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www.crainsdetroit.com Vol. 29, No. 19 MAY 13 – 19, 2013

Another rite of spring: j Return of road construction CRAIN’S MICHIGAN BUSINESS C Spreading the Net L throughout the Mitten, o one tower at a time, Page 9 T ho for ita Ne Crain’s Lists loc Largest Michigan businesses sig owned by women, Page 14 com alo The city of Cincinnati website shows the cars that will run on its rail line. M1 Rail has sto This Just In considered attaching its rail car order to that city’s order to save time and money. tim clo Alta Equipment opens new er facility, expects to hire an It’s Wixom-based Alta Equip- for ment Co. expanded this month M1 Rail bids ready op with a new 70,000- square-foot Ju center in New Hudson. Alta invested more than $5 million into the Metro West facility at 56195 Pontiac Trail, said President Rob Chiles. Be- to leave the station sides the purchase of the building, Alta expanded office B The bid is space, added overhead cranes scheduled to be and increased the heights of Design, build ABCSOFM1 awarded May 24, bay doors, Chiles said. $137 million, 3 with price negoti- th The facility employs 100, miles ... : Facts ation to begin the and Alta expects to hire 50-75 contract to be about the following day. more over the next 24 months, Woodward Avenue rail line, Page 25 The goal is for Chiles said. Alta currently work to com- employs 500 companywide. given May 24 mence by July or August. A Alta, which sells industri- BY BILL SHEA “It’s an aggressive timeline, we to al equipment such as fork- CRAIN’S DETROIT BUSINESS know that,” Childs said. air lifts and excavators, generat- The contract will be for the $85 say ed revenue of $150 million in Organizers of the M1 Rail streetcar million construction of the 3.3-mile coo 2012 and has been growing system plan to award the primary grade-level streetcar loop between of due to several acquisitions. contract to design and build the $137 Hart Plaza and New Center. W Chiles said the company million transit line in less than two Of that, $65.5 million is M1 fund- tha plans to expand in the Upper weeks. ing, and the remainder is state fund- ogy Peninsula, Saginaw or Flint Bids to become the construction ing to do Woodward resurfacing con- Ind and outside Michigan. manager and general contractor for currently with the streetcar project, pea “This is just the tip of the the Detroit project on Woodward Av- Childs said. The MDOT work will be SE iceberg for us,” he said. We’re enue are due Friday and will be vet- between Sibley and Chandler streets. sec going to continue to grow.” ted by a panel of M1 staffers and the The bid will cover all major con- Co — Dustin Walsh Michigan Department of Transportation, struction, such as the tracks, power of said M1 COO Paul Childs. control and passenger stations, R Childs said. ate Construction also will include re- na placement of the Woodward Avenue str bridge over I-94. the A second bid will be sought later po this year for the $9.5 million con- ato struction of a vehicle storage and siv maintenance facility. tec NEWSPAPER See M1, Page 25 DBHalf Cover Wrap_CD Half cover wrap 5/3/2013 10:07 AM Page 1

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www.crainsdetroit.com Vol. 29, No. 19 MAY 13 – 19, 2013 $2 a copy; $59 a year

Another rite of spring: joins the Return of road construction CRAIN’S MICHIGAN BUSINESS Collection HALSTON HERITAGE Spreading the Net Luxury brand among 5 new stores throughout the Mitten, opening doors at Troy’s Somerset one tower BY SHERRI WELCH Nathan CRAIN’S DETROIT BUSINESS Forbes, man- at a time, aging princi- Page 9 The Somerset Collection will be pal of Forbes home to the third retail store Co., said the for luxury brand Halston Her- new leases itage, opening on the heels of its position Som- Crain’s Lists New York City and Los Angeles erset as locations in April. “Michigan’s Largest Michigan businesses Halston, known for its de- foremost tar- signer gowns and handbags, is Forbes get for owned by women, Page 14 coming to the Troy luxury mall brands look- along with four other new ing to expand their presence na- The city of Cincinnati website shows the cars that will run on its rail line. M1 Rail has stores, including jewelry and tionally” and helps the mall of- This Just In considered attaching its rail car order to that city’s order to save time and money. timepiece maker David Yurman; fer something for every type of clothing and accessories retail- customer. Alta Equipment opens new er C Wonder; The Disney Store; Halston Heritage will move facility, expects to hire and a Microsoft Corp. retail store. into the empty space next to It’s the second Michigan store Omega on the first floor of Som- Wixom-based Alta Equip- for Microsoft, which is also erset South, offering its full line ment Co. expanded this month M1 Rail bids ready of clothing, evening wear, hand- opening at Twelve Oaks Mall in with a new 70,000- square-foot June. center in New Hudson. See Halston, Page 26 Alta invested more than $5 million into the Metro West facility at 56195 Pontiac Trail, said President Rob Chiles. Be- to leave the station sides the purchase of the building, Alta expanded office Building a better detector: Tech The bid is space, added overhead cranes scheduled to be and increased the heights of Design, build ABCSOFM1 awarded May 24, bay doors, Chiles said. $137 million, 3 with price negoti- that ‘listens’ for explosives The facility employs 100, miles ... : Facts ation to begin the and Alta expects to hire 50-75 contract to be about the following day. BY MATTHEW GRYCZAN more over the next 24 months, Woodward Avenue rail line, Page 25 The goal is for CRAIN’S MICHIGAN BUSINESS Chiles said. Alta currently work to com- employs 500 companywide. given May 24 mence by July or August. A Grand Haven company is getting ready Alta, which sells industri- BY BILL SHEA “It’s an aggressive timeline, we to field test a walk-through checkpoint for al equipment such as fork- CRAIN’S DETROIT BUSINESS know that,” Childs said. airports and large sporting events that it lifts and excavators, generat- The contract will be for the $85 says would have detected the pressure- ed revenue of $150 million in Organizers of the M1 Rail streetcar million construction of the 3.3-mile cooker-type bombs used as an instrument 2012 and has been growing system plan to award the primary grade-level streetcar loop between of terror at the Boston Marathon. due to several acquisitions. contract to design and build the $137 Hart Plaza and New Center. Working with a team in New Hampshire Chiles said the company million transit line in less than two Of that, $65.5 million is M1 fund- that is well-versed in radio antenna technol- plans to expand in the Upper weeks. ing, and the remainder is state fund- ogy and high-speed signal processing, RML Peninsula, Saginaw or Flint Bids to become the construction ing to do Woodward resurfacing con- Industries is in discussions with two Euro- and outside Michigan. manager and general contractor for currently with the streetcar project, pean airports to act as beta test sites for its “This is just the tip of the the Detroit project on Woodward Av- Childs said. The MDOT work will be SEE-QR (pronounced “seeker”) checkpoint iceberg for us,” he said. We’re enue are due Friday and will be vet- between Sibley and Chandler streets. security device, which RML unveiled at the going to continue to grow.” ted by a panel of M1 staffers and the The bid will cover all major con- Counter Terror Expo 2013 in London at the end — Dustin Walsh Michigan Department of Transportation, struction, such as the tracks, power of April. said M1 COO Paul Childs. control and passenger stations, RML, a recently established company affili- Childs said. ated with the largest manufacturer of anten- Construction also will include re- nas found on U.S. military vehicles, got a placement of the Woodward Avenue strong response from potential customers at bridge over I-94. the show to its technology, which uses low- A second bid will be sought later power AM radio waves to detect nitrogen this year for the $9.5 million con- atoms configured in the molecules of explosives. RML INDUSTRIES struction of a vehicle storage and RML Industries in Grand “A number of people said it was the best maintenance facility. Haven says its radio- technology that they saw at the show,” NEWSPAPER wave technology makes See M1, Page 25 See Detector, Page 25 for a better detector. 20130513-NEWS--0001-NAT-CCI-CD_-- 5/10/2013 5:14 PM Page 1

RAINS ETROIT USINESS® Cwww.crainsdetroit.com Vol. 29, No. 19 ’ D MAY 2013 B $2 a copy; $59 a year ©Entire contents copyright 2013 by Crain Communications Inc. All rights reserved A Halston handbag Inside Michigan Halston joins the Collection HALSTON HERITAGE Spreading the Net across Luxury brand among 5 new stores the Mitten, one tower at a time, Page 9 opening doors at Troy’s Somerset

BY SHERRI WELCH Nathan World Watch: Spotlight on CRAIN’S DETROIT BUSINESS Forbes, managing princi- Michigan companies in The Somerset Collection will be pal of Forbes Japan, Page 13 home to the third retail store Co., said the for luxury brand Halston Her- new leases itage, opening on the heels of its position Som- Crain’s Lists New York City and Los Angeles erset as locations in April. “Michigan’s Largest Michigan businesses Halston, known for its de- foremost tar- owned by women, Page 14 signer gowns and handbags, is Forbes get for coming to the Troy luxury mall brands look- along with four other new ing to expand their presence na- The city of Cincinnati website shows the cars that will run on its rail line. M1 Rail has stores, including jewelry and tionally” and helps the mall of- This Just In considered attaching its rail car order to that city’s order to save time and money. timepiece maker David Yurman; fer something for every type of clothing and accessories retail- customer. Alta Equipment opens new er C Wonder; The Disney Store; Halston Heritage will move facility, expects to hire and a Microsoft Corp. retail store. into the empty space next to It’s the second Michigan store Omega on the first floor of Som- Wixom-based Alta Equip- for Microsoft, which is also erset South, offering its full line ment Co. expanded this month M1 Rail bids ready of clothing, evening wear, hand- opening at Twelve Oaks Mall in with a new 70,000- square-foot June. center in New Hudson. See Halston, Page 26 Alta invested more than $5 million into the Metro West facility at 56195 Pontiac Trail, said President Rob Chiles. Be- to leave the station sides the purchase of the building, Alta expanded office Building a better detector: Tech The bid is space, added overhead cranes scheduled to be and increased the heights of Design, build ABCSOFM1 awarded May 24, bay doors, Chiles said. $137 million, 3 with price negoti- that ‘listens’ for explosives The facility employs 100, miles ... : Facts ation to begin the and Alta expects to hire 50-75 contract to be about the following day. BY MATTHEW GRYCZAN more over the next 24 months, Woodward Avenue rail line, Page 25 The goal is for CRAIN’S MICHIGAN BUSINESS Chiles said. Alta currently work to com- employs 500 companywide. given May 24 mence by July or August. A Grand Haven company is getting ready Alta, which sells industri- BY BILL SHEA “It’s an aggressive timeline, we to field test a walk-through checkpoint for al equipment such as fork- CRAIN’S DETROIT BUSINESS know that,” Childs said. airports and large sporting events that it lifts and excavators, generat- The contract will be for the $85 says would have detected the pressure- ed revenue of $150 million in Organizers of the M1 Rail streetcar million construction of the 3.3-mile cooker-type bombs used as an instrument 2012 and has been growing system plan to award the primary grade-level streetcar loop between of terror at the Boston Marathon. due to several acquisitions. contract to design and build the $137 Hart Plaza and New Center. Working with a team in New Hampshire Chiles said the company million transit line in less than two Of that, $65.5 million is M1 fund- that is well-versed in radio antenna technol- plans to expand in the Upper weeks. ing, and the remainder is state fund- ogy and high-speed signal processing, RML Peninsula, Saginaw or Flint Bids to become the construction ing to do Woodward resurfacing con- Industries is in discussions with two Euro- and outside Michigan. manager and general contractor for currently with the streetcar project, pean airports to act as beta test sites for its “This is just the tip of the the Detroit project on Woodward Av- Childs said. The MDOT work will be SEE-QR (pronounced “seeker”) checkpoint iceberg for us,” he said. We’re enue are due Friday and will be vet- between Sibley and Chandler streets. security device, which RML unveiled at the going to continue to grow.” ted by a panel of M1 staffers and the The bid will cover all major con- Counter Terror Expo 2013 in London at the end — Dustin Walsh Michigan Department of Transportation, struction, such as the tracks, power of April. said M1 COO Paul Childs. control and passenger stations, RML, a recently established company affili- Childs said. ated with the largest manufacturer of anten- Construction also will include re- nas found on U.S. military vehicles, got a placement of the Woodward Avenue strong response from potential customers at bridge over I-94. the show to its technology, which uses low- A second bid will be sought later power AM radio waves to detect nitrogen this year for the $9.5 million con- atoms configured in the molecules of explosives. RML INDUSTRIES struction of a vehicle storage and RML Industries in Grand “A number of people said it was the best maintenance facility. Haven says its radio- technology that they saw at the show,” NEWSPAPER wave technology makes See M1, Page 25 See Detector, Page 25 for a better detector. 20130513-NEWS--0002-NAT-CCI-CD_-- 5/10/2013 3:15 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS May 13, 2013

MICHIGAN BRIEFS Office furniture supplier imports tries Co., a result of a failed joint venture more than four years ago, 100-plus jobs from Canada Economic development? We don’t need that here MLive reported. Office furniture supplier Knape Ⅲ Berrybrook Farms in southwest & Vogt Manufacturing Co. plans to Apparently, those hordes of leaf-peepers have A third commissioner, Karen Zemaitis, said the Michigan has agreed to pay about add more than 100 jobs when it started taking a toll on some officials up north. Last “independent, intelligent people in our county can $10,000 and build new housing to moves production from a plant in month, the Leelanau County Board of Commissioners make a living for themselves. They can develop their settle a lawsuit over conditions for Waterloo, Ontario, to Grand nixed a partnership with the Traverse Bay Economic own economic community, they can figure out what it migrant workers. The U.S. Depart- Rapids, MiBiz reported last week. Development Corp. to create a new jobs strategy, the takes to have a business here. They can adapt.” ment of Labor had accused Berry- The move comes five months after Traverse City Record-Eagle reported recently. Com- Leelanau County’s unemployment rate is 8.8 per- brook of failing to meet a number Knape & Vogt acquired Kitchener, missioners also shut down the county’s economic cent. of conditions, including adequate Ontario-based Waterloo Furniture development board. Needless to say, the heads of the chambers of com- water, screens and rodent control. Components, which will close in The Record-Eagle obtained a recording of the commerce in Suttons Bay and Leland told the Record-Ea- Ⅲ The Grand Rapids Symphony 2014, said Peter Ross, vice presi- mission’s deliberations. One commissioner, Melin- gle that they had a somewhat different perspective. said it has secured $32 million of a dent of marketing and develop- da Lautner, said the governmental body “can’t be Doug Luciani, president of the Traverse City Area new $40 million endowment cam- ment at Knape & Vogt. health, wealth, happiness and prosperity. … That’s Chamber of Commerce, said of the Leelanau commis- paign to provide long-term sup- Tom Walsh, an area coordinator not what we are elected to do. Interestingly enough, sion’s vote: “The message that it sends, or at least port, MLive reported. The amount includes a $20 million pledge from for the United Steelworkers in Kitch- Leelanau County has health and wealth … that’s risks sending, is that the county is closed for busi- Richard and Helen DeVos. ener, speculated that the move out just a bonus. We are already there.” ness. ‘We don’t want growth.’ It also puts the county Ⅲ The S.S. Badger car ferry has of Waterloo may have been based Another commissioner, Debra Rushton, said her at risk of really isolating itself in terms of all the begun its sailing season between on Michigan’s passage of right-to- constituents “don’t want growth.” things happening on a regional basis.” Ludington and Manitowoc, Wis., work legislation, which makes after reaching a deal with regula- But not necessarily farming. Many In contrast, Nye said, the fruit Cascade Township, the Grand union membership voluntary, ac- tors on releasing coal ash into farmers have yet to plant their crops are doing well — although cording to a report in the Kitchener Rapids Business Journal reported. Lake Michigan for two more years. Daily Record. Knape & Vogt’s spring crops, Michigan Radio re- compared to last year, it wouldn’t It joins two other west Michigan Grand Rapids operations are ported. Farmers are still waiting take much to improve on that. offices that opened last year in Bel- Find business news from nonunion. Ross said right-to-work for fields to dry out from April’s mont and Newaygo. around the state at crainsdetroit had nothing to do with the decision. heavy rains. Ⅲ The International Chamber of .com/crainsmichiganbusiness. Knape & Vogt makes drawer Fields are so soggy that only MICH-CELLANEOUS Commerce awarded Dow Chemical Sign up for Crain's Michigan about 5 percent of Michigan’s corn slides, cabinet accessories and Ⅲ Michigan State University plans Co. $2.19 billion in cash from Business e-newsletter at crains crop has been planted, Michigan shelving, and storage items for of- Kuwait-based Petrochemical Indus- detroit.com/emailsignup. Radio reported. At this time last to direct at least half of its purchas- fice furniture makers, distribu- year, 42 percent had been planted. ing to in-state suppliers as part of tors, dealers and hardware chains. “I don’t think we’ve got a lot of the Michigan Economic Development CORRECTION nervousness right now,” Ken Nye of Corp.’s Michigan Business Connect Ⅲ A story on Page 21 of the May 6 issue about the settlement of a law- Michigan farmers wait to dry out the Michigan Farm Bureau told Michi- program. MSU last year spent suit by Troy-based Flagstar Bancorp Inc. referred to a restatement of gan Radio. “It does mean that we around $396 million in-state on earnings the bank holding company did over a previous lawsuit. The before planting their crops could be a little bit late before every- products. change from net income of $66.8 million to a net loss of $94.2 million The past week may have been thing finishes up depending on the Ⅲ Royal Oak-based Ross Mort- was for the fourth quarter last year and not for the full year. great for a lot of outdoor activities. weather from here.” gage Corp. has opened an office in

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May 13, 2013 CRAIN’S DETROIT BUSINESS Page 3 New round in fight for Compuware Health Care

The confidentiality agreement Not only is Elliott free to engage ISTOCK PHOTO Ending of standstill pact frees is still in place, but when the again in renewed takeover activi- standstill agreement lapses, it will ty, but a big acquisition that was allow Elliott to pursue, if it choos- announced last week has led to Elliott to go for the knockout es, a variety of ways to gain more speculation that Elliott may have control of Compuware stock. It large and willing partners in a new BY TOM HENDERSON signed in February with the De- currently has 18.5 million shares, offer for Compuware (Nasdaq: CRAIN’S DETROIT BUSINESS troit-based computer services or about 8.7 percent of the out- CPWR). company that allowed Elliott to ex- standing shares of common stock. On May 6, an investment group The fight for Compuware Corp. amine some of Compuware’s non- “With the standstill provision led by Boston-based Bain Capital likely will start heating up with public financial documents to de- with Elliott expiring, you’re right, LLC and San Francisco-based Gold- the expiration Wednesday of what termine whether to increase an things should start heating up,” en Gate Capital agreed to buy Hous- is called a standstill agreement offer made in December. After 20 years, a checkup for said an analyst who covers Com- ton-based BMC Software Inc., one of with its takeover suitor, Elliott That $2.3 billion offer was for $11 puware, who asked not to be Compuware’s competitors, for Management Corp. malpractice reform, Page 15 a share at a time the stock was named because of a recent direc- about $6.9 billion, or $46.25 a share. The standstill provision was trading at $9.59. It closed Friday at tive at his firm not to speculate on Wall Street part of a confidentiality agreement $11.60 a share, which gave it a mar- possible scenarios involving the On Tuesday, the the New York-based hedge fund ket cap of about $2.5 billion. computer company. See Compuware, Page 26 Company index These companies have significant mention in this week’s Crain’s Detroit Business: Action Sports ...... 24 AirGrant.com ...... 9 Amway ...... 12, 13 BBK ...... 23 C Wonder ...... 1 Center for Healthcare Research & Transformation . . 8 Chrysler Group ...... 23 Clark Communications ...... 12 Orange crush Compuware ...... 3 Connect Michigan ...... 10 Consumers Mutual Insurance of Michigan ...... 8 Fewer projects this year, but commuters still face barrels Dan’s Excavating ...... 27 JIM WEST David Yurman ...... 1 Mosaic Youth Theatre will share an BY BILL SHEA The Disney Store ...... 1 auditorium stage with the University Domino’s Pizza ...... 13 CRAIN’S DETROIT BUSINESS Prep Science and Math Elementary WHERE ARE THE Federal-Mogul ...... 13 School, among other spaces. s Michigan’s weather improves, metro De- ROADBLOCKS? Forbes Co...... 26 troit commuters are faced with a new season Ford Motor ...... 13 Getz ...... 11 A of headache-inducing road construction. Roll out the barrels: A list of road contruction Halston Heritage ...... 1 Mosaic A lack of transportation dollars at the state and lo- and resurfacing IAG Group ...... 13 cal levels has depressed the amount of work done on projects in metro IHS Automotive Group ...... 23 the region’s major traffic arteries and surface Detroit, Page 27 Jackson Community College ...... 10 streets, meaning a dichotomy has emerged for mo- Kerr Russell Weber ...... 15 torists: Fewer orange barrels and traffic snarls, but Klever Innovations ...... 11 designs deal Lambert Edwards & Associates ...... 12 also the annoyance of decaying roads and bridges. “That just shows how much revenue has de- creased with more fuel-efficient vehicles, higher gas M1 Rail ...... 1 The Michigan Department of Transportation, faced McKeen & Associates ...... 16 with dwindling road repair funding because of de- prices and less registration fees as a result of drivers holding onto their older vehicles longer,” said Rob Merit Network ...... 9 to swap funds clining state and federal gasoline taxes, estimates it Michigan Health & Hospital Association ...... 15 will spend $164.5 million combined across Wayne, Morosi, MDOT’s communications representative Michigan Infrastructure & Transportation Assoc. . . 27 Oakland, Macomb, Washtenaw and Livingston coun- for metro Detroit. Michigan State Medical Society ...... 15 ties. Major MDOT projects underway, or scheduled to Michigan Technological University ...... 25 for new space In 2005 and 2006, the department spent more than happen, that will affect local commutes this year in- Microsoft ...... 1 Mosaic Youth Theatre ...... 3 $400 million in each of those years around clude resurfacing a long stretch of I-75 in north Oak- Motor City Brew Tours ...... 9 BY SHERRI WELCH Detroit. This year’s entire statewide land County and five miles of the highway in Detroit, several miles of MSX International ...... 13 CRAIN’S DETROIT BUSINESS road and bridge budget is $650 Oakland University ...... 23 million. MDOT spent $832 Planning Perspectives ...... 23 See Roads, Page 27 Employing a strategy it’s used million in 2005 and $1 RAMI ...... 25 in the past to secure operating billion in 2006 RML Industries ...... 1 space, Mosaic Youth Theatre is help- statewide. The Somerset Collection ...... 1 ing to fund part of the renovations Sommers Schwartz ...... 16, 18 at the new University Prep Science Stokas-Bieri Real Estate ...... 26 and Math Elementary School in De- Stryker ...... 13 troit in exchange for space in the Thompson Educational Foundation ...... 3 TI Automotive ...... 13 school building. TRW Automotive Holdings ...... 13 That space-sharing approach TTi Global ...... 13 helped earn Mosaic the title of University of Michigan Health System ...... 16, 18 Crain’s Best Managed Nonprofit in US Signal ...... 10 2006. Visteon ...... 13 At that time, Mosaic helped WDET 101.9 FM ...... 24 raise money for the renovation of West Michigan Environmental Action Council . . . . 12 The Work ...... 24 the Detroit Institute of Arts’ main auditorium in exchange for using it as a performance venue and to- Department index ward the cost to build out space it used for seven years at University BANKRUPTCIES ...... 23 Prep Academy until the school need- BUSINESS DIARY ...... 21 ed it. CALENDAR ...... 19 Now, Mosaic has an agreement with another University Prep CAPITOL BRIEFINGS...... 4 school. Its developer, the Ply- CLASSIFIED ADS ...... 21 mouth-based Thompson Educational PHOTOS BY NATHAN SKID/CDB KEITH CRAIN...... 6 Foundation, has agreed to lease Mo- LETTERS...... 6 saic space in the elementary MARY KRAMER ...... 9 school for $1 per year for 20 years. OPINION ...... 6 See Mosaic, Page 28 OTHER VOICES ...... 7 PEOPLE ...... 20 Start your day Is that summer in the air? RUMBLINGS ...... 29 THIS WEEK @ Want statewide business news for breakfast? It’s almost here, so get a head start on the WEEK ON THE WEB ...... 29 Sign up for the Crain’s Michigan Morning weekend with “10 Things to Do in Detroit,” WWW.CRAINSDETROIT.COM newsletter at crainsdetroit.com/morning. every Thursday at crainsdetroit.com/tenthings. 20130513-NEWS--0004-NAT-CCI-CD_-- 5/10/2013 3:15 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS May 13, 2013 GOP Medicaid plan doesn’t sit well with Dems, Snyder

At a news conference If not, they will not istration, Bolger said, because it around lunchtime in the have any insurance. has not seen any such waivers be Capitol on Thursday, Capitol “We don’t want anyone approved before by the federal gov- Gov. Rick Snyder was Briefings to be trapped in govern- ernment. Groups supportive of asked where negotia- ment assistance,” Bolger Snyder’s proposal to expand Med- tions stood on the expan- said in an interview. “We icaid as outlined in the federal Pa- sion of Medicaid. want everyone to be pros- tient Protection and Affordable As with his other top perous. We want every- Care Act were careful to note that budget priority — road one to have a healthy life, a final agreement will have to be funding — Snyder did and we want everybody’s sure to mesh with federal law. not have much to report, finances to be healthy.” Snyder’s press secretary, Sara other than that progress House Minority Wurfel, said in a statement that was slow and he wished Leader Tim Greimel, D- the administration appreciates Chris Gautz it wasn’t. Auburn Hills, called the that the House GOP put out a plan, “I’m waiting to see if either the plan heartless and irresponsible but it has “strong concerns” about House or the Senate come up with because there will be people who the four-year cap, and still believes alternative ideas and concepts that hit the lifetime cap. Snyder’s proposal is the “responsi- we can talk about,” Snyder said re- “Medical conditions like dia- ble, prudent and right thing to do.” garding Medicaid. betes, multiple sclerosis and em- Because Bolger does not, the A few hours later, House Speak- physema don’t magically disap- House Republicans came up with er Jase Bolger did not disappoint. pear after four years, but the ‘help’ their own plan, because he said Bolger, R-Marshall, at a news being offered by Republicans they will not be the party that just conference of his own, unveiled the does,” Greimel said in a statement. says “no” to an idea without offer- House Republicans’ counterpropos- “The Republican plan is shameful. ing an alternative. al to Snyder’s proposed Medicaid We can do better than this.” Bolger said he believes their expansion. It’s an expansion, too, The plan will not affect children, plan is best because it would en- but they aren’t calling it that. But it people with disabilities or the el- courage personal responsibility, does differ drastically from Sny- derly. improve the health of people in the der’s plan and from anything that is Bolger said the plan, contained in system and give recipients the op- being done across the country. HB 4714, would require the state De- tion to continue to receive benefits It gives “able-bodied adults” 48 partment of Community Health to sub- under the state Medicaid system months total to be on Medicaid, mit a waiver to the federal govern- or use a Health Savings Account to and after that the hope is they will ment and have that waiver be purchase coverage through a fed- have gotten healthy, found a job approved before any money could eral health care exchange. that provides insurance or have be used for the program. Chris Gautz: (517) 403-4403, enough money to purchase it on There has been some initial [email protected]. Twitter: their own. pushback from the Snyder admin- @chrisgautz Pop-up accelerator course targets tech talent

BY AMY HAIMERL “One of the things I really like is al times as they got advice and Buying a Mercedes-Benz is an investment. Here’s an exceptional opportunity. CRAIN’S DETROIT BUSINESS that the city is trying to build an mentoring. Now they are building authentic tech ecosystem based on VocalTap, a platform for online edu- Up to 5 months’ payment credit on your current There are pop-up shops and pop- its history of entrepreneurship,” cational content that they said Mercedes-Benz Financial Services lease* up restaurants. Now there’s a pop- she said. “These days you have solves a pain point in the market. with the purchase of a new 2013 or 2014 Mercedes-Benz. up accelerator. people all over the world dubbing “NewME forced Steve and me to * Eligible customers will receive up to 5 months’ payment credit on their current lease with a lease or finance of any new 2013 San Francisco-based NewME Ac- themselves ‘Silicon Whatever.’ De- work harder,” Yadav said. “It real- or 2014 Mercedes-Benz vehicle through Mercedes-Benz Financial Services. Certain exclusions apply. See dealer for details. celerator is offering an intensive troit is not doing that.” ly accelerated our learning, being three-day course, called the So far, two Detroit-based busi- around really smart dudes and NewME Detroit PopUp, for tech nesses have participated in the having that support network.” entrepreneurs in Detroit from NewME Accelerator: Ubi Video and Now that the program is over, May 29-31. Participants will get Rippld. And on Monday, Hans Ya- Yadav and Otu are staying in San one-on-one coaching sessions and dav, a 2011 graduate from the Uni- Francisco rather than returning to workshops to improve their pre- versity of Michigan, and his partner, their hometown of Atlanta. But sentations. Plus, they’ll get to Steven Otu, completed the spring Benton said about half of the entre- pitch their ideas to a panel that in- accelerator class. preneurs in the NewME accelera- cludes Jim Xiao, an analyst at De- For 12 weeks, they lived and tor return to their home cities. troit Venture Partners. worked with six other entrepre- “What ends up happening with Shareholder problems? NewME, which is hosting the neurs. NewME covered their basic those people is that they become a Changing the Odds in Our Clients’ Favor event in Detroit-based TechTown, is living expenses and offered weekly source of information,” Benton also using the pop-ups as a talent mentoring and speakers, and gave said. “It’s really a way to make pool, hoping to identify candidates Brian E. Etzel Jayson E. Blake Marc L. Newman Kevin O’Shea access to investors. The cost? A 4 sure that all the stuff happening for its invitation-only fall accelera- percent equity stake in the business. here isn’t staying trapped here.” tor class, which runs for 12 weeks Yadav, 24, and Otu, 26, said it Amy Haimerl: (313)446-0416, in San Francisco. was worth it. During the process, [email protected] Twitter: “One of the things that is impor- they found they had to pivot sever- @haimerlad tant to me is that we make Silicon Valley and all of the knowledge here accessible to everyone else,” said Angela Benton, CEO of NewME Ac- celerator. “It’s trapped in a bubble here. People don’t have access to it, Crain’s hires entrepreneurship editor or they don’t feel like they fit in.” To try and solve that, Benton has Amy Haimerl has joined Crain’s Detroit Business as made diversity in Silicon Valley a entrepreneurship editor, spearheading coverage of en- top priority. In fact, the NewME Ac- trepreneurship, second-stage companies and small E. Powell Milller Richard “Tony” Braun celerator only works with woman- business. and minority-owned businesses. Haimerl, 37, was most recently the editor-in-chief of Shareholder and partnership disputes Corporate governance litigation However, the NewME Detroit Pop- USAA Magazine, which covered personal finance for Minority oppression litigation Corporate control contests Up is open to anyone with an idea America’s military families. She was also an editor at Breach of fiduciary duty Securities fraud and derivative claims for a tech business. It costs $99 to CNNMoney and Fortune Small Business. register; limited slots are available. Haimerl has a bachelor’s degree in journalism and Detroit is just one stop on a 13- economics from Metropolitan State University in Denver 248-841-2200 city tour, but the city has already and was a Knight-Wallace Fellow at the University of Haimerl millerlawpc.com impressed Benton. Michigan. DBpageAD_DBpageAD.qxd 4/16/2013 1:27 PM Page 1

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Page 6 CRAIN’S DETROIT BUSINESS May 13, 2013 OPINION LETTERS Medicaid issue may A green use for stormwater Editor: the property and receive a propor- Crain’s Detroit Business Some Detroit businesses are tionate rate adjustment on drainage welcomes letters to the editor. still reeling from the sticker shock fees from DWSD. All letters will be considered for they got when they opened publication, provided they are A mix of landscape typologies require third option retroactive billing statements signed and do not defame will go a long way in helping reduce from the Detroit Water and Sewer- individuals or organizations. stormwater runoff, improving the ov. Rick Snyder is having trouble getting support from age Department and found huge Letters may be edited for length aesthetic appearance of Detroit and drainage fees. It’s time for Detroit saving the city, its residents and his own party on two major initiatives — road infra- and clarity. to seriously consider the economic businesses significant amounts of Write: Editor, Crain’s Detroit G structure and expanding health coverage to the poor. benefits of green infrastructure. money in the process. Business, 1155 Gratiot Ave., Last week, GOP House Leader Jase Bolger presented a plan that Crain’s Detroit Business recent- Detroit, MI 48207-2997. Rebecca Salminen Witt extends health coverage but creates a lifetime cap of four years. ly reported that several local busi- President Email: [email protected] The Greening of Detroit The move is viewed as an assault on low-income residents nesses had not been charged stormwater drainage fees by the and will likely touch off another round of partisan feuding. city of Detroit for several years, re- In an urban area like Detroit, Tax audit bills change Snyder originally proposed taking advantage of large fed- sulting in huge cumulative bills most of our surfaces have been Editor: eral contributions for expanding Medicaid and banking sav- (“Surprise runoff fees roil Detroit paved over or built up, rendering After reading a recent Crain’s De- ings from related areas to help pay for future cost increases. biz,” April 22, Page 3). Obviously, them impervious. As a result, com- troit Business story (“Bills see tighter tax audit rules for state,” He and a handful of other Republican governors have pro- this unexpected expense causes fi- mercial property owners end up nancial strain for the business paying for most of the rainwater April 22, Page 1) about legislation posed taking the federal money, but like Snyder, they are bat- community. It also highlights the runoff to be treated at a wastewater that would impact tax audits con- tling their own party members. economic opportunity that green treatment plant. All of the cost to ducted by the Michigan Depart- The populations most affected by chronic conditions like infrastructure offers commercial treat stormwater drainage is passed ment of Treasury, among other diabetes and hypertension often include the poorest state resi- property owners. on to Detroit Water and Sewerage things, I felt compelled to offer some Department customers. The stan- important points of clarification. dents. Managed care plans in an expanded Medicaid program Urban stormwater handling and management systems in older cities dard drainage rate a commercial The article’s point of reference could offer preventive care and help in adopting healthier like Detroit are economically and property owner pays is $499.59 per was the content of bills as they lifestyles to reduce overall costs. environmentally unsustainable. acre of property. Rates in 2012 to- were introduced in the Legislature Perhaps there is yet another compromise. The debate has Gray infrastructure systems like taled over half a billion dollars, a big (not in their most recent form), led to new ideas surfacing in state capitols around the country. Detroit’s treat rainwater as a nui- chunk of which showed up unex- and included commentary by tax sance element that must be divert- pectedly in customers’ bills last practitioners who may have assist- In Florida, for example, two lawmakers have proposed giving ed away from a site, treated at con- month. ed in drafting the bills. Two of the a stipend to an expanded Medicaid population to purchase siderable expense and disposed of Green infrastructure offers a less bills in question have undergone their own coverage directly. through the sewer system. Com- expensive, environmentally friend- significant change following input That idea may have more merit than the plan for a lifetime mercial property owners pay lier alternative for municipalities from the Department of Treasury cap the Michigan House Republicans have offered. drainage fees to DWSD that are and private property owners alike. and numerous discussions with based on the percentage of their By removing impervious surface, Rep. Jeff Farrington. These property that does not naturally ab- or increasing tree canopy or vegeta- changes have been well-received sorb rainwater, causing it to be di- tive cover, a property owner would Weigh evidence on fracking verted into Detroit’s sewer system. decrease the runoff attributed to See Letters, Page 7

As Michigan expands opportunities for gas drilling through hydraulic fracturing, aka “fracking,” the debate is es- calating. Last week, Michigan sold more than $1 million worth of leases to harvest natural gas from state-owned land. TALK ON THE WEB Opponents have launched a petition drive to place a proposal to ban fracking on the 2014 ballot in Michigan. From www.crainsdetroit.com Unlike vertical drilling, fracking involves high-pressure blasts of sand and water to release gas or oil. In northeast Re: Ford takes over as title sponsor Reader responses to stories and Re: I-375 a boulevard? blogs that appeared on Crain’s Ohio, companies are investing more than $1 billion. of Detroit’s annual fireworks I work at a business on I-375 and website. Comments may be like the idea. However, I hope they Some groups in Ohio have used misinformation, including As bad a rap as the Big Three edited for length and clarity. expand the project to reconfigure the film “Gasland,” to drum up anti-fracking support. That film seem to get, when was the last time you heard about one of the foreign Re: Dave and Chuck the Freak the interchange to make I-75 a con- has an infamous segment that purportedly shows tap water auto manufacturers stepping up tinuous highway with three lanes spurting a flame due to well contamination tied to fracking. In and giving back to the community? to take over morning slot at WRIF instead of keeping it a two-lane exit. The backup is awful. reality, the gas harming the well water was there long before They may not have manufacturing I wonder how Dave and Chuck’s Bill Serlin fracking was developed. As cable commentator John Stossel operations in this area, but they do humor will work at a U.S. station. wryly noted, that’s why it is called “natural” gas. have R&D facilities, and I see plen- They could get away with their ty of their vehicles on our streets. Downtown Detroit will become more colorful language on Canadi- In Michigan, we await the report on fracking that Gov. (BTW, I do not work in the auto in- better and better as freeways are an radio but may bump into some Rick Snyder commissioned the University of Michigan to pro- dustry, and I am not a UAW mem- filled in and converted into normal duce. Let’s look at the evidence and the pros and cons before ber.) FCC limitations in Detroit. roads. Savage13 marching off to this environmental battle. RobertArch BrewPubNate

KEITH CRAIN: Maybe we shouldn’t rush to judgment It’s been a while since the emer- dicted that the city no one seems to be up- time with Alan Mulally, CEO of general elections. Candidates for gency manager took over for the would sink into the river set anymore. I guess it’s Ford. He showed up at Ford and City Council are going to have to city of Detroit. if we ever appointed an simply time to let him got its financial house in order, us- figure out how to exert influence in Now I admit, I’ve been out of EM. Yet Mr. Orr has not do his job and take a ing just about everyone who was this new system; their role is modi- town from time to time, but I have brought down the wrath look at his results. there. fied for the foreseeable future. not heard about the sky falling in of the gods around him My only regret is that Mulally mortgaged the company The mayor’s race is fraught with on our city. or the companies doing he doesn’t seem to be to the hilt. Detroit is already mort- the same challenges. Yet hundreds Things seem to be going along business in our city. In able to do it alone. He’s gaged to the hilt. There is not of candidates have taken petitions with business as usual. If there was fact, although it proba- hired lots of consultants much chance of the city of Detroit for the mayor and council races in a blip, I missed it. Some folks, like bly is nothing more than who are charging the borrowing any more money. I’m the August primary. The top two the Detroit City Council, may have a coincidence, there city millions of dollars just glad I don’t have to pay Orr’s vote-getters for mayor will com- to be doing some belt-tightening in seems to have been a lot a month, as if the city consulting bills. pete in November. But that job, their office budgets, but nothing too more positive press nationally over has millions of dollars a month to It will be interesting to watch the too, will be different under the EM. radical as far as we all can tell. the past few weeks. spend on outside consultants. EM as he goes forward, especially The EM is off and running. We There are a lot of folks who pre- The protests have stopped, and Maybe he should spend some during the upcoming primary and wish him well. 20130513-NEWS--0006,0007-NAT-CCI-CD_-- 5/10/2013 4:49 PM Page 2

May 13, 2013 CRAIN’S DETROIT BUSINESS Page 7 OTHER VOICES: High-tech education is crucial difference

They say admitting you people and employers are essential. Almost every mathe- fact of life. Job retraining pro- hiring manager today I wish there have a problem is the first leaving positions unfilled. matician I know is also a skilled grams need to provide the skills were many more. The terrible hu- step. My problem isn’t Even as the city of Detroit musician. Amazingly, the single employers need most. Critical man toll of inadequate education finding work, it’s finding is drowning in debt most important skill is also the thinking, computers and statistics surrounds us, threatening to con- qualified workers. around us, my co-workers rarest: statistics. It can make a per- are recession-proof skills that in- sume our beloved city like a can- While the overall unem- are drowning in work. son stand out from the crowd. Sta- crease in demand every year — cer. Spending more time with ployment rate remains What are the qualifica- tistics provides the ability to un- even as employers were unable to math in school is more than a way high, this average masks tions for these new jobs? derstand technical studies, find enough STEM workers in the up, it can be a way out, breaking the real problem. It’s It starts with mathemat- marketing analysis, demograph- United States, a lottery for H-1B the cycle of poverty and its multi- called the skills gap: While ics, but more is needed. A ics, risk, financial data, regulatory visas to import more was needed tude of attendant ills. In our in- many are unemployable computer language is a compliance and a hundred other every year, even in the depth of the creasingly knowledge-driven econ- because their old jobs are David Corliss big plus, but the specific things that make candidates more Great Recession. omy, the spiraling cost of gone forever, the Bureau of Labor language is less important than be- valuable to almost any employer. The consequences of the skills ignorance has become the price of Statistics reports 3 million open ing able to give clear directions on It’s never too late to start. Be- gap hit Southeast Michigan harder freedom itself. jobs, mainly in high-paying, high- how something is to be done. cause high-tech jobs often have a than anywhere else. Although I’m David Corliss is a statistical as- tech STEM (science, technology, Classes that make a person think, shelf life of only about five years, a not the only person born into trophysicist managing the emerg- engineering, mathematics) posi- analyze and communicate — like constant need to learn new skills poverty in Detroit who escaped by ing technologies team at Magnify An- tions. science labs, writing and music — and reinvent one’s career is now a way of a high-tech education, as a alytic Solutions in Detroit. In my own profession — statistical analysis for business — the unemployment rate is negative, with more job openings than qualified

LETTERS CONTINUED ■ From Page 6 by others in the Legislature, including Sen. Jack Brandenburg, as well as the Michigan Association of Certified Public Accountants and allow the department to continue effectively serving all citizens of Michigan through the fair The name is new. and equitable administration of state tax laws. Additionally, House Bill 4291 was amended after Treasury staff testi- fied before lawmakers, explaining how and why Treasury uses sam- The trusted partnership pling techniques; that sampling is a standard audit technique employed by many other states; and that Trea- sury works with taxpayers when with our clients stays designing a sample of their business cycles. In fact, according to the Internal Revenue Service, “sampling should be considered … when- the same. ever excessive amounts of time or resources are anticipated in exam- ining all of the taxpayer’s expenses or projects.” Additionally, sampling is not a controversial issue for the vast majority of audits. On the con- trary, it would make audits unduly burdensome for taxpayers if they had to document every transaction for an audit. We understand the personal service, attention, and Treasury is constantly working integrity you’ve come to expect from your bank. As a result to enhance its customer service, a priority which will continue in the of putting our customers ﬁrst for over one hundred years, years to come as the department fully implements the simple, fair, we fully understand how to live up to those expectations. and efficient tax structure that is now leading the reinvention of And we’ll continue to prove it to you, each and every day. Michigan. Andy Dillon State treasurer EDITOR’S NOTE: Changes to the bills were made after the story was published. Stock shelves better Editor: I would buy more goods from lo- HAS BECOME cal stores if they just stocked what I need. I am finding that more and more of what I want is no longer in

local stores, so I buy on the Inter- PERSONAL BUSINESS COMMERCIAL PRIVATEBANK net and pay the extra shipping charge. Why should I pay Michi- gan a tax (“U.S. online sales tax TO LEARN MORE, CONTACT: FirstMerit.com/MeetUs law would lend teeth to pending David Lochner, President, Michigan state legislation,” Sherri Welch 248-324-8555 david.lochner@ﬁrstmerit.com. blog, May 7) when I can’t get the at or product I want from the retailers in the state? Member FDIC Valerie Panosian 1399_FM13 Royal Oak 20130513-NEWS--0008-NAT-CCI-CD_-- 5/10/2013 3:16 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS May 13, 2013 New insurance cooperative to join Intellectual Property | Litigation | Technology health exchange; targets small biz

Transactional BY JAY GREENE the Michigan Department of Insurance In its first year, Consumers will experience on par CRAIN’S DETROIT BUSINESS and Financial Services. write premiums in excess of $100 Individuals and small business- million with about 37,000 en- with the major Silicon Small businesses and individu- es with two to 50 employees initial- rollees, Litos projects. als will have another option to pur- ly will be offered three levels of in- Litos said hospitals and physi- Valley law firms. chase health insurance on the fed- surance coverage — based on cians will be given monthly claims eral exchange beginning Oct. 1 as – BRADBRAD KANCIGOR,KANCIGOR, ASSOCIATEASSOCIATE GC essential-benefits requirements — data reports on patients served to SySynopsys,nopsys, InIncc East Lansing-based Consumers Mu- through the federal exchange, help them manage care. Con- tual Insurance of Michigan will ramp Litos said. Private agents will sell sumers has contracted with the up operations under CEO Denny the policies outside the exchange. American Health Data Institute, a di- Litos. “We will be a vision of Key Benefit Administrators YOUNG BASILE. Under the Patient Protection consumer-dri- Inc. of Indianapolis, to provide the and Affordable Care Act of 2010, ven company monthly utilization reports. Strategic advisors to the world’s Consumers Mutual received a $72 and work closely But Udow-Phillips said the key most innovative companies. million low-interest federal loan in with providers for Consumers Mutual will be how May 2012 to form a nonprofit coop- in the state” to many members it attracts. erative mutual insurance compa- improve quality, She said it will be difficult for ANN ARBOR TROY SILICON VALLEY CHICAGO ny. The loan must be repaid by said Litos, a De- Consumers to attract small busi- 2033 to the U.S. Department of Health www.youngbasile.com troit native who nesses because they generally se- and Human Services. has worked as a lect health plans based on prices. Last week, Consumers Mutual, hospital admin- Litos Individuals select plans based on one of 24 federally funded coopera- istrator most of convenience and whether their tives that received $2 billion in his 35-year career, including at provider is in the network. loans, was awarded its license from what is now McLaren Greater Lansing “Pricing will be difficult because hospital and at Doctors Medical Cen- Blue Cross has the market covered ter in Modesto, Calif. on (reimbursement arrangements) After the first year, 51 percent of with physicians and hospitals,” the board of Consumers Mutual will Udow-Phillips said. be elected by the insured members. Litos said Consumers has been Marianne Udow-Phillips, direc- developing an initial provider net- tor of Ann Arbor-based Center for work of 7,000 to 9,000 physicians, Healthcare Research and Transforma- 30 hospitals and other medical pro- tion, said Consumers will face fessionals. The network will ex- tough competition, including from pand as new markets are entered. Blue Cross Blue Shield of Michigan. Businesses and consumers Blue Cross and other insurers won’t know premiums for health already have provider contracts plans until open enrollment be- and marketing plans in place to en- gins. Plans must submit pricing to roll the more than 500,000 people the state by May 31, but the infor- coming into the market in 2014, mation won’t be public until Oct. 1. she said. Consumers Mutual was created “It is a very complex thing to put after 15 county health plans decid- together a health plan with quite a ed to contribute $10,000 each to bit of competition in the market,” fund the loan application for the Udow-Phillips said. “The theory is cooperative with the Centers for good to develop member-led initia- Medicare and Medicaid Services. The tives. It is starting a whole new plans operate in 74 of the state’s 83 health plan from the ground up that counties with 150,000 covered lives. will be challenging.” “The county plans, organiza- Over the past several months, tions geared to serve the unin- Consumers Mutual has hired 23 sured, saw that their organiza- employees to prepare for open en- tions would sunset in 2014 and rollment this year, Litos said. Five wanted to see their members get more employees will be hired this served under the Affordable Care year and five by the end of 2014 to Act,” Litos said. total about 35 employees, he said. Udow-Phillips said several coun- The Affordable Care Act gave ty plans are evaluating their mis- states the option of managing a sion under health reform. Most of health insurance exchange or al- their members would be eligible lowing the federal government to. for Medicaid, she said. The Legislature so far has re- Consumers now joins other in- fused to approve a federal-state surance cooperatives, including partnership exchange, which Seattle-based Group Health Coopera- would have given the state some tive with 625,000 members and St. control over operations. Paul-based HealthPartners with 1 Although the federal govern- million members. ment will oversee the state’s ex- “Successful co-ops have been de- change, Insurance Commissioner veloped in the past,” Udow- Kevin Clinton still has authority Phillips said. “But there are not to regulate the plans on it. recent replication models.” Consumers Mutual will partici- Top executives at Consumers pate in the federal exchange, com- Mutual include Tom Murar, chief peting with commercial and non- medical officer; Diana Criss, direc- profit insurers that are expected to tor of quality and utilization man- include Blue Cross, Priority Health agement measures; Jayson Welter, and Health Alliance Plan of Michigan legal and compliance officer; Kevin along with several commercial in- Walker, chief information officer; surers that haven’t yet committed. and Brad Ropp, medical director. Litos said Consumers will sell Chairman of the five-member policies starting Oct. 1 to small organizing board is Bruce Miller, businesses and individuals in executive director of Northern most of Michigan’s major metro- Health Plan and Tencon Health Plan politan areas, including Detroit, in the northern Lower Peninsula. Lansing and Grand Rapids. Even- Jay Greene: (313) 446-0325, tually the company will become [email protected]. Twitter: @jay- statewide, he said. bgreene 20130513-NEWS--0009-NAT-CCI-CD_-- 5/10/2013 11:25 AM Page 1

May 13, 2013 CRAIN’S DETROIT BUSINESS Page 9

PUBLISHER’S NOTEBOOK

Contact Mary Kramer at mkramer @crain.com. CRAIN’S MICHIGAN BUSINESS Mary Kramer Craft beers on everyone’s lips these days Wine snobs, move over. The beer snobs have arrived. And that’s a good thing for the state because the craft beer industry grew 20 percent in 2012, with an economic impact tallied at $133 million, according to an analysis by the Demeter Group Investment Bank of San Francisco. Seventeen breweries opened in Michigan last year; the state now ranks fifth in the number of breweries, microbreweries and brewpubs. That kind of impact and growth has garnered attention in Lansing, where the Michigan Liquor Control Commission and Gov. Rick Snyder are proposing ways to improve distribution of craft beers all over the state by giving the brewers a chance to sell directly to consumers instead of going through wholesale distributors. That’s smart. So where did this revolution come PHOTOS BY JON BROUWER from? Many credit Charlie Papazian, who started brewing his own beer as a student at the University of Virginia. After moving to Colorado, he continued to brew beer at home and taught classes in the process. His Towers of power handouts were the basis of what became the bible of the movement, The Complete Joy of Homebrewing. Membership associations followed, Statewide effort aims to tie loose ends of the Net first for home brewers and then for brewers who launched for-profit BY MATTHEW GRYCZAN “It may take a year or more (after companies. CRAIN’S MICHIGAN BUSINESS completion) before we begin to see And the craft beer movement was all the things that it can do for born. s Guy Goodmonson scaled Michigan,” said Elwood Downing, It was Papazian who came up with the 150-foot-tall water tower vice president of member relations the “Beer City USA” competition. As to reach the top platform and communications for Merit Net- A work. “But you can compare this to we went to press last Friday, three that had no handrails, he ques- Michigan cities — Grand Rapids, the changes that a rural community Kalamazoo and Ann Arbor — were tioned his sanity more than once. sees when the interstate freeway vying for the 2013 title. Grand But his drive to offer high-speed wire- system is built nearby.” Rapids had shared the title with less Internet service through a swath of Asheville, N.C., since 2012. rural Newaygo County proved stronger Cruisin’ down the highway The vote is really a community- than his fear of heights. After bolting building effort more than a judgment equipment on the water tower, 100-foot Gus Goodmonson bolts equipment to water While the interstate highway sys- towers, grain silos — anything high enough to on the best beer. But that’s the grain silos and anything else high tem generally serves population point. Cities that can rally the votes help spread high-speed wireless Internet service centers and bypasses rural areas, enough to radiate a good radio signal throughout rural West Michigan. needed to put a town on a beer map during the past five years, Goodmonson Merit’s information superhighway have created a community around a doesn’t. is selling his home-based West Michi- service to smaller communities are brac- convivial segment of the economy. Merit’s system makes stops in more gan business, AirGrant.com Inc. in Grant, ing for strong growth — or consolidation And in a state that continues to try to than 36 U.P. cities and small towns to a larger entity and hanging up his like Goodmonson’s AirGrant.com. attract and retain young talent, these throughout the Lower Peninsula, in- ladders. The $130 million project, overseen by bragging rights are priceless. cluding Escanaba, Oscoda, Tawas City, Michigan has many more Guy Good- Ann Arbor-based Merit Network Inc., is Summer is tourism season in Posen, Mio, Houghton Lake, monsons. They have been the first wave the tip of an iceberg. But it serves as a Michigan. Day trips to ballgames. Charlevoix, Beulah and Manistee. of entrepreneurs to penetrate what guidepost of things to come for rural Weekend getaways for camping, To take the freeway analogy one step could be considered the state’s Internet communities. fishing, boating, golf and other further, it will be up to public and pri- wilderness — sprawling tracts of Better than half of Merit’s superhigh- outdoor activities. vate entities to provide their own on homes, businesses and public agencies way system was completed last month, It’s also a good time to check out and off ramps — called laterals — to the spread so far apart that established and the remainder is expected to be craft beer breweries and beer main fiber-optic trunk lines being laid high-speed carriers were hard-pressed completed early next year. Experts say festivals. One entrepreneurial couple, by Merit and its corporate partners. to make a profit. the system, serving more than 60 per- Steve and Laura Johnson of Troy, This opens opportunities to a bewil- Soon, a second and much larger wave cent of Michigan’s counties, will light started Motor City Brew Tours, dering array of more than 150 last-mile will hit Michigan. Fed by projects such up the state in ways no one can predict. offering bus, walking and bike tours of providers that serve Michigan. They major beer destinations. They ran 60 as a 2,300-mile fiber-optic trunk line that In the offing: lower cost and faster In- provide Internet through telephone events last year and were taking a spans from Ironwood in the western end ternet speeds for all the nooks and cran- lines, coaxial cable, radio signals to crowd to Grand Rapids over the of the Upper Peninsula across the Mack- nies of Michigan, stronger rural busi- fixed antennas and mobile devices and, weekend, with other events happening inac Bridge and down to Monroe at the nesses that can tap worldwide markets, infrequently, fiber-optic cables. almost weekly. You can find the list on bottom of the Lower Peninsula, compa- and better educational opportunities motorcitybrewtours.com. nies that provide the last mile of Internet everywhere. See Towers, Page 10 20130513-NEWS--0010-NAT-CCI-CD_-- 5/10/2013 10:35 AM Page 1

Page 10 CRAIN’S DETROIT BUSINESS May 13, 2013 CRAIN’S MICHIGAN BUSINESS Towers: Spreading the Net ■ From Page 9 No one knows exactly how many net access to students and pay sig- last-mile providers are in the state, nificantly less for potentially 100 due in good part to the fact that times more Internet capacity now fixed wireless Internet providers that the REACH-3MC lines pass are largely unregulated. The best through Adrian, Hillsdale and Jack- list has been compiled by Connect son, said James Jones, the college’s Michigan in Lansing, and that orga- information technology director. nization still gets surprised when At a cable dedication ceremony its field technicians survey an area. in Hillsdale in February, Jones was “It’s not uncommon when we go quoted as saying he paid about out to validate $32,000 a year for two Internet ser- some of the in- vices of not more than 12 megabytes formation that per second from the college’s main known Internet campus in Jackson to its satellite providers are Lenawee Center in Adrian. With giving us that we the new link, he expects to spend Reliable, modernized grid find a wireless about $1,000 a year for the connec- spectrum that tion fee for bandwidth that has the we didn’t recog- potential to reach 1,000 megabytes Energy is essential to the way we live, work and play. nize before,” per second. The college also has a said Eric Freder- satellite campus in Hillsdale. Frederick ITC operates, builds and maintains the region’s electric ick, program “The multiplication of the op- manager for Connect Michigan, a portunities here is just immense,” transmission infrastructure. We’re a Michigan-based company federally funded program charged Jones said. “We also see that there with developing a map of broad- is the extreme value of our stu- working hard to improve electric reliability and increase electric band Internet service in the state. dents being able to connect with Fixed wireless Internet providers low-cost, rural ISP connections. transmission capacity throughout the Midwest. can use small bands of the radio Many of our offerings are online. spectrum without registering with “Actually, one of our largest the Federal Communications Commis- campuses, if you’d like to call it sion. that, would be the online campus, “In a rural area, we may find a and it’s continuing to grow.” guy who sees a need for broadband The advantage for Jackson Com- because DSL is not coming out or munity College www.itctransco.com cable is not coming out, and he will and other educa- put some equipment on a tower,” tional members Frederick said. “Because it’s a fair- of the Merit net- ly low capital outlay to become a work is that provider compared to DSL and ca- they pay access ble, they may rent space on a tower, fees that aren’t put up equipment and serve hand- dependent on fuls of households.” the mileage of While no one knows exactly how the circuits, as the dispersion of broadband Inter- some for-profit, Downing net by Merit will affect the commu- point-to-point nities it serves, everyone agrees the services are, Downing said. landscape will never be the same. Downing said it’s a bit tricky to estimate how much savings Merit members will reap after they begin Following the lines using the new network because The biggest fiber-optic cable that some technologies have different Merit and its partners is stringing upload and download speeds. Over- on utility poles and burying under- all, though, they should see at least ground throughout Michigan is a 40 percent reduction in cost for less than three-fourths of an inch in comparable services. diameter. Yet a single such cable Based in Ann Arbor and owned theoretically can carry 1,000 giga- and governed by Michigan univer- bytes of information or more a sec- sities, the nonprofit Merit provides ond depending on the equipment network services to more than 270 used to send and receive the light members, including K-12 schools, beams that carry digital data. libraries, museums, governmental Hoping to bring fiber-optic and organizations, universities and wireless Internet to public-sector nonprofit health agencies through- entities and small communities, the out the state. federal government allocated $4.7 Jones hinted at another advan- billion to the U.S. Department of Com- tage in his comments in Hillsdale: merce’s National Telecommunications Everyone living in rural commu- and Information Administration to ex- nities served by new Merit lines is pand access and use of broadband automatically gaining better ac- services as part of the stimulus cess to broadband Internet. package, passed in 2009. The three subrecipients in As part of that package of grants round one of the REACH-3MC pro- for projects in all 50 states, Merit re- ject are ACD.net in Lansing, Lynx 8I\ZQUWVa+WV\MUXWZIQVM8MZXM\]IT+ITMVLIZ ceived two grants to bolster the Network Group LLC in Kalamazoo state’s “middle mile” backbone and TC3Net in Adrian. with fiber-optic cables. It completed Because it is being built largely round one of the $33.3 million phase with federal funds, the Merit proof the REACH Michigan Middle Mile ject has a high public profile, said Collaborative, which laid 1,017 miles Frederick of Connect Michigan, of cable in the Lower Peninsula last who also works with smaller com- month. (REACH stands for rural, munities to encourage their under- education, anchor, community and standing and use of the information health care.) The lion’s share runs tsunami. from Monroe directly west to “You can see what Merit is do- Berrien Springs, then moves north ing on a map, but what you don’t along the Lake Michigan shoreline see is that AT&T, US Signal, Centu- all the way to Mackinaw City. ryLink and others all have fiber Jackson Community College in throughout the state they have Jackson expects to improve Inter- See Next Page 20130513-NEWS--0011-NAT-CCI-CD_-- 5/10/2013 11:09 AM Page 1

May 13, 2013 CRAIN’S DETROIT BUSINESS Page 11 CRAIN’S MICHIGAN BUSINESS

From Previous Page built for their own use,” he said. Grand Rapids-based US Signal has one of the largest fully de- ployed fiber-optic networks in the Midwest, having laid more than WE CAN HELP 5,000 miles of cable since 2000 for a total of more 14,000 miles of lit ca- JON BROUWER ble and fiber-optic rings. A grain silo helps broaden broadband While US Signal has not been in- in West Michigan. YOUR BUSINESS SAVE volved in REACH-3MC, the recent announcement that the project has cording to a Connect Michigan completed construction and is in video featuring John Spigarelli, former vice president of marketing ENERGY AND MONEY. the final process of lighting those fiber routes is good news for Michi- and e-commerce at Getz’s. Much of gan, said Barbara Boshoven, the that is due to the company’s Inter- company’s vice president of corpo- net sales, which accounted for Start saving today! rate affairs. about 65 percent of revenue in 2011. “The availability of services that “The Internet has made it so Call 866.796.0512 (press option 3) or online utilize fiber-optic transmission for much easier to communicate with high-bandwidth applications into people,” said Spigarelli, estimating dteenergy.com/savenow to find out how your underserved markets will create the online chat line system institut- new economic opportunities for ed more than two years ago by the business can be more energy-efficient. Michigan businesses, consumers retailer reduced phone volume 80 and the businesses that support percent from where it was five them,” Boshoven said. years ago. But other telecommunications Orville Crain, who founded Klev- and cable TV companies see the er Innovations in 2005 with Jeff Merit project as unfair competi- Kempker and Matt Jacobs, said the tion and “are pretty mad,” Freder- manufacturer of safety box-cutters ick said. and other industrial products relies “Whenever I meet with them, heavily on the Internet to market they always say, ‘Well, we didn’t its products to international mar- use government subsidies.’ ” The kets. When an accident with an cable industry is often vocal about open-blade cutter occurs at a com- the competition because it installed pany, the safety supervisor often extensive fiber networks through- does an Internet search under the out the state without government terms “safe box cutter” and will funding, he said. “find us every time on the Inter- “Merit and others are today of- net,” Crain said. fering services primarily to educa- He credits the brand awareness tional facilities and government and presence that Klever Innova- agencies and not to the residents tions has painstakingly cultivated and businesses of Michigan,” said on the Internet with helping boost Christine Reap, communications revenue past $3.5 million last year. manager in the Washington, D.C., Some techniques include posting offices of Frontier Communications safety videos and a professionally Corp., the Stamford, Conn.-based produced website. company that in 2010 bought Veri- Ironically, Goodmonson launched zon Communications’ land line ex- AirGrant.com because he couldn’t changes in Michigan. get Internet service five years ago in “Frontier has lost some school Grant to transmit the blueprints for districts and government agencies metal stamping dies he designed at as customers to Merit since they home as metal-forming engineer. FREE WEBINAR: MAY 15, 12–1 P.M. are able to offer below-market pric- “I would have to drive to Neway- ing. In addition, their capital costs go — probably about 20 minutes to deploy broadband have been sub- away — with a CD, and I would up- sidized by federal NTIA grants. load my designs on a dial-up con- Frontier, which serves nearly nection I was buying,” Goodmon- son said. “By the time I got back half of the land area of the Lower In Partnership with: Presented by: Peninsula, has invested about $134 home, there would be changes on million in Michigan since 2010, the designs, and I would have to do ™ largely for equipment and facilities it all over again.” to enable broadband expansion. Borne out of his own need for bet- “As a result, 85 percent of house- ter Internet connections, Goodmon- holds and business now have access son launched the sideline business to land-based broadband serviced with his wife, Margaret, that now by our new, state-of-the-art, redun- serves about 250 customers. dant fiber backbone network,” Reap “But I think it is time to get out,” Wellness said. said Goodmonson, 63. “The company is getting so big that I need to go a lot bigger and hire several people Programs What’s in it for me? to service everyone, but then the When he talks about what the fu- profitability is going to go down.” Reserve your seat: Denise Christy Rod Reasen II Kate Kohn-Parrott ture may bring, Frederick at Con- He sold his business to Newaygo crainsdetroit.com/events nect Michigan looks beyond the cou- County Advanced Technology Services Addressing these issues: ple of hundred broadband Internet in Fremont, an educational About the Webinar Denise Christy, founder and Rod Reasen II, president providers in Michigan to the mil- telecommunications network of CEO of iSelect Custom Benefits of Healthiest Employer LLC. Wellness programs will be lions of users of Internet in the state. the Newaygo County Regional Educa- Store. Former market president Reasen’s organization offers changing just like everything Frederick points to companies tion Service Agency that already of Humana, Christy’s company data and research related else in health care as 2014 such as Getz’s Clothiers in Mar- serves about 600 customers. markets a multicarrier private to wellness programs in 40 approaches. But companies may quette and Klever Innovations LLC in Goodmonson said it’s likely con- health insurance exchange in markets across the country. stop using these programs to Grand Haven as examples of what solidation will occur in the wireless Michigan. control health care costs, as the broadband can do for economic de- Internet industry among compa- use of health care exchanges Moderator: velopment. And he sees much room nies like his that are facing the will force the business plan of for improvement, as only about economies-of-scale problem. Kate Kohn-Parrott, CEO of the Greater Detroit Area Health wellness programs to adapt. two-thirds of Michigan small busi- “I wouldn’t have done this if I Council. Prior to working for former Michigan House Speaker This webinar will address ways nesses subscribed to broadband In- could’ve paid somebody $50 a Andy Dillon on health care issues, Kohn-Parrott was Chrysler in which large companies and ternet service last year. month to get reliable Internet,” he Group’s director of integrated health care and disability from small companies will use wellness Getz Inc., the parent of Getz’s said with a laugh. “I have other 2004 to 2008. GDAHC is a partner on the Health Facts series programs in 2014 and beyond. Clothiers and its online business, is things to do.” with Crain’s Detroit Business. one of the top five stand-alone re- Matthew Gryczan: (616) 916-8158, tailers of Carhartt work apparel [email protected]. Twitter: and activewear in the nation, ac- @mattgryczan 20130513-NEWS--0012-NAT-CCI-CD_-- 5/10/2013 10:36 AM Page 1

Page 12 CRAIN’S DETROIT BUSINESS May 13, 2013 CRAIN’S MICHIGAN BUSINESS Social media, old-fashioned hard work link up to stem GR flood

BY ROD KACKLEY thanks to inter- special Web page for flood updates: launched immediately,” he said. SPECIAL TO CRAIN’S MICHIGAN BUSINESS nal lists of envi- update.grcity.us. That page re- Social media platforms were pri- THE 9-1-1 ON SOCIAL MEDIA ronmental ac- ceived 4,430 hits April 20, the day mary methods of communication Why use social media as part of an Eric DeLong, the deputy city tivists who Mayor George Heartwell declared a for Amway Corp. after its headquar- emergency plan? manager of Grand Rapids, said vol- regularly take state of emergency. Before the wa- ters campus, upstream from Grand Ⅲ It is accessible through most unteers helped keep the worst flood part in events to ters of the Grand River stopped ris- Rapids on the banks of the Grand mobile devices. the city had seen since 1904 from clean up the ing, the page received 11,975 hits. River in Ada, was closed April 19. Ⅲ You have a lifeline with wiping out downtown landmarks Grand River and “We found it to be a highly valu- Amway’s director of public rela- customers, employees and staff. like the JW Marriott and Amway others who are able way to communicate,” said tions, Andrea Clark, said the com- Ⅲ Most of what you need to do can Grand Plaza hotels along with the active in volun- Greg Sundstrom, Grand Rapids’ pany used social media posts to stay be done from a smartphone. Grand Rapids Public Museum on the teer legislative Schoonmaker city manager. “The city has not per- in touch with employees and cus- Ⅲ Twitter, Facebook and blogging banks of the Grand River. lobbying. fected its use of social media, but I tomers through the three days the are good ways to stay in touch and “We built a 6-foot-tall wall of “Because they knew us, they can assure you that we will.” headquarters buildings were should still be accessible even if sandbags between the Forslund knew we were serious,” Schoon- Derek DeVries, a senior associ- closed. That included corporate and your website is down. Building and the JW Marriott in maker said. “Once it became a ate at Lambert Edwards & Associates, Amway North America Facebook Ⅲ You can gather information and minutes — not even an hour,” De- movement and people saw there a public relations firm in Grand pages along with the Amway Insid- then push it along to your audience. Long said of the April 20 effort. was a lot of activity going on, it be- Rapids, said the push by the West er blog. Ⅲ You can rely on one or two It all started with the simplest of came somewhat easier. There were Michigan Environmental Action Amway’s manufacturing and channels — such as Facebook, equipment: an iPhone and a a number of people coming down Council to get volunteers to fill production operations were unaf- Twitter and LinkedIn — to publish Google Chrome laptop. who had never heard of us before.” sandbags is a good example of what fected by the flood. The Plaza Tow- crisis communications quickly. Dan Schoonmaker, director of The hundreds more who fol- can be done with social media. ers on the banks of the Grand Riv- Ⅲ Platforms such as Tweet Deck, communications for the West lowed the first 500 volunteers were “It quickly went viral because er in downtown Grand Rapids was HootSuite or Sprout Social allow Michigan Environmental Action Coun- recruited through traditional news people are good and like to help,” not as fortunate. you to send one message through multiple sources. cil — a volunteer organization that media outlets. However, Schoon- he said. “WMEAC was able to tap Residents of apartment and con- has been devoted to environmen- maker said, the West Michigan En- into that good will.” dominium units in the 32-story Also … tal education and advocacy since vironmental Action Council didn’t Craig Clark, owner of Clark Com- building, along with customers of 1968 — was at an Earth Day event send out a single press release. Nei- munications in Grand Rapids, the Courtyard by Marriott hotel Ⅲ Have social media infrastructure at Aquinas College about a mile ther did city officials. thinks it is imperative that compa- that is part of the building, were in place before a crisis to build trust. east of the Grand River when he Local media picked up on the nies and municipalities have some evacuated as water from the Grand Ⅲ Be sure website is mobile-friendly. got the city’s call for help. story from the council’s social me- type of communications protocol as filled the basement and garage. Ⅲ It can be valuable to have a He and a colleague started send- dia activity. part of an overall emergency plan. Plaza Towers used its Facebook “dark site” ready in case your ing tweets and emails to council Grand Rapids officials — who “Social media has shown us how page to stay in touch with resi- regular website crashes. faithful with the colleague’s iPhone have long had an interactive web- quickly information can travel and dents, many of whom were still out Ⅲ Using a cloud-based system as and Schoonmaker’s laptop. site that includes City Commission how fast inaccurate information of their homes a week after the primary or backup to your regular Schoonmaker said the council agendas and official announce- can be perpetuated, so it’s impor- flood began to subside. system can help because it shouldn’t be affected by a local crisis. was able to recruit 500 volunteers ments and allows residents to pay tant that the facts of the situation Residents used the same Face- directly through social media, fees and taxes online — started a be gathered quickly and the plan be book page to express their anger. Source: Derek DeVries, Lambert Edwards 20130513-NEWS--0013-NAT-CCI-CD_-- 5/10/2013 12:02 PM Page 1

May 13, 2013 CRAIN’S DETROIT BUSINESS Page 13

Monthly Japan WHERE MICHIGAN DOES BUSINESS

Amway Co. ven with its government debt, Japan Technical Training Inc. (TTi Global) Crain’s monthly World Watch report has the fifth-largest GDP in the world Based: Ada showcases Michigan companies leading Based: Rochester Hills E at $5.98 trillion. Japan operations: Headquartered in Tokyo, the way in international business, as Japan operations: Seven offices in Tokyo, The country’s economy has mostly recov- Amway Japan G.K. operates eight Amway well as those expanding their global op- Toyohashi, Hiroshima, Yokohama and Chi- ered from the March 2011 earthquake and Plazas, which include retail, training and erations. ba tsunami that halted production of many product demonstration space for distribu- Each World Watch Monthly features a Employees: 39 manufacturing plants and blocked exports tors who sell more than 200 different prod- different country or group of countries. Products: Training tools for the automo- from its shores. Japan’s biggest export in- ucts focused on health, beauty and cooking. If you know of a Michigan company that tive industry. This includes technical, sales dustries are automotive, electronic equip- Employees: 400 exports, manufactures abroad or has fa- and other types of training. ment, machine tools and processed food. Products: Nutrilite vitamins and food sup- cilities abroad, email Jennette Smith, Top executive: Yasu Kanno, TTi Japan In recent months, Japan has been em- plements, Artistry beauty and skin care managing editor, at [email protected]. products, Amway Home household prod- broiled in large currency swings and con- ucts, Atmosphere water and eSpring air tention over its inclusion in the Trans-Pa- TI Automotive treatment systems, cookware and energy cific Partnership free trade agreement. COMING UP Based: Auburn Hills drinks Some claim unfair tariffs from the country, July: Canada Japan operations: TI Automotive operates Top executive: Mark Beiderwieden, presi- but Japan remains a critical trade player August: Germany a plant in Gunma, and sales offices in for many companies in Michigan. dent, Amway Japan September: France Nagoya and Yokohama. Employees: 194 Products: Gunma produces pump Domino’s Pizza Inc. Japan Ltd. imports, modules and armatures for Nissan, Based: Ann Arbor sells, repairs, in- Honda, and Mitsubishi; Nagoya for- Japan operations: Headquartered in Tokyo, sures and main- eign customer service sales office sup- Domino’s has a branch office in Osaka and tains Ford vehicles ports Mazda and Suzuki; and the 245 independent franchise stores across the and develops and Yokohama tank systems/pump mod- country. sells automotive ule sales office supports Nissan, Toy- Employees: 350 full time, 4,800 part time parts and acces- ota, Honda and Mitsubishi. Top executive: Scott Oelkers, president and sories. The compa- Top executive: Michiaki Sasaki, CEO ny has a product President, Fuel Systems program center in Hiroshima and a Federal-Mogul Corp. development center TRW Automotive Holdings Corp. Based: Southfield in Aichi, and there Based: Livonia Japan operations: Federal-Mogul Japan K.K. are 53 dealerships Japan operations: TRW Automotive is headquartered in Yokohama and has a across the country. Japan Co. Ltd. has one plant in Hiroshi- systems protection product manufacturing Employees: 160 ma to manufacture and deliver steer- plant and regional distribution center in Products: Ford Ex- ing systems, and four sales and cus- Shonan. plorer, Ford Es- tomer engineering offices in Toyota, Employees: 200 cape, Ford Focus, Utsunomiya, Hiroshima and Yoko- Products: Services to automotive, heavy- Ford Kuga, Ford hama. Yokohama also serves as area duty vehicle, motorcycle, aircraft and after- Mustang, Lincoln headquarters and as TRW’s technical market clients MKX and Lincoln engineering center that develops and Top executive: Kouichi Satoh, managing tests products and does application Navigator COURTESY TTI GLOBAL director Top executive: Technical Training Inc.’s facility in Tokyo engineering. TRW Aftermarket Japan Toshio Morita, man- Co. Ltd. has one sales office in Tokyo. Ford Motor Co. aging director, Ford process improvement coaching and warran- Employees: 200 Japan ty solutions. Products: Steering systems, safety systems Based: Dearborn More information: Ford sold about 3,200 Top executives: Tetsuo Kawai, general and components, airbag sensors, tire pres- Japan operations: Based in Tokyo, Ford units in 2012. manager, MSXI Japan; Xavier Vandame, vice sure monitoring systems and braking sys- president, MSXI Asia Pacific tems More information: MSXI customers in Top executive: Yoshihiro Nakane, repre- International Automotive Japan include Audi, BMW, Peugeot Citroën, sentative director, TRW Automotive Japan Components Group Jaguar and Land Rover, Renault, among others. Based: Southfield Visteon Corp. Japan operations: IAC operates Based: Van Buren plants in Kanagawa, Kyushu and Stryker Corp. Township Nagoya, along with technical centers Based: Kalamazoo Japan operations: in Nagoya and Shin-Yokohama. Japan operations: Headquar- Visteon Japan Ltd. is Employees: 450 tered in Tokyo, Stryker Japan has headquartered in Products: Instrument panels, con- a branch office in Osaka and dis- Yokohama with one sole and glove boxes and door trims tribution centers in Tokyo and customer for Acura, Nissan and Lexus brands Osaka for the sale of medical service/technical Top executive: Satoshi Mashimo, implants, surgical and imaging center, and a cus- CEO of IAC Japan Co. Ltd. technologies and patient han- tomer service/tech- More information: IAC entered the dling and emergency medical nical center in Hi- Asian market in 2006 when its majori- equipment. roshima, and one ty shareholder, Wilbur Ross, acquired Employees: 700 manufacturing plant Mitsubishi Belting Kaseihin. Products: Orthopedic joint JAPAN in Higashi-Hiroshima replacement implants, bone Employees: 315 cement and other medical Products: Instrument MSX International and surgical supplies. clusters, climate control Based: Warren Top executive: Peter heads and multi-informa- Japan operations: MSX International Bradley, president, tion displays KK operates one office in Tokyo. Stryker Japan Tokyo Chiba Top executives: Daisuke Take- Employees: More than 20 da, representative director; John Osaka Products: MSXI’s Retail Network So- Yokohama Varty, director for Japan OEM pro- lutions provides vehicle manufactur- Nagoya grams and engineering Hiroshima ers with dealer training development More information: Key customers in and delivery in sales and after sales, Japan include Nissan, Honda, Mazda, Mit- training academy management, deal- subishi and Toyota. er performance competitions, dealer Compiled by Ryan Felton COURTESY IAC GROUP mystery shopping, standard audits, Sources: Crain’s research, CIA World Factbook IAC’s technical center in Shin-Yokohama 20130513-NEWS--0014-NAT-CCI-CD_-- 5/10/2013 12:02 PM Page 1

Page 14 CRAIN’S DETROIT BUSINESS May 13, 2013

CRAIN'S LIST: LARGEST MICHIGAN WOMAN-OWNED BUSINESSES Ranked by 2012 revenue

Company Revenue Revenue Michigan Michigan Percent Address ($000,000) ($000,000) Percent employees employees woman- Rank Phone; website Majority owner 2012 2011 change Jan. 2013 Jan. 2012 owned Type of business RKA Petroleum Cos. Inc. Kay Albertie $719.0 $631.0 14% NA NA 100% Petroleum wholesaler, biodiesel, ethanol, E-85, jet A and jet A1 1. 28340 Wick Road, Romulus 48174 primary shareholder products, compressed natural gas and liquefied natural gas as well (734) 946-2199; www.rkapetroleum.com as a hauler of crude oil

MotorCity Casino Hotel Marian Ilitch 459.8 472.0 -3 1,973 2,178 100 Casino, hotel, dining, spa and theater 2. 2901 Grand River Ave., Detroit 48201 owner (866) 752-9622; www.motorcitycasino.com

Elder Automotive Group Irma Elder 365.6 309.4 18 268 293 100 Automobile dealerships 3. 777 John R Road, Troy 48083 CEO (248) 585-4000; www.elderautogroup.com

Two Men and a Truck International Inc. Mary Ellen Sheets 261.2 220.0 19 NA NA 50 Franchised moving company; home moving and corporate 4. 3400 Belle Chase Way, Lansing 48911 founder relocation services, packing and unpacking services (800) 345-1070; www.twomenandatruck.com

Strategic Staffing Solutions Inc. Cynthia Pasky 208.7 220.0 -5 559 559 77 Provides consulting and staff augmentation services, vendor 5. 645 Griswold St., Suite 2900, Detroit 48226 president and CEO management programs, executive search services, call center (313) 596-6900; www.strategicstaff.com technology and a Detroit-based IT development center

Brazeway Inc. Hickman family/ 146.1 119.1 23 48 46 65 Producer of aluminum frost-free evaporators for household 6. 2711 E. Maumee St., Adrian 49221-0749 Stephanie Boyse refrigerators and a leading supplier of HVAC and automotive- (517) 265-2121; www.brazeway.com president and CEO extruded aluminum tubing and tubular components

Vesco Oil Corp. Marjory Epstein 144.0 134.1 7 174 NA 60 Distributor of automotive and industrial lubricants, petroleum and 16055 W. 12 Mile Road, Southfield 48076 chairman aftermarket products and chemicals (248) 557-1600; www.vesco-oil.com Lillian Epstein Stotland 7. general manager Lena Epstein Koretzky general manager Tom Holzer Ford Inc. Constance Holzer 141.6 128.6 10 NA NA 98 Automobile dealership 8. 39300 W. 10 Mile Road, Farmington Hills 48335 president and CEO (248) 474-1234; www.holzerford.com

Buff Whelan Chevrolet Kerry Whelan-Thieleke 136.7 138.2 -1 117 115 100 Automobile dealership 9. 40445 Van Dyke Ave., Sterling Heights 48313 president (586) 939-7300; www.buffwhelan.com

Iconma LLC Claudine George 109.7 103.2 6 NA NA 100 Providing professional staffing services and project-based solutions 10. 850 Stephenson Highway, Suite 612, Troy 48083 managing member to a broad range of Fortune 1000 organizations (888) 451-2519; www.iconma.com

Rush Trucking Corp. Andra Rush 104.0 115.0 -10 532 NA 100 Motor carrier 11. 35160 E. Michigan Ave., Wayne 48184 president and CEO (800) 526-7874; www.rushtrucking.com

Technical Training Inc. (TTi Global) Lori Blaker 104.0 88.0 18 NA NA 100 Staffing, outsourcing and training 11. 3903 W. Hamlin Road, Rochester Hills 48309 owner, president and (248) 853-5550; www.tti-global.com CEO

Wolverine Truck Sales Inc. Lynn Terry 85.7 51.8 65 NA NA 100 Truck sales, parts and service 13. 3550 Wyoming Ave., Dearborn 48120 president (313) 849-0800; www.wolverinetruckgroup.com

Rapid Global Business Solutions Inc. Bati Devi 64.5 54.5 18 690 590 80 Engineering design services, staff augmentation, vendor 14. 31791 Sherman Drive, Madison Heights 48071 chairman management services, managed service provider, payroll, own (248) 589-1135; www.rgbsi.com vendor management system tool, recruitment process outsourcing services, production part approval process services BlueWater Technologies Group Inc. Suzanne Schoeneberger 59.1 58.6 1 152 134 51 Design, engineering and implementation of custom technology 15. 24050 Northwestern Highway, Southfield 48075 president solutions for live events, video conferencing, experiential (248) 356-4399; www.BlueWaterTech.com marketing, interactive displays, lead generation capabilities

G-Tech Services Inc. Mara Kalnins Ghafari 53.0 46.1 15 428 420 100 Recruitment and placement of engineers, technical support, 16. 17101 Michigan Ave., Dearborn 48126 corporate counsel information technology and finance and accounting professionals (313) 441-3600; www.gogtech.com on a contract and direct-hire basis

Motor City Stampings Inc. Judith Kucway 51.1 56.3 -9 NA NA 52 Stamping plant; automotive welding, assembly, dies and prototypes 17. 47783 N. Gratiot Ave., Chesterfield Township 48051 CEO and CFO (586) 949-8420; www.mcstamp.com

Rodgers Chevrolet Inc. Pamela Rodgers 51.0 49.8 2 NA NA 85 Automobile dealership 18. 23755 Allen Road, Woodhaven 48183 president (734) 676-9600; www.rodgerschevrolet.com

Systrand Manufacturing Corp. Sharon Cannarsa 49.8 45.0 11 222 150 100 Precision machining and assembly of automotive products 19. 19050 Allen Road, Brownstown Township 48183 president and CEO (734) 479-8100; www.systrand.com

ARC Supply Chain Solutions Inc. Greta Elliott 39.7 23.8 67 32 24 75 Third-party logistics service, freight bill audit and payment, freight president optimization 20. 13221 Inkster Road, Taylor 48180 ■ (877) 272-3523; www.arc-scs.com Biggest percentage increase.

Mars Advertising Inc. Marilyn Barnett 38.7 37.3 4 NA NA 55 Advertising agency 21. 25200 Telegraph Road, Fifth Floor, Southfield president and chairman 48033-7496 (248) 936-2200; www.marsusa.com Dowding Industries Inc. G. Christine Dowding 30.3 30.9 -2 150 150 65 Press work, die making, laser boring. heavy machining 22. 449 Marilin St., Eaton Rapids 48827 Metts (517) 663-5455; www.dowdingindustries.com CEO

The WW Group Inc. (Weight Watchers) Florine Mark 28.0 28.0 0 NA NA 60 Weight-loss products and services 23. 28555 Orchard Lake Road, Farmington Hills 48334 president and chairman (248) 553-8555; www.8883florine.com www.florineonline.com Seko Worldwide Detroit Tanya Bartelo 24.9 21.4 16 20 22 51 Global logistics provider, including air, ocean and domestic 24. 6800 S. Cypress, Romulus 48174 owner transportation, as well as customs brokerage services and export (734) 641-2100; www.sekologistics.com/detroit crating

KBC Tools Inc. Paula Bass 24.3 24.1 1 NA NA 100 Machinery and tool sales 25. 6300 18 Mile Road, Sterling Heights 48314 president (586) 979-0500; www.kbctools.com

This list of woman-owned businesses is an approximate compilation of the largest such businesses headquartered in Michigan. Percentage of the company that is woman owned may not be solely held by the leading shareholder. 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. Actual revenue figures may vary. NA = not available. LIST RESEARCHED BY BRIANNA REILLY ■ If you believe your company should be on this list, contact Data Editor Brianna Reilly at [email protected] or (313) 446-0418. 20130513-NEWS--0015-NAT-CCI-CD_-- 5/10/2013 12:03 PM Page 1

May 13, 2013 CRAIN’S DETROIT BUSINESS Page 15

People

Ⅲ James Peabody, M.D., a senior staff urologist at the Vattikuti Urology Institute at Henry Ford Hospital, Detroit, has been selected as the recipient of the 2013 Residents Committee Teaching Award by Peabody the American Reforms need reforming? Urological Association. The annual award recognizes an outstanding urology educator or program director who has dedicated a portion of his or her career to Benefits of changes HIGHLIGHTS OF MEDICAL MALPRACTICE TORT REFORM teaching residents and advancing urology graduate medical education. in malpractice law 1993 reforms Ⅲ Lower cap on noneconomic damages for pain and suffering, loss of Ⅲ Joseph Finch, D.O., has joined the companionship and housekeeping services. Started at $280,000 but with medical staff at Botsford Hospital in still being disputed inflation has risen to about $433,000. Farmington Hills. Finch is fellowship Ⅲ Higher cap on some other noneconomic damages. Started at $500,000 trained in total joint reconstruction but now up to $744,000. Covers total and permanent loss of function of surgery. In addition to being a practicing BY JAY GREENE one or more limbs, injury to brain, spinal cord; permanent cognitive injury; orthopedic surgeon, Finch serves on the and damage to a reproductive organ such that it negates the ability to CRAIN’S DETROIT BUSINESS clinical faculty of Michigan State procreate. University College of Osteopathic wo decades after Michigan passed Ⅲ Qualifications for an expert witness includes experience in the medical Medicine in the department of area for which the witness is testifying. comprehensive medical malprac- osteopathic surgical specialties. Ⅲ Requires plaintiff to submit affidavits of merit on the case signed by T tice reform, there is ample evidence specialists of the same qualifications as the defendants. The expert must Ⅲ Michael Feld, that both premium rates and lawsuits filed sign a statement that grounds exist for filing the lawsuit. M.D., a senior staff are down. Ⅲ Requires binding arbitration for cases with damages of $75,000 or less. physician in the But whether overall costs have been con- The arbitration panel is made up of three attorneys and two medical emergency tained or public safety adequately protected re- professionals. department at Henry mains a point of dispute between the medical Ⅲ Must file notice of intent to file a claim that explains in 20-40 pages Ford West Bloomfield profession and attorneys representing the what the doctor or hospital did wrong and how the patient was injured. The notice must be filed 182 days before filing the lawsuit. The defendant Hospital, was medically injured. appointed medical has 154 days to respond and explain its defense, the standard of care Dan Schulte of Detroit- used and the compliance to that standard. director of the based Kerr Russell Weber, who Region 2 North Ⅲ Defined more closely the statute of limitations, giving parties two years also is general counsel for the Healthcare Coalition, from the date of the alleged negligent act to sue. Exceptions include Michigan State Medical Society, Feld where he leads minors or incapacitated people. medical surge planning and response said the ultimate efforts for emergency preparedness. goal of the 1993 re- 2012 reforms forms was to ensure INSIDE Ⅲ Senate Bill 1115 defined what should be considered that “only meritori- Truth serum: UM Ⅲ Denise Brooks- ous medical mal- noneconomic damages. For example, Williams, president Health System housekeeping expenses, loss of practice cases end finds honesty best and CEO of Henry companionship and consortium are up in front of ju- policy, Page 18 Ford Wyandotte subject to the cap. The bill also Schulte ries.” Hospital, was changed the formula for appointed by Gov. The medical society thinks that calculating long-term economic Rick Snyder to the goal largely has been achieved, he said. damages. The calculation reduces the total payments over 20 years to lifetime Certificate of Need “Meritorious” doesn’t mean no cases are filed coverage by reducing future economic , where or go to trial, Schulte said. “There definitely are Commission damages to current cash value by using 5 she will represent cases of malpractice,” he said. “Reasonable minds can differ about whether or not there percent compounded interest. Economic hospitals and damages cover loss of income and medical Brooks-Williams serve as a was an active malpractice committed” and expenses. Democrat in a three-year term that whether damages should be awarded. expires April 9, 2016. Laura Appel, vice president of federal policy and advocacy with the Michigan Health & Hospi- The Michigan Health & Hospital tal Association, said the 1993 reforms were “ex- Association announced the 2013 tremely successful in reducing medical mal- winners of its MHA Keystone Center practice rates” and the number of for Patient Safety & Quality Leadership Ⅲ S.B. 1118 clarified the maximum amount of time that can elapse after a patient dies to about two years and still allow a Award, which recognizes individuals See Tort, Page 16 personal representative to sue on behalf of the estate. One exception would who demonstrate leadership in patient be if the personal representative of the deceased person also died or was safety and quality improvement: legally incapacitated. In that case, the successor representative could Ⅲ Annette Phillips, president and CEO bring action one year after death or incapacitation of the former at Mercy Memorial Hospital System, representative. The bill limited changes of representatives Monroe, for executive leadership, for because it had become a way to drag out the case past working with board members, employees, the statute of limitations. physicians and administrators to improve Source: Michigan Legislature relationships and create a culture of safety. Ⅲ Lakshmi Halasyamani, M.D., chief medical officer, St. Joseph Mercy Ann Arbor and St. Joseph Mercy Livingston, Howell, for clinician leadership. In October 2012, Halasyamani led St. Joseph Mercy Ann Arbor’s response to one of the largest-ever U.S. outbreaks of fungal infection. 20130513-NEWS--0016,0017-NAT-CCI-CD_-- 5/10/2013 11:20 AM Page 1

Page 16 CRAIN’S DETROIT BUSINESS May 13, 2013 Health Care Tort: 20 years later, did Michigan’s malpractice reforms work? ■ From Page 15 lawsuits filed against hospitals and physicians. DETROIT M.D. MEDICAL MALPRACTICE RATES, 1991-2012 From 2000 to 2007, the number of medical malpractice claims 1991 1995 2001 2004 2006 2008 2010 2012 dropped 77 percent to 263 in 2007 Internists $23,117 $25,820 $40,233 $46,898 $48,041 $36,988 $36,988 $35,139 from 1,142 in 2000, said the Michi- gan Department of Insurance and Fi- Ob/gyn $133,946 $141,149 $123,890 $143,336 $148,058 $113,705 $113,705 $108,020 nancial Services. General surgeons $71,295 $78,133 $94,195 $143,336 $148,058 $113,705 $113,705 $108,020 But Norman Tucker, a plaintiff lawyer at Southfield-based Som- Note: M.D. average premiums. Overall rates have dropped nationally 20 percent since 2006. Rates rose nationally about 50 percent from 1994 to 2001. mers Schwartz PC, said the 1993 Source: ProNational Insurance Co./ProAssurance Casualty Co., $1 million/$3 million limits, Medical Liability Monitor, Oak Park, Ill. changes went too far. “There is mated overhead of $45,000. The at- ing costs to take care of a rising pected payouts on economic dam- “You are punishing people who an element of torney could earn $45,000 with the number of injured patients, the ages. Those include loss of income can bring legitimate damages” but anger with in- patient recovering only $180,000. CBO warned. as well as medical and equipment don’t have large economic damage jured patients,” “These types of cases are not be- “The system has twin objec- expenses that are recoverable in claims, McKeen said. He thinks said Tucker, ing taken anymore,” Tucker said. tives: deterring negligent behav- full. the cap on noneconomic damages who specializes “If I lose, that comes out of my ior on the part of providers and Plaintiff attorneys also have a should be repealed. in birth-related pocket.” compensating claimants for their clearer understanding on what “Many patients and their fami- injuries and Meanwhile, he said: “The people losses,” said the CBO. “Imposing constitutes noneconomic damages lies have been disenfranchised” by anesthesia prob- who make errors have no incen- limits on (the right to sue for dam- — which are capped, imposing a the cap, McKeen said. “It is hard Tucker lems. tives to make improvements. In- ages) might be expected to have a measuring stick to final payouts for them to find a good attorney un- “I tell some- centable lawsuits cause all of us to negative impact on health out- on verdicts and settlements. less they have massive economic one I think you have a case, but the do better, and it makes medical comes.” “The cap gives plaintiff lawyers damages.” cost does not justify the payouts,” practitioners more responsible.” But Schulte said the 1993 re- something to think about when Moreover, Tucker said, the 1993 Tucker said. “They feel it is a stu- forms effectively created check- considering the investment they reforms haven’t solved the main pid system because they were in- points to weed out questionable must make in a case,” Schulte problem — patients injured at hos- jured and have lost wages and Do limits have their limits? cases. Reforms included notice of said. pitals or by physicians or other need to pay for their medical In a 2009 report, the Congression- intent, expert-witness require- But Brian McKeen, a plaintiff at- providers. care.” al Budget Office said further weak- ment and affidavit of merit, he torney at McKeen & Associates PC “The end goal of reform is to Because of limitations on damage ening the current medical mal- said. (See chart on this page.) in Detroit, said capping noneco- eliminate litigation recoveries,” awards, a case with an estimated practice tort reform system in The cap on noneconomic dam- nomic damages does not discour- Tucker said. “I am concerned about $350,000 in recovery value could states could eliminate the deter- ages also is an important limiter of age people from bringing frivolous that because only one of eight peo- cost $80,000 to prepare for trial and rent potential that a court system cases, Schulte said. suits. Other reforms like affidavit ple sue from medical malpractice. take three years to complete. Win- creates in medicine. For example, he said, plaintiff at- of merit — a statement from a med- Tort reform in Michigan has virtu- ning a case could net $270,000 minus Any projected savings from tort torneys, when evaluating the value ical expert that the case has merit $90,000 for the attorney fee with esti- reform could be erased by increas- of cases, now can calculate the ex- — have done that. See Next Page 20130513-NEWS--0016,0017-NAT-CCI-CD_-- 5/10/2013 11:20 AM Page 2

May 13, 2013 CRAIN’S DETROIT BUSINESS Page 17 Health Care

From Previous Page ally eliminated people’s right to re- It is hard for covery.” “ In a landmark 1999 report, “To (patients and their Err Is Human,” the Institute of Med- icine concluded that one in eight families) patients are injured in hospitals, with the cost of those medical er- to find a rors estimated at between $17 billion and $29 billion. good The institute’s study concluded that the majority of medical er- attorney rors are not caused by provider recklessness but are mostly unless they caused by “faulty systems, processes and conditions that have lead people to make mistakes or fail to prevent them.” massive economic damages. A possible solution? ” Brian McKeen, A risk management program be- McKeen & Associates PC Time to sell your business but not sure how? gun in 2001 at the University of Michi- gan Health System in Ann Arbor state medical society and Michigan may be the answer to improving Chamber of Commerce have advo- Trust the Michigan Chamber of Commerce to help. medical processes to avoid med- cated for greater protections from ical errors, bringing financial lawsuits and additional clarifica- compensation to a larger number tion of existing tort laws. • No risk consultation • No upfront fees of injured patients and eliminat- In last year’s state legislative • Completely confi dential • Highest price possible ing costly legal expenses that can session, the medical society won account for nearly half of all pay- approval of two of four bills that outs. further clarified what should be The university’s early disclo- considered noneconomic damages Get Started Today sure and offer program encour- (Senate Bill 1115) and how long af- Call 800-748-0266 (ask for Barry Robinson) ages providers to discuss medical ter a patient died that his or her mishaps and errors with patients personal representative could sue Online www.michamber.com/products-services-promo and their families before a lawsuit on behalf of the estate (S.B. 1118). Successfully is filed, said Richard Boothman, “The definitions were changed the UM’s chief risk officer. to respond to court cases,” Schulte Bringing Together Boothman said the program en- said. “We believe the changes were Business Owners Visit www.michamber.com/products-services to learn more about ables patients to be compensated warranted and will help.” the many products and services offered by the Michigan Chamber for bad outcomes or malpractice But McKeen said S.B. 1115 also and Business Buyers to assist you in managing and growing your business. but also creates incentives within reduced the total amount of com- the health system to work with pensation for medical and other doctors, nurses and administra- care for seriously and permanent- tors to improve patient safety. ly injured patients over their life- “The status quo (deny-and-de- time. fend legal approach) does nothing “I represent a lot of brain-dam- to improve patient safety or quali- aged children. The change that re- ty” and address health care costs, duces future economic damages to Boothman said. present cash value utilizes com- During the debate leading up to pound interest of 5 percent,” the approval in March 2010 of the McKeen said. “This shortchanges , global competition, Patient Protection and Affordable victims and will result in severely Today, more than ever Care Act, critics charged that med- undercompensating the most seri- new technologies, and corporate ical malpractice tort reform ously injured and youngest vic- should be included in the act and tims.” streamlining require innovative thinking could go a long way toward taming The only bill that the hospital rising health care costs. association did not support was and leaderships abilities. Continuing In 2011, however, the CBO said S.B. 1116. It would have given enacting a complete menu of tort physicians and facilities nearly your education can be key to your reform nationally, including a blanket immunity for medical con- $250,000 cap on noneconomic dam- duct for which they used profes- success. From biomedical and robotics ages, could reduce health care costs sional judgment, experts said. only 0.4 percent. The CBO was com- “Henry Ford Health System and engineering to health IT management menting on a 2011 federal bill that Beaumont (Health would have created national stan- System) both and chemical biology, Lawrence dards for tort reform. went on record To study the issue, President opposing 1116,” Technological University can prepare Barack Obama pledged $25 million said Appel of the to look at alternatives to the cur- hospital associa- you for the jobs of the future. rent medical malpractice litigation. “They ar- tion system. gued that such a “Our program (at UM) was the change in stan- 2013 2013 2013 one Obama had in mind,” Booth- dards of care BEST COLLEGES GREEN NATION’S BEST in the Midwest COLLEGE UNDERGRAD ONLINE man said. Most of the 13 planning Appel would under- STUDENT ENGAGEMENT Princeton Princeton U.S.1 News & and demonstration projects fund- mine their own Review® Review® World Report® ed by the Department of Health and efforts at patient safety improve- Human Services are studying as- ment.” pects of UM’s early disclosure pro- Appel said the association is sat- gram, he said. isfied with the current tort system. Said Tucker of Sommers But Tucker and McKeen see ma- Possible is everything. Schwartz: “The University of jor problems that make it harder Michigan is doing the right thing in for injured plaintiffs to collect rea- Explore over 100 undergraduate, master’s, and doctoral programs in Colleges of their approach to resolving these sonable damages to pay for med- Architecture and Design, Arts and Sciences, Engineering, and Management. problems. More hospitals should ical and living expenses. take that approach” because it “Lawyers are not going to solve helps injured patients and reduces physicians’ problems,” Tucker medical malpractice risks. said. “Physicians have to solve those problems themselves.” Jay Greene: (313) 446-0325, Lawrence Technological University | 21000 West Ten Mile Road, Southfield, MI 48075-1058 2012 tort reform efforts [email protected]. Twitter: 800.225.5588 | [email protected] | www.ltu.edu Over the past several years, the @jaybgreene 20130513-NEWS--0018-NAT-CCI-CD_-- 5/10/2013 10:34 AM Page 1

Page 18 CRAIN’S DETROIT BUSINESS May 13, 2013 Health Care UM Health System finds honesty is the best policy HEALTH CARE HEROES SOUGHT Crain’s is seeking nominations for Health Care Heroes, a special BY JAY GREENE fends cases if no error was made not have known until two years into report on health care professionals CRAIN’S DETROIT BUSINESS and uses the system to improve pa- discovery. Each side gets to evaluate that will run in the Aug. 12 issue. tient safety and quality. We have the what the experts say and do their Richard Boothman was a suc- The program will honor top-notch While critics said the pro- “ due diligence before a lawsuit is medical innovators and patient cessful medical malpractice de- gram could quickly backfire, blunt filed.” advocates. Our winners will be fense attorney when he decided to triggering an increase in mal- A number of hospitals in Michi- chosen in five categories: switch gears in 2001 and take on practice payouts, Boothman instrument gan have adopted similar ap- Ⅲ Corporate achievement in health risk management at what is now said the outcomes have proaches, including Henry Ford care: Honors a company that has the University of Michigan Health Sys- called proved to be winners for pa- Health System, St. Joseph Mercy created an innovative health tem in Ann Arbor. Health System, Beaumont Health Sys- benefits plan or has solved an Boothman saw the shortsighted- tients and providers. litigation. The administration problem. For example, new claims tem and Oakwood Healthcare. ness of the traditional medical Moreover, Boothman said, sev- Ⅲ Advancements in health care: have been cut to less than five malpractice legal approach of deny problem is en of 10 federally funded demon- Honors a company or individual from seven for every 100,000 and defend. He thought a better stration projects are looking into responsible for a discovery or for patients per month. Open developing a new procedure, way could be found to reduce nobody talks aspects of UM’s disclosure model. claims have declined to 63 from device or service that can save costs, improve quality and patient For example, preliminary data at 262. Lawsuits have declined to 0.75 with one another. lives or improve quality of life. safety and also address instances the University of Illinois Medical Cen- ” Ⅲ Physician: Honors one whose of negligence or bad outcomes. per 100,000 patients per month ter in Chicago show reductions in Richard Boothman, UM Health System performance is exemplary. “We have the blunt instrument from 2.13. Claim resolution time lawsuits and legal costs and a 20 Ⅲ Allied health: Honors an called litigation,” Boothman said. also has declined to 0.95 years from percent reduction in charges for “The problem is nobody talks with 1.36, Boothman said. individual from nursing or allied ment in the culture of care and pa- defensive medicine. health fields who is deemed one another when errors occur. Costs to defend lawsuits have tient retention.” “We found by being honest with exemplary by patients and peers. We thought we could change that dropped to less than $1 million per Norman Tucker, a plaintiff attor- patients, we can resolve cases Ⅲ Trustee: Honors leadership and trajectory.” year in 2009 from $2.2 million in ney with Southfield-based Sommers more cheaply and compensate par- distinguished service on a health In 2001, UM launched its Early 2001, and the amount needed for re- Schwartz PC, said UM’s program is ties fairly,” Boothman said. “It has care board. Disclosure and Offer program, serves has fallen to less than $16 mil- good for injured plaintiffs because given us a platform to do some re- Make nominations, due by May 15, which encourages providers to re- lion in 2009 from $72 million in 2001. costs have been lowered and more ally cool things in peer review” to at crainsdetroit.com/nominate. port potential medical errors, of- “Patient compensation general- patients receive compensation. improve patient safety. Statewide nominations accepted. fers a full-disclosure policy to dis- ly now is a direct indicator of sub- “Before, you sued each other be- Jay Greene: (313) 446-0325, Questions? Contact Bill Shea at cuss problems with patients and standard care,” Boothman said. fore talking,” he said. “The plaintiff [email protected]. Twitter: [email protected] or (313) 446- offer settlements if warranted, de- “This has resulted in an improve- learns information that they might @jaybgreene 1626.

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May 13, 2013 CRAIN’S DETROIT BUSINESS Page 19 CALENDAR TUESDAY American Arab Chamber of Com- CRAIN’S TO HONOR CFOS merce. Event honors nominees in the MAY 14 finance, legal, medical, technology, Join Crain’s Detroit Business for its creative arts and education fields. Do More, See More, Be More: Three seventh CFO of the Year Awards, Bint Jebail Cultural Center, Dear- Steps to Customer Service Excellence. 5-9 p.m. June 13 at The born. $50 members, $75 nonmembers. 8-9:30 a.m. Women’s Business Forum. Roostertail, Detroit. Call chamber for sponsor pricing. With Keith Fields, entertainer, moti- Contact: Sandy Wilton, (313) 945-1700; vational speaker, trainer. ITT Techni- The finalists will be featured in the May 27 issue of Crain’s and on the email: [email protected]; cal Institute, Troy. $11 Troy Chamber website: www.americanarab.com. members, $21 nonmembers. Contact: website, www.crainsdetroit.com. (248) 641-8151; email: theteam@troy Tickets are $60 for subscribers, chamber.com; website: www.troy $55 for guests in groups of at THURSDAY chamber.com. least 10, $85 for a special offer that includes an event ticket and a MAY 16 Healthcare Reform & Transformation. one-year subscription to Crain’s, Pancakes & Politics: A Speakers’ Fo- 8-10 a.m. Lawrence Technological Uni- and $99 for nonsubscribers. rum. 7:30-9 a.m. Michigan Chronicle. versity. Learn about the progress in For more information, call Kacey With Detroit Mayor Dave Bing, Wayne Michigan and nationally on imple- Anderson at (313) 446-0300, County Executive Robert Ficano, Oak- mentation of the Patient Protection email her at [email protected], land County Executive L. Brooks Pat- and Affordable Care Act of 2010. With or visit www.crainsdetroit.com. terson, Macomb County Executive Marianne Udow-Phillips, executive di- Mark Hackel. Townsend Hotel, Birm- rector, Center for Healthcare Re- Join the conversation on Twitter with #crainscfo. ingham. $75. Contact: www.michi search and Transformation, University ganchronicle.com. of Michigan. Lawrence Tech, South- field. Free for LTU students, alumni, with purchasers, learn basics of pur- faculty and staff; $30 everyone else. chasing and procurement protocol, and Third Thursday Networking. 4:30-6:30 Contact: www.ltu.edu. cut through red tape and get your busi- p.m. Southfield Area Chamber of ness on public sector RFP lists. Greek- Commerce, city of Southfield, Engi- town Casino Hotel. $30 DRC members; Michigan Women in Finance 2013 Con- neering Society of Detroit. Detroit $70 nonmembers. Contact: Marianne Marriott-Southfield. Free. Member- what’s ference. 6:30-10 p.m. May 14, 8 a.m.-2 Alabastro, (313) 596-0479; email: mal

ship not required. Contact: Tanya MI Lansing, - Structure Parking Fund Accident p.m. May 15. Michigan Women in Fi- [email protected]; website: nance. With Lynne Lancaster, co- Markos-Vanno, (248) 557-6661; email: www.detroitchamber.com. [email protected]; web- your fancy? founder of BridgeWorks, which advises on conducting business more success- site: www.southfieldchamber.com. fully by bridging generation gaps; Jef- Protecting Company Assets in the So- frey Guilfoyle, president, Citizens Re- cial Media Age. 8:30-10:30 a.m. Butzel search Council of Michigan; Allison Long PC. With Bernard Fuhs, attor- FRIDAY You dream it. Maki, vice president of finance and ad- ney, Butzel Long PC. An overview of MAY 17 ministration, Detroit Lions; and Brenda noncompete agreements and nuances, We make it happen in concrete. Szalka, manager, employee assistance such as employee compliance, and an Leadership in the Global Environment. Precast is the durable solution for parking decks. Precast double tees program, Henry Ford Health System. in-depth discussion on the effects of 8 a.m.-noon. World Trade Center De- Comerica Park, Detroit Athletic Club, social media. Free. Walsh College, troit/Windsor Association. Seminar can span long distances, allowing for minimum column interruptions Detroit. Reception, Detroit Tigers game Novi. Contact: Jan Hubbard, (248) 823- for middle managers and executives and conference (May 14-15) $295; recep- 1392; email: jhubbard@walshcol leading to maximized parking spaces. who want to succeed as leaders in a tion and Tigers game (May 14) $195; lege.edu; website: www.thewalshinsti conference (May 15) $295. Contact: tute.com/lcbriefings. multicultural environment and want www.michiganwomeninfinance.org. to help their international teams be- www.kerkstra.com come a results-oriented, unified group. Find Your Next Superstar. 11:30 a.m.- WTCDW offices, Detroit. $75; register Marketing Roundtable – Go Mobile or 1 p.m. Macomb Community College. by May 14. Contact: (313) 962-2345, ext. Go Home. 5-7 p.m. Ann Arbor Spark. Part of a six-session series on hiring 222; email: [email protected]; web- With Scott Hauman, partner and chief and keeping the ideal employee. Au- site: www.wtcdw.com. strategy officer, NewFoundry, a brand- tomation Alley headquarters, Troy. ing counseling firm, Ann Arbor; Rich Members: preregistration $20, at the Chang, partner and CEO, New- door $30; nonmembers: preregistra- Foundry; and Daniel Levy and Shawn tion $40, at the door $50. Contact: Au- UPCOMING EVENTS Planko, engineers, Mobiata, mobile tomation Alley, (800) 427-5100; email: travel applications. Spark Central, Ann [email protected]; website: Managing Risk and People in a Global Arbor. Free. Contact: (734) 372-4071; www.automationalley.com. Economy. 11:30 a.m.-1:30 p.m. May 20. email: [email protected]; web- Detroit Economic Club. With Gregory site: www.annarborusa.org. The event Case, president, CEO and director, will be streamed live: http://www.ann SBIR at a Glance. 1-2:30 p.m. Learn Aon plc. The Westin Southfield De- arborusa.org/live-events/index.html. about funding options available via troit, Southfield. $45 members. $55 Violet, Jaime, and Toufiq of Level One. small-business innovation research guests of members. $75 nonmembers. grants to launch a technology with Contact: (313) 963-8547; email: commercial potential. Free. Contact: WEDNESDAY [email protected]; website: Joan Carleton, (586) 884-9324; email: The Entrepreneurial Bank. www.econclub.org. MAY 15 [email protected]; website: http:// Small Business: Unlocked – Meet the fastconnect51513.eventbrite.com/#. Purchasers. 8 a.m.-noon. Flagstar Bank, Estate Planning and Business Owners. Detroit Regional Chamber. Small busi- 8th Annual American Arab Profession- 8-10 a.m. May 21. Automation Alley. No interpretation needed. nesses have the opportunity to network al Network Banquet. 5:30-8:30 p.m. With attorney Robin Ferriby, vice president of philanthropic services, Community Foundation for Southeast Michigan. Discussion will focus on We speak your language: Entrepreneurial. the intricacies of estate planning. Au- tomation Alley headquarters, Troy. Call us. 60$//2)),&(Ř+20(2)),&( $10 preregistered members, $20 at the Outstanding Selection For Small Professional Office or Home Office door; $15 preregistered nonmembers, $25 at the door. Preregistration closes  May 17. Contact: (800) 427-5100; Contact Greg Wernette Free Design Assistance email: [email protected];  Customization - website: www.automationalley.com. Entrepreneur and Chief Lending Officer Sizes & Finishes 248-737-0300  Professional Installation Inforum 51st Annual Meeting. 11:30  Contemporary or Traditional a.m.-1:30 p.m. May 21. Inforum. With Mark Tercek, FEATURING president and CEO, The Nature Conservancy, and Tom Walsh, business columnist, Detroit Free Press. The incoming 2013-14 Inforum board of directors will be announced and the directors of the Inforum Tercek Center for Leader- 32991 Hamilton Court Farmington Hills, MI 48334 levelonebank.com ship will be recognized. Detroit Mar- Commercial Banking Retail Banking Mortgage Services riott Renaissance Center, Detroit. $40 Inforum members, $55 nonmembers,

6287+),(/'ō752< $25 students, $700 table of 10 reserved 129,ō/$.(6,'( *5$1'5$3,'6 seating. Contact: www.inforummichi www.gormans.com gan.org. SPBT0404 20130513-NEWS--0020-NAT-CCI-CD_-- 5/10/2013 10:32 AM Page 1

Page 20 CRAIN’S DETROIT BUSINESS May 13, 2013 Job Front PEOPLE

CONSTRUCTION firm. Also, Kristin Goldbaum and David Adler to partner from associate. Dan Kovoch to IN THE SPOTLIGHT Wendy Richards to director of legal vice president, Versa Real Estate, Southfield, has central region, and policy programs, Michigan Com- Barton Malow named Matthew Evert its first CFO. munity Resources, Detroit, from se- Evert had been Co., Southfield, nior attorney, Miller, Canfield, Pad- from vice presi- controller and dock and Stone PLC, Detroit. dent and general director of manager, Ideal accounting for MANUFACTURING Contracting LLC, Wynnstone Communities, Lance Keziah to president, Crypton Detroit. Inc., West Bloomfield Township, from Birmingham. executive vice president. CONSULTING Evert, 27, Kovoch Jennifer Berry to earned a MARKETING master’s director of human resources, MiPro Jack Serda to se- Consulting LLC, Milford, from systems degree and a bachelor’s in nior director in support specialist. Evert the finance group, accounting BBK Ltd., South- HEALTH CARE from Michigan State University. field, from direc- Monique Butler, tor, corporate ad- M.D., to vice pres- LAW visory and ident of quality restructuring ser- and safety, DMC Ethan Holtz to vices, Grand Sinai-Grace Hospi- partner, Jaffe Raitt Thornton LLP, Heuer & Weiss PC, tal, Detroit, from Southfield. Southfield, from regional medical Lorne Zalesin to associate. director, Fidelis Serda vice president of SeniorCare, De- Christopher Mo- business develop- troit. ceri to deputy ment, Dialogue Marketing Inc., Troy, practice group co- from CEO, MyInsuranceExpert.com, Kumar Rajamani, ordinator, corpo- Troy. M.D., to chief of rate practice Butler neurology, DMC group, Jaffe Raitt NONPROFITS Detroit Receiving Hospital, Detroit. He Heuer & Weiss remains neurologist and neurosur- Holtz PC, Southfield. He geon. is a partner at the

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May 13, 2013 CRAIN’S DETROIT BUSINESS Page 21 BUSINESS DIARY MARKET PLACE ACQUISITIONS (248) 458-1680. Website: www.amer icanlaser.com ACE Group, Zurich, Switzerland, ac- ADVERTISING/MARKETING BUSINESS SERVICES quired the Mexican insurance busi- Art Van Furniture, Warren, has ness of Ally Financial Inc., Detroit: opened its first Art Van PureSleep ABA Seguros, Monterrey, Mexico. franchise store, 6715 Eastman Ave., Ally received about $865 million, Midland. Website: www.artvanpure which comprised a $690 million cash sleep.com. payment at closing and $175 million dividend paid in the fourth quarter of 2012. Website: www.ally.com. NEW PRODUCTS WorldAutoSteel, the automotive group of the World Steel Asso- CONTRACTS ciation, along with the Steel Market Lawrence Technological University, Development Institute, a business BUSINESS OPPORTUNITIES Southfield, signed an agreement with unit of the American Iron and Steel North China University of Technology, Institute, Southfield, unveiled a new INVENTORS NEEDED Beijing, to allow Chinese students to tool that enables vehicle designers to quickly and accurately evaluate ma- We are an ISO Certified medical device attend LTU and earn master’s degrees contract manufacturer seeking inventors in architecture or interior design. terial selection tradeoffs, including with medical products or device ideas Website: www.ltu.edu. mass, cost and greenhouse gas emis- that need our services. Our company sion for automotive applications. Franco Public Relations Group, De- can help you bring your device to The Design Advisory software was troit, added four businesses to its production and ultimately to the market! developed by Don Malen of the Uni- Please respond to client mix: Allied Printing Co., Detroit; versity of Michigan College of Engi- [email protected] Inergy Automotive Systems (USA) LLC, neering, Ann Arbor, to assist auto- Reference Box #10059 in the subject line Troy; Michigan International Speed- motive decision makers in way, Brooklyn; and Powers Distribut- evaluating and selecting the material ing Inc., Orion Township. Website: that best fits the requirement of a www.franco.com. ENTREPRENEUR LOOKING TO BUY given application. Website: www.au- ATTENTION MARKETING Ford Piquette Avenue Plant and Muse- tosteel.org. COMPANY OWNERS! um, Detroit, selected AutoCom Associ- Are you trying to figure out your exit Humantech Inc., Ann Arbor, an er- ates, Bloomfield Hills, as its public re- strategy? 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May 13, 2013 CRAIN’S DETROIT BUSINESS Page 23 Supplier-automaker relationship gets a grade of ‘poor’ in survey

BY DUSTIN WALSH of reason to make a change.” emailed statement to Crain’s. taining the supplier-automaker re- provement from automakers. CRAIN’S DETROIT BUSINESS John Henke, president of PPI “We are continuously looking lationship, Morgan said. “It’s disappointing,” he said. and professor of marketing at Oak- for opportunities to strengthen our In the survey, all six automak- “Those we have an interest in Normalcy in the North Ameri- land University, said automakers are relationships even further.” ers scored slightly higher marks clearly don’t have a sustainable can automotive market has turned returning to “the same old ways” Guy Morgan, managing director with involving suppliers in the plan in place, and the metrics in to complacency in the automaker- of poor commu- and global operations advisory product development process, place, to improve the relationship supplier relationship, according to nication with group leader for Southfield-based with Ford receiving the highest substantially.” a new study by Birmingham-based their supply BBK Ltd., said volume ramp-up in marks. Dustin Walsh: (313) 446-6042, Planning Perspectives Inc. base. North America could be straining But Henke said the survey is a [email protected]. Twitter: The 13th annual Working Rela- Suppliers not- the relationship as suppliers are mixed bag and shows no real im- @dustinpwalsh tions Index survey, released today ed timely com- running out of capacity. by Planning Perspectives, high- munication re- R.L. Polk and Co. forecasts sales of lights the intricate nature of North garding 15.2 million passenger cars in 2013, American supplier interaction engineering reaching 16 million by 2015. Plus, with North America’s largest au- changes as an is- automakers are launching 61 new tomakers — General Motors Co., Henke sue causing or redesigned models in the U.S. Ford Motor Co., Chrysler Group LLC, their score in the category to drop this year and 74 in 2014. Toyota Motor Corp., Nissan Motor Co. in 2012. “Supplier capacity is clearly the and Honda Motor Co. Ltd. Gillette said the return of pric- issue right now,” Morgan said. An average of 43 percent of the ing pressure since 2010, post-reces- “But, despite challenges, I’ve seen anonymous 441 tier-one suppliers sion, is taking its toll on suppliers, better transparency and willing- surveyed say they have a “poor-to- who in the past few years have ness to cooperate than in the past.” very-poor” working relationship been celebrating larger margins. Morgan said the rush in vol- with the six automakers. Chrysler Henke said suppliers in the sur- umes is exposing faulty processes scored the worst, with 50 percent in- vey said Chrysler has begun asking by suppliers, which can create dicating a poor relationship, while for profit margin information from friction between them and au- Toyota did the best, with 34 percent them before offering contracts. tomakers. claiming a poor relationship. Suppliers scored Chrysler high- “There’s a lack of sophistication The six automakers’ scores from er this year than last year, but it with some of the smaller suppliers, suppliers — based on several indi- remained at the bottom of the list. and if they don’t have the right cators in the categories of trust, “While we are pleased to see that production systems, they struggle communication, our continued work to improve with any shift in volume,” Morgan buyer help, buy- our operations and processes is be- said. “There are a lot of unrealistic er hindrance ing felt by our suppliers, we know milestones, and at gates … there’s and profit op- we have a lot more work to do in a lack of discipline and focus portunity — re- the area of supplier relations,” around the processes, and it can main virtually Scott Kunselman, senior vice pres- harm relationships.” unchanged from ident of purchasing and supplier Early involvement in product last year. quality at Chrysler, said in an development is crucial in main- James Gillette, direc- Gillette tor of automotive analysis for Novi-based IHS Au- tomotive Group LLC, said the lack of downward pressure from the economy, a natural disaster or another potentially catastrophic event is actually fueling the rawness be- TO C 5th ANNUAL NG U tween suppliers and automakers. I R “There’s no strong incentive, W E economic or otherwise, for au- S tomakers to change the way they do business,” Gillette said. “We Swing to Cure Diabetes are in a situation that’s far better than we were in a few years ago; D the pressure is moderated a bit, GOLF OUTING I S and overall the industry is run- ABE T E ning fairly smoothly and not a lot Featuring Michigan Wolverines Head Football Coach Brady Hoke

BANKRUPTCIES The following businesses filed for Chapter 11 or Chapter 7 bankruptcy protection in U.S. Bankruptcy Court in Detroit May 3-9. Under Chapter 11, a company files for reorganization. Chapter 7 involves total liquidation. U-M Head Football Coach Brady Hoke Varnum attorney Rich Hewlett with Former U-M 2012 Swing to Cure Diabetes Golf Outing 2012 Swing to Cure Diabetes Golf Outing A&L Painting LLC, 15291 Dorothy Dri- Head Football Coach Gary Moeller ve, Macomb Township, voluntary Chapter 7. Assets: $0; liabilities: One family’s quest to find a cure… $78,630. “Swing to Cure” was founded five years ago by Varnum attorney and former Acho & Sons Inc., 3807 Fort St., Lin- coln Park, voluntary Chapter 11. As- U-M football player Rich Hewlett and his late wife, Chris, to raise money for sets and liabilities not available. research after their son Jeff was diagnosed with Type I diabetes. The golf Hawk Woods Circle Development Co. outing benefits the Juvenile Diabetes Research Foundation and the Michigan LLC, 1331 Avon Circle West, Comprehensive Diabetes Center, where exciting new research and a clinical Rochester Hills, voluntary Chapter 7. trial is underway. Assets and liabilities not available. J&B Painting Inc., 12840 Farmington Sponsored bySponsored by Road, Livonia, voluntary Chapter 11. Visit WWW.SWINGTOCURE.ORG to learn how you can participate CELEBRATING Assets and liabilities not available. 125YEARS Orchards LLC, 46970 N. Gratiot Ave., Chesterfield Township, voluntary Chapter 11. Assets and liabilities not available. — Chad Halcom 20130513-NEWS--0024-NAT-CCI-CD_-- 5/10/2013 5:40 PM Page 1

Page 24 CRAIN’S DETROIT BUSINESS May 13, 2013 X Games bid video scores on YouTube; ESPN exec notes passion

BY AMY HAIMERL As of Friday afternoon, the video have run to $1 million. ers. People who are already dedi- Givenchy and CRAIN’S DETROIT BUSINESS had generated more than 140,000 “We got really lucky with the cated to the city and are in their el- Corvette, Krease views on YouTube since its Tues- Detroit community and were able ement.” had a feeling A chopper shot dipping over the day release. ESPN won’t say to just call up a friend or find The Work produced the video for The Work was Ambassador Bridge. A rally car whether the video is swaying its de- someone who could help,” Ford Action Sports Detroit LLC, the group the right firm drifting around Campus Martius. cision, but Scott Guglielmino, se- said. “That kept the cost of the pro- working to sell ESPN on Detroit. for his “weird A motocross rider free-styling out nior vice president, X Games and duction way, way, way low. People The city is competing against Char- idea.” of the Packard Plant. programming, said: “We love their were just willing to give their time lotte, N.C.; Chicago; and Austin, “We had coffee Welcome to the work of The Work passion.” for the project and the X Games Texas, to host the games from 2014 at Astro (in Cork- Inc., the 5-year-old Detroit-based Much of the video’s costs — Detroit.” to 2016. Action Sports’ Detroit bid is town),” he said, company that produced the recent- which included aerial helicopter Almost 90 percent of the athletes backed by Dan Gilbert, founder and Krease “and they were ly released video for Detroit’s bid photography, closing streets in the 5½-minute film are from the chairman of Quicken Loans Inc. and all these young to host the ESPN X Games. around Campus Martius and shoot- Detroit area. Ford Racing donated Rock Ventures LLC. guys who had an incredible vision. We were on the same page right “We loved the project and want- ing on the Cobo Center roof — were the rally car, driver and support Kevin Krease, founder and di- from the beginning.” ed to support it as soon as we found covered by working with friends team. rector of Action Sports Detroit, That meeting happened in late out about it,” said Shane Ford, 25, and acquaintances of the video “We wanted to show the people met Ford and his partners through February, giving Ford and his one of five partners in The Work. makers. Without that support, Ford of the city,” Ford said. “Real peo- a friend. After reviewing their partners less than three months “It was like ‘game on’ for us.” estimated production costs would ple. Real talent. Real skateboard- portfolio, which includes work for to scout locations, score permits and permissions, find riders, exe- cute shoots and edit film. “It should have taken six months,” Ford said. In addition to Shane Ford, the partners include his brother Jesse DENTAL IS ALL WE DO— Ford, 29; Christopher Gruse, 30; Edward Knight, 27; and Jerome Wald III, 26. All are from metro De- troit, and they credit the city with the success of their company, AND WE DO IT BETTER! which they founded in 2008. “It’s been crazy how fast we’ve grown,” Ford said. “It’s mainly just from being in the city. We love this city.” Despite working with high-profile clients, none of the five friends has a background in film. “All of us are really being driven and motivated to produce the highest-quality stuff for our clients,” Ford said. “We taught ourselves this entire film world in the past two or three years.” So far, they are the only employees of the company, but they are adding a high school intern this summer. “We moved into a newer space last summer,” Ford said. “We’ve When switching to Delta Dental, you may been doing renovations. We fin- ished building an edit suite so we experience something you haven’t had with can have clients in to work with us. other carriers—silence. It’s been a crazy beginning of the year for us.” Now that the Detroit X Games video is released, the group in- With 9 out of 10 Michigan dentists participating, tends to take time to think strategi- Delta Dental offers your employees in-network cally about its future. In March, the team began pro- savings by improving the chance that their duction on a 30-minute video for preferred dentists participate in one or more Detroit public radio station WDET 101.9 FM and Ann Arbor-based of our programs. That, in turn, results in less record label Ghostly International. The video features Jad Abumrad, employee noise and helps us deliver greater plan host of the popular radio program savings to you. Silence really is golden! Radiolab, and Ghostly artist Matthew Dear making music around the city and talking about To learn more about how Delta Dental can do creativity. A two-minute teaser for the project, called “The Pleasure of dental better for you, please contact your agent Sound,” is posted on the station’s website. or visit deltadentalmi.com/dentaldonebetter. Mikel Ellcessor, general manager of WDET, hopes to release the 30-minute cut soon and possibly pitch it as a regular series. “I think of it as a postcard from Detroit,” he said. Exactly when the full-length ver- sion will drop is uncertain, however, because The Work has been so immersed in the X Games. “It’s been easy for me to be flexible with the release because I also really appreciate the X Games,” Ellcessor said. “Their audience is our audience, so it’s pretty cool to be sharing the ride with them.” Amy Haimerl: (313) 446-0402, [email protected]; Twitter: @haimerlad 20130513-NEWS--0025-NAT-CCI-CD_-- 5/10/2013 4:56 PM Page 1

May 13, 2013 CRAIN’S DETROIT BUSINESS Page 25 M1: First contracts for rail line are ready to leave the station ■ From Page 1 A third bid, estimated to be Veolia Transportation Inc., which con- said. worth $27 million, is for six street- M1 RAIL FACTS tractually operates transit systems The rail project also has hired cars. in several U.S. cities. The $137 million, 3.3-mile grade-level loop on Woodward Avenue will several executives in recent M1 intends to seek its streetcars Veolia is the North American stretch between Larned Street downtown to Chandler Street north of Grand months as it has transitioned from as part of a transit vehicle order alarm of Paris-based Veolia Transdev, Boulevard in New Center. a proposal to a system with federal ready underway with another pub- which manages transportation The aim is to fuel economic development along the line, reduce approval and funding to proceed. lic transportation agency, Childs downtown traffic, improve pedestrian movement during events, and systems in 28 countries and had said. Because transit vehicles are eventually connect to a yet-to-be-proposed line running to the city limits and revenue of $9.8 billion last year. The general contractor/con- expensive and take a long time to deeper into the Detroit suburbs. For example, Veolia has a 10- struction manager RFP was issued build to order — orders can be for The line will co-mingle with vehicle traffic using the lane second from the year, $560 million contract with April 17 and follows state and fed- hundreds of cars, and there is a curb, but run in the center lane at either end. the New Orleans Regional Transit Au- eral bid rules. limited number of streetcar mak- thority to manage the city’s three The goal is for public use by the fourth quarter of 2015. “As soon as they put a nickel in ers — attaching its vehicle needs streetcar lines, 32 bus routes and Estimated ridership is 3 million people annually. your pocket, you’re a federal pro- to another system’s order is a com- paratransit service — which see a mon practice in the transit indus- M1 has said it will endow a $10 million fund to operate and maintain the combined 12 million riders annu- ject,” Childs said. The Federal Tran- system for up to 10 years, until 2025, at which point the group plans to try because it can reduce turn- ally. sit Administration is providing $25 donate the project assets and operating responsibility to the regional million in funding, and final feder- around time and cost. transit authority. Under its New Orleans deal, all “Our strategy is a piggyback of the authority’s employees work al approval to proceed with con- M1 Rail is led by Penske Corp. founder Roger Penske and Quicken Loans strategy. We’re a small player in a Inc. founder Dan Gilbert, the project’s co-chairmen. for Veolia, and the company is re- struction came April 22. gigantic ocean,” Childs said. sponsible for all operations, safety, M1’s CEO since the project’s 2007 launch has been Matt Cullen, one of M1’s goal is to be operating by M1 has looked at rail orders maintenance, customer care, Gilbert’s chief lieutenants for his myriad business interests. COO Paul the fourth quarter of 2015. from Cincinnati; Salt Lake City; routes, schedules, capital planning Childs has been on staff for several years. Recent new-hire executives are Construction from Adams Street Seattle; Portland, Ore.; and Tuc- Chief Administrative Officer Heather Carmona, CFO Jeni Norman and and grant administration. son, Ariz. Sommer Woods as director of governmental and community affairs. M1, a privately run nonprofit south to Congress Street is sched- While Childs couldn’t discuss Major funding commitments of $3 million have come from Wayne with public and private financing, uled for this June through August specifics, M1 previously has said State University, Quicken Loans, the Ilitch companies, Penske Corp., is expected to employ a similar 2015, and north of Adams from it’s looked closely at Cincinnati’s Compuware Corp., Chevrolet, Chrysler Group, Blue Cross Blue Shield of arrangement. It eventually in- April 2014 to August 2015, accord- $20 million procurement of five Michigan, the Detroit Medical Center, Henry Ford Health System, Wayne tends to turn over ownership of ing to M1’s bid documents. streetcars for its $110 million plan County government, the Ford Foundation and the W.K. Kellogg the system to the new regional Work on the maintenance facili- to install a 3.8-mile downtown line. Foundation. The Hudson Webber Foundation has pledged $1 million. The transit authority. Cincinnati last year selected Kresge Foundation has pledged $35.1 million, part of which already has Childs said M1 also is negotiat- ty and system testing will happen Elmira, N.Y.-based CAF USA, a sub- been spent, and it gave an additional $3 million as a “backstop” grant. ing consulting contracts now with in fall of 2015. sidiary of Spain’s Construcciones y The Detroit Downtown Development Authority has earmarked $9 million San Francisco-based URS Corp. to M1’s plan is a mostly curbside- Auxiliar de Ferrocarriles S.A., as its for M1. Another $16 million is from federal New Market Tax Credits, which do design work and with Kansas running, fixed-rail streetcar circu- preferred vendor to manufacture have to be sought annually. Plans also include a $22 million commercial City-based HNTB Corp. to act as lator system, co-mingled with traf- loan. the five streetcars, with an option owner’s representative on the pro- fic, with 11 stops between Grand Project and bid details are online at m-1rail.com. for up to 25 more cars. ject, Childs said. Boulevard and Congress Street. It Delivery for that system is ex- Source: M1 Rail, Crain’s research M1 previously hired Detroit- will run in the median at its north pected to take 18 months. based Lovio George Communica- and south ends. The final bid, which Childs said the streetcar system. M1 has esti- “There’s a fair number of transit tions and Design Inc. as its outside won’t be let until late this year or mated the system will cost $5 mil- operators out there,” he said. public and media relations agency Bill Shea: (313) 446-1626, early in 2014, is for a private-sector lion initially to operate and main- Childs said one example of a pri- and is negotiating contracts with a [email protected]. Twitter: vendor to operate and maintain tain annually. vate operator is Lombard, Ill.-based pair of land appraisers, Childs @bill_shea19 Detector: Technology promises to bring ‘dignity back to travel’ ■ From Page 1 said Rob Payne, RML’s general that raise privacy issues, reduced onds from the current 10 seconds But it was clear from the London plosive are arranged in a unique manager. “No one else is doing this instances of pat-downs — and no and include metal detectors. show that ancillary markets such as way, the nitrogen nuclei in that ex- today.” more removal of shoes and belts at RAMI, formerly called R.A. Miller stadiums, corporate installations, plosive exhibit a characteristic fin- Because it forms chemical bonds airport security checkpoints. Industries Inc., has the financial re- public attractions, arenas, malls gerprint radio frequency. that can be unstable, nitrogen is “We like to say that this brings sources and manufacturing mus- and package-handling operations The SEE-QR system uses less found in virtually all commonly the dignity back to travel,” said cle to support RML as it breaks may boost that potential market to than 10 watts of radio power spread used explosives — everything from William Mouyos, CEO and co- into the security screening, said more than $1 billion annually. over a large area, which is less than trinitrotoluene of TNT to gunpow- founder of AMI Research & Develop- Payne, whose grandfather founded The price of a SEE-QR portal is a tenth of the exposure limit for hu- der, which the Tsarnaev brothers ment in Merrimack, N.H., the com- the company in 1956 to produce an- targeted to be $150,000 to $200,000, mans set by the U.S. Occupational are alleged to have used in bombs at pany that developed and applied tennas for military and general Payne said. He hopes to begin beta Safety and Health Administration. the Boston Marathon last month; to for patents on the SEE-QR technol- aviation applications. RAMI em- testing the device by September. Suits said that during its beta the explosive mix of ammonium ni- ogy. On April 30, AMI presented a ploys 137 full-time workers and testing, the SEE-QR system will be trate and diesel fuel that Timothy paper at the 2013 Defense, Security posts annual sales of $30 million to judged in two primary ways: false McVeigh used to blow up the Alfred + Sensing Symposium in Baltimore $40 million, he said. Old discovery, new technology negatives and false positives. P. Murrah Building in Oklahoma that detailed tests conducted by Robert Lynas and his family own Like many promising scientific “How well does it detect some- City in 1995. the company with actual explo- RAMI and RML, and Lynas has a discoveries, it took decades before thing when it’s there — does it Thanks to a quirk in the way ni- sives that confirmed the accuracy stake in the research firm AMI, technology had advanced far ever miss? That’s called getting a trogen atoms be- of the technique. which is also owned by Mouyos and enough to make the nuclear false negative,” he said. “Then the have, the SEE- “I find this intriguing,” said John Apostolos, who is AMI’s presi- quadrupole resonance effect feasi- question is whether it goes off QR technology is Bryan Suits, a professor of physics dent and chief technology officer. ble for commercial use. British sci- when there’s nothing there. That’s able to detect at Michigan Technological University Lynas, Mouyos and Apostolos all entist Robert Pound started exper- called a false positive. The biggest characteristic in Houghton and an expert in us- have decades of experience in the imenting with NQR just after problem in someplace like an air- signatures of dif- ing something called the nuclear application of antenna technologies World War II in the hopes that the port is the false positive. ferent explosives quadrupole resonance effect to de- and federal defense work. effect would help the military find “If you have a million people go- using low-power tect explosives. Besides their industrial experi- hidden land mines. Over the past ing through your airport, the odds AM radio signals “The key to whether it (SEE-QR) ence, all three men are listed as in- 50 years, researchers at installa- are that none of them have an ex- like radar, pass- is going to be commercially suc- ventors of antenna designs and a tions such as the U.S. Naval Re- plosive on them. So if you’re ing through cessful or not is how well it works range of innovations that include search Laboratory have succeeded O’Hare Airport in Chicago, and Payne wood, plastic, in practice,” Suits said. “They are rearview-mirror positioning sys- in using NQR to detect explosives, you got a million passengers going cloth and hermetically sealed metal not really going to know until they tems, photovoltaic arrays and de- but the techniques used made it through there over a period of containers such as pressure cook- get this out to some test sites.” tection systems. Mouyos and Apos- impractical in the field. time, you can’t have the bomb ers, Payne said. tolos worked at BAE Systems, NQR takes advantage of the fact squad out there every day. One SEE-QR doesn’t rely on recog- formerly Lockheed Sanders Inc., on that the nucleus of a common iso- false positive in a million becomes nizing silhouettes of images, as do Big enough to get it done projects that included antenna de- tope of nitrogen has a particular a large number.” X-ray machines. Rather, it tunes Payne said RML is outfitting a signs and data acquisition and “shape” that makes it able to ab- Mouyos said his company is tak- out background radio transmis- plant near the headquarters and recognition. sorb energy from a radio wave, ing those odds. “We looking at bet- sions and listens for the telltale ra- manufacturing facility of Grand Given the depth of its resources, reach a higher excited energy lev- ter than one in 1 million false- dio frequencies of explosives. Haven-based RAMI to construct the RML expects to first break into se- el, then eject energy in the form of alarm rates.” The result: faster checkpoints next iteration of the SEE-QR portal curity screening at airports that a radio wave when it returns to its Matthew Gryczan: (616) 916-8158; for passengers and patrons, no that most likely will slim down the may approach up to $400 million lowest energy state. Because the [email protected]; Twitter: need for human review of images unit, reduce scan time to three sec- annually, Payne said. nitrogen atoms of a particular ex- @mattgryczan 20130513-NEWS--0026-NAT-CCI-CD_-- 5/10/2013 5:40 PM Page 1

Page 26 CRAIN’S DETROIT BUSINESS May 13, 2013 Compuware: Standstill pact to expire ■ From Page 3 Journal reported that the group is ously prohibited, including: IT expertise than its peers’ boards. interested in buying Compuware, Ⅲ Acquiring enough shares of In April, Compuware added two too, possibly in partnership with stock to take it above the previous- out-of-state members with exten- Elliott. ly set limit of 9.99. sive IT backgrounds to its board. Sources who declined to be Ⅲ Making direct proposals to If Elliott pushes for and gets named told the Journal that an ac- shareholders. more board representation, it quisition of Compuware would Ⅲ Joining with another group or would have more leverage in push- provide cost savings and business to form a group to buy stock or the ing the sale of the company, which opportunities if it and BMC were company. in turn would replicate the BMC rolled into a single firm. model. Ⅲ Seeking either its own repre- Compuware officials decline to Last year, Elliott built up its sentation of the Compuware board comment about possible suitors, stake in BMC, got two seats on the or the removal of any current referring reporters to a statement board and continued to lobby for a board members. released on Jan. 25 that it would sale to boost shareholder value, listen to all credible offers. In De- When Elliott announced its which came to pass last week. cember, the company Goldman takeover bid for Compuware last A BMC-Compuware roll-up Sachs Group Inc. to manage a possi- December, Jesse Cohn, who heads makes sense given Golden Gate’s ble bid process, with bids reported- the hedge fund’s technology port- history, too. ly due in June. folio, was highly critical of the One of its portfolio companies, Elliott has declined to comment Compuware board. New York-based Infor, bought more because of the nondisclosure A subsequent examination by than two dozen companies be- agreement with Compuware. Crain’s of other publicly traded IT tween 2002 and 2012 en route to be- With the expiration of the stand- companies showed that Com- coming one of the largest makers still agreement, Elliott is free to puware’s board had far less geo- in the U.S. of business application pursue a variety of tactics previ- graphic diversity and professional software.

Halston: Luxury brand at Somerset ■ From Page 1 bags, belts and small leather goods, along with a collection of footwear that is exclusive to its retail stores. Up until last month, Halston Heritage products had been available only through retailers like Nordstrom, Neiman Marcus and Saks Fifth Avenue. Its new, 3,000-square-foot store at Somerset is set to open in late July or early August, right behind the April openings of its flagship McDonald Hopkins WORKSHOP store in New York City and second location in Los Angeles. Its mer- chandise will also continue to be sold at premium department T HE AFFORDAB LE CARE ACT stores now carrying it at the collection, Chairman and CEO Ben Mal- A Practical Workshop ka said in an emailed statement. Supported by Somerset, Troy “is PHOTO COURTESY OF THE FORBES CO. the home to a chic and fashion- Somerset Collection in Troy added to its roster of luxury brands with five new on Employer forward consumer that we believe stores planned to open between now and early next year. is the perfect fit for Halston Her- ants, aesthetics and ease of shop- itage,” he said. ping and parking continue to be an “Pay or Play” The luxury retailer will be in “ex- attraction to luxury retailers, said cellent company” with the count- It’s a close Jim Bieri, president of Detroit- less designer boutiques and premi- “ fraternity among based Stokas-Bieri Real Estate. um anchors there, said Malka. “It’s a close fraternity among Thursday, “The affluent demographic luxury retailers, luxury retailers, because they paired with the upscale environ- need to do business in a collective May 30, 2013 ment make it an ideal location for because they need environment,” he said. a brand like ours.” 10:00 a.m. to With other luxury malls in Or- Details on the other tenants: to do business in a lando, Naples and Palm Beach Ⅲ David Yurman sells jewelry col- Noon EDT Gardens, Somerset’s owner and lections for men and women, luxu- collective management company, Forbes, Watch our live webcast ry timepieces, fragrance and eye- on your computer has done business with every ma- RSVP: wear. The store expects to open in environment.” jor retailer in the country and mcdonaldhopkins.com September in 1,376 square feet of ” many around the world, Bieri said. or call: 800.847.6424 to space previously occupied by Wol- Jim Bieri, Stokas-Bieri Real Estate “Because of that, they have a ford, on the first floor of Somerset register. calling card to call any of those re- South. Wolford moved to the sec- Ⅲ The Disney Store in early 2014 tailers around the world,” and if ond floor. plans to occupy a 4,650-square-foot they don’t know one, they can easi- Ⅲ Clothing, accessories and store on the third floor of Somerset ly get an introduction, he said. home décor retailer C Wonder ex- North, in space previously occu- Forbes is constantly looking to pects to open in the fall with its first pied by Build-A-Bear, which moved ensure it is serving its major con- Michigan store on the second floor to larger space. stituencies at Somerset; it is about of Somerset South. It’s slotted for Those stores follow several oth- appealing to different tastes for dif- 3,110 square feet of space that’s tem- er openings at Somerset last year. ferent people, Nathan Forbes said. porarily occupied by The Limited. In 2012, luxury brands including McDonald Hopkins PLC David Yurman, for example, is a Ⅲ Microsoft plans to open in Emporio Armani, Giorgio Armani, L.K. tried-and-true brand, Bieri said. 39533 Woodward Ave., Suite 318, Bloomﬁeld Hills, MI 48304 Troy on June 28 in 7,354 square Bennett, Hugo Boss and 7 for All “At the same time, (Forbes) has 248.646.5070 feet previously occupied by The Mankind and national brands like the intestinal fortitude to try Limited, on the second floor of Som- Aritzia opened a collective 40,000 something new with Halston Her- Stephen M. Gross, Detroit Managing Member erset North. The Limited moved to square feet of space at Somerset. itage’s retail stores,” he said. Chicago • Cleveland • Columbus • Detroit • Miami • West Palm Beach temporary space in the same arm The performance of the retailers Sherri Welch: (313) 446-1694, of the mall (north) while it’s build- at Somerset, customers who shop [email protected]. Twitter: @sher- mcdonaldhopkins.com Carl J. Grassi, President ing out larger space. there, its premium anchors, ten- riwelch 20130513-NEWS--0027-NAT-CCI-CD_-- 5/10/2013 4:51 PM Page 1

May 13, 2013 CRAIN’S DETROIT BUSINESS Page 27 Roads: Roll out the barrels, repair season is here www.crainsdetroit.com ■ EDITOR-IN-CHIEF Keith E. Crain From Page 3 GROUP PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] I-94 in Macomb County and a num- ASSOCIATE PUBLISHER Marla Wise, (313) 446- ber of projects on Fort Street. 6032 or [email protected] EXECUTIVE EDITOR Cindy Goodaker, (313) 446- The state is doing more preven- 0460 or [email protected] tive maintenance rather than re- MANAGING EDITOR Jennette Smith, (313) 446- 1622 or [email protected] placement or new construction, MANAGER, DIGITAL CONTENT STRATEGY Nancy Morosi said. Hanus, (313) 446-1621 or [email protected] DEPUTY MANAGING EDITOR Daniel Duggan, (313) The repair work is primarily on 446-0414 or [email protected] roads and overpasses that have SENIOR EDITOR/DESIGN Bob Allen, (313) 446- sustained damage from Michigan’s 0344 or [email protected] SENIOR EDITOR Gary Piatek, (313) 446-0357 or rough winter weather over the [email protected] years, or just worn out over time, WEB EDITOR Kristin Bull, (313) 446-1608 or [email protected] he said. WEST MICHIGAN EDITOR Matt Gryczan, (616) 916- Road construction firms are 8158 or [email protected] DATA EDITOR Brianna Reilly, (313) 446-0418, feeling the pinch. [email protected] “It’s very slow. Our volume is WEB PRODUCER Norman Witte III, (313) 446- 6059, [email protected] down. The size of the projects and EDITORIAL SUPPORT (313) 446-0419; YahNica the numbers are dwindling,” said Crawford, (313) 446-0329 NEWSROOM (313) 446-0329, FAX (313) 446- Jim Doescher, a vice president at 1687 TIP LINE (313) 446-6766 Shelby Township-based Dan’s Exca- REPORTERS vating Inc., one of the major contac- Jay Greene, senior reporter: Covers health care, tors for MDOT road projects. insurance, energy utilities and the environment. “The freeway system in metro (313) 446-0325 or [email protected] Amy Haimerl, entrepreneurship editor: Covers Detroit, they’re going to more of a entrepreneurship, second-stage companies and mill-and-fill than a reconstruction small business. (313) 446-0416 or [email protected] effort to maintain the road with NATHAN SKID/CDB Chad Halcom: Covers litigation, higher education, the funds they have. We’re really I-75 will be one of many stretches of road in Southeast Michigan that at times will be reduced to parking lots. non-automotive manufacturing, defense not putting a permanent fix to the contracting and Oakland and Macomb counties. (313) 446-6796 or [email protected] projects if there was proper fund- Tom Henderson: Covers banking, finance, ing. It’s literally falling apart.” THE ROADS TO BE LESS TRAVELED technology and biotechnology. (313) 446-0337 or [email protected] The amount of road work award- Kirk Pinho: Covers real estate and the city of ed to construction firms is flat this Several commuting corridors are under construction $4.5 million (May-August) Detroit. (313) 446-0412 or [email protected] this season. Here’s a look at those most likely to affect Bill Shea, enterprise editor: Covers media, year compared to 2012, said Mike Resurfacing more than five miles of Woodward commuting traffic in the five-county area: advertising and marketing, the business of sports, Nystrom, executive vice president Avenue between 14 Mile Road and Oakridge and transportation. (313) 446-1626 or of the Lansing-based Michigan Infra- Boulevard in Royal Oak, Berkley, Huntington Woods [email protected] Detroit and Pleasant Ridge for $4.8 million (May-November) Nathan Skid, multimedia editor. Also covers the structure & Transportation Associa- food industry and entertainment. (313) 446-1654, tion, a trade group representing Replacement of the West Grand Boulevard I-94 Pavement repair on I-696 between I-275 and [email protected] Orchard Lake Road between Woodward Avenue and Dustin Walsh: Covers the business of law, auto nearly 600 companies that do road, overpass for $9.5 million (January-November) suppliers and steel. (313) 446-6042 or Dequindre Road in Novi, Farmington Hills, Farmington, bridge and utility construction. Replacement of the M-53 (Van Dyke Avenue) I-94 [email protected] overpass for $8 million (February-November) Royal Oak and Madison Heights for $2.2 million (June- Sherri Welch: Covers nonprofits, services, retail “We’ve seen that consistently August) and hospitality. (313) 446-1694 or probably for the past five years, Resurfacing three miles of Eight Mile Road between [email protected] Telegraph Road and the Southfield Freeway for $11.5 Bridge replacement at 13 Mile Road over the Rouge LANSING BUREAU since the end of the stimulus,” he River in Bingham Farms for $3.1 million (June-October) Chris Gautz: Covers business issues at the Capitol said, noting that road spending is million (April-October) and utilities. (517) 403-4403 or [email protected]. Resurfacing 12 Mile Road between Stephenson down in Michigan at all levels of Resurfacing more than five miles of I-75 between ADVERTISING Highway and Dequindre Road in Madison Heights for SALES INQUIRIES: (313) 446-6052; FAX (313) government. Piquette Avenue and Eight Mile Road for $3.3 million (June-August) $3.4 million (July-October) 393-0997 “We don’t see any significant Resurfacing Eight Mile Road between Napier and Taft SALES MANAGER: Tammy Rokowski changes. It’s pretty stagnant.” Replacement of the Fort Street bascule bridge over SENIOR ACCOUNT EXECUTIVE: Matthew J. the Rouge River for $46 million (April-December 2014) roads in Novi and Northville for $4.6 million (July-November) Langan Much of the work MITA’s mem- ADVERTISING SALES Christine Galasso, Jeff bers do get is maintenance rather Wayne County Macomb County Lasser, Dale Smolinski, Sarah Stachowicz than replacement, Nystrom said. CLASSIFIED SALES (313)-446-0351 “We’re seeing a continued Band- Reconstruction of four miles of Fort Street between Resurfacing five miles of I-94 between I-696 and EVENTS DIRECTOR Nicole LaPointe DIRECTOR, INTEGRATED MARKETING Eric Cedo Aid approach. The dollars are being Sibley and Goddard roads, which is the second year of Masonic Boulevard in Roseville and St. Clair Shores for a $40 million project, in Trenton, Riverview, Southgate, $17 million (March-October) SALES PROMOTION MANAGER Karin Pitrone stretched further and further,” he ASSISTANT EVENTS MANAGER Kacey Anderson Wyandotte and Lincoln Park (through November) Bridge rehabilitation on Metropolitan Parkway said. Governments are doing pro- SENIOR PRODUCER FOR DIGITAL/ONLINE jects that extend the life of a road a Resurfacing Middlebelt Road between Seven Mile and eastbound at the Clinton River Spillway in Clinton PRODUCTS Pierrette Dagg Eight Mile roads in Livonia for $1.2 million (May-September) Township for $1.28 million (July-October) MARKETING ARTIST Sylvia Kolaski bridge by a couple of years rather SALES SUPPORT Suzanne Janik, YahNica Crawford than costly full reconstruction. Resurfacing Haggerty Road between Plymouth and Road rehabilitation on 12 Mile Road between Hoover Schoolcraft roads in Plymouth Township for $1.1 million and Schoenherr roads in Warren for $1.33 million PRODUCTION MANAGER Wendy Kobylarz “We need to do major surgery,” PRODUCTION SUPERVISOR Larry Williams (May-October) (dates TBD) he said. CUSTOMER SERVICE Resurfacing more than seven miles of Fort Street If the state can work out the MAIN NUMBER: Call (877) 824-9374 or write between I-75 and Sibley Road in Rockwood, Gibraltar Livingston County [email protected] funding, some major surgery will and Woodhaven for $3 million (June-September) New I-96 interchange being built at Latson Road in SUBSCRIPTIONS $59 one year, $98 two years. happen in coming years that will Reconstruction of the I-94 bridge approaches over Out of state, $79 one year, $138 for two years. benefit commuters while poten- Howell for $29 million (through November) Outside U.S.A., add $48 per year to out-of-state U.S. 24 (Telegraph Road) in Taylor for $1.2 million (July- rate for surface mail. Call (313) 446-0450 or tially making their drives a night- September) Resurfacing M-59 from Oakway Drive to old U.S. 23 (877) 824-9374. in Howell and Hartland Township for $2.6 million (June- mare for a time. Resurfacing Merriman Road between Cherry Hill and SINGLE COPIES: (877) 824-9374 November) REPRINTS: (800) 290-5460, ext. 125; The state has two massive multi- Ford roads in Garden City and Westland for $1.23 (717) 505-9701, ext. 125; or lindsay.wilson year projects on the drawing board million (July-October) Resurfacing M-36 from M-52 to Kelly Road in @theygsgroup.com that would be titanic commuter an- Pickney and Hamburg Township for $1.4 million (May- TO FIND A DATE A STORY WAS PUBLISHED: November) (313) 446-0406 or e-mail [email protected] noyances, but both remain propos- Oakland County als because of the lack of money. CRAIN’S DETROIT BUSINESS IS PUBLISHED BY Resurfacing Coolidge Road between Webster Road and Washtenaw County CRAIN COMMUNICATIONS INC. MDOT’s wish list includes a $1.8 Woodward Avenue in Royal Oak for $1 million (April-July) CHAIRMAN Keith E. Crain billion plan to reconstruct nearly Resurfacing M-14/U.S. 23 at interchanges in Ann PRESIDENT Rance Crain Resurfacing nine miles of U.S. 24 (Dixie Highway) Arbor Township for $1.6 million (May-August) TREASURER Mary Kay Crain seven miles of I-94 between Conner between Telegraph Road and I-75 in Pontiac and Executive Vice President/Operations Avenue and I-96 to add a lane in Waterford and Independence townships for $19.2 Resurfacing I-94 between M-14 and Carpenter Road William A. Morrow in Ann Arbor for $3.6 million (July-November) Vice President/Production & Manufacturing each direction. million (April-November) Dave Kamis That project would include fix- Resurfacing more than 14 miles of southbound I-75 Compiled by Bill Shea and Kirk Pinho Chief Information Officer ing or replacing 60 overpasses and between M-15 and the Oakland-Genesee county line for Source: MDOT, county road commissions Paul Dalpiaz Chief Human Resources Officer construction of service drives that Margee Kaczmarek parallel the highway. There also block. These projects are vital pri- long-range plan, Morosi said. tion and Infrastructure Committee G.D. Crain Jr. Founder (1885-1973) would be interchange improve- orities because of condition and “Not all six-plus miles of I-94 and is studying funding options. Mrs. G.D. Crain Jr. Chairman (1911-1996) EDITORIAL & BUSINESS OFFICES: ments at I-75 and the Lodge. their crucial role in moving goods 17 miles of I-75 will be ripped up at Michigan’s 19-cents-per-gallon 1155 Gratiot Ave., Detroit MI 48207-2732; and people,” Morosi said. once. These projects will be done gas tax was set 15 years ago. Sny- (313) 446-6000 The other mega-project proposal Cable address: TWX 248-221-5122 AUTNEW DET is a $750 million plan to add a lane Both proposals have Washing- in stages,” he said. “There will be der wants to raise it to 33 cents, CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is in each direction for 17.7 miles on ton’s approval, but not the dollars. extensive outreach and public no- along with increasing annual car published weekly, except for a special issue the third week of August, and no issue the third week of I-75 from north of Eight Mile Road “These projects have been in the tification well in advance.” registration fees 60 percent, to December by Crain Communications Inc. at 1155 to just south of M-59. works for years; the federal record Michigan’s main transporta- boost transportation funding. Gratiot Ave., Detroit MI 48207-2732. Periodicals postage paid at Detroit, MI and additional mailing Also part of the project would be of decision for I-94 was approved in tion fund is at its lowest level in 30 The 18.4-cents-a-gallon federal offices. POSTMASTER: Send address changes to reconstructing or rehabilitation to 2005 for I-75 in 2006,” he said. years when adjusted for inflation. gas tax hasn’t increased in 20 CRAIN’S DETROIT BUSINESS, Circulation Department, P.O. Box 07925, Detroit, MI 48207- the highway’s current pavement, Detailed engineering studies Gov. Rick Snyder called for at years. 9732. GST # 136760444. Printed in U.S.A. along with bridge replacements have been prepared for the pro- least $1.2 billion in increased gaso- Bill Shea: (313) 446-1626, Entire contents copyright 2013 by Crain Communications Inc. All rights reserved. and new utilities. jects, and both are in the Southeast line taxes and license plate fees in [email protected]. Twitter: Reproduction or use of editorial content in any “Funding is the stumbling Michigan Council of Governments’ January. The House Transporta- @bill_shea19 manner without permission is strictly prohibited. 20130513-NEWS--0028-NAT-CCI-CD_-- 5/10/2013 4:47 PM Page 1

Page 28 CRAIN’S DETROIT BUSINESS May 13, 2013 SBA PREFERRED LENDER | TERM LOANS | REAL ESTATE LOANS | LINES OF CREDIT Mosaic: Swapping funds for space ■ From Page 3 Mosaic will contribute about Located on Detroit’s near-east $900,000 to the $13.5 million cost to side in the historic Miller High renovate the school, after in-kind We’ve seen too School building, the new elemen- donations of already completed “ tary school is scheduled to open in renovations from the founda- many small August. tion and credit for a percent- When it does, Mosaic will be- age of state historic tax cred- nonprofits, come its “arts organization in resi- its awarded to the project. not only here dence,” providing theater and mu- $153,000,000 in It has put the former WTVS- sic classes for students and Channel 56 building it bought professional development with in 2009 on the block to help but nationally, teachers to help them learn to in- Commercial Loans pay for renovations at its new when they get corporate their arts into the cur- place. riculum. Mosaic seeks $995,000 for its their own “For example, if (students) are three-story, 40,000-square-foot studying frogs, we’d potentially do for 2012 alone. building on Second Avenue buildings, it theater and music incorporating and Bethune Street near the frogs,” Sperling said. Fisher Building. It acquired can end up Mosaic’s integration into the Your hometown the building for $500,000 at the curriculum of the math and sci- height of the recession, founder taking them away ence school will be a leading exam- and President Rick Sperling said. ple of a new movement to integrate advantage. Detroit-based Jones Lang LaSalle from their the arts into STEM, or science, is serving as Mosaic’s real estate technology, engineering and math broker. mission. programs, to improve student Mosaic tried to find another or- ” learning and retention and to ganization to share the renovation Rick Sperling, Mosaic Youth Theatre spark creative thought, he said. costs of $4 million to $6 million and “This is not a real estate deal; Being local means we’re able to leverage approvals and decisions operating costs for the building roughly $500,000 to raise, if its it’s a deal to further enhance the right from our home office. It means more answers backed by along with space in it, Sperling building sells for around the ask- math and science school,” said the knowledge we've gained from being rooted here since 1917. said. But when it couldn’t, the arts ing price. John Cleary, vice president of fi- This means a lot for the business customers we help daily. Trust organization began looking at oth- In the new school, Mosaic will nance and real estate at the Thompson Educational Founda- us, that’s a big advantage for small business. er alternatives for a new home lease 12,600 square feet of space, rather than struggling to cover the which includes small, flexible tion. www.thefsb.com/businessloans | 866-372-1275 costs of the building. “black box” theater space, a choral It’s “a good programmatic fit for “We’ve seen too many small rehearsal room, office space, a the new math and science elemen- nonprofits, not only here but na- computer lab and a resource li- tary by having that arts compo- tionally, when they get their own brary. nent (provided) by a proven enti- buildings, it can end up taking It will also have use of an addi- ty.” them away from their mission,” tional 30,000 square feet when it’s Sherri Welch: (313) 446-1694, Sperling said. not in use at the school, Sperling [email protected]. Twitter: Former executive committee said. @sherriwelch board members Rob Riney, president and COO of Henry Ford Health System, and Matt Cullen, president and CEO of Rock Ventures LLC, A WEEKEND OF BASEBALL. worked with Sperling years ago to develop the space-sharing concept, The firm worth he said. A LIFETIME OF DREAMS. And Eric Larson, founder, president and CEO of Bloomfield Hills- based Larson Realty Group and co- listening to managing partner for Bedrock Real 20I3 FIELD OF DREAMS Estate Services LLC, the real estate is the firm that Summer Fantasy Camp* at Comerica Park. arm of Rock Ventures, helped ne- gotiate the deal to put Mosaic into SM the new University Prep school. The move to the new school will listens to you. save Mosaic $50,000 to $100,000 in JUNE 28 – 30, 20I3 the coming year through lower heating and cooling costs and consolidation of its offices, which are SM now in the Fisher Building, with Talk to Foley. We’re listening. its rehearsal, storage and technical shop, Sperling said. The arts organization is operating on a budget of $1.4 million this When our Detroit clients needed a national law firm year. that provides trusted local advisors with top-tier legal Mosaic estimates it will need an additional $800,000 beyond its por- skills, Foley delivered. That’s why our attorneys and tion of renovations to cover con- practices are consistently recognized for excellence sulting fees, the costs to carry its by our clients and industry experts.* current building and closing costs when that building sells, along with replenishing the $500,000 re- Learn more about how Foley can add value to your business. Contact serve it will tap for the project. Detroit Office Managing Partner Daljit S. Doogal at [email protected]. In total, the move will cost it about $1.7 million after the Thomp- son foundation’s donations of com- Foley.com pleted renovation projects and its portion of state historic tax credits awarded to the renovation. Mosaic has commitments for $125,000 from the Detroit-based Mc- Gregor Fund, a $70,000 challenge *Chambers USA: America’s Leading Business LawyersBOE64/FXTo#FTU-BXZFST® grant from the Bloomfield Hills- For more information or reservations based Fred A. and Barbara M. Erb Foundation, $25,000 from the De- #0450/t#3644&-4t$)*$"(0t%&530*5t+"$,40/7*--&t-04"/(&-&4

troit-based General Motors Founda- ."%*40/t.*".*t.*-8"6,&&t/&8:03,t03-"/%0t4"$3".&/50 CALL 3I3-47I-2550 4"/%*&(0t4"/%*&(0%&-."3t4"/'3"/$*4$0t4)"/()"*t4*-*$0/7"--&: tion and $20,000 from Edsel Ford II 5"--")"44&&t5".1"t50,:0t8"4)*/(50/ %$ or visit detroittigersfantasycamp.com and his wife, Cynthia. ª'PMFZ-BSEOFS--1t"UUPSOFZ"EWFSUJTFNFOUt1SJPSSFTVMUTEPOPUHVBSBOUFFBTJNJMBSPVUDPNF /$MBSL4USFFU 4VJUF $IJDBHP *-tt *For all fans 21 and over Those funds leave Mosaic with 20130513-NEWS--0029-NAT-CCI-CD_-- 5/10/2013 3:43 PM Page 1

May 13, 2013 CRAIN’S DETROIT BUSINESS Page 29 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF MAY 4-10

U.S. Secretary of Labor Alex- is Herman will be keynote Investors buy HONORING 20 IN THEIR 20S speakers at the conference. Pay-station Attendees will also take in Detroit with a golf outing Crown Group at Warren Valley Golf Course, a Detroit Tigers game, a tour group of investors snafu drives of the Charles Wright Museum announced Friday of African American History A the acquisition of and a reception at the Warren-based coatings sup- Detroit/Wayne County Port plier The Crown Group Inc. Authority. from its founding family. free parking Alisha Bell, the Wayne New York City-based pri- County Commission’s vice vate equity firm High Road isitors revenue the chairwoman, is the host Capital Partners LLC led the to city was los- commissioner of the event. investment, along with V downing each day Tickets are $200. For de- Westport, Conn.-based Char- town Detroit, the stations tails or to register, visit ter Oak Equity LP, Boston- AARON ECKELS around Wayne were down. nobcoinc.org. based Babson Capital Man- Honoree Evette Hollins (right), a senior financial analyst State Universi- Now if they agement LLC and several with Comerica Bank, Detroit, stands with Linda Forte, se- ty, Henry Ford can resolve members of Crown’s man- nior vice president business affairs at Comerica Bank, and Hospital and the other Local woman-led firms agement team. Terms were Herb Strather, president and CEO of Detroit-based devel- other spots, long-standing make national growth list undisclosed. oper Strather & Associates, at the Crain’s 20 in their 20s have been get- issues that celebration Wednesday at Buffalo Wild Wings in Detroit. ting a spring irk motorists Three metro Detroit Hollins worked for Strather & Associates every summer for gift: a pay- in the city — firms have made a list of the ON THE MOVE 10 years, beginning at age 12. nation’s 50 fastest-growing station holi- pay stations Ⅲ Charles “Chip” McClure day. that don’t ac- women-owned/led compa- has departed as chairman, Ⅲ Ann Arbor will be full week of retail sales, said Over the cept dimes, nies in 2013: CEO and president of Meritor home to most of the $4 mil- its manufacturer, Pitts- last few pay stations Ⅲ Rochester Hills-based Inc., the Troy-based commer- lion in new training and burgh-based PLB Sports Inc. weeks, more that keep business service provider cial truck supplier said. simulation contracts Ⅲ The Michigan Senate pay stations spitting your TTi Global, owned by Lori Ann Board member and former awarded to Arotech Corp., passed legislation allowing around town coins back Blaker, was 12th on the list. Union Pacific Corp. CEO Ivor mainly via U.S. Air Force some of the state’s wineries have stopped out the bot- It saw revenue increase TOM HENDERSON/CDB Evans will become executive awards for programs in the to offer tastings at the state’s displaying tom and pay from $63 million to $106.5 chairman and interim presi- air warfare simulation di- nearly 300 farmers markets. anything on stations that million in two years while dent and CEO. McClure, 59, vision of Arotech’s First Ann Dan Carmody, president of their small screens. You hit only give you credit for adding 545 employees. had led Meritor since 2004. Arbor Corp. Inc. Detroit-based Eastern Market the number on the station’s every other quarter. Ⅲ Troy-based Iconma LCC, Ⅲ Cooper-Standard Holdings Ⅲ Allen Park-based Vehi- Corp., said he would wel- keypad corresponding to a staffing services and Inc. named President and cle Production Group LLC, come the opportunity to your parking space and project-based solutions CEO Jeffrey Edwards as the which makes vans for peo- showcase state-produced nothing happens; the screen Black county officials company owned by Claudine chairman of its board of di- ple with disabilities, shut wines at the market. just stays gray. George, ranked 14th. Its rev- conference comes to town rectors. He succeeds former down operations and laid Ⅲ The first of two contain- Suddenly, last week, enue grew from $88.7 mil- CEO James McElya, who re- off roughly 100 employees, ers intended as a demonstra- sheets of photocopied paper Wayne County is hosting lion to $109.7 million in two tired from the Novi-based USA Today reported. tion for a cargo shipping started showing up, taped to the National Organization of years, and it hired 551 em- auto supplier in October but Ⅲ Advanced battery container hotel planned for the stations, facing the Black County Officials’ 29th ployees during that time. remained as chairman until maker LG Chem Michigan Detroit landed at Eastern street with this message: annual economic develop- Ⅲ Northville-based Pre- his term expired. Inc. plans to launch com- Market. Detroit Collision “Out of order. Two-hour ment conference Wednes- ferred Solutions Inc., a staffing Ⅲ The Southfield-based mercial production of auto- Works Inc. intends to convert limit enforced.” day through Sunday at the and training firm owned by Farbman Group promoted motive lithium-ion battery containers into the proposed The city was giving you Westin Book Cadillac in De- Marie Seipenko, ranked No. CFO Andrew Gutman, 44, to cells in Holland in July. Collision Works Hotel. two hours free parking, or troit. 43. It saw revenue grow from president. COO Michael Kalil, Ⅲ Novi-based ITC Ⅲ The Michigan Depart- whatever the time limit The five-day conference, $10.6 million to $18.3 million 48, will assume manage- Holdings, the largest inde- ment of Transportation recom- was, but then would issue billed as “The Dream Lives in two years while adding ment of NAI Farbman, the real pendent U.S. owner of high- mended lifting a ban on tickets. On … Sustaining a More Eq- 109 employees. estate company’s brokerage. voltage power lines, and trucking hazardous materi- Messages left for city offi- uitable Community Thru The firms were ranked ac- New Orleans-based Entergy als across the Ambassador cials and the Municipal Park- Health, Economics and cording to a sales growth Corp. face negotiations “for Bridge and is taking public ing Department elicited an Smart Justice,” will feature formula that combines per- COMPANY NEWS ransom” as five states and input until May 27, The De- email response: “Some au- keynote speakers and ses- centage and absolute Ⅲ Dearborn-based Ford the city of New Orleans re- troit News reported. tomated pay stations … are sions on health, the impact growth. Motor Co. signed a multi- view the planned sale of Ⅲ A state report says Pon- temporarily out of order, of charter schools, voting The list is co-sponsored million-dollar deal to be- Entergy’s high-voltage tiac School District finances due to technical issues that rights, justice system bud- by the nonprofit Women come the title sponsor of power lines to ITC. are in bleak shape and the the department is working gets, banking and the impact Presidents’ Organization and Detroit’s annual fireworks Ⅲ The Detroit Lions district might not be able to to resolve.” of gaming on communities. American Express OPEN, the display for the next three signed their top draft pick, make payroll soon, the De- No response, though, to a Philadelphia Mayor small-business division of years. Target Corp., which defensive end Ezekiel “Zig- troit Free Press reported. question about how much Michael Nutter and former American Express. had been title sponsor of gy” Ansah, to a five-year Ⅲ Nation of Islam leader the fireworks for 11 of the contract. Terms were not Louis Farrakhan plans to visit past 12 years, will shift to disclosed. Detroit on Thursday and presenting sponsor for this Friday. year’s June 24 event. Ⅲ A federal appeals court Ⅲ Pleasant Ridge-based OTHER NEWS cleared the way for Michi- online and mobile promo- Ⅲ The City of Detroit Build- gan public school districts EST FROM THE LOGS tions and sweepstakes com- ings, Safety Engineering & En- to stop collecting union dues B B from teachers and other em- pany ePrize Inc. said it ac- vironmental Department said READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS quired a chief competitor, it has started the process to ployees through payroll de- duction, the AP reported. New York City-based Promo- demolish the Arnold Home, a Ⅲ Likely spots for B Spots Price’s goal: Increase giving tions.com LLC. Financial former retirement home Lt. Gov. Brian Calley, terms were not disclosed. built in 1931. who has led recent invest- Michael Symon’s Glenda Price, Ⅲ Emeryville, Calif.- Ⅲ The U.S. Justice Depart- ment missions to the first“ Michigan B Spot president“ of the Detroit based TubeMogul Inc., a ment said the Golden Corral Netherlands and Mexico, Burger restaurant will be Public Schools brand marketing company, restaurant in Westland was to leave Sunday on a in Rochester Hills, said Foundation, is on a officially opened a three- six-day, Michigan Economic Doug Petkovic, COO of mission to strengthen agreed to pay $60,000 for person Detroit office in the telling a family to leave be- Development Corp.-spon- the Cleveland-based the foundation’s annual sored mission to Brazil. Symon Restaurant giving program. Madison Building. cause the children had a ge- Group. He also said Ⅲ School regents gave netic skin condition, the AP there’s a plan to open in ” Eastern Michigan University reported. The department OBITUARIES downtown Detroit. President Susan Martin a sued the eatery in February. two-year contract extension, Ⅲ Consumers scooped up Ⅲ James Bannon, long- Nathan Skid’s Detroit-area restaurant blog, “Table” Sherri Welch’s blog on “The Business of Being through July 7, 2015. She 10,500 jars of Detroit Tigers time executive deputy chief Talk,” can be found at Nonprofit” can be found at will get a 2.7 percent pay in- star Miguel Cabrera’s in the Detroit Police Depart- www.crainsdetroit.com/section/blogNathanSkid www.crainsdetroit.com/section/blogSherriWelch crease, to $300,000 annually. “Miggy’s Salsa” in its first ment, died May 6. He was 84. DBpageAD_DBpageAD.qxd 4/16/2013 3:45 PM Page 1

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