Detroit Ch. 9 May Set Pension Precedent

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www.crainsdetroit.com Vol. 29, No. 31 AUGUST 5 – 11, 2013 $2 a copy; $59 a year

Page 3 We are trying “ to be fair, but we are trying to Detroit Ch. 9 may set deal with the realities that have been coming here for a long time. pension precedent Kevyn ”Orr Orr:Law doesn’t shield retirees from cuts

BY CHAD HALCOM Tools of political influence: AND KIRK PINHO MORE ON DETROIT’S BANKRUPTCY CRAIN’S DETROIT BUSINESS Opinion, cash Q&A: Felix Rohatyn was there when New York City NATHAN SKID/CDB A new committee will take shape in the com- was on the brink, and he has some ing weeks to represent more than 23,000 re- advice, Page 24 HIGHLIGHTS OF KEVYN ORR’S PLANS tirees in court and negotiate their future bene- Video: Kevyn Orr on good-faith fits as a class of creditors in Detroit’s Chapter 9 bargaining, communicating with retirees The city is working to restructure all debt, with and why the focus isn’t just on health care, bankruptcy. www.crainsdetroit.com/video health care and pension liabilities at the top of But do the retirees have any special legal

CARTER SHERLINE the pile. claims that set them apart as creditors? may well make the call that sets the new legal Negotiations with creditor groups are ongoing Detroit Emergency Manager Kevyn Orr told and a cram-down plan (involuntary imposition of standard on retirees’ creditor rights at U.S. Bank- Crain’s in an interview last week that he be- a reorganization plan over the objection of some ruptcy Court. No other municipal bankruptcies classes of creditors) so far isn’t planned. lieves federal bankruptcy doctrine prohibits have advanced to a court precedent for Detroit or the city from treating its 9,750 employees and Preserving funding for public safety, IT, blight others to follow when it comes to pensions, al- removal and economic development remain 23,500 retirees differently from any other unse- though retirees preserve contractual rights un- priorities. cured creditors — or even from each other. der a reorganization plan in Jefferson County, Is FlockTag it in the The city plans to secure a contract or multiple “We don’t see any doctrine in the bankruptcy Ala., that’s up for court review this week. contracts to outsource trash collection, recycling code that allows you to discriminate,” he said. Orr is awaiting a new actuarial analysis of customer-loyalty game? and waste disposal. Proposals are due by Sept. 10. “In fact, most of the doctrine of the code pro- the city’s two employee pension fund obliga- A plan to regionalize the Detroit Water and hibits you from discriminating against classes of tions from Seattle-based Milliman Inc. and said Sewerage Department under a new authority creditors unless their behavior is unreasonable. he hopes to have completed reports in hand lat- Inside remains under development by the city and So we treated them as we think federal law reer this month. His attorneys said in court Fri- surrounding counties. quires them to be treated. We are not discrimi- day that they could submit a reorganization Medicaid alternatives may The city is switching employees to a high- nating.” plan by year’s end, three months ahead of cover fewer and cost more, deductible health plan. That means Judge Steven Rhodes, who or- dered the retiree committee formation on Friday, Page 4 See Pensions, Page 24

Oakwood creates post- acute care unit, Page 6 Mars CEO aims Wayne County sees VC at shoppers bigger as better in Griffon Ventures plans foreclosure auction

BY GARY ANGLEBRANDT downtown Detroit move GLENN TRIEST Ken Barnett of Mars Advertising SPECIAL TO CRAIN’S DETROIT BUSINESS said he is talking with Bedrock BY TOM HENDERSON IS FLOCKTAG IT? The Wayne County treasurer’s office, swim- Real Estate about small spaces CRAIN’S DETROIT BUSINESS Ann Arbor firm in downtown Detroit. ming in tax foreclosures, is planning to bundle wants to expand hundreds of dilapidated tax foreclosure proper- Mars Advertising Inc. is growing beyond ad- into Groupon $100,000 per deal, according ties into one package at its fall auctions. vertising. Ken Barnett, CEO of the Southfield- territory, Page 3 to Ethan Goodman, Grif- The treasurer’s office has experimented with DETROIT 2.0 based ad agency, has founded a venture capi- fon’s managing director. bundling in the past, for cases such as subdivi- tal firm to invest in technologies that serve the Mars will serve as “our institutional angel Although the city of Detroit sion projects that fell apart. But this would be declared bankruptcy this shopper marketing niche Mars specializes in. investor,” said Goodman. the first time it has bundled such a large num- summer, the entrepreneurs of It’s a growth curve that may eventually Members of the Mars management team will ber of properties. Motown remain enthusiastic. lead the longtime fixture in Southfield — its get equity stakes in Griffon’s portfolio compa- It’s a deliberate strategy to best position the Find out who is coming, who is 70,000-square-foot headquarters is on Tele- nies in exchange for acting as mentors and properties for the future. The point, a county of- staying and who is building in graph Road north of 10 Mile — to move to helping entrepreneurs connect with Mars ficial says, is to make the bundle so unattrac- our special issue “Detroit 2.0,” downtown Detroit to be closer to all the entre- clients, which include Wal-Mart Stores Inc., Hall- tive and unwieldy that the properties don’t sell. which is being delivered with preneurial activity going on, said Barnett. mark Cards Inc., Pepperidge Farm Inc. and Camp- Many of the properties have dilapidated struc- this week’s issue of Crain’s, bell Soup Co. Additional coverage can be The VC, Griffon Ventures, was founded last tures that should be demolished, said Dave Szy- “We’re asking our management team to found at crainsdetroit.com. year. It won’t have a fund, but will invest on a deal-by-deal basis, typically between $50,000 and See Mars, Page 25 See Auction, Page 21

Year-round exposure. High-quality leads. Exclusive content. NEWSPAPER 20130805-NEWS--0002-NAT-CCI-CD_-- 8/2/2013 1:19 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS August 5, 2013

MICHIGAN BRIEFS Genesee County delays bond sale week affirmed a lower court ruling that 12 graduates of the Lansing- after Detroit shakes up markets With merger, Perrigo to wear the green to earn green based Thomas M. Cooley Law School Genesee County is home to are not entitled to a tuition refund Flint, which also is under a state- When Perrigo Co. announced last week that it both companies. The companies said the merger because they couldn’t find satisfac- appointed emergency manager. In- planned to merge with the Irish pharmaceutical com- would leave existing Perrigo investors with 71 per- tory jobs, The Associated Press re- vestors in the $3.7 trillion munici- pany Elan Corp. in an $8.6 billion transaction, much of cent ownership. ported. The grads claimed they pal market have speculated that the coverage centered on the plan to move Perrigo’s Another reason Perrigo moved on Elan: Royalties were misled by the school’s em- Detroit’s treatment of its general- headquarters from Allegan, the company’s home on Tysabri, a multiple sclerosis drug whose sales ployment statistics. obligation debt could set a prece- since 1887, to Dublin for tax purposes. And for good have been growing at a 19 percent compound annual Ⅲ Grand Rapids-based Crystal dent for other distressed cities in reason, according to the numbers and wire reports. growth rate from 2008 through 2012. Flash last week extended the reach Michigan. An Irish HQ would allow Perrigo’s corporate prof- Elan emerged as a leader in biotechnology and in of its fuel distribution network to its to be taxed at 12.5 percent, one of the lowest rates finding a treatment for Alzheimer’s disease in the Southeast Michigan by acquiring in Europe, whereas the U.S. levies 35 percent. Perri- 1990s but nearly collapsed when initial trials of C. Barron & Sons in Monroe, For merged firms, the first rule of go Chairman and CEO Joe Papa said the move to Tysabri failed and it got caught up in an accounting MLive.com reported. It’s the sixth marketing: Do More Good Ireland should add more than $150 million in net scandal in 2002. acquisition in the past 18 months profits annually because of lower taxes and efficien- Perrigo is already the largest maker of generic for Crystal Flash, which sold its Crain’s readers have stumbled cies from combined operations. drugs for major U.S. retail chains, including Wal- convenience stores a few years ago. upon some rather (pause while edi- In the transaction, Perrigo would create an entity greens and Wal-Mart. It has expanded rapidly, with ac- Ⅲ The Associated Press reports tor thinks of word that is suitably called New Perrigo that would acquire shares of quisitions in Israel, Britain, Mexico and Australia. that the fifth edition of Grand diplomatic without being unctu- Rapids’ annual ArtPrize competi- ous) intriguing corporate names tion will have something new on over the years. And if you are one Representatives for the ampersand, Ⅲ Kalamazoo Valley Community Col- cery chain was forced to cut work- the program this fall: an Internet who thinks that logic is the first ca- @ symbol and virgule (aka “slash”) lege, Bronson Healthcare Group and ers along with pay and benefits. Cat Video Festival. Fellini meets sualty in corporate branding, then could not be reached for comment. Kalamazoo Community Mental Health Ⅲ Kalamazoo-based Zeigler Auto- felines. (And in the end, the hero you are forgiven for your perspi- and Substance Abuse Services plan to motive Group added to its Chicago dies. And dies. And dies. …) cacity. Which is why we are MICH-CELLANEOUS develop a $42 million campus in presence last week by acquiring a pleased to pass along the following. downtown Kalamazoo that will fo- BMW dealership in the Chicago Find business news from Last week, MiBiz reported that Ⅲ Utah-based Teleperformance cus on wellness and food sustain- suburb of Orland Park, MiBiz re- around the state at crainsdetroit Grand Rapids-based Hanon McK- USA, the nation’s leading call cen- ability, MiBiz reported. KVCC ex- ported. The acquisition is expected .com/crainsmichiganbusiness. endry and Colorado Springs, Colo.- ter operator, has committed to pects to begin construction in to add about $90 million in annual Sign up for Crain's Michigan revenue for Zeigler. Business e-newsletter at crains based CSK Group would merge un- hire 500 employees at its $3.8 mil- spring and open the campus in 2015. Ⅲ The U.S. Court of Appeals last detroit.com/emailsignup. der the entity Do More Good LLC. lion customer support center un- Ⅲ Christopher Pratt, 42, of And in news from the departments der construction in Cascade Town- Portage was sentenced to more than of corporate punctuation and low- ship near Grand Rapids. In seven years in prison last week af- ercase proper nouns, the market- announcing the hiring target last ter admitting he stole more than CORRECTION ing companies individually will be week, the Michigan Economic Devel- $6 million from South Haven-based Ⅲ A Week on the Web item in the July 29 issue incorrectly said Jeff known as Do More Good | hanon mck- opment Corp. said Teleperformance Village Market Food Centers while Bergeron has retired from Ernst & Young LLP. He is scheduled to retire endry and Do More Good | csk. (It’s was eligible for a $600,000 perfor- handling the books, The Associated at the end of 2014. called the “pipe” key, by the way.) mance-based grant. Press reported. To survive, the gro-

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August 5, 2013 CRAIN’S DETROIT BUSINESS Page 3

DETROIT PRIMARY Focus: Business Education

Tools of influence: Opinion, cash ROBERT CHASE Gaddis’ small Suburban support radio show wields pays off for favorites big political clout in Tuesday’s contest BY BILL SHEA BY KIRK PINHO How EMU is attracting more CRAIN’S DETROIT BUSINESS CRAIN’S DETROIT BUSINESS students, Page 11 utspoken, and sometimes the sub- In Detroit politics, the suburbs ject of controversy herself, long- are king — at least when it comes to O time talk radio host and unapolo- cash for campaigns. getic gadfly Mildred Gaddis and her show The two presumed frontrunners for years have been a mandatory advertis- in Tuesday’s Detroit mayoral prima- Company index ing buy for Detroit political candidates. ry both received about 80 percent of These companies have significant mention in this The audience for her “Inside Detroit” funding to their campaign commit- week’s Crain’s Detroit Business: call-in talk show from 6-10 a.m. weekdays tees from people who live outside Arab American National Museum ...... 17 Spokesmen for on Taylor-based WCHB AM 1200 is small, the city limits; political watchers Benjigates Estates ...... 21 both campaigns political observers say, but those listeners say it’s nearly impossible to wage a Binson’s Home Health Care Centers ...... 16 successful mayoral bid without sig- say nearly are politically active and her influence is 80 percent of Blue Cross Blue Shield of Michigan ...... 16 nificant support from the suburbs. Business Leaders for Michigan ...... 9 so out of proportion to ratings that candi- While Mildred Gaddis’ “Inside Detroit” averages contributions to Some Detroit political observers Center for Healthcare Research & Transformation . . 4 dates cannot afford to ignore her. 13,000 listeners a week in the 25-54 audience, Mike Duggan Center for Venture Capital and Private Equity . . . . . 3 Gaddis, 58, has hosted “Inside Detroit” it is considered a must-buy for political clients. say the amount raised so far by for- (above) and since 1999. The show averages a cumula- mer Detroit Medical Center CEO Mike Benny Napoleon Community Foundation for Southeast Michigan . . . 17 tive 13,000 listeners a week among adults early vocal critic of former Mayor Kwame Duggan, a write-in candidate, and have come from Cooper-Standard ...... 9 suburban donors. CultureSource ...... 17 25-54, according to Arbitron Inc. Kilpatrick, and she remains a noted out- Wayne County Sheriff Benny Davenport University ...... 11, 13 spoken Detroit media figure — she’s been Napoleon exceeded their expecta- “It’s a must-buy for a political client, es- Deloitte ...... 12 pecially during her 7:30-8:30 a.m. time slot. especially vocal in her criticism of write- tions. That’s because an emergency man- Detroit Association of Realtors ...... 21 She has a wide listenership. Those listen- in mayoral candidate Mike Duggan — as Detroit Future City ...... 9 ers take it to heart,” said Detroit political the city braces for the Aug. 6 primary elec- ager is in place, and whoever becomes the city’s next mayor will have Digerati ...... 14 consultant Steve Hood. “I think she’s the tions. Eastern Michigan University ...... 11 to wait months or longer before he or best on morning radio on subjects that On air, Gaddis, a onetime Detroiter who FlockTag ...... 3 she can exert the full powers of the of- aren’t covered in major media.” now lives in Southfield, is passionate, un- Foster McCollum White & Associates ...... 25 fice after being sworn in Jan. 1, 2014. Hood and others mix praise with criti- afraid to use her bully pulpit to regularly Griffon Ventures ...... 1 Duggan and Napoleon filed their cism, however. raise the question of race-based motives Henry Ford Health System ...... 6 Gaddis built a reputation for being an See Gaddis, Page 22 See Suburbs, Page 25 Hour Media ...... 9 Intern in Michigan ...... 14 Jyco Sealing Technologies ...... 9 Larky ...... 23 Mars Advertising ...... 1 Michigan Campaign Finance Network ...... 25 Michigan Charitable Gaming Association ...... 23 FlockTag wants to be it in loyalty game Michigan Chronicle ...... 22 Miller Law Firm ...... 24 Mitchell Research & Communications ...... 25 Ann Arbor firm works to grow Nvidia ...... 10 Oakwood Healthcare ...... 6 Perrigo ...... 2 in crowded discount-offer field Plunkett Cooney ...... 24 Prima Civitas Foundation ...... 13, 14 BY TOM HENDERSON Samuel Zell & Robert H. Lurie Institute ...... 13, 14 CRAIN’S DETROIT BUSINESS United Auto Workers ...... 16 University of Detroit Mercy ...... 13 FlockTag Inc., an Ann Arbor-based company University of Michigan ...... 3, 6, 9, 13, 14 that helps businesses set up and manage University of Michigan-Dearborn ...... 22 customer-loyalty programs through its website Venture Investors ...... 24 and smartphone app, has finished raising a fi- Walsh College ...... 14 nancing round of $1.25 million. Washtenaw Area Apartment Association ...... 12 The company, co-founded in 2011 by serial WCHB AM 1200 ...... 3 entrepreneurs Adrian Fortino and David Lin, Wright & Filippis ...... 16 will use the money to ramp up marketing and improve technology. The goal is to expand its presence in the crowded sector occupied by Chicago-based Groupon Inc. and other competitors — including a local cluster of companies — for the business of companies that want to attract and keep cus- Department index tomers through special offers and discounts. It won’t necessarily be easy. BANKRUPTCIES ...... 4 “Figuring out who will be the survivors is a CARTER SHERLINE BRIEFLY ...... 9 David Lin is co-founder and CEO of FlockTag, which in its basic promotion gives customers something free little bit like picking a horse in the Kentucky BUSINESS DIARY ...... 18 after 10 purchases. About half of the company’s commercial customers are in Michigan. Derby. Someone’s got to run last,” said David CALENDAR ...... 19 Brophy, director of the Center for Venture Capital CAPITOL BRIEFINGS...... 4 and Private Equity at the University of Michigan Lin, who serves as CEO, said FlockTag has ac- It employs about 20 and is looking to hire sev- CLASSIFIED ADS ...... 21 Stephen M. Ross School of Business. cumulated about 120,000 users for programs, who eral salespeople, a sales manager and a soft- “Will the dog eat your particular dog food? have totaled about 1.3 million transactions for its ware developer. KEITH CRAIN...... 8 And can you continue to provide food he finds 120 customers in Ann Arbor; metro Detroit; A basic promotion FlockTag uses is giving OPINION ...... 8 interesting? Customers can switch allegiances Lansing; Indianapolis; Champaign, Ill.; Colum- OTHER VOICES ...... 8 quickly.” bus, Ohio; Bloomington, Ind.; and Indianapolis. See FlockTag, Page 23 PEOPLE ...... 20 RUMBLINGS ...... 26 Feed your Facebook Cinema variety WEEK ON THE WEB ...... 26 THIS WEEK @ See which Crain’s stories are getting Check out Crain’s collection of videos attention on Facebook with the new related to timely news stories listed at WWW.CRAINSDETROIT.COM Facebook Activity feed at crainsdetroit.com crainsdetroit.com/video. 20130805-NEWS--0004-NAT-CCI-CD_-- 8/2/2013 1:19 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS August 5, 2013 Alternatives to Medicaid bill

INTELLECTUAL PROPERTY ATTORNEYS

may cover fewer, cost more They are not just “ When the full Senate through some of the Center for Healthcare Research & returns from its summer money the federal gov- Transformation in Ann Arbor. vacation Aug. 27, the Capitol ernment spends on the “They will cover fewer people, and “patent lawyers, but members will have an- Briefings current Medicaid pro- they will cost more.” other chance to vote on gram. The center issued projections our trusted advisors. the bill to expand Medic- SB 460 would move the last week on the effects on insur- aid, but also on the table state’s Medicaid popula- ance coverage in the state with will be two bills more tion into a qualified and without expansion of Medic- JAMES SCAPA, CEO Altair Engineering palatable to conservative health plan that features aid, and found that with the expan- members. direct primary care ser- sion, by 2019, the rate of the state’s Those bills — Senate vices and a high-de- uninsured adults would drop from Bills 422 and 459-60, ductible health plan tied 13.6 percent to 6 percent. Without passed along party lines to a health savings ac- the expansion, the rate is estimat- YOUNG BASILE. Chris Gautz Advisors to the world’s most innovative companies. — do not expand Medic- count. The Senate Fiscal ed to be at 10 percent. aid. Instead, they cover fewer indi- Agency found the Colbeck propos- By insuring more people, the viduals and may cost the state al would have an indeterminate amount of cost shifting would like- more money than the Medicaid ex- fiscal impact in the state, but ly decline, Udow-Phillips said, and ANN ARBOR • TROY • SILICON VALLEY pansion bill, House Bill 4714, sup- would have the potential for sav- such shifting now is estimated to add about 1 percent to the premi- WWW.YOUNGBASILE.COM ported by Gov. Rick Snyder, the ings if the plan was approved by Democrats, the health care com- the federal government. ums of those with insurance. munity and most business groups. Department of Community That was the case that several Senate Democrats and other Health Director Jim Haveman and business groups have been making supporters of expanding Medicaid State Budget Director John Nixon to Republican lawmakers who are were somewhat dismayed at the al- both made clear their support for uneasy about voting for the expan- lowing of all three bills to move HB 4714 and said there were cost sion because of its connection to forward, in part because the alter- unknowns with the Senate bills Obamacare. nate proposals have not been given that the House bill does not have. Chris Gautz: (517) 403-4403, Work smarter for your business. much consideration and scrutiny. “That is pretty clear,” said Mari- [email protected]. Twitter: HB 4714 expands Medicaid to anne Udow-Phillips, director of the @chrisgautz some 450,000 of the state’s working poor adults and includes copays, but also financial incentives to reduce out-of-pocket costs if en- rollees meet certain healthy be- haviors the Department of Community Health will develop. The other two proposals would use private sector principles to help some low-income workers buy private coverage. SB 422, introduced by Sen. Bruce Caswell, R-Hillsdale, would create a low-income health care trust fund to provide coverage for those not currently eligible for Medicaid, up Size, comfort, value and versatility that drives your potential. to 100 percent of the federal poverty The 2013 Sprinter Van — exclusively at Mercedes-Benz of Novi. Visit us today to level. Current Medicaid eligibility How will you earn see one of the area’s largest Sprinter inventories. for adults is about 43 percent of the poverty level. Mercedes-Benz of Novi The bill would cost the state near- your business degree 39500 Grand River Ave. ly a half-billion dollars after the Novi, MI 48375 first two years, whereas HB 4714 248-426-9600 (Sales & Service Available Now) would provide general fund savings at Schoolcraft College? www.mercedesbenzofnovi.com of almost a half-billion dollars after the first two years, according to the Senate Fiscal Agency. That is because with HB 4714, the federal government would pick up ; Online the state’s cost of Medicaid services provided to local community mental health boards for those who cur- On-campus rently are not Medicaid-eligible but ; who would be eligible under an expansion. And the expansion would cover the state’s costs for state pris- A little of both oners who are Medicaid-eligible un- ; der an expansion,when those in- mates are sent to off-site hospitals for surgeries. Business–savvy students like choices. So we SBs 459-60, sponsored by Sen. offer programs that can be completed 100% Patrick Colbeck, R-Canton Town- ship, would, among other things, online, 100% on-campus, or with a blend Need growth When businesses face the organic demands establish a low-income trust fund of both. Classes are forming now in Livonia, of growth, purchasing goods, or even to Garden City, and online. capital? make payroll, Crestmark’s service and innovative working capital solutions can be the answer. BANKRUPTCIES Providing accounts receivable fi nancing and The following business filed for bankruptcy protection in U.S. Bankruptcy asset-based lending to small- and mid-sized Court in Detroit July 25-Aug. 1. Under businesses nationwide for over 16 years. Chapter 11, a company files for reorganization. Chapter 7 involves total liq- Contact us today! uidation. Leo’s Souvlaki & Coney Island Inc., 154 www.schoolcraft.edu | 734-462-4426 www.crestmark.com Matt Dekutoski S. Woodward Ave., Birmingham, vol- 888.999.8050 Anntreal Hemmingway-Smith untary Chapter 11. Assets and liabilities not available. — Ross Benes DBpageAD_DBpageAD.qxd 7/26/2013 10:48 AM Page 1 HI FIVES !

Pronounced [feev]

FIVES is proud to announce the acquisition of MAG Americas and its international brands Cincinnati, Giddings & Lewis and Liné Machines.

FIVES is an industrial engineering group with over 200 years of history. FIVES manufactures machines, processing equipment, production lines and turnkey plants for the biggest global companies of the aluminium, steel, glass, cement, automotive, logistics, energy and sugar industries.

The acquisition of the world-renowned brands Cincinnati, Giddings & Lewis and Liné Machines conﬁrms the growth strategy of FIVES in the sector of high-performance industrial equipment.

Ever since their creation in 1859 for Giddings & Lewis and 1884 for Cincinnati, these brands have been icons of the American machine tool industry.

1000 professionals in 5 countries will join the 6500 employees of FIVES, bringing their expertise in high-precision machine tools and high performance composite processing machines.

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With this acquisition, FIVES conﬁrms its role as leader among the industrial greats of the world of tomorrow.

@lachoseparis Designing today the plants of the future

www.ﬁvesgroup.com 20130805-NEWS--0006-NAT-CCI-CD_-- 8/2/2013 1:20 PM Page 1

Page 6 CRAIN’S DETROIT BUSINESS August 5, 2013 Oakwood creates post-acute care unit; system exec to lead

BY JAY GREENE care operations we are today. We have to look at agency or nursing home associat- CRAIN’S DETROIT BUSINESS when the things differently now than to ed with a hospital and overseen by change is made keep shaving pieces off” organiza- a vice president is not that Dearborn-based Oakwood Health- today, will over- tions, he said. unique,” Smith said. “Having an care Inc. has created a post-acute see Oakwood’s Connolly said the post-acute executive at the system level in care division and realigned its nursing homes, care division will take responsibil- charge of post-acute care to have acute care business to more effec- home health ity for coordinating patient care more coordination and make sure tively coordinate care when pa- agencies, and keeping “people well in our people play together” is unusual. tients leave its five hospitals. durable medical four walls.” Since the late 1980s, Henry Ford Oakwood CEO Brian Connolly equipment and Few health systems have located Health System in Detroit has operat- said the new division, with about infusion ser- Connolly Welday Goch executives and support staff in a ed a corporate Community Care 500 employees, will be headed by vices. His top corporate post-acute care division, Services division that includes Doug Welday, former system CFO lieutenant will be every year. Last year, there were said Dean Smith, professor of home health, hospice, long-term and current executive vice presi- Liz Goch, president of the post- none. This year, there was a 1 per- health management at the Universi- care, extended nursing care, phar- dent of hospital operations. acute division. cent reduction,” Connolly said. ty of Michigan School of Public macy and dialysis, said John Welday, who will become execu- “Since Medicare was adopted (in “We will never get paid any Health. Polanski, CEO of Community tive vice president of post-acute 1965), there have been increases more for health care services than “Having a hospice, home health Care. “We created this division for two reasons,” Polanski said. “This line of business remains extremely profitable, with $440 million in annual revenue. Secondly, and equal- ly important, the health system that delivers health care along a continuum of care with clear handoffs will win in the market.” Besides Henry Ford, other systems in Southeast Michigan have various degrees of integration of post-acute care operations at the corporate level. They include Flint-based McLaren Health Care and Warren-based St. John Provi- When we say dence Health System. Last year, St. John Providence announced a new post-acute care division, Reverence Home Health & Hospice. The division will be managed by Ascension Health Michigan, a statewide organization that in- “we’re here for you,” cludes St. John and four other regional systems with 12 hospitals owned by St. Louis-based Ascen- sion Health. Until recent efforts to reduce hospital readmissions by coordi- we have the nating care, Smith said, hospitals have had problems tracking patients as they enter the post-acute care world. “There is a clear rationale for coordination, and I expect we will zip code to prove it. see more of this (corporate divi- sions) in the future,” said Smith, noting that the health care industry is known to copycat successful strategies. Connolly said Oakwood’s new division will work much more closely with its hospitals to coordinate home health, nursing home, rehabilitation, durable medical equipment and hospice care. Heading acute-care operations will be David Campbell, who has been promoted to executive vice president of system strategy and growth. Nine executives will re- We can build a strong case for proving that a local banking relationship is important. It only makes port to Campbell, including Kelly sense that decisions get made faster from across a desk than from across a time zone. And when Smith, senior vice president and president of Oakwood Hospital and your business needs a hand, shouldn’t it come from one you can actually shake? Local matters. Medical Center. Despite the payment reductions, Oakwood is on budget financially Accelerate Collections t Optimize Cash Flow t View Real-time Cash Positions this year, Connolly said. “We are doing OK on operations despite the cuts,” he said. “We will reduce costs, increase volume and operate a lot more efficiently” to move patients through Oakwood’s delivery system, said Connolly, adding that executives will meet this week to set goals and objectives. Member FDIC Two years ago, Oakwood consol- idated its three physician organizations into a single division and medical group called Oakwood Talk to us today. (888) 324-4100 flagstar.com/business Physicians Integrated. Jay Greene: (313) 446-0325, [email protected]. Twitter: @jaybgreene DBpageAD_DBpageAD.qxd 7/30/2013 3:53 PM Page 1 20130805-NEWS--0008-NAT-CCI-CD_-- 8/2/2013 3:38 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS August 5, 2013 OPINION OTHER VOICES Bankruptcy needs Act would be fair to local retailers Michigan retailers retailers are able to ex- retailers and consumers without work every day to meet ploit a sales tax collection raising taxes one red cent. our customers’ needs and loophole to lure shoppers According to a recent report by exceed their expectations. away from Michigan Lansing-based Public Sector Con- speed, sacrifice Whether we are special- stores by offering decep- sultants, the sales tax loophole has ty retailers providing tively lower prices. The a significant negative impact on products and expertise on loophole allows mega-re- employers and the state’s econo- he best hope for Detroit’s recovery is a speedy bank- specific items like musi- tailers from outside my. The study found that the loop- ruptcy process. The aggressive timeline of U.S. Judge cal instruments or magic Michigan to avoid collect- hole is standing in the way of as T Stephen Rhodes suggests he agrees with that principle. supplies, or retailers pro- ing sales taxes, thereby many as 1,600 new jobs, and pre- But it’s going to be complicated. Detroit has more than 40 viding a wider range of placing the burden on venting as much as $126 million in David Schneider public employee unions, 43 bond issuers and nearly a dozen in- goods, we are a big part of shoppers to keep track of annual investment in Michigan’s the economic engine that keeps their online purchases and pay economy in the form of sales at re- surers — and all of them want to make their case on their our downtowns thriving, our com- their outstanding sales tax when tail stores. In other words, the un- claims. munities vibrant and our friends they file their annual tax returns. fair advantage enjoyed by out-of- The closest a major American city has come to where De- and neighbors working. Meanwhile, local brick-and- state mega-retailers is more than troit is today was perhaps New York’s flirtation with bank- Not only do we offer shopping mortar businesses collect sales marginally hurting local industry. ruptcy in 1975. Felix Rohatyn, who played a major role in keep- convenience and knowledge of the taxes at the point of purchase It is no wonder, then, that mar- ins and outs of the products on our every day. The net result: Internet- ketplace fairness is an issue that ing New York City out of bankruptcy, provides an interesting shelves, but every dollar that is based retailers receive a govern- Republicans of all stripes agree on, context for that crisis on Page 24. Everybody took cuts, he spent in our stores is reinvested in ment-sanctioned 6 percent price from Wisconsin Rep. Paul Ryan to says, and employee pension funds bought $500 million in new- our own communities. advantage over local businesses. Michigan Gov. Rick Snyder. ly issued city bonds. Michigan’s local businesses can That’s why local employers As the U.S. House prepares to “We just saved the baby from drowning,” Rohatyn told one compete with anyone in the nation were so encouraged earlier this take up the act, we encourage Rep. on knowledge, friendliness and year when the U.S. Senate passed Candice Miller, R-Harrison Town- interviewer later. “Then the economy picked up and did the price. Unfortunately, a massive le- the Marketplace Fairness Act. If ship, to stick up for local employ- rest.” Interest rates were much higher then, which means pen- gal loophole has created an uneven passed by the House and signed by ers by throwing her full support sion liabilities were a lot lower. playing field, making it more and the president, this legislation will behind this much-needed legisla- Detroit’s single biggest unsecured liability — even bigger more difficult for the local retailer close the sales tax loophole, level tion. than its pension liability — is unfunded health care for re- keep its doors open. the playing field for local small David Schneider is owner of the Today, out-of-state, online-only businesses and protect Michigan ABC Magic Place in Mt. Clemens. tirees, a whopping $5.7 billion. Reducing that burden must be part of Detroit’s solution, just as it was for Detroit automakers. Tax reform: Import some simplicity TALK ON THE WEB U.S. Rep. Dave Camp, R-Midland, is half of Washington’s lat- From www.crainsdetroit.com to the city of San Francisco during est Odd Couple. With Sen. Max Baucus, a Democrat from Mon- Re: Panel OKs Medicaid bill, alternatives Reader responses to stories and the 1950s in the name of progress. tana, Camp is leading the fight to overhaul the U.S. tax struc- I’m disgusted that our legislators, blogs that appeared on Crain’s Detroit was a fine city to live in ture to simplify the code, reduce deductions and cut corporate who I am sure have pretty good website. Comments may be during that time. Now Detroit is health insurance, are so averse to edited for length and clarity. taxes to bring more money back home to the United States. going back to what it once had? providing some basic coverage to Camp chairs the House Ways and Means Committee; Bau- Carolyn Mazurkiewicz cus chairs the Senate Finance Committee. Both men are in people who desperately need it. mentally destructive, too many fenaray humans and other living creatures strong positions to push for tax reform — even though most will have sickened (and some Re: Keith Crain: A Third World country people seem to think it’s a long shot. A little Band-Aid on a big prob- died). And who’s to say that the Detroit would be in trouble if peo- A deal that would allow U.S. companies to bring more cash lem that will implode in the not too fracking won’t crack up the planet ple were not playing hardball to be home from overseas would be a powerful economic infusion. distant future; costing the taxpay- to the point of actual disintegra- the mayor. And last week, the White House suggested it would accept an ers is inevitable. tion and what’s left of our bodies No laws were broken, and I can’t RubyBlu will be floating around in space? believe Mr. Crain is arguing for overhaul of the corporate tax code — with conditions. wyciwyg Major U.S. companies have billions in profits sitting off- more frivolous lawsuits in order to muck up the process further. shore. And others are creating strategies to reduce their U.S. Re: What is up, or down, with fracking? Re: M1 awards contract for project The bottom line is that if people tax bill. Just last week, Perrigo Co., the West Michigan maker I’m a bit dubious about trusting my Detroit had a streetcar system in Detroit are unintelligent of generic and store-brand drugs, announced it is buying an health to Michigan’s DEQ — or on many major roads (including enough to vote for a completely un- Irish drug maker in a deal that will reduce its tax bill because most state and/or governmental Woodward between Midtown and qualified barber as mayor, well, Perrigo will move its tax residence to Ireland. agencies. By the time they wake up downtown) during the 1940s and they deserve what they get. Taxes do matter. An uncompetitive tax structure in the to the fact that fracking is environ- 1950s. Those streetcars were sold LCS U.S. will encourage more companies to seek alternatives to re- Send your letters: Crain’s Detroit Business will consider for publication all signed letters to the editor that do not main globally competitive. defame individuals or organizations. Letters may be edited for length and clarity. Email [email protected]

KEITH CRAIN: It is time to change our focus to county For the last couple of months, all implode in a sea of red cial mismanagement. generous retirement benefits in cials. of us have focused on Detroit’s ink and financial in- The sheriff of Wayne the nation while pensioners in De- I am not sure what the voters troubles — the appointment of an competence. County is trying to bail troit might be drowning. But the and citizens of Wayne County are emergency manager for Detroit, Last week, the coun- out in his run for De- county’s pension fund itself isn’t supposed to do until the next elec- the shenanigans surrounding ty’s CFO suggested that troit mayor, but voters in great shape; one news report tion. The county finances continue Tuesday’s primary election for there will have to be an won’t have a chance to pegged underfunding of the county to rapidly decline, and misman- mayor of Detroit, and the city’s fil- increase in property choose a new county ex- pension fund at $800 million. agement seems to be the norm. By ing for bankruptcy. taxes to help the county ecutive — the chances It probably won’t be too long be- next fall’s election, the mess will It’s probably going to take a survive the financial of retaining the current fore Gov. Rick Snyder will deter- be substantially greater than to- while to determine who the two losses. executive being some- mine whether the numbers mean day. top vote-getters will be; we won’t Certainly the unfin- where between slim he has to appoint an emergency Meanwhile, standing as a have much to worry about until we ished, and probably and none — until 2014. manager for Wayne County, too. shrine to the incompetency of our know those results. never to be finished, Meanwhile, certain Its finances are becoming more county officials, is the unfinished With all that’s happening in the county jail sits along a major gate- favored retirees who once served dire, with every new revelation of county jail. A symbol to all that city, our attention has been divert- way into downtown Detroit, like a as top aides to the county execu- poor decisions or outright malfea- there is a real mess in county gov- ed as Wayne County continues to shrine to incompetence and finan- tive are in line to receive the most sance by elected or appointed offi- ernment. 20130805-NEWS--0009-NAT-CCI-CD_-- 8/1/2013 4:56 PM Page 1

August 5, 2013 CRAIN’S DETROIT BUSINESS Page 9

BRIEFLY Cooper-Standard acquires ters will remain in Minneapolis. temporary space off Randolph It focuses on job growth, land sity is to determine whether Greenspring Media is the pub- Street until permanent space is use, improving neighborhoods and groups of green algae can be Jyco auto sealing business lishing arm of the American Public ready in the fall. rebuilding infrastructure in De- grown together to create a high- troit. Novi-based Cooper-Standard Hold- Media Group. APMG is a producer The organization said it was yield, environmentally sustain- ings Inc. announced last week the and distributor of radio program- leaving its Eastern Market office — Kirk Pinho able and cost-effective system to acquisition of Ann Arbor-based ming and is the parent company of at 2929 Russell St. and moving to produce biofuels. Jyco Sealing Technologies Inc.’s auto- Minnesota Public Radio and Ameri- the Hamilton Anderson Associates UM team gets $2 million federal National Science Foundation fund- motive sealing business. can Public Media. offices at 1435 Randolph St. ing for the four-year project begins Terms of the deal were not dis- Hour Media publishes several Detroit Future City’s new per- grant to aid biofuel research Sept. 1. Detroit-based magazines including closed. manent home has been identified A team of University of Michigan The effort will involve growing Hour Detroit and DBusiness. The transaction includes an as- and will be announced in August. researchers has been awarded a $2 combinations of lake algae in 180 — Ross Benes set purchase of Jyco’s plants in The group’s phone number (313- million federal grant to identify aquariums at a new laboratory and Canada and Mexico, as well as a 259-4407) and email address and test naturally diverse groups then field-testing the most promis- stock purchase of Jyco’s plant in Detroit Future City to make ([email protected]) will of green algae. It’s funding that is ing inside 80 fiberglass tanks at the China. Jyco’s nonautomotive remain the same. meant to move the needle on biofu- university’s E.S. George Reserve, a plant in Belgium will remain un- Eastern Market temporary home The office will develop and man- el research. 1,300-acre biological research sta- der operation of Jyco. Detroit Future City is moving age an agenda for implementing its An aim of the research an- tion near Pinckney. Jeffrey Edwards, chairman and its offices from Eastern Market to 350-page Detroit Future City Plan. nounced last week by the univer- — Associated Press CEO of Cooper-Standard, said in a news release that the acquisition strengthens important customer relationships. The deal followed the resigna- tion of Orlando Bustos, chairman and CEO of OHorizons LLC, from the Cooper-Standard board of direc- tors. In a filing with the U.S. Securi- ties and Exchange Commission, Cooper-Standard said Bustos’ res- ignation was not the result of any disagreement with the company. — Dustin Walsh Biz leaders predict Michigan economy to continue to grow Members of Detroit-based Busi- ness Leaders for Michigan continue to forecast that the state’s economy will grow faster than the U.S. economy over the next six to 18 months. That forecast is reinforced by the fact that 52 percent of BLM members plan to increase hiring in Michigan in the next six months. “Michigan’s business leaders continue to believe Michigan will out- perform the national economy over the next year and a half,” Doug Rothwell, the group’s president and CEO, said in a news release. Highlights of the survey: Ⅲ 44 percent of business leaders believe Michigan’s economy will grow and none believe it will get worse, compared to 64 percent who forecast the U.S. economy will be about the same over the next six months. Ⅲ 60 percent of Michigan’s business leaders said they believe the state’s economy will grow, compared to 44 percent of business leaders who forecast the U.S. economy will grow in the next 18 months. Ⅲ 52 percent of business leaders project that their companies will add jobs in the six months in Michigan and more than a third plan to make capital investments. The results reflect a survey of 80 executives. — Tom Henderson

Hour Media buys Minneapolis-based Greenspring publishing group Royal Oak-based Hour Media LLC announced last week its purchase of Minneapolis-based Greenspring Media Group. Hour Media will acquire all of Greenspring’s assets, which include magazines and guides focused on dining and living in Min- nesota, according to a news release from Greenspring. The terms of the deal were not disclosed. Greenspring Media’s headquar- 20130805-NEWS--0010-NAT-CCI-CD_-- 8/1/2013 5:04 PM Page 1

Page 10 CRAIN’S DETROIT BUSINESS August 5, 2013 Changing the odds Silicon Valley computer processor in our clients’ favor firm opens Ann Arbor tech center

BY DUSTIN WALSH tomakers and is growing in the in- CRAIN’S DETROIT BUSINESS fotainment market as well as ac- Nvidia’s tive safety, he said. If advanced automobiles can be Nvidia’s processors are found in considered computers on wheels, processors are found more than 2.5 million cars under it’s fitting that Silicon Valley com- 35 brands and more than 100 mod- puter processor maker Nvidia Corp. in more than 2.5 els. The automotive division, es- is opening a technology center in tablished in 2004, supports Audi AG, Ann Arbor. million cars under Tesla Motors, BMW, Volkswagen AG Danny Shapiro, director of auto- and others. motive for Santa Clara, Calif.- 35 brands and more “It’s focused for us, not just on

Securities fraud and shareholder rights based Nvidia, said as the company than 100 models. hardware, but in developing a Automotive supplier disputes Shareholder and partnership disputes increases its business with au- whole system of hardware and Commercial and business lawsuits Family law and probate litigation tomakers and technology expands software,” he said. within the car, it was time to open “The need is for really tight in- an office in metro Detroit. The office, which opens today, tegration, and we want to be a de- 248-841-2200 “We’re driving in a lot of our employs five, but it plans to ex- velopment partner, so we have to millerlawpc.com growth with more automakers,” pand hiring in the future with have a physical presence local- he said. “Looking at the trends in hardware and software engineers, ly.” our road map, we’re seeing more designers, business development Nvidia also supplies Chrysler integration of our products, so the representatives and customer sup- Group LLC with design and simula- time is right now to expand our port as business grows. tion software and is working on Entry deadline: AUG. 16 presence in the area.” Automotive represents a small development contracts with other crainsdetroit.com/nominate The 2,000-square-foot office at portion of Nvidia’s $4.3 billion domestic automakers. 525 Avis Drive, Suite 15, in Ann business, but it is growing, Dustin Walsh: (313) 446-6042, Arbor will feature meeting space, Shapiro said. The company sup- [email protected] Twitter: a lab and test garage, Shapiro said. ports design software for many au- @dustinpwalsh

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August 5, 2013 CRAIN’S DETROIT BUSINESS Page 11

REPORTER’S NOTEBOOK Chad Halcom covers EY IS THAT A PAYCHECK litigation, higher H , ? education, defense Colleges see more students and Oakland and landing paid internships, Macomb counties. Call (313) 446-6796 Page 13 or write chalcom @crain.com. business education Chad Halcom Davenport plans guarantee for future graduates Within two years, Davenport University President Richard Pappas expects the private nonprofit institution to offer a new special degree program for Detroit Public Schools teachers and a new employment guarantee to students. Pappas, who has helmed Davenport’s 11 campuses for four years after serving as president of National-Louis University in Chicago, said the Grand Rapids- based university will offer a new guarantee to Pappas incoming freshmen starting in 2015. The university system will offer qualifying students a guarantee that if no demand exists for their degrees by the time they are completed, the university will pay for them to return and retrain in new fields, Pappas said. It’s part of a “Vision 2015” strategic plan completed by the administration. Davenport’s own data indicate more than 90 percent of recent graduates have found degree-related work, mostly in Michigan, and all degree programs are offered in part because research has indicated the degrees are marketable. “There will be conditions on the graduate for that, like a certain GPA ROBERT CHASE average, a certain amount of job- Michael Tidwell, dean of the Eastern Michigan University College of Business, and university Provost Kim Schatzel can use tours of new buildings such as the seeking effort and willingness to $90 million Science Complex to recruit new students. relocate where the jobs might be,” he said. “But the feeling at the college is, if we took someone all the way through degree completion to prepare them for a career field where there were definitely no jobs — then shame on us.” Pappas also said he hopes Detroit Graduating to higher goals schools will be able to send teachers for training in Davenport’s new College of Urban Education, after the district And the six-year graduation rate of each rolls out a pilot program collaboration EMU’s strategy of new buildings, classes freshman class hasn’t topped 40 percent in with Grand Rapids Public Schools more than a decade, making the school rank within the next year or so. consistently among the bottom three of Michi- Davenport recently hired Andre attracts students; freshmen GPA on rise gan’s 15 public universities. Perry, former associate director for But EMU President Su- educational initiatives for the Institute BY CHAD HALCOM ment by the fall could top 2,850, a possible san Martin and her admin- for Quality and Equity in Education at CRAIN’S DETROIT BUSINESS record in the school’s 164-year history. istrators believe a strategy Loyola University New Orleans, as is in place to change that, founding dean of the new college. The average GPA of incoming freshmen anaging a university is often was 3.18 in 2012, up from 3.11 in 2011 and 3.08 using new facilities and The program could undergo an in 2010, and university officials expect that housing, promotion of de- accreditation review with the North a balancing act, in which ad- figure to climb again among first-year under- grees in high-demand Central Association Commission on ministrators choose between M graduates this fall — as will the average ACT fields, expanded financial Accreditation as early as this fall. the short-term gains of grow- score, about 22, compared with about 21.1 two aid and a 21st century over- A one-year pilot for Grand Rapids ing student head count and the long- years earlier, said Kevin Kucera, associate haul of traditional student teachers would follow later, followed term retention and stability of raising vice president of enrollment management. advisory services. Martin by future collaboration with Detroit and other urban districts, Pappas said. academic standards. The university’s Honors College program, which accepts students entering with at least A master’s program within the new Time to reinvent But Eastern Michigan University improved a 25 ACT score and 3.5 high school GPA, has college would allow urban teachers to both last year and is expected to do so again nearly doubled in freshman enrollment Traditionally known for teacher education, retrain at some base level of pay if they in the fall semester that starts Sept. 4, ac- since 2011, and the university this fall ex- Eastern found in a market analysis last fall by return to an urban school setting for at cording to data submitted to Crain’s and the Deloitte LLP and Chmura Economics & Analytics least three years after graduation. pects to house 3,360 on-campus students, up National Center for Education Statistics. from 2,154 in 2010. that local demand for teachers is declining, Pappas said the new degree The Ypsilanti-based university had regis- Converting those new students into gradu- and EMU’s lack of a strong engineering pro- program will offer data analytics and a tered about 2,717 freshmen as of late July, gram put it at a disadvantage in courting over- mix of an education curriculum and ates remains a problem. Eastern consistently compared with just more than 2,500 a year has lost one-quarter or more of each freshman seas students, who are a growth market for some leadership training courses other universities. through its College of Business. ago, before last fall’s total came in at 2,595. At class since 2001 by the next academic year, ac- the current pace, full-time freshman enroll- cording to its annual NCES data reports. See EMU, Page 12 20130805-NEWS--0011,0012-NAT-CCI-CD_-- 8/1/2013 5:03 PM Page 2

Page 12 CRAIN’S DETROIT BUSINESS August 5, 2013 Focus: Business Education EMU: New facilities, programs, services attract new students ■ From Page 11 But the school could find growth od but has grown its new freshman 24/7. So being told they have to “We actually have report data opportunities in business, physi- class and enrollment in some spe- come in and meet with a person that shows (the administration) cal sciences and health care. cialty degrees. Like a business during certain hours isn’t some- actually is enjoying an improved Change was in order. Martin and “We are working very diligently “ thing that helps,” Schatzel said. public perception right now,” said Dean Michael Tidwell of the Col- to create programs that are of that needs to be able Martin, who went on to have her lege of Business contend that a greater interest in the market- contract renewed for two years in change of programs was already place. Like a business that needs to to develop new Investment and return May, with a pay raise. underway. be able to develop new products, The university accelerated to a Tragedy struck again in the slay- “It’s a very hyper-competitive we need to be able to develop high- products, we need to $15 million close last year on its ings of Julia Niswender, 23, found market, which is great, but we lost demand skills,” Tidwell said. five-year, $50 million capital cam- dead Dec. 11 at the off-campus market share” during the previous For example, the college is also be able to develop paign, ending with more than $55 Peninsular Place apartment com- decade, Martin said. “And now that developing a new online MBA and high-demand million in commitments. Schatzel plex owned by American Campus Com- we’ve invested in new faculty, new a master’s in taxation, and Tidwell said EMU has completed about $200 munities Inc., and of parent John facilities and increased significant- said both programs are expected to skills. million worth of improvements to Lawrence, who was interceding in ly our level of financial aid, those launch in a year. The school also ” the university campus over the his daughter’s dispute with a room- things combined to make us in- expects to grow enrollment when a past five years. mate at Peninsular in April. Michael Tidwell, creasingly competitive.” new physician’s assistant degree Martin said she doubted those Eastern Michigan University Tom Stevick, university vice The College of Health and Hu- program launches in 2014, Provost president of advancement and exec- crimes had curbed student interest man Services, at 3,695 students last Kim Schatzel said. utive director of the EMU Foundation, in the university, or in housing on fall compared with 3,161 in 2010, Business school enrollment engine optimization. said the school has since turned to or off campus. Alice Ehn, executive overtook the College of Education, should be up about 2 percent this “With the (Patient Protection growing its pool of alumni donors officer of the Washtenaw Area Apart- at 2,099 students in 2012 compared coming year, fueled by 5 percent and) Affordable Care Act coming — about 4,800 made contributions ment Association, agreed and said with 2,380 in 2010, in size about four growth in accounting (Deloitte is into effect, including several pro- to the university this year, com- several of her organization’s land- years ago to become EMU’s largest the largest recent corporate re- visions in the coming months and pared with 3,900 alumni five years lords, including Peninsular, report single pre-professional school. cruiter of College of Business un- years, there’s going to be a greater ago. demand is up for the upcoming fall The College of Technology, dergrads, Tidwell said); about 40 need to work out the reporting and Last year’s donations were less semester and living units are filling meanwhile, grew from 1,831 stu- percent growth in international the taxation needs for various than half of the final capital cam- up faster this year than last. dents in 2010 to 1,898 students last business programs; and strong en- companies,” Tidwell said of the ac- paign year, but were more focused “If I had to guess, I’d say … the fall. The College of Business was rollment in human resources, sup- counting demand. on financial aid that helps with re- economy is getting better,” she down 65 students in the same peri- ply chain management and search Mark Davidoff, managing part- tention, he said. said of housing demand. “Eastern ner of Deloitte in Michigan, which “It’s still strong giving, even if has typically been a commuter has previously projected it would you get the big giving (sums) dur- school, but if people can afford to hire 250 people this year in the ing the big donor recruitment ef- live close by, and save on the com- state, said new college graduates forts,” Stevick said. “Right now we mute they’ll probably do that.” with MBA, taxation and other fi- are working on individual projects nance degrees account for a major- like scholarship giving.” THINKBUSINESS ity of new hires at any given time, The road ahead The university has said a new THINK MADONNA and Eastern is typically among its capital campaign is in the planning Later this summer, Martin ex- top five sources of new local talent. stages this fiscal year, but EMU pects to review new residential “Recently we’ve been looking Madonna business programs combine classroom could set its sights on raising more market reports the university has not only to grow in general, but than $75 million after feasibility commissioned from Chicago-based learning, business ethics and real-world projects. also expand our services outside of studies are completed next year. The Scion Group and Atlanta-based audit and tax, including advisory Popular, career-focused majors include: accounting, marketing, Eastern also has seen some re- IDI Residential on the housing mar- services,” he said. “And when you turn on a marketing investment to ket, in considering whether de- health care management, hospitality & tourism, management hear about a new federal regula- promote the university in western mand supports reopening the shut- information systems, or human resources management. tion changing business practices, Michigan, northern Indiana and tered Jones and Goddard residence the educational proficiency for • SMALL CLASSES ON CAMPUS & ONLINE northwest Ohio. halls. that will often be coming out of a Kucera said EMU has recently Eastern also recently hired a • BUSINESS-SAVVY PROFESSORS school. They have a pretty devel- picked up 150 to 300 students from new dean to address graduate en- • BACHELOR’S & MASTER’S PROGRAMS oped internal audit program at Ohio, and that likely helps with de- rollment, which hasn’t climbed in Eastern that fits well with some of • ASSOCIATE DEGREES & CERTIFICATES mand for on-campus housing. recent years despite the Deloitte our recent efforts in compliance.” Wayne County freshman enroll- report findings that some addition- Schatzel said university tours, ment is also up about 200 — in fall al market demand might exist for particularly of the new, $90 million 2012, the county accounted for master’s degree programs. Science Complex that completed a 7,740 of the university’s 23,547 stu- Martin also said Tidwell is re- second phase of construction last dents — and EMU had a recent 22 viewing whether the school could year, and a $42 million renovation percent increase in students of col- find a market to offer more MBA to the Pray-Harrold classroom or, predominantly from metro De- courses online, and Tidwell said building that wrapped in 2011, also troit and Ohio, Kucera said. the College of Business could have are good recruitment tools. Eastern earlier this year relocat- an online degree program ready to “Once they (students) see it, they ed and expanded an off-campus cen- launch in fall 2014 along with a and their parents are really blown ter in Detroit from 6,251 square feet new executive MBA program with away by the quality of physical along Myers Drive into 10,983- unique specialties. plant,” Kucera said. “Students square feet on Outer Drive near The school also received a base from out of state especially like our Wayne County Community College Dis- funding increase of less than 1.2 location and proximity to Ann Ar- trict’s northwest campus, which percent and just $670,700 in supple- bor, and the majority of freshmen also helps with visibility and re- mental performance budget fund- still come in undecided on their cruitment, Martin said. ing tied to its academics and other majors, so it’s appealing that we performance metrics from the state have a broad offering of programs.” in the 2013-14 academic year — less Eastern has also invested $1.5 Scandal persists than any other state university ex- million in adviser services, includ- Until last summer, Eastern also cept Wayne State University, the Thinking about a business degree? ing expanding the advisory staff appeared to be putting a dark time perennial low-performer on student from 12 to 18, completing the new of scandal and mismanagement in retention and graduation rates. THINK MADONNA UNIVERSITY Francine Parker Advising Center the past. Martin said she hopes in the com- in the student center this year, and The school in 2007 agreed to pay ing year to convince state officials SCHOOL OF BUSINESS rolling out a new transfer students $2.5 million to the family of a stu- to re-evaluate some criteria used to center in McKinney Hall, as a one- dent killed in her dorm room, and calculate performance funding. Call 734-432-5361 to meet with an advisor. stop shop for prospective transfer hired Martin in 2008 after firing for- “In determining this state’s students who come predominantly mer President John Fallon and ac- funding to this state university, we from various community colleges. cepting resignations from two ad- ought to give greater considera- The digital-intensive Parker ministrators over allegations the tion of economic benefit to Michi- center is already in operation this student’s cause of death was con- gan, where about 90 percent of our madonna.edu summer, but both centers will get cealed. students remain after gradua- a formal launch this fall. After a period of relative quiet, tion,” she said. “I think that really 36600 Schoolcraft Road (at Levan Road) “Advising is … absolutely criti- the Board of Regents reprimanded counts for something.” Livonia, Michigan 48150 cal. People ages 18-30 are technolo- Martin for an alcohol-fueled ex- Chad Halcom: (313) 446-6796, gy natives, and they want to be able change with an Eastern alumni [email protected]. Twitter: to get the answer to their question chapter president in 2012. @chadhalcom 20130805-NEWS--0013,0014-NAT-CCI-CD_-- 8/1/2013 4:04 PM Page 1

August 5, 2013 CRAIN’S DETROIT BUSINESS Page 13 Focus: Business Education Colleges see rise in number of paid student internships

GARY ANGLEBRANDT to get ahead of their talent recruit- SPECIAL TO CRAIN’S DETROIT BUSINESS ment by hiring interns. Paying them makes even more sense, Du- For college students in search of mond-Avila said, because that at- internships — the paying kind — tracts a better pool of applicants. things are looking up. Those who get hired will be more Employers are beginning to focused on their tasks because loosen their purse strings as they they won’t have a part-time job in reckon with talent search strate- addition to school sucking away gies in an improving economy. all their energy. “There’s definitely been an “Any employer that’s serious uptick” in openings for intern- about building their stable ... gen- ships as a erally will pay a stipend or hourly whole, and more wage,” Lowe said. employers, in- The Samuel Zell & Robert H. Lurie cluding non- Institute for Entrepreneurial Studies, profits, are will- housed at the University of Michigan ing to pay for Stephen M. Ross School of Business, them, said sends interns to startups and splits Amanda Du- the cost to pay them. mond-Avila, di- “We have had no lack of de- rector of talent mand,” Executive Director initiatives and Dumond-Avila Thomas Kinnear said. Kinnear business en- has since been succeeded by Stew- hancement at the East Lansing- art Thornhill, pending approval by Prima Civitas Foundation based . The UM’s board of regents. foundation includes among its pro- It’s rare for students of the busi- grams a Michigan Internship Ini- ness school to have unpaid intern- tiative to help businesses and non- ships, but demand did tighten up profits recruit interns and build during the recession. Employers structures to use them effectively. deferred starting dates during Shelley Lowe, executive director those years, but that has stopped of career services at Grand Rapids- and recruiting is back in full based Davenport University, said the swing, Kinnear said. number of students at the school’s For undergraduates, accounting Warren and Livonia campuses firms are the destination for most who found internships rose 58 per- internships, on both the account- cent last year. For the entire uni- ing and the consulting sides, he versity, which has campuses said. Corporate and investment fi- throughout the state, the number nance as well as marketing and rose 42 percent. Of those, 71 per- sales continue to be strong. cent were paid internships. The school has three specialty For graduates, the hot areas are areas of study: business, technolo- marketing, finance and entrepre- gy and health care. Areas of keen neurship. The University of Detroit Mercy is interest among employers are data seeing demand for paid intern- analytics and information technol- ships in similar areas — mechani- ogy for health care. For someone cal and electrical engineering, ac- who can do data analytics for counting and finance, and health care, the future is especial- marketing and advertising — from ly bright, Lowe said. But the de- companies such as Ford Motor Co., mand is across the board. Chrysler Group LLC, Quicken Loans “Anybody who can mine data is Inc., DTE Energy Co., Blue Cross Blue going to have a job,” Lowe said. Shield of Michigan and Minnesota- Another hot area is business an- based Fastenal Co. alytics — people who can under- About 90 per- stand how to apply technology to cent of the in- business processes. Businesses ternship oppor- need people who can talk to soft- tunities for the ware vendors, and software ven- academic year dors need people who can talk to ending this Possible is everything. businesses, she said. And demand month were for Web developers and marketing paid. Today, more than ever, global competition and corporate streamlining require innovative thinking and people has not gone away, either. “That’s a defi- leadership abilities. Continuing your education can be key to ensuring your success. From global More employers have been nite increase leadership to health information technology management, Lawrence Technological University from 2010-2011,” reaching out to Prima Civitas, said Clemons offers innovative undergraduate, master’s, and doctoral business degrees and fast-track certificate Dumond-Avila, who covers South- when there were programs to prepare you for the jobs of the future. fewer internships, and those that east Michigan for the foundation. 2013 2013 2013 were available usually were un- Many of them have had a hard Explore over 100 programs in Colleges of Architecture and GREEN BEST COLLEGES NATION’S BEST COLLEGE UNDERGRAD ONLINE time knowing where to look for the paid, said Elissa Clemons, assis- Design, Arts and Sciences, Engineering, and Management. in the Midwest STUDENT ENGAGEMENT tant dean in Detroit Mercy’s ca- Princeton Princeton U.S.1 News & interns they need. “Even if they Review® Review® World Report® found interns, they didn’t know reer education center. Employers have been more re- what to do with them,” she said. Waive your application fee at www.LTU.edu/applyfree “This is where a lot of compa- ceptive to hearing the pitch that nies really struggle. They don’t paid internships are useful re- know where to go, paid or unpaid,” cruiting tools, especially larger or- Architecture and Design | Arts and Sciences | Engineering | Management ganizations but increasingly mid- for interns, Dumond-Avila said. Lawrence Technological University | 21000 West Ten Mile Road, Southfield, MI 48075-1058 It’s worth figuring out. The size ones, too, Clemons said. 800.225.5588 | [email protected] | www.LTU.edu foundation encourages businesses See Interns, Page 14 20130805-NEWS--0013,0014-NAT-CCI-CD_-- 8/1/2013 4:05 PM Page 2

Page 14 CRAIN’S DETROIT BUSINESS August 5, 2013 SBA PREFERRED LENDER | CREDIT CARDS | CASH MANAGEMENT | COMMERCIAL LOANS Focus: Business Education Paid or unpaid? Rules on interns Changes at top $35,000 in are clear; it pays to know them of UM’s Zell Lurie Two major changes have oc- fraudulent checks In June, the U.S. District Court in curred at the top of the Samuel Zell New York said in a ruling against RULES ON UNPAID INTERNS & Robert H. Lurie Institute for Entre- Fox Searchlight Pictures Inc. Fox and The U.S. Department of Labor’s preneurial Studies, housed at the Entertainment Group Inc. that the criteria says unpaid interns: University of Michigan Stephen M. prevented in one day work of two unpaid movie produc- Cannot displace regular Ross School of Business. tion interns amounted to the work employees. On Sept. 1, Stewart Thornhill of regular employees and so they Are not guaranteed a job at the will take over as the institute’s ex- ...by one customer. should have been paid. end of the internship (although you ecutive director and the Eugene The judge also noted that the may decide to hire them at the Applebaum Professor of Entrepre- work did not have sufficient edu- conclusion of the experience). neurial Studies. He will replace Your hometown cational value to qualify as an in- Are not entitled to wages during Tom Kinnear, who has led the internship. the internship. stitute it since it was founded in The ruling is likely to have little Must receive training from your 1999. advantage. effect on other employers, though, organization, even if it somewhat Kinnear, a prominent figure in because it really just buttresses impedes on the work. the state’s venture capital world long-established guidelines on un- Must get hands-on experience — he created the student-led, $5.5 paid internships set by the U.S. De- with equipment and processes million Wolverine Fund and is on partment of Labor, said Mike Gen- used in your industry. the board of the Michigan Venture tile, communications director for Training must primarily benefit Capital Association — will continue Digerati Inc. Digerati operates the them, not the organization. to work at the university as the D. Being local means we’re able to help keep a closer eye on your small site InternInMichigan.com, which Maynard Phelps Collegiate Pro- business. It means providing banking tools like Positive Pay, which uses matches employers and students. The internship should clearly fessor of Business Administra- a secure veriﬁ cation process to protect your accounts against ACH “I think more people are thinking include a manager who guides the tion and a professor of marketing and check fraud. Trust us, that’s a big advantage for small business. about it, but those rules were always intern, making sure the student is at the Ross School of Business. in place,” he said. (See box.) learning the “ins an outs they’re Thornhill hails from London, Try it on us – we'll waive Positive Pay fees for three months. Amanda Dumond-Avila, direc- not going to get in the classroom.” Ontario, where he was executive Contact Kerri Werschky at 586-863-9485 to learn more. tor of talent initiatives and busi- Brian Young, district director of director of the Pierre L. Morrissette ness enhancement at the East Milwaukee-based Northwestern Mu- Institute for Entrepreneurship at the www.thefsb.com/cashmanagement | 866-372-1275 Lansing-based Prima Civitas Founda- tual’s Troy office, said the ruling University of Western Ontario’s Ivey tion, which helps employers set up hasn’t come up in meetings. In- Business School. internship programs, said for- terns at his office are paid on com- One of Thornhill’s first tasks profit businesses in particular mission with additional opportu- will be to replace another depart- have to be careful about following nities for stipends, and they also ing staff member: Timothy Faley, the Labor Department criteria. are assigned a mentor and must at- who was managing director of the “All six criteria must be met, not tend weekly educational meetings. institute. He left to chair a new just one or two,” she said. — Gary Anglebrandt entrepreneurship program at the University of the Virgin Islands. — Gary Anglebrandt

Interns: Looking Paid ■ From Page 13 The Troy office of Milwaukee- for more? based Northwestern Mutual has been growing its paid internship program steadily and plans to con- We’ve got it. And we call it tinue to grow it, said District Di- rector Brian Young. The Rehmann Experience. The office views the internships as a good channel for letting interns test the waters to see whether they To ﬁnd out how we may be able to like financial planning work enough to make it a career out of it, provide MORE for you, contact me. Young said. “It benefits us because we can take a look at these people without committing,” he said. InternInMichigan.com, a site to match employers and students run by Digerati Inc., has had 5,000 positions posted since it launched in CPAs & October 2011. Of those, a steady 50 Consultants Sandy Gohlke, CPA, CGMA percent to 60 percent are paid internships. More Ideas Principal Regina Bell, executive director of One Intern In Michigan, said two-thirds of Team 248.458.7940 Your Corporate More Service the positions are for small business- Future Investigators [email protected] es. Hot spots are engineering, IT, construction, manufacturing, so- Wealth More Experience Advisors cial media and nonprofits. Cheryl Carr, outreach coordinator and adviser at Troy-based Walsh College, said the business school encourages employers to 21 locations in Michigan, Ohio, Florida and Indiana pay, and they have been more re- ceptive to that message this year. rehmann.com | 866.799.9580 Most of the 300 internships posted every year are paid, and paid internships have been on the rise, though no specific numbers were available. DBpageAD_DBpageAD.qxd 7/30/2013 3:00 PM Page 1

wmich.edu/GoWest

GO WEST.

WESTERN MICHIGAN UNIVERSITY’S HAWORTH COLLEGE OF BUSINESS is among an elite group of fewer than 5 percent of business schools that are accredited at both undergraduate and graduate levels by the American Association of Collegiate Schools of Business. The College is home to nationally recognized programs and award-winning students, including: • Integrated Supply Management—Ranked 12th in the nation by Gartner and fourth in the nation for the total number of Richter Scholars recipients. • Sales and Business Marketing—Selected by the Sales Education Foundation as a top U.S. university sales program, and won 13 trophies from 15 national sales competitions in 10 years. • Computer Information Systems—A WMU team earned Overall Champion and Best Project honors at this year’s Midwest Student Information Systems competition. • Food and Consumer Package Goods Marketing—One of the premier programs in the United States, offering students a four-year business degree focusing on retail marketing of food and consumer goods. • Advertising and Promotion—Students have placed in the top 10 since 2005, including ﬁrst place in 2013 at the Edventure Partners’ National Case Study Competition. The College incorporates experiential learning into the curriculum in the form of internships, externships, competitions, study abroad programs, simulations, industry projects and in-class programs. Our students learn by doing, applying concepts to real-world projects with industry partners in preparation for launching their careers. Western Michigan University. It’s your turn to GRAB THE REINS. 20130805-NEWS--0016-NAT-CCI-CD_-- 8/1/2013 4:09 PM Page 1

Page 16 CRAIN’S DETROIT BUSINESS August 5, 2013 what’s your fancy? Blues to expand medical equipment A total precast structure at this off campus housing facility means your kids are safe network, end pacts with 2 local vendors and sound while away at college. Fire resistant, durable and sound proof. BY JAY GREENE toworkers by linking provider net- toworkers conducted jointly by CRAIN’S DETROIT BUSINESS works with Blues plans in other Center Line-based Binson’s Home What more could you ask? states. Health Care Centers and Rochester Blue Cross Blue Shield of Michigan As part of the changes, Blue Hills-based Wright & Filippis, two plans in January to expand its na- Cross will not renew a contract for medical supply companies, said tional network of durable medical the durable medical equipment Helen Stojic, Blue Cross’ director equipment providers for active au- claims processing service for au- of corporate affairs. Binson’s and Wright & Filippis’ provider network contract with the Blues for UAW employees out- we did not invent the wheel side Michigan also will not be renewed, Stojic said. The Blues’ WE INVENTED Michigan network for durable medical equipment will not be comfort on wheels changed, she said. Officials for Binson’s and Wright & Filippis were unavail- able for comment. However, the two companies also participate in many other Blues provider net- works for durable medical equipment in other states, sources said. Blue Cross is making the change to reduce costs, increase customer convenience and comply with reg- Save up to $300 ulations of the Patient Protection on select Stressless Office recliners. and Affordable Care Act, or Oba- See stores for details. macare, Stojic said. UAW spokeswoman Michele Martin said the Blue Cross plan

FINAL DAYS will not affect autoworkers. www.kerkstra.com ends Monday, August 12th. Over the past year, the durable medical equipment industry has 6287+),(/'ō752< been shaken up by a new competi- 129,ō/$.(6,'( *5$1'5$3,'6 tive bidding process from the Cen- KERKSTRA PRECAST www.gormans.com ters for Medicare and Medicaid Ser- Zaragon West, Ann Arbor MI Crains_August_Gormans vices. While the bidding is designed to save the Medicare program more than $1 billion annually, dozens of formerly Medicare-certified home health supply vendors in Michigan lost business. Fran Parker, CEO of the UAW Re- tiree Medical Ben- efits Trust, said retired autoworkers outside Michigan also will switch to the Blues’ national network. “Almost 70 percent of our retirees are on PROUD TO BE IN Parker pure Medicare and we have to conform with providers” that won Medicare’s competitive bid, Parker said. “It eliminates the separate contract we had with the vendor, Wright & Fil- ippis.” By Jan. 1, Stojic said, Oba- macare will require Blue Cross to aggregate total costs per member for medical, surgical, pharmacy and durable medical equipment. The cost data will help employers DETROITWhen you’re serious about intellectual property law … comply with health reform’s af- fordability test, which requires Use Brinks, now in Detroit. Brinks is a recognized national leader in employers to offer health plans intellectual property law. With its new Detroit Office located in the same that are 9.5 percent or lower of employees’ annual income. Oth- building as a U.S. Patent and Trademark Office, domestic erwise, they will pay a penalty. and international clients can participate in on-site patent “We have to develop an integrated (claims processing) system to examination and administrative trial proceedings. help us manage costs,” she said. “It is easier to do this if we use the entire Blue Cross network.” Serving innovators in Michigan and beyond: Stojic said the Blue Cross nation- Detroit Ofﬁ ce Ann Arbor Ofﬁ ce al durable medical equipment net- U.S. Patent Suite 1775 Suite 200 work will have 15,000 providers, No. 129,843 300 River Place Drive 524 South Main Street compared with its current out-of- Steam engine state network of between 3,000 and lubricator by Detroit, MI 48207 Ann Arbor, MI 48104 5,600 providers. Detroit inventor 313.393.5400 734.302.6000 Elijah J. McCoy, Jay Greene: (313) 446-0325, granted in 1872. Chicago | Ann Arbor | Detroit | Indianapolis | Research Triangle Park Area | Salt Lake City | Washington, DC | www.usebrinks.com [email protected]. Twitter: @jaybgreene 20130805-NEWS--0017-NAT-CCI-CD_-- 8/1/2013 4:10 PM Page 1

August 5, 2013 CRAIN’S DETROIT BUSINESS Page 17 Just three of the reasons to book our bus. Coming website aims to be source MIKE DONNA MITCH Driver Customer Service Mechanic You’ll love this Our girl Friday (... and If it ain’t broke, he’ll for local arts, entertainment events man in uniform. every other day, too!) check it anyway.y y

BY SHERRI WELCH Detroit Inc. founder Mark Lantz, technology can now do that could- CRAIN’S DETROIT BUSINESS who was a member of the McCann n’t be done in the past, Noland said. Erickson team that developed the “It’s a way you can collect the in- Metro Detroiters and visitors state’s Pure Michigan campaign, formation and make it accessible here will soon have a website to to help it develop a marketing and current at very low cost” once check out what’s happening in lo- strategy for the entire arts and cul- the infrastructure is in place, she cal arts and culture. ture segment. Ixiti was the result. said. CultureSource, the association rep- So far, CultureSource has raised The promise and value Ixiti.com resenting local nonprofit arts and $800,000 of the $3 million, four-year represents is exciting, said Devon cultural groups, plans early next development and operating budget Akmon, director of the Arab Ameri- year to launch Ixiti.com to market from funders including: DTE Energy can National Museum in Dearborn. nonprofit and for-profit arts, cultur- Foundation, Masco Corp. Foundation, “Within the last few years, we’ve al and entertainment events, minus Ford Motor Co. Fund, the New York- seen a change in the traditional me- sports and commercial movies, said based Ford Foundation and the Com- dia coverage of cultural events as Executive Director Maud Lyon. munity Foundation for Southeast Michi- resources have Under development by Grigg gan. It’s got other grant requests out dwindled,” he Graphic Services in Southfield, the to private and corporate founda- said. site will launch with a calendar and tions and also plans to seek individ- “You couple associated articles of local ual support for the site, Lyon said. that with tighter events/programs, e-newsletters, Ixiti.com is going to open up the budgets at insti- profiles on the association’s mem- whole cultural array of opportuni- tutions like bers and links for those interested ties in the region by providing that ours, and it in volunteering or donating. information in one convenient makes it a chal- The hope is that “ixiti” will be- place, said Community Foundation lenge to put ade- come a go-to place like yelp.com to President Mariam Noland: “It’s a quate resources see what programs and events as way to engage people in the arts Akmon ... to hit diverse many as 200 local arts and cultural and begin a much broader conver- markets in the region.” NEWNEW MODELMODEL COACHESCOOACCHES groups are offering across Wayne, t sation, which is going to be good for Having a centralized portal that FREE WIFI 24/7 DISPATCH Oakland, Macomb, Washtenaw, the arts and good for consumers.” combines arts and cultural news, t t Livingston, St. Clair and Monroe The Ixiti marketing plan is remi- events and information in an on- tECO-FRIENDLY counties, Lyon said. niscent of the Great Stuff newsletter line format that people now seek tEXPERT BOOKING CONSULTANTS Ixiti.com has been a work in of arts and cultural events that Art- presents opportunities for audi- tAFFORDABLE RATES progress for the past three years as Serve Michigan sent out years ago, an ence development, Akmon said. CultureSource benchmarked how effort that was also supported by Sherri Welch: (313) 446-1694, other large cities market the events. the Community Foundation. [email protected]. Twitter: Two years ago, it hired Factory But Ixiti.com represents what @sherriwelch 800-292-3831 indiantrails.com

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There’s a new gig in Motor City. Cobalt, a division of ADP, has just opened an offi ce in the Renaissance Center, and we needed Software Engineers yesterday. Work at the largest digital advertising platform provider for all the biggest car brands. Come mix and mingle with our Vice President of Technology and hiring managers, and fi nd out why Cobalt is the best job for you.

COBALT.COM/CAREERS An Company ADP believes that diversity leads to strength. We are an equal opportunity/affi rmative action employer; M/F/D/V. ADP and the ADP logo are registered trademarks of ADP, Inc. Copyright © 2013 ADP, Inc. 20130805-NEWS--0018-NAT-CCI-CD_-- 8/1/2013 4:11 PM Page 1

Page 18 CRAIN’S DETROIT BUSINESS August 5, 2013

BUSINESS DIARY ACQUISITIONS sulting services with data warehous- Team LLC, Bloomfield Township, a MIG Film Group, Duren, Germany, for Michigan Dog Training LLC, from 7610 ing, business intelligence and Web ap- consortium of independent consulting distribution in Germany, Austria and Wayne Road, Westland, to 1031 Cherry Midway Dental Supply Inc., Lakeville, plications development. Website: firms. Websites: www.marsalese.com, Switzerland. The deal was brokered by St., Plymouth, for expanded services Ind., acquired Corban Dental Supply, www.datafactz.com. www.bizimpteam.com. Collective Development Inc., Lansing. such as drop-off training and boarding. Farmington Hills. The Farmington The film also was acquired by Echo The company hired Front Street PR, Hills branch office will be renamed Casadei Steel Inc., Sterling Heights, a American Axle & Manufacturing Hold- Bridge Entertainment, Beverly Hills, Farmington, to revamp its web and Midway Dental Detroit. Website: steel contractor performing detailing, ings Inc., Detroit, was awarded a driv- Calif., for distribution in the U.S. and marketing campaigns. Telephone: (734) www.midwaydental.com. fabrication, erection and project man- eline systems contract featuring e- agement services, was awarded the AAM hybrid and electric driveline Canada. Telephone: (734) 818-9904. 634-4152. Websites: www.michigandog- training.com, www.frontstreetpr.com. CONTRACTS structural steel contract for the 50,000- system technology with Qoros Auto Air Center Inc., Troy, an accredited cal- square-foot Regal Cinemas theater, Co. Ltd., Shanghai, China, an automo- ibration lab and Stanley-certified re- Carhartt Inc., Dearborn, is collaborat- Lansing, for VCC LLC, Dallas, the pro- tive manufacturing company and pair center, was named the certified re- NEW PRODUCTS ing with vehicle seat cover protection ject’s general contractor. Website: pair center for all Stanley Assembly joint venture between Chery Automo- Behr America Inc., Troy, introduced manufacturer Covercraft Industries www.casadeisteel.com. Technologies’ PSI products. Website: bile Co. Ltd., China, and Israel Corp. diesel-engine technology that promises Inc., Pauls Valley, Okla., to produce www.teamaircenter.com. Altair Engineering Inc., Troy, a Ltd. The future model year Qoros ve- fuel-economy savings of up to 1 percent Carhartt duck fabric seat covers for provider of simulation technology and hicle will be produced in China for the for heavy-truck owners in North Amer- pickups, SUVs, vans and over-the- engineering services, broadened its re- Chinese and European automotive EXPANSIONS ica. Behr’s patented Visco technology road work trucks. Websites: www.car lationship with Siemens PLM (Product markets. Website: www.aam.com. for engine-coolant pumps reduces pow- hartt.com, www.covercraft.com. CrossFit North Industry, a franchise of Lifecycle Management) Software to en- Wagner Design Associates LLC, Ann CrossFit Inc., Washington, D.C., er losses that affect fuel economy. Web- DataFactZ, Northville, a specialized able closer collaboration in the ex- Arbor, launched a refreshed website opened a gym at 36963 Amrhein Road, site: www.behrgroup.com. system and data integration company, change of data among product lifecycle for Krieghoff-Lenawee Co., Adrian, a Livonia. Telephone: (734) 464-3015. announced additional contracts with management teams that employ Altair commercial construction services Website: www.northindustrycf.com. NEW SERVICES five current clients: Dick’s Sporting computer-aided engineering tools in company. Websites: www.krieghoffle Chiquest LLC, Macomb Township, an e- Goods Inc., Pittsburgh, to create a analyzing product designs and materi- nawee.com, www.wagdesign.com. Barbara Ann Karmanos Cancer Insti- commerce retailer, opened an online tute, Detroit, is launching a lung can- business intelligence solution for the als. Altair now offers direct connec- Near Perfect Media LLC, Farmington store offering vases, water fountains cer screening program for adults with company’s customer relationship tions to Siemens’ Teamcenter portfo- Hills, a public relations and market- and figurines shipped anywhere in the a history of smoking, both current and management platform; Dunnhumby lio, JT data format and Fibersim ing firm, added to its client list Zim’s U.S. Telephone: (586) 532-6032. Website: former smokers, to detect lung cancer USA, London, a joint venture of The portfolio software for composites engi- Vodka, Warren; Fundington LLC, www.smallhomedecorations.com. early with the help of low-dose com- Kroger Co. and Dunnhumby, with con- neering. Website: www.altair.com. Birmingham; Nude The Salon, Birm- Pocholin Children’s Shoes opened a re- puted tomography scans. Screening is sulting services for business intelli- Greenlancer Energy Inc., Detroit, a ingham; Brian Lyngaas, D.D.S., Livo- tail store featuring children’s $100. The Gianni Ferrarotti Lung Can- gence and data warehousing projects; Quicken Loans company, designed nia; Tomkiw Enwright PLC, Royal footwear made in Venezuela at 2248 cer Foundation is partially underwrit- Heartland Payment Systems Inc., and engineered the 48.48 kilowatt so- Oak; AFB Hospitality Group, Berkley; ing the expense. Telephone: (800) 527- Princeton, N.J., consulting services lar array installed on the roof at the and Adrian’s Collision Centers, South- Crooks Road, Rochester Hills. Tele- 6266. Website: www.karmanos.org. to design and implement enterprise- Lubavitch Yeshiva-International field. Telephone: (248) 855-4300. Web- phone: (248) 853-7435. Website: level data warehousing and business School for Chabad Leadership – Harry site: www.nearperfectmedia.com. www.pocholinstepbystep.com. intelligence solutions; Maximus Inc., & Wanda Zekelman Campus, Oak At Risk Entertainment LLC, Plymouth, Rochester Hills Counseling, Rochester DIARY GUIDELINES Albany, N.Y., consulting services and Park. Website: www.greenlancer.com. a motion picture production company, Hills, expanded offices into two suites, business intelligence solutions; and Marsalese Law Group PLLC, South- announced that its horror film 945 S. Rochester Road, Suite 101. Tele- Send news releases for Business Meijer Inc., Walker, customized con- field, joined Business Improvement “Locked in a Room” was acquired by phone: (248) 434-8227. Website: Diary to Departments, Crain’s www.rochesterhillscounseling.com. Detroit Business, 1155 Gratiot Ave., Detroit, MI 48207-2997 or MOVES send e-mail to cdbdepartments@ Gail H. Straith LLC, a provider of crain.com. Use any Business Diary legal services to businesses, from 280 item as a model for your release, N. Old Woodward Ave., Suite 104, and look for the appropriate to the Wabeek Building, 280 W. Maple category. Without complete Road, Suite 300, Birmingham. Tele- information, your item will not run. phone: (248) 220-1965. Website: Photos are welcome, but we cannot 990000 TTOWEROWER DDRIVERIVE www.straithlaw.com. guarantee they will be used. LANDMARK LOCATION

BUILDING • 281,000 square foot 14-story offi ce tower with 2-story annex • North Troy’s only landmark building • Floor-to-ceiling glass line AVAILABILITY Manufacturing is not • Up to 90,000 square feet of contiguous space in the tower just coming back, • Up to 40,000 square feet of contiguous space in the annex FEATURES AND AMENITIES it’s moving forward. • Recently renovated; impressive two- story lobby detailed with hardwood panels and granite fl oors "OFXJOEVTUSJBMSFWPMVUJPOJTSFWJUBMJ[JOHBOE • Effi cient and fl exible fl oor plates USBOTGPSNJOHUIFJOEVTUSZ BOE'PMFZBUUPSOFZTBSF accomodate a variety of space requirements BUUIFGPSFGSPOU8JUIBIPMJTUJDBQQSPBDIIPOFE SM • Lower level can accommodate offi ce PWFSZFBST PVSOBUJPOBM-FHBM*OOPWBUJPO)VC storage or computer/data center GPS/FYU(FO.BOVGBDUVSFSTDBOIFMQHVJEFZPVS • On-site bank branch and ATM CVTJOFTTJOUPUIFOFYUHFOFSBUJPOGSPNSJHIUIFSF • Numerous nearby amenities JO%FUSPJU including fi ne and casual dining, hotels, retail services, daycare, and -FBSONPSFBCPVU'PMFZT-FHBM*OOPWBUJPO)VCBU'PMFZDPNNBOVGBDUVSJOH PS fi tness center DPOUBDU%FUSPJU0GmDF.BOBHJOH1BSUOFS%BMKJU4%PPHBMBUEEPPHBM!GPMFZDPN • Immediate freeway access to I-75 • Ample, well-lit, high-ratio parking • Building and monument signage available

LEASING INFORMATION #0450/t#3644&-4t$)*$"(0t%&530*5t+"$,40/7*--&t-04"/(&-&4 Dennis Kateff ."%*40/t.*".*t.*-8"6,&&t/&8:03,t03-"/%0t4"$3".&/50 4"/%*&(0t4"/%*&(0%&-."3t4"/'3"/$*4$0t4)"/()"*t4*-*$0/7"--&: 248-644-7600 5"--")"44&&t5".1"t50,:0t8"4)*/(50/ %$ [email protected] ª'PMFZ-BSEOFS--1t"UUPSOFZ"EWFSUJTFNFOUt1SJPSSFTVMUTEPOPUHVBSBOUFFBTJNJMBSPVUDPNF /$MBSL4USFFU 4VJUF $IJDBHP *-tt 20130805-NEWS--0019-NAT-CCI-CD_-- 8/1/2013 4:57 PM Page 1

August 5, 2013 CRAIN’S DETROIT BUSINESS Page 19

CALENDAR

[email protected]; website: Detroit Regional Chamber. With Gene Marketing Association Detroit. Take Speed Networking. 8-9:30 a.m. Aug. 14. TUESDAY www.advantageoakland.com/expand. Michalski, president and CEO, Beau- a behind-the-scenes tour of Comerica Chaldean American Chamber of Com- AUG. 6 mont Health System. Beaumont Hos- Park. With Eli Bayless, director of pro- merce. Sam’s Club, Farmington Hills. pital Administration Building, Royal motions and in-game entertainment, Free; registration required. Contact: Rochester Hills Networking Event. 6-9 FRIDAY Oak. $20 members, $50 nonmembers. Detroit Tigers. Comerica Park, De- Danielle Kello, (248) 996-8340; email: p.m. Blackwood Business Club – De- Contact: Marianne Alabastro, [email protected]; web- AUG. 9 troit. $15 members, $20 nonmembers, troit. Networking with business own- (313) 596-0479; email: malabast@ site: www.chaldeanchamber.com. $10 students. Contact: Jessica Baird, ers and professionals. Mitchell’s Fish Knowledge Management. 1-4 p.m. HDI detroitchamber.com; website: Market, Rochester Hills. $15 in ad- Motown. Learn to improve service ef- www.detroitchamber.com. (586) 610-6938; email: ama.detroit313 vance, $20 at door. Contact: Alexander @gmail.com; website: www. amade Informal Networking. Asian Pacific fectiveness and efficiency by integrat- After-Hours Networking. 5-6:30 p.m. American Chamber of Commerce, Morgan, (248) 736-9540; email: de troit.com. ing the re-use of knowledge into the Aug. 13. Rochester Regional Cham- Philippine Chamber of Commerce of [email protected]; web- incident management process. Au- site: www.blackwoodclub.com. ber, Troy Chamber. Casual event fea- Michigan. 5:30-8 p.m. Aug. 15. Chrysan tomation Alley, Troy. Free. Contact: turing Royal Park’s “Best of Detroit Business After Hours. 5:30-7:30 p.m. Industries, Plymouth. APACC enter- Joy Goberville, (248) 619-3717; email: Fare.” Royal Park Hotel, Rochester. Aug. 14. Michigan Association for prise and corporate members free; $10 WEDNESDAY [email protected]; $12. Contact: (248) 641-8151; email: Female Entrepreneurs. Networking. APACC individual, nonprofit, entre- website: www.automationalley.com. BlackFinn, Royal Oak. $15 members, preneur and strategic partner level- AUG. 7 [email protected]; website: www.troychamber.com. $20 nonmembers. Contact: Tonya one members; $20 nonmembers. Con- McNeal-Weary, (866) 490-6233; email: Removing the Drama From Culture tact: Sarah Lalaone, (248) 430-5855; UPCOMING EVENTS The Detroit Tigers: Keeping Fans En- [email protected]; website: email: [email protected]; website: Change. 8:30-10:30 a.m. The Walsh In- gaged. 5:30-8 p.m. Aug. 13. American www.mafedetroit.org. www.apacc.net. stitute Leadership Center, Advi- Inside the CEO Mind. 8-10 a.m. Aug. 13. Coach. Engaging and retaining quality employees. With Kathryn Baker, president, and Tim Kuppler, consultant, AdviCoach. Walsh College, Novi. Free. Contact: Jan Hubbard, (248) 823- 1392; email: jhubbard@walshcollege .edu; website: www.thewalshinstitu te.com/lcbriefings.

Day Trading Stocks 101. 6:30-8:30 p.m. The Community House. Learn basic concepts about the U.S. stock market and how to look at trading platforms. With Cristina-Anka Metcalf, founder and CEO, TradeOutLoud.com. The Community House, Birmingham. $26. Contact: (248) 644-5832; email: [email protected]; website: www.tchserves.org. Marketing Your Business. 6-9 p.m. Oakland County Business Center. Learn key marketing implementation tools. Oakland County Business Cen- ter, Waterford Township. $40. Con- tact: Karen Lear, (248) 858-0783; email:

NOMINATIONS SOUGHT FOR NONPROFIT CONTEST This year’s Crain’s Best Managed Nonprofit Contest is focused on good management practices of nonprofits with budgets of $3 million or less. Applicants are asked to give examples of how they deploy their mission and resources, among other information. Applications are due Aug. 26. Finalists will be interviewed in person by judges the morning of Nov. 5. THEIR STORY INVOLVES Applicants must be a 501(c)(3) with headquarters in Wayne, PRESSES, PLATES AND 18 WHEELS Washtenaw, Oakland, Macomb or Livingston counties and must OF GLORY. include an entry form, a copy of the organization’s code of ethics, a copy of the most recent audited WHAT’S YOURS? financial statement and a copy of the most recent IRS 990 form. Previous first-place winners are not Detroit Radiator has been helping America keep on truckin’ for over 75 years. Since 1936, eligible; neither are hospitals, they’ve been providing big rigs with some of the best and most advanced after-market HMOs, medical clinics, business radiators and air-cooling systems you can get. and professional organizations, schools, churches or foundations. As trucks have changed, Detroit Radiator has changed with them, using the latest technology and The winners will be profiled in the always staying curious. At Fifth Third Bank, we’ve stayed curious right along with them, Nov. 25 issue, receive a special listening, understanding and helping Detroit Radiator keep moving forward. “best-managed” logo from Crain’s for use in promotional material and Learn more about Detroit Radiator’s curious business and share your own story at will be recognized at the Crain’s 53.com/curiosityatwork. Newsmaker of the Year lunch early next year. For an application form, please email YahNica Crawford at [email protected] or visit www.crainsdetroit.com/nonprofitco ntest. For information about the contest itself, email Executive Editor Cindy Goodaker at [email protected] or call (313) Fifth Third Bank. Member FDIC. 446-0460. 20130805-NEWS--0020-NAT-CCI-CD_-- 8/1/2013 4:11 PM Page 1

Page 20 CRAIN’S DETROIT BUSINESS August 5, 2013 Need a PEOPLE FINANCE Annette Watts to vice president of Amy Mulholland to IN THE SPOTLIGHT human resources human resources and branching, Bank of Michigan has named director, Michigan Communicating Jeffrey Karafa its first CFO. New Bank? Mutual Inc., Arts Credit Union, Southfield, from He had been Detroit, from vice senior vice senior manager of president, human organization man- president and resources/train- CFO of Fidelity agement and de- ing, Budco Hold- velopment, TRW Bank, ings Inc., High- Dearborn, until Automotive Hold- Watts land Park. ings Corp., Livo- its acquisition Christopher Blough to information Mulholland nia. by Huntington technology consulting manager in the Bank. Karafa, 48, earned a Karafa bachelor’s degree from the University of Michigan and an MBA from the University of Detroit Tired of missing your ﬂight? Mercy. IT government group, Plante Moran PLLC, Southfield, from IT project manager, city of Novi. Let ours compete for Steve Shanker to central region valua- tions and assurance partner, Pricewa- your business. terhouseCoopers LLP, Detroit and Chicago, from managing director, Loan amounts: $1,000,000.00 and above. Duff & Phelps Corp., Novi.

s Investment Real Estate s Accounts Receivable HEALTH CARE s Owner Occupied Real Estate s Equipment s Lines of Credit s Bank Workouts

Join the CLUB 1 (248) 860- 6378 • [email protected] 800.509.3552 www.eclipsecapitalgroup.com 2207 Orchard Lake Road, West Bloomﬁeld, MI 48320 Keeping you on schedule McNutt Bertolini “Since 1997” Belinda McNutt to director of nursing, Lourdes Nursing Home, Lourdes Se- nior Community, Waterford Township, from minimum data set coordinator. Gina Bertolini to associate vice president and deputy general counsel, Uni- versity of Michigan Health System, Ann Arbor, from assistant general counsel, University of North Carolina Health Care System, Chapel Hill, N.C., Kevin DiDio, now and legal director, University of North Carolina Physicians Network, a joint venture between UNCHCS and Blue In Your Corner.® Cross Blue Shield of North Carolina. LAW Lisa Kirsch Satawa Varnum is pleased to welcome corporate attorney Kevin DiDio to member in the litigation practice to the fi rm. group, Clark Hill ■ PLC, Birmingham, Experienced in M&A, negotiated transactions, securities, joint from principal at- ventures, strategic alliances, and corporate fi nance, structure torney, Kirsch & and governance. Strong concentration in business taxation. Satawa PC, South- field. ■ Works with domestic and foreign companies in the automotive, manufacturing, pharmaceutical, fi nance, health care and high MANUFACTURING tech industries. Joseph Gross to Kirsch Satawa president and ■ Proudly served in the U.S. Marine Corps. general manager, BrassCraft Manu- facturing Co., Novi, from vice president of operations and supply chain, Arrow Fas- tener Co. Inc., Saddlebrook, N.J. NONPROFITS Gross CELEBRATING Russ Russell to senior vice presi- 12 YEARS dent of mission ad- 5 vancement, Holy Cross Children’s Services of Michi- gan, Detroit, from chief development First Tier Ranking officer, Forgotten in Corporate Law and Commercial Harvest, Oak Litigation Park.

REAL ESTATE Erne Kevin DiDio Gregory Erne to principal, Versa Devel- ■ Metro Detroit ■ Grand Rapids ■ Kalamazoo ■ Grand Haven ■ Lansing [email protected] opment, Southfield, from founder, HELM Realty Partners LLC, Beverly Hills. 20130805-NEWS--0021-NAT-CCI-CD_-- 8/2/2013 5:12 PM Page 1

August 5, 2013 CRAIN’S DETROIT BUSINESS Page 21 Auction:Buying in bundles MARKET PLACE ■ From Page 1 manski, chief deputy treasurer. would take, it’s likely the property BUSINESS SERVICES LEGAL SERVICES BUSINESSES FOR SALE At past auctions, buyers who did would end up back in the hands of LICENSED PLANNING FIRM Immigration Law Firm, AV-rated not do their homework have pur- the treasurer’s office anyway, he Looking for licensed planning individual, Upscale Coffee Café for Sale chased such properties and then said. company and/or law firm with expert Antone, Casagrande & Adwers, P.C., Excellent South Oakland County location. Café knowledge in municipal ordinances and Seven-Attorney Firm come back and complained to the of- The plan, of course, is overshad- is only two years old and everything was fice. owed by Detroit’s bankruptcy. The zoning law. We are creating an innovative Dedicated to Business, Employment company. Serious responses only. Those and Family Immigration Matters purchased new. Includes micro coffee roaster. “These things clearly have no plan has not run into any head- qualified please send name and Farmington Hills, MI 48334 Owner is retiring. Call for details: value. People don’t do their due winds from that so far, but “it’s qualifications to: [email protected] (248) 406-4100 www.antone.com (248)770-1065 diligence and then come in and very much a wild card,” Szyman- say, ‘I didn’t know I was buying a ski said. FINANCIAL SERVICES Grosse Pointe Woods Retail Business burned-out building,’ ” Szymanski The treasurer’s office does not said. need approval from Detroit emer- Continous Operation Since 1971 gency manager Kevyn Orr to make The office wants to avoid that, as Positive 6-figure earnings well as those who buy for “nefari- the changes, and Orr’s office to ous purposes,” such as to sit on date has not put the auction at a $250,000.00 them and then sue when projects high priority, he said. Serious Inquiries; Bob 313-715-6767 like Detroit Future City come But some inquiries have come along with plans to reuse an area in from Orr’s office, and consider- for greenways. ing the talk of selling Detroit’s as- Seeing Green! “There’s no good reason for any- sets, a large amount of land could Unique, Established, Profitable Retail one to buy them,” Szymanski said. come into play, Szymanski said. Business for Sale The office must decide by Aug. By state law, the local munici- Landmark Macomb County Location. 20, when the listings for the Sep- pality has the right to take proper- Inventory, fixtures & goodwill equal multiples of tember auction go live. ties that don’t sell at auction be- asking price. Video tells all, view it at: The number of bundled proper- fore the county does. www.ownitnow.net and call (586)506-5311 ties could be as low as 400 or as Last year, Detroit took about high as more than 1,000. The office 8,000 properties. In 2011, it took is struggling with the number as it none. In years leading up to 2011, it figures out criteria on which prop- usually took everything, Szymans- Call or email today for information erties to bundle. ki said. on a custom advertising plan! If given a choice, it would first Embry Webb, president-elect of go after properties near schools. the Detroit Association of Realtors, Also at the top of the list would be said it sounds like a good plan, but [email protected] the solitary dilapidated structure only as long as the county or city sitting in an otherwise solid block has a clear plan as to what to do 313.446.6068 of residents, as opposed to several with the properties once the auc- dilapidated structures in a largely tion is over, assuming the bundle vacant block, Szymanski said. does not sell. It won’t do anyone The office also does not want to any good if the properties languish include properties for which par- for another year, he said. ties have expressed interest in do- “If they’re going to make it REAL ESTATE ing the demolition for the good of where individuals can’t purchase, their neighborhoods. then they need to have a plan of ac- Wayne County holds two tax tion once they get past Step One,” INDUSTRIAL PROPERTY VACANT LAND WATERFRONT PROPERTY foreclosure auctions a year. The he said. AVAILABLE NOW first, held in September, auctions Antoine Hayes, CEO of Lathrup VACANT LAND WALLOON LAKE off properties at a starting bid Village-based Benjigates Estates Taylor/Romulus Area Near Detroit Metro Airport equal to the amount owed on the LLC, one of the leading buyers of 4,000 to 80,000 sq. ft. The Ultimate Family Lake Ideal for logistics, mfg., service co., distribution, 2500 East Paris Avenue SE, Kentwood, Michigan properties. The second, in Octo- properties at the auction, said the office warehouse etc. Call for Availability • 5.27 acres ber, auctions off properties that bundling plan will be good for Yvon Rea 734-946-8730 or • Zoned C-4/Office/Business didn’t sell in September, at start- neighborhoods and, in turn, good visit our website www.reaconstruction.net • Close to major retail commercial corridor ing bids of $500. for his company’s business, which The office has not decided sells homes to low-income buyers 5340 Highland Road, Waterford, Michigan in Detroit. whether it would bundle the prop- INVESTMENT PROPERTY • 6.80 acres erties for just the September auc- “One of two things will happen. 50 Homes + Building Sites • Zoned C-4/Extensive Business District tion, the October auction, or both. Either entities will come to the Spectacular Water SOUTH HAVEN, MI REAL ESTATE AUCTION The starting price to bid on the table, or the properties will be left 25 Miles of Shoreline bundle at the September auction alone for the county or municipali- MARINA & HOMESITES IN RESORT realestatesales.gov Other Lakes from $100,000 to would be the sum of all the taxes, ty to effectively deal with it, versus COMMUNITY HARBOR CLUB - BULK SALE or $15 Million fees and interest owed on all the people buying individual proper- (312) 353-6039 Joe Blachy properties within the bundle. For ties that they’re never going to do LOT 1: Approx 110 MARINA SLIPS plus newly the October auction, it would be anything with. It’s a smart idea,” renovated clubhouse & swimming pool. (231) 409-9119 TO BE SOLD IN BULK. the sum of the $500 starting price Hayes said. Previously Valued Up to $4,250,000 U.S. General Services email: [email protected] website: joeblachy.com for all the properties. The larger bundling plan comes SOLD SUBJECT TO A MINIMUM BID OF $1,250,000 Administration Szymanski did not know off- as the treasurer’s office overhauls Call anytime between 7am & 10pm 7 days a week! 420 Howard St., Petoskey, MI 49770 hand how much it would cost to its auction, which takes place on- LOT 2: Approx 200 IMPROVED HOMESITES ON 40 buy all these properties at the line. The office this month signed a ACRES TO BE SOLD IN BULK. Previously Valued price represented by the taxes, contract with a new vendor, Up to $20,000,000 Suggested Open Bid: fees and interest owed, but last Realauction.com LLC, based in Fort $3,500,000 year the office put the figure for Lauderdale, Fla., replacing Silver these types of properties at $420 Spring, Md.-based Bid4Assets Inc. af- Online Bidding: Sept 2 - 10, 2013 million. ter that company’s three-year con- JOB FRONT Of course, if the bundle does not tract came up. RICK LEVIN & ASSOCIATES INC. sell at the September auction, it The treasurer’s office wants the (312) 440-2000 TECHNICAL would head to the October auction. new site to be more transparent, WWW.RICKLEVIN.COM A bundle of 400 properties then with actual purchasing entities be- Software Engineer would start at $200,000, putting in ing shown, as opposed to names the realm of possibility for many that users make up, as has been Software Engineer for Service Solutions U.S. LLC d/b/a Bosch Automotive Service Solutions, more people to buy it. the case with Bid4Assets.com. Call Us For Personalized in Allen Park, MI. Duties: Author module programming software for automotive diagnostics Szymanski said he’s “not signif- The office also wants to lengthen products, including analyzing requirements, integration on multiple operating systems & Service: (313) 446-6068 conforming to automotive standards including J2534. Debug & maintain diagnostic software icantly concerned” about that the time that the properties are codes, write custom functions & develop test cases & test plans for validation teams. happening, because even if some- listed and open for bidding. For FAX: (313) 446-1757 Communicate w/ customers & team members regarding design, planning, requirements one does snap up the bundle, the this year’s September auction, it’s E-MAIL: [email protected] analysis & testing/debugging activities. Utilize vehicle communication protocols including treasurer’s office has a reverter aiming to have the properties up HS/MSCAN, SCP & 14229 to develop & debug diagnostic application software. Req’s: Bach clause in its auction papers that by Aug. 20, with bids beginning INTERNET: Deg in Software, Comp or Electrical Engineering or foreign equiv; 5 yrs exp in a vehicle www.crainsdetroit.com/section/classifieds diagnostic module programming pos. Exp must include: developing vehicle diagnostic allows the office to retrieve the sometime near Sept. 3 and closings software packages using C++/C#, ATL & COM/DCOM, including testing w/ vehicle property if taxes aren’t paid after beginning Sept. 23. See simulations; programming vehicle modules through HS/MSCAN, SCP & 14229 protocols; 30 days or if the property isn’t se- Listing for the October auction vehicle link traffic & associated diagnostic software systems to develop & debug vehicle cured or demolished within six would go up around Oct. 3, with Crainsdetroit.com/Section/Classifieds interfacing software apps; and developing APIs utilizing J2534 interface standards. Exp can months. bids starting about Oct. 3 and clos- be acquired concurrently. Mail resumes to Victoria Vargas, Service Solutions U.S. LLC, for more classified advertisements 28635 Mound Rd, Warren, MI 48092. Identify Software Engineer pos. EOE. Given the amount of money that ings beginning Oct. 21. 20130805-NEWS--0022-NAT-CCI-CD_-- 8/2/2013 5:26 PM Page 1

Page 22 CRAINí S DETROIT BUSINESS August 5, 2013 Gaddis: Small radio talk show wields large political influence ■ From Page 3 on the part of Detroit’s business Press since 1973, said Gaddis has a at a black audience, listens to the been starving for a voice of their the matter with Crain’s. community or suburban interests serious role in setting the tone for show and has hosted forums with own. I’m not the only one, but I But Gaddis doesn’t shy from ad- — or to echo the accusations of big- the discussion in the city. Gaddis. think that people can count on me dressing criticism. otry, collusion and conspiracies on “People who are active in city “She has a unique voice and per- to give them a voice of reason,” she “My response to my critics is the part of whites or blacks, as sug- politics listen to that show. Proba- spective for an African-American said. “I may call it a voice of reason, quite simply, what you think of me gested by her show’s guests and bly half the folks in the Coleman A. radio outlet. Talk radio always is an there are others out there (who do is none of my business,” she said. callers. Young Municipal Center have influential platform,” he said. “In not), and some may be adversaries “When you think about black talk Critics call her brand of radio of- heard what she the marketplace, it’s important and — I’m not their adversary — but radio in this city, can you remem- fensive, pandering to the worst had to say,” he critical we have different voices on that is how I see my role. ber when there was a voice that fears of listeners, while backers said. “She may different issues.” “What separates me from others did not represent any particular say her unapologetic point of view play an impor- What Gaddis has to say extends who do what I do is that I don’t want (faction)? about Detroit and black issues tant role in this beyond a black audience, Thomp- anything. I’m not looking for any- “Keep in mind these same crit- simply make some uncomfortable. particular elec- son added. thing, for a job for a family member, ics didn’t have a problem with me Her skepticism has been espe- tion because I “It’s not only African-Ameri- a place to land when I’m no longer criticizing Kwame Kilpatrick. At cially applied lately to Duggan, the keep hearing cans who listen to Mildred, but doing talk radio,” she said. “I don’t one point, I was the lone voice in former Detroit Medical Center CEO, turnout is ex- people in different communities have an agenda. I want to leave with this city, black or white, to criti- Gov. Rick Snyder and Detroit’s pected to be low. that tune in to get her perspective my integrity intact.” cize Kwame Kilpatrick. From the emergency manager, Kevyn Orr. Kiska “People who she’s putting out there,” he said. very beginning, there was no one Gaddis said she is an alternative are going to vote Thompson defended her brand else doing it on radio or on TV.” to unfairly favorable media cover- are those interested in what’s go- of radio, as well. Facing the critics She noted that Curt Guyette at age of Duggan’s campaign. ing on. A good chunk of those folks “Talk radio gravitates toward Critics have questioned that in- Detroit alternative weekly news- “What I have done is pointed out are going to be listening to her.” opinionated journalism. She’s in tegrity. paper Metro Times had been an on my show the inequity in the Kiska, a professor of journalism the business The Detroit Free Press in 2005 re- early critic of Kilpatrick, as well. coverage of these candidates,” she at the University of Michigan-Dear- where she has ported that Gaddis sold $136,000 “It turns out, it would have been said. “I think Mike Duggan does born and contributor to the elec- every right to do worth of paid advertisements to great for Detroit if I had been have his strengths. I think the me- tion site MiVote.org, said Gaddis that. I think Mil- Detroit Public Schools in 2004 for wrong.” she said. “I take no pleasure dia has covered him to protect discusses issues no one else in me- dred has every her WCHB show, earning a com- in having been right.” him. ... I think the media has shut dia is talking about, but that she’s right to ask mission on the sales, according to In the past, Gaddis has offered down coverage of others. also cut from the same passionate questions about invoices to the school district ob- listeners her opinion on who she “I don’t have a personal issue partisan talk radio style cloth as (Duggan). We tained by the newspaper under the thought deserved their vote more with Mike Duggan. I do have a Rush Limbaugh. have other (me- Freedom of Information Act. than other candidates, but said she problem with the media in this “Talk radio is a lunatic medium. dia) outlets that Gaddis, who discusses and has isn’t doing that now. town that nobody deserved ink or That’s what sells. It’s entertain- support Mike criticized the school district on her “They turned out to be worse Thompson air time unless it’s to attack one of ment. She needs to be a bit of a Duggan,” he show, told the Free Press that dis- than the people who preceded the other individuals. Mike Dug- combative loudmouth to survive,” said. closing the advertising relation- them. That was an educational mo- gan is a smart man. I don’t know Kiska said. “There’s a certain seg- Hood questioned her fairness. ship with DPS was unnecessary ment for me,” she said. “I won’t be how this election is going to fall.” ment of the community that signs “She tends to be one-sided on a because the sales didn’t influence endorsing anybody.” The Duggan campaign, which onto that. Whether that matters on great many issues. I don’t think her and she doesn’t disclose all advertises on WCHB, declined to Tuesday, we’ll find out.” she has been down the middle on other ad relationships on air. comment. Kiska also said Gaddis will dis- Mike Duggan,” he said. In 2009, an investigation by WXYZ- A move out of fear cuss local issues not talked about Gaddis said she doesn’t see her Channel 7 reported that Gaddis was WCHB is owned by Lanham, ‘A lunatic medium’ elsewhere, such as problems with role as someone trying to influence charging Detroit City Council can- Md.-based Radio One Inc. (Nasdaq: the pool and gym floor at the North- listeners, but rather to educate. She didates $1,000 to appear on her ROIA), which has 55 radio stations Tim Kiska, who has been run- west Activities Center. said she sees her show as one of the WADL-Channel 38 television talk in 17 markets and targets a black ning election-night projections for Bankole Thompson, senior edi- few media bastions for a different show, “Meet the Candidates.” Can- audience. In Detroit, it also owns local radio and TV stations and tor at The Michigan Chronicle, the point of view. didates unable or unwilling to pay WDMK 105.9 FM, WPZR 102.7 FM The Detroit News and Detroit Free city’s largest newspaper targeted “People in this community have were not interviewed. and WGPR 107.5 FM. The show aired during time the A graduate of Texas Southern Uni- station said it had provided Gaddis versity, Hattiesburg, Miss., native for free. One benefit to WADL was Gaddis came to Detroit from St. cross-promotion on Gaddis’ radio Louis 20 years ago, and was a host show. At the time, WADL was on WJLB FM 97.9 until 1999. billing itself as Detroit’s urban sta- Her outspokenness with Kil- 2013 tion. patrick led to an incident that made Gaddis, who wasn’t a WADL em- her fearful for the first time in her ployee but instead had a deal to sell nearly 40 years on radio, she said. Giving Guide advertising for the program and Gaddis said Detroit police came kept the money charged to candi- to her home at 4 a.m. in 2006 to of- dates, told WXYZ she “made a mis- fer protection. She said she talked Put your organization in front take” and accused WADL of failing to a police captain who told her to put a “paid programming” dis- they were concerned for her safety of Detroit’s business and claimer on the show. because of her anti-Kilpatrick sen- WADL’s owner — privately timents on air. philanthropic leaders. owned, Clinton Township-based “That scared the hell out of me,” 2 page spread Adell Broadcasting Corp. — severed she said, which prompted the * only $3,825 ties with her shortly after the inves- move to South- YEAR-LONG EXPOSURE: tigation was broadcast. The station field. Reach business owners, CEOs, presidents (80% OFF standard at the time said it had been un- Hood said the and top-level executives in print and online print rate!) aware of the pay-to-play situation. move damaged for an entire year on crainsdetroit.com In June 2012, The Detroit News Gaddis. “I felt reported that Gaddis was under in- she was much vestigation by the FBI in connec- stronger while BONUS DISTRIBUTION: tion with $75,000 payments to a she still lived in 2,500 distribution to wealth managers and company she owns, ExCel Media, by Detroit,” he estate/trust attorneys in Southeast Michigan companies linked to union activist said. Robert Davis and ex-Wayne Coun- When not on 500 additional copies will be distributed ty Assistant Executive Michael Hood the radio, Gad- at the Association of Fundraising Professionals Grundy. Both men appeared on dis lives with her husband and is annual Philanthropy Day Dinner, Nov. 13 at her show. helping organize the “Detroit Girls Project,” a Saturday self-improve- Detroit Marriott in the Renaissance Center. The local FBI office declined to The fi rst 50 nonprofi ts comment. ment program for underprivileged girls ages 8-15 that aims to launch will be featured as a Davis was indicted on federal Contact Marla Wise at corruption charges and faces a in October. Nonprofi t of Note with a link She has no plans to leave the air. (313) 446-6032 or [email protected] Sept. 16 trial. He’s accused of steal- in a Crain’s Detroit Business ing $125,000 from the Highland “I am one of those crazy individ- e-newsletter Park school district, and Gaddis uals who doesn’t believe in retire- PLATINUM SPONSOR GOLD SPONSOR was questioned about the payment. When you do what you love, ments to her in relation to that it’s as easy as breathing,” she said. “I’m not sure what’s ahead for PUBLICATION DATE: Oct. 28, 2013 case, The News reported. me.” PROFILE RESERVATION DEADLINE: Oct. 1 A spokesman for Gaddis told The News that ExCel took the mon- Bill Shea: (313) 446-1626, *Rate only available to non-profi ts. ey but not for any special on-air [email protected]. Twitter: treatment. She declined to discuss @bill_shea19 20130805-NEWS--0023-NAT-CCI-CD_-- 8/2/2013 5:10 PM Page 1

August 5, 2013 CRAIN’S DETROIT BUSINESS Page 23 State to tighten charity gaming rules

BY SHERRI WELCH ing suppliers to delineate between assaults and other crimes such as CRAIN’S DETROIT BUSINESS minor offenses such as not wear- armed robbery taking place in con- ing a nametag and major offenses nection with the parties, according The Michigan Gaming Control like “cooking the books.” to the gaming control board. Board is enacting stricter rules for Increased regulation of million- In April, the gaming control charity gaming parties. Among aire parties in Michigan follows a board added Woody’s Poker Room in them: Requiring proof that real boom in the number of them in re- Wyoming and Dollar King Poker charities are benefiting. cent years. The parties generated Room in Temperance to the list of The gaming control board plans $184 million in cash activity in fis- unapproved locations, along with to pursue rule changes in coming cal 2012, up from $3.4 million in four other poker rooms — includ- months to specify things such as 2003 but down from the reported ing the state’s largest operator, times games can take place and a $194 million generated by charity Snookers’ Poker Room in Utica. requirement that charities show games in 2011, according to the Scott Miller, president of the Band they don’t just exist to operate mil- Michigan Bureau of State Lottery’s Boosters Association of West Bloom- lionaire parties, said Rick Kalm, Charitable Gaming Division. field and owner/operator of executive director of the board. Last year, charities made $19 www.detpokerz.com, said he dis- Meanwhile, the Michigan Charita- million from the games, and sup- agrees with most of the changes, ble Gaming Association, which repre- pliers and room operators made saying that the requirement to com- sents nearly 400 charities and for- $18 million, Kalm said. That was profit charity poker room owners, up from $3.5 million in net profit to plete reporting paperwork by mid- is seeking a legislative sponsor to charities in 2004 and $825,000 in night for games and limiting the introduce changes it’s proposing to revenue for licensed suppliers and number of charities at a site to the Traxler-McCauley-Law-Bow- gaming room operators. three will reduce the amount of man Bingo Act of 1972. The law allows charities to split money charities can make. The association agrees with 10 percent of the money wagered, Removing the ability to tip deal- some of the gaming control board with the rest going to players. ers with chips during play “will re- changes, but it believes the board The gaming board’s proposed duce their tips to next to nothing.” is going too far with ending games rule changes follow more than 300 “I feel this will lead to the end of at midnight and capping the num- violations on the part of charities charity poker rooms and the busi- ber of charities at each site at and gaming suppliers identified ness and employees that rely on three. Among other things, it fa- during more than 900 site visits them,” Miller said. vors licensing poker room opera- over the past year, Kalm said. Sherri Welch: (313) 446-1694, tors — something the law doesn’t The violations included inci- [email protected]. Twitter: @sher- currently do — and licensed gam- dences of illegal gambling, fraud, riwelch

FlockTag: Firm grows in loyalty game ■ From Page 3 customers something free after 10 business from local competitors so their customers,” he said. purchases, but the company can much as national competitors like Brent Haywood is manager of also target specific customers with Groupon, and sharing a big pie with several Ann Arbor restaurants — specific offers — those who are others based in Southeast Michigan. Good Time Charley’s, BTB Cantina close to their 10th purchases, for Groupon has had much-publi- and BTB Burrito — and began using example, or other customers who cized trouble in retaining business- FlockTag late in 2011. haven’t been back in a while. es, who often find that two-for-one “It’s worked out very well. Cus- About half of FlockTag’s com- offers end up as money losers and tomers had been asking us about a mercial customers are in Michigan. result in a flood of one-time visi- loyalty card for a long time, but Lin said the company plans to be- tors or visits by people who were we’d held off,” he said. “What I like gin raising another round of $4 mil- already customers. is being able to target people who lion to $5 million this year to make Lin says he found out the perils of only come in once a month or so, its software more robust, increase using Groupon at Bubble Island, an or those who go to other FlockTag marketing and enter other markets. Ann Arbor-based company he owns companies but not to us. He said he expects revenue of that serves Taiwanese drinks, “We can track results, and it $300,000 this year and significantly snacks and desserts at locations in works. You can see a real increase more next year. East Lansing and Ann Arbor. in business from people who get a “Right now, revenue projections In November 2011, right after targeted offer.” for next year are vaporware. We FlockTag launched, Lin offered Lin and Fortino, both 36, met plan to grow appropriately for a 2,600 Groupon coupons, wanting to when they were undergraduates in venture-backed company,” he said. test the competition. To take ad- mechanical engineering at UM. Lat- vantage, customers had to use er, they earned MBAs there. their FlockTag membership card Fortino has co-founded two other Enough work for all? or get one. It turned out that 80 per- tech-based companies: Shepherd In- FlockTag is one of several local cent of the customers who used telligent Systems LLC, a UM spinoff companies trying to build traction Groupon were already visiting that uses GPS technology to help in its field. Bubble Island at least twice a bus riders avoid long waits, and Last year, Glyph Inc., then based month. Of the 460 new visitors, SideCar LLC, a peer-to-peer rideshare in Detroit and now in Ann Arbor, only 40 made a return trip. company now in San Francisco. raised $500,000 for its app-based ser- “The loyalty space has been a Fortino is vice president of Invest vice to help credit card customers broken space. The economics Detroit and director of its two early- manage their reward programs. haven’t worked for the customer. stage investment funds, Detroit Inno- In February, Farmington Hills- We’re building a sustainable mod- vate and the First Step Fund. based ReapSo LLC, having raised el,” said Lin. “If we do the things Lin is also vice president of op- $575,000, launched its loyalty app, right that we’re supposed to do, erations at Amherst Fund LLC, a fam- with an initial target of businesses we’ll pick up the pieces from larger ily fund run by Matt Turner that in and around Royal Oak. competitors as we scale up. provided equity funding in the In April, Ann Arbor-based Larky “We have a pretty clear plan round of financing. Inc. closed on a $650,000 funding ahead. We just need to execute.” Other investments in FlockTag round, led by Ann Arbor-based included $250,000 from the Michigan North Coast Technology Investors LP. Pre-Seed Capital Fund administered Larky has created a database of or- Building loyalty on behalf of the Michigan Economic ganizations and companies nation- “I know David (Lin). He’s a per- Development Corp. by Ann Arbor wide that offer discounts to mem- sistent entrepreneur. He gets a code Spark, and funding from several an- bers or employees and developed to crack, and he works at it until he gel investors, including Carl analytics to help their members cracks it,” said Andrew Bank, one Hagelin, a former UM hockey play- make take advantage of the offers, of Larky’s co-founders. er now with the New York Rangers. Executives at those companies “I like FlockTag. They’re doing Tom Henderson: (313) 446-0337, say there is business enough for all. a turnkey approach to helping [email protected]. Twitter: Lin said he isn’t looking to take their business owners better serve @tomhenderson2 20130805-NEWS--0024-NAT-CCI-CD_-- 8/2/2013 6:21 PM Page 1

Page 24 CRAIN’S DETROIT BUSINESS August 5, 2013 Adviser in N.Y.’s bankruptcy struggle: Key players should unite On Oct. 17, 1975, New New York survived. end of the process, we had the did. The MAC was run by busi- finance this (city’s debt), and what York City sat on the brink But New York isn’t De- unions threatening strikes, we had nesspeople, not unions, and we re- the Republicans and President of bankruptcy. Mayor troit. Detroit is not the the banks threatening lockdown financed the whole thing to keep (Gerald) Ford said, or didn’t say, Abraham Beame had economic epicenter of the (on funds), and it looked as if bank- the city going. was a wonderful thing for us. After signed the formal petition U.S. But while New York ruptcy was something that was go- reading the Daily News (whose and was prepared to file suffered similar misman- ing to happen. We had a brand-new Unions and business leaders histori- headline famously read: “Ford to as the city would enter de- agement from public governor, and when he came in, cally haven’t been fond of each other. City: Drop Dead”), I was with Gov. fault by day’s end. leaders, its misfortune the world kind of caved in on him. Why did they work together in New Carey and I was really down. He The city held $14 billion was sidetracked by what But he drafted a half dozen of us to York? was excited and he said, “Don’t in debt, empty coffers and Felix Rohatyn, then advis- see if we could avoid bankruptcy. The people who counted to make you see we’re going to win this nowhere to turn. Howev- er to Carey and a long- Gov. Hugh Carey single-handedly this work, the municipal unions thing?” It put us on the right path er, New York Gov. Hugh time Wall Street invest- saved New York City. and banks, they had never really to get this deal done, and it ulti- Carey’s assembled task Q&A ment adviser, called worked together. It took a very mately cost Jerry Ford re-election. force of business leaders democracy. How were you able to fix the prob- long time, but we were able to have I ran into President Ford years lat- Felix Rohatyn, Crain’s Dustin was able to sit stakehold- reporter lem and avoid bankruptcy? a conservative but viable dialogue. er at Carnegie Hall. He saw me and ers, bank and unions at Lazard Freres & Walsh chatted with Ro- We couldn’t have done it with- Today in America, we have Repub- threw his arms around me and the same table to hash out Co. hatyn, 85, member of out the unions’ support. Even licans and Democrats who don’t said, “When business and labor a deal to save the city. Carey’s state-sponsored though it was heavy, heavy going, talk to each other. I’m not sure we work together, it always works.” The city’s budget deficits and Municipal Assistance Corp. and now the unions, or at least most of the could get everyone to do the same pension underfunding caused special adviser to the chairman unions, ultimately understood thing again. But, at that time, we To many, Detroit’s pension problem creditors to raise interest rates, and CEO of New York City-based that we couldn’t work this thing knew every alternative was worse, eroding New York’s ability to meet advisory firm Lazard Freres & Co. without them and they couldn’t go and these people finally under- is beyond our borders and a nation- obligations. But the task force LLC, about what Detroit can learn on without us. stood that. wide epidemic on the brink. What brought leaders, union and munic- about New York’s brush with in- We got the banks to sit at the should be done? ipal, to the table and refinanced solvency. same table as the unions; that had Government leaders have ex- I think the issue of pension the debt at the 11th hour by freezing never been done. We reduced, con- pressed no interest in a federal bailout funds is the single-most difficult wages, instituting tuition at city What happened in New York? siderably, the size of the city’s for Detroit. New York received similar question that we’re facing econom- universities, layoffs, subway fare We had a number of root causes. workforce and put a lock on the treatment before it eventually backed ically. I don’t believe it can be increases, issuing $2 billion in The public sector was spending city’s finances so no money could $2.3 billion in bonds. Did New York fixed without a major restructur- state-sponsored bonds and, most money and at the same time the be spent without our approval. feel abandoned? ing of our economy. It has to be a importantly, persuading union economy wasn’t great. We had few- The governor gave the Municipal They said the city could drop federal program. For Detroit, this leaders to use pension funds to buy er and fewer assets and more and Assistance Corp. the ability to sell dead. That woke us all up. There is more of a political issue than an $500 million of city bonds. more requirements. Toward the bonds through the state, and we was a heavy conservative tilt to re- economic issue. Pensions: Detroit case could tread new territory for retirees ■ From Page 1 Rhodes’ schedule. candidates for the committee, ac- completed contract, but “the cur- and a proposed reorganization in from employees and their supervi- The city has two employee pen- cording to the order. rent employee can have benefits Jefferson County, Ala.’s 2011 bank- sors gaming the system. sion funds, the General Retire- The pension funds oppose the re- cut” in the city’s reorganization. ruptcy still awaits a court hearing Some employees have been able ment System and Police and Fire, tiree committee. The U.S. Court of Appeals gener- this week. That plan puts the coun- to stockpile large chunks of vaca- with an estimated $3.5 billion in “It is important the appointment ally upholds the contractual rights ty’s retirees into a class of “unim- tion and sick time over the years, unfunded claims. But this unfund- of a retiree committee should not of retirees, she said. paired claims” or those whose con- then getting paid for all of it in the ed debt figure could change based be used by the city … as some sort Orr could be approaching the tractual rights are unaffected. last year of service, or by getting on the Milliman review. of surrogate or straw person to case based on private sector bank- promotions to high-paid positions An analysis last Thursday of the avoid its obligations to negotiate ruptcy precedent, or may realize immediately before retirement, pension funds by Morningstar Mu- earnestly and in good faith with he could get hamstrung in court if So far, no cram-down since pension benefits were com- nicipal Research in Chicago esti- other significant creditor con- he creates categories of retirees be- Orr said the city is not consider- puted in part on wages in the last mated the two funds actually had stituencies whose interests may fore he turns in his own reorgani- ing a “cram-down” contingency year of service. slightly under $1 billion in unfund- overlap,” the funds stated in a court zation plan, said Douglas Bern- plan, or one that relies on court en- “It was a multiplier effect, and ed liability in 2012, are about 91 motion last week. stein, managing partner of the forcement over creditor objec- because of it you had a lot of work- percent funded, and that actuarial Attorney General Bill Schuette, banking, bankruptcy and credi- tions, suggesting he holds out hope ers making almost the same in re- assumptions are “not conserva- who said last week he was heading tors rights practice group at Plun- for agreements with the pension tirement as their regular pay. And tive” but within industry norms. to court “on behalf of Southeast kett Cooney PC in Bloomfield Hills. funds or bondholders. thanks to generous collective bar- The General Retirement System Michigan pensioners who may be at “If the judge finds that the plan Typically, a reorganization plan gaining, they were able to collect pays an average annual retirement risk,” will not seek to become the at- doesn’t discriminate, the plan can needs approval from a majority of that kind of pay when they were in benefit of $19,000 per employee, ac- torney for the new retiree commit- get confirmed easier. You have to creditors representing at least two- their late 40s or early 50s and then cording to a valuation by Gabriel tee, but he “welcomes the opportu- treat similarly situated creditors thirds of the restructured debt, to go out and get another job,” he said. Roeder Smith & Co., while the police nity to give struggling retirees a the same way,” he said. “But one of gain court approval in a Chapter 9 “That’s not what the founding and fire pension annuity is about seat at the table,” his communica- the things he has also got to demon- case, meaning in Detroit’s case city fathers had in mind when they $30,000, said Bruce Babiarz, owner tions director, Joy Yearout, said strate is that the plan is feasible. some bondholders or insurers wanted to reward those who had of BAB Associates LLC and Friday. The point here is to trade promises would have to give support. A opted for public service.” spokesman for the pension funds. that he can’t keep (on the city’s be- cram-down plan generally needs Orr said he empathizes with the The pension debt is the second- half) for promises that he can.” the approval of just one class of other kinds of retirees, too. biggest pot of unsecured debt for Legal issues “impaired” creditors who agree to “I understand that to the 83-year- Detroit, trailing health care liabili- While both the General Retire- take a hit on what they’re owed. old retiree none of this makes sense ties of an estimated $5.7 billion. ment System and Police and Fire Limited case law “We have proposals outstand- or seems to be very fair...my moth- But fixing health care debt and not pension funds have assets in them, Other municipalities either nego- ing,” Orr said of the creditor discus- er was at a church conference and dealing with pensions wouldn’t previous mismanagement hasn’t tiated settlements or haven’t made sions. “Even before we get to that ran into a Detroit pensioner in this help the city, Orr said. left them properly funded, Orr it far enough in bankruptcy pro- point (of a reorganization plan), we very circumstance. She came up to “I’d be kicking the can down the said. The new actuarial review ceedings for a judge to rule on pen- have to understand what the hard her and, here’s the catch, said, ‘I road, sweeping the dirt under the will paint a clearer picture on how sions. positions are. We are hoping that should be mad at you, but I’m not. rug,” he said. “I’d be doing the accurate the $3.5 billion figure is Bankrupt San Bernardino, Calif., some of these positions (are just po- He’s doing what needs to be done. very thing — avoiding the issue, and what cuts are needed to pen- just resumed making payments in sitions that) people have to take for I’m concerned and I’m afraid, but the very irresponsibility, that I’ve sion plans. July to the California Public Employ- points of advocacy.” it’s the right thing.’ said has gotten us to (this) point.” Pension experts say determin- ees’ Retirement System after sus- Regarding the pension fund mis- “Even people who are right The pensions, for their part, ob- ing where pensions and labor pending them nearly a year. Mean- management, Orr said 30 percent square in the bull’s eye on this is- jected to the formation of a retiree unions fall in the creditor hierar- while, Stockton, Calif. — previously of investments were in private eq- sue, even they have the lucidity to committee in part because it could chy among bondholders and ven- the largest city in Chapter 9 until uity, real estate and other deals step back and say, ‘Look, this is no marginalize the funds themselves dors is not totally clear. Detroit filed on July 18 — has been without advisers, and he believes surprise.’ We are trying to be fair, in negotiation. Babiarz said late “I think that issue is still going paying CalPERS, and the pension are below the 80 percent-funded but we are trying to deal with the Friday the pensions were still re- to be fought out,” said Sharon Al- fund in return has not challenged threshold. realities that have been coming viewing Rhodes’ order and decid- monrode, a pension fund litigation Stockton’s eligibility to file bank- One local money manager, who here for a long time. It’s very, very ing whether to appeal. attorney and partner at The Miller ruptcy as it has done with San asked not to be named because his difficult.” The committee replaces the pen- Law Firm PC in Rochester. Bernardino. firm is seeking future fund man- Chad Halcom: (313) 446-6796, sion fund board and labor unions Almonrode said current retirees Neither of those cases has ad- agement work for the city, said De- [email protected]. Twitter: in court, and Orr helps the U.S. could be considered protected be- vanced far enough for court ap- troit and other public pension sys- @chadhalcom. Tom Henderson bankruptcy court trustee select cause they are being paid under a proval of a reorganization plan, tems also suffered historically contributed to this report. 20130805-NEWS--0025-NAT-CCI-CD_-- 8/2/2013 5:51 PM Page 1

August 5, 2013 CRAIN’S DETROIT BUSINESS Page 25

Suburbs: Support pays big for Detroit vote favorites www.crainsdetroit.com EDITOR-IN-CHIEF Keith E. Crain ■ From Page 3 GROUP PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] ASSOCIATE PUBLISHER Marla Wise, (313) 446- campaign finance statements with “What’s really clear to me is that Mitchell, president of East Lans- voting and vocalizing support for 6032 or [email protected] the Wayne County clerk July 26 people aren’t shying away because ing-based Mitchell Research & Com- candidates or issues, not by con- EXECUTIVE EDITOR Cindy Goodaker, (313) 446- 0460 or [email protected] for the reporting period from Jan. there’s an emergency manager, but munications Inc., which has con- tributing to campaigns. MANAGING EDITOR Jennette Smith, (313) 446- 1-July 21. Duggan and an indepen- it’s a testament to the fact that peo- ducted polls for Turnaround Detroit, Foster also cautioned against be- 1622 or [email protected] MANAGER, DIGITAL CONTENT STRATEGY Nancy dent political action committee ple in general understand that this the PAC supporting Duggan. lieving that the issue is as cut-and- Hanus, (313) 446-1621 or [email protected] supporting him received signifi- is an inflection point in Detroit’s “(They’ve raised) a lot more dried as suburban white vs. urban MANAGING EDITOR/CUSTOM AND SPECIAL PROJECTS Daniel Duggan, (313) 446-0414 or cant financial support from the history,” said Sheila Cockrel, a for- money than anybody else raised,” black money. [email protected] business community and its lead- mer Detroit City Council member and he said. “You get guys like Tom “As much as people want to SENIOR EDITOR/DESIGN Bob Allen, (313) 446- 0344 or [email protected] ers, while some of the biggest founder of Crossroads Consulting Barrow, Lisa Howze, Krystal Crit- make the comparison, negative as- SENIOR EDITOR Gary Piatek, (313) 446-0357 or sources of campaign cash for Group, a Detroit government rela- tendon saying they aren’t taken se- persions about suburban money, [email protected] WEB EDITOR Kristin Bull, (313) 446-1608 or Napoleon were labor unions. tions and advocacy company con- riously. That’s because they the African-American, Chaldean, [email protected] tracted by the Detroit Regional Cham- haven’t raised enough money.” Arabic and Latino community of WEST MICHIGAN EDITOR Matt Gryczan, (616) 916- 8158 or [email protected] ber, which has endorsed Duggan. Howze is a former state repre- business leaders and economic in- DATA EDITOR Brianna Reilly, (313) 446-0418, Outpacing other hopefuls Duggan, 55, had $97,983 remain- sentative; Crittendon is former fluencers primarily don’t live in [email protected] WEB PRODUCER Norman Witte III, (313) 446- Duggan — who launched a ing in his campaign war chest at corporation counsel for the city. the city of Detroit, either,” he said. 6059, [email protected] write-in campaign after the Wayne the end of the filing period. “They contribute to these cam- EDITORIAL SUPPORT (313) 446-0419; YahNica County Circuit Court and the Michi- Napoleon, 57, reported $92,044. paigns as well.” Crawford, (313) 446-0329 The suburban divide NEWSROOM (313) 446-0329, FAX (313) 446- gan Court of Appeals booted him off “Comparing Team Duggan to 1687 TIP LINE (313) 446-6766 the primary election ballot— out- Team Napoleon (including pro- Suburban money has long been Independent PACs raise money REPORTERS paced Napoleon in the pre-primary Napoleon PAC Detroit Forward), important to elections in Detroit, Jay Greene, senior reporter: Covers health care, insurance, energy utilities and the environment. reporting period, collecting about Duggan has about a 4-to-1 money where the U.S. Census Bureau esti- Turnaround Detroit has raised (313) 446-0325 or [email protected] $1.17 million in campaign contri- advantage,” said Rich Robinson, mates there is a per-capita income $1.21 million so far, including Amy Haimerl, entrepreneurship editor: Covers entrepreneurship, second-stage companies and butions compared with Napoleon’s executive director of the Michigan of $15,261, a median household in- $250,000 each from Penske Corp. small business. (313) 446-0416 or $606,000, according to campaign fi- Campaign Finance Network, a cam- come of $27,861 and where 36.2 per- founder Roger Penske and the [email protected] nance reports. Duggan wasn’t eli- paign finance watchdog, in an cent of residents live below the company itself, according to Chad Halcom: Covers litigation, higher education, non-automotive manufacturing, defense gible for the ballot because he filed email to Crain’s. “As a write-in, poverty level. Wayne County campaign finance contracting and Oakland and Macomb counties. nominating petitions two weeks Duggan’s got a steep climb in front In short, many Detroiters don’t documents. Peter Karmanos Jr., (313) 446-6796 or [email protected] Tom Henderson: Covers banking, finance, before he’d been a registered De- of him, but all that money sure have the disposable income to do- founder of Detroit-based Com- technology and biotechnology. (313) 446-0337 or puware Corp. [email protected] troit voter for a year as required greases the skids.” nate to political candidates, said , also contributed Kirk Pinho: Covers real estate and the city of by city charter. As of Thursday afternoon, the Eric Foster, president of Troy- $100,000 to Turnaround Detroit, as Detroit. (313) 446-0412 or [email protected] Bill Shea, enterprise editor: Covers media, “If Mr. Duggan were on the ac- only other mayoral candidates based political consulting firm Fos- did Detroit-based PVS Chemicals advertising and marketing, the business of sports, tual ballot, it would equate to a who had submitted their pre-pri- ter McCollum White & Associates, Inc. and Detroit-based Caidan Man- and transportation. (313) 446-1626 or [email protected] slaughterhouse,” said Steve Hood, mary campaign finance reports which is advising mayoral candi- agement Co., a health care human Nathan Skid, multimedia editor: Also covers the a Detroit political consultant. were Tom Barrow, who reported date Fred Durhal Jr. resources, information systems food industry and entertainment. (313) 446-1654, [email protected] Eighty percent ($950,000) of Dug- total contributions and other re- “If the people in the city don’t and claims processing manage- Dustin Walsh: Covers the business of law, auto gan’s campaign committee contri- ceipts of $35,340 during the report- have the money, you have to get it ment company whose CEO is suppliers and steel. (313) 446-6042 or [email protected] butions came from suburban ing period and $170,979 in from the suburbs. If one candidate David Cotton, also president and Sherri Welch: Covers nonprofits, services, retail donors, while the remaining 20 per- fundraising this election cycle; has it, they all have to have it until CEO of Detroit-based Meridian and hospitality. (313) 446-1694 or [email protected] cent ($235,000) came from city resi- Herman Griffin III, a lawyer and Detroit turns around again,” he Health Plan. LANSING BUREAU dents, according to Bryan Barnhill, minister who reported $860 in said. “There really just aren’t that Detroit Forward has raised Chris Gautz: Covers business issues at the Capitol Duggan’s campaign manager. campaign contributions; and many potential donors that live $70,250. Its largest donors are Unit- and utilities. (517) 403-4403 or [email protected] Barnhill also said in an email to Greenwich Park neighborhood as- here. That’s the problem, that’s the ed Food and Commercial Workers Lo- ADVERTISING Crain’s that many of the suburban sociation president Walter Cole, sad truth.” cal 876 ($25,000); Shreveport, La.- SALES INQUIRIES (313) 446-6052; FAX (313) donors own Detroit businesses. who reported $1,297 in campaign Foster said most “regular rank- based J.C. Fodale Energy LLC; and 393-0997 SALES MANAGER Tammy Rokowski Bryan Peckinpaugh, a contributions. Barrow is an ac- and-file residents” of Detroit — Wayne Wheeler, CEO of Detroit- SENIOR ACCOUNT EXECUTIVE: Matthew J. spokesman for Napoleon, said in countant who has run unsuccess- those who don’t own a company, based Data Consulting Group, which Langan an email that 79 percent ($479,000) fully for mayor in three previous aren’t part of one’s leadership or provides outsourcing and manage- ADVERTISING SALES Christine Galasso, Jeff Lasser, Dale Smolinski, Sarah Stachowicz of Napoleon’s campaign commit- elections. aren’t part of the “political/gov- ment consulting services. CLASSIFIED SALES Angela Schutte, manager, tee funding came from suburban Strong fundraising is “why Ben- ernmental beltway of Southeast- Kirk Pinho: (313) 446-0412, (313)-446-6051 GENERAL MANAGER/BUSINESS DEVELOPMENT donors, compared with 21 percent ny Napoleon and Mike Duggan are ern Michigan” — participate in [email protected]. Twitter: AND EVENTS Elizabeth Buscher ($127,000) from city residents. serious candidates,” said Steve the electoral process largely by @kirkpinhoCDB DIRECTOR, INTEGRATED MARKETING Eric Cedo SALES PROMOTION MANAGER Karin Pitrone EVENTS MANAGER Kacey Anderson SENIOR PRODUCER FOR DIGITAL/ONLINE PRODUCTS Pierrette Dagg MARKETING ARTIST Sylvia Kolaski SALES SUPPORT Suzanne Janik, YahNica Crawford Mars: PRODUCTION MANAGER Wendy Kobylarz CEO starts VC firm to target shopper marketing CUSTOMER SERVICE PRODUCTION SUPERVISOR Larry Williams ■ From Page 1 MAIN NUMBER: Call (877) 824-9374 or write [email protected] make an intellectual investment, other new media to collect data tisers to make a targeted pitch for to be in Detroit. SUBSCRIPTIONS $59 one year, $98 two years. not a financial investment,” said from shoppers to better under- their dollars. “There’s really an exciting op- Out of state, $79 one year, $138 for two years. Outside U.S.A., add $48 per year to out-of-state Barnett. “It will serve as a reten- stand their buying habits. Griffon’s first deal happened to portunity to build a great company rate for surface mail. Call (313) 446-0450 or tion program for us. As the portfo- That investment of time and be an exception to its rule of in- in Michigan,” said Goodman, the (877) 824-9374. SINGLE COPIES: (877) 824-9374 lio companies succeed, they’ll money paid off during the reces- vesting in shopper-marketing firm’s sole employee. “It will be ex- REPRINTS: (800) 290-5460, ext. 125; share in the financial reward.” sion. As traditional advertising technology. It, too, was with DVP, citing to be part of what’s going on (717) 505-9701, ext. 125; or lindsay.wilson @theygsgroup.com Griffon Ventures will seek out and marketing were hammered, in an investment of $750,000 in De- in Southeast Michigan.” TO FIND A DATE A STORY WAS PUBLISHED: companies focused on technolo- shopper marketing was a rare ad troit-based Chalkfly, which sells of- “They see what’s going on here (313) 446-0406 or e-mail [email protected] gies that can improve shopper sector that saw growth. fice and janitorial supplies online. and they still want to get in on the CRAIN’S DETROIT BUSINESS IS PUBLISHED BY CRAIN COMMUNICATIONS INC. marketing, which involves cam- The companies Griffon Ven- Griffon is in Chicago, but plans ground floor,” Adox said. CHAIRMAN Keith E. Crain paigns that target consumers who tures will invest in can be seen as to move here later this year. It was Griffon initially will share office PRESIDENT Rance Crain are already shopping in a particu- evolutionary heirs of those early TREASURER Mary Kay Crain founded in Chicago partly because space with Mars in its headquar- Executive Vice President/Operations lar store rather than campaigns tech ventures, especially compa- the city is a hub of advertising and ters. Goodman has met with offi- William A. Morrow Executive Vice President/Director of Strategic trying to lure shoppers in. nies whose technologies promise marketing activity — and partly be- cials of Bedrock Real Estate Services Operations Chris Crain Shopper marketing is increasing- to make shopper marketing faster, cause that’s where Goodman lives. LLC, Dan Gilbert’s real estate arm, Vice President/Production & Manufacturing Dave Kamis ly smart-app driven, and smart-app easier and better. Goodman to find space downtown. Vice President/Chief Information Officer developers are a strength of the “Their target-marketing focus is worked at Mars If Griffon likes living in the D, Paul Dalpiaz downtown tech scene in general and a good one,” said Jim Adox, man- as manager of that could result in a much bigger Vice President/Chief Human Resources Officer Margee Kaczmarek the Madison Building in particular. aging director of the Ann Arbor of- digital shopper move for Mars, which had 2012 G.D. Crain Jr. Founder (1885-1973) Mars, founded by Barnett’s moth- fice of Madison, Wis.-based Venture marketing be- revenue of $38.7 million. The Mrs. G.D. Crain Jr. Chairman (1911-1996) EDITORIAL & BUSINESS OFFICES: er, Marilyn, in 1973, has been a pio- Investors LLC. “People have realized fore becoming agency’s lease expires in 2016. 1155 Gratiot Ave., Detroit MI 48207-2732; neer of shopper marketing. In 1997, that blanket marketing isn’t effec- director of digi- “We’ll look at all our options,” (313) 446-6000 Cable address: TWX 248-221-5122 AUTNEW DET it created a customer-loyalty pro- tive any more. It’s about one-on- tal strategy for Barnett said. “Right now, we’re CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is gram for Farmer Jack, then a major one marketing, now, micro-seg- Leo Burnett. He looking at small spaces downtown published weekly, except for a special issue the third week of August, and no issue the third week of grocer in metro Detroit, allowing ments and hyper-local marketing.” was Barnett’s for Griffon. We have an open dia- December by Crain Communications Inc. at 1155 the chain to track customers’ buy- Adox recently joined Detroit Ven- choice to head logue with Bedrock. We’ll explore Gratiot Ave., Detroit MI 48207-2732. Periodicals Goodman postage paid at Detroit, MI and additional mailing ing habits and to tailor promotions. ture Partners LLC in a $2 million in- Griffon. being downtown in a small way offices. POSTMASTER: Send address changes to While a consumer loyalty pro- vestment round in Detroit-based Given Mars’ 40-year history first and see if it makes sense to CRAIN’S DETROIT BUSINESS, Circulation Department, P.O. Box 07925, Detroit, MI 48207- gram may seem ubiquitous now, it UpTo Inc., an app-based company here, the entrepreneurial activity move forward in a big way.” 9732. GST # 136760444. Printed in U.S.A. was a cutting-edge advance then. that has developed an interactive Tom Henderson: (313) 446-0337, Entire contents copyright 2013 by Crain here and the cheaper of cost of do- Communications Inc. All rights reserved. The company also launched a divi- social calendar allowing friends to ing business, Goodman said, it [email protected]. Twitter: Reproduction or use of editorial content in any sion to create websites, CDs and share schedules easily and adver- quickly became clear Griffon ought @tomhenderson2 manner without permission is strictly prohibited. 20130805-NEWS--0026-NAT-CCI-CD_-- 8/2/2013 5:11 PM Page 1

Page 26 CRAIN’S DETROIT BUSINESS August 5, 2013 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF JULY 27-AUG. 2

After a 10-month stint on the job, Anthony Neely an- American Axle’s ‘BIG AIR’ CATCHES TOP SPOT nounced Friday he was re- Ex-Axletech Matthew Cain said signing to launch a new publishing company, Neely Brush Park is always Richard E. a good place to take Media Group LLC. photos. His “Big air in The first book published Brush Park” image of CEO in swing by his company will be The Dauch dies a BMX rider was the Activist Entrepreneur, an au- judges’ pick as the tobiography by Walt Douglas, ichard E. Dauch, ex- latest winner in the Avis Ford chairman and for- ecutive chairman Summer in the City mer president of New Detroit R and co-founder of photo contest. for golf title American Axle & Manufactur- “Great action shot, Inc. Neely contributed to the book, which also includes a ing Holdings Inc., died Fri- fantastic movement, and it’s nice and crisp,” Crain’s ormer Axletech Inter- in which she served in vari- foreword by Edsel Ford II. day of an Multimedia Editor Nathan Skid said. “This photo national Chairman ous roles at General Motors Linda Vinyard has been undisclosed represents what the X Games are supposed to be about.” F and CEO Mary Petro- Co., Chrysler Group LLC, Allied named assistant press sec- illness, the Cain, 30, lives in Midtown and works at Stella Good Coffee vich qualified last week for Signal and Dura Automotive retary for Bing, following company in the Fisher Building. His prize is a $50 gift certificate to National Coney Island. the 2013 USGA Senior Systems. Neely’s departure. confirmed. Women’s Amateur Champi- Dauch, To enter the summerlong contest, go to crainsdetroit.com onship. 71, co- /photocontest and enter by noon Monday. This week’s prize: six tickets for D:hive tours (each for two people). A Petrovich, 50, shot a 77 in Longtime Detroit lawyer Credit Suisse sells founded the grand prize — to be awarded after Labor Day — is a stay the qualifi- joins D.C. advisory firm Customized Fund group Detroit- at the Townsend Hotel in Birmingham and a brick paver er at Detroit based axle Veteran Detroit lawyer Dauch along the Detroit RiverWalk. Golf Club. Zurich-based Credit Suisse supplier in Nicole Lamb-Hale has joined Group AG (NYSE:CS) has She will 1993 as part of an invest- reporter Bisi Onile-Ere, 34, courage kids to do chores. Madeleine Albright’s Wash- sold its New York City- compete ment group that acquired was named Al Jazeera Ameri- Ⅲ Bloomfield Township- ington, D.C., based Customized Fund In- with more five General Motors plants in ca’s first Detroit bureau based Princeton Enterprises advisory vestment Group to Chicago- than 100 se- Michigan and New York. correspondent. The chan- LLC bought the Grand Park firm. based Grosvenor Capital nior women Dauch’s son, David nel is to launch Aug. 20. Centre complex in Detroit Lamb- Management LP. The deal, golfers from Dauch, took over as CEO of from the Detroit Police and Hale joined signed Thursday, is expect- around the the company last August. Fire Retirement System for a Petrovich Albright ed to close in the fourth U.S. on The elder Dauch remained COMPANY NEWS reported $4-$5.5 million. Sept. 21-26 at Cordevalle Golf Stonebridge quarter. The sale price was as executive chairman un- Ⅲ GKN Driveline and GKN Ⅲ United Methodist Retire- Club in San Martin, Calif., Group in not disclosed. til his death. Sinter Metals will spend $5.1 ment Communities Inc. and for the amateur champi- May after Grosvenor has about 260 million on a new regional the Area Agency on Aging 1-B onship. stepping employees and about $23 bil- Lamb-Hale headquarters on the site of launched the Huron Valley down from lion under management. The Crain makes changes at Julie Massa of Holt and the former Showcase Cine- PACE program in Ypsilanti Joan Garety, a Michigan Golf her position as assistant sec- Customized Fund Invest- retary of commerce for man- WRN, Plastics News mas theater in Auburn Hills. Township to provide an al- Hall of Fame inductee from ment Group has about 140 ternative to nursing home ufacturing and services at Ⅲ Crain Communications Ⅲ Bloomfield Hills-based Ada, also qualified for the employees and about $18 bil- care for low-income seniors the U.S. Department of Com- Inc. has shut down print Penske Automotive Group Inc. tournament. lion under management. living independently. merce, International Trade Ad- publication of Detroit-based will acquire commercial Petrovich, now a local op- The group has helped Ⅲ Faced with the expect- ministration. She previously Waste & Recycling News ef- vehicle and parts distribu- erating executive for New launch and run several of ed suspension of shortstop served as deputy general fective today and will move tor Western Star Trucks Aus- York City private equity Michigan’s investment Jhonny Peralta, the Detroit counsel for the department. Plastics News tralia for about $200 million. firm The Carlyle Group, didn’t funds. It manages the $95 from Akron, Tigers obtained infielder In her new role, she’ll Ohio, to Detroit. Ⅲ The M1 Rail effort play college golf, unlike the million Venture Michigan Jose Iglesias from the serve as a liaison between WRN will continue as a awarded the contract to other two qualifiers. Instead, Fund I, the $120 million VMF Boston Red Sox in a three- U.S. regulators and clients digital product as the com- build the Woodward Av- she was a starting infielder II, the $109 million 21st Cen- team, seven-player trade in looking to make foreign in- pany seeks a buyer for its enue streetcar loop to the and captain for the University tury Investment Fund and $295 Alameda, Calif.-based civil which Tigers outfielder Avi- vestments. assets, which include three sail Garcia went to the Chica- of Michigan softball team. million in the three Michi- construction firm Stacy and Lamb-Hale began her ca- profitable conferences. go White Sox and pitcher However, she was the gan Growth Capital funds that Witbeck Inc. Detroit’s White reer in 1991 at Detroit-based Some WRN employees Brayan Villarreal was sent to first female caddie at are co-managed with Farm- Construction Co. was sub- Dykema Gossett PLLC, work- will join Plastics News, al- the Red Sox. Franklin Hills Country Club in ington Hills-based Beringea contracted for the project. ing her way up to chair its though there were job cuts Ⅲ A U.S. Bankruptcy Court Farmington Hills as a teen. LLC. Ⅲ A U.S. District Court bankruptcy practice. She left in Detroit and Akron. WRN judge overseeing the bank- “I didn’t start playing golf The group will be re- judge removed Metavation the firm in 2003 to become a Publisher Brennan Lafferty ruptcy of Minneapolis- until after grad school,” she managing partner at Foley & named the GCM Customized becomes publisher of PN. LLC Chairman George said. “Being a caddie grow- Investment Group and will re- based Residential Capital Lardner LLP in Detroit. Hofmeister and investment LLC said he won’t disqualify ing up, though, did give me main in New York. Kelly adviser Bernard Tew as key lawyers and advisers a leg up on how to read Williams will continue as ON THE MOVE trustees of Southfield-based from participating in the greens.” Wanted: Another press president of the group. Ⅲ Detroit-based Michigan Metavation’s defined bene- case. Detroit-based Ally Fi- Petrovich earned an engi- There will be no change in secretary for Bing Community Resources named fit plan. Metavation and nancial Inc. will pay $2.1 bil- neering degree from UM management of the Michi- Jill Ferrari, former director parent company Revstone lion to creditors in return and an MBA from Harvard Detroit Mayor Dave Bing gan funds. of community development Industries LLC are in Chap- for immunity from awsuits. Business School before a 30- is losing his press secretary “It will be business as for the Wayne County Eco- ter 11 proceedings. year career in automotive — again. usual,” said Williams. nomic Development Growth Ⅲ The Detroit-based law OTHER NEWS firm Butzel Long added 13 Engine, as CEO. Ferrari, 41, Ⅲ Detroit Detention attorneys in Washington, The succeeds Shamyle Nesfield, Center, the new Detroit Po- D.C., from its joint venture director of education and lice Department central de- Butzel Long Tighe Patton, outreach programs. tention center, opened at which no longer will prac- Ⅲ R.L. Polk & Co. Presi- the site of the former Mound BEST FROM THE BLOGS dent Tim Rogers and CFO tice separately. Correctional Facility. Ⅲ The Detroit Lions signed READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS Michelle Goff announced Ⅲ Detroit released a re- they would leave the South- a multiyear deal with the quest for proposals seeking field-based automotive data Dan Gilbert-owned paperless a five-year agreement for Unclear on Obamacare? Go online Coffee company seeking space giant, the first major per- digital ticket company Veri- residential solid waste and sonnel moves since Polk tix LLC, the first National recycling pickup. Small businesses Frank Lanzkron- was acquired by Engle- Football League team to do Ⅲ The U.S. Department of have access to plenty of Tamarazo, owner of “ “ wood, Colo.-based IHS Inc. so. Veritix replaces Ticket- Energy gave key approval information on how to Ferndale-based master, which will continue comply with the health Chazzano Coffee LLC, Ⅲ Jack Miner was named for a $730 million physics care insurance employer said he is looking for a director of the Venture Cen- to sell Lions tickets in the research project, the Facili- mandate. The Obama 4,000-square-foot space ter in the technology trans- secondary market. ty for Rare Isotope Beams, at administration launched with plenty of parking fer office at the University of Ⅲ The Detroit-based ven- Michigan State University. an online resource for somewhere on the Michigan. Miner, formerly a ture capital firm Detroit Ven- how the health care law outskirts of downtown startup specialist in the ture Partners LLC announced affects businesses. Ferndale. tech transfer office, re- that it led an investment OBITUARIES places Jim O’Connell, now di- round of $1.5 million in Ⅲ Michael Martone, a for- Jay Greene’s “Health Business Detroit” blog can” be Nathan Skid’s Detroit-area restaurant” blog, “Table ChoreMon- found at www.crainsdetroit.com/greene Talk,” can be found at www.crainsdetroit.com/skid rector of tech transfer at Cincinnati-based mer Oakland County District the University of Miami. ster, a developer of smart Court judge, died Aug. 1. He Ⅲ Former WDIV-Channel 4 apps that help parents en- was 66. DBpageAD_DBpageAD.qxd 8/2/2013 4:42 PM Page 1

Today’s sound represents not just successors to Motown, Eminem, Jack White and Kid Rock, but the branding of powerful Thursday, Sept. 26 companies, and the technology being created for the new 11 am. - 4 p.m. Cobo Center, Detroit generation of in-car entertainment – and how money will be made. To register for this event, please visit Join the app developers, auto industry managers and music and crainsdetroit.com/soundbiz entertainment executives from metro Detroit and both coasts. & ARE PLEASED TO PRESENT For a distinctive only-in-Detroit experience, the SoundBiz conference will conclude with the opportunity to attend the annual urban celebration, Crain’s House Party. This Get perspectives on the role music will play in the future event pulls together urban residents with movers-and- development of in-car infotainment systems and case studies on shakers to explore the best the city has to offer. branding of the Detroit sound. Thursday, Sept. 26 | 4 p.m. | Cobo Center, Detroit

Saad Jeff Charles Paul Patrick Jake Chehab Castelaz Goldstuck Jacobs Anderson Sigal President and President, CEO, President, Anderson Livio CEO, Chrysler Elektra Records Touchtunes JacApps Inc. Economic Group Radio

TOPICS What Detroit The next move for New business App development Economic Integrating branding meant large record labels models in music meets the impact of music music, for Chrysler that investors will automaker in Detroit technology and look at automotive

PRESENTED BY PREMIER SPONSOR MAJOR SPONSOR LOCATION SPONSOR DBpageAD_DBpageAD.qxd 7/15/2013 3:55 PM Page 1

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