business groups AT A GLANCE measures rang- that law, as business supporters As of Friday, four measures had are waging an all-out assault. Closer look at ing from collec- want, will require a “yes” vote at spots on the ballot. They are the re- Their target: Keeping some pro- ballot proposals, tive bargaining the ballot. peal of the state’s emergency man- This biz got help with energy posals from reaching the Novem- Page 20 guarantees in Not every group has weighed in ager law and three constitutional ber ballot and defeating those that the state con- against everything. But the groups amendments that would ensure savings – why don’t others? already have a spot. stitution, to increased renewable- share a common refrain: The state Major groups have put tens of energy mandates, to repeal of the constitution is not the place to set See Ballot, Page 20 Inside Hospital systems grant raises, bonuses, Page 21 Losing bidders Crain’s List for JLTV contract Largest money managers, Page 15 may file protest, This Just In face uphill battle Marathon reworks Detroit BY CHAD HALCOM refinery to raise capacity CRAIN’S DETROIT BUSINESS Marathon Petroleum Co. LP will be ready at year’s end to With all that is at stake after the Joint Light process 14,000 more barrels Tactical Vehicle contract awards last week, in- of incoming crude oil per dustry observers don’t expect the Southeast day at its expanded south- Michigan bidders who lost out on the military west Detroit oil refinery, af- vehicle to go away qui- ter wrapping up improve- etly. ments in the $2.2 billion But while experts The rate of Detroit Heavy Oil Upgrade KENNY CORBIN foresee at least one of “ Project. Detroit Venture Partners CEO and ePrize founder Josh Linkner, who left the driver’s seat at ePrize in 2010 the three losing bidders contractors Next week, Marathon but had remained an investor, says the sale of the company is good news for area startups and VC firms. protesting the JLTV plans to shut down the De- awards by the Warren- getting a troit refinery for 70 days to based U.S. Army Tacom complete a tie-in that will Life Cycle Management direct win ... connect some newly complet- EPrize sale boosts region’s rep Command within days, ed construction to its exist- getting traction on that is only ing infrastructure. The com- protest is a tall order. pany also plans maintenance Tacom awarded somewhere in projects before it reopens, Private equity deals expected to expand $66.3 million to Bethes- communications manager BY DUSTIN WALSH Wise told Crain’s. da, Md.-based Lockheed the 20 percent Jamal Kheiry said. CRAIN’S DETROIT BUSINESS Also out is Josh Linkner, who launched Martin Corp.; $64.5 mil- Findlay, Ohio-based Mara- ePrize in 1999 and stepped away from day-to- lion to Indiana-based range. thon expects to complete Last week’s acquisition of the online pro- day oversight in 2010. Wise, hired to replace AM General LLC; and ” that work and reopen by No- motions firm ePrize LLC by the private equity Linkner as CEO, will remain in the job under $56.4 million to Wis- George Ash, vember, according to a letter firm Catterton Partners Corp. is another exam- Catterton. consin-based Oshkosh Foley & Lardner LLP submitted to the Michigan De- ple of Southeast Michigan’s growing, and di- Linkner declined to comment on the Corp. for the second partment of Environmental versified, private equity market activity. specifics of the deal but said investors re- phase of development on the JLTV, which en- Quality. Kheiry said the ex- Connecticut-based Catterton took a majori- ceived an “attractive” return. ters production in 2015. panded refinery capacity ty stake in the Pleasant Ridge-based compa- “It’s a symbolic first, as I don’t know of an Losing out were industry teams led by BAE will be in use at the plant by ny, buying out most of its investors — includ- Internet company that’s had this size of a deal Systems Inc., Navistar Defense and a joint venture year’s end. ing Dan Gilbert, the Quicken Loans Inc. in the region,” he said. “EPrize has performed of Sterling Heights-based General Dynamics Land — Chad Halcom founder and Detroit real estate investor who pumped $32 million into ePrize, CEO Matt See ePrize, Page 17 See Protest, Page 21 Are you ready for 2014? From policy makers, hospital administrators, trustees, employer groups and other health-care insiders, this event promises provocative dialogue, engagement and top-notch learning. For information, visit crainsdetroit.com/events NEWSPAPER 20120827-NEWS--0002-NAT-CCI-CD_-- 8/24/2012 3:57 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS August 27, 2012 MICHIGAN BRIEFS Attention, Meijer shoppers: ly adopted an ordinance allowing food trucks on public streets, as Hokey Pokey in Aisle 3 Bomb-bastic? Some think fireworks law needs work long as they are at least 150 feet About a decade ago, a Meijer Inc. away from an established restau- store in East Lansing thought it State Rep. Harold Haugh has heard that up to ford, Wayne Schmidt and David Rutledge have rant. would be a good idea to have a $40 million worth of fireworks have been purchased formed a group to look at possible changes, or at the Ⅲ State officials say construc- back-to-school sale. In this case, and exploded in Michigan this year, thanks to the very least “tweaks,” to the fireworks legislation. tion of inspection booths at the the school was Michigan State Uni- law he sponsored legalizing sales of more powerful Meantime, LeBlanc is introducing legislation that Blue Water Bridge is causing traffic versity. And you know how college fireworks. would significantly change the law, including a re- delays at the crossing that con- students need a reason to party. “Nobody, including myself, had expectations that quirement that all fireworks sales be made in per- nects Port Huron and Sarnia, On- And so last week, the Walker- it was going to be this huge,” said Haugh, D-Ro- manent structures instead of “tents, shanties, card tario. The Times Herald reported based retailer’s store in Standale, seville. tables set up on a corner or anything like that.” last week that traffic has been de- near Grand Valley State University, State Rep. Richard LeBlanc, D-Westland, thinks Sales were “phenomenal” for Jason Marietta of layed at least an hour at times. The descended into conga madness in some serious changes have to be made. He thinks he Kansas-based Jake’s Fireworks, who worries about state said the contractor says the work will be completed by Sept. 12. the latest episode of what has be- can make that case based on the thousands of com- talk of drastic reform. “I could understand some Ⅲ come Meijer Mania. The goal: plaints during three days of Fourth of July celebra- possible tweaks to it in regard to shooting times, According to a study on chari- The Chronicle of Grab more back-to-college bucks tions from residents across the state who were kept making sure people understand the law,” he said. table giving by Philanthropy while building a new generation of awake by explosions, along with police officers rac- “But we need to be careful about a knee-jerk reac- , Michigan ranks 24th out of 50 states and the Dis- Meijer loyalists. Meijer Mania has ing through the night to handle noise complaints. tion to one season.” trict of Columbia, giving 4.5 per- grown to encompass 19 colleges, Haugh said he and fellow state Reps. Hugh Craw- — Rod Kackley cent of income. The state ranks including the University of Michigan, 13th in total contributions, at $3.8 Central Michigan University and ment base, the Michigan Economic of five new attorneys to its health In January, four Miller Canfield billion statewide, and 27th in medi- Western Michigan University. Development Corp. said. care practice. principals in its antitrust division an contribution, at $2,409 a person. MLive reports that Meijer pro- The partnership encompasses All five left Detroit-based Miller left the firm for Schiff Hardin LLP in The figures come from 2008 Internal vides buses to shuttle about 25,000 the cities of Grand Rapids, Kent- Canfield Paddock and Stone plc to Ann Arbor. Revenue Service records. to 30,000 students to its stores. wood, Muskegon and Wyoming; join Dickinson. Cascade Township; and Kent and The attorneys joined Dickinson MICH-CELLANEOUS Find business news from West Mich. seeks diversification Muskegon counties. offices in Troy and Saginaw. Mark around the state at crainsdetroit Crain’s Michigan Business has Wilson will serve as partner and Ⅲ Another Michigan municipal- .com/crainsmichiganbusiness.