20160307-NEWS--0001-NAT-CCI-CD_-- 3/4/2016 5:47 PM Page 1

New DIA chief: I’d bring the ‘temple’ down to street level, PAGE 3

MARCH 7-13, 2016

3 years later,ambitious concept still work in progress Put to the test Water crisis keeps labs busier – and not just in Flint

By Chad Halcom [email protected] The Flint water crisis has lead contami- nation on the minds of officials far outside Genesee County — and business is brisk for the laboratories and water quality ex- perts who can either confirm or allay those QL MEDIA HOUSE worries. Street-level projects such as the “If I Die” chalk wall on Woodward have been a big School districts in rural areas that rely on part of the “place-making” efforts to make downtown more appealing. wells are required to test drinking water for lead from those wells at least once every three years, and often more frequently under U.S. Environmental Protection Agency City place-making regulations — but school districts on city water are not. The Flint crisis has many school districts, day care providers and some municipalities plans taking time elsewhere in Michigan eager for assurances that the same contamination issues haven’t hit closer to home, experts said. By Kirk Pinho list of the projects and ambitious Rochester Community Schools retained [email protected] plans the city still needs done: com- Ann Arbor-based Nova Environmental Inc. to The big things were supposed to pletion of the $137 million M-1 Rail collect water samples from 21 schools and be done by now. project, now slated to be completed other buildings for testing at a Michigan De- Three years ago this month, the in the first quarter next year; the re- partment of Environmental Quality laborato- concept of “place-making” in development of the 2-acre former ry. The initial testing found no samples downtown Detroit was officially in- Hudson’s department store site, with above the EPA corrective action threshold “The lead work is such that troduced with a plan to turn the a development plan not yet submit- of 15 parts per billion — but a second sam- we find ourselves pulling central business district into a ted to the city; and a pair of complex ple batch has gone to Ohio-based National pedestrian and shopping haven projects that would reimagine two Testing Laboratories Ltd., and results are ex- weekends or longer days.” using a community development key city arteries: Woodward and Jef- pected back later this week. concept aimed at boosting a com- ferson avenues. KaryAmin,partner and vice president,Nova Environmental Inc. Superintendent Robert Shaner sought munity’s quality of life to attract and Those projects remain in the the testing following reports on the Flint retain businesses and workers. works at varying levels of crisis, and the second sample collection Regulation vs. red-tape cutting: Water crisis raises questions on What was intended to be com- completion. SEE WATER, PAGE 19 how DEQ balances regulation, customer service. Page 18. pleted by the end of 2015 is a check- SEE DOWNTOWN, PAGE 20 Natural gas pipeline sits at Nexus of DTE’s income growth plans

By Gary Anglebrandt Spectra Energy Corp., which are equal- mits from local municipalities all Crain’s Detroit Business ly splitting the $2 billion project cost. Special Report: the way up to the Federal Energy Reg- In the first quarter of next year, Nexus will pipe natural gas sourced Renewable energy ulatory Commission. But it is sched- businesses and residents in Washte- from Appalachian fracking fields in Wave of investment powers up uled for operation in the final quar- naw, Lenawee and Monroe coun- Ohio and Pennsylvania — part of the green energy even as state utility ter of 2017, pending commission ties can expect to see construction Marcellus and Utica shale basins that approval, which DTE expects to get requirements end, Pages 9-13 begin on a pipeline that will bring are among the country’s richest in the fourth quarter of this year. natural gas from 250 miles away. sources of natural gas. The project is separately funded The Nexus pipeline is a joint-ven- Nexus will start in eastern Ohio, before moving on to Monroe and outside the utility side of DTE’s ture project between Detroit-based run across the Buckeye State and Washtenaw counties. Fifty-five of business, and therefore the compa- DTE Energy Co. and Houston-based enter Michigan in Lenawee County the 250 miles will be in Michigan. ny does not need to seek a rate hike Those 55 miles are mostly rural approval from the commission to © Entire contents copyright 2016 and run along existing utility corri- pay for it, the company said. by Crain Communications Inc. All rights reserved. dors, so the companies do not ex- Nexus will be able to carry 1.5 bil- crainsdetroit.com Vol. 32 No 10 $2 a copy. $59 a year. pect to meet much resistance from lion cubic feet per day. For perspec- property owners here, although they tive: The amount of gas it sends out have faced some blowback in Ohio. every day on the utility side of its In Washtenaw, it will join with a business is 0.8 billion cubic feet. DTE pipeline that connects to hubs The project is a major one for a in Ontario and the Chicago area. segment little known to DTE cus- The project began in 2013. The tomers, who think of the company companies are still working to get NEWSPAPER all the relevant approvals and per- SEE PIPELINE, PAGE 21 20160307-NEWS--0002-NAT-CCI-CD_-- 3/4/2016 3:51 PM Page 1

2 CRAIN’S DETROIT BUSINESS // MARCH 7, 2016

2014, have opened a stand-alone to protect the public, auditors said MICHIGAN coffee shop and restaurant in Friday. A report by the state auditor INSIDE Eaton Rapids. general found that staffers in the THIS ISSUE According to a Lansing State DEQ’s drinking water office failed to BANKRUPTCIES ...... 7 CALENDAR ...... 15 Journal report on the new Mark’s order the city to treat its water with CLASSIFIED ADS ...... 17 Place , the couple had wanted to cre- anti-corrosion chemicals as it DEALS & DETAILS ...... 16 ate a community-oriented venture, switched to the Flint River in 2014, OPINION ...... 6 BRIEFS even if it required a lot of sweat eq- The Associated Press reported. The OTHER VOICES ...... 6 uity. They did it on a small budget, city had been using Lake Huron PEOPLE ...... 16 Republicans offer little might have believed Trump has a investing $25,000 into the renova- water from Detroit but made the RUMBLINGS ...... 22 about state in city debate good shot at winning Michigan, tion of the 2,200-square-foot Main change to save money. WEEK ON THE WEB ...... 22 and thus decided to test other Street space and doing most of the Ⅲ The future of Oklahoma ener- In their debate last week at the candidates on the issues. But, he work themselves after moving up- gy magnate Aubrey McClendon’s Fox Theatre in Detroit, Republican added, it also reflected an overall stairs with their 7-year-old child. planned development in the dunes COMPANY INDEX: presidential candidates fielded lack of time and attention paid to “We recycled everything that overlooking Lake Michigan in SEE PAGE 21 Michigan-centric questions about statewide issues given that the we used,” Krysta McGee said. “We Saugatuck Township became even Flint’s lead water crisis and infra- debate was held here. found skills that we didn’t know more uncertain with his sudden structure, the possibility of a federal Kall earlier told Crain’s he we had.” death last week, MLive.com report- censing agreement with New Jer- bailout for Detroit Public Schools, thought Flint’s water crisis and the The new business replaces Mark’s ed. The planned development with sey-based Merck for the use of and jobs. automotive industry, to name two, Gourmet Dogs, which the McGees high-end homes, a resort and golf AureoGen’s proprietary chemistry But with Michigan’s presidential might play more prominently. closed in December after a year and course was in question even before and compounds. The science has primary set for Tuesday, Fox News Michigan landed Thursday’s Re- a half as a specialty hot dog vendor McClendon, 56, was killed in a fiery helped produce derivatives that Channel moderators held off until publican debate and a scheduled at the Lansing Mall. A grand opening crash in Oklahoma City, the day show promise in fighting diseases the debate’s second hour to ask a debate Sunday in Flint between De- is set for March 11. after the part-owner of the National that impact organ transplant re- question aimed specifically at the mocratic presidential candidates The McGees would like for Basketball Association’s Oklahoma cipients, AIDS patients and oth- state’s voters. And even then, Michi- Hillary Clinton and Bernie Sanders people to gather at their place for City Thunder was indicted in Okla- ers. AureoGen did not disclose gan questions took up fewer than 10 not only as the state formally kicks live music and other events. “It’s homa for rigging bids for oil and how much Merck is paying as part minutes of a roughly two-hour off its presidential election season, cool because it’s our place,” Mark natural gas leases while he was CEO of the agreement. broadcast. but as it deals with the escalating McGee said. “We can do whatever of Chesapeake Energy. McClendon Ⅲ Plans call for creating a 19th Interestingly, GOP front-runner fallout from a lead-poisoning crisis we want.” was accused of similar bid-rigging century-styled business district in and businessman Donald Trump in Flint’s drinking water. (More on in a lawsuit filed by a Northern part of Traverse City, the Traverse was the only one of the four candi- the debate in Detroit, Page 22.) MICH-CELLANOUS Michigan property owner, an alle- City Record-Eagle reported. Con- dates at the event not to be given a gation he denied. struction on the $1.3 million re- question related to Michigan. ‘Food Court Wars’couple Ⅲ The Michigan Department of En- Ⅲ Global pharmaceutical giant make of Garland Street in the “That certainly was surprising,” opens new restaurant vironmental Quality made crucial er- Merck & Co. will use a small Kalama- tourist-oriented city could begin as said Aaron Kall, director of debate rors as the city of Flint began using a zoo company’s chemistry and com- early as April with substantial com- at the University of Michigan, of Mark and Krysta McGee, the new drinking water source that pounds to develop new medicines pletion planned before the Fourth Trump’s silence during the local Lansing-area couple profiled in a would become contaminated with for infectious diseases, MLive.com of July. The city is rebuilding the L- questioning. locally filmed episode of the Food lead, but the rules the agency failed reported. Kalamazoo-based Aureo shaped street to make a better con- Kall said debate moderators Network’s “Food Court Wars” in to heed may not be strong enough Gen Biosciences Inc. says it has a li- nection to downtown. Ⅲ

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CRAIN’S DETROIT BUSINESS // MARCH 7, 2016 3 Lear seeks UAW deal for city jobs Supplier: Lower wage tier part of ‘balancing act’

By Dustin Walsh [email protected] Lear Corp.’s Matt Simoncini wants the supplier to be the bellwether of manufac- turing success in the city of Detroit. That comes at a cost — a lower cost, if Lear gets the labor deal it wants to make the economics work. The CEO of Southfield-based Lear aims to create 500 to 1,000 new union-represent- ed manufacturing jobs in Detroit, potential- ly under a new classification at a lower Salvador Salort-Pons wants to do even more to bring the hourly rate than at its other plants. Detroit Institute of Arts to street level. Simoncini said it could create new jobs in the city instead of Mexico if it could attain a ERIC WHEELER new wage tier with the United Auto Workers that pays in the mid-teens per hour with some ben- efits. A specified pay rate Down-to-earth DIA and benefits would need to be negotiated and are By Sherri Welch New director wants rather than just art historians. subject to moving up or [email protected] Four and a half months into his tenure as down, the company If Salvador Salort-Pons, the new director of museum to be accessible, the museum’s director, Salort-Pons is looking said. Matt Simoncini: the Detroit Institute of Arts, had things his way, at ways for the museum to participate in the Lear currently pays Lear CEO wants he’d bring the city’s “temple of art” down to connected to Detroit city’s revitalization, from forging a town $35 per hour, which in- “apprentice” pay. the ground. square around the museum and other Mid- cludes the cost of bene- Making physical changes to bring the mu- Court “cultural living room.” “The problem is, town institutions, to helping revitalize neigh- fits, at its just-in-time seum’s Woodward Avenue plaza to street level we are still seen as an elitist institution — we borhoods through community art projects. seating plants and upward of $25 per hour would go a long way toward making the DIA are the temple of art.” At the same time, he plans to look for ways to at its component plants, Simoncini said. more accessible to people from all walks of The elitist view of the museum persists measure the impact the DIA is having on “Right now, we (the UAW and Lear) are in life, he believes, and help position the muse- despite its visitor-centered reinstallation of children’s creativity and, by extension, their agreement on the goal, but we need to get um to play a role in Detroit’s revitalization. its art collection eight years ago, an ap- problem-solving skills and confidence levels. to an acceptable wage solution,” Simoncini “We want to be an agent of change in the proach that’s been benchmarked by muse- But the museum must first be seen as said. “The UAW wants to put their name on community,” Salort-Pons said last week dur- ums around the world for its aim to make more accessible. a fair deal, so it’s a balancing act, and I wish I ing a conversation in the museum’s Kresge the works of art accessible to everyone, SEE DIA, PAGE 17 could pay everyone at the highest end of the SEE LEAR, PAGE 21 Lester to buy Stroh River Place properties By Kirk Pinho 301 apartments and a 67,000- on a resurgent riverfront district. [email protected] square-foot office building to his “Stroh River Place is the premier Matt Lester plans to buy a big greater downtown real estate port- apartment complex in the D, in my part of a 25-acre mixed-use river- folio. opinion,” Lester said. “If I were look- front development that would add Lester, the founder and CEO of ing for luxury and value in the D, Bloomfield Township-based Prince- this would be the first place I would ton Enterprises LLC, says he has the go looking.” Stroh River Place apartments at 500 The properties are in the $200 River Place and the Class A Talon million Stroh River Place develop- Centre office building at 100 River ment, which sits on land formerly Place under contract from their owned by Parke-Davis & Co., the for- owners. mer Detroit-based pharmaceutical “They are both jewels,” company purchased in 1970 by Lester said. Warner-Lambert Co., which New The purchase of York-based Pfizer Inc. bought three MUST READS OF THE WEEK the buildings, part of decades later in 2000 for $90 billion. one of Detroit’s most The Stroh River Place apartments significant riverfront purchase from the Detroit General Online exclusive: Demolition map redevelopments Retirement System for an undis- Check out an interactive map of every home demolished by the five largest nearly 30 years ago, closed price is expected to close contractors in Detroit’s massive federally funded blight-elimination effort. represents a big bet early next month, according to crainsdetroit.com/data SEE RIVERFRONT, PAGE 20

MICHAEL LEWIS II Gold in the suites — in Utica The century-old buildings that make up River Place once housed New independent-league stadium has sold more than $1 million in premium Parke-Davis’ pharmaceutical operations. seating with promise of white-glove service, Page 4 20160307-NEWS--0004-NAT-CCI-CD_-- 3/4/2016 5:00 PM Page 1

4 CRAIN’S DETROIT BUSINESS // MARCH 7, 2016 New baseball league finds takers for premium seating

By Bill Shea [email protected] The developer of a new rookie pro baseball league and stadium in Utica said he will have sold $1 mil- lion in premium stadium seating by Opening Day in May. Nineteen of 24 suites being built at $12 million Jimmy Johns Field along M-59 have been leased under five-year contracts that range in an- nual cost from $35,000 to $55,000, said ballpark owner and Rochester sports entrepreneur Andy Appleby. Additionally, 16 of 18 half-moon- shaped “On Field Diamond Tables” that each seat four have been leased LARRY PEPLIN under five-year contracts for Andy Appleby says the stadium’s selling points will include white-glove customer $20,000 annually, he said. service. For more construction photos, see crainsdetroit.com/photos. Talks are underway to lease the final suites and tables before the could be spent on player salaries. The USPBL stadium is com- three-team independent United The USPBL, whose teams will have manding a premium for suites that Shore Professional Baseball League sea- up to 25 players each, is for players other minor-league baseball teams son begins on May 30, Appleby said. ages 19 to 25 who have not yet in the state are not. Once those deals are signed, the made it into Major League Baseball’s “I personally think the prices we stadium will have topped $1 million minor leagues. charge for our partnership and suites in premium seat revenue for 2016. Each of the USPBL’s three teams are dirt cheap because of the level of Appleby, a former Palace Sports & (the Utica Unicorns, Eastside Diamond service we’re providing,” he said. Entertainment executive who has Hoppers and Birmingham Bloomfield Another independent develop- owned professional baseball and Beavers) will play a 50-game season. mental league team, the Traverse soccer clubs, said he relied on life- All three clubs will share the stadi- City Beach Bums of the Frontier long business relationships to sell um. League, is leasing its 27 suites at the suites and tables. He isn’t worried that fans won’t be 3,518-seat Wuerfel Park for 2016’s “I’ve lived here for 30 years and interested in developmental-level 48-game season at $4,320 each. Sin- have not just a great reputation, but baseball, and expects to sell 500 to gle-game rentals are $120. developed thousands of relationships 1,000 season tickets, or combinations Wuerfel Park also has premium here,” he said. “It’s a place where my of full-season tickets that equal that four-person tables that lease for office is eight minutes from the ball- many. $2,000 to $2,400 for the season, or park and my home is 16 minutes.” His business plan is to generate $60-$70 for a game. All of those Additionally, an improved post- revenue from the baseball games — prices are discounted from 2015. recession economy has made it eas- ticket, concession, merchandise The ballpark, just outside of Tra- ier to sell premium seating and cor- and suite sales revenue — and lease verse City in Bath Township, opened porate sponsorships, Appleby said. the ballpark and site for public and in 2006 at a cost of $6 million. “I’m not sure I’ve ever seen it as private events such as fireworks, By contrast, Lansing’s city-owned vibrant as today,” he said. concerts, graduation ceremonies, 7,527-seat Cooley Law School Stadium, In addition to the usual premium Little League games, youth soccer formerly Oldsmobile Park, has 13 seating perks, what Appleby and his games and high school sports. corporate suites for the Single-A company, Rochester-based General Single-game tickets will range Lansing Lugnuts that lease for $16,500 Sports and Entertainment LLC, are sell- from $6 to $25, with the latter seat a season (70 games), according to ing is the idea of first-class customer price having $5 worth of conces- Nick Brzezinski, the team’s assistant service beyond what you see even at sions wrapped into it. general manager for sales. major league venues, he said. The majority of revenue is com- The suites lease for three years and “My goal is not just to be the ing from corporate sponsorships include 10 tickets. All are currently cleanest facility in America, but and premium seating. leased, Brzezinski said, and five other double the service level,” he said. There are six $35,000 “cabana” suites are reserved for single-game “Because it’s our deal and our baby, suites over the dugouts that lease rentals at $600 per night for groups or Intellectual Property | Litigation | Technology we plan to be there all the time. for $35,000 a season. They have companies that want a one-off way We’re really going to introduce a fans, sectional seating, fire pits, and to watch the Toronto Blue Jays affiliate. level of service that hasn’t been seen are separated by fabric akin to a Appleby, a Crain’s Detroit Busi- before, a level of personal service.” tropical resort cabana. ness 40 under 40 honoree in 2000, His goal of elite customer service Dugout-level suites lease for previously owned the Fort Wayne Transactional — no napkin on the ground for $45,000. The draw is their proximity Wizards, a Class A minor league experience on par more than five seconds, attendants to the action — about 30 feet from baseball affiliate of the San Diego in the bathrooms — means an army home plate. Padres, and England’s Derby County with the major Silicon of stadium workers. “They’re some of the closest in FC Ltd. soccer club. Valley law firms. About 20-30 people will work full baseball history,” Appleby said. Sports industry watchers are im- time at the stadium and with the The seven “founders” suites are pressed with Appleby’s efforts so far. – BRAD KANCIGOR,KANCIGOR, ASSOCIATEASSOCIATE GC teams, from ballpark operations large premium spaces atop the sta- “If those sales numbers are accu- Synopsys,Synopsys, IncInc and ticket staff to front office per- dium that lease for $55,000 a year. rate, they are very impressive for in- sonnel and managers. One company that has a suite is dependent league baseball. In fact, Most of the league’s expenses will Troy-based mortgage lender United those numbers would be impres- YOUNG BASILE. be driven by game-day staff, coach Shore Financial Services LLC, which sive for many minor league A-level Strategic advisors to the world’s and management salaries, Appleby last year spent an undisclosed sum teams, which are a step above inde- said, and he estimates annual league for the league’s naming rights. pendent league baseball,” said Mike most innovative companies. operating costs at about $4 million. “Andy has done an amazing job Dietz, president and director of Player salaries are not a major ex- with his vision for this league, and Dietz Sports & Entertainment in Ⅲ ANN ARBOR TROY SILICON VALLEY CHICAGO pense: The pay scale is $600 to $800 we are so excited to be a part of it,” Farmington Hills. a month, the league said, meaning a United Shore President and CEO Bill Shea: (313) 446-1626 www.youngbasile.com maximum of $60,000 a month Mat Ishbia said. Twitter: @Bill_Shea19 DBpageAD_DBpageAD.qxd 12/29/2015 11:05 AM Page 1 20160307-NEWS--0006-NAT-CCI-CD_-- 3/4/2016 5:05 PM Page 1

6 CRAIN’S DETROIT BUSINESS // MARCH 7, 2016 CRAIN’S DETROIT BUSINESS OPINION DPS woes deserve national attention uring last week’s Republican presidential debate here in Detroit, the candidates didn’t have their facts straight when discussing Dthe status of Detroit’s schools. Now, there is no need to harp on this too much, because the candidates had plenty of other facts wrong, too. That is the predictable result of a live debate and the state of Ameri- can politics, which seems to be based more on celebrity bravado than on meat-and-potatoes policy issues. But the brief refer- ence to the Detroit Public Schools does raise a larger issue. The long-needed DPS reforms have gone through so Wayne State med school must forge ahead many iterations and delays, the collective n November 2015, Crain’s pub- better spent promoting talented, understanding — Ilished an article about a financial ambitious faculty who are advanc- both nationally and in deficit facing Wayne State Universi- ing knowledge, educating our fu- our own backyard — ty’s School of Medicine and the ture doctors, and caring for our pa- is garbled. Wayne State University Physician tients. Supporting people who are Here are the facts: Group. At that time, I wrote an op- not contributing to the advance- PAUL SANCYA/ASSOCIATED PRESS DPS is under the con- ed piece stating that the problem ment of medicine or the medical trol of a newly state-appointed transition manager, retired U.S. Bank- was long-standing and was discov- school impedes our ability to build ruptcy Judge Steven Rhodes. Rhodes has a track record of finding prag- ered internally, and that although it OTHER VOICES a bright future for all. matic solutions, most recently in his work on Detroit’s bankruptcy. would require tough decisions and Jack Sobel We have communicated with fac- One of Rhodes’ big tasks is to hire an interim superintendent, and he significant changes over time, the Jack Sobel is dean of Wayne State ulty union leadership who are aware has said he is considering a mix of internal and external candidates. problem would be resolved. I also University’s School of Medicine and of this issue and have discussed it Whoever is selected has his or her work cut out. indicated that this signaled a new chairman of the board of Wayne State openly and frankly in campus pre- The district’s finances are in a death spiral because of a crippling debt era of accountability for the School University Physician Group. sentations and communications. load, and teachers and students are rightfully discouraged at poor and, of Medicine and the university, and The School of Medicine administra- in some cases, unsafe building conditions. a golden opportunity to reposition faculty have been underproductive tion has also presented the issue to Meanwhile, legislators in Lansing continue to weigh options, from within the quickly evolving health for many years, draining the School the university’s board of governors. funneling a portion of national tobacco settlement money to school care landscape. of Medicine and university of need- Faculty members who have been budgets, to Gov. Rick Snyder’s proposal that also would split DPS into Since then, we have been hard at ed resources totaling many millions identified as unproductive will be two districts, one to service debt and one to educate kids. work. As we continue to examine of dollars. We cannot allow these sent letters notifying them of that DPS’ $515 million in debt is a crisis, and the district is rapidly running and develop solutions to address valuable resources to be provided to fact, and advising them of the next out of funds. The powers that be in Lansing need to continue to work to- our finances, the time has come for individuals who are not significant- steps to be taken. ward resolving this issue; this is the kind of issue that merits late-night us to confront an issue of underpro- ly advancing our mission. Moving forward, our resources sessions and serious dealmaking. ductive faculty. Most of our faculty Previous administrations may will be strategically redirected and Imagine if a DPS solution could be applauded at the Republican Na- are outstanding, but too many are have tolerated underproductive invested in the labs and output of tional Convention in July? not doing enough. A systematic, faculty, but in conjunction with the productive faculty. data-driven analysis has identified transparency and accountability es- This is a challenging time. Ad- members of the faculty we intend to tablished under university Presi- dressing this situation will require Flint crisis: DEQ changes weighed address through processes, up to dent M. Roy Wilson and his admin- action and resolve from our leader- and including separation from istration, that time is over. This is a ship, and President Wilson is lead- With all the document digging and email discoveries related to Wayne State University. new era, both for the School of ing the way with his firm example the Flint water crisis coming to the surface, there is a related issue We define unproductive faculty Medicine and the university. and demand for accountability. bubbling up. members as those who have not Let me be clear. This issue is Challenging times can also be The crisis, as Jay Greene explains on Page 18, is bringing new scrutiny met the lowest of bars when it about what is right and what is viewed as opportunities, however, to Gov. Snyder’s efforts in recent years to streamline state regulations. comes to applying for and receiving wrong — not labor and tenure, as and we are confident that in seizing Snyder created a new state office to cut red tape, streamline approvals grants, publishing papers and/or many would have you believe. this opportunity, the School of Med- and eliminate redundant rules. The state found ways to speed up providing patient care. Underproductive faculty mem- icine will emerge stronger and bet- processes to obtain a permit or accelerate economic development. Sadly, too many members of our bers use resources that would be far ter positioned for the future. Ⅲ Were there cases, like Flint, where public health and environmental protection checks were handled in a too cursory manner because of the push to cut red tape? State officials say no, but the Department of Envi- TALK ON THE WEB ronmental Quality and the Environmental Protection Agency are con- Re: Snyder hires outside legal Re: Foreign homebuyers hit ducting a review to find out what did lead to the regulatory breakdowns Reader responses to stories and that resulted in lead-contaminated water. counsel related to Flint crisis blogs that appeared on Crain’s No sympathy for greedy investors. The real problem may have boiled down to former DEQ director Dan Why do taxpayers have to pay for website. Comments may be edited They’re the ones driving the push to Wyant’s propensity to act as much as an economic development propo- his mistake? for length and clarity. foreclosure. nent as a regulator. Plus, consider that the DEQ, like other state depart- Edythe Ford Third act ments, has faced staff cuts and budget cuts over the past 20 years. ing ratepayers with the cost of up- Just like any other organization trying to do more with less, it’s con- Re: Schuette asks MPSC to limit dating infrastructure. Those costs Re: Conway MacKenzie rift ceivable that shortcuts were taken. DTE Energy request for rate hike should be borne by stockholders The state, like any other entity recovering from a crisis, must get back and/or taken from profits as a cost Two great businessmen. Hope this to the basics. Basic needs, including clean and safe drinking water, come Kudos to our attorney general. of doing business. can get worked out. first. It’s about time utilities stop burden- davecluley Bob Grabowski 20160307-NEWS--0007-NAT-CCI-CD_-- 3/4/2016 5:05 PM Page 1

CRAIN’S DETROIT BUSINESS // MARCH 7, 2016 7 House panel review revives battle over charity gaming rules

By Sherri Welch from $15,000 to $60,000, he said. tain any criminal or civil provision tences and heftier fines for viola- come to common ground on these [email protected] Absent from the legislation is (penalties) in it.” tions, along with some type of civil bills,” said Jennifer Smeltzer, legisla- The battle over the rules govern- mention of permanent poker rooms, In a Feb. 19 letter sent to charities penalties, such as a $5,000 fine. tive director for committee chair- ing the millionaire parties or poker something that’s been a point of con- hosting the games, Executive Direc- “If we were just talking the occa- man Rep. Ray Franz, R-Onekama. games many Michigan charities tention for the Gaming Control tor Rick Kalm said the Gaming Con- sional fundraiser at the church, Permanent poker rooms and host to raise money is back on. Board, Michigan Charitable Gaming trol Board plans to work with the tougher penalties might not be stricter violations are among the The House Regulatory Reform Association and area poker rooms. Michigan Legislature to consider needed,” Murley said. concerns being discussed, she said. Committee is reviewing two tie- “With our rules and more ac- stronger penalties to discourage “But when you have multiple She said Franz is confident of barred bills that would replace the countability, we’ve gotten the worst “unscrupulous people” from taking events at a location ... and when you finding common ground on some rules it took the Michigan Gaming out of it,” Murley said. advantage of nonprofits holding involve third parties ... there’s more of the issues. Control Board two years to put in “If this passes, it eliminates our millionaire parties. opportunity for fraud.” Last year, 1,055 Michigan chari- place after court battles with the ability to really control these events Currently, the Bingo Act stipu- The House panel is hearing testi- ties hosted 10,600 millionaire par- Michigan Charitable Gaming Associa- (and) ... makes it harder for the lates that a violation is a misde- mony and meeting with interested ties, according to the gaming board. tion and related parties. charity to manage.” meanor with a jail sentence of up to parties, including the Gaming Con- They reported $90 million in chip The Senate in December passed The Gaming Control Board does- six months and a fine of not more trol Board and the Michigan Chari- sales last year, compared to almost SB187, a bill introduced by Sen. Rick n’t support the legislation in its cur- than $1,000, Murley said. The gam- table Gaming Association and the $200 million in 2011 and less than Jones, R-Grand Ledge, in March rent form, he said. “It doesn’t con- ing board would seek longer sen- bills’ sponsors “to see where we can $8 million in 2004. 2015, as the Gaming Control Board was appealing a lower court’s ruling that it didn’t follow the correct process in enacting its rule set for the charity poker games. Two months later, in May, the Michigan Court of Appeals reversed the lower court’s ruling, effectively putting the Gaming Control Board’s rules back in place. Those rules, which have limited the ability for permanent poker rooms to profit from the games and required more charity representa- tives to be present at the millionaire parties, among other things, took immediate effect late in June 2015. In December, about five months after the gaming board’s new rules were affirmed by the Court of Ap- peals, the Senate passed SB187. Now SB187 and HB4293, spon- sored by Rep. Tom Barrett, R-Potter- ville, are before the House Regulato- ry Reform Committee. Together, the bills would amend the Traxler-McCauley-Law-Bow- man Bingo Act, to — among other things — replace the current mil- lionaire party rules with a subset of rules that the Gaming Control Board doesn’t believe will enable it to keep fraud and bad actors out of the games, said David Murley, deputy director for legal affairs and gaming regulation. The three main things the legisla- tion would do is eliminate the cur- rent rules, reduce the number of rep- resentatives a charity must have at the games from three to two and in- crease the amount of poker chips in play per game, per day, in some cir- cumstances (such as when a charity is hosting a game at its own venue and using its own people to deal)

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“WHAT IS DTE ENERGY DOING WITH RENEWABLES?”

DTE is Michigan’s biggest investor in renewable energy, and we see it as a growing part of energy generation. Since 2008, we’ve invested over $2 billion in renewable energy, including installing 250 wind turbines and building 26 solar arrays. Right now, 10% of the electricity we provide comes from renewables, enough to power 400,000 average homes with clean, zero emission power. As we continue to develop renewables, our customers can look forward to even more clean and reliable energy in the years to come. 20160307-NEWS--0009-NAT-CCI-CD_-- 3/4/2016 10:36 AM Page 1

SPECIAL REPORT: RENEWABLE ENERGY

GARY ANGLEBRANDT [email protected] Twitter: @anglebrandt The real issue in Lansing: Energy Corporate choice program investment

ny discussion of Michigan’s utilities and their priorities in renewable Amust include the state’s con- sumer choice program. When asked about their legislative energy preferences, both DTE Energy Co. and Consumers Energy Co. circle back to reli- on the rise ability and affordability. It is their obligation to provide elec- tricity not only at affordable prices, but in Michigan to show clear planning toward future demand. To them, the Electric Customer Choice program is the fly in the ointment. Michigan’s utilities aren’t actually monopolies. Current law forces them to concede 10 percent of the market to competitors. For the most part, these are trading outfits that don’t produce energy; they buy and sell it, aiming to offer better deals to their mostly com- mercial customers. But these competitors aren’t covered by the same reliability regulations the utilities are. That irritates the utilities. When large industrial plants, as competi- tors’ customers often are, repeatedly switch back and forth from utility to By Jay Greene competitor, they wreak havoc on [email protected] ment being negotiated between power planning. Going green has been a mantra Switch and Jackson-based Con- It’s “a fairness question,” DTE CEO from some companies for decades, sumers Energy Co. is piquing the Gerry Anderson said in a Feb. 10 con- but the business case for it is evident interest of other big energy users ference call. in a new wave of large corporate-led who may opt to strike similar Choice is on the table in the current investments in Michigan. deals, company officials tell Crain’s. legislative debate in Lansing. While some enable corporations to While details of the Switch-Con- Proposals have included forcing produce more renewable energy internal- sumers agreement aren’t expected until customers to commit to either a utility ly, others are aimed at improving overall en- summer, Adam Kramer, Switch’s execu- or a competitor for a designated length ergy efficiency. That’s as the major utilities tive vice president, said it will be a long- of time — decades, not years — mak- and state lawmakers debate the merits and term lease of 20 to 25 years and will re- ing competitors accountable for relia- downsides of the next round of state energy quire Consumers to build or contract bility planning, or scrapping the pro- legislation regarding renewable energy re- with an independent power producer for gram altogether, although this looks quirements. new renewable energy sources. less likely now. There are noteworthy case studies in the Under the agreement, Switch would pay Choice is the utilities’ ultimate tar- making on the issue. Consumer’s a fixed price for each unit of get in the legislative horse-trading, said A Nevada-based data center operator, Switch, electricity produced by renewable energy. Martin Kushler, a senior fellow at the made news in February when it said it would con- This kind of deal, which would be the first in American Council for an Energy-Efficient vert a pyramid-shaped building that once housed Michigan, could provide a hedge against future Economy who works out of Lansing. office furniture maker Steelcase Inc.’s research center price increases. Kushler spent the 1990s working in near Grand Rapids into a super green data center “We will get a flat price for the next 25 years,” the Michigan Public Service Commission that operates 100 percent on renewable power. Kramer said. “Tell me a commodity that stays flat and has been working on utility regu- And the groundbreaking power purchase agree- that long. We will pay a premium above the base lation issues here ever since. rate, and we will pay more now, but in the long-term When the state’s regulatory frame- our costs will be lower because everything goes up.” work was last overhauled, in 2008, the Besides saving money, Kramer said, Switch CEO utilities conceded on renewable ener- Rob Roy also wants to do what is “right for the envi- gy and energy efficiency mandates in ronment.” exchange for keeping Choice limited The contract will also require the Michigan Public to 10 percent of the market, he said. Service Commission to approve a so-called “green en- Now they are looking to get a better ergy rider tariff,” which could be the first approved deal: No mandates and changes to in Michigan. Choice, in exchange for acquiescence A green tariff is a utility program that allows cus- on a form of planning used in the in- tomers to purchase up to 100 percent of electricity dustry to forecast supply and demand. from renewable sources, primarily wind, solar, hy- (See related stories, Page 11.) droelectric and biomass. The various legislative topics on en- Nancy Popa, Consumer’s director of renewable ergy are often mashed together as one Data center operator Switch will open a super green facility that will energy, said it is likely an interim contract will pre- — but it’s the choice issue that is seem- operate on renewable power near Grand Rapids. SEE INVEST, PAGE 10 ingly the largest irritant to utilities. Ⅲ

DEBATING STATE’S ENERGY FUTURE, PAGE 11 • TAPPING INTO WIND, SOLAR, PAGE 12 • RENEWABLE ENERGY COMPANIES, PAGE 13 20160307-NEWS--0010-NAT-CCI-CD_-- 3/4/2016 9:52 AM Page 1

10 CRAIN’S DETROIT BUSINESS // MARCH 7, 2016 SPECIAL REPORT: RENEWABLE ENERGY

Last year, Consumers and DTE There also is interest for con- INVEST reached the state-mandated goal of sumer-oriented retail space when it FROM PAGE 9 producing more than 10 percent of comes to going green. Ikea has built cede any long-term power purchase their renewable energy by Dec. 31, the state’s largest solar array, a 977- agreement because of the nine to 18 said the PSC in a report last month. kilowatt project, at its Canton Town- months it will take to negotiate the While Consumers and DTE have ship store. And other retailers, such contract, gain final PSC approvals announced modest renewable en- as Target and Wal-Mart, have said and then build new renewable ergy investments for this year, the they intend to build more rooftop power production. community solar and wind projects solar. Popa said Consumer’s is working — totaling about 150 megawatts of George Heartwell, the former to design a green tariff to meet wind power and 107 megawatts of mayor of Grand Rapids, said the city Switch’s needs. Other customers solar — will amount to 20 percent is one-quarter of the way toward its have expressed interest in similar less than the average of the preced- 100 percent municipal renewable deals, she said. ing five years. During those years, energy goal by 2020. “We already have something in the investments averaged about 318 Construction is slated this spring place to allow Switch to become 100 IKEA megawatts per year. for a 3-megawatt, $18 million solar percent renewable through renew- Ikea’s expansion of solar panels at the Canton Township store may help it reach its goal But stepping up next with addi- array at the former Butterworth able energy credits,” Popa said. of being energy independent by 2020. tional renewable investments could Landfill superfund site, he said. The “They could join our Green Genera- be private companies across a facility, which would save the city tion program in the interim before much renewable energy would be signed the Corporate Renewable range of industry types and sizes, $200,000 annually, is a private-pub- they generate renewable energy.” required to power Switch’s planned Energy Buyer’s Principles to in- from GM and Steelcase to Black Star lic project with American Capital En- Detroit-based DTE Energy Co. also $5 billion data center in Gaines crease access to renewable Farms LLC winery. Also getting into ergy of Lawrence, Mass. expects to submit a similar green Township, near Grand Rapids. energy. the game: Municipalities such as “We will use that power on 38 energy rider to the PSC later this However, Switch’s data center in “Companies are very interested Lansing, Ann Arbor and Grand acres to power the wastewater year for its planned community Las Vegas, which also is about 2 mil- in how the Switch deal gets done,” Rapids, said Clark, who also is a treatment facility across the river, solar projects that could total up to lion square feet, uses about 180 said Liesl Clark, president of the founding principal with 5 Lakes En- rather than put it on the grid,” 100 megawatts in 2016, said Irene megawatts of electricity. This would Lansing-based Energy Innovation ergy, a Lansing consulting firm. Heartwell said. Dimitry, vice president of business require 120 wind turbines or Business Council. Herman Miller Inc., Amway Corp. Grand Rapids also is planning to and development with DTE. 720,000 solar panels (250 watts per Ready to catch fire and Dow Chemical Co. have been expand rooftop solar programs and “It will be a voluntary tariff,” panel) on 900 acres of land. able to purchase renewable energy use of geothermal power for many Dimitry said. “We have GreenCur- Switch is one of a growing num- Experts say private investment in from independent power producers city properties, he said. rents, where people buy renewable ber of companies in Michigan and renewable energy in Michigan over under Michigan’s retail open access Rob Threlkeld, GM’s global man- energy credits, but people want to nationally — General Motors, Apple, the next several years is poised for programs. And other companies on ager for renewable energy, said the point to an asset that provides Google, Facebook, Amazon and Whole major growth regardless of the an- the hunt for renewable energy Detroit automaker is poised this power. Our intent is to make it avail- Foods — that have pledged to be ticipated slowdown in investments sources to power Michigan opera- summer to increase its target of 125 able to all customer classes.” powered by 100 percent renewable by Consumers and DTE, the state’s tions include Google, Nestlé, Ford megawatts of renewable energy Kramer did not specify how energy. So far, 51 companies have two investor-owned utilities. Motor Co. and Whirlpool Corp. SEE NEXT PAGE

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CRAIN’S DETROIT BUSINESS // MARCH 7, 2016 11

SPECIAL REPORT: RENEWABLE ENERGY

FROM PREVIOUS PAGE production. GM has invested $67 million in 13 solar projects in New hearings expected to rekindle debate Michigan. “It is the right thing financially, and the right thing for the environ- Michigan’s energy future could be mapped out as part of work to update 2008 law ment,” said Threlkeld, who said GM has saved $80 million using re- By Lindsay VanHulle cently opted to suspend their ef- though there has been some discus- which some customers can leave a newable energy since the mid- Crain’s Detroit Business/Bridge Magazine forts to comply with the Clean sion about offering incentives for regulated utility to buy electricity 1990s. Because wind and solar LANSING — The debate about Power Plan rules until the issue is renewable energy and efficiency. from an alternative supplier. prices have dropped, Threlkeld Michigan’s energy future could be resolved in court. Michigan Attor- “Everyone wants a number. We Michigan’s two biggest electric said he expects GM to announce revived this spring, as lawmakers ney General Bill Schuette joined don’t think there needs to be a utilities, DTE and Jackson-based more renewable investments in working to update the 7-year-old dozens of other states in a lawsuit number.” Consumers Energy, say they hope the Michigan, Texas and Mexico. state policy bring amended bills claiming the new carbon rules are Instead, he said, utilities would Legislature will vote on energy bills Steelcase, meanwhile, one of back to the table. an EPA overreach. use a new process known as inte- by the end of the year. the largest furniture manufactur- New hearings could begin as The state needed to file its initial grated resource planning (See relat- Consumers is retiring seven coal ers in the nation, has met its 100 soon as this month in the Senate, plan by September. ed story, Page 12) that would consid- units by April 15, and building a percent renewable energy pledge where a package of bills has been in The decision to suspend work on er all components — from natural new natural gas plant can take three by equal amounts of production revisions, said Sen. Mike Nofs, R- the compliance plan, short of allow- gas to renewables to energy effi- to five years and cost nearly $1 bil- and renewable energy credit pur- Battle Creek, chairman of the Sen- ing a vendor to fulfill an ongoing ciency — to create an electric port- lion, utility spokesman Dan Bishop chases. John DeAngelis, energy ate’s energy committee. contract to model various energy folio that is competitive, reliable said via email. program manager, said many And in the House, Rep. Aric Nes- scenarios, is in large part because and flexible. “Lansing policymakers now have corporations like Steelcase are bitt, that chamber’s energy commit- the EPA required public comments The House package approved by the opportunity to ensure that looking to increase renewable en- tee chairman, has been working to that could become outdated or committee in 2015 would retain the Michigan’s rebounding economy ergy production. drum up support for a set of bills moot by the time a court rules, said 10 percent renewable mandate, but will have the power it needs by pass- But as Steelcase made deci- that moved to the floor last fall. Paul Proudfoot, director of electric replace the efficiency mandate with ing legislation that provides certain- sions to increase its renewable Restarting energy talks could sig- reliability with the Michigan Public an incentive-based program, said ty for the state’s regulated utilities to energy production, DeAngelis nal a willingness of lawmakers to Service Commission. Nesbitt, R-Lawton. build the next generation of clean said, Michigan was a poorer in- finish work updating Michigan’s “It kind of left us in a lurch,” he Debate is continuing among leg- power plants,” Bishop said. Ⅲ vestment than Oklahoma, where 2008 energy law before the legisla- said. “We’re kind of like where islators in the House about provi- Lindsay VanHulle: (517) 657-2204 wind production is much less ex- tive session ends in December, at everybody else is, I guess. We didn’t sions related to electric “choice,” in Twitter: @LindsayVanHulle pensive and the regulatory envi- which point the bills would have to expect a stay, and we got a stay.” ronment more welcoming. be reintroduced. Complying with the carbon rules Later this year, Steelcase will Doing so also would give the in- also is more complicated without begin purchasing 25 megawatts of dustry some certainty to plan for fu- an updated state energy policy. As it wind energy in a 12-year power ture energy needs, from reliability to stands today, Michigan expects to purchase agreement with Apex renewables — especially with un- be in compliance with Clean Power Clean Energy, which operates a certainty at the federal level now Plan emissions targets through at 150-megawatt wind plant in that the U.S. Supreme Court granted a least 2025. But state energy admin- Oklahoma. stay on the Obama administration’s istrators also based their early as- “For us, it didn’t make as much ability to enforce new rules requir- sumptions on current law. sense to invest in wind in Michi- ing carbon emissions reductions. That includes mandates that util- gan because of the economics,” It’s expected that federal courts will ities generate 10 percent of their DeAngelis said. decide the legality of the program. electricity from renewable sources DeAngelis said Steelcase is General uneasiness about the and reduce energy waste by 1 per- closely watching the power pur- fate of the U.S. Environmental Protec- cent of total electric sales. Both re- chase agreement and green tariff tion Agency’s Clean Power Plan — quirements would be eliminated RETHINK being negotiated between Switch which requires Michigan to lower under bills pending in the Legisla- and Consumers. its carbon emissions 31 percent by ture, a move favored by Republican “Michigan has come a long 2030 — “points out that Michigan lawmakers and Gov. Rick Snyder YOUR COMMERCIAL way in the renewable energy really needs to set its own energy but opposed by environmental and landscape. The prices continue to policy and not really rely on the fed- renewable industry groups. INSURANCE AND come down, and I expect that will eral government to make those de- Proudfoot, though, said he isn’t continue to encourage more de- cisions,” said John Austerberry, a concerned that the state would fall RISK STRATEGY. velopment,” DeAngelis said. Ⅲ spokesman for Detroit-based DTE short of its 2025 compliance target if Jay Greene: (313) 446-0325 Energy Co. the standards disappear. There’s Twitter: @jaybgreene State energy administrators re- enough pressure on coal, he said, that renewables will have to be part of the state’s electricity mix. “If I was a long-range planner for a utility, I would be trying to reduce my carbon,” Proudfoot said, adding that utilities will continue to retire aging coal-fired plants and have al- ready invested in new wind and solar projects. “We will have that renewable en- ergy in our portfolio going forward,” he said, “whether the act’s repealed or not.” Call Joe Haney That is one of the arguments law- President-Principal makers offer in support of ending Certified Risk Architect the mandates. Opponents, though, say utilities won’t have an incentive At the Sterling Insurance Group, we “RETHINK” every aspect of to pursue renewable energy if they’re not required to do so. our clients’ insurance strategies. Our proprietary Risk Path Process, In the Senate package, both the provides a diagnostic approach, investing our time and technical renewable and energy efficiency resources to identify and manage your risk. This proven process will standards would go away. Nofs said minimize claims and effectively reduce your insurance costs. he has been meeting with business and environmental groups, and will 888.525.7575 | 586.323.5700 | sterlingagency.com meet with Senate Democrats, on re- Commercial Insurance • Employee Benefits • Personal Insurance vised bill language. Even with the changes, “there still 2015 are no mandates in it,” Nofs said, 20160307-NEWS--0012-NAT-CCI-CD_-- 3/4/2016 11:10 AM Page 1

12 CRAIN’S DETROIT BUSINESS // MARCH 7, 2016

SPECIAL REPORT: RENEWABLE ENERGY State’s big utilities continue focus on wind,solar

By Jay Greene [email protected] A shift in energy Wind and solar are two focus areas for near-term capital invest- Michigan’s two major utilities are replacing their fleets of aging coal plants ment by both of Michigan’s big elec- with a mix of natural gas — as a primary “base load” fuel — and renewable tricity providers. energy sources. Consumers Energy Co. plans this DTE Energy Co. Consumers Energy Co. year a second solar initiative that will provide about 7 megawatts of Ⅲ DTE’s total electricity genera- Ⅲ Consumers’ total electricity- power with a mix of about 450 resi- tion is 12,400 megawatts. generating capacity is 8,700 dential and commercial customers Ⅲ DTE’s 630-megawatt Trenton megawatts. with 150 kilowatt projects or less. Channel plant in Trenton has three Ⅲ Consumers, well ahead of Last year, Consumer’s launched a units. One was closed last year and DTE in its plant closures plan, will 10 megawatt community solar pro- another is set to close in April. No shut three of its remaining five coal gram named Solar Gardens with other closures have been an- plants in April, a total of seven units more than 400 subscribed nounced. Of DTE’s four other coal with combined capacity of about customers. plants, the 523-megawatt River 950 megawatts. According to the The project so far includes 3 Rouge and the 1,367-megawatt St. company, that will make it the sec- megawatts at Grand Valley State Uni- Clair are the oldest, both having ond-best utility in the country at re- versity and 1 megawatt at Western been built in the 1950s. ducing coal. It currently does not Michigan University, said Nancy Ⅲ DTE Electric last year bought a plan to shut down any more coal Popa, Consumer’s director of re- 732-megawatt plant in Carson City plants after that. newable energy. for $241 million from LS Power Group Ⅲ Consumers is building a 100- Last fall, Consumer’s signed a and a 350-megawatt plant in East megawatt wind farm in Michigan’s contract with Geronimo Energy to China Township for $69 million Thumb, its biggest wind farm to date. purchase power from a 100- from DTE’s Power & Industrial divi- (See story, left.) In the final quarter of megawatt wind farm in Huron sion on the non-utility side of its last year, it closed on a deal to buy a County that will produce energy by business. 540-megawatt natural gas plant in its the end of 2017. The Apple Blossom ducer with 26 utility-owned going forward with coal plants retir- Ⅲ It expects to spend $1.2 billion hometown of Jackson for $155 mil- Wind Farm project will add another solar arrays. ing (in early 2020) and the (federal) on new electricity generation by lion from AlphaGen Power LLC and 20 percent to the utility’s 500 “We’ve got approval for up to 50 Clean Power Plan” regulations 2020 and eventually $8 billion in DPC Juniper LLC. megawatt state-mandated produc- megawatts of solar projects, with looming. total to replace coal. In all, it plans Ⅲ The company plans to spend tion target. most of it going into Lapeer,” Dimit- By DTE’s estimation, 60 percent to shut down 3,500 megawatts of $1.7 billion in the next 10 years on DTE Energy Co. this year plans to ry said. of Michigan’s entire coal-based gen- coal-based capacity by 2030. new capacity. fund up to 100 megawatts of addi- Dimitry said DTE also plans a 50- eration will be in play. Two solar arrays are set to open Ⅲ Consumers will make up for the tional community solar projects, megawatt wind farm in Huron In all, the changes will affect 30 in spring, totalling 45 megawatts loss of capacity from the closures depending on customer interest, County called the Pinnebog Wind percent of the state’s total fleet, in- of generating capacity. DTE bills through multiple tweaks to mix and another 50 megawatts in wind, Project that will power more than cluding those of municipal utilities one of them, a 30-megawatt array sources, including adding more nat- said Irene Dimitry, DTE’s vice presi- 22,000 homes. and other small players. Ⅲ being built in Lapeer, as the largest ural gas and renewables, as well as dent of business and development. “It makes sense to have renew- Gary Anglebrandt contributed utility-owned array east of the Mis- buying power from the market. DTE is the largest solar power pro- able and natural gas in our portfolio to this story. sissippi River. Gary Anglebrandt What’s an IRP and why are utilities all for them? Here’s an explanation

By Gary Anglebrandt grated” into an overall resource The utilities say an IRP gives can include renewable sources, the on the IRP process would be able to Crain’s Detroit Business plan. Utilities do them internally them the flexibility they need to ad- current proposals don’t make utili- because it would be public and In the legislative debate in Lans- but can be forced by regulation to dress these many pressures, all on ties use renewable energy, as a transparent, spokespeople for DTE ing over revamping the state’s ener- do them externally as well. one platform, in a way that allows mandate does. Nor are mandates and Consumers said. People with gy regulations, Republican lawmak- The utilities traditionally have them to show how pushing one reg- (or “renewable portfolio standards,” an ax to grind, be they from an in- ers are proposing replacing not been in favor of IRPs, or at least ulatory side causes another to bend. in the jargon) and IRPs mutually ex- dustrial company or environmental renewable energy mandates with not when they’re imposed by the They don’t mind rules; they just clusive. Many states actually have group, would be welcome, though something called an “integrated re- government. While they conduct don’t want the rules considered in both. Baking standards into an IRP it’s unclear how often this process source planning process.” these internally for their own plan- isolation. is another option. would occur. The state’s two major utilities, ning, they haven’t had to share This allows for They also look suspiciously on “The Michigan Public Service Commis- DTE Energy Co. and Consumers Energy them with the public. “the best solu- the IRP process itself, since it neces- sion has a statutory responsibility to Co., support this plan, while renew- Now they are all for IRPs. Why? tions at the time sarily begins with the utilities. Utili- act in the best interests of Michigan able energy promoters see the loss They say they need flexibility to we need to make ties are the ones with the frontline residents and businesses. That re- of a straightforward 10 percent re- meet the many regulatory obliga- those decisions,” view of supply, demand and re- sponsibility continues going for- newable mandate — and in its tions they face on several, often said Irene Dimit- sources, and so it is they that feed ward,” said Dan Bishop, Consumers place comes murky jargon. conflicting, fronts: They must keep ry, DTE’s vice data into the IRP. To supporters of Energy’s head of media relations. So what is an IRP? rates low for customers, meet re- president of mandates, that looks like a lot of DTE says its investments in re- newable energy mandates, meet Irene Dimitry: This business plan- room to fudge numbers. newables speak for themselves — Integrated resource plans came energy efficiency mandates, and allows for the best ning and devel- “(Utilities) tweak assumptions it’s building what it bills as the about in the 1980s to keep electricity make detailed plans showing how solutions. opment. and can get the result they want to largest utility-owned solar array this bills low while strengthening the re- they will keep the lights on. Reliability and see,” said Martin Kushler, senior fel- side of the Mississippi River — and liability of the grid — which is to say, This in turn requires predicting affordability — the very things IRPs low at the Washington, D.C.-based the big fleet overhaul means it has cut costs but don’t cause blackouts. demand, supply and markets sever- are designed to address — are the American Council for an Energy-Effi- no choice but to increase renew- When asked to show how they al years out, which the utilities al- foremost regulatory obligations on cient Economy, which studies IRPs ables along with natural gas. would capably supply energy in the ready are struggling to do. The grid’s utilities’ minds. Promoting renew- and is funded by the full spectrum Besides the practical necessity of near future, utilities would simply manager, Midcontinent Independent ables takes a backseat to these pri- of parties interested in energy, from closing its old coal plants, DTE count how many more plants they System Operator Inc., projects a ca- orities. The utilities supported the the U.S. Environmental Protection needs a diversified portfolio to meet planned to build. IRPs allowed pacity shortfall in 2016-2017 for the mandate when it was created in Agency and conservationist groups its various regulatory obligations, them to take into account other Lower Peninsula. 2008 but now say renewables have to utilities and manufacturers, in- not to mention the desires of cus- tools, especially “demand-side” en- Added to all this are federal emis- been supported well enough since cluding DTE Energy and the Michi- tomers who want more renewables, ergy-efficiency measures to cut en- sions rules on carbon and mercury, to stand on their own. gan Environmental Council. Dimitry said. Consumers makes ergy usage, but also supply-side which only will become more strin- ‘No mandate needed’ Not to worry, the utilities say. similar arguments. measures like buying power from gent in the years ahead, and a mas- They are committed to renewables “We didn’t need a mandate to de- other sources. sive overhaul of the utilities’ fleets of The problem pro-mandate peo- now and moving forward. cide we’re going to do more,” All these options then are “inte- aging power plants. ple have with this is that while IRPs Anyone who wants to weigh in Dimitry said. Ⅲ 20160307-NEWS--0013-NAT-CCI-CD_-- 3/4/2016 12:21 PM Page 1

CRAIN’S DETROIT BUSINESS // MARCH 7, 2016 13 Michigan Renewable Energy Companies Listed alphabetically

AEP Indiana Top local executive: James Top local executive: Dean ■ 121 E. Front St., Traverse City Michigan Solar ■ 2650 Schust Road, Saginaw Michigan Power Doull, senior vice president Berden, owner 49684 Solutions LLC 48603 ■ 3550 Green Court, Ann Arbor ■ 4040 Mushroom Road, ■ (231) 935-3659 ■ (707) 709-5351 Renewable portfolio consists of Designs, sells and installs 48105 Snover 48472 solar, wind and hydroelectric ■ heritagewindenergy.com renewable energy systems for ■ suniva.com ■ power. Michigan locations (734) 665-1000 ■ (810) 404-1933 homes, businesses, schools and include the Cook Nuclear Plant ■ bv.com ■ dbsolarllc.com local municipalities using local in Bridgman and service centers ICR Services materials and labor. Ventower in Benton Harbor and Three Industries Offers a comprehensive range of Headquarters: Commerce Rivers, and external affairs office Boyce Hydro DTE Energy Co. engineering services including Township Wind turbine tower supplier in Lansing. Power LLC Under the non-utility operations robotics, field service solutions, Top local executive: Mark Headquarters: Monroe ■ Headquarters: Fort Wayne, of their Power and Industrial and electronic and mechanical Hydroelectric plants Hagerty, founder Ind. Projects group, DTE sells repair. Top local executives: Gregory Headquarters: Edenville ■ 509 Sherbrooke St., Adanin, president and CEO; ■ electricity from renewable Headquarters: Warren Top local executive: Commerce Township 48382 Glover Donohoe, plant manager Gregory Clark, manager of state Top local executive: Lee energy projects. Mueller, co-member manager Top local executive: Paul ■ (248) 520-2474 ■ 111 Borchert Park Drive, governmental and Headquarters: Ann Arbor Gutierrez, president; Scott environmental affairs ■ 6000 S. M-30, Edenville ■ Monroe 48161 Top local executive: Gerard Reiter, CFO/VP of operations michigansolarsolutions.com 48630 ■ (734) 682-4000 ■ 110 W. Michigan Ave., Lansing Anderson, chairman and CEO ■ 28601 Lorna Ave., Warren 48933 ■ ■ ventower.com (989) 698-3161 ■ 1 Energy Plaza, Detroit 48226 48092 Nova Consultants ■ (800) 311-6424; Lansing: ■ (800) 235-8000 ■ (586) 582-1500 Inc. (517) 367-1242 CMS Energy Corp. ■ dteenergy.com ■ ICRServices.com Engineering, energy and Walker-Miller ■ IndianaMichiganPower. Energy provider. Nine percent of environmental company Energy Services LLC com power supplied comes from Hemlock Inovateus Solar MI Headquarters: Novi Energy efficiency services wind, solar, hydro and biomass. Semiconductor provider. Designs, builds, supplies and Top local executive: Sunil Applied Energy Headquarters: Jackson Group invests in solar solutions Agrawal, president Headquarters: Detroit Technologies Top local executive: John A provider of polycrystalline Headquarters: South Bend, ■ 21580 Novi Road, Suite 300, Top local executive: Carla Provider of solar mounting Russell, president and CEO silicon and other silicon-based Ind. Novi 48375 Walker-Miller, president and CEO solutions delivers engineering, ■ products used in the 1 Energy Plaza, Jackson 49201 ■ (248) 347-3512 ■ 2990 W. Grand Blvd., Suite manufacturing and installation manufacturing of Top local executive: Thomas ■ (800) 477-5050 310, Detroit 48202 services for utility and semiconductor devices and Kanczuzewski, president ■ novaconsultants.com ■ ■ commercial solar projects. cmsenergy.com solar cells and modules. ■ 708 Sherman Lane, (313) 366-8535 ■ Headquarters: Clinton Headquarters: Hemlock Cassopolis 49031 Novi Energy LLC www.wmenergy.com Township ■ (574) 485-1400 Cresit Energy LLC Top local executive: Denise An energy consulting and energy Top local executive: Aaron Beachy, president ■ inovateus.com About this list Faust, vice president of business Provides energy assessments infrastructure project ■ development and energy-efficient product 12334 Geddes Road, Hemlock development company. This directory is composed of design and sales in the metro 48626 renewable energy companies ■ 22367 Starks Drive, Clinton McNaughton- Headquarters: Novi Detroit area. ■ (989) 301-5000 with a presence in Michigan. Township 48036 McKay Electric Co. Top local executive: Anand Information is provided by the ■ Headquarters: Wyandotte ■ hscpoly.com Gangadharan, president (586) 466-5073 Supplies solar panels and other companies and the company Top local executive: Robert ■ aetenergy.com electrical components. ■ 23955 Novi Road, Novi 48375 websites. It is not a complete Kulick, president-owner Heritage Headquarters: Madison ■ (248) 735-6684 listing but the most ■ 4082 Biddle Ave., Wyandotte Sustainable Energy Heights comprehensive available. Black & Veatch 48192 Companies are listed with the Operates wind farms in Rubicon Top local executives: Donald Engineering, procurement and ■ (734) 283-4595 Suniva address and top executive of Township, McBain and Garden Slominski Jr., president and CEO; construction of renewable and their main Michigan office. To ■ cresitenergy.com Township. Mark Ferda, renewable energy Manufacturer of high-efficiency alternative-energy projects. be included on this list, contact account manager crystalline silicon photovoltaic Headquarters: Traverse City Sonya Hill, data editor, Headquarters: Overland Park, solar cells and high-power solar ■ 1357 E. Lincoln Ave., Madison [email protected] or call Kan. DB Solar LLC Top local executive: Marty modules. Heights 48071-4134 (313) 446-0402 Solar design, sales and Lagina, founder and chief ■ Headquarters: Norcross, Ga. installation company executive; Craig Tester, founder (248) 399-7500; renewable and Rick Wilson, VP of energy: (734) 645-6005 Top local executive: John Headquarters: Snover operations ■ mc-mc.com Baumstark, CEO

Lower solar prices,tax credits entice homeowners,small businesses

By Jay Greene ing into one of the more active re- to drop, making both renewable ings go to our bottom line.” grow annually at about 30 percent [email protected] newable markets, where 30 or more sources cheaper than building new Besides Black Star, a number of as long as the federal tax incentive is Homeowners and small busi- private homeowners have installed gas or coal-fired power plants. other wineries are installing solar, at play. nesses continue to use federal tax solar panels in an effort to reduce At winery Black Star Farms LLC, Clark said, including Chateau Chan- Last summer, Chart House in- credit incentives and existing net the highest electricity costs in Michi- CFO Michael Lahti said the Traverse tal Winery, Good Neighbor and Round stalled a 520 kilowatt system at Hol- metering rules to make private in- gan at 23 cents per kilowatt, said City-based business’ 53 kilowatt, Barn Winery. land-based Agritek Industries, which vestments in rooftop solar. Melissa Davis, executive director of 204-panel solar array recently came Under Michigan law, 50 percent provides about 33 percent of the fa- Mark Hagerty, president of Michi- the Houton Energy Efficiency Team. online with a goal to produce about of renewable energy must be built cility’s power. gan Solar Solutions, said he is “keep- “When prices skyrocketed after 15 percent of its annual electricity by utilities and 50 percent pur- The Holland Board of Public Works, ing very busy with homeowners (a) coal plant closed, everybody usage. It purchases electricity from chased. This mix caused a number which last year shuttered its coal- and small companies that are will- started installing solar,” Davis said. Cherryland Electric Co-Op in Grawn. of independent power producers, fired plant, also has been increasing ing to make the investments, lower Besides the 30 percent federal tax “We have five different buildings, including Apex Clean Energy and its renewable energy production to their electricity costs and recoup credit for small wind and solar and our goal is to be as sustainable Chart House Energy LLC, to enter the about 20 percent of its electricity their investments in seven to through Dec. 31, the Michigan Public as possible with energy costs,” said market in Michigan. needs for its 28,000 customers. Ⅲ eight years.” Service Commission said in a report Lahti. “Our project will be paid off in Chart House Energy CEO Rob Jay Greene: (313) 446-0325 The Upper Peninsula is develop- that wind and solar costs continue seven years, and afterward the sav- Rafson said he believes solar will Twitter: @jaybgreene 20160307-NEWS--0014-NAT-CCI-CD_-- 3/4/2016 10:40 AM Page 1

14 CRAIN’S DETROIT BUSINESS // MARCH 7, 2016 75-mile trail nearly ready to blaze a path through Downriver

By Marti Benedetti Michigan’s Upper Peninsula. [email protected] Roughly two-thirds of the trail is For the past several years, down- complete. town Detroit’s riverfront has hogged The trail has evolved over 10 all the attention. This year, Wayne years of initiatives, alliances and co- County’s Downriver riverfront may operation from officials in the 21 have its turn in the spotlight. cities that make up Downriver. Nearly ready for its debut is a 75- Many officials see the trail as a way mile trail from Trenton to the inter- to provide easy section of I-94 and I-275 in Romulus. access to fitness At the Trenton end of this trail is a and recreation new dock and fishing pier and a vis- for residents and itor’s center at the Detroit River Inter- visitors. national Wildlife Refuge. On 44 acres, Recently, funding was approved owned by Wayne to complete the mile of unfinished County, a $3.125 trail in Trenton between Elizabeth million dock and Park and the refuge, said John Hartig, John Hartig: “We fishing pier at manager for the refuge in Grosse Ile. want to develop the the refuge is Along the trail, both wooded and next generation of under construc- paved, are opportunities to hike, conservationists.” tion and expect- bike, kayak and fish, said Anita ed to be completed in December, Twardesky, community outreach Hartig said. The Great Lakes Educa- manager for the Riverside Kayak Con- tion Program of Michigan Sea Grant’s nection in Wyandotte and president ship, the Clinton, will dock there of the Downriver Linked Greenways Ini- and provide wildlife education. tiative, a regional effort to promote Also being built on the site is a EC KORNEFFEL CO. nonmotorized transportation $7 million visitors’ center called the A 75-mile trail from Trenton to the intersection of I-94 and I-275 in Romulus is nearly ready for its debut.At the Trenton end of this trail is Downriver. Refuge Gateway, which is owned a new dock and fishing pier, expected to be completed in December. Sections of the trail intersect with and will be operated by the U.S. Fish four Huron-Clinton Metroparks — and Wildlife Service. Due to be com- that Downriver has internationally are placing a priority on doing this marsh, a nature and bookstore, two Lower Huron, Willow, Oakwoods pleted in spring 2017, the center is recognized natural resources and (education) in urban areas. We are classrooms, and two outdoor pa- and Lake Erie. And a good stretch of on the Humbug Marsh, Michigan’s outdoor recreation. working hand in hand with the De- tios. “The (environmentally sensi- the trail is part of the Iron Belle Trail, only Wetland of International Im- “With this center, we want to de- troit Riverfront Conservancy.” tive) building will have all kinds of a 1,259-mile hiking trail and a 774- portance and one of 37 in the coun- velop the next generation of conser- The LEED-certified visitor center features that will teach people how mile bicycling route from Belle Isle try. Hartig said the designation is vationists,” he said. “Historically, will provide educational informa- to live sustainably,” he said. State Park in Detroit to Ironwood in important because it showcases we’ve done very little, but now we tion about the refuge and the The development is on the site of a former Chrysler plant that has sat vacant for 15 years. Hartig said that in the spring 10 million walleye spawn in the refuge area, attracting a large number of boaters who come to fish. With the new dock, they won’t need a boat; they can fish for free from the dock. Energy Law Experience Twardesky said designing signs and branding for the trail is in progress. Plans also call for bike ® racks, trash containers and bench- es. Trail leaders would like to add signs that explain the history of vari- In Your Corner. ous sites and cities. Still unfinished is the part of the trail that connects Detroit to Trenton. “There are still some dicey places,” Twardesky said. “But people want the urban experience. They want to see how steel is made.” A portion of the coastline still has steel and foundry operations, such as the DSC McLouth Steel Plant, for- merly McLouth Steel, in Gibraltar. Laura A. Chappelle Bruce Goodman Timothy J. Lundgren Toni L. Newell Eric J. Schneidewind The greenways initiative, with [email protected] [email protected] [email protected] [email protected] [email protected] funding from the U.S. Department of Natural Resources, hired the Living Varnum’s energy experience includes: Lab, a landscape architecture studio in Detroit, to do a planning assess- Ŷ Advanced Energy Systems Ŷ Hydroelectric Power Ŷ Regulatory Proceedings ment of the hiking portion of the Ŷ Biomass Energy Ŷ Legislation and Policy Development Ŷ Solar Energy 25-mile Iron Belle Trail from River Rouge south to Flat Rock. Ŷ Conventional Electric Energy Ŷ Oil and Gas Ŷ Waste-to-Energy Leah Groya, Living Lab planner Ŷ Wind Energy and principal, said they are devel- Contact our Energy Team for your legal needs at www.varnumlaw.com. oping branding for the trail, which crosses several major streets. “The goal is to better understand the conditions of the route through In Your Corner.® the Downriver communities,” Legal Experience she said. “We’re looking at how much in- frastructure along the trail is in Ŷ Detroit Ŷ Novi Ŷ Grand Rapids Ŷ Kalamazoo Ŷ Grand Haven Ŷ Lansing Ŷ Ann Arbor Ŷ Hastings place and to provide design ele- ments for the road crossings.” Ⅲ 20160307-NEWS--0015-NAT-CCI-CD_-- 3/4/2016 10:39 AM Page 1

CRAIN’S DETROIT BUSINESS // MARCH 7, 2016 15

Kelly and Michael.” Sound Board, Contact: (313) 963-8547; email: Detroit. $495 general; $895 VIP. [email protected] Contact: Jordan Broad, phone: (248) 206-7065; email: DEC Presents Dinesh Paliwal. 11:30 CALENDAR [email protected] a.m.-1:30 p.m. May 9. Detroit Eco- nomic Club. Dinesh Paliwal, chair- WEDNESDAY March 16. Marketing & Sales Execu- ecutive L. Brooks Patterson is the hon- DEC Presents Denise Morrison. 11:30 man, president and CEO of Harman MARCH 9 tives of Detroit. Panelists: Jacques orary event chairman. San Marino a.m.-1:30 p.m. April 27. Detroit Eco- International, is the speaker. Cobo JVS Trade Secrets. 6-9:30 p.m. JVS. Driscoll, owner of Green Dot Stables, Club, Troy. $32; $250 for a table of nomic Club. Denise Morrison, pres- Center. $45 DEC members, Speaker is fashion designer Linda Johnny Noodle King and the Huron eight. Contact: Nancy Maurer, ident and CEO, Campbell Soup Co., is $55 guests of DEC members, Schlesinger-Wagner, founder of Skin- Room in Corktown/Mexicantown; phone: (248) 952-6880 ext.2; email: the speaker. Westin, Southfield. $45 $75 nonmembers. nytees, a company that has grown Nick Gorga, founder of Hatch Detroit; [email protected]. DEC members, $55 guests of DEC Contact: (313) 963-8547; from selling in a single shop to an Jon Goldstein, owner of Maple Theatre; members, $75 nonmembers. email: [email protected] $8 million clothing line sold in James Van Dyke, partner in the Rox- DEC Presents Peter Karmanos. 11:30 stores, online and on QVC. Temple bury Group and part owner of the a.m.-1:30 p.m. April 14. Detroit Eco- Beth El, Bloomfield Hills. $150. Aloft Hotel in the David Whitney nomic Club. Karmanos is the prin- Contact: Judy Strongman, phone: Building. Moderated by Nancy Ben- cipal owner/governor and CEO of (248) 233-4213; email: ovich Gilby, Ehrenberg director of en- the Carolina Hurricanes, as well as the [email protected] trepreneurship, University of Michigan. chairman and co-founder of Mad- Aloft Hotel, Detroit. $45 members; Dog Technology. The Townsend Hotel, THURSDAY $60 nonmembers. Birmingham. $45 DEC members, MARCH 10 Website: msedetroit.org $55 guests of DEC members, $75 Cybersecurity Conference. 7 a.m.-2 nonmembers. Phone: (313) 963- p.m. Detroit Regional Chamber. Ex- People, Profit, Progress Conference. 8 8547; email: [email protected] perts from government, law en- a.m.-4 p.m. March 17. American Soci- forcement and the private sector ety of Employers. ASE’s 13th annual Women’s Power Breakfast. 7-9 a.m. will cover topics to help businesses conference and workshops. Subur- April 21. Gleaners Community Food navigate the National Institute of ban Collection Showplace, Novi. Bank. Brings together more than Standards and Technology cyberse- ASE members $239; nonmembers 600 of the area’s most powerful curity framework. Detroit Golf $299. Contact: Linda Yesh-McMas- women. Co-chairwomen are Faye Club. $75, $25 for chamber mem- ter, phone: (248) 223-8002; email: Nelson, vice president public affairs, bers. Contact: Marianne Alabastro, [email protected] president, DTE Energy Foundation; phone: (313) 596-0479; email: Andra Rush, chairman and CEO, Rush [email protected] Pancakes & Politics. 7:30-9:30 a.m. Trucking Corp.; Nancy Schlichting, CEO, March 17. Michigan Chronicle. Henry Ford Health Systems. Eastern Management Techniques from the Breakfast with nearly 400 policy Market Shed 3. $120 individual; Best Ship in the Navy. 11:30 a.m.-1:30 and decision makers. Detroit Ath- $1,000 table. Contact: Suzette Ho- p.m. Detroit Economic Club. Mike letic Club. $100. Phone: hendorf, phone: (313) 923-3535; Abrashoff tells how he took com- (313) 963-5522; website: email: [email protected] mand of the worst-performing ship michronicle.com/events in the U.S. Navy’s Pacific fleet and 12 DEC Presents John Noseworthy. 11:30 months later it was the best ship in 2016 Great Lakes Business Intelligence & a.m.-1:30 p.m. April 21. Detroit Eco- the Navy using the same crew. Big Data Summit. 8 a.m.-5 p.m. March nomic Club. Noseworthy is presi- Westin Book Cadillac, Detroit. $45 24. WIT Inc. Program will feature- dent and CEO of the Mayo Clinic. DEC members, $55 guests of DEC case studies, interactive demos, op- Cobo Center, Detroit. $45 DEC members, $75 nonmembers. portunities to meet with top members, $55 guests of DEC mem- Corporate Phone: (313) 963-8547; email: providers, and chances to network. bers, $75 nonmembers. Facility Graphics [email protected]. The Somerset Inn Hotel, Troy. $159. Phone: (313) 963-8547; email: That Inspire Contact: Amanda Mansour, phone: [email protected] UPCOMING EVENTS (248) 641-5900 ext 244; email: DEC Presents Trevor Fetter. 11:30 [email protected]; website: Fuel: Detroit. 9 a.m.-5 p.m. April 21. a.m.-1:30 p.m. March 14. Detroit www.greatlakesbisummit.com Fuel Leadership. Speakers include Economic Club. Fetter, chairman Mark Kelly, commander of Space and CEO of Tenet Healthcare, Taste of Leadership Oakland. 4:30-7 Shuttle Endeavour’s final mission; speaks. Westin Book Cadillac, De- p.m. March 24. Leadership Oakland. authors Marcus Buckingham and Mitch troit. $45 DEC members, $55 This event promotes business-to- Albom; Jacques Panis, president, Shi- guests of members, $75 nonmem- business networking as well as per- nola; Martha Stewart; Sarah Kay, bers. Website: econclub.org sonal and professional connection founder, co-director, Project Voice; opportunities. Oakland County Ex- Michael Strahan, co-host, “Live With 7Cs Best Practices: Tactical meetings with PCS Insight. 8:30-10 a.m. March 15. Automation Alley. Pavan Muzum- dar, managing director of PCS In- sight and creator of the organiza- tional management system iCube, will discuss why most meetings are ineffective and what to do about it. Automation Alley, Troy. $20 mem- ber; $40 nonmember; $30 walk-in member; $50 walk-in nonmember. Contact: (800) 427-5100; email: Entryways, Lobbies, Common Areas, Training Rooms, [email protected] Conference Rooms, Offices and much more. The Next Generation Economy: How We do more than provide graphic branding solutions that attract and Will it Affect Your Brand? 5-8 p.m. inspire. Our mission is to evoke a unique emotional experience and leave a lasting impression on our partners and their clients. As a national leader in large format graphics, we set the benchmark for quality. From Calendar guidelines. Visit our passionate team of creative designers, expert printers, and crainsdetroit.com and click “Events” professional installers to our world-class facility and state-of-the-art near the top of the home page. technologies—we make you look remarkably good. Then, click “Submit Your Events” “As part of the Cohen & Company team, we deliver from the drop-down menu that will the strength and depth of more than 400 professionals appear. Fill out the submission form, to help private companies seize opportunity.” then click “Submit event” at the bottom of the page. – Mike Lorenz, Partner

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16 CRAIN’S DETROIT BUSINESS // MARCH 7, 2016

action were not disclosed. Attor- included to provide NCAR with an veiled a new corporate brand, PEOPLE: DEALS & neys Title Agency has established a ICE XA supercomputer with the which includes a redesigned web- SPOTLIGHT national relocation division, which ability to perform 5.34 quadrillion site and logo. Telephone: (248) 544- will offer employee relocation title calculations per second at three 1568. Website: innovativelg.com. Ex-bankruptcy judge DETAILS and services, and operate national- times the energy efficiency of its to run Detroit schools ly. As part of this transaction, Attor- predecessor. Websites: altair.com, NEW PRODUCTS ACQUISITIONS & neys Title Agency will add three lo- sgi.com, ncar.ucar.edu. Jet’s America Inc., Sterling Heights, Steven Rhodes, the retired MERGERS cations and retain a majority of operator of Jet’s Pizza, has intro- federal judge who handled De- Northville Crossing Restaurant, Stewart’s former Michigan employ- EXPANSIONS duced gluten-free pizza to its troit’s bankruptcy, was named Northville, owned by Alex and Effie ees. Websites: atatitle.com, SVS Vision Optical Centers, Mt. menu. Website: jetspizza.com. last week to Alexandris, has been acquired by stewart.com. Clemens, has opened optical cen- run the trou- Matt and Jen Amin, owners of ters at 36824 Van Dyke Ave., Sterling STARTUPS bled Detroit Omelette & Waffle Café in Plymouth CONTRACTS Heights, and 18835 Traditions The Hold It Co., Franklin, a company Public and reopened as the Omelette & Altair Engineering Inc., Troy, Drive, Northville. Telephone: (586) established by Suzanne Lucas Schools. Waffle Café. Website: announced that its workload 276-9300, (248) 305-1600. Website: Binder and Michele Harris to Rhodes, www.omelettewafflecafe.com. management software PBS svsvision.com. patent, produce and market the appointed as Professional will be installed for the Permit Pal, which uses a patented DPS transi- Attorneys Title Agency LLC, Farming- new Silicon Graphics International MOVES Velcro system to attach parking tion manag- Steven Rhodes ton Hills, has acquired the Michi- Corp. supercomputing system Innovative Learning Group Inc. has tags, handicapped permits or other er by Gov. gan direct operations of the Stewart destined for the National Center for moved from 514 E. 4th St., Royal official cards to vehicle windows. Rick Snyder, Title Co. in Livonia, Holland and Atmospheric Research, Boulder, Oak, to 1130 Coolidge Highway, Telephone: (248) 855-4458. Web- will oversee the school dis- Sterling Heights. Terms of the trans- Colo. PBS Professional was Troy. The company has also un- site: thepermitpal.com. trict’s finances and operations, but he will appoint an interim superintendent as soon as ADVERTISING SECTION possible to handle academics, The Associated Press reported. A clause in Rhodes’ contract MANUFACTURING sets a June 1 deadline for ac- tion by the Legislature. The contract otherwise runs through Sept. 30. DTE promotes execs to prep for Kurmas’exit Detroit-based DTE Energy Co. announced several promotions HUMAN RESOURCES and execu- tive changes due to the Kevin Clinton and Matt Leinonen pending re- Director of Partnership Planning and Director of Central Merchandise Planning tirement of longtime Carhartt, Inc. DTE execu- tive Steve As the director of partnership planning, Clinton will work to align the account planning Kurmas. Steve Kurmas team with the strategic account team and the regional account team to further support Effective Carhartt's growth objectives. Clinton joined Carhartt in 2012 as a member of the April 4, Jerry finance department where he was involved in numerous projects that helped prepare Norcia, presi- him for his new role. dent and Jill Zientarski COO of DTE Human Resources Manager Leinonen will play a critical role in shaping the strategic direction of the overall Electric and Clear Rate Communications Inc. merchandise planning strategy. Leinonen has been a member of the Carhartt team Gas Storage since 2014 and had previously served as the manager of merchandise planning and the and Pipelines, Jill Zientarski joins Clear Rate senior manager of merchandise planning. Prior to joining Carhartt, Leinonen held Communications as Human Resources has been leadership roles in merchandise planning at Abercrombie & Fitch, was the director of named presi- Manager. She is responsible for strategic brand development at Finish Line, and was a senior business analyst at Target. planning, policy design, talent acquisition and Jerry Norcia dent and retention, employee development and COO for DTE administration. Previously, Jill established the Energy, succeeding Kurmas, HR department at DES-CLAW, following who will become vice chairman several years of management at Target. She is ACCOUNTING LAW and will retire next year after 38 completing her Master of Training and years with DTE. Norcia joined Development degree at Oakland University Jose P. Sancen DTE Energy in 2002. Sean P. McNally Trevor Lauer and is a member of Detroit Young Senior Associate , senior vice pres- Partner / Practice Group ident of distribution opera- Professionals and the Society for Human The Siegfried Group Leader Resource Management. tions, will succeed Norcia as Jose is an exceptional Kotz Sangster Wysocki PC president and COO of DTE accounting and finance Sean McNally has been Electric, the company’s largest professional who joins the appointed Leader of the business unit. Lauer joined ACCOUNTING Detroit Market as a Senior Associate. He Construction Practice Group at Kotz Sangster. DTE Energy in 2005. comes to Siegfried from PwC, where he In addition to this role, he serves on the firm's gained two and a half years of audit Board of Directors and as its General Counsel. Jackson new head of WSU Christopher King, CPA experience with a primary focus in the McNally is also responsible for Board oversight undergrad admissions Senior Associate Consumer and Industrial Products and Power for the firm's operations in Grand Rapids. He The Siegfried Group and Utilities industries. He received his maintains a diverse commercial litigation and Ericka Jack- Bachelors of Science in Accounting from son was Chris is a Certified Public business practice, with his primary focus on the Wayne State University. named direc- Accountant who joins the construction, manufacturing and real estate tor of under- Detroit Market as a Senior industries. McNally also serves as a Trustee for graduate ad- Associate. Chris comes to Siegfried from Blue the Franny Strong Foundation. missions for Cross Blue Shield of Michigan where he gained Wayne State insurance industry experience with a primary University. focus on consolidations. He also spent over two Jackson years with UHY where he gained audit Ericka Jackson had been as- experience in the manufacturing, services, and Crain’s has moved its complete list of appointments and promotions to sistant dean non-profit industries. He received his BBA in www.crainsdetroit.com/peopleonthemove. Guaranteed placement in print of admissions and student af- Management and MS in Accounting from Walsh and online can be purchased at this website. fairs at the WSU Law School. Ⅲ College. 20160307-NEWS--0017-NAT-CCI-CD_-- 3/4/2016 4:43 PM Page 1

CRAIN’S DETROIT BUSINESS // MARCH 7, 2016 17

when you walk up to it,” he said. “If much richer, he said. Six Mile Road in May, with assis- and tax-preparation assistance in DIA we could, I would take it to the But identifying diverse candi- tance from the Osborn Neighborhood the area. FROM PAGE 3 ground level.” dates for the museum’s various de- Alliance. The country’s museums and li- The idea of bringing the DIA’s Physically, the area around the DIA partments is often an issue, because The project builds on the DIA’s braries have vast potential to develop Woodward Avenue plaza to street needs to change, Salort-Pons said. the pipeline is not diverse, Salort- Inside/Out project that has taken the physical, social and economic ini- level as a way to increase its accessi- “And then, I think we need to do Pons said. reproductions of its famous artwork tiatives necessary for comprehensive bility isn’t meant to be a pie-in-the- better outreach,” especially to the “We want to help with that” by into Detroit neighborhoods and community revitalization, said the in- sky analogy, he said. African American and Latino com- creating internships for high school other communities around the tri- stitute’s director Kathryn Matthew. “I don’t know if we can do it. But munities in the city. or college students, for example, fo- county area, Salort-Pons said. They are often located in areas I’d like to, if we can.” To truly be the heart of a town cusing on diverse candidates. “We can work with local artists that area very central to communi- Creating a town square square, the DIA should reflect the Sometimes, only privileged peo- and through art help build up com- ties in need, especially in the case of city’s demographics, with representa- ple can afford to take internships munities,” Salort-Pons said. libraries. And museums are already Salort-Pons, who was born in tion from all of its residents coming because they are not paid, he said, “These works of art (bring) this doing a lot of outreach and attract- Spain and studied in Italy before to enjoy life and art, Salort-Pons said. noting he’d change that by offering bonding experience … they improve ing many from the community on a coming to the U.S. in 2004 to work at “We want to be the mirror of the soci- paid internships. the landscape where they are.” regular basis, she said. Meadows Museum at Southern ety so when everyone comes here Neighborhood According to a national study re- “It’s all about the deep relation- Methodist University in Dallas, aims to they … see themselves reflected.” revitalization leased by the Washington, D.C.- ships museums have with their bring a bit of Europe back to Detroit The goal is to be relevant to based Institute of Museum and Library communities...and knowing how to with the creation of a town square. everyone, he said. That means not Salort-Pons is also looking to Sciences and Local Initiatives Support leverage that,” Matthew said. In European cities, the town just making the museum accessible spur revitalization in the city’s Corp. in November, there are a num- Showing impact on kids square is a “magnetic center” where for all people to visit it, but making neighborhoods. ber of U.S. museums and libraries everyone goes, he said. Without that sure all people who come to the “When you put art in the com- leveraging their prominent local Last year, nearly 70,000 students in Detroit, it’s easy to get lost. museum are engaged. munity, there are some dynamics it positions to help rebuild troubled came to the DIA, Salort-Pons said. “If you want to make Detroit a Bringing a diverse group of peo- sparks,” he said. The community re- neighborhoods, driving economic, “But what is the impact we have livable city, you have to have points ple with different talents and back- spects the art and starts to take care educational and social efforts that on these kids? We don’t know. (But) of reference,” Salort-Pons said. grounds together will create “a of the area around it. help raise standards of living. we need to know are we improving He wants to work with other melting pot,” he said. “And that With a $10,000 Arts Challenge Among them is the Detroit Public their creativity?” nearby institutions like the Detroit brings change.” Detroit grant from the Miami-based Library, highlighted for housing one The DIA could test kids when Historical Museum and Wayne State Increasing diversity within the John S. and James L. Knight Founda- of 10 learning labs in the city to pro- they come in and then after field University to make their shared area museum’s own operations, as well tion, the DIA is funding and coordi- vide literacy and math education trips to the DIA, over time, test them into the main town square of De- as in its galleries, is also a goal, Sa- nating the creation of a mural by and career pathways assistance. again to see if they’ve improved in troit, with the DIA at the heart of it. lort-Pons said. local artists in the city’s eastside Os- The branch participates in the creativity, he said. He envisions doing that by trans- “Even though we are pretty good born neighborhood, as well as art Focus: Hope-led Hope Village Initia- If you can spark creativity in kids forming the urban plan of the area in diversity, it’s not in all the differ- workshops for residents. tive, a neighborhood network of “you are actually giving them a to create more walkability and by ent ranks. That is a disadvantage for The four-story, 34-foot-wide nine institutions providing a 100- mental tool. ... (They) will be a bet- creating inviting entrances and the museum.” mural will be painted by two Os- block area with skills training pro- ter problem solver and be more gathering areas, beginning with the When you have people from dif- born-born artists, with help from grams. The library is also a part of a confident,” he said. DIA’s Woodward Avenue plaza. ferent backgrounds and races, other residents. Work is set to begin community referral program link- Sherri Welch: (313) 446-1694 “The DIA resembles a temple what they bring to the table is on the mural at Gratiot Avenue and ing people to health care, parenting Twitter: @SherriWelch JOB FRONT MARKET PLACE

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18 CRAIN’S DETROIT BUSINESS // MARCH 7, 2016 Flint water crisis puts DEQ under increased scrutiny

By Jay Greene “We want to create a safe but For example, DEQ’s Drinking [email protected] healthy economic environment,” Water Program was forced to fill The Flint water crisis is bring- he said. vacancies “with staff from other ing new scrutiny to Gov. Rick Sny- Shortly after taking office in early programs that have been cut or der’s effort to streamline state reg- 2011, Snyder created the ORR to in- eliminated,” the EPA said. “While ulations. crease the efficiency of Michigan’s this practice preserves jobs, it de- The effort has been lauded by the government and to create a more creases the technical knowledge business community for cutting red welcoming business environment. of staff and requires tremendous tape in acquiring permits and mod- It was a similar approach to what resources to train these staff.” ifying or eliminating redundant reg- former Republican Gov. John Engler It is not clear what has happened ulations, but environmental groups did in the early 1990s. Engler be- during Snyder’s tenure to rectify question whether it has led to a per- lieved environmental regulations those problems. missive culture in the Michigan De- slowed development, so he elimi- Fast forward to Flint. On Dec. partment of Environmental Quality nated dozens of regulations, re- 29, Snyder’s own Flint Water Adviso- that helped lead to the crisis. structured the Department of Natural ry Task Force said this of the DEQ’s In 2011, Snyder created the Of- Resources and eliminated at least 18 oversight of Flint’s switch from fice of Regulatory Reinvention to eval- citizen advisory boards. Environ- Lake Huron-treated water to the uate whether some regulations mental enforcement declined sub- Flint River: are outdated or hamper business stantially, state reports said. “We believe the primary respon- development. Since then, 348 reg- Snyder’s ORR efforts and practice sibility for what happened in Flint ulations have been rescinded of allowing businesses to commu- rests with the DEQ. The city of from DEQ, 11 percent of the de- nicate more with DEQ regulators BLOOMBERG Flint’s water customers — fellow partment’s total. Overall, Michi- has been praised by the Michigan A failure to treat river water with anti-corrosion chemicals contributed to the crisis. Michigan citizens — were needless- gan departments have rescinded Chamber of Commerce and met ly and tragically exposed to toxic 2,217 regulations, or 16 percent of with skepticism by the environ- over his handling of the Flint water “There has not been an incentive levels of lead through their drinking their total, by the ORR process. mental community. crisis, seemed to relish wearing two to respond to these kinds of com- water supply.” Snyder also has demanded that “By eliminating bureaucratic red hats: economic development and plaints, so over time I expect DEQ The task force said DEQ failed in the DEQ conduct speedier reviews tape, the state has improved the de- environmental protection. staff stop prioritizing this,” she said. three areas: regulatory enforce- of air, water and land environmen- livery of our services and can better Wyant personally visited regional How the rules are made ment, public response, and inter- tal permits and licenses to create a protect Michiganders and allow our offices to encourage staff to become pretation of the EPA’s lead and cop- more business-friendly regulatory businesses to be successful,” said more business friendly and to in- While Geer said the business per rule. environment for the state. the ORR in 2012 when announcing crease permitting and licensure community is happy with its ability “We believe that in the Office of Jason Geer, director of energy dozens of rule changes. turnaround times, Clift said. to participate more in the permit- Drinking Water and Municipal Assis- and environmental policy with the The Department of Licensing and Moreover, DEQ staff were trained ting process, the chamber’s main tance at DEQ, a culture exists in Michigan Chamber of Commerce, said Regulatory Affairs, which oversees in good customer service tech- criticism of the DEQ now is the lack which ‘technical compliance’ is the DEQ’s permitting process has ORR, touts CNBC’s annual report on niques and were graded on how of stakeholder involvement in considered sufficient to ensure safe improved measurably under the the nation’s top states for business. well they served businesses, said a DEQ’s rule-making powers. drinking water in Michigan,” said Snyder administration. Over the past six years, Michigan source familiar with business per- “The current law requires one the Snyder Flint task force. “The permitting process is just as has improved to 22nd in 2015, up mitting issues. public hearing and then (DEQ) Geer said the chamber doesn’t rigorous, just as hard (to gain ap- from 29th in 2013 and 41st in 2010. “Customer service was their No. 1 can (enact) regulation,” Geer said. agree that (the DEQ) sees technical proval), but it is a process now that James Clift, policy director of the priority. They didn’t want com- “There is no stakeholder feedback compliance as sufficient. involves the stakeholders,” Geer Michigan Environmental Council, said plaints going to the director,” said process. They can do anything “We have arguments all the time said. “Stakeholders and DEQ staff ORR’s sole focus was to eliminate the source, who asked to remain they wish.” with DEQ. They, at times, seem to meet and come up with ways to or modify regulations to make it anonymous. In the early 1990s, the Engler ad- be going way beyond what is re- consider the risks and come up with easier for businesses to operate in “Dan Wyant talked often about ministration won a court case quired. We agree some culture a way to mitigate the risks.” Michigan. being an equal partner in economic against the Legislature that stripped change is needed,” he said. Not everyone agrees. “The purpose was to resolve bar- development. That always made me its authority to veto regulations. But environmentalists say DEQ’s Lisa Wozniak, executive director riers that the business community cringe,” Clift said. “We don’t want our In response, the chamber is culture change didn’t simply start with the Michigan League of Conserva- perceived, not reviewing the rules No. 1 regulator being the arbiter of backing Senate Bill 827, introduced with the ORR review or Snyder’s tion Voters, said the culture of the for the science,” said Clift, who was what is good for economic develop- last week by Sen. Tom Casperson, R- proclamations that “Michigan is Snyder administration has been to one of 12 members on the DEQ’s ment and the environment.” Escanaba. It would create an envi- open for business.” eliminate or modify some rules regulatory rules advisory commit- Environmental lawyers told ronmental rules committee within Over 30 years, “there have been without a clear evaluation of envi- tee. “I dissented on one-third of the Crain’s that entities seeking regu- the executive administration that hiring freezes, shifting budgets, and ronmental or public health impact. 77 recommendations (groups of latory review have found much would provide oversight to regula- the DEQ is being forced more than “They are creating a culture of DEQ rules that were easier sledding under Snyder tions proposed by the DEQ. ever to oversee more with less,” getting to ‘yes’ more quickly,” Woz- rescinded).”Still, Clift said he does than ever before. Geer said this committee of Wozniak said. niak said. “Some say it is good for not believe any of the 348 deleted “DEQ always used to be sticklers business leaders, environmental, From 1999 through 2015, DEQ’s the business community but not in DEQ regulations contributed to the for the rules,” said one environmen- health and medical officials general fund budget declined 64 the best interests of the state citi- Flint water crisis. tal lawyer who asked to remain would review all proposed regula- percent from $96 million to $35 zens from public safety.” “There was a mentality, an at- anonymous. “Permits that once tions. The committee would have million, said the House Fiscal Maggie Pallone, DEQ’s deputy di- mosphere and attitude (in DEQ) would have raised a lot of red flags authority to approve, reject or ask Agency last year. rector for policy and legislative af- that probably was a contributing have gone through a lot smoother.” DEQ to withdraw. “There has been a de-prioritiz- fairs, said Snyder has tried in the factor” to the problems that led Anne Woiwode, former state “We would like to create this ing of programs intended to pro- past five years to encourage eco- DEQ to ignore red flags when it director of the Michigan Sierra committee to create openness and tect human health and those sys- nomic development to help Michi- came to fixing the Flint water prob- Club, said there has been a lax transparency in the process,” Geer temic problems caused Flint,” gan climb out of a recession and in- lem, Clift said. attitude among regulators to said. “There should be some things Wozniak said. crease its national standing. Pallone said she rejects the no- bend over backward to satisfy within the governor’s purview, but But under Snyder, DEQ’s state “To say by encouraging economic tion that the Snyder administration business interests. not be allowed a free hand.” general fund budget increased development we were lax on the en- put business interests ahead of “Much of the attention to permit- Clift said the rules committee from $21.5 million in 2011 to $35 vironment, I don’t think is true,” she public health and environmental ting of regulations goes to the would be a “blatant attempt to turn million in 2015. For fiscal 2017, said. “We did a good job at educat- protection. proactive effort to obtain permis- over regulatory authority to the Snyder has proposed a $12 million ing the business community in the However, as a result of the Flint sion to pollute,” Woiwode said. people we are supposed to be regu- increase at DEQ to $47.7 million. rules on what the law said. It was not water crisis, Pallone said the DEQ For example, Snyder’s own score- lating.” Overall, DEQ’s budget, just DEQ handing out permits. It and the Environmental Protection card of regulatory reinvention touts The shrinking DEQ which includes federal funds, was a lot less confrontational.” Agency are conducting a review of how quickly it turns around permit- bond funding and other grants, Geer said the chamber feels the the regulatory breakdowns that led ting applications and how customer In a 2010 report, the EPA said has grown under Snyder to ORR has been very successful in to Flint’s drinking water supply service of applicants has soared. Michigan’s DEQ had experienced $487 million in 2015 from $406 using a mixed group of stakeholders problems. But Woiwode said the score- more than 20 years of budget cuts, million in fiscal 2011. Snyder’s — a 12-member committee that in- One of the problems at the DEQ, card that DEQ uses to address staff reductions, had limited re- proposed 2017 budget for DEQ cludes business and environmental said Clift, was that Dan Wyant, who success has nothing in it that sources to enforce air and water stan- is $513 million. Ⅲ representatives — to review outdat- was director of DEQ under Snyder measures responsiveness to citi- dards and was willing to take short- Jay Greene: (313) 446-0325 ed and unnecessary regulations. until he resigned last December zen complaints. cuts to safeguard the environment. Twitter: @jaybgreene 20160307-NEWS--0019-NAT-CCI-CD_-- 3/4/2016 4:51 PM Page 1

CRAIN’S DETROIT BUSINESS // MARCH 7, 2016 19

gets resolved.” to two weeks to deliver test results, WATER How to test water quality National Testing also confirmed but some private labs told Crain’s FROM PAGE 1 A business or homeowner or school district can requisition sample containers having an “appreciable” increase in they obtain results for a customer directly from the Michigan Department of Environmental Quality’s Drinking water-quality testing requests from within three or four days. was expected Saturday as an added Water Analysis Laboratory in Lansing, or hire an independent private Michigan, where it maintains a lab- Environmental engineering precaution, said district community laboratory certified by the state. An environmental engineering firm, which in oratory in Ypsilanti, but did not give firms can collect anywhere from a relations director Lori Grein. Two turn uses DEQ or a certified lab, can also collect samples and evaluate results. specific growth figures. The compa- basic sampling of two or three loca- state-certified labs tested samples ny has also been approached by tions in one building, to a more from the Howell Public School District Local health departments generally maintain a small supply of the most MDEQ for testing assistance, Vice comprehensive collection from and found late last month that 14 common sample collection units, for easier and faster service, and can usually President Steve Tischler said in every single water fixture in it. out of 30 samples from Northwest El- offer some advice on the most appropriate kinds of tests to request. But local an email. That means an average-sized ementary School had lead content, supplies may be depleted by recent demand. Individual sample units should “Our volume is up, and we have school district could end up with a though only three from “seldom- be drawn from only one water source, and samples that are not submitted in added resources to meet this new bill of tens of thousands of dollars used fixtures” were above the EPA the correct units may not be analyzed. demand. If the trend we are seeing for the district, depending on num- action threshold. Sample unit requests to the state can be submitted by email, phone, fax or continues, we will be looking to add ber of fixtures tested, number of Utica Community Schools retained mail to the DEQ. More information is available at the DEQ’s website. resources in the form of instrumen- buildings and whether the district Farmington Hills environmental tation and people,” he said. relies on the engineering company’s research and consulting firm Arch The MDEQ charges $18 to test specialist or its own personnel to Environmental Group in mid-January an individual sample for lead and gather samples. to sample and test drinking water results, and the extra work hasn’t proposals to Michigan school dis- $26 per sample for lead and cop- Chris McCarthy, owner of How- at its 45 schools and other build- created any backlogs or delays, tricts in the past two months or so, per, a more industry-standard met- ell-based Water Tech LLC, which ings. The samples, tested for Arch Amin said — but the sampling many of them in Wayne, Oakland als test. Independent labs are gen- conducted some of the sample test- by Lakeland Laboratories Inc. in means extra work hours. and Macomb counties, even erally more expensive, charging ing for the Howell school district, Pinckney, found no lead levels at “The lead work is such that we though those districts rarely re- anywhere from $25 to more than said lead and copper testing is usu- any school district site. find ourselves pulling weekends or quested such testing unless they $60 per sample, experts said, but ally a small portion of business for Kary Amin, partner and vice longer days recently, because for the had a specific cause for concern. return results faster — and some the firm, which focuses more on president at Nova Environmental, process of lead testing ideally you “Schools don’t necessarily have say they are picking up business standard environmental testing for said the company expects to collect want first draw — where you wait a huge budget for something that’s from customers who feel less con- home inspectors at the time of samples from 80-100 buildings six hours with no activity at the fix- not mandated. So I would say all or fident in a state-run laboratory home sales, or on new wells. from at least half a dozen other ture for collecting a sample,” Amin nearly all are doing this because since Flint. But lead testing has more than school districts besides Rochester said. they’re trying to be proactive, and Water analysis laboratory offi- doubled in recent months, largely within the next several weeks — “So to get the water before the to ensure parents and the commu- cials at the MDEQ report demand from commercial and school cus- mostly in Macomb and Oakland kids start using it, you have to come nity their children are safe,” for water quality testing has at least tomers and others who aren’t under counties. in very early in the morning or he said. tripled statewide in the past few legal requirements to do so. Normally the company does little weekends. Logistics come into play “We do have a fair amount of months — so much so that the “This year is definitely going to or no analysis for schools using city for your sampling strategy.” new work, but it hasn’t become un- agency ran out of one kind of sam- be one of the bigger years for lead water. Testing centers like National Scott Staber, president and CEO manageable yet. And I think pling container and had to resup- and copper testing,” he said. Ⅲ Testing Laboratories have been of Arch Environmental, said his it’s going to continue to have a surge ply it recently. The workload means Chad Halcom: (313) 446-6796 pretty good so far about returning company has submitted about 25 upward until the Flint issue the agency is sometimes taking up Twitter: @chadhalcom

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20 CRAIN’S DETROIT BUSINESS // MARCH 7, 2016

one-bedroom units ranging from built and expansion still continuing, RIVERFRONT 730 to 1,022 square feet renting from certain large users are going to have FROM PAGE 3 $1,141 to $1,521 per month; 160 two- to look east or at the New Center bedroom units ranging from 1,011 to area,” he said. Lester. The Talon Centre sale, ex- 1,935 square feet renting from $1,462 Ben Rosenzweig, vice president of pected to close by the middle of this to $2,239 per month; and 54 three- brokerage at Birmingham-based In- month, is being brokered by Peter bedroom units ranging from 1,237 to digo Centers, said Princeton has been Jankowski, vice president of broker- 1,636 square feet renting from $1,527 able to maintain its multifamily age services for Bingham Farms- to $1,902 per month, according to properties well and its work at the based Core Partners LLC, and Luke Princeton Enterprises. Grand Park Centre office building at Timmis, investment sales associate Constructed in early 20th centu- 28 W. Adams, which it purchased at Southfield-based Signature Associ- ry buildings, the apartments were three years ago, proves the company ates Inc. There are no brokers on the renovated in 1987, according to can attract downtown office tenants. Stroh River Place deal, Lester said. Princeton. “The Talon Centre and Stroh’s The purchase prices have not The Talon Centre building is River Place apartments are a great been disclosed. owned by Talon Center Partners LLC, addition to their portfolio of high- The Stroh River Place anchor is at which is registered to Daniel Stern, quality properties in a great Detroit 300 River Place, a 500,000-square- owner of Bloomfield Hills-based location,” Rosenzweig said. foot office building owned by the Lormax-Stern Development Co. MICHAEL LEWIS II Princeton Enterprises owns and Stroh Cos. That also houses the Rat- The building was originally a River Place was a renovation of century-old buildings formerly owned by the manages the former Milner Hotel, tlesnake Club restaurant. The com- Parke-Davis pharmaceutical plant old drugmaker Parke-Davis. which was redeveloped into The plex also includes a parking struc- and later became Stroh Brewery Co.’s Ashley apartment building with 67 ture and the Roberts Riverwalk Hotel headquarters. The building was office of Jones Lang LaSalle. “I think opened last summer. units in a $9 million project com- & Residence at 1000 River Place, the renovated in the early 1990s for you now have an argument, with Steve Morris, principal of Farm- pleted last year. former Omni Hotel. Lester’s purchase about $15 million. the Orleans Landing project and the ington Hills-based Axis Advisors LLC, Closure of the two purchases does not include these buildings. Real estate brokers said the deal DNR building, that it further feeds which represented the Detroit- would bring Princeton Enterprises, The Stroh family bought the is a win for Princeton and shows into what is going to be a really ex- based Skillman Foundation in the re- founded in 1995, to a greater down- property in 1979. It contained more how strong the area has become in citing riverfront in the years to newal of its first-floor lease at the town multifamily portfolio of 10 than a dozen late 19th and early recent years. come.” The $65 million Orleans Talon Centre, called the east river- buildings with 1,138 units. 20th century buildings, which were “It’s a further endorsement of the Landing mixed-use project, to the front office market one that has “This is two out of what we consid- later redeveloped into the Stroh benefits of the Riverwalk invest- west of River Place, broke ground been “tertiary” for many years. er to be several in the works,” Lester River Place project just west of the ment that the city and others were last fall. The nearby DNR Outdoor Ad- “But with office vacancy in said. “There is more to come.” Ⅲ UAW-GM Center for Human Resources. able to facilitate,” said AJ Weiner, venture Center, a renovation of the (downtown) Detroit coming down Kirk Pinho: (313) 446-0412 Stroh River Place has 301 units: 87 managing director in the Royal Oak former Globe Trading Co. building, to under 13 percent, nothing being Twitter: @kirkpinhoCDB

— would be south of Campus Mar- store on Woodward. Designer John Gilbert, the founder and chairman of sions to submit it. The development DOWNTOWN tius. The promenade — consisting Varvatos, a Detroit native, also Quicken Loans Inc. and Rock Ventures, is expected to include at least FROM PAGE 1 of glass café projections, outdoor opened a Woodward store. is involved in. 225,000 square feet of mixed-use cafés and kiosks — would be be- Dan Mullen, executive vice presi- “Yes, you look to the north and space, at least 250 residential units But other progress has been tween Campus Martius and Grand dent of Gilbert’s Bedrock Real Estate take a chunk of Brush Park, and de- and at least 900 parking spaces. made in smaller ways. Circus Park. Services LLC, said the new activity velopment of some stuff on the west Gilbert said in a December inter- Three years of action “This (plan) was to lay out the downtown has been a key part of re- side in Corktown, and they’ve got a view with Crain’s that work contin- framework for a broad plan of infra- cruiting new tenants to Bedrock’s number of ideas that haven’t come to ues.“We’re working hard. We have to To be sure, the downtown atmos- structure, place-making, retailing buildings. fruition,” said Robin Boyle, chairman get it right. We want to make sure it’s phere is better than it was in March and so on, but we don’t ever expect “Almost every single one of our of the Wayne State University Depart- a unique, special destination, 2013 when the plan was unveiled, to be done” with improvements, tenants feels that way,” he said. ment of Urban Studies and Planning. something that Detroiters and visi- and more is to be done this year. said Matt Cullen, president and CEO “Fifth Third and Ally Financial were Bedrock is one of the investment tors can be proud of,” he said. Those things include redevelop- of Rock Ventures, one of the finan- thrilled to be next to the program- partners in a $70 million redevelop- Work also continues on the ment projects, art installations, new cial backers of the plans. “We want ming in the park and the urban ment of 8.4 acres of Brush Park into Woodward esplanade, Gregory said. events and urban redesign plans to improve it all the time.” beach and everything else.” a new mixed-use development with South of the planned M-1 station and others. So, many of the plan’s facets, de- In addition, art installations residential and retail space, and ear- downtown, planning for the es- “The plan that was outlined was scribed by its backers in shorthand downtown are seemingly unveiled lier this year purchased a pair of planade is on pause so further plan- a guideline to get us to a place we as LQC, meaning lighter, quicker, weekly, with more to come in differ- Corktown buildings at 1700 W. Fort ning of Hart Plaza and Jefferson Av- want to be,” said AJ Weiner, manag- cheaper, have been implemented, ent pockets of the central core. Walk St. and 1681-1749 W. Lafayette Blvd. enue can be completed. North of ing director in the Royal Oak office including in Grand Circus Park, said around a Gilbert-owned building from The Display Group. Quicken also the M-1 station, work continues of Jones Lang LaSalle. “We would all Bob Gregory, president of the Detroit and odds are that you’ll notice opened its 66,000-square-foot data studying, planning and designing agree the environment is better two, 300 Conservancy, an affiliate of the something new every time — a center in Corktown in June. the initial phase of turning that por- five and 10 years ago. We are on the Downtown Detroit Partnership work- mural here, a piano there, a tempo- “Then there is another group tion of Woodward north to Grand right direction.” ing on the place-making efforts. rary installation somewhere else. working on some neighborhoods, Circus Park into an esplanade. Dan Gilbert’s Rock Ventures LLC “You can go back three or four Last year, an installation gave some of the housing initiatives. You Planning to make crossing Jeffer- says that more than 1,000 free events years ago, and people felt very un- space for people to write the one could argue that the Bedrock em- son Avenue to go to and from Hart are now held annually in four target- comfortable, whether because of thing they wanted to do before they pire has seen a little bit of mission Plaza is also ongoing, Gregory said. ed parks downtown — Campus crime, dope or overgrown land- die on the side of a Woodward build- creep in downtown Detroit and you June Manning Thomas, the Cen- Martius, Beatrice Buck Park, Capitol scaping,” Gregory said. “These are ing. A massive Shepard Fairey mural could argue that they are taking tennial Professor of Urban and Re- Park and Grand Circus Park — and not big, skyscraping kinds of proj- was installed on the side of the One their toys and spreading them too gional Planning at the University of that more are expected this year. ects, but we went in there, working Campus Martius building, formerly widely — which is potentially good, Michigan Taubman College of Archi- “We will have more and more di- off that plan and opened up the the Compuware Corp. headquarters but then you don’t have that deliv- tecture and Urban Planning, said verse events and place-making acti- pathways, removed the hedges, now owned by Bedrock and Detroit- ery in the central core.” that while the groups spearheading vations with more external public adding programming and chairs based Meridian Health. Last week, Bedrock’s real estate portfolio is the place-making and retail efforts and private partners as well as more and umbrellas. People are coming Bedrock announced a new Vault of now more than 85 properties — are perhaps “even a little bit ahead” of a focus on arts and cultural pro- back there.” Midnight Inc. comic book store in buildings, parking decks and sur- of where she expected them to be on gramming,” the company said. In the next year or so, also look Gilbert’s The Z mixed-use develop- face parking lots — totaling more the overall plan, perhaps they didn’t And progress is being made on for a redesign of Capitol Park to be ment and a new “experiential enter- than 14 million square feet, largely quite grasp all the headwinds they those big-ticket items, costing hun- unveiled to soften the downtown tainment” venue called Escape the downtown, acquired over the past would face on a number of fronts. dreds of millions in public and pri- enclave with wider sidewalks, new Room at 1030 Brush St. five years, according to the most re- “I think everyone is kind of new vate dollars. They include turning plantings, bike lanes and other im- Too ambitious? cent Quicken Loans tally. The in- at development in downtown De- Woodward into an esplanade and provements, Gregory said. Signifi- vestment is more than $2.2 billion, troit,” she said. “It’s not greenfield promenade between Jefferson to cant redevelopment of some of the But urban planning academicians according to Quicken. development in Sterling Heights. the south and Grand Circus Park to area’s buildings is also expected. say that the timelines three years ago The M-1 Rail project is a 3.3-mile You’ve got a bureaucracy that is the north, and making crossing Jef- Efforts by Rock, the DDP and oth- for completion of the large-scale proj- streetcar loop under construction probably at one of its lowest levels ferson to Hart Plaza easier and more ers — the city of Detroit, the Detroit ects were too ambitious, with per- between Larned Street downtown in terms of staffing. Then you have conducive to a walkable downtown. Economic Growth Corp., the Detroit haps too small of a group tackling and Grand Boulevard in the New permitting that you have to go Both considered more pedestri- RiverFront Conservancy and others them, with perhaps too many other Center area. It is scheduled for a through after a whole wave of pink- an-friendly urban planning options, among them — will continue. New things on their plates — particularly first-quarter completion next year. slipping that started about four the esplanade — a park-like area, retailers will come and make splash- given how rapidly Bedrock’s real es- A redevelopment plan for the years ago or even before that.” Ⅲ possibly including bike lanes, creat- es for city shoppers, including the tate portfolio has grown in the past Hudson’s site is now due by next Kirk Pinho: (313) 446-0412 ed by widening the existing median soon-to-open Nike Inc. community three years and other efforts that month after several deadline exten- Twitter: @kirkpinhoCDB 20160307-NEWS--0021-NAT-CCI-CD_-- 3/4/2016 4:52 PM Page 1

CRAIN’S DETROIT BUSINESS // MARCH 7, 2016 21

spending to replace coal will begin after that, PIPELINE with DTE’s bill eventually coming in at $8 billion. CRAIN’S FROM PAGE 1 Officials at DTE and Consumers say they will DETROIT BUSINESS merely as a predictable provider of monthly utili- lean toward natural gas because renewable energy www.crainsdetroit.com ty bills. The Gas Storage & Pipelines division technology hasn’t advanced enough to depend on Editor-in-Chief Keith E. Crain stands apart from the utility business and was for base load energy. Gas is cleaner than other fossil Group Publisher Mary Kramer, (313) 446-0399 or [email protected] the company’s best-performing division last fuels and will allow them to meet federal emissions Editor Jennette Smith, (313) 446-1622 or year. Its profits increased 30 percent from rules. Since gas doesn’t rely on the vagaries of wind [email protected] Director, Digital Strategy, Audience Development $82 million in 2014 to $107 million in 2015. Other and sunshine to produce power, it can be the base Nancy Hanus, (313) 446-1621 or divisions were flat, down or lost money. that enables the expansion of renewables. [email protected] Managing Editor Michael Lee, (313) 446-1630 or Fitch Ratings, in a February upgrading of DTE’s They also like that natural gas plants are small- [email protected] credit rating, approvingly noted that Nexus is er and nimbler than coal plants. They require less Managing Editor/Custom and Special Projects Daniel Duggan, (313) 446-0414 or buoyed by “take-or-pay contracts” with distributors investment, take up less real estate, can be built [email protected] with an average term of 15 years. These contracts within two years, and are easily switched on and Assistant Managing Editor Kristin Bull, are exactly what they sound like: Customers that off. (313) 446-1608 or [email protected] News Editor Beth Reeber Valone, (313) 446-5875 choose not to take gas from the pipe will still have to Natural gas plants “can dispatch on incredibly or [email protected] pay for it. They can sell their share on the secondary short notice — within 15 minutes,” Slater said. Senior Editor Gary Piatek, (313) 446-0357 market. Either way, Nexus gets the important early or [email protected] Risks Research and Data EditorSonya Hill,(313) 446-0402 funding it needs to make the project viable, upfront. or [email protected] Ohio Inc. Dominion Resources Inc. Editorial Support (313) 446-0419; YahNica Craw- GS&P is one of two non-utility business divi- , and a gas plant Industry watchers worry the utilities are setting ford, (313) 446-0329 sions that could drive up DTE’s net income 25 being built near Toledo called the Oregon Clean up themselves, and by extension the state’s econo- Newsroom (313) 446-0329, FAX (313) 446-1687 , percent by 2018, the ratings company projected. Energy Center. my, for disaster should the price of natural gas spike. TIP LINE (313) 446-6766 (The other is DTE’s Power & Industrial Projects DTE would not say how much revenue it ex- Price spikes have caused problems in the past. REPORTERS division, which manages power at factories for pects from the expansion. In the early 2000s, low prices enticed independent Jay Greene, senior reporter Covers health care, in- surance, energy, utilities and the environment. industrial customers.) But, like Michigan, Ohio has aging coal plants investors to build plants. Prices went back up and (313) 446-0325 or [email protected] DTE plans to spend up to $2.6 billion develop- that likely will be replaced by natural gas. these “merchant plants,” as they are called, went Chad Halcom Covers litigation, the defense indus- try and education. (313) 446-6796 or ing its gas and pipelines business through 2020. “Ohio has the same situation we do,” said bust. (Now they are easy pickings for the utilities. [email protected] GS&P’s customers are utilities, including DTE David Slater, president of DTE’s gas and pipeline Consumers Energy last year bought one for what it Tom Henderson Covers banking, finance, tech- nology and biotechnology. (313) 446-0337 or itself. The division supplies fuel through pipelines division. says was the quarter of the price to build one.) [email protected] and uses underground storage facilities, many of “There’s no way natural gas is going to stay as Kirk Pinho Covers real estate, Oakland and Ma- Critical connection comb counties. (313) 446-0412 or them in St. Clair County, to make sure it has the cheap as it has been for the last couple of years,” [email protected] supply needed at times of peak demand. Besides adding a major asset to its GS&P division, said Martin Kushler, a senior fellow at the Califor- Bill Shea, enterprise editor Covers media, American Council for an Energy-Efficient advertising and marketing, the business of Nexus will allow DTE to expand the gas side of not to mention to its regular gas utility business, nia-based sports, and transportation. its business. The company says Michigan’s geog- Nexus also fits into a shift that will remake DTE’s Economy whose office is in Lansing. (313) 446-1626 or [email protected] Robert Snell, reporter Covers city of Detroit raphy gives it an edge. Natural gas wells made of electric utility infrastructure over the next 15 years. Slater said Nexus’ direct connection to natural and regional politics. (313) 446-1654 or porous rock were depleted in the middle of the DTE is in the early stages of switching this base gas sources will help stabilize prices by making [email protected] Lindsay VanHulle, Lansing reporter. (517) 657- last century but now serve as ideal places to store from coal to natural gas. It expects gas to generate the logistics more efficient, and smoothing the 2204 or [email protected] gas. DTE’s strategic play is to combine this natural 30-45 percent of its mix by 2030. peaks and valleys of supply and demand. Long- Dustin Walsh, senior reporter Covers the busi- ness of law, auto suppliers, manufacturing and storage asset with a direct line to one of the coun- The overhaul serves not only to upgrade the term contracts with set prices also will help. steel. (313) 446-6042 or [email protected] try’s biggest hotbeds of natural gas production. aging fleet, but also to meet the U.S. Environmen- The revolution in fracking technology that’s Sherri Welch, senior reporter Covers nonprofits, services, retail and hospitality. (313) DTE says it already has contracts with seven tal Protection Agency’s proposed Clean Power been going on for the past decade has been the 446-1694 or [email protected] companies for two-thirds of the pipeline’s capac- Plan to cut carbon emissions 32 percent by 2030. leading the plunge in prices. That technology won’t ity. They include Union Gas Ltd., Enbridge Inc., (DTE’s fellow Michigan utility, Jackson-based Con- be un-invented. But Kushler said that may be be- ADVERTISING Chesapeake Energy Corp. Noble Energy Inc. sumers Energy Co. Sales Inquiries (313) 446-6032; FAX (313) 393-0997 and , has similar plans. Three of its five side the point; when fracking depletes existing re- Advertising Director Matthew Langan Markets directly served will be those in north- coal plants will close in April.) serves, prices will reflect the tightened supply. Senior Account Executive Katie Sullivan ern Ohio and Southeast Michigan. The reach will DTE last year spent $310 million on purchases At the moment, DTE is busier fending off price Advertising Sales Catherine Grace, Joe Miller, Sarah Stachowicz, Katie Sullivan be extended by connecting to another DTE joint- of two natural gas plants. It’s in the middle of questions coming from the other direction. In the Feb. Classified Sales Manager Angela Schutte, (313) venture pipeline called Vector, which runs 348 shutting down two-thirds of its coal plant in 10 conference call, analysts were more concerned that 446-6051 miles between the Chicago area and Dawn, On- Trenton. It hasn’t announced plans to close units prices are so low that drillers won’t have anything to Classified Sales Lynn Calcaterra, (313) 446-6086 Events Manager Kacey Anderson tario, which is a major energy hub. at any of its four other coal plants, but it will have put into the Nexus pipeline. Prices don’t make it worth Creative Services Director Pierrette Templeton A map provided by DTE shows a string of to in the years ahead to meet its targets. the money it takes to get gas out of the ground. Senior Art Director Sylvia Kolaski northern Ohio gas utilities and industrial parks It expects to spend $1.2 billion on new elec- Anderson said not to worry. Marketing Coordinator Ariel Black Special Projects Coordinator Keenan Covington along the Nexus route that would be welcome tricity generation by 2020. DTE CEO Gerry An- “The drilling has to resume, and our pipes are Sales Support Suzanne Janik, YahNica Crawford new customers. These include Columbia Gas of derson previously told Crain’s that the bulk of the in the right locations to benefit and grow .” Ⅲ Editorial Assistant Nancy Powers Production Manager Wendy Kobylarz Production Supervisor Andrew Spanos wouldn’t we all rather make parts would be based on an apprentice- turing and Assembly LLC, that em- CUSTOMER SERVICE where they used to be made?” like structure, where those workers ploys as many as 700, Simoncini Main Number: Call (877) 824-9374 LEAR or [email protected] FROM PAGE 3 But Kristin Dziczek, director of would have a path to growth, which said, at a lower wage rate than its Subscriptions $59 one year, $98 two years. Out of the industry and labor group at the includes first rights to higher-pay- fully owned plants. state, $79 one year, $138 for two years. Outside U.S.A., add $48 per year to out-of-state rate for sur- market. I believe in organized labor, Ann Arbor-based Center for Automo- ing openings within the organiza- “We know we can find qualified face mail. Call (313) 446-0450 or (877) 824-9374. but with the caveat that we need to tive Research, said the plan only tion. That classification would candidates,” Simoncini said. “We’ve Single Copies (877) 824-9374 Reprints (212) 210-0750; or Krista Bora at stay competitive.” works if it’s subsidized by low wages apply to new jobs only, not as a re- proven we can succeed in the city, [email protected] To find a date a story was published (313) 446- In Mexico, labor rates sit at under and tax incentives. placement to current jobs, he said. so we want to open another plant to 0406 or e-mail [email protected] $8 per hour, including the cost of “There are plenty of companies The UAW declined to discuss any encourage others to follow us.” Crain’s Detroit Business is published by benefits, according to recent reports. that employ people in the city and talks about working with Lear toward Lear could reopen a shuttered Crain Communications Inc. Chairman Keith E. Crain “More cars are being assembled outside who are providing thousands its goal. The city of Detroit didn’t re- 100,000-square-foot plant it owns in President Rance Crain within 100 miles of Detroit than any- of jobs in the suburbs and across the spond to requests about whether tax the city or continue to push a city-led Treasurer Mary Kay Crain where in the world, yet the vast ma- country at the same exact rate,” Dz- incentives or other incentives are effort to redevelop the I-94 Industrial Executive Vice President/Operations William A. Morrow jority of components are manufac- iczek said. “Unless this is aimed at re- being discussed for the plan. Park near the junction of I-94 and Executive Vice President/Director of Strategic tured in Mexico,” Simoncini said. “No ally being a training program, why Fred Hubacker, managing direc- I-75 near the American Axle & Manu- Operations Chris Crain Executive Vice President/Director of Corporate one wants to subsidize this, whether does it come with a lower wage?” tor at Birmingham-based advisory facturing Holdings Inc. headquarters. Operations KC Crain it’s the UAW, suppliers or OEMs, but Simoncini said the low-wage tier firm Conway MacKenzie Inc., said the “To me, the investment here is Vice President/Production & Manufacturing Dave Kamis UAW’s need for membership could consistent whether we put a plant Chief Financial Officer Thomas Stevens drive the acceptance of a lower wage. in Mexico or Detroit,” Simoncini Chief Information Officer Anthony DiPonio INDEX TO COMPANIES “I think the UAW will accept this, said. “This could be a huge winner.” G.D. Crain Jr. Founder (1885-1973) Mrs. G.D. Crain Jr. Chairman (1911-1996) These companies have significant mention in this week’s Crain’s Detroit Business: and they should, because it’s good A new plant in Detroit would Editorial & Business Offices Arch Environmental ...... 1 Michigan Charitable Gaming Association...... 7 for their membership numbers, double down on Lear’s investments 1155 Gratiot Ave., Detroit MI 48207-2732; (313) 446-6000 Bedrock Real Estate Services ...... 20 Michigan Dept. of Environmental Quality.....18 which is a high priority, and it’s good in the city last year. Cable address: TWX 248-221-5122 AUTNEW DET Black Star Farms ...... 13 Michigan Gaming Control Board...... 7 for the city of Detroit,” Hubacker In July, Lear bought the 50,000- CRAIN’S DETROITBUSINESS ISSN # 0882-1992 is pub- Consumers Energy ...... 9, 11, 12 Michigan Solar Solutions ...... 13 said in an email to Crain’s. square-foot Hemmeter Building on lished weekly,except fora special issue the third weekof Detroit Institute of Arts...... 3 Nova Environmental...... 1 November,and no issue the third weekofDecemberby Conway MacKenzie served as the Centre Street in Detroit for nearly Crain Communications Inc.at 1155 Gratiot Ave.,Detroit Detroit River International Wildlife Refuge.....14 Princeton Enterprises ...... 3 MI 48207-2732.Periodicals postage paid at Detroit,MI DTE Energy...... 1, 9, 10, 11, 12 Steelcase ...... 9 financial adviser to the city’s recent $6 million. Then in September, it ac- and additional mailing offices.POSTMASTER: Send ad- General Motors...... 10 Stroh River Place...... 3 Chapter 9 bankruptcy and worked quired a building on State Street in dress changes to CRAIN’S DETROITBUSINESS,Circula- tion Department,P.O.Box07925,Detroit,MI 48207-9732. General Sports and Entertainment...... 4 Talon Centre ...... 3 on nearly every supplier bankrupt- Detroit’s Capital Park to house an GST# 136760444.Printed in U.S.A. Lear ...... 3 United Shore Financial Services ...... 4 cy during the Great Recession. innovation and design center. Ⅲ Entire contents copyright 2015 byCrain Communica- M-1 Rail ...... 1 United Shore Professional Baseball League ..4 tions Inc.All rights reserved.Reproduction oruse ofedi- Lear already operates a joint ven- Dustin Walsh: (313) 446-6042 torial content in anymannerwithout permission is Michigan Chamber of Commerce...... 18 Water Tech...... 19 ture in the city, Integrated Manufac- Twitter: @dustinpwalsh strictly prohibited. 20160307-NEWS--0022-NAT-CCI-CD_-- 3/4/2016 5:15 PM Page 1

22 CRAIN’S DETROIT BUSINESS // MARCH 7, 2016 ON THE WEB RUMBLINGS WEEK FEB. 27-MARCH 4

Detroit Digits Clark plans to open a new flagship Detroit GOP debate draws State to pay location in Hamtramck, replacing A numbers-focused look at last the original shop and handmade Earley to consult week’s headlines: chocolates making facility on Eva- crowd,media to political circus line Street. Clark bought the building at 11360 Joseph Campau gentle but steady snowfall until mid-July 3 Ave. for $110,000 from Ashraf on Thursday didn’t prevent The number of rooms challenging ichigan has agreed to Ahmed. a hundred-some protesters patrons in a riddle game by A pay Darnell Earley, the Ⅲ The third Vault of Midnight Inc. and activists from gathering to Manhattan-based Escape the Detroit Public Schools’ comic book and board game store chant and march outside Detroit’s M Room. The company opened its former state-appointed emer- is slated to open in The Z in down- Fox Theatre during the Republican first Michigan location earlier this gency manager, more than town Detroit by spring. Vault of presidential debate. month in the retail space of the $82,000 to serve as a consultant Midnight is expected to hire five The real show, however, was in- Brush Street Garage in Detroit. In through mid-July. Earley stepped full-time employees at 1226 Li- side the ornate theater. That’s where each 60-minute game, players down last month from DPS amid brary St. in Bedrock Real Estate Ser- celebrity businessman and GOP solve increasingly challenging criticism for his role in Flint’s vices LLC’s mixed-use parking frontrunner Donald Trump held court riddles to find the keys that will water crisis, as the former EM in garage/retail space development. for much of the Fox News-moderat- get them out of a locked room. that city, and his handling of Ⅲ After months of construction ed debate with U.S. Sen. Ted Cruz of teacher sick-outs and building and planning, Thai-inspired Texas, U.S. Sen. Marco Rubio of Flori- conditions in Detroit’s schools. 248 restaurant Katoi will open in a for- da, and Ohio Gov. John Kasich. The number of 4-by-7-foot wood mer automotive garage in Cork- Trump’s bombastic and some- BILL SHEA panels used to create the court town later this month. The restau- times crude comments dominated Hockeytown Café was used as the media COMPANY NEWS for the Horizon League’s men’s rant is at 2520 Michigan Ave. the news and social media during filing center during the GOP debate. basketball tournament held at Joe Ⅲ Fiat Chrysler Automobiles is and after the debate, but the boister- Ⅲ The Boston-based Wahlburg- Louis Arena. Armasa-based parting ways with Wieden & ous audience got in on the act, too. Ann Arbor-based business consult- ers chain is set to open its first Connor Sports supplied the floor Kennedy, the ad agency that creat- Video quickly emerged of young ant who recently finished a four- Michigan restaurant in Detroit’s from maple trees taken from ed the automaker’s iconic “Im- people “dabbing” — a popular face- year stint as vice president for en- Greektown this summer. Greek- northern Michigan. ported From Detroit” commer- in-elbow (like shielding a sneeze) trepreneurship for the Michigan town Casino-Hotel (soon to be cials after a notable six-year run, dance move — in the audience, and Economic Development Corp. known as Jack Detroit Casino- 80 Advertising Age reported. there were reports of drunken at- The classes, which are sponsored Hotel Greektown) confirmed the The high estimate of Ⅲ The Detroit Tigers began tendees ejected by security. by the MEDC and the New Economy chain will locate across from the “unproductive faculty” at the spring training games amid a The Flint water crisis, the Detroit Initiative for Southeast Michigan, will casino at 569 Monroe St. Crain’s Wayne State University School of sprawling $40.8 million renova- Public Schools’ financial situation, help entrepreneurs assess their first reported the burger chain — Medicine, according to the tion of their facility in Lakeland, and the auto industry were only company’s operations, finances owned by entertainer siblings school’s dean. The school issued a Fla. The project, subsidized en- briefly and cursorily addressed by and personnel; provide them pro- Mark and Donnie Wahlberg and letter to 527 faculty members to tirely by taxpayers, includes con- the candidates, who spent much of fessional coaching and mentors; their brother Paul — was headed step up research and help turn struction of a 78,000-square-foot the evening insulting each other — and introduce them to sources of to Greektown in December. around the school’s $1.5 million building within Joker Marchant par for the course in these GOP de- capital to fund growth. Ⅲ Meijer Inc.’s $80 million cam- monthly deficit or face job cuts. Stadium that will include a new bates. (See Michigan Briefs, Page 2.) The cost to attend, $1,500, in- paign to remodel a dozen South- clubhouse, administrative offices, More than 400 journalists from cludes Inforum membership. east Michigan stores is expected Shore Financial Services LLC, was and player development area. about 100 domestic and interna- to be completed by the holiday the top wholesale lender in the tional news outlets were creden- ‘Ask Dr.Nandi’may relocate season, the Walker-based retailer U.S. in 2015 with $13 billion, ac- OTHER NEWS tialed to cover the debate, according medical TV show said. Meijer has started renovat- cording to data compiled by In- to Republican National Committee de- ing its store in Roseville, expected side Mortgage Finance. Detroit- Ⅲ A marijuana reform group’s bate organizers. The Hockeytown Partha Nandi, M.D., creator and to take six months, and will stag- based Quicken Loans Inc. was the two petitions to halt a zoning or- Café next to the Fox was used as the star of the “Ask Dr. Nandi” medical ger renovations at stores in Allen No. 2 retail lender in the U.S., with dinance that puts restrictions on media filing center, and reporters TV show produced in Farmington Park, Clinton Township, Lapeer, $78.5 billion. Detroit’s roughly 200 medical watched the debate from the restau- Hills, may be looking for a new Lenox Township, Marysville, Port Ⅲ Three Detroit nonprofits — marijuana dispensaries were rant’s dozens of TVs normally used home — outside of Michigan. Huron, Royal Oak, Shelby Town- Alternatives for Girls, Midnight Golf deemed invalid by the city’s legal for Detroit Red Wings broadcasts. After three years of funding that ship, Southfield, Warren and and the Southwest Detroit Commu- team, said Detroit City Council- Michigan’s Republican and De- totaled $2.8 mil- Wixom. nity Justice Center — will share man James Tate, who proposed mocratic presidential primaries are lion, Nandi told Ⅲ Birmingham-based Conway $150,000 in pro bono business the zoning ordinance last year. Tuesday. Crain’s that the MacKenzie Inc. filed a countersuit consulting services as the winners Ⅲ Wages for Michigan’s tech- show failed to against co-founder and former of an inaugural, nonprofit eleva- nology-industry workers lag those Inforum offers classes for garner tax incen- Chairman and CEO Van Conway. tor pitch competition hosted by of their counterparts nationwide women entrepreneurs tives from the The suit alleges the ousted turn- JFM Consulting Group. by an average of 24.3 percent, ac- Michigan Film In- around executive “treated the Ⅲ Three metro Detroit compa- cording to a report from CompTIA, Inforum, the professional stitute for 2015. firm as a personal expense ac- nies were listed on Fortune’s 100 an Illinois nonprofit trade associ- women’s organization, is working This means count.” Conway sued the firm last Best Companies to Work For. De- ation. While the average tech job with two local leaders in finance Partha Nandi: Nandi’s 120 to month, alleging its board violated troit-based Quicken Loans ranked in Michigan paid $84,800, the av- and entrepreneurship for a pro- May move TV show 130 production agreements by removing him as fifth, Southfield-based Credit Ac- erage tech job in the U.S. paid gram Inforum bills as the equiva- out of Michigan. employees chairman and CEO while he was ceptance ranked 27th and South- $105,400, the report said. lent of master’s classes in entrepre- might not have a on medical leave. field-based Plante Moran was 33rd. Ⅲ The Southeast Michigan Pur- neurial development for women job in Michigan. Ⅲ Innovation Ventures LLC, the Ⅲ The World of Erhard, a regional chasing Managers Index slid 5.1 business owners. “We might move to Chicago, L.A. Farmington Hills-based maker of automotive dealership group, ac- points in February to a level of 52, The goal? In Inforum’s words: or New Orleans,” he said. “We want the popular 5-Hour Energy drink, quired Jaguar of Novi for an undis- the lowest value in six months. A “Positioning Michigan as the Mid- to stay here, but economic forces could collect more than $22 mil- closed sum from Troy-based Elder reading above 50 indicates eco- west hub for high-growth women might take us elsewhere. We break lion plus interest after obtaining a Automotive Group. Erhard moved nomic growth for the index. entrepreneurs.” even on the show.” jury verdict against a New Jersey- the Jaguar dealership to its Land One class is currently underway, The financial incentives to film based competitor that has bottled Rover Farmington Hills dealership OBITUARIES meeting one Saturday a month the show in Michigan amounted to a rival “6 Hour Power” shot for amid the group’s construction of a through Sept. 17. It is taught by about 25 percent of production about 10 years. new Bloomfield Hills dealership. Ⅲ Gil Hill, a former Detroit city Patti Glaza, a vice president at Invest costs. If the show moves, Nandi Ⅲ Federal-Mogul Holdings Corp.’s Ⅲ Brothers Jeff and Kevin Gold- councilman and mayoral candi- Detroit who is managing director of said, he will make weekend trips to largest shareholder, billionaire in- man opened Chicago-based na- date known to action movie fans its First Step and Detroit Innovate continue production. vestor Carl Icahn, is seeking to buy tional franchise The Exercise Coach as the salty-tongued police inspec- funds. She has also been CEO of “My employees don’t have any the remaining stake in the South- in West Bloomfield Township. The tor in three “Beverly Hills Cop” several tech startups. choice. They have families here. I field-based parts supplier. Icahn fitness studios rely on computers films, died Feb. 29. He was 84. Applications are now being ac- don’t think many employees will Enterprises LP already owns 82 and robotics instead of treadmills, Ⅲ Thomas R. Morley, former cepted for the second master’s make the trip,” Nandi said. percent of the company. dumbbells and other traditional Morley Candy Makers Inc. president class, which will meet one Friday a Nandi is chief health editor at Ⅲ United Wholesale Mortgage, a methods to build muscle quicker. and chairman, died Feb. 29. He month from April 22 to Dec. 9. It Detroit’s WXYZ Channel 7 and prac- division of Troy-based United Ⅲ Bon Bon Bon owner Alexandra was 86. Ⅲ will be taught by Paula Sorrell, an tices at Troy Gastroenterology PC. Ⅲ Project1_Layout 1 3/4/2016 1:26 PM Page 1

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