DIA's Big Picture Is Solo Effort

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www.crainsdetroit.com Vol. 28, No. 17 APRIL 23 – 29, 2012 $2 a copy; $59 a year

Page 3 Visteon sale gives boost DIA’s big to real estate market

Hospice unit gets contract to manage ACO’s sickest picture is solo effort Museum’s hope: Car customizing biz puts

social media in driver’s sear ANDREW POTTER Copy zoo tax OK A sparse crowd watches the Detroit Pistons and the Cleveland Cavaliers last week at the Palace of Crain’s Lists Auburn Hills. Season ticket sales have dropped by half since 2007. BY SHERRI WELCH CRAIN’S DETROIT BUSINESS

Largest Oakland County The Detroit Institute of Arts plans to borrow a page employers, Page 16 from the Detroit Zoo’s playbook when it comes to Palace charge: Fix the flat long-term funding: It’s seeking a regional millage that would require approval from voters in Wayne, This Just In Oakland and Macomb counties. That makes the DIA the second local group to try Perks fly to pump up Pistons attendance to go it alone. The zoo’s millage was approved in 2008. Jaffe Raitt names Sider Given the number of such groups in the region, CEO, managing partner BY BILL SHEA strate the health of the franchise or the why are cultural organizations CRAIN’S DETROIT BUSINESS work you have to do,” said Dennis Man- seeking millage support one by Southfield-based Jaffe Raitt nion, the former Los Angeles Dodgers presi- one rather than collectively? Heuer & Weiss PC has appoint- Losing has proved to be financially dent hired last September to run Palace History and recent polling have ed Bill Sider to succeed Richard painful for the Detroit Pistons. Sports & Entertainment Inc., the umbrella shown that a consolidated ap- Zussman as CEO and manag- The National Basketball Association fran- company for the Pistons, The Palace of proach won’t work, they say. ing partner. chise lost half of its season ticket base in the Auburn Hills and its sister venues. “In today’s political and eco- Sider, 51, a past five years, a trend that’s coincided In addition to the drop in season ticket nomic climate, it’s unfortunately member of with the team’s continued abysmal play on holders, overall attendance has collapsed, not the time for a more broad- the tax prac- the court. and the team is missing based public support initiative for tice group That’s a decline of more than 6,000 out on millions in arts and culture,” said Maud and a Jaffe season tickets since 2007, repre- revenue by not Lyon, executive director of the Lyon senting about $6 million in lost Raitt attor- See Pistons, Cultural Alliance for Southeastern Michigan. annual revenue. ney since Page 25 Seventeen of the region’s largest cultural institu- 1986, said he “That’s a pretty good- tions sought a millage twice, in 2000 and 2002. The ef- expects to fo- sized drop. Your full-season forts passed in Wayne County but failed in Oakland cus on sever- equivalents often demon- County — at first by a narrow margin and the sec- Sider al legal mar- ond time by a little more. kets as possible growth That doesn’t mean it won’t be different 10-20 years drivers for the firm, includ- BUSINESS from now when a consolidated approach might ing biotechnology, the Ann DETROIT make sense, said Ron Kagan, executive director and Arbor area and wealth trans- CEO of the Detroit Zoo. fer planning. But when the zoo sought and won its bid for a 10- Zussman, 57, became CEO year operating millage in 2008, that was the case. in 2003 and continues as a See more in Crain’s And it’s still the case as the DIA seeks a millage of its partner handling commercial weekly online newscast, own, he said. real estate, business planning crainsdetroit.com/video See DIA, Page 23 and mergers and acquisitions JEFF JOHNSTON/CDB — a practice he expects will grow with the economy. “Among the achievements I’m proud of (as CEO) is that during the downturn, we did- Study: Women may find more leader roles in private biz n’t have to make any lay- offs,” he said. “We have been BY MIKE TURNER key leadership roles than the clusive groups. Beth Brooke, global vice chair of able to plan and make adjust- SPECIAL TO CRAIN’S DETROIT BUSINESS state’s largest publicly held corpo- “When groups public policy for Ernst & Young, ments without changing the rations, a new report indicates. are homoge- will discuss the “third billion” — character of this firm.” Michigan’s high-growth, entre- The Michigan Entrepreneurial nous, there’s no women from developing countries — Chad Halcom preneurial private companies may Leadership Report, released by the one there to who are entering the middle class be more likely to employ women in Inforum Center for Leadership and challenge any and will rival the billion-person Ernst & Young LLP, concludes that ideas,” George populations of India and China as the results “reinforce the long-held said. an economic force. belief in the power of diversity to The leader- The Michigan Entrepreneurial drive innovation and growth.” ship report will Leadership Report is meant to Survey respondent Claudine be unveiled George build on the Inforum Center for George, owner of Iconma LLC, a Tuesday during Leadership’s Michigan Women’s Troy-based staffing company, said an Inforum-sponsored event at the Leadership Index, said Terry Bar- her workplace experience bolsters Westin Book Cadillac in Detroit ti- clay, president and CEO of the cen-

NEWSPAPER research that shows diverse work tled “The Growing Economic Pow- teams tend to outperform nonin- er of Women.” Featured speaker See Women, Page 24 20120423-NEWS--0002-NAT-CCI-CD_-- 4/20/2012 4:43 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS April 23, 2012

MICHIGAN BRIEFS U.P. company leaves bankruptcy as three smaller lines in Wiscon- sin and Michigan. The line could because buyer likes recycling A small U.P. bank attracts a big hedge fund’s money cost up to $705 million. Months of uncertainty in U.S. Ⅲ The National Grape Cooperative, Bankruptcy Court ended last week Mackinac Financial Corp., a bank holding company Cohn LLP, said the decision by Steinhardt Capital to better known to consumers as for Manistique Papers Inc. when a based in Manistique in the Upper Peninsula, hopes invest is a big deal for Mackinac Financial. Welch’s Foods, said the recent frost private investment firm, The Water- to use an investment from a legendary hedge fund “The Steinhardt family is very sophisticated. was the worst that Michigan’s mill Group, received the court’s ap- manager to jumpstart its expansion plans. They were early pioneers in the hedge-fund busi- grape growers have suffered. The proval to purchase the assets of the Mackinac (Nasdaq: MFNC), the holding company ness,” he said. “Having them or Wilbur Ross saying cold killed 95 percent of all the 90-year-old company. for mBank, has seven branches in the U.P., three in there are compelling reasons to invest in Michigan juice grapes in Berrien, Cass and Lexington, Mass.-based Water- the northern Lower Peninsula and one in metro De- is good for the state.” Van Buren counties — “a complete mill liked that Manistique Papers troit — in Birmingham, where the company’s chair- In February, Ross’ private equity firm, New York wipeout,” in the words of a survey- was the only North American com- man and CEO, Paul Tobias, has his office. City-based W.L. Ross & Co. LLC, committed about $43 or for Welch’s. pany that produces high-value, un- Mackinac Financial recently announced it has be- million of an investment round of $174 million for Ⅲ The Soaring Eagle Waterpark coated printing and writing paper gun a $7 million rights offering of common stock for Troy-based Talmer Bancorp Inc. and Hotel in Mt. Pleasant is sched- from 100 percent recycled fiber, the current shareholders. In conjunction with that offer- That followed a commitment of just under $50 mil- uled to open after more than a Daily Press in Escanaba reported. ing, the company in March entered into a securities lion in a round of $200 million raised by Talmer in year of construction. The Morn- Terms of the sale were not disclosed. purchase agreement with the New York City private April 2010 to kick-start its growth from a one-branch ing Sun reports that the Saginaw Plans call for the Upper Peninsu- equity firm Steinhardt Capital Investors LLLP, whose co- bank. It now has operations throughout Southeast Chippewa Indian Tribe, which also la plant, about 90 miles west of the manager, Michael Steinhardt, was one of the pio- Michigan and in Wisconsin and plans to expand into operates the Soaring Eagle Casino Mackinac Bridge, temporarily shut neers of the hedge fund industry on Wall Street. Ohio, Indiana and Illinois. and Resort, plans a soft opening to- down in August after the bankrupt- Tobias said the bank wants to raise at least $11 Mackinac has more than $495 million in assets. day. So now you can take a swim cy filing but reopened in Septem- million to pay off what it owes to the federal Trou- According to its annual report to the U.S. Securities in the pool after you take a bath at ber. Plans call for the plant, about 90 bled Asset Relief Program. and Exchange Commission, the company had net in- the slots. miles west of the Mackinac Bridge, Phillip Torrence, chair of the financial institutions come of $1.5 million in 2011. Find business news from to keep operating. practice at Detroit-based Honigman Miller Schwartz and — Tom Henderson around the state at crainsdetroit .com/crainsmichiganbusiness. Action in Jackson: Manufacturers I-94 — is Jackson. Last week, giving it 8,200 jobs at 300 manufac- can Transmission Co. wants to build Sign up for Crain's Michigan Bloomberg News wrote the now- turing companies. a 175-mile line from the Green Bay Business e-newsletter at crains report they have jobs to fill ubiquitous manufacturing come- “I know companies that need 25 area to Marquette County as well detroit.com/emailsignup. Will the last person to leave back story with Jackson as the ful- welders now,” Bill Rayl, executive Michigan please … well, in light of crum. The city of 33,500, 70 miles director of the Jackson Area Manu- last week’s report that the state’s west of Detroit, led the U.S. with a facturers Association, told Bloom- CORRECTION unemployment rate fell yet again — 2.2 percentage point decrease in berg. Also in demand are program- Ⅲ Crain’s has received corrected numbers from Dykema Gossett PLLC to 8.5 percent — never mind. Leave unemployment for the year ending mers for computerized tooling that change its ranking to No. 4 on Crain’s Largest Michigan Law the lights on. in February, according to the U.S. machines, he said. Firms list, which was published April 9 and updated online April 16. One community that usually Bureau of Labor Statistics. Dykema reports 337 worldwide attorneys for January 2011 and 348 for doesn’t instantly leap into the con- The region has produced about MICH-CELLANEOUS January 2012. Its total number of Michigan attorneys for January 2012 versation about Michigan’s econo- 1,000 manufacturing jobs since is 184. The new list can be viewed at crainsdetroit.com/lawfirmslist. my — unless you’re driving along February 2010, the agency said, Ⅲ Pewaukee, Wis.-based Ameri-

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April 23, 2012 CRAIN’S DETROIT BUSINESS Page 3 Visteon sale a boost to market Inside N.Y. firm’s purchase helps valuations

BY DANIEL DUGGAN 10-year high for the sale of an office CBRE Group Inc., which represented CRAIN’S DETROIT BUSINESS building in metro Detroit. And Visteon in the sale. with a New York City investment Many large, out-of-state invest- Visteon Corp.’s sale of its head- firm as the buyer, the deal is being ment firms fled Michigan as the quarters building in Van Buren viewed as a rare good-news story value of real estate began to plunge Township isn’t just a benefit for for the region’s real estate market. and the recession set in. the company. It’s being viewed as “Seeing out-of-state investment, In the Visteon deal, New York-

a good sign for metro Detroit real at this level, is great for the market based Sovereign Partners LLC marked COURTESY OF VISTEON CORP. estate transactions as well. because it sets a higher baseline its third Michigan investment. In Visteon’s nearly 900,000-square-foot The company sold its 889,000- for every other deal to work from,” 2009, it bought the Long Lake Cross- headquarters campus in Van Buren square-foot headquarters last week said John Latessa, managing di- Township, built in 2003, sold last for $81 million, coming close to a rector of the Southfield office of See Visteon, Page 22 week for $81 million. Huron Capital makes room Hospice unit for largest fund, Page 11 Company index gets contract These companies have significant mention in this week’s Crain’s Detroit Business: Banner Sign ...... 6 Christian Financial Credit Union . . . . . 13 to manage Commercial Alliance ...... 13 CBRE Group ...... 3 Detroit Bikes ...... 26 ACO’s sickest Detroit Institute of Arts ...... 1 Detroit Lions ...... 21 Detroit Medical Center ...... 3 DMC looks to cut Detroit Pistons ...... 1 Detroit Zoo ...... 1 costs, improve care Energy Conversion Devices ...... 4 Ernst & Young ...... 1 BY JAY GREENE Glencoe Capital Michigan ...... 11 CRAIN’S DETROIT BUSINESS Great Wall Custom Coverings ...... 6 A subsidiary of Detroit-based Hos- Hantz Group ...... 14 pice of Michigan has signed a three- Hospice of Michigan ...... 3 year contract to help manage the sick- Huron Capital Partners ...... 11 est patients in Detroit Medical Center’s Iconma ...... 1 new accountable-care organization, Illuminating Concepts ...... 24 Michigan Pioneer ACO. Inforum ...... 1 The contract seeks to improve GLENN TRIEST Co-owner Dan Millen says Dearborn Heights-based Livernois Motorsports and Engineering LLC relies heavily on Jaffe Raitt Heuer & Weiss ...... 1 quality care for terminally ill pa- Facebook, YouTube and car aficionado websites to get the word out about its customizing services. tients, curb emergency room visits Kmed ...... 15 and cut costs that are especially high Livernois Motorsports and Engineering . . 3 during the last year of life. Michigan Mackinac Financial ...... 2 Pioneer is one of three Medicare Manistique Papers ...... 2 ACOs in Michigan and 32 nationally. Social media in the driver’s seat Michigan Business Connection ...... 13 Under the contract, Hospice of Michigan’s HOMe subsidiary will Michigan Pioneer ACO ...... 3 identify terminally ill patients in Palace Sports & Entertainment ...... 1 Michigan Pioneer who have fewer Car customizer revs higher after marketing tuneup Peninsula Capital Partners ...... 12 than 24 months to live and provide RGIS ...... 15 BY MEGHANA KESHAVAN keeps growing.” Millen, Dan’s broth- comprehensive Ross Education ...... 11 SPECIAL TO CRAIN’S DETROIT BUSINESS Livernois Motor- er and co-owner of medical services at Ross Mortgage ...... 14 the Medicare pa- sports, founded in Livernois Motor- An aggressive social media Signature Associates ...... 22 tients’ homes. 2000, specializes in sports. strategy — and some serious modifying, or tun- Between 2000 and Stout Risius Ross ...... 22 Research con- drag-racing street cred — is helping, racers and new- 2007, Tom Millen Superior Capital Partners ...... 12 ducted by Hospice ing Dan Millen, co-owner of Dear- of Michigan has er high-performance said Livernois Mo- United Shore Financial Services . . . . . 14 born Heights-based Livernois Mo- American cars like torsports spent about shown that its spe- torsports and Engineering LLC, United Wholesale ...... 14 cial program for Mustangs and Cor- $100,000 on magazine increse the company’s revenue vettes. It also custom advertisements each Visteon ...... 3 end-stage illness and customer base. patients saves 36 builds and installs year. It shifted gears Deremo Millen, a champion race car percent in medical engines, cylinder to save money and driver himself, said the company heads and turbo- reached out to a Department index costs, provides higher-quality care increased revenue from $3.4 mil- and reduces stress for caregivers dur- chargers, and sells An engine shows custom more targeted audi- lion in 2009 to $4.4 million in 2011 BANKRUPTCIES ...... 22 ing patients’ last 24 months of life, accessories online CNC machining at ence. The company and expects to report $5 million BUSINESS DIARY ...... 19 said hospice CEO Dottie Deremo. and at its Dearborn Livernois Motorsports. has since relied in 2012 revenue. In 2009, it had CALENDAR ...... 18 Studies have shown that medical Heights store. heavily on Facebook, about 4,600 customers and by costs during the last year of life ac- YouTube and niche vehicle mes- JOB FRONT ...... 20 2011 had 5,380. sage boards on sites like Ca- count for 10 percent of the nation’s CLASSIFIED ADS ...... 21 “It’s a tough market, but that’s Getting social $2.6 trillion health care budget. For maro5.com to market its services. the fun,” Millen said. “This is a KEITH CRAIN ...... 8 those age 65 and older, the last 12 Much of the company’s im- Instead of the $2,500 it might break-even business, since we LETTERS ...... 8 months of life account for 27 percent proved revenue picture is attrib- cost to run a magazine ad, the invest everything we earn back uted to a calculated change in its OPINION ...... 8 See Hospice, Page 24 in the company, but our revenue marketing tactics, said Tom See Driver, Page 23 OTHER VOICES...... 9 PEOPLE...... 20 Unlimited access to articles Making it in Detroit RUMBLINGS ...... 26 THIS WEEK @ Subscribers can dig deep — back to 1994 Check in at DetroitMakeItHere.com for a — at crainsdetroit.com, a powerful research closer look at creative entrepreneurs and WEEK ON THE WEB ...... 26 WWW.CRAINSDETROIT.COM tool for business in Southeast Michigan. how they manage their businesses. 20120423-NEWS--0004-NAT-CCI-CD_-- 4/20/2012 4:42 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS April 23, 2012 ECD bidder also plans to bid for facilities of United Solar Ovonic

BY TOM HENDERSON obtain additional equity financing, CRAIN’S DETROIT BUSINESS we may be required to dilute the in- They’ve really terest of existing shareholders.” The Salamon Group Inc., a “ For the year that ended Dec. 31, At the heart of Here you will enjoy casual or Modesto-Calif.-based builder and improved that the company reported revenue of the Detroit Golf Club are ﬁne dining, annual club events manager of renewable energy pro- $3,126 and a net loss of $1.5 million. two Donald Ross designed and many fun activities for jects that made an offer last week product, and it’s got It had no revenue in 2010 and a loss championship courses. The your family and guests. to buy the shares of Auburn Hills- a nice niche. of $121,363. golf facilities are complete based Energy Conversion Devices Salamon has been busy lately, Inc., also plans to offer to buy the ” though. On April 12, it announced with a well stocked pro Our promise is to deliver the manufacturing facilities of its Unit- Michael Matvieshen, it had retained Northland Capital shop, practice utmost in ed Solar Ovonic LLC subsidiary. Salamon Group Inc. Partners Inc. of Toronto as its in- range and an satisfaction The offer must be received by vestment banker to help with fi- outstanding with an Tuesday, when auction bids for placed on roofs, but are easier to nancing, acquisitions and possibly group of outstanding United Solar’s assets will be work with and put less loads on getting listed on the Nasdaq and opened, according to Kim Paulson, structures. Toronto stock exchanges. teaching golf United Solar’s senior communica- “They’ve really improved that On April 13, Salamon announced professionals. experience tions manager. product, and it’s got a nice niche. it had closed on the $8 million ac- while The Birmingham-based invest- It’d be a shame if those facilities quisition of Eco Energy Solutions Pty The rambling building ment banking firm of Quarton Part- closed down. I’d love to buy them if Ltd., an Australian maker of mate- Old English camaraderie ners had been engaged when ECD we can put a deal together,” said rials used in solar, wind turbine filed for Chapter 11 bankruptcy Matvieshen. and hydroelectric energy projects. Style clubhouse designed by in a family friendly protection in February to solicit He said the previous bid for the On April 19, Salamon announced Albert Kahn is remarkable environment. At DGC you bids for the subsidiary’s assets. shares would allow him to buy it had begun a 600-kilowatt rooftop with its sweeping wings and can have it all. Contact us to When ECD filed for Chapter 11 ECD’s loss-carry forwards to be solar installation in Tennessee numerous terraces and patios. inquire about joining today. bankruptcy in February, it listed used against his company’s future through its Sunlogics Power Fund assets of $986.3 million and liabili- profits. ECD has about $1 billion in Management Inc. division. ties of $249.1 million. It didn’t break operating losses that can be ap- That division owns 30 percent of 'HWURLW*ROI&OXE out United Solar’s assets. At the plied to future profits to reduce tax Sunlogics PLC, one of the portfolio Detroit’s First — Detroit’s Only — You Belong at DGC time, the company said the filing liability. companies of General Motors Ven- was driven by $263 million in notes Matvieshen said he has offered 5 tures LLC, GM’s venture capital 17911 Hamilton Road — Detroit, MI 48203 due next year that it couldn’t repay. million shares of his own compa- arm. In July, GM Ventures an- Contact Carol Koehn, Membership Director, Paulson said she couldn’t com- ny’s stock, which began trading nounced it had invested $7.5 mil- at (313) 927-2457 or [email protected], ment on whether any bids have Friday at 41 cents, in exchange for lion in Rochester Hills-based Sun- or visit www.detroitgolfclub.org. been received for the assets and ECD shares. logics, which builds and installs couldn’t confirm or deny that the “If I can get $1 billion in loss-car- solar projects. Salamon Group (Pinksheets: ry forwards for a couple of million ECD was founded in Detroit in SLMU.PK) had made a bid for dollars, that’s a great deal for us,” 1960 by Stan and Iris Ovshinsky shares of ECD stock. he said. “And it at least gets the and lost money nearly every year. Michael Matvieshen, Salamon’s shareholders something, so I ex- A rare exception came during president and CEO, told Crain’s on pect the board will put it to a vote the brief glory days of 2008. Driven Thursday that he has told ECD of shareholders. As it stands now, by high-volume sales to big con- management in a letter that he shareholders won’t get anything struction projects in Europe fi- would make an offer for the manu- for their stock.” nanced in part by government sub- facturing facilities in Greenville Salamon has been growing fast, sidies for green projects, ECD and Auburn Hills and had been but has issues of its own regarding reported net income of $7 million granted access to company data. losses and operating capital. in the first quarter, which sent the “We’re looking at the data. Unit- In its annual report, filed on stock from a low of $20 in January ed Solar has 120 megawatts of pro- April 13, the company said: “We to a high of $83.33 in June. duction capacity, and if you can get have suffered recurring losses It made another $14.2 million in that for $60 million or $70 million, from operations, we have a work- the third quarter. you’re getting a deal,” he said. ing capital deficit and a deficit ac- And then the recession hit and “The solar product they make is cumulated during the develop- government subsidies for con- excellent,” said Matvieshen, refer- ment stage. These items raise struction projects dried up, along ring to the flexible solar roofing ma- substantial doubt about our ability with ECD revenue. terial United Solar Ovonic makes in to continue as a going concern. Last November, the company large continuous rolls that can be “Even though we believe, with- announced that it was suspending cut into smaller pieces resembling out assurance, that we will obtain manufacturing to reduce large shingles and put on roofs to convert sufficient capital with which to im- stockpiles, furloughing 400 em- sunlight into energy. plement our business plan on a ployees and terminating 500. The company’s thin-film flexible limited scale, we are not expected Tom Henderson: (313) 446-0337, materials are less efficient than to continue in operation without [email protected]. Twitter: Consultative traditional crystalline rigid boxes an infusion of capital. In order to @tomhenderson2 Professional life insurance counseling in a non-salesy environment Crain’s wins honors for reporting, design, website Crain’s Detroit Business and sev- gan won a first-place award for in- Health System’s plans to move. eral members of its newsroom staff vestigative reporting, for a story Assistant News Editor Jeff John- We work with our clients and their advisors to: received accolades in the 2011 Ex- on the regulation of Michigan casi- ston won first-place awards for cellence in Journalism awards of no contractors. front-page design and inside news Reduce estate and income tax Enhance fixed income the Detroit chapter of the Society of Other reporting awards: Re- page design. Johnston received a yields Solve family and business issues Improve Professional Journalists. porters Dustin Walsh and Halcom third-place award in informational existing life insurance policies. Awards were presented April 18. won a third-place automotive re- graphics design for the map that In the online journalism category, porting award for coverage of the ran as part of the Living & Invest- Crain’s website, crainsdetroit.com, re- decline and sale of W Industries Inc.; ing in the D annual special supple- ceived a first-place award for break- reporter Kaffer won an honorable ment on development in Detroit. ing news reporting for coverage of mention in spot news reporting for Copy Desk Chief Gary Piatek and changing plans for light rail and a story on the rapid turnover of the copy desk received a first-place rapid buses in Detroit. Reporters mayoral appointees at Detroit City award in headline writing. Nancy Kaffer, Bill Shea, Daniel Dug- Hall; and Duggan and Senior Re- A total of 183 Excellence in Jour- BIRMINGHAM, MICHIGAN 248.731.9500 gan, Sherri Welch and Chad Halcom porter Jay Greene won a third- nalism honors were awarded to area WWW.SCHECHTERWEALTH.COM covered the breaking story. place online general news report- print, broadcast and online journal- Deputy Managing Editor Dug- ing award for coverage of Trinity ists for their work during 2011. DBpageAD.qxp 4/5/2012 5:04 PM Page 1 20120423-NEWS--0006-NAT-CCI-CD_-- 4/20/2012 5:56 PM Page 1

Page 6 CRAIN’S DETROIT BUSINESS April 23, 2012 Do and dye: Company finds signs of growth in custom fabric printing

BY LAURA BLODGETT interior design and fashion indus- jobs, including suede cushions Imaging Association in Fairfax, Va. SPECIAL TO CRAIN’S DETROIT BUSINESS tries, Piach launched a new product with black-and-white images of the Fashion and interior design pre- line called Digital Print Specialties. 1940s for a restaurant, and sent strong opportunities for digi- Banner Sign Co. Inc. of Hazel By using its existing dye sublima- acoustic panels with images of tal printers because these areas are Park, an 88-year-old family-run tion printing process, a type of high- Italy for a home theater. not yet oversaturated, Marx said. printing company, boasts clients quality printing, the company could The beauty behind the new line “We’re going to see the fashion such as Olympia Entertainment — print artwork such as photos and for Piach is that she is reusing ex- and interior design markets go re- through which Banner does work patterns onto a wide range of mate- isting equipment. ally closer to a one-to-one ap- for the Ilitch family-owned Detroit rials to create custom furniture, cur- “There was very little setup cost proach,” he said. “Interior design Red Wings and Detroit Tigers. tains, wall coverings, tile, clothing besides material,” said Piach. is no longer ‘educated shopping’ Other bigger-name clients in- — even hospital privacy curtains. “Now I wake up every day and just (such as) going through wallpaper clude DTE Energy “I really followed the trend in the can’t wait to get to work.” books. It’s more about specifying, Co. and Super U.K. and Europe, which is a little She has hired a full-time seam- ‘Here’s the design, here’s what we Bowl contracts more advanced in the whole digital stress and plans to hire a salesper- want.’ If you want a couch in a cer- when it was in textile world,” Piach said. ”They son and another production em- tain print or something utterly town in 2006. were really expanding what they ployee. unique for your interior environ- But that does- printed on.” “We’re at the point now where ment, dye sublimation printing is n’t mean things In January 2011, she was online we have to have a discussion with kind of leading the charge.” are easy going COURTESY OF BANNER SIGN CO. INC. Daniel Cascardo, a fine arts and came across information on This chair was covered with Paris- someone regarding financing,” for the compa- the Toronto Interior Design Show, themed fabric printed by Nicole said Piach, who wants to put to- painter in Royal Oak who hired Pi- ny’s main busi- Canada’s largest design fair. Piach Piach’s Banner Sign Co. gether sales kits to call on local in- ach to print his paintings onto ness of digitally hopped on the train to check out terior decorators, architectural scarves, said there is a great need Piach printing ban- her competition and was encour- veloping her product line, she ex- firms and stores. for this printing service in the De- ners and fabric graphic materials. aged when she realized no other hibited at the Toronto show this Piach also linked up with a fash- troit area. Banner faces the same problem as company at the show was doing past January. ion design student at Parsons, a de- “There’s nobody in this area that other printers: Advances in tech- this kind of design work. “After three days, I had over 400 sign school in New York City fund- does this kind of thing. Most places nology mean anyone with a com- To test the waters, Piach exhib- qualified requests for product in- ed in part by Donna Karan and are in California, New York or puter can run a graphics business, ited at the Michigan Design Center’s formation and quotes,” said Piach. Diane von Furstenberg. The student overseas,” said Cascardo, who and prices have fallen. At the same 2011 MIDEX show in Troy a few Interior designer and HGTV per- approached her to print the entire once ran a clothing line in Chicago. time, national franchisers like Alle- months later with a few products sonality Debbie Travis wrote line of her upcoming spring exhibit. Cascardo agreed that consumers gra Network have taken a bite out of she created using stock photo im- about Banner’s line in her weekly “I’m doing this pro bono to get will see more designers using digi- the business for mom-and-pop sign ages as source material for the syndicated column. my name out in New York,” said tal printing. printing shops. prints. Last year, Banner had revenue Piach. “My name will be in all the “The industry is leaning toward Watching sales shrink “There was a buzz about of $600,000, and it now employs five catalogues and printed materials. it because of the ability to do small during the past few years, this display with a really people — quite a dip from its high It’s a foot in the right direction.” runs in full color, and the variety (of Nicole Piach — co-owner of cool chair, which was point in the early 1990s of $1.5 mil- Piach’s new line follows an in- images) is unbelievable,” he said. lion and 12 employees. However, Banner with her husband, This story (mine),” said Piach, who dustry trend toward an increasing Great Wall Custom Coverings Inc. Nick — tried to figure out originally had designed a chair with Piach hopes the new line will in- demand for mass customization of in Ferndale is another digital how to expand using their appeared at images from Paris and re- crease revenue to between $700,000 products, according to Dan Marx, printer beginning to move away existing equipment. www.detroit upholstered it. and $750,000 this year. vice president of markets and tech- from commercial work into the in- With an eye toward the makeithere.com After researching and de- Piach has completed several nologies at the Specialty Graphic terior design market, starting its own line of wall coverings. Launched eight years ago, the company has expanded its print-for- pay work in banners, trade-show displays and custom graphics — everything from backdrops to wallpaper for bedrooms, home theaters, bar mitzvahs, schools, corporate offices and retail outlets such as Livo- nia-based Just Baked LLC. “The stuff we’re doing is not really being done anywhere else, and the market is wide open at this point,” said Andi Kubacki, co-owner of Great Wall Custom Coverings with Joshua Young. Kubacki said Detroit’s creative world is humming right now, with efforts such as the Detroit Creative You Deserve to See All of Your Commercial Real Estate Options Corridor Center adding momentum. “There is a big push with a lot of textile artists, graphic designers, interior designers and software engineers starting to move here. It’s starting to become a creative hub. I think the Detroit area is a great nerve center for this right now,” he said. Although Piach has not ruled out mass-producing her own line, she is more interested in becoming a resource for designers who already have a vision and need someone to manufacture their work. “(Designers) always had stock Real Estate Strategy fabrics and stock tile. Now there’s a whole customized world they are Tenant Representation able to provide their clients,” Pi- ach said. Buyer Representation She also plans to connect with more fashion and interior design Project Feasibility students and become more involved in local creative efforts like Before you make a move, let us uncover every commercial Construction Oversight the Michigan F.A.S.H. (Fashion, real estate option. As an unbiased, tenant representative, Arts, Sound, History) Fest and the Incentives Detroit Creative Corridor Center. we bring more thought per square foot. “I want to concentrate on the lo- Lease Administration cal economy,” Piach said. “There is pmcresa.com 248.223.3500 a lot of talent in this city and the sur- rounding area, with a lot of firms that do builds all over the U.S.” 20120423-NEWS--0007-NAT-CCI-CD_-- 4/20/2012 4:44 PM Page 1

April 23, 2012 CRAIN’S DETROIT BUSINESS Page 7 Stainmaster carpet maker may help ease shortage of auto resin

BY DUSTIN WALSH and brake tubing components. half the world’s supply of PA-12, for IHS Chemical, which has its auto- ers have not announced any CRAIN’S DETROIT BUSINESS “We’re doing what we can to fill according to the research firm IHS motive practice in Northville. “This planned shutdowns or cuts in their the immediate need,” said Jodie Chemical. can help avoid a lot of replacement sales forecasts. The makers of Stainmaster car- Stutzman, manager of business and Bill Kozyra, CEO of Auburn engineering activities.” Mike Goss, general manager of pet may help prevent a shutdown external communications at In- Hills-based TI Automotive Inc., rec- Stutzman said Invista does have external affairs for Farmington of automotive production result- vista. “The CDT operations we have ognized the threat and issued a let- limited excess capacity at its Hills-based Toyota Motor Engineer- ing from a recent shortage of resin. are running hard, and we’re work- ter April 12 to Ford Motor Co., Gener- Texas plant. ing & Manufacturing North America That development follows a ing to make available as much of al Motors Co., Toyota Motor Corp. and Invista is the only U.S. producer Inc., said in an emailed statement: meeting in Troy last week to talk the material as possible right now.” Volkswagen AG, according to a of CDT, Blanchard said. “The material provided by Evonik about how to grapple with the Stutzman declined to identify Bloomberg report. Automakers and suppliers are in is in our North American supply resin shortage. auto companies purchasing CDT On April 17, nearly 200 executives contact with alternative makers of chain, but until we complete an as- Wichita, Kan.-based Invista Inc. from Invista. from eight automakers and 50 sup- PA-12, including Arkema, Japan’s sessment with our suppliers, the confirmed that its Victoria, Texas, The shortage stems from a pliers met in Troy to discuss the im- Ube Industries Ltd. and Switzerland’s impact is unknown. plant is working at capacity to pro- March 31 explosion at Germany’s pact and potential shutdowns. Ems-Chemie Holding AG. “At this time, there is no need to duce Cyclododecatriene, or CDT — Evonik Industries AG that killed two. Invista’s additional production of DuPont Automotive in Troy is also adjust production.” a chemical and a key ingredient in Evonik and French competitor CDT “would be the most direct solu- working on alternatives to PA-12 Dustin Walsh: (313) 446-6042, the widely used automotive resin Arkema SA, which purchases CDT tion to the CDT shortage,” said Paul for the industry. [email protected]. Twitter: PA-12, which is used to make fuel from Evonik, account for about Blanchard, senior principal analyst Despite the concern, automak- @dustinpwalsh Fiero site may be converted to biomass plant

A biomass plant could be coming to Pontiac. The Oakland County Board of Com- missioners last week approved reso- lutions that help pave the way for part of the former General Motors Fiero assembly plant to be converted to a biomass plant. Quality. Innovation. Commitment. Traxys Power Group Inc. received approval for $28 million in financing from the Oakland County Econom- ic Development Corp. to help pur- At McLaren, we have a long history of medical innovation and a commitment to chase and convert a DTE Energy Co. power station and nearby land research. We’re always looking ahead and moving forward. And we’re expanding on Baldwin Road in Pontiac. our reach, building stronger communities and healthier individuals. The purchases are still being ne- gotiated, said Lynda Earhart, senior business development repre- Whether it’s offering the largest cancer care network in the state, building Michigan’s sentative for the EDC. first-ever proton therapy center or pioneering highly advanced minimally invasive If the sales go through, DTE surgical procedures, we continue to invest in new technologies and treatments to would buy the energy produced at the site under a 20-year agreement, improve the lives of Michigan’s residents. according to the resolution. The agreement would help DTE meet its > Advanced technology and state-of-the-art medical treatment 2015 goal of obtaining 10 percent of > More than 200 locations throughout a 48-county region its energy from renewable sources. > The Fiero Powerhouse, part of Ten medical centers across the state the former Fisher Body Plant, was > More than 11,000 network physicians and 17,400 employees purchased by DTE Energy through a ground lease, according to the RACER Trust. However the trust re- tains ownership of the 14 acres of Visit mclaren.org to learn more. land at the site. The site is near the larger GM Pontiac North Campus. “The trust is very excited about being a part in capturing what will be a significant economic develop- “At McLaren Health Care, we’ve kept our ongoing pledge to provide the best value in high-quality ment opportunity for the city of health care and the latest medical advances to the people and communities we serve. In 2011 Pontiac,” said Bruce Rasher, rede- velopment manager for RACER. alone, McLaren’s community benefit totaled nearly $140 million. Our growth is a direct result of New to the site would be a wood our belief that there is nothing more important than improving people’s health and lives.” structure covering 240,000 square feet, new conveyors, magnets and a Philip A. Incarnati, President and CEO of McLaren Health Care wood storage area. Interior changes would include boiler modifications, emissions upgrades to equipment and a rebuilt turbine. The plant would be expected to use mainly wood waste, traditional- ly burned to produce steam that turns a turbine generator and cre- ates electricity. The total project would cost $34 million, $28 million of which would be financed with private activity bonds and the rest covered by Traxys equity. Its par- G-3235 Beecher Road, Flint, MI 48532 | (810) 342 1100 | mclaren.org ent company is New York-based Traxys North America LLC. — Ryan Kelly 20120423-NEWS--0008-NAT-CCI-CD_-- 4/20/2012 5:50 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS April 23, 2012 OPINION DIA regional tax should go on ballot

he push to get a regional tax to support the Detroit Institute of Arts on the Aug. 7 ballot encountered early opposition T from anti-tax forces in Macomb County. As Sherri Welch reports in a story on Page 1, the DIA is seeking voter approval for a 10-year, 0.2-mill tax that would cost the owner of a home valued at $150,000 about $15 a year. In exchange for approval, admission to the DIA would be free for residents of Macomb, Oakland and Wayne counties. Oakland commissioners are expected to review the proposal in May; a Macomb commission committee said Friday it would reconsider the measure. It is approved for the ballot in Wayne County. We prefer a broader cultural tax that would support more institutions, but such a tax has failed twice, albeit by small margins. The DIA insists its research shows taxpayers favor individual taxes rather than an umbrella tax for multiple organizations. There’s a precedent; after the earlier millage failures, the Detroit Zoo successfully sought its own millage. Now, the DIA would like to do the same. The DIA is one of the region’s cultural gems. To attract world-class talent, a region needs world-class amenities like the DIA. Voters should decide for themselves. Commissioners in all three counties should allow the proposal to move to the ballot. TALK ON THE WEB Drop PPT, but replace revenue From www.crainsdetroit.com sands of people would lose their jobs. Re: Coca-Cola to help Pure Michigan Reader responses to stories and Speaking of taxes, state lawmakers are considering bills to And there would be no public Congratulations, and thank you, blogs that appeared on Crain’s school system, college costs would eliminate the personal property tax on business equipment. Coca-Cola. I will never, ever pur- website. Comments may be be astronomical, no state police, We support that elimination, but only if a sensible and eq- chase (that which must not be edited for length and clarity. no Secretary of State or Licensing mentioned). I like Coke Zero too uitable way of replacing the revenue is found. Without that, Bureau, no FBI or Supreme Court. much. The constant movement of the wa- cities already rocked by state revenue sharing cuts will be ... Are you going to hire all the peo- MonMark Group ter’s currents will light a lot of ple who will lose their jobs if the harmed, from police and fire protection to basics like lighting homes and businesses. Projects personal property tax is eliminat- and street repair. bringing this technology to the Re: Detroit budget: Higher stakes ed? This debate is really a piece in a much bigger puzzle. Lega- vast amount of unused power in Bill T Cat cy costs — including health care for retirees — are forcing I know that “everyone must “our water” are welcome. share the pain,” but it seems coun- Lawrence Muhammad cities to reduce operating budgets to meet those obligations. terproductive to cut positions in fi- If the Legislature and governor But cutting basic services only makes communities less desir- nance, particularly any jobs that remove revenue sources from lo- able to live and work in. raise or collect money. Re: MSU proposes ag center in Detroit cal governments that are already So, two things should be occurring simultaneously as the Bill T Cat Go Green — literally! cutting essential services due to fi- Walt nancial hardship, they ought to, at state moves to eliminate the personal property tax. Re: Turbine farm in St. Clair River a minimum, replace the monies from First, the state should help to create a statewide health plan Re: Eliminating personal property tax state coffers. for public-sector retirees that requires higher contributions What a fantastic idea. I hope they Alex Hardesty from retirees. Streamlining plans — as the United Auto Work- are wildly sucessful. Let’s eliminate all taxes. Then XboltX you can hire a lot more people. Of Re: GVSU to renovate Barden building ers’ retiree health plan has done — reduces costs overall. Such course, that would mean that gov- a strategy could free up dollars for current city services. Current connection’s efforts are ernments at all levels would go Clever folks, these GVSU people. Second, the state should create a way for local communi- right on time and on the money. bankrupt — thousands and thou- See Talk, Page 9 ties to tax themselves — a regional sales tax, perhaps — if they wish to further invest in what are deemed local priorities, Send your letters: Crain’s Detroit Business will consider for publication all signed letters to the editor that do not defame individuals or organizations. Letters may be edited for length and clarity. Email [email protected] whether transit or roads.

KEITH CRAIN: The economy could be anybody’s fault There seems to be no question many people and too add employees. ployee gains or the additional ca- the lack of growth in our economy. that the U.S. economy is slowly but much capacity doing Governments never pacity. They both will be right in their surely improving. too little. learned that lesson. It It would seem that the real solu- own worlds. Michigan and the auto industry When it was neces- seems many companies tion is simply growth. If we If we want to see more people seem to be at the forefront of this sary to cut, businesses had to declare bank- get back to where we were in working, we simply have to grow economic recovery. across the country ruptcy in order to the economy, we’re still going to the economy. Getting back to I have no doubt that there are slashed payroll and ex- break open union con- have a lot fewer jobs. We have to where we were before the reces- mixed emotions among politi- penses to stay afloat. tracts, cutting people, expand if we want to see more sion isn’t going to be enough. cians, depending on whose side of Unemployment soared. pay or both to stay jobs. And somehow, we’re going to the aisle they happen to sit, as to It’s still way too high. alive. But governments So both political parties are go- have to teach governments — lo- whether or not they’re rooting for And it’s going to be are still running their ing to be able to use the economy cal, regional and national — that this continual improvement. tough to cure that. businesses about the for their own political gain. The they, too, have to learn to do more But one thing this most recent Corporations learned same as before the fi- Democrats will brag about the eco- with less, even though they are recession has once again proven to do a lot more with a lot less, and nancial crisis. nomic growth and the recovery. late to the party. is that corporations, like govern- productivity skyrocketed. So it’s So we’re going to have a mod- The Republicans will talk about That’s just the way it’s going to ments, were bloated with too going to be tough to get them to est, slow recovery without the em- the high unemployment rate and be from now on. 20120423-NEWS--0009-NAT-CCI-CD_-- 4/20/2012 10:43 AM Page 1

April 23, 2012 CRAIN’S DETROIT BUSINESS Page 9 OTHER VOICES: Region could see payoff from air cargo

On Jan. 23, an MD-11 acres of undeveloped land ternational connecting hub air- for aircraft maintenance, manu- freight service with an eye toward wide-body aircraft between and around De- port with a powerful array of inter- facturing or even aircraft recy- possible future expansion. touched down at Detroit troit Metropolitan and national and domestic routes and cling. Hopefully, some day in the fu- Metropolitan Airport and Willow Run airports. an efficient airfield with room to With more than 1,200 aircraft ar- ture, our MD-11 freighter will not taxied to a building that The goal is to create a grow. Our region has the added ad- riving at and departing Metro be taxiing up to an empty building, has been empty since business development hub vantage of a reliever airport, Wil- every day, we believe there is but to one buzzing with state-of- June 2009 — a victim of that takes advantage of low Run, just down the road, dedi- great potential for increasing belly the-art freight handling equip- our nation’s economic re- the area’s multi-modal ac- cated primarily to cargo and cargo — cargo stored below the ment and teeming with workers. cession. cess, including air, rail general aviation. main deck on scheduled passenger Such activity would not only gen- While aircraft land at and interstate highways. A recent land-use study conduct- aircraft. erate new revenue for the Airport Metro more than 600 According to proponents, ed by the Airport Authority has We need to strategically develop Authority, but also stimulate jobs times every day, this one Mary Zuckerman such a long-term develop- identified economic development the infrastructure necessary to and future economic prosperity symbolized new hope for what ment could add $10 billion in eco- and revenue enhancement oppor- more quickly and more easily for our region. could be a more prosperous future nomic activity and more than tunities at both airports. Property transfer those goods from aircraft Mary Zuckerman is executive for Metro Airport. 64,000 jobs in our region. around Metro’s active airfield has to warehouse to trucks to high- vice president and chief operating This was the beginning of week- More than anything, what great potential for freight and lo- way. officer for the Detroit Medical Cen- ly scheduled freight service be- makes the aerotropolis concept vi- gistics development, while Willow Lufthansa Cargo is monitoring ter and is chairperson of the Wayne tween Detroit and Frankfurt, Ger- able is the presence of a major in- Run offers great new opportunities the performance of its new Metro County Airport Authority Board. many, operated by Lufthansa Cargo. Germany, it turns out, is Michigan’s fourth-leading export market, after Canada, Mexico and China. It is no coincidence that carriers at Detroit Metro provide nonstop flights to nine of the top 10 nations that trade with Michigan. In recent years, Metro has completed A LOAN WITH massive infrastructure upgrades, with new runways, terminals, parking and roads to accommo- date passengers. Now is the time to address cargo. As chair of the Wayne County Airport Authority Board, I strong- ly support efforts by airport management to explore the development of infrastructure to process air cargo. In calendar year 2011, passenger traffic at Metro Airport was flat when compared to 2010. Cargo however jumped 6.8 percent. A CITIZENS BANK LOAN LETS YOU FOCUS ON THE FUTURE ... because the businesses Developing a modern, efficient and convenient infrastructure to that will succeed tomorrow are the ones that make the right choices today. They are handle cargo would nicely comple- ment the vision of the Detroit Re- led by individuals who see opportunity for growth and expansion, and take action with gion Aerotropolis, which seeks to complete conﬁdence. A loan from Citizens Bank will keep you moving forward and attract global businesses to 60,000 never wondering, “What could have been?”

LETTERS CONTINUED Get the loan you deserve now. To make an appointment with a Citizens Banker, ■ From Page 8 call 800-946-2264 or visit CITIZENSBANKING.COM/BUSINESS. They “might” have a sign on this building. Good guess, given its location. William J

Re: Hello, Detroit. Goodbye, Detroit – why I love this frustrating city Send your son to Waldorf and stay put. If no one will stay once they have kids of school age, nothing is going to happen in Detroit. The only way to solve the schools issue is to find and make alternatives while staying in the city. Bienfait

Re: Support for ‘DiscoTech’ event MOCAD wants to support the local region. Interesting. Too bad they didn’t think about that when they hired architects from New York to plan their upcoming project. RobertArch

Re: Conyers transferred to Va. jail Speculation can be dangerous, but when it comes to guessing why Monica Conyers got moved from Club Fed to some crappy county jail, it’s fun. … Maybe she referred to the warden as Shrek or tried to arrange for kickbacks at the prison commissary. Timothy Dinan DBpageAD.qxp 4/17/2012 1:37 PM Page 1 20120423-NEWS--0011-NAT-CCI-CD_-- 4/20/2012 11:29 AM Page 1

April 23, 2012 CRAIN’S DETROIT BUSINESS Page 11

REPORTER’S NOTEBOOK Extra

Tom Henderson covers banking, CREDIT UNION LENDING finance, Vote nears on bank-opposed bill technology and biotechnology. to expand commercial lending Call (313) 446- by credit unions, Page 13 0337 or write thenderson @crain. com. Tom Henderson Expect M&A “ We were all in agreement deals to heat up we wanted to stay downtown. Two recent M&A deals involving We all love it here in the Michigan community banks are just the beginning, according to Phillip Guardian Building. Torrence, chairman of the financial ” institutions practice at Honigman Brian Demkowicz, Huron Capital Partners LLC Miller Schwartz and Cohn LLP. “You’re going to see some very interesting transactions being structured here, starting at the end of the second quarter and going right into the third and fourth quarters,” he said. Nationally, the M&A surge has begun. There were 21 acquisitions in March, which capped the best quarter in two years. On April 4, the American Banker predicted a strong pace of M&A activity through 2013. The first Michigan deal was the surprise announcement on March 28 that a New York hedge-fund pioneer, Michael Steinhardt, was investing up to $11 million in a small Upper Peninsula bank-holding company, Mackinac Financial Corp. The second deal was another surprise announcement March 30, that Columbus-based Huntington Bancorp Inc. had bought Fidelity Bank’s 15 branches in Southeast Michigan after Fidelity’s holding company was shut down by state and federal regulators. “The Steinhardts — Michael and his son, David — are very sophisticated investors. When someone like them or Wilbur Ross says there are compelling reasons to invest in Michigan, that’s great for the state and it’s great for the banking community,” said Torrence, referring to previous investments by Huron Capital makes room JOHN SOBCZAK New York-based W.L. Ross & Co. in Troy- Peter Mogk (from left), John Higgins, Mike Beauregard and Brian based Talmer Bancorp Inc. Demkowicz are longtime partners in Huron Capital Partners LLC, which is And proof that now most state expanding as it prepares to raise a fund of about $400 million. banks have returned to profitability, for fourth and largest fund many are underpriced. BY TOM HENDERSON Huron was also dealmaker of the year for “After we add one or two more platform In the past two years, most M&A CRAIN’S DETROIT BUSINESS 2007 and runner-up for 2008 and 2009. companies, we’ll begin fundraising. Funds activity in Michigan has involved Federal Deposit Insurance Corp.-assisted sales In 2010, New York-based M&A Advisor, a generally get larger, but we’re focused on of banks being closed by regulators. uron Capital Partners LLC has begun a national trade association, named Huron as the lower middle market, so we only want major expansion of its 27th-floor head- its private equity firm of the year for the to get so big,” he said. “About $400 million There may still be a few FDIC- H quarters in the Guardian Building in sale of one of its portfolio companies, St. would be my guess. It could be a little larg- assisted sales — Ann Arbor-based Michigan Commerce Bank and the First downtown Detroit as it prepares to start Clair-based Ross Education LLC, to a New er, but that would be a reasonable esti- National Bank in Howell continue to raising its fourth and largest fund of about York private equity firm for $232 million, a mate.” struggle — but most deals this year will $400 million. return on investment of almost 19 times. “It’s terrific news,” said involve traditional M&A, said Torrence. Workers have been knocking down Huron’s investment allowed Paul Jason Duzan, managing He said there are several reasons: walls as the most active private equity Mitchell, now Ross’ executive chairman, to director of Birmingham- Most state banks are back in the black firm in the state adds 3,000 square feet to buy out his two partners and provided capi- based Glencoe Capital and need of capital to begin growing the 7,000 it already has. According to man- tal to make much-needed capital improve- Michigan LLC, an affiliate again; those that are public are trading aging partner Brian Demkowicz, the firm ments. of Chicago-based Glencoe well below book value; and buyers will has hired four invest- “What Huron brings to the table is an Capital LLC. “Huron is a be creative when it comes to putting a ment managers in the ability to look at growth and plan for it in a top-quality firm with a price on still-risky loan portfolios. ALSO GROWING past two months and disciplined manner,” said Mitchell. “A lot terrific track record of de- “You’ll see contingent-value pricing Mortgage lender plans to hire three or of businesses are run by entrepreneurs who ploying capital and hav- driving deals,” he said. Regulators may Shore eyes expanded four more by the end have no idea how to get to the next level. ing successful exits. undervalue a bank’s loan portfolio; as services, Page 14 of the year. The founders have always done things a Duzan “It’s encouraging that a the economy improves, loans now Huron currently certain way and don’t always have a criti- Michigan private equity company is able to considered nonperforming may do employs 18. Four partners — Mike Beaure- cal eye. You get that critical eye and a per- raise money in this environment. It makes much better than regulators expect. gard, John Higgins, Peter Mogk and spective on how to grow the business from this more of a private equity hub, which is Contingent pricing lets a seller get Demkowicz — have been with the firm the people at Huron.” good for all of us in the business.” more down the road if that ends up since shortly after it was founded in 1999. The quick pace of acquisitions from Duzan declined to comment specifically being the case. Christopher Sheeren is a fifth partner. Huron’s $350 million Huron Fund III LP, about his fundraising plans, but Glencoe is One other driver behind upcoming Last week, Huron was honored as deal- which it finished raising in January 2008, in a similar position to Huron. Its first mergers? Some founders of surviving maker of the year at the annual Crain’s means a need to start raising fund four by three funds are fully invested; the only community banks long ago stopped M&A awards at Somerset Inn in Troy. During late this year or early next. fund with money left is the $150 million having any fun and are waiting for a chance to get out of the business. the year, it completed eight acquisitions and Demkowicz said the company has 10 port- Michigan Opportunities Fund it invests on be- three divestitures for a total deal value of folio companies — three from the second half of the state’s InvestMichigan pro- “Community bankers are saying, $430 million, including $108 million returned fund and seven from the third. The second gram. ‘This isn’t why I got into this,’ ” said Torrence. to its limited partners in exits that brought a fund is fully invested and the third has five-times return, according to Demkowicz. about $150 million left. See Huron, Page 12 20120423-NEWS--0012-NAT-CCI-CD_-- 4/20/2012 10:44 AM Page 1

Page 12 CRAIN’S DETROIT BUSINESS April 23, 2012 Finance Extra Huron: Tearing down to build up, raise new fund ■ From Page 11 Duzan said the Opportunities ly sound but aren’t operating at Fund is nearing its end, too, with their full potential. Huron general- about $15 million available for new ly invests between $20 million and portfolio companies. $40 million up front with add-on “We’re hoping to do at least investments to grow the business, three more deals and, depending and often adds to the management on how large those are, we may team. have a fourth,” he said. “The fund It invests nationally and across will be fully invested sometime a broad range of industries. next year.” “We are generally agnostic and Glencoe has been a strong com- open to a wide range of indus- petitor of Huron’s over the years at tries,” said Demkowicz. “However, the Crain’s M&A event. It beat out we avoid commodity industries, Huron as dealmaker of the year for which are highly cyclical. We 2009. avoid the Four R’s: real estate, Huron and its two sister private restaurants, retail, and resources. equity firms, Peninsula Capital Part- … We continue to seek opportuni- ners LLC and Superior Capital Part- ties in education, specialty chemi- ners LLC, have made Detroit a hub cals, dental services, among oth- of Midwest investment activity. ers.” In 1995, William Campbell and Current portfolio companies in- William McKinley, co-founders of clude a maker of wall décor, a con- the Detroit-based investment tract research laboratory, a banking firm of W.Y. Campbell & provider of fire protection and en- Co., recruited Scott Reilly to help gineering services, a provider of launch Peninsula Capital with a electrical system analysis, an auto- $53 million fund to do subordinat- motive aftermarket manufacturer, ed debt to help companies do ac- a maker of Italian food products, a quisitions. clothing company, a direct mar- Today, Peninsula is investing keting company and a printing from its fifth fund of just under company. $400 and has raised a total of $1.2 Demkowicz said one reason billion for its funds. Huron has been able to keep up a In 1999, Campbell and McKinley brisk pace of acquisitions through recruited Demkowicz for a second a down cycle is that it is willing to private equity they had in mind, fund the entire deal if needed with- Huron Capital. out relying on bank or other senior A third related firm, Superior debt. Capital, was launched with $50 “We’re not reliant on capital million in 2007 to buy distressed markets to get deals done,” he said. companies in need of turnaround Huron finished raising its first help. fund of $72 million in 2000 and Campbell and McKinley sit on raised its second fund of $185 mil- the investment committees of all lion in 2005. Its third fund was three companies. originally targeted at $250 million Demkowicz said he is not solicit- but ended up being well oversub- ing new limited partners for the scribed. cooley.edu fourth fund and expects to raise it Demkowicz said it was an easy from past institutional investors, decision to expand at its current which have included Midland- location instead of looking for new based Dow Chemical Co., Detroit- space. based DTE Energy Co., Detroit-based “We were all in agreement we Soave Enterprises Inc., Bloomfield wanted to stay downtown,” he Hills-based Vlasic Investments LLC, said. “We all love it here in the the state of Michigan pension Guardian Building.” Cooley fund, Wilmington, Del.-based Previously, the firm was in the DuPont, Amsterdam-based AlpIn- Renaissance Center and then in the vest Partners and Chicago-based One Woodward building before Year-round RCP Advisors. moving to the Guardian Building Huron generally buys a control- in 2005. ling interest in companies with Tom Henderson: (313) 446-0337, revenue between $20 million and [email protected]. Twitter: Options $200 million that are fundamental- @tomhenderson2

January • May • September NOMINATE ENTREPRENEURS FOR CRAIN’S SALUTE The deadline to nominate size. There is also a category for

RON, COOLEY STUDENT someone for Crain’s Salute to social entrepreneurs and one for Entrepreneurs awards “intrapreneurs,” or people program has been moved to within companies who have April 30. demonstrated an Start Now! Cooley Makes it Possible. At Cooley Law School, many people are finding that Crain’s is seeking entrepreneurial spirit to help it is possible to fit law school into their busy lives. With four campuses across Michigan – Lansing, nominations for the company grow. entrepreneurs who deserve to Award winners will be Auburn Hills, Grand Rapids, and Ann Arbor, and our newest campus in Tampa Bay, Florida – be recognized for their recognized in the June 18 Cooley offers classes year-round, days, evenings, and weekends. innovation, problem-solving edition. Learn about Cooley at cooley.edu ability or sheer Go to crainsdetroit.com relentlessness. /nominate for more Thomas M. Cooley Law School is committed to a fair and objective admissions policy. Subject to space limitations, Cooley offers Anyone is welcome to information on the categories the opportunity for legal education to all qualified applicants. Cooley abides by all federal and state laws against discrimination. In addition, Cooley abides by American Bar Association Standard 211(a), which provides that “a law school shall foster and maintain nominate an entrepreneur, and the requirements to make equality of opportunity in legal education, including employment of faculty and staff, without discrimination or segregation on including entrepreneurs a nomination. Questions? the basis of race, color, religion, national origin, gender, sexual orientation, age or disability.” themselves. Contact Gary Anglebrandt, Web Scan this code to learn editor, at [email protected] or ICG.0412.021.AD more about Cooley The awards are broken out by five revenue categories according to (313) 446-1621. 20120423-NEWS--0013-NAT-CCI-CD_-- 4/20/2012 11:05 AM Page 1

April 23, 2012 CRAIN’S DETROIT BUSINESS Page 13 Finance Extra Vote nears on bill to raise cap on commercial credit union lending

BY TOM HENDERSON have been lobbying furiously to unions that have a lower cost of do- almost $250 million in commercial ry McHugh, president and CEO of CRAIN’S DETROIT BUSINESS prevent the bill’s passage. ing business because they pay no loans, about $50 million last year. Troy-based Commercial Alliance, an- Dennis Koons, president of the state or federal income taxes. The average loan is $550,000, he other nonprofit that has helped 21 Pending federal legislation could Lansing-based They also say that the cap is, in said. area credit unions coordinate be good news for commercial lend- Michigan Bankers effect, a nonissue because only a Beardsley said the reason so few about $193 million in commercial ing volumes by local credit unions. Association, was tiny percentage of credit unions credit unions are at a cap is that lending since 2005. But traditional banks oppose it. in Washington, nationwide are approaching the the cap keeps most from offering McHugh said many of those Currently, federal law restricts along with some current limit. business loans in the first place. businesses first tried and failed to credit unions to a cap on such lend- of the state’s The release said that increased “The average credit union has get bank lending. ing of 12.25 percent of their assets. community lending poses “a safety and sound- about $100 million in assets, which Earlier this month, Commercial U.S. Senate Bill 2231 would raise bankers, to lob- ness concern” because credit limits them to about $27 million in Alliance was named the community the cap to 27 percent. It was intro- by against the unions don’t have enough experi- lending. That’s not enough to war- lender of the year for 2011 by the duced by Mark Udall, D-Colo., and bill last month, ence in commercial lending, and rant spending the time and money East Lansing-based Michigan Certi- is supported by Michigan Sens. at the same time that more lending “will move cred- to set up a loan department,” he fied Development Corp., a nonprofit Carl Levin and Debbie Stabenow Koons David Adams, it unions away from their mission said. certified by the U.S. Small Business and all three Michigan members of president of the Lansing-based … of meeting the credit and sav- “If they had a larger cap, many Administration to provide small busi- the House Financial Services Com- Michigan Credit Union League, and ings needs of consumers, especial- more of them would offer commer- ness loans. mittee: William Huizenga, R-Zee- representatives of some of the ly persons of modest means, cial lending. According to the MCDC, Com- land; Thaddeus McCotter, R-Livo- state’s credit unions were there to through the emphasis on con- Patty Campbell is CEO of the Ro- mercial Alliance coordinated seven nia; and Gary Peters, D- lobby for its passage. sumer rather than business loans.” seville-based Christian Financial commercial loans in six counties Bloomfield Township. “We absolutely oppose raising Bill Beardsley, president and Credit Union, which is one of the for a total of $6 million, creating or The bill was reintroduced in the the credit union cap on commer- CEO of the Ann Arbor-based Michi- state credit unions currently at the sustaining 187 jobs. Senate after being sent to a bank- cial lending,” said Koons. “There’s gan Business Connection LLC, a non- lending cap. It has more than $250 “It’s not like we’re trying to eat ing subcommittee, where it was no lack of liquidity in banking to- profit that offers back-office and million in assets. Farmington the banks’ lunch,” said McHugh. expected to die a quiet death. But day. Business lending is extremely credit-underwriting support for 24 Hills-based Community Choice Credit “We’re just trying to stop leaning Senate majority leader Harry competitive, and banks are aggres- area credit unions, said the Union, which has more than $400 on our back foot and move forward Reid, D-Nev., used a procedural sively pursuing every good deal.” bankers’ argument about how few million in assets, is another. and make some loans to create move to send it directly to the Sen- Koons, the American Banking Asso- credit unions are at a cap misses “I came out of the banking side more jobs.” ate floor, where a vote is expected ciation and bankers say it is unfair the point. Since its founding in of things and was a banker most of Tom Henderson: (313) 446-0337, before the end of the month. for banks to have to compete with 2004, the Michigan Business Con- my career, but I don’t understand [email protected]. Twitter: Banks oppose the increase and nonprofit entities such as credit nection has helped members make their opposition on this,” said Ter- @tomhenderson2 Is Your Commercial Real Estate Upside Down? we can help.

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Page 14 CRAIN’S DETROIT BUSINESS April 23, 2012 Finance Extra New name, new hires, new HQ Shore may take Hantz road of expanded services

BY TOM HENDERSON firms. Despite Flagstar’s success re- CRAIN’S DETROIT BUSINESS viving its mortgage business, traditional banks that once flocked to Big changes are afoot for the mortgages continue to avoid the growing mortgage company for- business, which means more mar- merly known as Shore Mortgage ket share for Ross and United Shore. Financial Services Inc. United Shore had about 400 em- It has changed its name to United ployees when Kirkpatrick joined Shore Financial Services LLC, expects it. It has added 130 since and is any day to sign a lease on a new looking to hire 250 more in the headquarters — likely to a 100,000- Kirkpatrick Ishbia next year. Most would work for square-foot facility in Troy, com- United Wholesale, which is headed pared to 25,000 square feet in its Southfield location. United Shore’s up by Mat Ishbia, the son of Shore current headquarters on Adams three other area offices will be com- founder Jeff Ishbia. Mat is a for- Road in Birmingham — and is on a bined into the new headquarters. mer varsity basketball player at hiring spree to support sharp “We want to put the United Michigan State University who was growth in mortgage originations. name out there because that will one of Crain’s 40 under 40 hon- The new name puts a bigger fo- continue to be our main focus and orees last year. cus on the United Wholesale busi- the driver of our growth, although Of the 530 current employees, ness unit that has driven most of all our operations are growing,” nearly 300 are at United Wholesale. the growth. said Kirkpatrick. “Mat was the one who had the vi- CEO and President Kip Kirk- Kirkpatrick was recruited to sion to grow United, and he’s done a patrick said the company also Shore from his private-equity job terrific job,” said Kirkpatrick. plans to diversify from a reliance in Chicago a little more than a Mat Ishbia has been marketing on mortgages to a broad range of fi- year ago. Last July, he told Crain’s United Wholesale’s services nancial services, including the he wanted to increase the compa- around the country and recruiting possibility of opening retail bank ny’s loan originations from about only those account executives branches through acquisition. $1.8 billion a year to at least $8 bil- with solid mortgage experience. “There’s nothing imminent with lion over three years. “We’re not going to hire anyone regard to financial services, but It is on track to do about $4 bil- out of college and train them,” he we want to grow the company lion in originations this year. said. without being just a mortgage Quicken is No. 1 in the area, with One new wholesale mortgage company,” he said. “A customer more than $30 billion in origina- customer is Diane Luongo-Gazich, needs a mortgage, why not take tions last year. Troy-based Flagstar executive vice president of Mort- care of their savings and checking Bancorp Inc. is No. 2, with almost gage Plan Home Loans LLC, which business, too? Or offer insurance?” $30 billion. she describes as a small mom-and- If United Shore does add finan- Quicken, Flagstar and Royal pop operation with six loan offi- cial services, it will adopt a model Oak-based Ross Mortgage Inc. are cers in Yorba Linda, Calif. first espoused locally by John all seeing brisk growth, fueled by She said she heard about United Hantz of the Southfield-based low rates and foreclosed houses Wholesale at a seminar last April. Finance Experience Hantz Group Inc., which offers a available at bargain prices. “We’re always looking for new wide range of financial services. Tim Ross, president of Ross providers. There are always quirks Its Hantz Bank division came Mortgage, said his firm did about with the ones you have, whether into existence in April 2010 as a sin- $500 million in originations last it’s pricing or slow processes that In Your Corner. gle branch when Hantz bought Davi- year and expects to grow to $600 make life difficult,” she said. son State Bank from the struggling billion, thanks in part to a brick- She said she decided to give Fentura Financial Inc. of Fenton. and-mortar expansion. United a try, skeptical at first of Hantz Bank now has branches in Ross added small loan offices in claims it would close deals fast. Davison, Southfield, Clinton Town- Newaygo, Clarkston and Bay City “Everyone tells you they close ship and Ann Arbor and plans a in the first quarter and plans to deals in 15 days. Yeah, sure. No one statewide expansion over the next add offices in Grand Rapids and ever does. But they did. I thought it 10 years, with a short-term expan- Livonia in the second quarter. was beginner’s luck the first time, sion into the city of Detroit. Ross said he wished Shore well but I tried it again, and it was the United Shore will retain its two with its growth plans and that it same,” she said. “They’re great. retail divisions under their old helped Southeast Michigan estab- They’re quicker than anyone else.” names — Shore Mortgage, whose lish a reputation for strong, thriv- The only loans she takes else- president is David Hall, the former ing mortgage companies. where, now, are jumbo loans, be- pitchman for Quicken Loans Inc. who “It’s counterintuitive, since over- cause United Wholesale requires a came on board last year to beef up all the business is down and a lot of higher credit score than its com- Shore’s online presence; and Capital originators have gotten out of the petitors for jumbos. When she goes Mortgage Funding, which serves the business, which has been an oppor- elsewhere, she said she expects a upper end of the mortgage market tunity for us to gain share,” he said. close to take 30-40 days. under founder Harry Glanz, who He said United Shore and Ross Tom Henderson: (313) 446-0337, sold the company to Shore in 2010. have an important thing in com- [email protected]. Twitter: Capital Mortgage will retain its mon: Both are nonbank mortgage @tomhenderson2

NOMINATIONS SOUGHT FOR HEALTH CARE HEROES Crain’s Detroit Business is Crain’s event. whose performance is considered seeking nominations for Health Ⅲ Corporate achievement in exemplary. Care Heroes, a special health care: Honors a Ⅲ Allied health: Honors an James M. Eardley report on health care company that has individual from nursing or allied [email protected] professionals that will created an innovative health fields deemed exemplary by run in the Sept. 10 health benefits plan or patients and peers. issue. has solved a problem in Ⅲ Trustee: Honors leadership The program will health care and distinguished service by a honor top-notch medical innovators administration. health care trustee. and patient advocates — the Ⅲ Advancements in health care: A panel of health care judges will leaders who bring new meaning to Honors a company or individual choose the winners. First Tier Ranking the word “dedication” through their responsible for a discovery or for Submit a nomination at in Corporate Law efforts to save lives or improve developing a new procedure, device www.crainsdetroit.com/nominate access to care. or service that can save lives or by May 4. Questions? Contact Bill improve quality of life. I Metro Detroit I Grand Rapids I Kalamazoo I Grand Haven I Lansing Winners will be chosen in five Shea, enterprise editor, at (313) categories and honored at a Ⅲ Physician: Honors a physician 446-1626. 20120423-NEWS--0015-NAT-CCI-CD_-- 4/20/2012 11:30 AM Page 1

April 23, 2012 CRAIN’S DETROIT BUSINESS Page 15 Kmed expects to file away $1M in revenue with help of new inventory services division

BY CHAD HALCOM Kmed was founded in 2005 by build market share by acquiring CRAIN’S DETROIT BUSINESS Ketels’ mother, Clarita Ketels, who hospitals or adding services, their remains the company’s chief med- inventory needs and the potential St. Clair Shores-based Kmed LLC ical officer. The company had efficiency gains across multiple lo- expects to reach revenue of $1 mil- more than $500,000 revenue in cations will also grow. lion for the first time this year, af- 2011, and Ketels said he expects to Auburn Hills-based RGIS LLC, an ter acquiring six new customers in retrain some local employees to inventory, supply chain and store the new health care inventory ser- help integrate its new inventory mapping company servicing sever- vices division it launched last al industries, also reports expan- month. sion in its services to health care Owner and CEO Kevin Ketels customers, according to CEO said the newly formed Kmed Logis- Based on Bruce Barkus. tics has about 20 employees “ RGIS has customers in 40 coun- in San Antonio, Texas, in business ... addition to the 10 employ- tries and last fall made two indus- ees and a few contractors just in the try services company acquisitions working for Kmed Research — Best Reliance Inventory Services in Michigan. first quarter, China, and Kabushiki Kaisha IBC in Kmed, which traditional- we’re Japan — but Barkus, in an email ly specializes in data collec- to Crain’s, said those properties tion for clinical trials and confident we primarily serve its retail cus- some biomedical sample tomers. collection, recently added have to scale The company services hospitals, the inventory service through a pharmaceutical and medical de- team of mainly downsized former for a very busy vice companies, as well as the au- employees of Tampa, Fla.-based tomotive, retail, aerospace and de- Hospital Inventory Specialists Inc. time. fense industries. Saraheta Bennett, a former region- ” “(O)ur health care services seg- al field manager of HIS, is now vice Kevin Ketels, Kmed LLC ment is growing rapidly. We con- president of Kmed Logistics. tinue to look at opportunities in “It’s a slower time of year right the health care market and feel now, in that (hospital inventory) operations into both locations. confident about our ability to offer market. The middle of the year is “Until now, all the business has specialized inventory expertise when we expect to see the most been in biosamples and clinical re- and innovation to customers,” need for our business,” Ketels search, but after the expansion we Barkus told Crain’s. said. expect a 50-50 mix of the two busi- Ketels is also an adjunct profes- “Just based on the business nesses. And we are looking to grow sor of marketing at Wayne State we’ve been able to capture just in all of the business, but inventory is University and serves on the Grosse the first quarter, we’re confident expected to expand faster and Pointe Woods City Council. we have to scale for a very busy soon.” Chad Halcom: (313) 446-6796, time and increase well beyond Ketels predicts that as some [email protected], Twitter: what we’ve got right now.” health care companies grow and @chadhalcom

CRAIN’S EXPANDS COOL PLACES TO WORK STATEWIDE Crain’s Cool Places to Work awards register at Who said banks aren’t return this year as Cool Places to www.coolplacestoworkmi.com by Work in Michigan, reflecting the June 15. expansion of the program from Once registered, covering businesses companies will be making loans? in Southeast Michigan invited to participate in to businesses in the the surveys. entire state. Up to 400 employees For the revamped will be surveyed, Our bank is… with favorable rates and longer terms. program, Crain’s is depending on company working with Best size. Companies Group of The vetting process runs Harrisburg, Pa., to from June through manage the program. In addition to an August, with honorees employer receiving notification at questionnaire, as has the end of August. been used in the Businesses and past, Best Companies nonprofits can apply. will survey employees Applicants must have a of participating minimum of 15 companies. The employees working in combined, weighted Michigan and have been 10-Year Fixed Rate results of the two will 2012 in business at least one determine who year, among other Owner Occupied Commercial Real Estate qualifies for Cool Places criteria. designation. Companies pay a fee based on 5.75% Promotional Rate Best Companies supplies all company size to Best Companies to participating companies — cover survey costs. The cost ranges Contact Jenny Meier, EVP at 248.283.6461 or [email protected] regardless of whether they win the from $605 to $890 for online Cool Places recognition — with a surveying, and $735 to $1,630 for Best Companies Group Employee paper surveying. Crain’s Detroit Let’s get back to business Feedback Report based on Business will feature the recognized employee responses to the 72- companies in the Nov. 5 issue and question survey. The report can recognize their success at a Nov. banking built around you help company executives identify 15 event at Emagine Theatre in strengths and weaknesses in their Royal Oak. www.bankofbirmingham.net company culture and practices. Program details and samples of the Loan Program is subject to Bank’s funding availability, underwriting and approval. Rate may vary depending on amortization. Promotional Rate is determined weekly. To be considered for Cool Places to employee surveys are available at Loan subject to Bank’s prepayment penalty. Loans must close on or before 7-31-12. Work in Michigan, companies must www.coolplacestoworkmi.com. 20120423-NEWS--0016-NAT-CCI-CD_-- 4/20/2012 12:10 PM Page 1

Page 16 CRAIN’S DETROIT BUSINESS April 23, 2012

CRAIN'S LIST: OAKLAND COUNTY'S LARGEST EMPLOYERS Ranked by full-time employees

Full-time Full-time Full-time Company employees in employees in employees in Worldwide Address Oakland County Oakland County Michigan employees Rank Phone; website Top local executive Jan. 2012 Jan. 2011 Jan. 2012 Jan. 2012 Type of business Beaumont Health System Gene Michalski 11,389 11,235 12,654 NA Health care system 1. 3711 W. 13 Mile Road, Royal Oak 48073 president and CEO (248) 898-5000; www.beaumont.edu Chrysler Group LLC Sergio Marchionne 9,894 7,973 24,491 54,232 Automobile manufacturer 2. 1000 Chrysler Drive, Auburn Hills 48326-2766 chairman and CEO (248) 576-5741; www.chryslergroupllc.com General Motors Co. Daniel Akerson 8,258 7,729 39,943 209,000 Automobile manufacturer 3. 300 Renaissance Center, Detroit 48265 chairman and CEO (313) 556-5000; www.gm.com Trinity Health Joseph Swedish 5,822 5,378 24,327 NA Health care system 4. 27870 Cabot Drive, Novi 48377-2920 president and CEO (248) 489-6924; www.trinity-health.org St. John Providence Health System Patricia Maryland 4,354 4,484 12,647 12,647 Health care system 5. 28000 Dequindre Road, Warren 48092 president and CEO (866) 501-3627; www.stjohnprovidence.org U.S. Postal Service Charles Howe 3,363 3,431 NA NA Postal service 6. 1401 W. Fort St., Detroit 48233-9651 district manager, customer (313) 226-8678; www.usps.gov service and sales Henry Ford Health System Nancy Schlichting 3,356 3,425 18,997 19,038 Health care system 7. 1 Ford Place, Detroit 48202 CEO (800) 436-7936; www.henryford.com Oakland County L. Brooks Patterson 3,229 3,243 3,229 3,229 Government 8. 1200 N. Telegraph Road, Pontiac 48341 county executive (248) 858-1000; www.oakgov.com Flagstar Bancorp Inc. Joseph Campanelli 2,119 1,949 2,673 3,082 Financial institution 9. 5151 Corporate Drive, Troy 48098 chairman, president and (248) 312-2000; www.flagstar.com CEO Oakland University Gary Russi 2,095 2,028 2,039 NA Public university 10. Squirrel Road, Rochester Hills 48309 president (248) 370-2100; www.oakland.edu Comerica Bank Thomas Ogden 2,053 2,024 5,656 9,774 Financial institution 11. 411 W. Lafayette, Detroit 48226 Michigan market president (248) 371-5000; www.comerica.com Botsford Health Care Paul LaCasse 2,022 1,970 NA NA Health care system 12. 28050 Grand River Ave., Farmington Hills 48336 president and CEO (248) 471-8000; www.botsford.org Lear Corp. Matthew Simoncini 1,558 1,435 3,127 99,297 Automotive supplier 13. 21557 Telegraph Road, Southfield 48033 president and CEO (248) 447-1500; www.lear.com Walled Lake Consolidated Schools Kenneth Gutman 1,543 1,516 B 1,543 1,543 Public school district 14. 850 Ladd Road, Walled Lake 48390 superintendent (248) 956-2000; www.wlcsd.org J.P. Morgan Chase & Co. Sarah McClelland 1,480 1,350 4,575 NA Financial services provider 15. 611 Woodward Ave., Detroit 48226 Michigan market president (313) 256-8500; www.jpmorganchase.com Farmington Public Schools Susan Zurvalec 1,400 C 1,350 B NA NA Public school district 16. 32500 Shiawassee, Farmington 48336 superintendent (248) 489-3349; www.farmington.k12.mi.us Crittenton Hospital Medical Center Lynn Orfgen 1,398 1,398 1,423 1,423 Medical center 17. 1101 W. University Drive, Rochester 48307 president and CEO (248) 652-5000; www.crittenton.com Rochester Community Schools Frederick Clarke 1,381 1,518 1,381 1,381 Public school district 18. 501 W. University, Rochester 48307 superintendent (248) 726-3000; www.rochester.k12.mi.us Huron Valley Schools Jacqueline Johnston 1,371 1,419 1,371 1,371 Public school district 19. 2390 S. Milford Road, Highland 48357 superintendent (248) 684-8000; www.huronvalley.k12.mi.us Blue Cross Blue Shield of Michigan/Blue Care Network Daniel Loepp 1,367 D 3,515 7,101 7,101 Health care insurer 20. 600 E. Lafayette Blvd., Detroit 48226 president and CEO (313) 225-9000; www.bcbsm.com Kelly Services Inc. Carl Camden 1,276 1,230 1,341 8,000 Staffing services firm 21. 999 W. Big Beaver Road, Troy 48084 president and CEO (248) 362-4444; www.kellyservices.com Comau Inc. Mauro Fenzi 1,250 1,180 1,250 14,000 Manufacturing 22. 21000 Telegraph Road, Southfield 48033 COO (248) 353-8888; www.comau.com Troy School District Barbara Fowler 1,173 1,424 B NA NA Public school district 23. 4400 Livernois Road, Troy 48098 superintendent (248) 823-4000; www.troy.k12.mi.us Detroit Medical Center Michael Duggan 1,140 1,215 E 13,340 13,340 Medical center 24. 3990 John R, Detroit 48201 CEO (313) 578-2442; www.dmc.org U.S. government NA 1,131 615 28,390 1,963,522 Federal government 25. 477 Michigan Ave., Detroit 48226 (313) 226-4910

This list of Oakland County employers encompasses companies with headquarters in Livingston, Oakland, Wayne, Macomb or Washtenaw counties. Number of full-time employees may include full-time equivalents. It is not a complete listing but the most comprehensive available. Crain's estimates are based on industry analyses and benchmarks, news reports and a wide range of other sources. Unless otherwise noted, information was provided by the companies. Companies with headquarters elsewhere are listed with the address and top executive of their main Detroit-area office. Actual revenue figures may vary. NA = not available. B Figures are FTE counts from the Center for Educational Performance and Information. C District estimate. D As of April 16, 2012. Relocated 2,100 employees from Oakland County to Detroit between Jan. 1, 2011, and April 16, 2012. E Adjusted to reflect changes in how FTE are reported in 2012. LIST RESEARCHED BY BRIANNA REILLY Project2 11/8/2011 12:20 PM Page 1

What’s the connection between Norway and Michigan?

Oakland Community College. Yes, OCC. In the last year, OCC has worked with five different companies –one from as far away as Norway – to help bring 529 new jobs to the region. By collaborating with the county and state, OCC secured $7.75 million in training incentives – funding that gave Oakland County a decided advantage over other regions. OCC will even provide the technical training needed to prepare workers for these new jobs. Why place so much emphasis on the economic growth of our community? Because at OCC, community is our middle name.

www.oaklandcc.edu 20120423-NEWS--0018-NAT-CCI-CD_-- 4/20/2012 10:48 AM Page 1

Page 18 CRAIN’S DETROIT BUSINESS April 23, 2012 CALENDAR TUESDAY WEDNESDAY site: http://detroit.cbslocal.com, click subscription to Crain’s Detroit Busi- HELP CRAIN’S HONOR on “events” and scroll to the event. ness. Contact: Tim Walker, (248) 353- APRIL 24 APRIL 25 0735, ext. 115; email: [email protected]; website: www.esd.org. ESD Today, ESD Tomorrow Tour. 20 IN THEIR 20S WINNERS Detroit Economic Club Presents the THURSDAY 5:30-6:30 p.m. Engineering Society of Join Crain’s Detroit Business as it 2012 Detroit Tigers. 11:30 a.m.- Detroit. ESD headquarters, South- 1:30 p.m. With Jim Leyland, manager; APRIL 26 Michigan Celebrates Small Business. honors the best and brightest local 5-9:30 p.m. May 3. Michigan Small field. Free; RSVP required. Contact: businesspeople under age 30 in a and David Dombrowski, president, Progress, Challenges and Opportuni- (248) 353-0735, ext. 120; email: lbir CEO and general manager. MotorCity Business Technology & Development celebration from 5:30-9 p.m. ties. Noon-6:30 p.m. Michigan Chapter [email protected]; website: www.esd.org. Casino-Hotel, Detroit. $45 DEC mem- Center, others. With Ari Weinzwieg, May 9 at the Colony Club, Detroit. of the Turnaround Management Asso- bers, $55 guests of members, $75 non- co-founder and CEO, Zingerman’s ciation. With Matt Cullen, COO, Rock Awards will honor 20 up-and- members. Contact: (313) 963-8547; Community of Businesses, and others. Detroit Business Conference. 7:30 Ventures LLC. Detroit Athletic Club. coming individuals whose creativity email: [email protected]; website: Lansing Center. $95; group discounts a.m.-4 p.m. Comcast Business Class, $50 TMA members; $35 Next Gen and entrepreneurial spirit are www.econclub.org. available. Contact: (800) 362-5461; web- Detroit Regional Chamber. MotorCity contributing to a new energy in members, $75 nonmembers. Contact: site: www.michigancelebrates.biz. Casino-Hotel, Detroit. $75 chamber Jenni Brewer, (248) 593-4810; email: members, $125 nonmembers. Contact: Southeast Michigan. Crain’s HealthcareNext: Leading Teams Dur- published a special feature April 2 [email protected]; Emily Doerr, (313) 596-0377, email: edo ing Stressful Times. 7-8:30 a.m. Info- website: www.turnaround.org, Meet the Purchasers. 8-11:30 a.m. [email protected]; website: highlighting the awardees and their rum. With Rebecca Kraus, leadership May 9. Detroit Regional Chamber. Re- www.detroitchamber.com. accomplishments. development coach, Rebecca Kraus naissance Conference Center Level 2, Tickets are $45 for current CDB and Associates. Health Alliance Plan, April Foolishness. 6-9 p.m. Adcraft Detroit. $30 chamber members, $70 Club of Detroit, Yahoo, Wall Street Insights on the Growing Economic subscribers, $40 for members of Southfield. $10. Contact: (877) 633-3500; nonmembers. Contact: Marianne Al- groups of 10 or more and $70 for website: www.inforummichigan.org. Journal. Traditional silent auction abastro, (313) 596-0479; email: mal- Power of Women. 11:30 a.m.-1:30 p.m. will give Adcrafters chances to bid on Inforum. With Beth Brooke, global nonsubscribers; a $60 ticket [email protected]; website: many items. Tequila Blue, Royal Oak. www.detroitchamber.com. vice chair, public policy, Ernst & includes a one-year CDB First Glimpse: TechShop Tour. 4-5 p.m. $10 Adcraft member, $20 nonmember. Young. The Westin Book Cadillac De- subscription. Engineering Society of Detroit, Ford Contact: Marcy Morton, (248) 225-1288; troit. $50 Inforum members, $65 non- For more information, call Motor Co., TechShop Inc. ESD mem- email: [email protected]; An Evening With Bob Lutz. 6:30-9:30 p.m. members. Contact: (877) 633-3500; web- (313) 446-0300, email bers are invited for a first-time look at website: www.adcraft.org. May 10. Eastern Michigan University, site: www.inforummichigan.org. [email protected] or visit TechShop before it opens to the public Detroit-Windsor Chapter of the Ameri- in May. TechShop, Allen Park. $25 can Foundry Society, others. With Bob www.crainsdetroit.com/events. Connections & Cocktails. 4:30-6:30 Systematic Innovation Workshop. ESD members, $54 nonmembers, join Lutz, former General Motors vice chair- p.m. Detroit Regional Chamber. Net- 8:30 a.m.-noon. Engineering Society of ESD at reduced rate and attend the man for product development. $50, in- working reception. Emagine & Star Detroit, International Council on Sys- ter, North America. The Detroit Ath- tour for free. Contact: (248) 353-0735; cludes dinner and a copy of Lutz’s book Lanes Royal Oak. Free to chamber tems Engineering. With Jonathan letic Club. $65 members, $100 non- email: [email protected]; website: Car Guys vs. Bean Counters. RSVP by members business builder and above. Weaver, professor of mechanical engi- members. Contact: Ingrid Justice, www.esd.org. April 26. Contact Natalie Simms, (734) Contact: Marianne Alabastro, (313) neering, University of Detroit Mercy. (734) 424-9461; email: [email protected]; 481-2320; email: [email protected]; 596-0479; email: malabast@de ESD headquarters, Southfield. $45 website: www.gaccmi.org. WWJ 950 Business Breakfast: Manag- website: www.afsdetroit.com. members, $60 nonmembers, $124 to troitchamber.com; website: www.de ing and Moving Your Company’s Mon- troitchamber.com. join ESD and attend for free (includes Legal and Financial Basics for Small ey. 8:30-10 a.m. WWJ, Lawrence Tech- Good Jobs, Green Jobs Midwest. one year of Crain’s Detroit Business). Business. 9 a.m.-noon. Oakland Coun- nological University. Three Michigan 8 a.m.-8 p.m. May 10; 8 a.m.-5 p.m. May Contact: Leslie Smith, (248) 353-0735, ty Business Center. Provides an un- businesses discuss the day-to-day fi- COMING EVENTS 11. Sheet Metal and Air Conditioning ext. 152; email: lsmith@ derstanding of the key legal and finan- nancial activities of their organiza- National Association Metropolitan esd.org; website: www.esd.org. cial considerations in starting and tions and how they’ve addressed is- Energy Conference and Exhibition. Detroit Chapter. With David Foster, operating a business in Michigan. sues they’ve encountered to meet the 7:30 a.m.-3:30 p.m. May 2. DTE Energy president, BlueGreen Alliance Foun- SAE Reception. 5:30-7:30 p.m. German Oakland County Business Center, Wa- needs of their customers and their and the Engineering Society of De- dation; Michael Brune, executive di- American Chamber of Commerce terford Township. Free. Contact: companies. Lawrence Technological troit. Suburban Collection Showplace, rector, Sierra Club; and others. De- Michigan Chapter, Society of Automo- Karen Deaver-Lear, (248) 858-0783; University ULTC Gallery, Southfield. Novi. $65 ESD members, $85 nonmem- troit Marriott/Renaissance Center. tive Engineers. With Robert Sump, email: [email protected]; Free. Contact: Amy Berlin, (248) 455- bers, $139 become a member of ESD $195. Website: www.greenjobsconfer- vice president, Nissan Technical Cen- website: oakgov.com/peds/calendar. 7279; email: [email protected]; web- and attend free. Includes a one-year ence.org.

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April 23, 2012 CRAIN’S DETROIT BUSINESS Page 19 BUSINESS DIARY ACQUISITIONS agreement in which Motor, a partner company, has selected M.J. Electric supplier to AmeriQuest, will include , a company, Iron Fluid Routing Solutions Inc., South- LLC Quanta Services Work smarter for your business. its medium- and heavy-duty truck Mountain, to build the first segment of field, an automotive hose supplier, products in the AmeriQuest suite of the Thumb Loop high-voltage trans- has been acquired by Park-Ohio Indus- transportation product offerings for mission line. tries Inc., Cleveland. its customers. Fontinalis Partners LLC, Detroit, a Rubicon Genomics Inc., Ann Arbor, a strategic investment firm, has invest- Southeast Michigan Beacon Commu- scientific research company, has se- nity, Detroit, signed a contract with ed in QuickPay Corp., San Francisco, a lected Velesco Pharmaceutical Ser- , Detroit, and with provider of integrated mobile parking Covisint LLC Medici- vices, Plymouth and Kalamazoo, to , Salt Lake City, that will enable it to technology and services. ty manufacture the TransPLEX kits it develop a health information ex- will supply for use with Agendia’s Superior Capital Partners LLC, Detroit, change for providers BeaconLink breast cancer diagnostics. a private equity firm, acquired the as- 2Health. sets of Delta Technologies, Chicago, University of Michigan Health System, , Warren, a Ill., as an add-on acquisition to its Los Waltonen Engineering Inc. Ann Arbor, and Trinity Health-Michi- global company in engineering ser- Angeles-based user-interface and gan, Novi, have signed a new master vices, has been awarded a schedule product-identification portfolio com- affiliation agreement. 871 professional engineering services pany, Nelson-Miller Inc. contract from the U.S. General Ser- MOVES Visteon Corp., Van Buren Township, vices Administration, Washington, announced that it has agreed to sell its D.C. PolyFlex Products Inc. moved its head- automotive lighting business to Var- Rubicon Genomics Inc., Ann Arbor, quarters and manufacturing from roc Group, Aurangabad, India, a glob- announced a clinical supply agree- Livonia to 23093 Commerce Drive, al provider of automotive parts. ment with molecular diagnostics firm Farmington Hills. Telephone: (734) 458- 4194. Website: www.polyflexpro.com. Size, comfort, value and versatility that drives your potential. Agendia, Amsterdam, for its The 2012 Sprinter Van — exclusively at Mercedes-Benz of Novi. Visit us today to CONTRACTS RE/MAX Classic of Canton moved TransPlex whole genome RNA ampli- see one of the area’s largest Sprinter inventories. Amerigon Inc., Northville, a global de- fication technology. Agendia will in- from 43435 Joy Road to 42078 Ford veloper and marketer of thermal man- corporate Rubicon’s TransPlex kits Road, Canton. Website: www.detroit agement technologies, was chosen by into the analysis of patient samples metrorealestate.com. Mercedes-Benz of Novi 39500 Grand River Ave. Hyundai, Seoul, South Korea, to pro- for use with breast cancer diagnos- Novi, MI 48375 vide its proprietary heated and venti- tics. NEW PRODUCTS 248-426-9600 (Sales & Service Available Now) lated seat system to be offered as an Asahi Kasei Plastics North America The Gale Group Inc., Farmington Hills, www.mercedesbenzofnovi.com option on the front seats of the mid- Inc., Fowlerville, has licensed Poly- a publisher of research and reference size 2011 Hyundai Sonata being sold in plast Compound Werk GmbH, Eilen- resources, announced Demograph- China. Amerigon also was chosen by berg, Germany, to manufacture and icsNow: Business & People, an online Ford Motor Co. to provide its propri- distribute its Thermylene brand of business and residential reference tool etary Climate Control Seat system for specialty chemically coupled glass-re- that provides detailed demographic the 2013 Ford Flex. inforced polypropylenes. data on more than 23 million business- Dimensional Control Systems Inc., Burroughs Payment Systems Inc., Ply- es and 206 million consumers. Web- Troy, a provider of quality-manage- mouth, a global provider of technolo- site: www.gale.cengage.com. ment software and consulting ser- gy and services, was chosen by Finan- vices, has been selected by Jaguar cial Consulting & Trading NEW SERVICES Land Rover, Gaydon, U.K., to provide International Inc., a nationwide ATM Attorneys Title Agency, Farmington its Graphic Data Management soft- network company based in Century Hills, announced the launch of web- ware to replace its existing dimen- City, Calif., to maintain its customer sites offering clients resources in a sional data management system. base of more than 1,200 self-serve central location: www.atatitle.com, EBuyMedia Inc., Plymouth, an adver- ATMs. www.grecotitle.com, www.midstateti tising agency, now is the agency of The Epilepsy Foundation of Michigan, tle.net and www.seavertitle.com. record for Tubby’s Sub Shops, Fraser. Southfield, and the University of RouteOne LLC, Farmington Hills, an- Energy Conversion Devices Inc., Michigan have become community nounced the availability of additional Auburn Hills, a solar-panel manufac- partners of the Southeast Michigan enhancements to its free Android app, turer, will supply products to Baraclit program of Leave a Legacy through including the ability to forward “sent” SpA, an Italian building-material com- the Planned Giving Roundtable of applications to a new finance source, pany, to incorporate into roofing ma- Southeast Michigan, Metamora. securely text message with supporting terials. finance sources, get payoff quotes, and Bring morale up. Fathead LLC, Detroit, a provider of of- EXPANSIONS capture leads into the Lead Manager within RouteOne. This additional ficially licensed sports and entertain- Brailsford & Dunlavey, Washington, ment wall graphics, has joined functionality will also be available for About thirty stories. D.C., a national program management the iPhone in the coming months. ShopRunner, Conshohocken, Pa., an firm, opened a new office at 500 Gris- online retailer network, to offer con- Telephone: (866) 933-0663. Website: wold Ave., Detroit. Website: www.pro www.routeone.com. sumers free two-day shipping with no grammanagers.com. minimum order size and free shipping LifeSecure Insurance Co., Brighton, on returns across its line of officially Catholic Social Services of Oakland has opened its new Caregiver’s Mar- licensed wall graphics. County Inc., Royal Oak, opened a new ketplace, a one-stop online shop where counseling office at 3300 S. Adams caregivers can access quality home Freedom One Financial Group, Clark- Road, Auburn Hills, on the grounds of care products designed to support spe- ston, a 401(k) plan recordkeeping and Sacred Heart Catholic Church. Web- cial long-term care needs of loved ones. administrative service provider, an- site: www.cssoc.org. Website: www.yourlifesecure.com. nounced that Freedom One Invest- ment Advisors Inc., Clarkston, will Huron-Clinton Metroparks, Brighton, NSF International, Ann Arbor, an in- provide plan advisory services for Cit- opened the Willow Metropark golf dependent global organization that izens National Bank, Cheboygan. course at 17845 Savage Road, writes standards, tests and certifies Belleville. Telephone: (734) 753-4040. products for the food, water and con- Godfrey Hammel Danneels & Co. PC, Website: www.metroparks.com. sumer goods industries, has launched St. Clair Shores, has joined the Health- the NSF Home Product Certification care Financial Management Associa- Main Street Bank, Bingham Farms, opened a mortgage banking office at Program to test and certify home tion, Westchester, Ill. kitchen products and appliances. Identity Marketing & Public Relations 1235 Main St., Suite 150, Rochester. Telephone: (248) 609-9460. Website: Website: www.nsf.org. LLC, Bingham Farms, has added Inte- www.mainstreetbankmi.com. rior Systems Contract Group Inc., Roy- STARTUPS al Oak; RCS Real Estate Advisors, New Metaldyne LLC, Plymouth, acquired a York; and Powerlink Facilities Man- facility in Zbysov, Czech Republic. A Place to Be LLC, a health and nutri- agement Services, Detroit, to its client Website: www.metaldyne.com. tion consultancy, at 725 S. Adams roster. Road, Suite 185, Birmingham. Tele- JOINT VENTURES phone: (248) 766-2425. Website: Jenkins Skanska, Detroit, a joint ven- www.aplacetobe.com. ture between Jenkins Construction A123 Systems Inc., Romulus and Dr. NewSkin, a laser tattoo removal Inc., Detroit, and Skanska USA Build- Livonia, an electric-vehicle battery ing, New York, N.Y., was awarded a and skin rejuvenation company, at 215 provider, said it will supply lithium- E. Main St., Suite 202, Northville. Tele- contract to provide construction man- ion battery packs for Mumbai, India- agement services for Detroit Medical phone: (248) 348-7500. Email: based Tata Motors Ltd.’s commercial [email protected]. Website: Center’s new Heart Hospital. vehicles. www.drnewskin.com. MWW Automotive Group, Howell, a Ann Arbor Spark, a public-private part- Thrills bring every group together. global design, engineering and manu- nership, finalized an agreement to Your employees will all feel the facturing firm, has entered into a manage business attraction efforts for exhilarating g-forces. The excitement long-term production agreement with the Economic Development Council of DIARY GUIDELINES Roush Performance Products Inc., Livingston County. of the water rides. And the powdered Plymouth Township, for the Class A Care Solutions Group LLC, Royal Oak, Send news releases for Business sugar of the funnel cakes. The very painting of automotive components a care-management and care-coordi- Diary to Departments, Crain’s things that make a group outing to designed and manufactured by Detroit Business, 1155 Gratiot nation company for post-acute health Cedar Point in Sandusky, Ohio unlike Roush. care services, has selected Helping Ave., Detroit, MI 48207-2997 or Meridian Health Plan, Detroit, has Hand Home Health Care LLC, Grand send e-mail to cdbdepartments@ any other one. Visit cedarpoint.com/ been selected by the state of Iowa to Blanc, a provider of skilled nursing crain.com. Use any Business Diary group-sales or call 1-800-448-2428 provide managed Medicaid health ser- and rehabilitation services, to partici- item as a model for your release, to get your discounted tickets for vices to beneficiaries through a con- pate in its provider group delivering and look for the appropriate your corporate group outing today. tract with the Iowa Department of Hu- care to patients throughout Southeast- category. Without complete man Services. ern Michigan. information, your item will not run. Motor Information Systems, Troy, and ITCTransmission, a wholly owned sub- Photos are welcome, but we cannot AmeriQuest Transportation Services, sidiary of ITC Holdings Corp., Novi, an guarantee they will be used. THRILLS CONNECT Cherry Hill, N.J., entered into an independent electricity transmission 20120423-NEWS--0020-NAT-CCI-CD_-- 4/20/2012 11:34 AM Page 1

Page 20 CRAIN’S DETROIT BUSINESS April 23, 2012

Three BIG features, all in Crain’s June 4 issue Our most inﬂuential Job Front

audience of the year EOPLE / P Reach inﬂuential business, and government leaders at the Detroit Regional Chamber Mackinac Policy Conference and those who FINANCE can’t attend but won’t want to miss this coverage, with an ad in Robert Lalicki to vice president and IN THE SPOTLIGHT manager, Berkley branch, Flagstar Crain’s June 4 issue. Bloomfield Hills-based Physician Bank, Berkley, from branch manager, Resource Management has named First Place Bank, Troy. Also, Mark This feature will be distributed at the conference on Gene Eavy CEO. Eavy, 54, had Thursday, May 31. Pacitto to vice president, business banking, Troy, from vice president in been vice president of clinical services for St. Crainsdetroit.com features blog coverage throughout the conference. commercial lending, Fidelity Bank, Joseph Mercy Birmingham; and Health System Gary Seifert to vice in Ann Arbor. Plus: The Women’s Issue president, busi- Eavy succeeds ness banking, I Lessons from the top: Some of Southeast Michigan’s Randy Troy, from vice Friedman, who game-changing women share tales from the boardroom and what president, private served as it really takes to be a female entrepreneur. banking, wealth interim CEO LIST: Largest Woman-Owned Businesses management, and will Comerica Bank, continue to Bloomfield Hills. provide Seifert Eavy Plus: Business Education Trends strategic HEALTH CARE direction for Physician Resource I Crain’s examines performance-based funding models, faculty pay Ali Bitar, M.D., to chief of physical med- Management. and other critical issues facing universities, including the higher icine and rehabilitation, DMC Sinai- Eavy has an MBA from Eastern Grace Hospital, Detroit, remaining spe- education funding puzzle. Michigan University and a cialist-in-chief for physical medicine bachelor’s degree in pharmacy Detroit Regional Chamber LIST: Largest Graduate Degree Programs and rehabilitation, Detroit Medical Center, and vice president of medical from the University of Michigan. Mackinac Policy Conference: LIST: New Education Programs Directory He has faculty appointments at UM May 29 – 31 affairs and chief of staff, DMC Rehabili- tation Institute of Michigan, Detroit. and University of Toledo pharmacy schools and serves as a mentor Leon Hudson Jr. to project manager, DISTRIBUTED TO MACKINAC CONFERENCE ATTENDEES ISSUE DATE: June 4 for pharmacy leaders at the AD CLOSE: May 17 Michigan Area Health Education Cen- BONUS PLUS AN ADDITIONAL 50,000 Web readers ter, Wayne State University, Detroit, Wharton School of the University of Pennsylvania. For advertising opportunities, call Marla Wise at 313.446.6032 or email [email protected] from clinical research assistant, Mem- ory and Cognition Center, University Physician Resource Management Hospitals Case Medical Center, Cleve- is a health care consulting firm land, Ohio. specializing in oncology.

LAW ton Hills, from art director, Camp- bell-Ewald, Warren. MEDIA Marty Rosenberg to director of sales for 96.3 WDVD FM and 93.1 WDRQ FM, Cumulus Media Inc., Detroit, from local sales manager.

OPEN TO GENERAL AND IN-HOUSE COUNSEL NONPROFITS Peter Gumbleton AND C-LEVEL EXECUTIVES to director of ac- Bosman D’Arcy O’Reilly counting services, Lutheran Social Hear from such speakers as: Services of Michi- gan, Detroit, from ToddT Wiseley interim director of accounting ser- generalg counsel, Valassis Communications Inc. vices, Lutheran Social Services, AAlan Gocha Detroit, and before that vice general counsel, Living Essentials LLC and Wednesday Gumbleton president and 5-Hour Energy CFO, Wolverine Human Services, Grosse Pointe Park. MMichael Costello April 25 , general counsel Dalziel Gourley REAL ESTATE Meadowbrook Insurance Group David Bosman, Rebecca D’Arcy O’Reil- Kevin McBride to sales manager, The Inn at St. John’s ly, Brandon Dalziel and Jason Gourley, Parks Title Co., Royal Oak, from area all to member, Bodman PLC, Detroit, 44045 Five Mile Rd., Plymouth SSean McKessy sales manager, PMI Mortgage Insur- from associate. ance Co., Downers Grove, Ill. cchief, Ofﬁce of the Whistleblower Corey Beaubien to shareholder, Reis- IN PARTNERSHIP WITH UU.S. Securities and Exchange Commission ing Ethington PC, Troy, from senior RETAIL associate. Alexandra Papasifakis to member, Trey Rouss to general manager for re- Summit details: www.crainsdetroit.com/gc banking, bankruptcy and creditors’ tail stores, Summit Sports Inc., IN COOPERATION WITH Brighton, Keego Harbor, Rochester or call 313.446.0300 rights practice group, Plunkett Cooney PC, Bloomfield Hills, from Hills and East Lansing, from store summer associate. Also, Abe Bar- manager, East Lansing. OPEN TO THE GENERAL PUBLIC laskar and Courtney Bollman to members, litigation practice group. SERVICES Following the summit, salute the best legal minds John Bruno to vice working inside Michigan’s public, private, nonproﬁt MANUFACTURING president and TITLE SPONSOR and government organizations at an awards and William Hardy to vice president of deputy general counsel, The Auto networking dinner. business planning, Carhartt Inc., Dearborn and Irvine, Ky., from direc- Club Group, Dear- WITH Guest Speaker tor of planning. born, from partner, Locke Lord Nicole Lamb-Hale MARKETING LLP, Washington, Assistant Secretary of Commerce D.C. Dino Baskovic to vice president of dig- for Manufacturing and Services Jim Talbot to direc- ital strategy, The Quell Group, Troy, tor of photogra- from senior account director, Chevro- phy, Moonlink PREMIER SPONSOR Bruno Dinner details: let national promotions and Chevy Studios, and cre- www.crainsdetroit.com/events Cruze, Big Fuel Communications, De- ative editor at sister division Cutters or call 313.446.0300 troit. Editorial, Ringside Creative LLC, Oak Grayson Cardinell to senior art di- Park, from creative editor, Griot Edito- rector, J.R. Thompson Co., Farming- rial, Ferndale. 20120423-NEWS--0021-NAT-CCI-CD_-- 4/20/2012 4:44 PM Page 1

April 23, 2012 CRAIN’S DETROIT BUSINESS Page 21 Rookie pay scale helps tame contracts as Lions enter draft

BY BILL SHEA that number could change through something similar. last year’s $375,000. The salary CRAIN’S DETROIT BUSINESS trades. Now, the Lions have picks A rookie pay scale was estab- floor doesn’t include signing We’re going to take No. 23, 54, 85, 117, 158, 219 and 230. lished last year under the league’s bonuses or incentives. The Detroit Lions will spend some “ The first round is Thursday, the 20-year collective bargaining The rookie minimum wage in- money this week on new talent, the best players, and second and third rounds are Fri- agreement signed last June with creases to $405,000 next year, ac- but not as much as in the past. day and the fourth through sev- its players union. cording to league and union figures. The National Football League’s an- then if we have to fill enth rounds are Saturday. All The rookie wage system, which The cost controls are a departure nual college draft begins at 8 p.m. rounds are broadcast live. established an annual specified from when Detroit drafted University Thursday, and the Lions have the in gaps later, we’ll do Last year, the Lions drafted de- pool of cash for draft picks, was of Georgia quarterback Matthew 23rd pick. fensive end Nick Fairley out of put into place to contain the mas- Stafford with the first overall draft The speculation is that the Lions that during the rest Auburn University with the 13th pick sive contracts being given to first- pick in April 2009 and gave him a will target the best remaining cor- of the offseason. in the first round. He got a one- round draftees. The pool was $874 six-year contract worth about nerback, possibly the University of ” year, $10 million deal. million for all teams last year, ac- $78 million if he meets all incen- Alabama’s Dre Kilpatrick, or an of- Martin Mayhew, Detroit Lions This year, the team’s 23rd pick cording to ESPN’s John Clayton. tives. In 2010, defensive tackle fensive tackle, such as Ohio State is a product of the team’s im- Each team’s portion of the pool Ndamukong Suh got a five-year, University’s Mike Adams, with their He declined to name names in proved 10-6 record in 2011. Draft is allocated based on number of $60 million contract when Detroit first choice. order to protect the team’s draft order is determined largely by the draft picks, and where the pick oc- took him with the No. 2 overall pick “There are probably between strategy from opponents. previous season’s record. curred in a particular round. That out of the University of Nebraska. four and seven guys that we really “We’re going to take the best Last year’s 23rd pick was Danny information isn’t disclosed. The overall player payroll limit feel very comfortable with, that players, and then if we have to fill Watkins, an offensive guard out of Rookies are limited to four-year for each team in 2012 is $120.6 mil- are great fits for us and that we’re in gaps later, we’ll do that during Baylor University who went to the contracts, with first-round picks lion. very excited about having,” Lions the rest of the offseason (in free Philadelphia Eagles. He got a four- having a club option for a fifth year. Bill Shea: (313) 446-1626, General Manager Martin Mayhew agency),” he said. year, $7.9 million contract. This The minimum base pay for rook- [email protected]. Twitter: told reporters Thursday. Detroit has seven draft picks, but year’s No. 23 choice likely will get ies this season is $390,000, up from @bill_shea19 REAL ESTATE

AUCTIONS COMMERCIAL PROPERTIES MISCELLANEOUS COMMERCIAL PROPERTIES BANKRUPTCY AUCTION FOR SALE Plymouth - For Sale or Lease FOR SALE THE PREMARC CORPORATION FOX HILL MALL Historic Train Depot Compound 2 bldg’s in RESTAURANT BUILDING (Cadillac Location) STERLING HEIGHTS, MI AUBURN HILLS, MI top condition. Total 2216 sq. ft. for sale Auction Date: May 7, 2012 at 10:00 a.m. $299,000. or consider leasing 1450 sq. ft. for Inspection: Available by appointment through May 2, 2012 $1650./Mo. comes with additional property. Real Estate: Plant located at 5305 E. M-15 Highway, Cadillac, Michigan, 27,626 square feet with 1,222 CALL VAN ESLEY REAL ESTATE AT square feet of office space, built on 30 acres, zoned as C-2 heavy commercial district 734-459-7570 Personal Property: Equipment used to manufacture corrugated metal underground drainage products, including corrugated pipe machine, hydraulic press, air compressors, welders, corrugated pipe roller, 37821-37899 MOUND ROAD 1451 N. OPDYKE RD riveters, slitters, power press break, recorrugator, various pieces of cutting and welding equipment, handling equipment including forklifts, plant support equipment, finished goods inventory, raw materials, » REO retail center – ± 30,880 SF » Excellent restaurant opportunity and customer supply contracts in place » Newer 2005 construction OFFICE SPACE » Bank owned – 7,994 SF former Terms of Auction: This auction is ordered by the United States Bankruptcy Court for the Eastern District » Strategically positioned near 4 major Mountain Jack’s Steakhouse of Michigan in the matter of Premarc Corporation, Chapter 11 case number 11-35207. expressways – M-59, M-53, I-75 & I-696 » Located at the intersection of Bidding Process: Bidders must submit a single bid for all assets as a going concern. » Excellent value-add opportunity through Opdyke and University just west of I-75 Bid Deadline: The close of business on May 2, 2012 by submitting in writing to Dennis M. Haley, proactive management and lease-up » Visible from I-75 and receives more Winegarden Haley Lindholm & Robertson, G-9460 S. Saginaw Street, Ste A, Grand Blanc, Michigan » No set asking price – price TBD than 120,000 VPD 48439, [email protected] by the market » Seller highly motivated Qualifying Bids: Opening bid is $585,000 and requires a bid deposit of $117,000. BARRY SWATSENBARG 248.324.2000 DAVID COHEN 248.324.2000 Bidding thereafter in increments of $25,000.00. [email protected] [email protected] Place of Auction: In person at offices of Lambert Leser Isackson Cook & Giunta, P.C., 916 Washington RICH DEPTULA BARRY SWATSENBARG [email protected] Where Owners and Tenants Meet. [email protected] Avenue, Ste 309, Bay City, Michigan 48707 www.friedmanrealestate.com www.friedmanrealestate.com Further Details: For details contact Dennis M. Haley, G-9460 S. Saginaw Street, Suite A, Grand Blanc, MI 48439, Phone: 810-579-3600; Fax: 810-579-1748; Email [email protected]

VACANT LAND PROPERTY MANAGEMENT PRIVATE LAKE/LAND MARKET PLACE Tracy 248-534-2138 Chris 248-802-4471 AUCTIONS OFFICE FURNITURE Asking 2.9 Million Professional Multi-Family Management Oakland County for over 45 years. Office Furniture Warehouse Blowout WE SPECIALIZE IN Desks/files/chairs/tables/ starting at $25 248-620-8777 !!! PUBLIC AUCTION!!! We buy/sell nice executive furniture • Increasing Occupancy • Live & Online Search Craig’s List 248-548-6404 WE MANAGE YOUR ASSET TO May 1st, 2012 @ 10AM CDT ACHIEVE GREATER CASH FLOW. The Crain’s reader: Our Model Works. Detroit Tool & Engineering, Inc. 26.5% influence the CALL JEFFREY KAFTAN AT 248-352-3800 441 West Elm St. purchase of office/industrial Lebanon, MO 65536 and commercial space. www.KaftanCommunities.com Items to be Sold Include: DANLY 1,000T STRAIGHT SIDE PUNCH PRESS JOB Help them find you by Bliss 450T Straight Side Punch Press, DeVlieg Jig Mills, Ooya Radial Drills, advertising in Crain’s Real Call Us For Personalized Bridgeport Milling Machines, Rows of Pallet Racking, Mitsubishi Wire EDM FRONT Estate section. Service: (313) 446-6068 Machines, Brown & Sharpe Coordinate Measuring Machines, Air Compressors, LEGAL 313.446.6068 • FAX: 313.446.1757 CLOSING TIMES: Monday 3 p.m., Surface Grinders, Vertical & Horizontal Machining Centers E-Mail: [email protected] one week prior to publication date. Immediate Placement: Part Time Paralegal/Legal Please call us for holiday closing times. DO NOT MISS THIS SALE! Assistant for Hospital Management Company - Southfield, Michigan hospital management company FAX: (313) 446-1757 Auction Managed By: is looking for a part time paralegal/legal assistant to E-MAIL: [email protected] support in-house attorney. Must be self-motivated, INTERNET: possess strong organizational skills, demonstrate good writing and communications skills and have the www.crainsdetroit.com/section/classifieds ability to prioritize and work under tight schedules to Confidential Reply Boxes Available meet deadlines. This individual will perform records, contact and legal review and research; analyze and PAYMENT: All classified ads must be complete legal forms for accuracy; and draft corre- prepaid. Checks, money order or 102 East Springfield Ave., Union, MO 63084 spondence. Ideal candidate must have familiarity Crain’s credit approval accepted. with commercial real estate transactions, health care Credit cards accepted. 866.842.5280 law and basic accounting skills, while maintaining at- tention to detail in all given tasks. Computer skills: For Complete Assets & Details of Auction Visit must be proficient in Microsoft, Word, Excel and See Lexis Nexis. Education: minimum requirement of a Crainsdetroit.com/Section/Classifieds www.sbmac.com Bachelor’s degree; prefer law school student with le- for more classified advertisements gal experience or recent law school gradate. MO Auctioneer’s License No. 57989 Please submit resumes to: [email protected] 20120423-NEWS--0022-NAT-CCI-CD_-- 4/20/2012 5:51 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS April 23, 2012 Visteon: Sale gives market a boost ■ From Page 3 ing office building in Troy at 1301 W. Long Lake Road for $12.3 mil- BIG REAL ESTATE DEALS lion. It also owns the 638,000- At a price of $81 million, the sale of the Grace Lake Corporate Center square-foot building at 585 South (formerly named Visteon Village) in Van Buren Township came close to a Blvd. in Pontiac occupied by 10-year high for the sale of office buildings. Here’s how the Visteon deal Hewlett-Packard Co. compares: “Things have changed tremen- Ⅲ Grace Lake Corporate Center Price per square foot: $159 dously in Michigan in the last 12 to Headquarters for Visteon Corp., 18 months, and we get a much later turned into a multi-tenant Buyer: more positive vibe from the busi- building CommonWealth REIT, Newton, nesses, and the real estate commu- Sale price: $81 million, including Mass. nity,” said Sovereign Partners co- 287 acres of land. Seller: founder Cyrus Sakhai. “We like Price per square foot: $91 Michigan as a whole.” Transwestern Investment Co., In the deal, Sovereign bought Two biggest office sales of 2011 Chicago the building from Visteon and will Ⅲ Chase Tower, Ⅲ Columbia Center, Troy then lease Visteon 527,000 of the Detroit Sale price: 880,000 square feet of space. The Sale price: $62 million firm represented itself. $16 million Price per square foot: $122 CORPORATE FLEET SERVICES PROVIDES LEASING PROGRAMS THAT Tenants previously leasing Price per square Buyer: Kirco HAVE SUBSTANTIAL BENEFITS OVER COMPETITORS space from Visteon — Toledo- foot: $36 based Dana Corp. is also a tenant Buyer: Dan Development Corporate Fleet Services can help you ﬁnd the vehicle that is right for your needs. along with Fairfield, Conn.-based Gilbert and Rock Ventures Corp., Troy With just one phone call, we can help you ﬁnd any make or model, car, truck, or General Electric Co. — will lease Seller: Sterling Group, Detroit Seller: Kennedy shuttle bus. Perhaps most importantly, Corporate Fleet Services is a “NO FEE” lessor. from Sovereign. Associates Real Estate Counsel L.P., Ⅲ Dime Building, Seattle What that means to you is no hidden fees or surprise surcharges. We only charge you Sakhai also said that signing for the competitive monthly lease rate for the duration of your lease. Detroit long-term leases with auto suppli- Sale price: Highest office sale price in 10 years COST COMPARISON ers wasn’t a deterrent in the deal. $15.4 million Ⅲ 150 W. Jefferson, Detroit “We are happy to have Visteon Price per square CFS Other Major Lessors Sale price: as our tenant; we’re comfortable foot: $36 $93.8 million with them and with all of the ten- Acquisition Fee $0 $500 Buyer: Dan Gilbert Price per square foot: Licensing $0 $100 ants,” he said. and Rock Ventures $190 The lasting impact will be felt in Title $0 $100 Seller: Wells Fargo Bank Buyer: Piedmont Office real estate valuations, said Kevin Realty Trust Inc., Johns Prorata Rent Fee $0 10%-90% of Kernen, director of valuation and Two biggest sales of 2010 Creek, Ga. total monthly payment financial opinions for Southfield- Ⅲ 777/789 E. Eisenhower Seller: Max Capital Management Registration Fee $0 $300-475 based Stout Risius Ross Inc. Parkway, Ann Arbor Corp. and The Landis Group, New Disposition Fee $0 $300 Buildings are appraised based on Sale price: $65.2 million York comparable sales, but there have been very few that are useful, ness objectives, while maintaining Kernen said, other than fore- our presence on this exceptional closures or sales from other Anytime campus,” he wrote in an email. places in the Midwest. “ Every headquarters building “There are some quality we get out-of- sold in recent history is lower than properties in our market with the original investment made by strong tenant mixes, but their state investors the company, said Mark Woods, valuations continue to be de- managing director of Southfield- pressed due to the lack of in- interested in based Signature Associates. vestment sales and the abun- “Buildings are sold on today’s dance of distressed property Detroit, it’s values, not on the investment a sales in Michigan,” he said. corporation puts into that loca- Though Visteon’s headquarters meaningful. tion,” Woods said. almost set a 10-year high for office ” Still, he said, it’s an important sales, the sale is less than a third of Mark Woods, Signature Associates sale for the region. the $300 million it cost to build the and spend money on other things, “Anytime we get out-of-state in- campus. On a per-square-foot ba- said Jim Fisher, director of corpo- vestors interested in Detroit, it’s sis, the sale price was $91 and the rate communications for the auto meaningful,” Woods said. “This is development cost was $337. supplier. a good signal.” Built in 2003 and completed in “Selling the property generates Daniel Duggan: (313) 446-0414, 2004, the sprawling campus setting significant proceeds that can be [email protected]. Twitter: of buildings sits on 287 acres near better deployed to further our busi- @d_duggan Ecorse Road and I-275. The buildings overlook a 37-acre lake. For Visteon, it was a chance to move away from being a landlord

BANKRUPTCIES The following businesses filed for Chapter 7 or 11 protection in U.S. Bankruptcy Court in Detroit April 13- 19. Under Chapter 11, a company files for reorganization. Chapter 7 involves total liquidation. Beadz ’n’ Bagz LLC, 402 S. Main St., Rochester, voluntary Chapter 11. As- sets and liabilities not available. Big Sky Motorsports Inc., 7015 Metro- plex Drive, Romulus, voluntary Chap- ter 11. Assets: $43,309; liabilities: $226,628. Eternal Image Inc., 28800 Orchard Lake Road, Suite 130, Farmington Hills, involuntary Chapter 7. Assets and liabilities not available. Total pe- titioner claims: $384,523.69. MaXaL Tool Co. LLC, 152 Main St., Suite 2, Belleville, voluntary Chapter 7. Assets: $11,932.33; liabilities: $122,353.79. — Meghana Keshavan 20120423-NEWS--0023-NAT-CCI-CD_-- 4/20/2012 5:55 PM Page 1

April 23, 2012 CRAIN’S DETROIT BUSINESS Page 23 DIA: Museum’s hope is to follow zoo with tax OK State Amtrak lines ■ From Page 1 to get fancier cars Museum standing alone working with Detroit-based public August ballot. The full board of The zoo got the legislative green relations firm Berg Muirhead and commissioners will consider the light in 2010 to ask tri-county vot- Michigan’s three Amtrak lines The DIA based its strategy to in- Associates on the campaign. request at its Tuesday meeting. ers to double the 0.1 millage they will get up to 25 new bi-level dependently pursue a tax of 0.2 The millage is needed to help The committee’s 4-4 vote on the approved in 2008 after seeing its passenger rail cars worth $106 mills in the three counties not only free up DIA fundraisers to raise request April 11 prevented the projected millage revenue de- million, under a federal plan on past attempts but the current money for an endowment to give measure from moving to a vote of crease with home values. But it announced Friday. sentiment of voters in each. the museum a sustainable operat- the full Board of Commissioners. doesn’t have any plans to do so in The cars, to be titled to the The museum polled 800 likely vot- ing model, Beal said. The Oakland County Board of Com- the near-term, Kagan said. state or its designated entity, will ers in Wayne, Oakland and Macomb The museum has spent the past missioners plans to consider the is- “While the millage is generating replace the rail service’s current counties in 2010 before launching its several years helping to raise mon- sue in early May. less than what we’d anticipated in fleet of 20 cars on its three lines, bid for a millage in the counties, ey for surprise expenses, such as However, the DIA millage would 2008 … we don’t see the case at the the Wolverine (Detroit/Pontiac- said COO AnnMarie Erickson. It asbestos abatement during the mu- not necessarily fail if not passed in moment to change it,” he said. Chicago), Blue Water (Port plans to repeat the polling in May. seum’s renovation, and to fill gaps all three counties. In that case, the Like the zoo, the DIA con- Huron-Chicago) and Pere Mar- In 2010, 63 percent or respon- left by declining corporate and oth- DIA said, it would have to re-eval- tributes “in an enormous way” to quette (Grand Rapids-Chicago) dents said they’d support the miller support following the recession, uate the millage based on the the quality of life, economic im- services, starting in 2015. The stock will be café cars, age, and that number rose to 70 he said. amount of revenue available. pact and the education of families percent when the DIA asked if coaches and cab cars, but no en- “After considerable discussion If passed in the three counties, the and children, Kagan said. free year-round admission to the gines, said Janet Foran of the and debate … the decision was millage would bring in an estimated Kagan said getting county lead- museum for residents of the three Michigan Department of Trans- made that the only realistic way $23 million each year to support the ers engaged is also critical. The counties would increase its portation’s office of communica- of buying us a chunk of time to museum’s operations, Beal said. zoo asked elected officials what chances. raise money for endowment was Of that, about $5 million would tion. The cars will include bet- The 0.2 mills the DIA is seeking was important to them in terms of ter bicycle storage and Wi-Fi, … to get a dedicated millage,” come from Macomb County, $8 the value proposition and came up would mean an annual tax of about Beal said. million from Wayne and $10 mil- among passenger amenities. with a suite of things, he said. $15 for a home with a fair market lion from Oakland. The cars are part of the U.S. De- Those ideas included for resi- value of $150,000. Admission to the “I think voters’ response department of Transportation’s $551 dents of the three counties: special DIA on each visit is $8 for adults Ballot approval needed pends on their perception of the al- million request for proposals for pricing for programs for school and $6 for children. The Wayne County Board of Com- ternative,” said Bettie Buss, who 130 new bi-level passenger rail When the DIA asked respon- missioners in late March approved led the 2000 and 2002 millage at- children, free senior days and dis- cars that must be entirely made dents how receptive they’d be to a creation of an authority to put the tempts as former staff director for counts on memberships. by American workers and Amer- millage if another cultural institu- DIA’s request for a millage on the Detroit Renaissance, which spurred The zoo included representation ican-produced steel and manu- tion such as the Detroit Symphony August ballot. those attempts. from the three counties on its factured goods. Orchestra or Michigan Opera Theatre The DIA is still working to gain “The zoo made it very clear that board as well, Kagan said. Funding will come from the were also included, support fell to approval in Macomb and Oakland they did not have the funding avail- “In all of this, it’s important to Federal Railroad Administration’s 50 percent or less, Erickson said. counties. able to maintain the facility with- listen to the leaders of the commu- High Speed Intercity Passenger The DIA expects to invest $2 mil- The Economic Development out voter support,” said Buss, now nities to understand what is im- Rail Program. lion in the effort to cover legal, Committee of the Macomb County senior research associate at the Citi- portant to them and then to try to — Bill Shea polling, advertising and other Board of Commissioners on Friday zens Research Council of Michigan. craft a unified formula that works costs for the effort, said Director approved the DIA’s request to re- That critical case for support is for everybody,” he said. Graham Beal. consider the establishment of the very important, she said, as is the Sherri Welch: (313) 446-1694, The museum, operating on a Macomb County Art Authority to value proposition voters per- [email protected]. Twitter: KNOW A HIGH-TECH HERO? budget of about $25 million, is put the museum’s millage on the ceive. @sherriwelch Crain’s Detroit Business is launching the CIO Awards, a recognition of the top technology executives in metro Detroit. It is open to the top corporate executive providing strategy related to technology at Driver: Customizer revs after marketing tuneup any company, or an outside ■ contractor acting as CIO for a From Page 3 corporation. company will sponsor 10 message has several sponsors, including for the automotive and defense in- focus on what it knows best: Amer- Winners will be chosen on the boards to target a demographic Dearborn-based Ford Racing, dustries that is now run by their ican cars. Previously, the compa- criteria of reducing costs, driving that’s already enthusiastic about which is part of Ford Motor Co.; mother, Norma Wallis. ny would attempt to work on any revenue and mitigating risk. the aftermarket tuning industry. and Farmington Hills-based Mahle Wallis started Livernois Motor- car a customer brought in, but it Go to www.crainsdetroit.com Livernois Motorsports has post- Industries Inc. sports as a side business in 2000, now it limits work to American /nominate to fill out a ed 391 videos on its YouTube He’s built up a reputation and buying a company called Stu Evans cars and specializes in those built nomination form by May 4. channel, which cumulatively has contact list that have made a Motorsports, Tom Millen said. The within the past three years. Winners will be honored in generated about 6.4 million views. name for Livernois Motorsports company had some early successes “We turn people away now if we the Aug. 6 edition and at a The most popular, “Driving Dan in racing circles. For instance, he but began losing customers and re- know that we can’t do our best pos- September event. For more Millen’s 6-Second Outlaw Mus- said Sheikh Khalid bin Hamad Al- ceiving some negative feedback. It sible work on their cars,” Tom information, contact Daniel tang to Burger King,” features Thani, a 24-year-old prince in lost business to competitors like Millen said. “Our number one fo- Duggan, deputy managing Millen cruising through a drive- Qatar known for his affinity for Clinton Township-based Katech cus is to put out the best quality editor, at dduggan@crain .com or (313) 446-1622. through in his souped-up race car. the sport, has spent about $500,000 Inc., particularly for work on spe- product.” “Social media play a huge role with the Millens. cific kinds of vehicles. in this business — both good and While most company projects “Some of the customers at Liv- bad,” Tom Millen said. “There are run between a couple of hundred ernois didn’t get the results they so many message boards that are and a couple of thousand dollars, wanted, or didn’t find the products predicated on a guy that has a performance upgrades can cost they needed, so they came to us,” Mustang. If you mess up once, more than $100,000. These large said Stephen Chue, Katech’s presi- everyone knows. If you do a good projects wind up being very costly dent. job, they might hear about it.” and time-consuming, however, In 2008, Dan and Tom Millen and aren’t necessarily more prof- bought Livernois Motorsports itable than a slew of smaller pro- from their mother so that she Street cred jects, Tom Millen said. could concentrate full time on Liv- About 65 percent of Livernois “They’re in a specialized mar- ernois Vehicle Development. Motorsports’ business comes ket,” said Steve Novosel, chair- Dan Millen, who has a mechani- from out of state. That’s in part man of Detroit Autorama, a yearly cal engineering degree from because Dan Millen juggles the convention for automotive enthu- Lawrence Technological University, business with regular jaunts siasts. “Once you start making said that Livernois Motorsports is around the country and world to changes on a brand new car to beginning to expand its automo- compete in drag-racing tourna- make it faster, the warranty goes tive engineering services, as well. ments. right out the window — but some The company is investing in new Dan Millen started drag racing people are still spending $10,000, equipment, like computer numeri- when he was 19 and has won sev- $20,000 on their cars.” cal control machines that cost eral championships, including about $100,000, to further cus- beating famed drag racer Bob Learning from mistakes tomize the auto parts it manufac- Glidden in the World Ford Chal- tures and installs. It also plans to lenge. Notably, in 2003 Millen was The Millens come from a line of add about five employees soon. the first person to drive a quarter vehicle enthusiasts. Their grand- It also has contract work cus- mile in an Outlaw Mustang, a pop- father founded Inkster-based Liv- tomizing cars directly for the De- ular drag car, at 202 mph. ernois Vehicle Development LLC, a troit 3. His Millen Racing team of four prototype development supplier And the company has learned to 20120423-NEWS--0024-NAT-CCI-CD_-- 4/20/2012 6:14 PM Page 1

Page 24 CRAIN’S DETROIT BUSINESS April 23, 2012 Women: Report finds women fare better at private companies ■ From Page 1 ter and the nonprofit women’s interior design and lighting engi- start raising families, and often leadership organization Inforum. WOMEN IN LEADERSHIP neering skills, Harwood said. start businesses or go to work for The leadership index, released That meshes with what the lead- smaller, entrepreneurial compa- Respondent companies in the Michigan Entrepreneurial Leadership Report biennially since 2003, reports on reported the following: ership report found — 30 percent nies that generally offer flexibility the number of women holding top of women leading divisions or de- for working mothers, she said. executive positions or board seats A woman leading a At least one woman as a direct report partments at survey respondents At her company — which has at the state’s 100 largest public division or department responsible for a division or department of the are involved in operations or prod- grown from a $2 million to $100 and reporting directly company ... companies. uct development. million operation since she formed to the most senior “The broad message is that leader in the at companies founded at companies founded Another 28 percent hold finance- it in 2000 — more than half of the there is quite a contrast” between company. by men: by women: related jobs, while only 16 percent dozen or so managers are women. large corporations and entrepre- are involved in human resources “We have a diversity mandate,” neurial companies, Barclay said. and 6 percent in marketing — ar- she said, noting that she believes The Michigan Entrepreneurial eas that often have high concentra- it’s a sound business practice to Leadership Report, based on re- tions of women, said Lisa Bower, have a workforce that looks like sponses to an online survey, found who as director of marketing for her clients. that 61 percent of respondents had 87% 77% 94% Ernst & Young in Detroit, oversees Other survey findings: at least one woman serving in a C- the firm’s Entrepreneur of the Ⅲ Sixty-nine percent of compa- level or equivalent senior leader- Year program in Michigan and nies with a board of directors had ship position within the company. northeast Ohio. at least one woman as a member. Fifty-eight percent of responding in the survey reported having a seven design department execu- The report found differences in Of those with a board of advisers, companies were founded by woman in a leadership role that tive directors are women, said Ron companies founded by men and 64 percent had at least one female women and 42 percent by men. leads a division or department and Harwood, president and founder. those by women. For example, 94 member. According to the 2011 By contrast, the 2011 Michigan percent of woman-founded compa- reports to the CEO or the most se- The company, founded in 1981, Michigan Women’s Leadership In- Women’s Leadership Index found nies employ at least one woman as nior position in the company. has grown from 30 employees to 50 dex, 53 percent of Michigan’s top that 49 percent of Michigan’s top a direct reporter responsible for a The organizations behind the in the past 4 1/2 years. 100 private companies had at least 100 public companies had no fe- study said there’s a common-sense “I don’t manage based on ratios division or department of the com- one female director. male top-level executives. link between diversity in leader- — I manage based on skills,” Har- pany, compared with 77 percent of Ⅲ Eighty-six percent of western Participants in the survey were ship and performance. wood said. “To me as a business- companies founded by men. Michigan companies have a drawn from two national entrepre- “We think organizations that man, it’s a matter of talent equals However, the level of executive woman on their board, compared neur awards programs, Ernst & are diverse and inclusive provide opportunity. Do what you can, and participation by women among Young’s Entrepreneur of the Year better solutions to their customers you get rewarded.” companies founded by men was with 50 percent of eastern Michi- and the Edward Lowe Foundation’s 50 and clients and overall perform Given the high rate at which significantly higher than in the gan companies. Among those with Michigan Companies to Watch, better,” said Jeffrey Bergeron, startup businesses fail, entrepre- largest public companies in Michi- board of advisers, 75 percent of both of which honor innovative or managing partner in Ernst & neurs are particularly driven to gan, Inforum officials said. western Michigan companies have high-growth businesses. About 15 Young’s Detroit office. fill leadership positions with the George said besides promoting female members vs. 57 percent in percent of the nearly 300 compa- At survey participant Illuminat- best talent, Harwood said. idea sharing, entrepreneurial cul- eastern Michigan. nies asked to participate responding Concepts, an architectural and Illuminating Concepts’ depart- tures are often more appealing to Ⅲ Manufacturing had the lowest ed, Inforum officials said. themed lighting designer in Farm- ment head positions are technical women. Many women leave corpo- percentage of female board mem- Also, 87 percent of respondents ington Hills, the CFO and three of in nature, requiring architectural, rate positions when they want to bers at 38 percent. Hospice: Group gets contract to manage sickest patients ■ From Page 3 of total costs in that age group, act is constitutional. cluding 140 primary care doctors, For example, Michigan Pio- tices from the DMC PHO.” said the U.S. Department of Health “Whatever the court rules, we and 13,500 Medicare patients, said neer’s 13,500 patients cost The third tier is the terminally and Human Services. believe ACOs or something like it Harris-Muller. Medicare an average of $229.5 mil- ill patients who need customized “You have a patient who needs is the future,” said Grant. “Twen- Harris-Muller said the three- lion each of the past two years. Un- care beyond normal primary care care at 3 a.m. They have heart fail- ty-five percent (of health spending) year contract with Medicare al- der the shared savings arrange- office visits, she said. A propri- ure or pulmonary disease. They is waste and duplication.” lows Michigan Pioneer to add doc- ment, if Michigan Pioneer reduces etary software program developed may be short on breath,” said What is a Medicare Pioneer ACO? tors and Medicare patients each care costs by 5 percent of that by Hospice of Michigan is identify- Steven Grant, M.D., DMC’s execu- It is a group of physicians, hospitals January through 2014. Two weeks amount, it splits the savings with ing terminally ill patients, Deremo tive vice president of physician or other providers who have agreed into the program, Grant said, six Medicare and earns a maximum of said. partnerships. “Sometimes (a pri- to coordinate care for a minimum of physicians and 100 patients are $5.7 million. “We decided to look at 200 to 300 mary care physician) can adjust 5,000 Medicare fee-for-service pa- participating and are pleased with However, if Michigan Pioneer patients at a time” to determine if their medication, but usually the tients over a three-year period. the results so far. spends more than $229.5 million in they are at end-stage illness, said only thing is to send them to the Besides DMC’s Michigan Pio- “Only 600 patients opted out of 2012, the DMC ACO must write a Robert Cahill, Hospice of Michi- emergency department.” neer, the other two ACOs in Michi- the program,” said Harris-Muller, check to Medicare for the differ- gan’s chief administrative officer. But in what Michigan Pioneer gan are the University of Michigan adding that Medicare expected a 95 ence, Grant said. To participate, Once patients are identified, calls its Personalized Care at Home Health System in Ann Arbor and percent participation rate. “Some Michigan Pioneer posted a $3 mil- Cahill said, patients and their program, participating Medicare the Genesys Physician Hospital Orga- have called to opt back in after lion bond to guarantee repayment physicians must agree to partici- patients will be given a phone nization in Grand Blanc. they saw (DMC CEO) Mike Duggan penalties, Harris-Muller said. pate in the ACO’s Personalized number to call HOMe’s nurse call University of Michigan’s ACO talk about it.” ACOs also are required to meet Care at Home program. “It may center to report medical problems has contracted with IHA Health Ser- The Pioneer ACO model is de- more than 33 quality measures, in- take up to nine months to identify 24/7, said Carrie Harris-Muller, vices Corp., an Ann Arbor-based signed to improve quality for pa- cluding patient satisfaction, safe- patients,” he said. Michigan Pioneer’s president. multi-specialty group practice with tients, but also reduce Medicare’s ty, preventive health and various Earlier this year, Hospice of “This will be a great service to 175 doctors and 45 nurse practition- costs, which have been rising chronic disease metrics, to ensure Michigan signed contracts with the patient and physicians. It will ers, to supplement its own 1,700- more than 8 percent a year the past that Medicare patients continue to Blue Care Network, Priority Health avoid unnecessary emergency de- physician faculty practice group to decade. Projections call for a 6 per- receive high-quality care. and United Healthcare for its partment visits and hospitaliza- care for its Medicare patients. cent growth from 2010 to 2020, “We are responsible (for quality @Home Support Program, which tions,” said Grant, who also heads The Genesys PHO, which will Medicare said. and costs) of those patients,” Grant it is also using with Michigan Pio- DMC’s physician-hospital organi- take care of 18,000 Medicare pa- Harris-Muller said Michigan Pi- said. “Medicare will pay the bill to neer, to reduce care costs and im- zation, which is responsible for tients, includes Genesys Health Sys- oneer has a big challenge because providers. Patients are free to use prove quality to terminally ill pa- care management oversight of tem and Genesys Physicians Group Medicare data shows the costs of any hospital or any doctor they tients. Michigan Pioneer’s patients. Practice with its 560 physicians, in- care for its 13,500 patients aver- want. Medicare will tally up the Deremo said Hospice of Michi- Last December, the Centers for cluding 160 primary care doctors, aged $17,000 per year compared costs for beneficiaries through gan is talking with other insurers, Medicare and Medicaid Services’ In- said CEO Michael James. with $10,000 per patient in Michi- claims data.” hospital-based systems and other novation Center awarded 32 con- James said Genesys has con- gan and $9,500 nationally for the Harris-Muller said Michigan Pi- ACOs to take care of patients at the tracts nationally for Pioneer mod- tracted with Flint-based HealthPlus same over-65 age group. oneer is in the process of analyzing end of their lives. el accountable-care organizations of Michigan to identify the 5 percent “We have a chronically ill, co- millions of medical data points on “The very ill need a lot of sup- to coordinate care for 860,000 of patients with the highest costs morbid (multiple chronic diseases) its patients that Medicare provid- port in the home,” Deremo said. Medicare patients. over the next 12 months. population,” Harris-Muller said. ed in four large computer files. “(People) can have two to 10 crises The Pioneer ACO program, “We want to improve their care “We have to provide high-quality, “We are taking a tiered approach in the last 24 months of life. The op- made possible by the Affordable and make it more cost efficient,” cost-effective care at the right time.” to care management. The first tier tions have been to go to the ER or Care Act of 2010, could save said James, adding that 5 percent of To provide financial incentives, is to provide prevention and well- hospital. We can reduce this with Medicare up to $1.1 billion over the most expensive patients account Medicare is allowing Pioneer ness (including flu vaccines and personalized programs.” five years. However, the U.S. for 55 percent of all medical costs. ACOs to share equally up to 5 per- annual checkups),” she said. “We Jay Greene: (313) 446-0325, Supreme Court is expected to de- The DMC Michigan Pioneer cent of savings on the population want to manage patients with mul- [email protected]. Twitter: cide by mid-June on whether the ACO consists of 174 physicians, in- of patients under their care. tiple conditions using best prac- @jaybgreene 20120423-NEWS--0025-NAT-CCI-CD_-- 4/20/2012 5:50 PM Page 1

April 23, 2012 CRAIN’S DETROIT BUSINESS Page 25 Pistons: Perks fly to pump up Palace attendance www.crainsdetroit.com ■ EDITOR-IN-CHIEF Keith E. Crain From Page 1 PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] making the playoffs. the team’s debt and finances. season include refurbishing and EXECUTIVE EDITOR Cindy Goodaker, (313) 446- Mannion is trying to stanch the NEW FACES Player salaries are capped by the enlarging the Pistons locker room 0460 or [email protected] bleeding for new team owner Tom league at $58 million this season. along with other backstage reno- MANAGING EDITOR Jennette Smith, (313) 446- These are some of the key 1622 or [email protected] Gores, the billionaire private-equi- executives hired at Palace Sports vations, and upgrades to the west DEPUTY MANAGING EDITOR Daniel Duggan, (313) ty mogul who bought the Pistons atrium lobby and employee work 446-0414 or [email protected] & Entertainment in recent months: Fixing things SENIOR EDITOR Bob Allen, (313) 446-0344 or and PS&E in June for $325 million. Ⅲ Lucinda Treat, executive vice areas. [email protected] There’s a new organizational Mannion and his staff are trying PS&E hasn’t said how much it WEST MICHIGAN EDITOR Matt Gryczan, (616) 916- president, business operations 8158 or [email protected] chart at the Palace, with new exec- and strategy to keep the team in the black by has spent so far. COPY DESK CHIEF Gary Piatek, (313) 446-0357 or utives, new jobs, reorganized of- Ⅲ Charles Metzger, executive vice persuading fans to watch whatev- Former Pistons and Palace [email protected] ASSISTANT NEWS EDITOR Jeff Johnston, (313) fices, new business strategies, new president, chief marketing and er sort of team is on the court. Sports owner Bill Davidson, whose 446-1608 or [email protected] ancillary entertainment and offer- communications officer Among the new perks for 2012-13 death in 2009 led to the team’s sale, DATA EDITOR Brianna Reilly, (313) 446-0418, ings for fans, and millions spent on Ⅲ Jeffrey Ajluni, executive vice for those who renew or buy season built the Palace in 1988 for $90 mil- [email protected] WEB EDITOR Gary Anglebrandt, (313) 446-1621, capital improvements. president and chief revenue officer tickets for the first time is an Adi- lion out of his own pocket. He [email protected] None of that makes the team Ⅲ Adam Schneider, senior vice das warm-up jacket that has a mi- spent an additional $112.5 million EDITORIAL SUPPORT Robertta Reiff (313) 446- 0419, YahNica Crawford, (313) 446-0329 win, however, and winning is why president, events and booking crochip inside that automatically in subsequent renovations. NEWSROOM (313) 446-0329, FAX (313) 446- fans pay money to watch the Pis- Ⅲ Harlan Hendrickson, vice provides a 20 percent discount at There has been discussion of the 1687 TIP LINE (313) 446-6766 tons, who are just 23-40 this season. president of marketing concessions stands and 30 percent Palace possibly selling naming REPORTERS Mannion has Ⅲ Rob McCalebb, director of suite for merchandise at the Palace, rights. The Los Angeles-based Daniel Duggan, deputy managing editor: Covers real estate. (313) 446-0414 or [email protected] nearly carte sales and service Mannion said. sports marketing and talent man- Jay Greene, senior reporter: Covers health care, blanche to bol- Ⅲ Scott Wruble, vice president of “In the past, we’ve concentrated agement firm Wasserman Media insurance and the environment. (313) 446-0325 or [email protected] ster the fan ex- information technology on just getting the bill out,” he Group was hired by the Palace to Chad Halcom: Covers law, non-automotive perience at the Ⅲ Steve Smith, vice president, said. “Now, we’ve laid out for folks find new revenue opportunities at manufacturing, defense contracting and Oakland and Macomb counties. (313) 446-6796 or Palace, and to ticketing, consumer sales and exactly what their amenities are.” the venue, and naming rights is a [email protected] convince season service The team is also launching a possibility, although management Tom Henderson: Covers banking, finance, technology and biotechnology. (313) 446-0337 or ticket holders to Source: Palace Sports “flex” plan of 20 tickets that can be has downplayed that. [email protected] renew, but the used in a variety of ways. It could “Wasserman was used to con- Nancy Kaffer: Covers small business, the city of Detroit and Wayne County government. (313) 446- basketball team be 20 tickets for one game, or one sult on viability and packaging 0412 or [email protected] is handled by ticket to 20 different games, for ex- thoughts. Their work is done,” Bill Shea, enterprise editor: Covers media, Mannion advertising and marketing, the business of sports, Pistons Presi- DETROIT PISTONS VITALS ample. There will be some restric- Mannion said. “We are open to and transportation. (313) 446-1626 or dent Joe Dumars — and they both tions, which are still being worked naming-rights discussions if the [email protected] Game attendance has been falling Nathan Skid, multimedia editor. Also covers the report directly to Gores. since the 2008-09 season: out, for games against popular op- right partnership comes about. By food industry and entertainment. (313) 446-1654, Dumars has solid young players ponents such as the Miami Heat, ‘right’, we mean a sensible two- [email protected] Attendance in Brandon Knight and Greg Mon- Chicago Bulls, Boston Celtics and Los way partnership that will produce Dustin Walsh: Covers auto suppliers, steel, higher Average NBA education and Livingston and Washtenaw roe, and he will be under the micro- Angeles Lakers, Mannion said. returns for both of us.” counties. (313) 446-6042 or [email protected] Record per game rank Sherri Welch: Covers nonprofits, services, retail scope as he tries to find more talent. Part of the PS&E management and hospitality. (313) 446-1694 or A request for comment was left 2005-06 64-18 22,076 1 change-over included reorganiz- [email protected] with Gores’ aides. 2006-07 53-29 22,076 2 ing the six floors of administrative The concert business ADVERTISING 2007-08 59-23 22,076 1 departments inside the Palace. PS&E’s concert and event busi- ADVERTISING DIRECTOR Marla Wise, (313) 446- 6032 or [email protected] 2008-09 39-43 21,877 1 Each floor now has a junior CFO ness has a strong industry reputa- Anemic attendance SALES INQUIRIES: (313) 446-6052; FAX (313) 2009-10 27-55 18,751 8 that can answer financial question. 393-0997 Detroit’s slide in the standings 2010-11 30-52 16,660 18 tions and eliminate the need for The Palace was listed as the SENIOR ACCOUNT EXECUTIVES: Matthew J. Langan, Tamara Rokowski has been matched by a slide in at- 2011-12 23-40 14,383 27* lengthy project planning. eighth best-selling U.S. arena the ADVERTISING SALES Christine Galasso, Lori tendance. (See box.) * With two games remaining Mannion replaced many of the past two years by concert trade mag- Tournay Liggett, Dale Smolinski The Pistons drew 445,896 fans top PS&E executives with his own azine Pollstar. The venue has been CLASSIFIED SALES (313)-446-0351 Source: ESPN EVENTS DIRECTOR Nicole LaPointe through 31 home games this season hires, and added several new posi- voted Arena of the Year eight times EVENTS COORDINATOR Kacey Anderson for an average of 14,383 per game — tions. (See box.) by Performance magazine and twice SENIOR PRODUCER FOR DIGITAL/ONLINE the Palace, however, looks nearly Palace Sports has 215 staffers, by Pollstar and is among North PRODUCTS Pierrette Dagg that saw NBA owners lock out the MARKETING ARTIST Sylvia Kolaski empty for some games — which is players for 150 days over how to and basketball operations adds an- America’s top-grossing arenas. SALES SUPPORT Suzanne Janik, YahNica Crawford 27th in the 30-team NBA. That’s 65 split the league’s $4 billion in rev- other 40. Another 1,200 part-timers “The Palace has been one of the AUDIENCE DEVELOPMENT MANAGER Candice Yopp percent of capacity at the 22,076- enue. A new collective bargaining work games and other events. most successful concert venues in MARKETING COORDINATOR Jenny Griffith seat Palace. The team’s two final agreement was reached in Decem- The latest PS&E move was last North America,” said Gary Bongio- PRODUCTION MANAGER Wendy Kobylarz home games were Sunday against ber. week’s purchase of an analytics vanni, editor-in-chief of Pollstar. PRODUCTION SUPERVISOR Larry Williams the Toronto Raptors and Thursday For a team like the Pistons, each system from Haddonfield, N.J.- One of PS&E’s continuing strate- CUSTOMER SERVICE against the Philadelphia 76ers. canceled game is believed to have based Turnkey Sports & Entertain- gies is to book a lot of shows with MAIN NUMBER: Call (877) 824-9374 or write The Pistons led the NBA in per- been about $1 million in lost rev- ment Inc. that manages surveys very low ticket prices at its venues, [email protected] game attendance from 2002-03 enue. and centralizes online consumer he said, but entertainment that SUBSCRIPTIONS $59 one year, $98 two years. Out of state, $79 one year, $138 for two years. through 2008-09, except for a sec- Not making the playoffs also data used for market research. still will attract thousands of fans Outside U.S.A., add $48 per year to out-of-state ond-place ranking in 2006-07. By “The new direction of PS&E is to — what he calls “heritage acts” rate for surface mail. Call (313) 446-0450 or hurts the bottom line. NBA teams (877) 824-9374. 2009-10, they dropped to eighth and take in between $500,000 to $2.5 be strategic and use analytics to such as Heart or Eddie Money. SINGLE COPIES: (877) 824-9374 then were 18th last season. million per playoff game, accord- drive our business,” Lucinda “They do stuff like that, which REPRINTS: (800) 290-5460, ext. 125; (717) 505-9701, ext. 125; or lindsay.wilson In response to the decline, the ing to a New York Times report. Treat, PS&E’s executive vice presi- brings out huge crowds. I’m sure @theygsgroup.com team cut all ticket prices by up to That’s costly for a team that’s dent of business operations and they make plenty of money on TO FIND A DATE A STORY WAS PUBLISHED: 10 percent in recent years. believed to have been running on a strategy, said in a statement. “Op- parking and concessions,” Bongio- (313) 446-0367 or e-mail [email protected] Full season tickets are still pretty narrow margin. timizing the fan experience, un- vanni said. CRAIN’S DETROIT BUSINESS IS PUBLISHED BY CRAIN COMMUNICATIONS INC. pricey. For next season, they range derstanding customer preferences That strategy has worked, keep- CHAIRMAN Keith E. Crain from $359 to $7,000 for a single seat and managing the perceptions of ing the PS&E venues filled despite PRESIDENT Rance Crain in the bowl. The bulk of those are Narrowing margins our brands across all of our prop- the recession. Besides the Palace, SECRETARY Merrilee Crain TREASURER Mary Kay Crain in the $900-to-$1,000 range. The Pistons had $9.7 million in erties is a top priority.” PS&E has DTE Energy Music Theatre Executive Vice President/Operations The limited number of courtside operating revenue last season, on The changes at the Palace aren’t and holds the contract to manage William A. Morrow Group Vice President/Technology, season tickets for all 41 home games revenue of $141 million, according limited to business practices. Meadow Brook Music Festival for Manufacturing, Circulation range from $8,000 each to $25,000. to a Forbes.com report in January. PS&E confirmed it has begun a Oakland University. Robert C. Adams Vice President/Production & Manufacturing The more than 180 suites at the The financial news outlet defines three-year capital improvement Mannion said he isn’t satisfied Dave Kamis Palace are another revenue operating income as earnings be- plan at the Palace that includes the with the rankings. Chief Information Officer Paul Dalpiaz source, and they were leasing for fore interest, taxes, depreciation upcoming renovation of the 80 “I’m not motivated terribly by Chief Human Resources Officer about $450,000 per season a few and amortization. third-level suites that circle the saying you’re Pollstar’s No. 1-rated Margee Kaczmarek The New York Knicks topped the Director of Audience Development Operations years ago. More recent estimates top of the arena. venue if you’re not the No. 1 in rev- Michelle Roth on suites were not available, but NBA at $75 million in income. News surfaced in January in enue,” he said. G.D. Crain Jr. Founder (1885-1973) the team has struggled to fill them. It’s unclear, with the continued Sports Business Journal that the Separate from basketball, PS&E Mrs. G.D. Crain Jr. Chairman (1911-1996) EDITORIAL & BUSINESS OFFICES: ticket sales fall-off, what income plan is to alter the Palace’s 178 is expected to hit $70 million in 1155 Gratiot Ave., Detroit MI 48207-2732; (313) and revenue will be for the Pistons suites into 80 skyboxes, but PS&E revenue when the 2011-12 fiscal 446-6000 The losing Cable address: TWX 248-221-5122 AUTNEW DET this current season. In 2011, De- has declined to talk about it. year ends in June. A few years ago, CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 The Pistons have been eliminat- troit’s operating income was al- Some of the space would be con- before the recession, that figure is published weekly, except for a special issue the third week of August, and no issue the third week ed from playoff contention this most $32 million, and in 2010 it was verted from suites into a restau- was about 40 percent higher. of December by Crain Communications Inc. at season, making it three seasons $47 million. rant, social media gathering sites Palace Sports’ financial back- 1155 Gratiot Ave., Detroit MI 48207-2732. Periodicals postage paid at Detroit, MI and since they earned a postseason bid. In addition to gate receipts, and a sports hall of fame. The up- bone remains, however, the bas- additional mailing offices. POSTMASTER: Send address changes to CRAIN’S DETROIT BUSINESS, The last time Detroit was absent parking, concessions and mer- per-level suites are typically ketball team. Circulation Department, P.O. Box 07925, Detroit, for three consecutive seasons from chandise sales, the team is be- leased on a game-by-game basis “The Pistons, that’s what selling MI 48207-9732. GST # 136760444. Printed in U.S.A. the playoffs was 1992-93 through lieved to collect $25 million annu- and are difficult to sell, Mannion those suites. Not the concerts,” Entire contents copyright 2012 by Crain 1994-95. ally from a 10-year local TV told the trade magazine. Bongiovanni said. Communications Inc. All rights reserved. Reproduction or use of editorial content in any The 2011-12 season was abbrevi- broadcast rights deal signed in For now, PS&E isn’t disclosing Bill Shea: (313) 446-1626, manner without permission is strictly prohibited. ated to 66 games — it’s normally 82 2008 with Fox Sports Detroit. much else on its capital plans. [email protected]. Twitter: — because of the labor impasse Management declined to discuss Improvements for the current @bill_shea19 20120423-NEWS--0026-NAT-CCI-CD_-- 4/20/2012 5:56 PM Page 1

Page 26 CRAIN’S DETROIT BUSINESS April 23, 2012 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF APRIL 14-20

founding, its famous mem- months, according to a bers and visitors, the efforts UM OKs $163M CELEBRATE M&A study released by PNC Fi- to diversify membership nancial Services Group Inc. in Sweet ride? and its various renovations conjunction with the and changes over the years expansion for bank’s annual economic as it prepares to celebrate luncheon at The Townsend its 100th anniversary in neurosciences Hotel in Birmingham. Bike builder 2015. The book was written by niversity of Michigan’s Ken Voyles, editor of the HEALTH CARE board of regents ap- DAC News, and Mary Ro- U proved a $163 million St. Joseph Mercy Hospi- drique, a contributing writer expansion to the building tal in Ann Arbor and Beau- for the club’s newsletter. sets up shop that formerly housed C.S. mont Hospital in Troy were The 160-page, softcover Mott Children’s Hospital and among seven in Michigan he Motor City as that’s more expensive than book, which retails for Von Voigtlander Women’s Hos- AARON ECKELS that won recognition from Sprocket City? the bicycles at retail chain $19.99, is published by the pital into a neuroscience fa- Ann Arbor-based Thomson T Zak Pashak can see stores, it’s cheaper than Charleston, S.C.-based The Valenti Capital LLC CEO cility to treat diseases of the Reuters as being among the it. The Calgary, Alberta, na- other American-made bikes History Press. It can be pur- Sam Valenti III was brain and spine. The pro- nation’s top 100 teaching tive is prepping his new and custom bikes that have chased at the DAC, at honored as Lifetime ject, which will require cer- hospitals. business, Detroit Bikes LLC, become popular in the U.S., Barnes & Noble, at history- Achievement Winner on tificate of need approvals, is McLaren Health Plan an- to begin cranking out up to Pashak said. press.net or amazon.com. Thursday at Crain’s annual expected to be completed by M&A Awards for his nounced plans to acquire 100 bikes per day by the end CareSource Michigan, a non- of this year. the end of 2014. longtime contributions to First local Jane Jacobs ‘SNL’ star Meyers to host the state’s private equity profit Medicaid health Pashak said it’s possible and venture capital maintenance organization to produce affordable Amer- Walk slated for May 6 local comedy benefit ON THE MOVE communities. owned by Dayton, Ohio- ican-made bikes in volume, Other winners honored based CareSource, the na- Detroit’s first Jane Jacobs Funnyman Seth Meyers, Mick Goik has been especially in Detroit, where were: Becton, Dickinson & tion’s second-largest Medic- Walk is set for May 6, start- anchor of the “Weekend Up- named president and COO the equipment and talent Co./Accuri Cytometers Inc. aid HMO, for $27 million. ing at Mike’s Market on Liv- date” news parody segment of Troy-based Crestmark exists at costs that are com- (Deal over $100 million); Quality initiatives be- ernois Avenue. on “Saturday Night Live,” is Bank, succeeding W. David petitive with Asian makers. Strength Capital tween 70 Michigan hospi- The walks — held all over hosting Friday’s 20th annu- Tull as president. The title Partners/TriMas Corp. (Deal “Instead of ordering parts tals and Blue Cross Blue the country — are held in al comedy fundraiser to of COO is new at Crest- under $100 million); Angle from Taiwan for $6 for a lit- Shield of Michigan have honor of community ac- benefit Oak Park-based For- mark. Tull remains chair- Advisors-Investment tle piece of metal, we’re saved more than $232 mil- making them for 12 cents tivist Jane Jacobs, who gotten Harvest. man and CEO. Banking LLC (Dealmaker adviser); and Huron Capital lion over three years and apiece,” he said. “There are worked in Manhattan and The charity’s mission is Toronto, protecting neigh- to eliminate hunger by Partners LLC (Dealmaker have reduced surgical com- people in Detroit who are buyer/seller). plication rates and patient really good at making borhoods. The walks are eliminating food waste. COMPANY NEWS built around the idea that The event at the Somerset mortality, officials said in a pieces of metal in certain A new presenting spon- Flint-based Citizens Re- walking a neighborhood is Inn, in partnership with the news conference. The four shapes.” sor for this year’s event is public Bancorp Inc. reached the best way to understand Association for Corporate Blue Cross-sponsored ini- Detroit also has an indus- FunnyOrDie.com, one of the another milestone in its re- Growth-Detroit Chapter, and appreciate it. tiatives covered 200,000 pa- trial manufacturing edge he top comedy websites. The covery from the recession: attracted 365 members of No registration is re- tients in general surgery, believes will bring brand site last year had actor Peter The Federal Reserve Bank of the metro Detroit finance quired. The walk begins at 2 bariatric surgery, angio- cachet to his product. Weller do a video fundrais- Chicago and the Michigan Of- and legal community. p.m. and concludes at 1917 plasty and cardiac surgery. Pashak hired four full- ing pitch for the Detroit fice of Financial and Insur- American Bistro, also on Liv- time employees to engineer RoboCop statue effort, and ance Regulation announced ernois, at 4 p.m. Partici- CVC Capital Partners Ltd. the bike designs and pro- then a “RoboCharity for that they had terminated pants will visit a park, a is in advanced talks to buy OTHER NEWS duction tools. Three of Forgotten Harvest” video the consent agreement un- historic home, a church, a control of Southfield-based The SHAR Foundation’s them, including the fore- with Weller. der which the bank had cemetery and other local AlixPartners LLP in a deal that job-creating urban farming man, lost their jobs making The event is at 8 p.m. been operating since July fixtures. may value the consulting project, dubbed Recovery- exhibits for the Detroit Sci- April 27 at Orchestra Hall. 28, 2010. For details, visit janeja- firm at about $1 billion, in- Park, planned for Detroit ence Center after it closed Tickets are $25, on sale at Art Van Furniture Inc. cobswalk.org/category/citi cluding debt, Bloomberg re- has received a $1 million last year. forgottenharvest.org, has confirmed that it is es/detroit2012. ported. Hellman & Friedman grant from the Fred A. & Bar- He’s funding the business dso.org and at the Orches- looking to take its furniture LLC is selling its controlling bara Erb Family Foundation. with earnings from a bar he tra Hall box office. stores into Chicago as part stake in AlixPartners, after Three business leaders owns in Vancouver and proof a plan to expand outside New book documents ditching the idea of an IPO. — including Robert Bowman, ceeds from other invest- Michigan. Michigan’s former state DAC’s first century BITS & PIECES Delphi Automotive plc, ments. Pashak expects to in- treasurer — have been ap- The Troy office of New the former parts unit of CONOMY vest up to $400,000 to get the A new history of the De- E pointed to an advisory Jersey-based insurance General Motors Co. that held bike company rolling. troit’s most famous private A smaller base of man- board that will monitor De- provider Chubb Corp. has an IPO in November, is For now, prototyping is club is now on bookstore ufacturers employed a larg- troit’s budget and fiscal won the company’s Plat- considering paying a divi- happening in the carriage shelves. er workforce in Michigan, turnaround, the governor’s dend as early as this year, house of his Boston-Edison The Enduring Legacy of inum Global Branch Perfor- reversing an industrial em- office announced. Darrell neighborhood home. The Detroit Athletic Club mance Award for its top Bloomberg reported. ployment decline of several Burks, partner at Pricewater- Pashak aims to have each traces the history of the performance in 2011 in the Dana Holding Corp. an- years, said trade database houseCoopers and Ken Whip- bike cost about $500. While club from the roots of its middle-market sector. nounced it will close its publisher Manufacturers ple, retired chairman of CMS Rochester Hills engine and News Inc. In February, Energy, join Bowman as the transmission oil coolers Michigan had 14,286 manu- first of nine appointees plant, which employs 150. facturers employing 638,336 called for under an agree- Most workers will have op- workers, compared with ment between Detroit May- portunities to transfer to 14,430 companies employ- or Dave Bing and Gov. Rick other plants, Dana said. ing 628,084 people the same Snyder. TRW Automotive Hold- month in 2011. Michigan State Universi- BEST FROM THE BLOGS ings Corp. says it has re- Residential sales in ty has proposed building an READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS ceived orders for its elec- metro Detroit rose month urban agriculture research tric park-brake technology over month and year over center in Detroit that could Guv says, ‘Let there be booze’ Comerica’s move panning out? from three major North year, and more new home- grow into a $100 million American automakers it building permits were taken project covering 100 acres, Common sense A little more than declined to identify, Auto- out in the first quarter of AP reported. The city says prevails.“ The governor five“ years ago, (the motive News reported. 2012 than in any first quar- the proposal has potential signed a bill making it news) sent shockwaves Customers of DTE Ener- ter in the past five years, ac- but would be a long way easier for entrepreneurs through metro Detroit: gy Co. and CMS Energy cording to reports by Farm- from approval. Comerica Bank was looking to acquire a liquor Corp.’s Consumers Energy ington Hills-based MLS moving its headquarters license in Detroit and for unit can expect to get a re- Realcomp II Ltd. and Clark- the City Council, which to Texas. Now, guess fund soon, since the Michi- OBITUARIES was put in charge of which of the bank’s ston-based Housing Con- approving each liquor markets contributed the gan Public Service Commis- sultants Inc., respectively. A. Barry McGuire, for- license application in the most to the company’s sion ordered DTE and its Michigan business mer board member of Blue city. bottom line? gas subsidiary MichCon to owners (56 percent) are Cross Blue Shield of Michigan refund $30.9 million to cus- more optimistic about the and executive vice presi- Reporter Tom Henderson’s blog about accounting, Reporter Nathan Skid’s Detroit-area” restaurant blog ” tomers. Consumers must Michigan Automo- can be found at www.crainsdetroit.com/skid banking, venture capital and high tech can be found state’s economy than the dent of the at www.crainsdetroit.com/henderson refund $25.4 million, the De- national economy (46 per- bile Dealers Association, died troit Free Press reported. cent) over the next six April 14. He was 78. DBpageAD.qxp 4/18/2012 10:10 AM Page 1

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