Tech Hustles Harder

20140505-NEWS--0001-NAT-CCI-CD_-- 5/2/20147:36PMPage1 ©Entire contentscopyright2014byCrainCommunicationsInc.Allrightsreserved Social mediawon’t likeit New crowdfundingrules: leg uponBritain’s bigleagues Local soccerownergetsa plan islockedandloaded Auto supplier’s newbusiness from Thursday. at $7.74onFriday,up$1.67 the stockplan. son’s departure;heopposed company generallysincehis perceived deteriorationofthe expressed concernsabouta Commission the company saidinafilingwith ignation inJanuary2013.The man oftheboarduntilhisres- son, Class Bshares.AndTodd’s owned about33percentofthe and Herrickfamilytrusts nonprofit Former CEO air-conditioning industries. and residentialspecialty the commercialrefrigeration facturer ofcompressorsfor is anAnnArbor-basedmanu- shares votingagainstit. and justover580,000ofClassA voting againsttheproposal 1.5 millionsharesofB proved theconsolidation,with Class Bstocklastweekap- seh’s formerClassAstockand classes ofstock. plan thatconsolidateditstwo approve arecapitalization at anannualmeetingvotedto cent Fridayaftershareholders shares closedupalmost28per- shareholders OKrecapplan Tecumseh stockupafter

NEWSPAPER www.crainsdetroit.com Vol.30,No.18 This JustIn Page 3 Shares ofTecumsehclosed Tecumseh (Nasdaq:TECU) Shareholders ofTecum- Tecumseh ProductsCo U.S. SecuritiesandExchange Kent Herrick Herrick Foundation that ToddHerrick — ChadHalcom Todd Herrick , waschair- .’s new

, the ISTOCK PHOTO ISTOCK for “DetroitIndustry,”whichhave — andKahlopursuedherownart. on fourcourtyardwallsattheDIA erable “DetroitIndustry”murals here whileRiveracreatedtheven- and fellowartistFridaKahlospent the timeDiegoRiveraandhiswife collectors aresteppinguptohelp. stage. exhibit thatnoothermuseumcould tute ofArts his wife,FridaKahlo,wasinDetroitworkingonherownart. While DiegoRiverawasdoingpreliminarydrawingsofDetroitIndustry (above), exhibit oftheirtimeinDetroit DIA tostageRivera-Kahlo Rivera’s preparatorydrawings The exhibitionwillhighlight And othermuseumsandprivate A yearfromnow,the The amount, Detroit PublicSchools organizations suchas municipalities and residences andsomelarge delinquent, including customer accountsthatare Detroit businesses inthecityof of residentsand from delinquentaccounts the totalunpaidbalance The CRAIN’S DETROITBUSINESS B $142.5 Michigan residents–in Y percentage more than120 S Department and Sewerage the DetroitWater Roughly the percentage plans tolaunchamajor the areaservedby miles –wholivein HERRI 1,079 square 43 communities and covering in millions 50 W of ELCH of total Detroit Insti- , of aired longbeforeU.S.BankruptcyJudgeSteven meeting thisweek. officials expecttohavetheirownmediator comb andWaynecountieslastweek.Detroit meetings withnegotiatorsforOakland,Ma- C water challenges Drip bydrip:Region’s Bad bonds, latebillsamong DWSD problems U.S. DistrictJudgeSeanCoxheldseparate to theDIA. than $21,000atthetime,according which woundupcostingjustless art atthattime,”Bealsaid. tant artistsintheworldofwestern regarded asoneofthemostimpor- pivotal timeforbothartists. 1932 throughMarch1933,wasa DIA DirectorGrahamBealsaid. shown forthefirsttimeinDetroit, created whilelivingherewillbe the centerpieceofexhibition. not beenshownfor30years,willbe Edsel Fordpaidforthemurals, “When Riverawashere,he That creativeperiod,fromApril And manyoftheworksKahlo part ofbankruptcyproceedings,arecon- fidential. authority forSoutheastMichigan? broker adealtocreateregionalwater an federalmediators,orthestate,help MAY 5–11,2014 COURTESY OFDETROITINSTITUTEARTS The talks,court-orderedmediationas But suburbanconcernshavebeen CRAIN’S DETROITBUSINESS B Y C HAD See DIA,Page29 H ALCOM tech hustles harder LEARN MORE&GETYOUR TICKETAT TECHWEEK.COM/DETROIT INAUGURAL TECHWEEK DETROITCOMING INMAY troit WaterandSewerageDepartment consumer waterthatflowedjust15yearsago. and it’sshippingabout50percentofthecity now junkstatus,itsinfrastructureisintatters Great LakesWaterAuthority a proposed40-yeardealfornewregional ban leaderstoidentifythechiefconcernsover uments andinterviewedahalf-dozensubur- said inmarketingmaterials. land CountyExecutiveL.BrooksPatterson Rhodes madetheApril17mediationorder. Some highlights:Thesystem’sbondsare Crain’s “No dealisbetterthanabaddeal,”Oak- reviewed hundredsofpagesdoc- PIERRETTE DAGG/CRAIN’SDETROITBUSINESS to managethe See Water,Page30 $2 acopy;$59year .

De- MAY 19-25 MAY ® 20140505-NEWS--0002-NAT-CCI-CD_-- 5/2/2014 4:11 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS May 5, 2014

MICHIGAN BRIEFS A biz plan for fashion crisis: What ed to make President and CEO John Bryant the new board chair- to do with gowns after graduation Design: It’s more than just a pretty face – it’s jobs man, succeeding James Jenness, If you’ve ever pondered how to beginning July 1. Jenness will stay get a second wearing out of a wed- “If you ask me, ‘Do you think a designer is more and design is about meeting the needs of the cus- on the board as a nonexecutive di- ding gown or prom dress, consider important than an engineer?’ the answer is yes.” tomer. The more you do that, the more you’re able to rector. the challenge presented by the That’s a bold statement coming from George Erick- increase your margin on the price and make a prof- Ⅲ Grand Valley State University es- graduation gown. MLive.com re- cek, senior regional analyst at the Kalamazoo-based it,” Erickcek said. timates that it has an annual eco- ported last week on a Grand W.E. Upjohn Institute for Employment Research. But he The ability of design thinking to bolster West nomic impact of $730.1 million on Rapids businessman’s ambition to studies West Michigan’s economy, so hear him out. Michigan’s manufacturing sector has more economic Kent, Ottawa and Muskegon coun- send 1 million gowns back to “I see designers as a means to keep manufacturing development groups paying attention to design, he ties, according to an annual report school, in a manner of speaking. here,” Erickcek said in a MiBiz report. In the global said, citing The Right Place Inc.’s recent inclusion of de- issued last week during a meeting Seth Yon founded Greener Grads economy, manufacturers cannot base their business- sign as a foundation of the region in its strategic plan. of the board of trustees. to “recover, reuse and repurpose es on competing on price alone, he said. Having Southwest Michigan First in Kalamazoo also leveraged Ⅲ The antitrust division of the graduation gowns through part- strong design capabilities is a way to hedge against the region’s design strengths to attract Newell Rubber- U.S. Justice Department cleared Ok- nerships with Goodwill Industries becoming just another commodity producer. maid Inc. to locate its design center at Western Michigan lahoma City-based Chesapeake En- and a growing number of universi- “Your product has to be wanted by the customer, University’s Business and Technology Research Park. ergy Corp. and Calgary, Alberta- ties.” More than 5 million gowns based Encana Corp., two of the are worn every year — presum- nation’s largest natural gas pro- made The Build 100 list of sus- ducers, of trying to cheat the state ably all by students, given the ap- tained-growth companies as com- parent limitations with accessoriz- during shale drilling auctions, CORRECTIONS piled by Inc. Magazine: Transnation Bloomberg News reported. The ing. Yon notes that the gowns are Title Agency of Michigan and Open Ⅲ Because of incorrect information provided to Crain’s, an April 28 state is proceeding ahead with bid- made mostly of polyester and are Systems Technologies Inc., both People item should have said Betty Chu, M.D., is a former associate rigging charges against both com- not biodegradable. The recycled based in Grand Rapids; Lansing- professor of obstetrics and gynecology at the Oakland University William panies. gowns would be sold for $20 to $30. based SWAT Environmental; and Ann Beaumont School of Medicine in Rochester Hills. Ⅲ U.S. News & World Report last Arbor-based Underground Printing. Ⅲ A story on Page 1 of the April 28 issue, “Biz tied to Libya wins air- week said Kalamazoo is one of The Inc. list honors companies of port deal,” should have said Alfred Glancy III, chairman of the Wayne eight cities with underrated beer MICH-CELLANEOUS 85-999 employees that have ex- County Airport Authority, abstained from a vote that awarded a landscap- scenes. The magazine cited the six Ⅲ The Right Place Inc., the Grand panded employment in each of the ing care contract to Rentokil Initial PLC. The story said he voted against breweries that were added in 2013 Rapids area’s economic develop- past five years. the contract. and the city’s being the home of ment organization, announced Ⅲ The Ella Sharp Museum of Art Ⅲ The age for John Bommarito, a finalist for the General and In- Bell’s Brewery Inc. Then there’s the three business expansions last and History, with help from the House Counsel Awards in the category of $10 million to $100 million, obvious reason: The news media week that it said would bring 446 Michigan Department of Corrections, should have been given as 36. like to rank beer. jobs and $52.1 million in new in- plans to create a prison museum Ⅲ A story on Page 7 of the April 28 issue should have said Dalton & vestment over the next four years: within a portion of the Southern Find business news from Tomich PLC is based in Detroit, not Bloomfield Hills. INglass, an Italian parts supplier, Michigan Correctional Facility that around the state at crainsdetroit which would be new to the area; a closed in 2007, the Jackson Citizen .com/crainsmichiganbusiness. new location for NOVO 1 Inc., a County-based Herbruck’s Poultry eration in Saranac near Grand Patriot reported. Sign up for Crain's Michigan Texas-based call center operator, Ranch, the state’s largest egg pro- Rapids. Ⅲ The board of directors of the Business e-newsletter at crains which plans to move; and Ionia ducer, which plans to open an op- Ⅲ Four Michigan companies Battle Creek-based Kellogg Co. vot- detroit.com/emailsignup.

at ComstockJune 24 Inn Conference Center

I-69 Automotive Suppliers Forum What can you do today to stay ahead of the curve?

Tuesday, June 24, 5:30-8:00 PM Comstock Inn Conference Center, 300 E. Main St., Owosso, MI

Nigel Francis, Glenn Stevens, ~Michigan’s Comprehensive Strategic Road Map to Promote, Retain and Grow MEDC MICHauto the Automotive Industry in Michigan Keynote presentation by Nigel Francis, Michigan Economic Development Corporation (MEDC)

~“Ahead of the Curve” Panel Discussion featuring Nigel Francis (MEDC), Glenn Stevens (MICHauto and Detroit Regional Chamber), John Adrich (Machine Tool & Gear), Tom Manganello (Warner Norcross & Judd) and Kurt Brauer (Warner Norcross & Judd)

~Q&A and Networking with I-69 automotive supply executives and automotive-focused John Aldrich, Tom Kurt Brauer, attorneys Machine Manganello. Warner Tool & Gear Warner Norcross Norcross & Judd & Judd

Who should attend? Presidents, CEOs, CFOs, Purchasing Directors, Sales Directors and other senior executives. Auto suppliers and other manufacturers welcome. Register Now! Space is limited. This is a complimentary event. Cocktails and hors d’oeuvers included. http://wnj.com/i69Auto2014 or contact Lori Tuttle Measure at [email protected] 616.752.2492

A BETTER PARTNERSHIP® WNJ.com Macomb County Southﬁeld Midland Lansing Grand Rapids Holland Muskegon Kalamazoo 20140505-NEWS--0003-NAT-CCI-CD_-- 5/2/2014 7:12 PM Page 1

May 5, 2014 CRAIN’S DETROIT BUSINESS Page 3 A foot in the door to England’s big leagues Inside

Derby County day (televised at 2:30 p.m. in the Derby County players (black U.S. by BEin Sports), and could earn shorts) — owned it by winning the final at Wembley by a U.S. Stadium in London on May 24. in playoffs, may consortium headed by a “The winning club is guaran- Rochester teed over $200 million in contrac- score a windfall businessman — tually obligated income,” said Ap- have a shot at pleby, a former Detroit Pistons BY BILL SHEA making it to the executive who is Derby County F.C. CRAIN’S DETROIT BUSINESS elite Premier Ltd.’s chairman. He fronted the League. group that paid $100 million — and Three playoff matches are all assumed $25 million in debt — for that stand between Derby County the club six years ago. and a guaranteed $200 million rev- COURTESY OF GENERAL SPORTS AND ENTERTAINMENT LLC Being on the cusp of possible What it’s like to live in a enue windfall. Premier League promotion vali- preneur Andy Appleby, has se- the elite Premier League and its lu- blighted neighborhood, Page 8 The English professional soccer dates the investment and on-field cured third place in the second-tier crative global television revenues. team in the East Midlands, owned turnaround plan made by the own- since 2008 by a U.S. consortium Football League Championship. And Derby will begin a playoff for headed by Rochester sports entre- that means a shot at promotion to the final promotion slot on Thurs- See England, Page 32 Company index These companies have significant mention in this week’s Crain’s Detroit Business: Two brothers acquire the family 5 Lakes Energy ...... 21 New crowdfunding AgriSight ...... 19 AT&T Michigan ...... 24 auto supply business and realize Business Leaders for Michigan ...... 24 Central Screw Products ...... 3 rules muddy biz Clean Energy Now ...... 25 they need a higher-caliber business Clean Water Action ...... 25 Consumers Energy ...... 21 Matt and Arnot Heller of Detroit Blight Authority ...... 9 use of social media Detroit Gun Works plan, so they take aim at guns Detroit Gun Works ...... 33 Detroit Institute of Arts ...... 1 Detroit Land Bank Authority ...... 15 BY CHRIS GAUTZ Double Action Indoor Shooting Center & Gun Shop . 33 CAPITOL CORRESPONDENT Draper Triangle Ventures ...... 7 DTE Energy ...... 21, 25 Crowdfunding was seen as a way to marry Engage Michigan ...... 25 the worlds of social media and venture capital, First Martin ...... 4 but the U.S. Securities and Exchange Commission Flash Delivery ...... 15 has issued new guidelines that largely ban so- FoodLab Detroit ...... 13 cial media from the relationship. Foster, Swift, Collins & Smith ...... 33 Michigan businesses that were planning to General Sports and Entertainment ...... 32 use sites like Facebook and GM Ventures ...... 17 Twitter to inexpensively get Up in Gibraltar Trade Center ...... 22 the word out that they are Harbour Results ...... 33 PROPOSED Henry Ford ...... 17 looking to raise capital for Herman Miller ...... 24 SEC RULES expansion projects or to get Howard & Howard Attorneys ...... 20 off the ground are now con- Ⅲ Companies Infused PR & Events ...... 15 taking part in sulting with attorneys and Jack Martin Worldwide ...... 13 crowdfunding trying to figure out their JGA ...... 22 must be U.S.- next steps. Loveland Technologies ...... 14 based. “It’s going to extremely Michigan Competitive Workforce Coalition ...... 24 Michigan Consumers for Healthcare ...... 23 Ⅲ Businesses are limit, if not completely arms Michigan Small Business Development Center . . . 33 close, the ability for busi- advised not to Michigan Venture Capital Association ...... 7 solicit for nesses to use social media,” BY DUSTIN WALSH MiQuest ...... 7 investors on said Thomas Coke, an attor- Orfin Ventures ...... 14 CRAIN’S DETROIT BUSINESS social media sites ney who works in business PishPosh TV ...... 14 because it could development for Grand Plastipak Holdings ...... 19 open the door to hen Matt and Arnot Heller ac- Rapids-based VerifyValid, Pure Detroit ...... 15 an SEC probe over quired the family auto supply busi- Revision Legal ...... 33 investment that which runs a business-to- ness from their father in 2010, the Right Choice Insurance Agency ...... 17 crosses state business payment service. W Rock Ventures ...... 16 lines. In 2012, President Barack business needed to adjust its sights. Obama signed the JOBS Roco Real Estate ...... 12 Ⅲ A company Then Detroit-based Central Screw Products Co. Inc. started off, SkySpecs ...... 13 Act, which created the pos- could raise a and still operates, as a supplier of machined suspension parts to Talmer Bank and Trust ...... 12 maximum of sibility for equity crowd- the heavy truck industry. The industry was going through an Tecumseh Brewing ...... 33 $1 million through funding, which opens up in- VerifyValid ...... 3 crowdfunding in a vestment opportunities for evolution, putting the screws to the supply chain. Costs were WDET 101.9 FM ...... 19 12-month period. those who previously were tight, and getting tighter. Weapons ...... 33 Ⅲ Securities not allowed to receive a re- The brothers Heller needed a new business plan with some purchased could quest to invest — their an- bankable firepower. They found one in guns. not be resold for nual income or net worth one year. was not considered large First, they needed to learn the lingo, learn about the gun Ⅲ The issuer has enough to be considered an manufacturing process and introduce themselves to key cus- Department index to file an annual accredited investor. tomers. report with the BUSINESS DIARY ...... 27 The SEC defines an ac- SEC and provide Part of the equation: outsourced labor. The Hellers continued CALENDAR ...... 28 it to investors. credited investor as some- a previous plan to transition a large portion of their truck parts one with a net worth of at CAPITOL BRIEFINGS...... 6 least $1 million, or who has machining to newfound partners in China and spent nearly two CLASSIFIED ADS ...... 29 income of more than $200,000 in the previous years launching a new division. KEITH CRAIN...... 8 two years. An unaccredited investor falls below OPINION ...... 8 those financial thresholds. See Guns, Page 33 PEOPLE ...... 28 But because the commission has been slow to enact the rules to allow crowdfunding to begin, RUMBLINGS ...... 34 Video: Learn more about how a supplier of parts for heavy trucks WEEK ON THE WEB ...... 34 developed a niche in the gun industry, crainsdetroit.com/video See Crowd, Page 33 ISTOCK PHOTO

State police ... or police state? THIS WEEK @ Tom Henderson weighs in on the new era of law enforcement on Belle Isle. Read his and other WWW.CRAINSDETROIT.COM staff blogs at crainsdetroit.com/blogs.

DAVID HALL/CDB 20140505-NEWS--0004-NAT-CCI-CD_-- 5/2/2014 5:57 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS May 5, 2014 2 Troy office buildings sell for $19.4M

BY KIRK PINHO port current through March 31. complex in Ann Arbor sold to Ann CRAIN’S DETROIT BUSINESS The Class A building was built Arbor-based Oxford Cos. LLC for in 2000 and is fully leased to Conti- $21.5 million. A New York City-based real es- nental Automotive Systems Inc., ac- Sovereign also owns the 171,000- tate investment trust has more cording to CoStar, which did not square-foot Long Lake Crossings than doubled the size of its Troy of- list asking rental rate information. office building at 1301 W. Long fice portfolio with the $19.4 million The second building, a 107,000- Lake between Coolidge and purchase of two buildings totaling square-foot Class B building at Crooks. Sovereign bought that 184,000 square feet last week. 1441 W. Long Lake, between building in 2009 from Chicago- It’s one of the largest office sales Coolidge Highway and Crooks, based Pearlmark Real Estate Part- in metro Detroit so far this year. sold for $8.4 million. ners LLC for $12.3 million, accord- Johns Creek, Ga.-based Piedmont The Long Lake Road building is ing to CoStar. Office Realty Trust Inc. sold the 84 percent leased. The largest ten- Piedmont also owns the 493,000- buildings to New York-based Sover- ants are Travelers Insurance Co. square-foot building at 150 W. Jef- eign Partners LLC, said Bill Harvey, (28,000 square feet); Rockwell Au- ferson Ave. in Detroit, and two senior vice president of office bro- kerage in the Farmington Hills of- tomation Inc. (25,000 square feet) buildings in Auburn Hills: the fice of Chicago-based Transwestern and Integrated Design Solutions LLC 120,000-square-foot Auburn Hills Investment Co., which represented (16,000 square feet). The average Corporate Center at 900 N. Squir- Piedmont. rent is $18.75 per square foot, ac- rel Road and the 210,000-square- Sovereign’s new 77,000-square- cording to CoStar. foot building at 1075 W. Entrance foot building at 4685 Investment The building was built in 1999 to Drive. Drive, south of West Long Lake be leased to Delphi Corp. The company owns 20.5 million Road and west of Crooks Road, Both buildings were built by square feet of office space in 17 sold for $11 million, according to Denver-based The Pauls Corp. markets across the U.S. Its portfo- Washington, D.C.-based real es- The Troy sale is one of the lio is valued at $5.2 billion, accord- tate information service CoStar largest office purchases, in terms ing to a Piedmont corporate Group Inc. Piedmont bought the of price, in metro Detroit so far brochure. building in August for $10 mil- this year. In February, the three- Kirk Pinho: (313) 446-0412, lion, according to a company building, 223,000-square-foot [email protected]. Twitter: property investment activity re- Northeast Corporate Center office @kirkpinhoCDB

First Martin to Outsourced Risk Management build Residence Inn in Ann Arbor

First Martin Corp.’s first hotel development will be a Residence Inn by Marriott in downtown Ann Arbor. The 110-room hotel, whose flag was announced last week, would be the anchor for a $20 million mixed-use project at 116-120 W. Huron St., between North Ashley and North Main streets. The project is proposed by the Ann Arbor- based real estate company. The extended-stay hotel, expected to open in the summer of 2015, will include studio and one- and two-bedroom suites. Ann Arbor Planning Commission and Ann Arbor City Council approvals are still needed, said Mike Martin, vice president of First Martin. Planning Commission site plan approval is expected this month. City Council site plan approval is ex- WHAT PATH ARE YOU ON? pected in June, Martin said. Retail frontage would be along Huron Street, while the main entrance would be along Ashley. The site is home to the Grey- hound Bus Depot and the Ann Arbor Area Convention and Visitors Bureau. Both will relocate. FINANCIAL SOLUTIONS In addition to about 6,000 square feet of retail and possible restau- Minimize Exposure. Reduce Expense. BUILT ON GENERATIONS OF TRUST rant or bar space, the first floor would also include the hotel lobby, The Sterling Insurance Risk-Path-Process® is a proven meeting rooms, office space, an ex- multi-channel, enterprise level risk management strategy. • Insurance ercise room, patio, pool and kitchen and laundry space. To ﬁnd out how you can minimize your exposures while driving • Employee Benefits The Ann Arbor office of Colliers International Inc. will market the re- down your cost, contact your Sterling Risk Path specialist. • Retirement Planning tail space to tenants. First Martin was founded by for- 888.525.7575 | 586.323.5700 | sterlingagency.com mer University of Michigan Athletic Director Bill Martin, Mike Martin’s 535 Griswold Street, Suite 1600 • Detroit, MI 48226 • www.lovascogroup.com • 313.394.1700 father, and has more than 1 million A Member Firm of M Financial Group. square feet of office and retail space Registered Representative with M Securities: and 400 apartment units under own- Securities offered through M Holdings Securities, Inc., A Registered Broker/Dealer, Member FINRA/SIPC. LoVasco Consulting Group is independently owned and operated. ership and management. Sterling Insurance Group is a Michigan based company. — Kirk Pinho DBpageAD_DBpageAD.qxd 4/17/2014 12:14 PM Page 1

Our Difference Makers are, well, EXACTLY THAT.

They’re not only improving local, even global, communities— their leadership is empowering change. Nominated by faculty and staff, these students and alumni embody academic and professional achievement, integrity, leadership, and creativity in and out of the classroom. They are UM-Dearborn Difference Makers, and we’re always looking for more.

We congratulate our 2014 Difference Makers for their accomplishments today and yet to come. See the difference they’re making at michiganDIFFERENCEmakers.com. 20140505-NEWS--0006-NAT-CCI-CD_-- 5/2/2014 4:12 PM Page 1

Page 6 CRAIN’S DETROIT BUSINESS May 5, 2014 Word ‘tax’ a hurdle for PPT reform ballot proposal Ballot proposal language can be paign sup- sion ad buys in support of the bal- confusing. And when it involves porters is lot measure, and voters could soon taxes, the voters’ inclination is of- Capitol that the With no organized opposition to the ballot begin to see those ads. ten to just vote “no.” If for no other Briefings wording of While August still seems a ways reason, the “no” vote means they the proposal, proposal, it’s just the inclination to vote away, absentee ballots will be sent will not accidently vote for a tax written by to voters next month, and support- increase. state lawmak- “no” that supporters have to combat. ers of the measure want to make But a ballot proposal to create ers, includes sure those voters can start to see the funding stream for local com- the words with the phase-out of the PPT is to Citizens for Strong and Safe Communi- the clunky and confusing language munities following the repeal of “tax” or “tax- be covered with a redirection of ties — the group of business, labor and become familiar with it, be- Michigan’s industrial personal es” eight the use tax, expiring tax credits, and community organizations sup- fore they ever see it on the ballot. porting the ballot measure — has property tax is not a tax increase. times. It also and a special assessment that only That is important, because in a If you keep in mind only this one doesn’t in- manufacturers receiving a PPT re- raised more than $5.6 million, ac- Chris Gautz typical August primary, between point, then that is what supporters clude the duction pay. cording to campaign finance state- 40 and 44 percent of the votes are want you to remember, aside from phrase “personal property tax,” With no organized opposition to ments filed with the state last cast in the form of absentee bal- voting “yes” on the proposal on the which is what those familiar with the ballot proposal, it’s just the in- month. lots, said Kelly Rossman-McKin- Aug. 5 primary ballot. the issue most associate the pro- clination to vote “no” that support- That money will be used to fund ney, CEO and principal of strate- The problem facing the cam- posal. The state revenue being lost ers have to combat. The Michigan direct mail pieces and cable televi- gies communications firm Truscott Rossman, who is working on behalf of the coalition. There are about 700 members in the coalition, she said. And those true story organizations and businesses began last week sending out email blasts to their members and employees to inform them on the issue. From tool and die to retool and thrive. This campaign will be much different than a typical statewide bal- Enough is enough, concluded the CFO of the tool and die company; the fees being charged by its bank had increased one lot measure, Rossman-McKinney too many times. The account was moved to a smaller bank that provided relief in all but one important area: it had no said, because in order for it to be successful, voters will have to see trust department to manage the company’s 401(k) retirement fund. Wisely, the CFO appointed an internal team to assess and hear from their local officials six retirement plan service providers in terms of customer service, fees, methodology, transition planning, employee and local business owners about the positives of removing the dou- education, technology, portfolio composition, investment management, independence, references, confl icts of interest, ble taxation on businesses. likability, etc. With over 200 employees and a nearly $20,000,000 plan, the company had good reason (not to mention its Having local police and fire chiefs explain to voters in their legal, fi duciary obligation) to carefully weigh its options. community that they will not lose out on any revenue from the repeal As in all competitions, a winner emerged. Greenleaf Trust’s winning edge may have been the clear and thorough detail of the tax will go much further about how we invest and manage a plan’s assets, identifying the specifi c mutual funds we select and why. Or perhaps it than having some well-known figure to whom voters have no con- was our continuous assessment of each fund’s performance and suitability, and our transparency about fees. Or maybe it nection — and may not trust — was how we minimize the inconvenience and duration of a plan’s transition, and take on responsibility for modifi cations make that case. So the coalition is doing a lot of and mandated fi lings. Or that we meet regularly with employees (and spouses) to educate them on the necessity and benefi t grass-roots work, and talking with of setting aside money for retirement. Chances are, it was all of those things and more. local chambers of commerce to help spread the message. They also Every company has its own story to tell, of course, but with Greenleaf Trust as the plan provider some things never are working on ways to target se- change: employee participation improves, contributions go up, asset values increase and smiles reappear. Everyone, it nior citizens, since about 50 percent of primary voters are age 65 seems, likes a happy ending. Call Matt Siel at 800.416.4555 and let’s get started on yours. and older. While primary voters are seen as more committed voters than in a general election, having to vote on a statewide ballot measure is still something rare for them, also adding to the uphill climb the coalition faces. Not since 2002 has there been such a proposal on an August primary ballot, and that year, there Financial Security from Generation to Generation were two of them. One was to allow the Natural Re- sources Trust Fund to invest in the stock market. The second was to have lawmakers vote to approve any pay increases for themselves. Both of those measures passed. Ballot measures in general elec- tions don’t always fare as well. In November 2012, all five constitu- tional amendments on the state ballot were defeated. The PPT re- placement tax system proposal does not amend the constitution, something voters have proven leery of doing. This November, there could be as many as eight statewide ballot measures. Supporters are hoping the decision to have this measure go it alone in August will improve its chances. Chris Gautz: (517) 403-4403, 34977 woodward avenue birmingham, mi 48009 greenleaftrust.com 800.416.4555 [email protected]. Twitter: @chrisgautz 20140505-NEWS--0007-NAT-CCI-CD_-- 5/2/2014 4:13 PM Page 1

May 5, 2014 CRAIN’S DETROIT BUSINESS Page 7 Entrepreneurship growing in Michigan, reports find

BY TOM HENDERSON survival rate for new businesses, crease of 45 percent in the last five CRAIN’S DETROIT BUSINESS the growth of businesses adding years. jobs and in expanding exports — What’s really notable is ... we Investments in life sciences Michigan’s ranks of entrepre- Michigan is now in the top 10 in “ companies accounted for more neurs have flourished in recent all three. moved up so far in the last five deals than any others in Michigan; years, according to two reports is- Michigan is third in employ- of all investments, 45 percent were sued Monday: a yearly report by ment in high-tech manufacturing years while everyone else was also in life science companies. Forty the Ann Arbor-based Michigan Ven- and fourth in employment in phys- percent of the companies that re- ture Capital Association and the 10th ical sciences and engineering. focused on entrepreneurship. ceived investment in 2013 were in annual Michigan entrepreneurial The report wasn’t all sunshine ” IT. scorecard compiled by MiQuest, a and roses. The state was ranked Diane Durance, MiQuest In the last five years, the num- Lansing-based nonprofit affiliated 36th in 2012 in the growth of the ber of venture capital investment with the Small Business Association number of small businesses and professionals increased by 84 per- of Michigan. 37th in the availability of commer- which moved into an office in the gic partners and advice,” he said. cent in Michigan to 81, compared Both reports point to building cial and industrial lending. Kerrytown district in downtown Carrie Jones, the Michigan Ven- to a 13 percent decrease in invest- momentum in Michigan’s ability Ann Arbor last Thursday and ture Capital Association’s execu- ment professionals nationally to to attract and fund fledgling entre- also shares space in the Madison tive director, said that group’s re- 5,891. And while the number of VC preneurs. Funding growth Building in downtown Detroit, port shows the sharp progress firms nationally declined from 883 According to MiQuest, which courtesy of Detroit Venture Part- made in five years. Venture capital entrepreneur- to 874 last year, the number head- used 137 metrics to analyze data ners. “The growth is really incredi- ship is certainly up in Michigan. quartered in Michigan increased from 2012, Michigan ranks sixth The move into Ann Arbor office ble,” she said. “Last year was a More than $120 million was invest- from 20 to 23. nationally in entrepreneurial cli- space follows the firm’s participa- year of biggest ‘evers’: The most ed in 40 companies in the state last There are more angel funders, mate and first in the Midwest — a year, the highest number of deals tion in an investment round in number of deals, the most angel in- who tend to invest smaller sharp turnaround from its rank- in a single year since the MVCA March of $2.7 million in Ann Ar- vesting, the highest number of amounts at an earlier stage in a ing of 41st in 2007 and 2008. was created in 2002. bor-based Amplifinity Inc., a cus- tech companies started in the company’s life cycle, than venture There are 103 VC-backed compa- tomer loyalty and marketing firm. state. All of these speak to our nies in Michigan, an increase of 66 “Michigan has made a concerted progress.” capitalists. In 2013, 36 Michigan ‘It’s an exciting time’ percent in the past five years. And effort to nurture both early-stage An investment last month sets companies received nearly $9.9 MiQuest’s 156-page, in-depth there are 116 companies that have local VC funds and out-of-state up the state for another strong million in angel and pre-seed fund- scorecard analyzed national data received funding from angel in- funds that have a presence or visit year this year. Plymouth Town- ing, and raised more than five from 2002 to 2012. vestors, an increase of 137 percent frequently,” said Jonathan Mur- ship-based ProNAi Therapeutics Inc. times this amount in additional MiQuest was formed in January over five years. ray, who will manage the Ann Ar- announced an investment round of funding from other sources. after a merger between Ann Ar- Another record was set by the bor office. $59.5 million, which is believed by To read the VC report, visit bor-based Great Lakes Entrepre- number of venture capital firms ei- “Both are important, because in- the MVCA to be the largest single michiganvca.org. neur’s Quest, a nonprofit that men- ther headquartered here or with state funds are necessary to lead VC investment in state history. To read the complete MiQuest tors would-be entrepreneurs and an office in Michigan: 33. This early investment rounds and pro- Highlights of the association’s scorecard, go to www.miquest.org. holds awards programs for startup marks an increase of 50 percent vide nearby support, and out-of- annual report: and emerging companies, and the during the last five years. state funds are needed to provide Michigan-based VC firms Tom Henderson: (313) 446-0337, Lansing-based Small Business Foun- One of them is Pittsburgh- growth capital and larger net- have $1.6 billion under manage- [email protected]. Twitter: dation of Michigan. It has 13,000 based Draper Triangle Ventures, works of customers, talent, strate- ment, the highest ever and an in- @tomhenderson2 members, including more than 5,000 second-stage businesses. “I have been feeling in the last few years that the entrepreneurial ecosystem is growing and is more active. This scorecard really sub- stantiates that,” said MiQuest President Diane Durance. “What’s really notable to me is we moved up so far in the last five years while everyone else was also focused on entrepreneurship. It’s Finance Experience not like we were the only one on the ball. Everyone else was trying ® to improve their programs, too. It’s In Your Corner. an exciting time.” Highlights of the MiQuest report: ■ Representing commercial lenders In 2012, Michigan improved its 2011 rankings in every major and banks in secured transactions. metric, including the number of new businesses, the five-year sur- ■ Asset-based lending, working capital vival rate of new businesses, the financing, formula-based loans, and number of business incubators, funding from U.S. Small Business In- complex mortgage loans. novative Research grants, gross domestic product, building permits ■ In Your Corner. and the state’s business tax structure. Credited for gains in those areas were the state’s research and technology base, abundant and rel- atively low-cost energy, aggressive debt deleveraging, positive migra- tion into the state after years of population outflow, natural resources and extensive growth in global trade. After years of decline, Michi- gan began experiencing economic growth in 2010, with private employment growth exceeding national and Midwest averages in 2011 and 2012. In addition, gross domestic product per capita ex- First Tier Ranking in Corporate Law and ceeded national and Midwest aver- Commercial Litigation ages in 2011 and 2012. After years of being in the Contact Chris Salata at [email protected] ■ Metro Detroit ■ Grand Rapids ■ Kalamazoo ■ Grand Haven ■ Lansing bottom 10 states in three cate- gories — the growth in one-year 20140505-NEWS--0008-NAT-CCI-CD_-- 5/2/2014 6:29 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS May 5, 2014 OPINION Whole state benefits Pontiac’s battle with blight by helping Detroit begins with this old house “Tear that (expletive) down. etroit’s quest for financial equilibrium has many Tear all these (expletives) down.” When I pulled up to the blighted stakeholders. house at 70 Thorpe St. in south- D Michigan — the entire state — is one of them. west Pontiac last week, that’s what That’s lost on some lawmakers who see any assistance — a man who was talking on his cell- especially financial — as rewarding decades of what they con- phone and puffing a cigarette next to the house said to me. sider to be poor management. That’s exactly what Bill Pulte, But allowing Detroit to fall will cost far more than the the city of Pontiac and Oakland state dollars on the table to resolve the city pension issue County plan through the so-called “grand bargain.” That sum is either to do, using at Real least $4.2 mil- $199 million in a lump sum or $350 million over 20 years. Estate lion in Com- Lawmakers should approve that state contribution, munity De- preferably in the lump sum form. velopment Block Grant Beyond that, the state can play a positive role in resolving and Neigh- issues that are blocking a proposed regional water and sewer borhood Sta- authority. bilization Architects of the city’s bankruptcy plan want to leverage Program funds, ac- the water department as a source of ongoing revenue to sup- cording to port city operations outside of the water department, a tactic Kirk Pinho Oakland that suburban leaders, most notably Oakland County Execu- County Com- tive L. Brooks Patterson, are resisting. missioner Mattie McKinney Hatchett. Mediators are meeting with those leaders. This home at 70 Thorpe will be But as Chad Halcom reports on Page 1, state intervention demolished as part of an effort to — without making big financial commitments — could help remove blight in Pontiac. resolve several key obstacles, including: I don’t have to go out of my way to drive by 70 Thorpe — north of Delinquent accounts: Nearly $112 million in residential and West Huron Street (M-59) and west commercial accounts in the city are more than 60 days over- of North Johnson Avenue — to due. Solution: Create a plan to directly pay water bills from snap the photo that accompanies the public assistance payments Michigan now funnels direct- this story. I live just one street over and ly to landlords for housing assistance. drive past it every day on my way Investing in the aging system: When city water managers pro- home. posed a 4 percent rate increase for services, Oakland Coun- I have no intention of leaving ty’s representative voted “no.” Not because he thought the in- the neighborhood anytime soon. But I’m happy to see a safety haz- KIRK PINHO/CRAIN’S DETROIT BUSINESS crease was too high but because it was too low. This is a This home at 70 Thorpe in Pontiac was demolished last week as part of an effort ard face the wrecking ball. And to remove blight in the city. system that needs reinvestment. In one sewage “interceptor” more homes in the area do need to serving Oakland and Macomb, only one of six pumps were ac- come down. from Waterford Township be- a massive foam alphabet floor cov- tually working. Some suburban leaders fear that millions of cause my girlfriend at the time had ering. It’s where she wailed at night capital investments will be required for the system. A house that was a home a pit bull and the city was either in her purple-trimmed nursery, If state law were amended to allow the state of Michigan to too broke to meaningfully enforce where she first laughed, where her On the 10th anniversary of Sept. an existing pit bull ban or didn’t first tooth poked through her gum lend its credit rating to the authority as a voting or nonvoting 11, 2001, I moved into my two-story have one on the books. like a groundhog looking for its member — it serves 40 percent of the state’s residents — it house, which was built in 1931. It I also didn’t expect to become a shadow. could bring with it lower bonding costs and help ensure more was perfect, except for a couple of father here, but I did. I live in what is, for me, the money is spent on infrastructure versus interest payments. deficiencies — one of them being My newborn daughter came House of All the Firsts. And it is the blighted and vacant home next home swaddled like a bean burrito perfect. Ultimately, though, Southeast Michigan needs a regional door, which remains blighted and in September 2012. It’s where she Even though she and her mother system that is sustainable. vacant to this day. spent the first 14 months of her no longer live here and the daily State government can help resolve some critically impor- I didn’t expect to fall in love with life. commute to and from downtown tant issues here without expending a lot of state cash. my house, but I did — all 1,300 It’s where she smiled for the first square feet of it. I moved to Pontiac time and took her first steps across See Next Page

KEITH CRAIN: We need lots of new business in our city I got a note the other day from the nation, we’ll still New York has an ad tive understands that Detroit is a is being done today on righting the someone telling me about the suc- have too many unem- campaign that makes safe environment in which to run financial ship. We have to put the cess of their new business. ployed Detroiters. It’s that state look attrac- a business. pieces together to encourage busi- It wasn’t big — like hoping Toy- getting better, but we tive. Business attrac- These are tall orders for our ness. ota would move 6,000 people into still need more reasons tion should be up at the city, but that’s what we need if we Perhaps the biggest challenge is Detroit. Just a small business that and attractions for peo- top of the mayor’s prior- want to attract startups and other to keep the businesses that we started in Detroit and is alive and ple to want to start or ity list. businesses to move here. have in the city and to encourage well. move their business to Yes, if we want to at- We need a thousand new compa- their expansion here — and not in We need to figure out a way to Detroit. tract businesses, we nies. But it all starts with a single a far-away state. The companies encourage hundreds — no, thou- It’s time that we get have to get rid of the new business. And then another here today are the foundation for sands — of small entrepreneurs to our mayor a frequent- blight. We need street- and another. tomorrow. think of Detroit as the startup cap- flier ticket to hit the lights that work every- It’s good that the executive in This city is on the right road. ital of the nation. road and work on busi- where. We need charge of “jobs and economy” sits Still too many potholes, but the When the emergency manager ness attraction. Our smooth roads without next to the mayor’s office. Without right direction. There is still plen- has done his job and Detroit has a governor travels the world to at- potholes. We need to be sure new jobs, we face the daunting ty of work — and lots of balancing balance sheet that is the envy of tract business to the state. And every potential business execu- task of maintaining the work that of priorities — to be done. 20140505-NEWS--0008,0009-NAT-CCI-CD_-- 5/2/2014 10:22 AM Page 2

May 5, 2014 CRAIN’S DETROIT BUSINESS Page 9

From Previous Page focusing on structural blight re- large area of blighted homes near moval until Detroit officials said the Eastern Market district in a 10- Detroit is hellish at best, I won’t “Thanks, but no thanks” and start- We will have to increase (the day period last year — was founded move in the foreseeable future. ed taking on the blight removal ef- “ by Pulte, the grandson of Bloomfield The rush-hour trips are small forts themselves. federal funding for Pontiac Hills-based PulteGroup Inc. founder prices to pay to keep living in the It had focused on large-scale de- William J. Pulte and managing part- House of All the Firsts, even if it is molition in contiguous areas of De- blight), and I expect Bill (Pulte) ner of Bloomfield Hills-based Pulte within a stone’s throw of another troit like those near the Eastern Capital Partners LLC. property that I’ll call the House of Market district and in Brightmoor to carry the ball from there. But this new effort in Pontiac Disrepair. on the city’s northwest side. ” starts with 70 Thorpe. Oakland From what I can tell, Pontiac’s L. Brooks Patterson, Oakland County executive County Executive L. Brooks Pat- That House of Disrepair blight demolition isn’t the same proval of $100 million in federal and Grand Rapids, $2.5 million. terson said recently that it will animal as Detroit’s. It’s pervasive, funds for blight removal in De- The Michigan State Housing De- take more than $4.2 million to Homes on this street in Pontiac but less so than in Detroit, and troit, Pontiac, Flint, Saginaw and velopment Authority estimated that eliminate Pontiac’s blight. will be razed as part of a new effort each block has to be evaluated on Grand Rapids. Those funds were more than 7,000 residential build- “We will have to increase that, to remove blight in the city. its merits. I haven’t seen many repurposed from the Hardest Hit ings would be razed with those and I expect Bill to carry the ball The House of Disrepair’s garage large areas consumed by decrepit Fund, part of the federal Troubled funds. Hatchett said it’s not known from there,” he said. is practically collapsed. The houses that seem to need razing in Asset Relief Program. whether the $3.7 million for Ponti- Kirk Pinho: (313) 446-0412, house’s windows are gone. There one fell swoop. Still, there is a need Of the $100 million, Pontiac re- ac will be used in Pulte’s blight re- [email protected]. Twitter: is garbage strewn in the backyard. for an organized strategy. ceived $3.7 million. Detroit removal efforts. @kirkpinhoCDB. Read his blog at A broken basketball hoop. A rock- In June, the U.S. Department of ceived $52.3 million; Flint, $20.1 The Detroit Blight Authority — crainsdetroit.com/section/blogKir ing horse. A mangled fence. Play- Treasury granted Michigan ap- million; Saginaw, $11.2 million; which started last year by razing a kPinho ground toys. Two-by-fours. Mas- sive tree limbs from a storm. Just last month, there were stray dogs howling from its base- ment. My new housemate called the Oakland County Sheriff’s Depart- ment about the dogs and, as far as I know, they are doing OK. But what if my daughter had been outside playing when they made their way into the house, probably looking only for food and warmth? Oakland County Treasurer Andy Meisner put that blighted house for sale in a tax foreclosure auction, but it didn’t sell. Go figure. This was in 2012. There are two other blighted First Place Now proud homes across the street that will be razed, I’ve been told by utility workers shutting off the lines. Those houses are boarded up, Bank. to be Talmer awaiting a wrecking ball, but the House of Disrepair remains. I’d like to see it added to the demo list. While our name may be different, the Pontiac has hundreds of houses Bank and Trust. just like the ones next to and across names of the people who take care of the street from mine. Hatchett said you, and the personalized service they there are about 550, all homes that need to be demolished. provide, are still the same. So is our But my little story isn’t mine strong commitment to this community. only. It is not a unique little snowflake. Thousands, or hundreds of thou- In fact, the name “Talmer” is a tribute sands, of people of Detroit or Grand by the Bank’s two principals to their Rapids or Pontiac or Flint or Sagi- naw or Kalamazoo have their own grandfathers (named Talmage and Houses of Disrepair nearby. Merzon), who both dedicated their And, next door or a few doors down, they have their Houses of lives to community service. All the Firsts. What’s more, Talmer Bank, just like Blight removal efforts in Pontiac First Place, is a Midwest-based For someone, I’m betting that 70 community bank—and one with Thorpe was the House of All the Firsts. But today, it is a House of demonstrated ﬁnancial strength. So Disrepair. you can count on us to take care of And it needs to go. This is why it will be exciting to your business needs for many years hear more about Pulte’s blight de- to come. molition efforts in Pontiac. More people need to come to the city, and one of the first ways of attract- Please stop by soon. You’ll quickly ing more people is getting rid of blight. discover that we’re now an even greater Every day, there are children asset to your community. playing on the sidewalks in front of these run-down, vacant houses. They play basketball or toss a football across the street, even as cars dart underneath. What if they were to encounter feral dogs? County and Pontiac officials last week held a news conference, where we learned at least two more homes on Thorpe would be torn down. Pulte is working on raising more funds to expand the effort beyond the initial grants. www.talmerbank.com | 855-882-8824 Pulte’s nonprofit, the Detroit Blight Authority, of which he is founder and chairman, had been DBpageAD_DBpageAD.qxd 4/9/2014 10:37 AM Page 1

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twentytwenin their y Crain’s 2014 class of emerging leaders

Crain’s 20 in their 20s awards honor 20s2 success at a young age. Some of our winners see success as up-and-coming entrepreneurs; others fi nd it by making an outsized impact in a large organization. Still others are shaping the future of our cities and nonprofi ts. Regardless of how you defi ne success, these young men and women excel at it.

Want to know more about them? Meet the Visit crainsdetroit.com/20s for winners more stories, more interviews, more photos, more video… Celebrate this year’s more, more, more! class of 20s on June 12 inside Midtown Detroit’s new Garden Theater. We’ll fete them from 5 to 9 p.m. For ticket info and more, visit crainsdetroit.com/events. 20140505-NEWS--0012,0013-NAT-CCI-CD_-- 5/2/2014 10:33 AM Page 1

Page 12 CRAIN’S DETROIT BUSINESS May 5, 2014

Why he won: Bryan spired and started talking to some friends,” Barnhill said. “We all decided it Barnhill went from “paper was time to come home. Coming back in passer outer”on a 2009 a time of crisis made us feel that we Detroit City Council would have the most amazing develop- mental experience.” campaign to running Mayor It took Barnhill a while to reconnect, Mike Duggan’s winning bid even spending some time unemployed. to lead the city. But in 2009 he began volunteering with Charles Pugh, who was running for De- troit City Council, and eventually came to the attention of Mike Duggan, who would tap Barnhill to run his mayoral Chief talent officer, campaign. City of Detroit That worked out well for everyone. After the campaign, Duggan named Bryan Barnhill had every reason to flee Barnhill the city’s chief talent officer, re- Detroit. sponsible for finding everyone from top He grew up in the desolate City Airport hires to board appointees. neighborhood, but he excelled academi- — Amy Haimerl cally and attended Harvard University. After graduation in 2008, he accepted a job at a New York City real estate firm. His ticket was punched. Then he decided to come home. “It was around the time that President Obama was elected, and I was really in-

Why he won: David tions and day-to-day operations at the 2-year-old company. He and his Colman left a high- partners — his brother Michael, and powered NYC job to start Tyler Ross — specialize in buying Roco Real Estate with his apartment buildings that the industry considers undervalued. brother and partner, Most recently, the company closed building a $250 million on a four-property portfolio deal in portfolio in just two years. mid-March with Farmington Hills- based RHP Properties valued at $30 million. “There are a lot of other deals in Principal, the pipeline,” Colman said. “We will Roco Real Estate Inc., continue to grow our presence.” Bloomfield Hills By the end of the year, he expects to have 7,500 units worth $330 mil- In one year, Roco Real Estate Inc. lion. grew by 150 percent. — Kirk Pinho In 2013, its portfolio of apartment complexes was worth $100 million; today, it has nearly 5,000 units valued at more than $250 million. Overseeing that growth is David Colman, who heads investor rela-

Why he won: Timothy believe a period of stress affords tremendous opportunity.” Bassett is an investment Talmer was then a bank riding a sharp strategist at Michigan’s fastest- growth curve, and Bassett saw the chance growing bank, advising a to put some big numbers on the board. In two years, he grew his group’s revenue by portfolio worth about $400 million. 165 percent and is now an investment strategist on a portfolio worth about $400 million. Talmer, which went public in March, has Managing director, grown, too, from $90 million in assets in asset management 2010 to almost $5 billion today. And it in- and investment services, tends to keep a 29-year-old at the helm of asset management and investment Talmer Bank and Trust,Troy services. When Timothy Bassett was offered a posi- “Tim has a different energy level that real- tion at Talmer Bank and Trust two years ly resonates with my customers,” said David ago, he didn’t see it as a move from thriving Provost, Talmer’s president and CEO. “Older Chicago to dying Detroit. customers can be leery at having a manager It was, he says, “a decision of opportunity so young, but he can jump that divide with and growth and not simply relocation. … I older customers.” — Tom Henderson 20140505-NEWS--0012,0013-NAT-CCI-CD_-- 5/2/2014 10:33 AM Page 2

May 5, 2014 CRAIN’S DETROIT BUSINESS Page 13

Why she won: hood Noodle, after moving to De- troit in 2010. As she met other food Jessica Daniel is growing producers, they started casually Detroit’s local food gathering around kitchen tables to economy by helping discuss questions about business practices, city licensing and more. small businesses go from Eventually the circle grew to nearly startup to success.She’s 300 members. also a killer chef. Today, FoodLab is a formal mem- bership organization that is seeking its own nonprofit status. Last year, FoodLab and Eastern Market Executive director, Corp. launched Detroit Kitchen FoodLab Detroit, Connect, which pairs startup food Detroit businesses with low-cost commercial kitchen space. Jessica Daniel thinks she has the “The food industry is sort of the best job in all of Detroit. place where we are rethinking our “Basically,” she said, “I get to hang relationships to the environment, to out with a diverse group of passion- business, rethinking our relation- ate, thoughtful people who often ships to one another,” Daniel said. feed me very delicious food.” “That’s what keeps me working in As the executive director of Food- food.” Lab, Daniel advocates for the local — Amy Haimerl food industry, helping new companies start up and existing ones thrive. FoodLab is an outgrowth of Daniel’s own experience starting a pop-up noodle shop, Neighbor-

Why she won: Erika Eraqi went from an entry-level employee to a senior account direc- Eraqi went from newbie tor in just six years. Now, as the head to director of JMW’s of the Cadillac account, she super- Why he won: Daniel Ellis raised seed capital to build drones for in- Cadillac account in six vises a multimillion-dollar budget raised $500,000,built a prototype specting the structural integrity of bridges, and directs nine employees. buildings and other hard-to-access infra- years,with oversight of all She also orchestrates events for drone and scored a major client. structure. facets of promoting GM’s Cadillac customers, scoring them per- Now he just needs FAA approval. “SkySpecs won’t replace the human eye, premier brand. sonalized golf instruction from David but instead of doing a close-up visual in- Leadbetter and letting them drive the spection once a year, we can do it much legendary Laguna Seca racetrack. more frequently,” said Dave Peachey, vice “I’ve always believed that it’s my CEO, SkySpecs LLC, president of engineering at San Diego- Senior account director, responsibility to create the condi- Ann Arbor based UpWind Solutions Inc., which will Jack Morton Worldwide, tions for my success,” she said. use SkySpecs’ drones to inspect large wind Detroit Eraqi credits her parents for in- Drone flight may be grounded for com- turbine farms. stilling an unstoppable work ethic. mercial manufacturers, but SkySpecs is Ellis has raised $500,000 in seed funding, in- Seldom would the Detroit office of Her mother escaped Communist ready to take off. It just needs the Federal cluding winning $50,000 in the Michigan Jack Morton Worldwide promote a Slovakia, and her dad came from Aviation Administration to approve drones Clean Energy Venture Challenge hosted by 20-something to director of its Cadil- Egypt. Together they raised three for commercial use. UM and DTE Energy Co. He is raising an addi- lac account. But it did for Erika Eraqi. children, each achieving advanced CEO Daniel Ellis and a team of engineering tional $250,000, which he said would prime a “Her instincts are right on,” said degrees. Eraqi’s is in business students launched the company in 2012 at major infusion of venture capital. Jack Morton General Manager Sher- administration. the University of Michigan. They have since — Tom Henderson ry Foust. — Maureen McDonald 20140505-NEWS--0014,0015-NAT-CCI-CD_-- 5/2/2014 10:36 AM Page 1

Page 14 CRAIN’S DETROIT BUSINESS May 5, 2014

Why he won: Blight Task Force to survey true love. That is reserved for and catalog all 380,217 city teaching others, whether Michael Evans parcels in just two months. leading programming cours- invented “blexting” The secret? Michael Evans. es at Grand Circus Detroit — the technology The college dropout was the or producing how-to shows powering a citywide mind behind Loveland’s blex- at his video-content site, Why he won: stage tech companies involved in ting app, which allowed teams PishPosh TV. Topics range cloud computing, data, finance blight survey — runs armed with tablets to photo- from technology to politics. Adam Finkel has built an and health care, regardless of sec- a side business and graph every parcel, answer a Evans views the site as a investment firm that tor or location. teaches.Tired yet? few questions and send the way to teach people, whether funds deals alongside “I built this venture platform data back to mission control in that is about technology or from scratch, sourcing and re- real time. politics. such industry viewing several hundred propri- “Blight” + “texting” = “Loveland is something that heavyweights as ety opportunities over the past Senior developer, “blexting.” is going to be huge and lets Amazon’s Jeff Bezos. two years,” he said. Loveland Not bad for a self-taught me get my programming Orfin Ventures is based out of Technologies LLC; technologist. chops going, but PishPosh, in O2 Investment Partners LLC, “I’ve worked with awesome terms of being able to reach which specializes in private equity founder, startup talent in New York people and produce content, Partner, and real estate investments. The PishPosh TV LLC, and San Francisco, but I had is my big true love,” Evans Orfin Ventures LLC, firm wanted to expand into tech- Detroit to go to Detroit to find the said. Bloomfield Hills nology deals though, so Gregg Or- kind of awesome Mike is,” — Amy Haimerl ley, a partner at O2, invited Finkel Last year, Loveland Tech- said Jerry Paffendorf, CEO of In just two years, Adam Finkel to create Orfin as an offshoot of nologies scored a lucrative Loveland. built Orfin Ventures into an in- the firm. (Orfin is a combination of contract with the Detroit But technology isn’t Evan’s vestment firm that does deals the two men’s last names.) alongside such industry heavy- “I concluded after 18 months of weights as Amazon founder Jeff inviting Adam to my office and Bezos, Google Executive Chair- exploring ideas, that someone of man Eric Schmidt and Silicon Val- his temperament and vision, he’s ley venture firms Accel Partners a fascinating person to do this and Google Ventures. with,” Orley said. Howard & Howard is proud to There are eight firms in Orfin’s — Gary Anglebrandt portfolio, which targets early- Congratulate Q&A What advice do you have for newcomers? I would encourage newcomers to do things that make the community feel smaller for them. For example, joining a gym or sports league with Come Play Detroit can help a newcomer expand their social circle and feel more at home. Volunteering with a program like Summer in the City and the Detroit Evonne Xu on her inclusion in the 2014 class of Food & Entrepreneurship Academy can help someone give of their time 248.723.0449 in a meaningful and enriching capacity. [email protected] “Twenty in their 20’s” Getting involved with the Michigan Corps Social Entrepreneurship 450 West Fourth Street Challenge and Challenge Detroit can open doors to grants and mentor- Royal Oak, Michigan 48067 ship that can be game-changers for social entrepreneurs. If someone sees an issue or challenge, try to think of a creative solution and seek out supporters who can work together to improve the greater Detroit area.

What is your favorite local place to visit for creative inspiration? I love to bike in and around Cranbrook. The area has a unique history, www.howardandhoward.com culture and landscape. It’s also an excellent place to observe the season- 248.645.1483 ality of our region. ON THE WEB: More Q&As from Adam Finkel and Ann Arbor, MI I Detroit, MI I Chicago, IL I Peoria, IL I Las Vegas, NV other 20 in their 20s winners: crainsdetroit.com/20s 20140505-NEWS--0014,0015-NAT-CCI-CD_-- 5/1/2014 4:49 PM Page 2

May 5, 2014 CRAIN’S DETROIT BUSINESS Page 15

Why she won: Tatiana a huge toll,” Grant said. So Grant stepped back and finished Grant started with a ramen- her graduate degree in PR from noodle budget and sports Michigan State University, expelling star clients but broke out a few clients so she could focus on organizations that ignited her passion with the Belle Isle for Detroit. Conservancy and Mayor She and four staffers now promote Mike Duggan’s campaign. the Belle Isle Conservancy, Michigan Diversity Council, Cornerstone School and Charles H. Wright Muse- um of African American History. She also produced all the major campaign President/co-owner, events for Mayor Mike Duggan. Infused PR & Events/ “Tatiana is a little ball of fabulous Flash Delivery, fire,” said Michele Hodges, president Farmington Hills of the Belle Isle Conservancy. “She knew how to deeply connect with our When Tatiana Grant started In- demographic.” fused PR & Events, nearly all of her And her ball of fire isn’t dimming: clients were sports stars, including Last year, she co-founded a second University of Michigan’s football business, Flash Delivery, which aims to darling, Braylon Edwards. She fielded bring restaurant delivery service to calls night and day from media when downtown Detroit’s high-rise tenants. her clients encountered end runs — Maureen McDonald with the law, from speeding tickets to altercations. “I was paid a lot of money, but it took

Why he won: Ryan helped grow the company from just a T- shirt shop into a business that also hosts Hooper changed architectural tours and is involved in Pure Detroit and rooted it in civic projects, such as the “All in for Belle the shop-local movement, Isle” campaign. For the holidays, Hooper developed the drawing American Express Detroit Small Business Passport, which of- to feature the shop and city fered shoppers discounts at 18 Midtown in a national campaign. and downtown businesses. That caught the attention of American Express, which filmed a video segment about Pure Creative director, Detroit and the city’s resurgence for its Small Business Saturday campaign. Pure Detroit, Detroit “That’s one thing I latch onto: helping people understand what it means to be Ryan Hooper skipped college, but that a small business in the community. A hasn’t slowed his career. He’s at the cen- small business can be an impactful enti- ter of Detroit’s shop-local movement. ty that helps make the community bet- Hooper started at Pure Detroit in ter,” Hooper said. 2009, when the owners put him in — Gary Anglebrandt charge of a dozen employees, managing inventory, handling marketing and acting as spokesman. Along the way, he’s Why he won: Gregory before leaving the city. “One of the last Holman is the mind behind things I did over there executing Detroit’s blight was I threw the football removal plans.Plus, he got to myself and caught it on the other side,” he said. the Hantz Farms deal done. Demolition is expected to begin in May, and houses are scheduled to come down at a pace of 300 per month, thanks Data and assets manager, to a budget of $52 million in federal funds. Detroit Land Bank Holman also helped John Hantz com- Authority, Detroit plete his plan to build the nation’s largest urban tree farm on Detroit’s near-east Gregory Holman is helping bankrupt side. It took five years, but Holman shep- and blight-ridden Detroit demolish thou- herded Hantz’s purchase of 1,350 city- sands of abandoned houses, thanks in owned properties through the Detroit part to a well-timed career move. City Council last year. In December, Holman left the city’s “What is great about Greg is that he has Planning and Development Depart- a stick-to-it-iveness,” said Mike Score, ment to join the Detroit Land Bank Au- president of Hantz Farms. thority. Among his new duties is clearing titles to more than 700 properties ready — Chad Halcom for demolition — properties he identified 20140505-NEWS--0016-NAT-CCI-CD_-- 5/1/2014 4:46 PM Page 1

Page 16 CRAIN’S DETROIT BUSINESS May 5, 2014

Why he won: Sean 380,217 parcels of land in just city departments, the next help- Jackson was given a nine weeks. Dan Gilbert had vol- ing a survey team dig their car out unteered his employee to over- of the snow, finally returning to seemingly impossible see the project for the Blight Re- Mission Control to help plan the task: Survey every moval Task Force, on which he phasing of our survey.” Detroit property and sits. As the most comprehensive parcel in just nine Though the record cold weath- data set on Detroit property and er threatened the ambitious time- vacancy, the survey will provide weeks.The Marine did it. line, Jackson recruited, hired and policymakers with the opportuni- coordinated 117 Detroit residents, ty to make precision-point deci- 67 Rock Ventures employees and sions. a host of institutional partners, It’s all of a piece for this Marine Executive associate, such as Loveland Technologies Rock Ventures LLC, and Data Driven Detroit, to exe- Reserve sergeant, who special- Detroit cute on time and under the $1.5 izes in collecting information and million budget. figuring out how to put it in action. During this winter’s long polar “Every day was different,” he vortex, Sean Jackson had the said. “One hour working with the — Anna Clark epic task of surveying Detroit’s mayor’s office to coordinate with Q&A What do you love about living in Detroit? I like motorcycles and bicycles, so I love that I can bike to work. Detroit is big, but it’s pretty bike- Open up a world of possibilities friendly. for your company—with our What advice do you have for newcomers? Advice is so silly, especially local experts. because our generation came into a really bad economy and the world is changing so much. I think you make your path by walking. I focus instead on what I can do really well today, and hopefully one day when I get up, I’ll find I’m in a great place.

What is the best piece of advice — business or personal — you have received? Always ask questions, because there are things that even really smart people don’t know. Be a scientist in whatever kind of work you are doing. Figure things out Expand your company’s reach with FirstMerit International Banking and solve problems. To expand sales of her lighting manufacturing company to global markets, Ann worked What is your favorite local with the local advisors at FirstMerit Bank. They were able to provide the best solutions to place to visit for creative help mitigate risks, improve proﬁtability, and increase export sales opportunities. inspiration? The Department of Alternatives With services such as working capital lending for importing and exporting, letters of credit, at the Claridge House on Wash- and foreign exchange, Ann’s company can increase its reach—all around the world. ington Avenue. A lot of social startups are there — Dandelion, the Detroit Bus Co. — businesses that care about social problems. It’s visually beautiful, but the most value I’ve gotten is just hanging around on the couch after work and talking with people.

Tell us one thing people would be surprised to know TO LEARN MORE, CONTACT: about you. Bill Richeson, Senior Vice President, International Banking Division, I did cotillion. I fence. I’m not a 248-324-8526 william.richeson@firstmerit.com at or . very coordinated person, so that surprises people. Follow the latest market trends firstmerit.com @firstmerit_mkt Loans subject to credit approval. Member FDIC 2420_FM14 20140505-NEWS--0017-NAT-CCI-CD_-- 5/1/2014 5:10 PM Page 1

May 5, 2014 CRAIN’S DETROIT BUSINESS Page 17

Why he won: David Right Choice Insurance Agency. He was just 18. James started The Right The agency now has 30 employees, Choice Insurance Agency 12,500 active policies and revenue of at 18, growing it to 30 $2 million per year. James learned much of his business employees and $2 million acumen from his father, who is a fi- in revenue in just five nancial planner. “He was able to pass years. a lot of his knowledge and insight down to me as I was growing up,” James said. Auto and home insurance are the CEO,The Right Choice agency’s core products, accounting for Insurance Agency, about 65 percent of revenue. But last Shelby Township year, James added a commercial line of business, serving small-business David James dreamed of becoming owners in the auto repair and manu- a professional golfer in California. But facturing industries. As a result, he when those dreams fizzled, he realized hopes to add another 10 positions this he had a Michigan dream: Build his year, mostly in sales. own business and create jobs in his — Jay Greene community. So in January 2009, James moved back to metro Detroit and started The

Why he won: Brent Ott He rose through the institution’s restaurant ranks and later its financial started his career as a ranks, catching the eye of then-CFO busboy at The Henry Ford’s Denise Thal. She began grooming him Eagle Tavern and is now the so that when she left last fall he was ready to step into the CFO role at age cultural attraction’s 29. CFO, overseeing a “When our previous CFO (Denise $55 million budget. Thal), who had been with us for 18 years, started grooming Brent, I was like, ‘Oh, my gosh, he is so young,’ ” said Patricia Mooradian, president of CFO,The Henry Ford, The Henry Ford. “But she groomed Dearborn him for years, so when she left, there was no question in my mind that he When Brent Ott took a summer job could take over.” as a busboy at The Henry Ford’s Ea- Ott now oversees The Henry Ford’s gle Tavern at age 16, he never $55 million budget and works with the dreamed that he’d become CFO of president and executive team to make the Dearborn attraction, which in- finance-based decisions on matters cludes Greenfield Village and the such as new hires and where to add Henry Ford Museum. new resources. But that’s exactly what happened. — Sherri Welch

Why she won: Alisyn She previously worked for GM testing the technology that gave the Chevy Spark its Malek put the spark in the electric charging capability. Chevy Spark; now she’s “We try to find people with a technical hunting the best auto-tech background because our investments are with advanced technology companies,” deals for GM Ventures.And she said Jon Lauckner, president of GM Ven- owns an art gallery. tures. “She had that background, plus she has an entrepreneurial streak that maps well with what we do.” That streak is on display at Corktown Investment manager, Studios, the artist collective that Malek GM Ventures LLC, Detroit opened in 2011. It hosts about 10 shows a year — and sells several pieces from each. Alisyn Malek is looking for the next best “We just shipped a piece to Oakland, thing in automotive technology. As an in- California,” said Malek, herself an artist. “So vestment manager at the investment arm from a business development standpoint, I of General Motors Co., it’s her job to hunt want to get Detroit artwork out into the down deals. broader world.” It’s a new role — she started three — Kristin Bull months ago — but a familiar landscape: 20140505-NEWS--0018,0019-NAT-CCI-CD_-- 5/1/2014 5:04 PM Page 1

Page 18 CRAIN’S DETROIT BUSINESS May 5, 2014

Why she won: Mary Sheffield is the youngest Q&A person elected to the What do you love about living in Detroit City Council and the Detroit? first to represent the I would definitely say the people. The energy that this city has is so city’s newly created unique. I live downtown, so for me, 5th District. I’m looking forward to the summer and being downtown and on the RiverWalk, all of the outdoor events. Member of Detroit What advice do you have for City Council, Detroit newcomers? Always believe in yourself. Once Mary Sheffield stands on the shoul- you find out your passion, do whatev- ders of great men — her father is the er you need to do for that vision. Rev. Horace Sheffield, and her grand- father founded the Detroit Trade What is the best piece of advice — Union Labor Council — who taught business or personal — you have re- her about public service, community ceived? organizing and standing up for the Never let fear stop you. People — voiceless. even some of the most famous and “They are fighters for the people,” wealthy people — have self-doubt said Sheffield. “They fight for the bet- and fear. So don’t let negative self-talk terment of the city of Detroit. They stop you from anything. were big on bringing people together.” What is your favorite local place Last fall, Sheffield decided to take up to visit for creative inspiration? that fight and run for Detroit City The Dequindre Cut. I like the art, the Council’s 5th District seat. Sheffield won with 53 percent of the young leaders.” uniqueness of it. That was desolate, vote and became the youngest member ever elected to council. Before joining the council, Sheffield ran a mentoring program and now they have all this art all on Some of her top issues include improving city services and for young women. She intends to create a task force to continue the walls, and it is just beautiful. It nurturing leadership skills in young people. that work, guiding the city’s youth on issues of education, shows how unique our city is. “I’ve always had a passion for serving people,” she said. “And I health and self-image. thought it was time for a young woman to step up. There is a — Amy Haimerl need for young leaders to step up to motivate and inspire other

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May 5, 2014 CRAIN’S DETROIT BUSINESS Page 19

Why she won: Michelle n’t have an actual strategy for online fundraising,” she said. Srbinovich rose to co-GM last She crafted that strategy, which in- summer after beefing up volved overhauling WDET.com, devel- online fundraising and oping a new app and retooling tradi- tional fundraising methods, such as growing individual giving by direct mail. 55 percent in four years. That work persuaded station leadership to make her interim co-general manager, along with talk show host Craig Co-general manager, Fahle. Srbinovich is also vice chairwoman of WDET 101.9 FM, Detroit the Belle Isle Conservancy Emerging Patrons Council, and in 2010 co-found- Michelle Srbinovich has put WDET ed a local chapter of the national non- 101.9 FM’s digital fundraising and mar- profit Girl Develop It, whose mission is keting efforts into hyperdrive since join- to teach women to code. ing the Wayne State University public — Bill Shea radio station in December 2009. Under her direction, individual giving increased 55 percent, to $1.4 million, from 2009 to 2013. Web-based donations are also on the rise, compris- ing 60 percent of gifts during on-air fundraisers. When she arrived, WDET was still in the infancy of online campaigning. “We did-

Why he won: Jesse So in 2012, Vollmar and partner Brad Koch founded AgriSight Inc. at the influ- Vollmar has attracted ential Silicon Valley accelerator Y Combi- $5 million from Silicon Valley nator. After the program, they moved the investors interested in how company to Ann Arbor to be close to Midwestern farms and talent. his technology could change FarmLogs soaks up publicly available the future of farming. data on market prices, rainfall, crop rota- tions and inventory and delivers it to farmers in easy-to-view mobile displays. Farmers can access the cloud-based sys- Co-founder and CEO, tem from the field, allowing them to bet- AgriSight Inc., Ann Arbor ter manage operations. The company has raised $5 million in Jesse Vollmar sees FarmLogs, the tech- two rounds of investment, with Huron nology at the heart of the company he River Ventures in Ann Arbor, Hyde Park co-founded, as the software that will Venture Partners and Hyde Park An- change farming. gels in Chicago and Drive Capital in Vollmar grew up on a farm east of Sagi- Columbus, Ohio, participating. The com- naw, where he saw that the technology pany has 10 full-time employees. available to farmers was antiquated. — Gary Anglebrandt “It was so far behind with what technology can do,” he said.

Why she won: Daniela sure and ways to improve processes. Tomatti created and runs She was so successful her own division of that CFO Michael Plotzke asked her to Plastipak Holdings Inc., a create and direct a new compliance and audit division for the $2.3 billion-a-year $2.3 billion company, served company. in the U.S.Army and speaks “What impressed me most was her three languages. drive, her independence,” Plotzke said. “I was struck by her poise and maturity at such a young age. I always tell her, ‘You are going to sit in this chair some Director of internal audit day.’ ” and compliance, It didn’t hurt that she speaks three Plastipak Holdings Inc., languages — Spanish, English and Por- tuguese — and served as a sergeant in Plymouth the U.S. Army, working in supply chain and logistics. A year into the job as a senior finan- “As stressed as I may get at times in cial analyst at Plastipak Holdings Inc., the corporate world, I just think back to Daniela Tomatti was sent to Brazil on a bombs landing in Iraq, and that puts special project. The Plymouth-based things in perspective,” Tomatti said. packaging maker asked her to look at — Gary Anglebrandt the company’s three manufacturing sites and identify areas of risk expo- 20140505-NEWS--0020-NAT-CCI-CD_-- 5/1/2014 4:51 PM Page 1

Page 20 CRAIN’S DETROIT BUSINESS May 5, 2014

CONGRATULATIONS

Timothy A. Bassett

CERTIFIED FINANCIAL PLANNER™

Managing Director Asset Management and Investment Services

We congratulate Tim on being recognized as a Crain’s “20 in their 20s” honoree. Both our company and Why she won: burgh-based automotive our clients have beneﬁted from Tim’s company to complete a $64 leadership, talent, and energy, and H&H hired Evonne Xu million joint venture in China. we’re proud that he’s a member of to boost dealmaking “My understanding of China’s with Chinese culture and law helped facilitate the Talmer Bank and Trust team. the transaction,” Xu said. “There companies,and she are simply too many laws in delivered with a joint China for U.S. companies to un- venture worth derstand without someone like me to assist them.” 800.456.1500 $64 million. | www.talmerbank.com EQUAL HOUSING She also advises clients on LENDER how to avoid cultural pitfalls. One U.S. company, for exam- Attorney and ple, nearly had its Chinese counselor, plant shut down by the local Howard & Howard government over a miscom- Attorneys PLLC, munication. “Both countries are so large Royal Oak and different, it’s easy to get lost in their global presence,” Evonne Xu has been with Xu said. “Understanding both Howard & Howard less than sides in each language has re- two years, but already she’s ally helped them reach an had a big impact. She’s facili- agreement.” tated dozens of corporate — Dustin Walsh deals between U.S. and China, including helping a Pitts- Q&A What do you love about living in metro Detroit? Detroit offered me the best opportunity, including New York, Shanghai and Hong Kong. I can, and am, contributing to the economic landscape here in ways I couldn’t have done in other cities.

What advice do you have for newcomers? Detroit has always had a culture for immigrants, and that continues to evolve. Don’t assume the worst about Detroit; you can have a successful career and have a family at low cost.

What is your favorite local place to visit for creative inspiration? The Detroit Athletic Club because there are so many young professional events. They are very energetic and contributing their best efforts to make Detroit.

Tell us one thing people would be surprised to know about you. I took six months off from college in China and came to the U.S. to work as a tour guide at Walt Disney World. It was this non- law-related, but “where dreams come true” experience in Florida that made me decide to pursue my education in this country. 20140505-NEWS--0021-NAT-CCI-CD_-- 5/1/2014 3:22 PM Page 1

May 5, 2014 CRAIN’S DETROIT BUSINESS Page 21 State group expected to suggest solar growth; will utilities comply?

BY JAY GREENE Julie Baldwin, the commission’s to hit its 10 percent renewable goal CRAIN’S DETROIT BUSINESS renewable energy section manager, by 2015. He said DTE is currently at said the work group’s conclusions 9.5 percent renewable production. A solar power work group in will not bind the utilities into But Brad Klein, senior attorney Michigan is making progress dis- changing their renewable energy with Chicago-based Environmental cussing the possibility of expand- plans, which are approved by the Law & Policy Center, who is a mem- ing the current utility-sponsored Public Service Commission. ber of the work group, said DTE solar incentive program for cus- “Most people have a concern has accumulated $15 million in customers and whether to recom- that DTE’s SolarCurrents pro- tomer fees from its renewable ener- mend establishing a community gram has not been big enough,” gy surcharge that could be used to solar program, say participants in Baldwin said. “When DTE makes expand its SolarCurrents program. the Michigan Public Service Commis- solar capacity available, they have “I’d like (the work group report) sion-led group. more people to make a strong recommendation By most accounts, apply to par- that utilities take immediate steps the group is expected ticipate than to expand and improve their solar to recommend an ex- Most people have they have ca- programs using monies they have pansion of “ pacity. There already collected to support re- the existing a concern that have been newable energy in Michigan,” solar power DTE’s suggestions Klein said. programs of- to make the Baldwin said prices have fered by DTE SolarCurrents program dropped for solar panel installa- Energy Co. larger.” tion to less than $4 per watt from and Con- program has A draft of more than $10 per watt. sumers Ener- the work “DTE and Consumers can allo- gy Co. and to not been big group’s re- cate that money to making more embark on a port, which solar rebates available to cus- community enough. some group tomers,” Klein said. “The money solar program in ” members say can be used to more cost-effective- which customers, in- Julie Baldwin, has begun, is ly fund the program. Right now, vestors or utilities in- Michigan Public Service Commission expected to (solar installation) companies vest in a large solar be completed have to spend a lot of money help- panel array and share by mid-June, ing customers get the incentives.” power generation and cost sav- when comments will be accepted. Baldwin said several solar in- ings. A final report will be released in stallers told the work group that But the real question is whether July, Baldwin said. DTE’s lottery system — which the DTE and Consumers will volun- Under the commission’s DTE utility uses to narrow down the tarily expand their programs — as order last year, the work group is number of customers for its Solar- environmentalists, manufactur- charged with determining ways to Currents program — makes it very ers and solar installers have been “improve DTE Electric’s cus- difficult for them to do business. asking the state to require for job tomer-owned SolarCurrents pro- “We are hoping to improve on creation and public health rea- gram, including means for incor- this,” Baldwin said. “The installers sons — before the programs ex- porating community solar into the spend a lot of time working with pire in 2015. program.” customers, answering questions, In 2009, when Michigan’s re- Baldwin said the group is dis- filling out the application, only to newable energy and efficiency leg- cussing three ways to design a find out one or two months later islation (Public Act 295) went into community solar program. Con- were picked. Sometimes customers effect, DTE began developing its sumers and DTE could voluntari- lose interest and drop out.” SolarCurrents program and Con- ly fund company-owned communi- Doug Jester, a principal with 5 sumers had its Experimental Ad- ty solar projects; customers could Lakes Energy LLC, a Lansing-based vanced Renewable Program. Both invest in a joint solar panel pro- energy consulting firm, said the programs provide financial incen- ject; or a third- work group also tives for residential and business party company has discussed fu- customers to build and install pho- could create a A lot of ture ways to ana- tovoltaic systems. community solar “ lyze the value of DTE officials said the utility project, take cus- stakeholders just solar from a plans to produce nearly 2 percent tomer invest- price, quality-of- of its 10 percent renewable energy ments and sell so- want more solar. life and job-cre- required production from solar lar energy to DTE ation standpoint. through its company-owned or Consumers, They don’t ... “The discus- plants and residential and busi- she said. sions (also) have ness programs. Consumers plans David Har- understand how focused on … to produce 0.7 percent from its res- wood, DTE’s di- how to change idential and business-only pro- rector of renew- rates are developed the utility solar gram, the company said. able energy, said programs to get State legislators have begun DTE has been with the Public rid of the lotter- hearings on extending Michigan’s supportive of the ies and other renewable energy law. work group, and Service things that pre- Michigan Gov. Rick Snyder has its five meetings Commission. vent customers said he would support legislation so far have been ” from doing so- increasing the state’s 10 percent productive. lar,” Jester said. David Harwood, DTE renewable energy mandate to pos- “A lot of stake- Jester agreed sibly 20 percent over 10 years. He holders just want that the success has not specifically addressed so- more solar, but they don’t have of the work group hinges on lar power other than to say that in- the background to understand whether the utilities put the rec- creasing Michigan-based renew- how rates are developed with the ommendations into action. able energy jobs is an important Public Service Commission,” said “We won’t know whether they byproduct of his plan. Harwood, who is a work group are actually going to do anything Last year, the Public Service member. differently until some uncertain Commission approved DTE’s two- Harwood said the group’s charge time after the staff report is fin- year renewable energy plan. How- to improve DTE’s SolarCurrents ished,” Jester said. “I remain cau- ever, it ordered the Detroit-based “doesn’t mean increase” the compa- tiously optimistic that this will be utility to participate in the work ny’s solar pilot program. He said modestly productive, but don’t ex- group. Jackson-based Consumers the work group is trying to “figure pect anything revolutionary.” Energy, which is awaiting a hearing out ways to make the program more Jay Greene: (313) 446-0325, on its next renewable energy plan, efficient, fair or accessible.” [email protected]. Twitter: voluntarily agreed to participate. Harwood said DTE fully intends @jaybgreene 20140505-NEWS--0022-NAT-CCI-CD_-- 5/1/2014 3:24 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS May 5, 2014

IS YOUR TEMPORARY State of IT in Detroit? LABOR PROVIDER It needs to call help desk CHARGING YOU The White House released its re- Niblock in February. Before com- privacy and security. port on the state of Detroit’s IT sys- ing to the Motor City, she was the Translation: It’s open, public data. tems last week. CIO for Louisville and was on the Give it to the residents. Other A FAIR RATE? It was much more forward-look- White House task force providing cities do it. It will be all right, we ing than the scathing indictment assistance to Detroit following its promise. that many of us would bankruptcy filing. have expected. After all, So what else does the Create a 311 system: Improve cit- Get a free assessment at: about the only thing you Detroit White House think De- izen-relationship management can do easily on the city’s 2.0 troit needs to do? Here is and decrease nonemergency-relat- website is pay a parking the list — with my trans- ed service requests to emergency www.parrymurphy.com/templabor.html ticket. (They go up to $45 lation from policy-think lines such as 911. on June 1, by the way.) to real words: Translation: Just do it. Want to find the min- Evaluate IT infrastruc- utes to City Council meet- ture: Identify opportuni- Improve enterprise geographic infor- ings? Not there. ties for streamlining mation system (GIS): Facilitate the What to start a busi- government processes build-out of a citywide enterprise ness? The info is laugh- and realizing cost-sav- geographic information system. ably inadequate and out ings in city spending, in- Translation: Maps. Online. We of date. Amy Haimerl cluding areas such as can do it. It is 2014. Ask Loveland Need a permit? Well, standardizing software Technologies. you might get a PDF to an ancient applications and consolidating version of the document. You can’t data centers and servers. Enable online permitting: Develop even fill out the form online. Translation: Just make it work and provide the capability for local Want to challenge your property better. residents to apply and pay for busi- Exceptional Leadership. tax assessment? Good luck finding ness, safety, building and other the relevant information. Promote civic innovation in Detroit: permits online. Want to know which parks are Leverage the knowledge and ex- Translation: OK. We’re starting Delivered. being maintained? Nope. pertise of Detroit’s lively, diverse with the basics here. Generally, just no. And I’m not civic innovation ecosystem of so- talking about this from an ad- cial and civic entrepreneurs, foun- The good news is that the city vanced technical perspective; I’m dations and business owners to de- does seem to be taking its IT prob- just talking about the basics. Is the velop tools and technologies to lems seriously. Not only did it hire information easy to find, up to date benefit the city and local residents. Niblock, the city has green-lighted Michigan’s and with current working links? Translation: You have smart tech a deputy director for technological So what did the White House people in Detroit; put their knowl- community engagement. Basical- Premier find about the city’s IT infrastruc- edge to work. Let them solve some ly, this person will help coordinate ture? Well, it focused on big-think problems. They are dying to fix all of these recommendations with Retained recommendations based on best your website and back-end sys- the talent in Detroit just waiting to practices from cities such as tems. go solve problems. Executive Boston, Chicago, New Orleans, Can we please add to the to-do Search Firm Louisville, Ky., and Raleigh, N.C. Open government data: Make list to fix the parking meters? First and foremost, the report freely available government data The White House report on De- suggests Detroit get a CIO. Well more open and accessible to fuel troit IT can be found at www.white Over 100 years that, at least, is check and check. entrepreneurship, innovation and house.gov or via Amy Haimerl’s Mayor Mike Duggan hired Beth economic growth while ensuring blog at crainsdetroit.com. of combined experience.

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International Executive Search Tel: +1.248.645.1551 • www.huntergroup.com Sources: Menards to buy Gibraltar center in Taylor

BY KIRK PINHO Taylor Planning Director Lora The Taylor site, meanwhile, AND SHERRI WELCH Fell said Menards has not yet adds to that city’s retail offerings CRAIN’S DETROIT BUSINESS brought a site plan to the city. for home improvement and gener- Most of the property is already al merchandise goods. The 80-acre Gibraltar Trade Center zoned for commercial use and Eau Claire, Wis.-based Menards site in Taylor could be the home of wouldn’t require rezoning if a has moved into the metro Detroit the next metro Detroit Menards Menards were located there, Fell market over the past year and a home improvement store, accord- said. A small portion of the site, half, opening Menards hardware ing to sources. however, is zoned for industrial. and housewares stores in Chester- Gibraltar officials confirmed “That area right in there is see- field Township and Livonia. It’s last week they had entered into a ing a lot of rebuilds, remodels,” also been making plans for stores purchase agreement with a buyer. Fell said. in Warren and Wixom. PLATINUM STANDARD Sources confirmed that the buyer Vendors at the Taylor Gibraltar Fell said the Taylor location is Menards, which recently has FRACTIONALCTIONAL AND MANAGEDMANAGED BBUSINESSUSINESS AAVIATIONVIATION PPROGRAMS.ROGR are being offered relocation to Mt. near Southland Center makes been expanding in Southeast SERVING ALL SOUTHEASTERN MICHIGAN. Clemens as part of the company’s sense. Michigan. consolidation. Typically, Menards establishes The sale would result in the con- In a statement, Robert Koester, a footprint for its stores and sells solidation of Gibraltar’s Taylor owner and president of Gibraltar adjacent out-lots to gas stations, and Mt. Clemens operations into Trade Center, said focusing on one restaurants and other retailers to one weekend shop in Mt. Clemens, location makes business sense. bring more customers to the site. according to a news release. “Since my father opened the Ken Nisch, chairman of the The Taylor center is expected to doors of the original Gibraltar Southfield-based retail consulting remain open throughout 2014. Trade Center in 1980, we have had firm JGA Inc. has described Prior to redevelopment, the site the support of our customers and Menards stores as “the love child will be razed, said Karl Ziomek, vendors alike, so it is difficult to of Meijer and Home Depot,” where communications and marketing di- announce the closing of the Taylor consumers can buy not only home rector for the city of Taylor. location,” he said. “But at the same maintenance products but con- The property sale price has not time, we are very excited about the sumer and household goods. been disclosed, and there is a 270- prospects of a newly consolidated Menards operates more than 280 day due diligence period on the sale, market with a strong vendor base, stores in 14 states. according to the release. additional product variety, strong Farmington Hills-based Fried- Gibraltar officials declined fur- attendance and an excitement and man Integrated Real Estate Solutions CORPORATEEAGLE.COM ther comment last week, and buzz in the market reminiscent of LLC is the broker on the Taylor Menards declined to comment. earlier days.” property sale. 20140505-NEWS--0023-NAT-CCI-CD_-- 5/2/2014 12:15 PM Page 1

May 5, 2014 CRAIN’S DETROIT BUSINESS Page 23 Michigan 8th in nation in signups for Obamacare, federal report says

BY JAY GREENE However, HHS still has no idea considering further options. CRAIN’S DETROIT BUSINESS how many of these insurance en- Another interesting statistic is rollees actually paid their premi- that 28 percent of those who signed Michigan was the eighth most ums. Moreover, HHS did not say up are between ages 18 and 34, the prolific state in enrolling people how many of the newly enrolled so-called “young invincibles.” In- under the Affordable Care Act were previously uninsured. A surance companies were worried from Oct. 1 through April 19, offi- Gallup poll last month showed that not enough younger people would cials with the U.S. Department of the percentage of uninsured Amer- participate in the marketplace to Health and Human Services said last icans dropped to 16 percent at the balance out actuarial risks of older week in a telephone news confer- end of March from 17.1 percent in people who use physician and hos- ence with reporters. the fourth quarter of 2013. pital services more often. The rankings are based on the 36 Beyond the exchanges, another Eighty-five percent of Obamacare states that participate in HHS’ 3 million Americans under 26 marketplace applicants also sought healthcare.gov website and those years old are covered under their federal subsidies to help pay for cov- 15 states managing their own ex- parents’ plans, and estimates show erage, the report said. About two- changes, also called marketplaces. an additional 5 million people thirds selected “silver” plans, while Of the 5.4 million people who have purchased coverage in the another 20 percent chose the lower- signed up on healthcare.gov, 272,539 private market. cost “bronze” policies. were Michiganders. More than It is not clear how many of those Among federal marketplace ap- 970,000 Floridians signed up, the people were forced to purchase plicants who reported their race, highest number of any state. Texas health insurance because their 63 percent were white versus 16.7 was next at 733,000, followed by previous policy, which was non- percent who were black, 10.7 per- North Carolina with 357,000, Penn- compliant with the Affordable cent Latino and 7.9 percent Asian. sylvania with 318,000 and Georgia Care Act, was cancelled. One-third of applicants did not with 316,000, the report says. President Obama has asked in- identify their racial background. Michigan also is below two of surers to reinstate some of the old- The next enrollment period be- the states that run their own ex- er policies, which do not include gins Nov. 15 for coverage that changes, California with 1.4 mil- all the 10 essential health benefits, starts Jan. 1. lion and New York with 370,000 and some have, including Health Al- Jay Greene: (313) 446-0325, signees. liance Plan and Blue Cross Blue [email protected]. Twitter: Dizzy Warren, statewide commu- Shield of Michigan. Insurers are @jaybgreene nity outreach manager with Michi- gan Consumers for Healthcare, said the large number of Michigan IS YOUR WORKPLACE COOL? THEN NOMINATE IT residents who Crain’s biennial Cool Places to Work in Michigan awards returns this year, and signed up for once again Crain’s is working with Best Companies Group of Harrisburg, Pa. Obamacare The competition has one questionnaire for employers, another for employees. health policies is The results will determine who qualifies for Cool Places designation. a tribute to the Best Companies supplies all participating companies — regardless of hundreds of peo- whether they win the Cool Places recognition — with a Best Companies ple who assisted Warren Group employee feedback report based on employee responses to the 72- the uninsured question survey. The report can help company executives identify strengths with the application process. and weaknesses in their company culture and practices. “It is a fitting tribute to the hard To be considered for Cool Places to Work in Michigan, companies must work of navigators, assisters, register at www.coolplacestoworkmi.com by May 23. Other important dates, health care providers, and many samples of the surveys and other information are on the website. other community partners state- Once registered, companies will be invited to participate in the surveys. wide,” said Warren, who also is Businesses and nonprofits can apply. Applicants must have a minimum of state director of Enroll Michigan. 15 employees working in Michigan and have been in business at least one Warren said Enroll Michigan has year, among other criteria. EEXECUTIVEXECUTIVE CCALENDARALENDAR worked with hundreds of organiza- Companies pay a fee based on company size to Best Companies to cover tions, including the city of Detroit, survey costs. The cost ranges from $610 to $895 for online surveying, and Regional event dates, locations and contacts, all in one place. Detroit Medical Center, Michigan Prima- $765 to $1,660 for paper surveying. crainsdetroit.com/executivecalendar ry Care Association, Michigan Health & Hospital Association, St. John Provi- dence Health System, St. Joseph Mercy Health System, Beaumont Health Sys- tem and Oakwood Healthcare. More than 1,400 events were held over the past several months to reach more than 111,000 people, Warren said. you decide what to spend on benefits. Outgoing HHS Secretary Kath- leen Sebelius said she was happy your employees decide what coverage they want. with the overall numbers of Ameri- cans gaining health insurance. She said many now have security with the knowledge their policy won’t be it’s that simple. canceled due to a pre-existing condi- tion. EXCHANGE SOLUTIONS™ During the first six months of Obamacare enrollment, nearly 13 TheTh re’e s a new solution to provovididing groroup bbenefiefit covererage, and it’it svs very simple, CAMBRIDGE CONSULTING GROUP million people signed up for cover- rear llyly. You givg e your employeyees a ses t ammountt of moneey to spend on benenefitss– – it’s age overall, including 5.4 million like a benefitss allowancece – and theey use that mmoney too shohop for the combim nationon of on healthcare.gov, 2.6 million coverae gee that meetee s theiir inndividuall needss. Employees arare empowereredbd by more plan through state exchanges and 4.8 chooices. And yoy u’re ablele to geet cruciaial coontrtrol overcr cososts. million through Medicaid and the CamC bridge bbringgs bennefitfits, technonology and decicisioon suppportor tools in a simple, Children’s Health Insurance Program. cconvenienent annd easy to implementn packaage. AdAdd it upp, and theth advvantagages are cclearar. “Americans continue to sign up for Medicaid coverage,” she said. 248.743.4300 “We hope more states come on Introducing Cambridge Exchange Solutions. Solutions for all. ccgexchangesolutions.com board.” Some 19 states have rejected Medicaid expansion under the Af- ©2014 Cambridgidgeidggeggg Consulting GrouGroup,rouup,upp, LLC. All Rights g ts Reserved.Re fordable Care Act. 20140505-NEWS--0024-NAT-CCI-CD_-- 5/2/2014 11:37 AM Page 1

Page 24 CRAIN’S DETROIT BUSINESS May 5, 2014 Major employers push state to back ban on LGBT discrimination

BY CHRIS GAUTZ includes Blue Cross Blue Shield of CAPITOL CORRESPONDENT Michigan, Consumers Energy, Dow Chemical Co., Google Inc., Herman Miller A coalition of businesses in Inc., Padnos, Steelcase Inc., Strategic Michigan is coming together to Staffing Solutions and Whirlpool Corp. ask lawmakers to add sexual ori- AT&T instituted an internal pol- entation and gender identity to the icy about sexual orientation and state’s civil rights act. gender identity in 1975, Murray The Michigan Competitive Work- said. Many coalition members also force Coalition wants to make have had similar internal policies Michigan the 22nd state to do so, so for years, as have a number of that it no longer will be legal for an communities. employee to be fired or not hired “The big, national companies solely because he or she is gay. have long recognized this as a way Jim Murray, president of AT&T to attract job talent,” he said. Michigan and co-chair of the coali- It’s not about attracting gay em- tion, said he of- ployees, Murray said, but about be- ten hears from ing a state that welcomes diversity the Legislature and one in which younger employ- that it does not ees want to work and create busi- want to put nesses. more regula- Business Leaders for Michigan also tions or restric- has called for the law to be tions on busi- changed and included it in the nesses. But this group’s updated Michigan Turn- is a case in around Plan, released last month. which the busi- “Simply put, Michigan needs to Murray ness community grow its population — and people is uniting to make it clear it sup- have many choices in a global econ- ports such a change, he said. omy where to live and work,” said “It’s important for job retention Kelly Chesney, Business Leaders’ and attraction,” Murray said. vice president of marketing and Along with AT&T, the coalition communications. “We don’t want our policies to prevent them from choosing Michigan.” Murray said the public view on this issue has evolved immensely in the past five years, and he hopes lawmakers will act during this leg- islative session. Republican leaders have indicat- ed they are open to discussing the issue. But Gov. Rick Snyder has been unwilling to take a position, saying only he would look at it if the Legislature presented it to him. Murray said he doesn’t see that as an unreasonable position. “It’s our job to put it on his radar screen, and that’s what we’re doing,” he said. Murray has been talking with lawmakers from both sides of the aisle this past year, and he said he is encouraged that no one has closed the door on allowing such a bill to move forward. Murray said he also plans to have an event at the Detroit Regional Chamber’s Mackinac Policy Conference this month to encourage support for the issue. Serving as co-chairs of the coalition along with Murray are Kary Moss, executive director of the Amer- ican Civil Liberties Union of Michigan, and Brian Walker, CEO of Herman Miller. Murray credited the ACLU with doing a lot of the groundwork on building the coalition and said he then began calling friends in the business community to join. “Working alongside our state policymakers,” Walker said, “leaders in Michigan’s business community know that updating the El- liott-Larsen Civil Rights Act is the right thing to do, it is the smart thing to do, and now is the right time to do it.” Chris Gautz: (517) 403-4403, [email protected]. Twitter: @chrisgautz 20140505-NEWS--0025-NAT-CCI-CD_-- 5/2/2014 12:27 PM Page 1

May 5, 2014 CRAIN’S DETROIT BUSINESS Page 25 DTE meeting: Earnings up; clean energy groups protest

BY JAY GREENE and Ann Arbor, Luna said. 23 power plants fueled by coal and CRAIN’S DETROIT BUSINESS Bodipo-Memba said DTE is for- owned by Consumers Energy Co., Marissa Luna of Engage Michigan said mulating a response to the letter. DTE, Lansing Board of Power and DTE Energy Co. shareholders at the He said DTE has engaged in discus- Light, Holland Board of Public Works, company’s annual meeting, at a pri- DTE should invest more into solar and sions with many environmental We Energies and Michigan State Uni- vate resort last week in Pennsylva- groups in the past over its energy versity that supplies about 65 per- nia, were greeted by good financial other renewable energy sources. policy. cent of the state’s total energy pro- news but also by environmental “Investing more in clean energy duction. Renewable supplies about protesters who called for the state’s technologies will attract more busi- 8 percent, which is on track to hit 10 largest utility to double down on its Hawley, Pa., were five protesters By 2015, DTE expects to invest nesses to our state and create jobs percent by 2015, according to the green energy investment. with signs that called for DTE to about $1.3 billion to achieve its while acting as a safeguard in pro- state’s renewable energy mandate. DTE (NYSE: DTE) reported first- “Make the Switch” and “Go Clean.” state-mandated 10 percent goal. tecting the Great Lakes and public Over the last 40 years, DTE has re- quarter net income of $326 million, “We’re primarily objecting to Luna said DTE historically has health,” said Eric Keller, campaigns duced annual particulate matter or $1.84 per share, compared with DTE’s decision to continue shut- held its shareholder meetings in director at Michigan Clean Water emissions by 95 percent, sulfur diox- net income of $234 million, or $1.34 ting the public and ratepayers out Detroit. Last year, however, DTE Action, in a statement to Crain’s. ide emissions 78 percent and nitro- per share, for the same period in of the decision-making process, as moved its meeting to New York “DTE’s investments in renew- gen oxide emissions 77 percent be- 2013. Operating revenue for the well as urging them to do more City and this year to the Pennsyl- able energy and energy efficiency low 1974 levels. During this same first quarter was $3.9 billion com- than the bare minimum when it vania resort town. have proven to be cost effective period, total annual generation in- pared with $2.5 billion for the same comes to investing in clean energy Bodipo-Memba said DTE located and profitable, which is a win-win creased 16 percent, DTE said. period in 2013. technologies,” said Marissa Luna, its meeting in Pennsylvania this for shareholders and ratepayers,” From a financial standpoint, The company said cold weather new media specialist at Engage year because it wanted to show its Keller said. DTE is projecting strong earnings. meant customers used more ener- Michigan, which represents the board of directors the company’s By 2015, DTE plans to generate a This fiscal year, for example, DTE gy, resulting in the uptick. Clean Energy Now coalition. investment in the Bluestone total of 22 megawatts of solar pow- said it is projecting operating earn- DTE’s revenue and net income The coalition, which lodged a Pipeline operations. er, which includes 15 megawatts ing share prices at $4.20 to $4.40 per has been on the rise during the similar protest last year, includes “The meeting went very well, and from utility-owned plants and 7 share. past two years. For example, DTE the Sierra Club, Clean Water Action, we certainly don’t view it as a megawatts from customer-owned “We are off to a good start finan- reported net income of $661 mil- Environmental Law and Policy Center, protest,” said Bodipo-Memba, not- projects. cially, as well as operationally, in lion in fiscal 2013 on operating rev- Michigan Land Use Institute, Union of ing that Sierra Club members spoke But Luna said DTE should in- the first quarter,” said Peter Olek- enue of $9.7 billion compared with Concerned Scientists and Michigan at the meeting. “The evening before, vest more into solar and other re- siak, DTE Energy senior vice pres- 2012 net income of $610 million on Environmental Council. a couple of members of the Sierra newable energy sources. She said ident and chief financial officer, in $8.8 billion in operating revenue. Alejandro Bodipo-Memba, DTE’s Club met with management and had DTE has one of the most coal-de- a statement. “Extremely cold weather in the manager of media relations, said a productive conversation.” pendent energy portfolios of any “DTE Energy will continue to fo- first quarter drove exceptionally DTE has invested the most of any Last week, the Clean Energy utility in the country. cus on maintaining solid earnings high energy demand, which in utility company in Michigan in re- Now coalition delivered a letter Public health experts have said and cash flow along with a strong turn, shaped our financial result newable energy. DTE now produces with more than 150 signatures pollution from coal-fired power balance sheet, while providing our compared with last year,” said Ger- 9.5 percent of its energy from wind, from small-business owners and plants can cause asthma, respira- customers with clean, safe and reli- ry Anderson, DTE Energy chair- solar and other renewable sources. environmental groups that ex- tory illnesses and cardiovascular able energy at an affordable price.” man and CEO, in a statement. “We are continuing to work in pressed support for more renew- disease, among other conditions. Jay Greene: (313) 446-0325, But lining the road up to the that space and add more, primari- able energy and energy efficiency But it is not just DTE’s 11 coal- [email protected]. Twitter: @jay- meeting at The Lodge at Woodloch in ly in wind,” Bodipo-Memba said. to DTE’s headquarters in Detroit fired plants. Michigan has a total of bgreene

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Page 26 CRAIN’S DETROIT BUSINESS May 5, 2014 35% of state hospitals merit ‘A’ grades, Leapfrog Group’s safety report says

CRAIN NEWS SERVICE In Michigan, 28 hospitals re- a safe environment,” Leapfrog Pres- ceived an A, 21 hospitals scored B, ident and CEO Leah Binder said. A leading hospital quality sur- 26 scored C, and five scored D. No Despite the progress, Binder vey has found 35 percent of Michi- Michigan hospitals received an F. said, hospitals must remain vigi- gan hospitals are rated “A” when Botsford Hospital in Farmington lant in their efforts to reduce med- it comes to quality metrics such as Hills and four of Detroit Medical Cen- ical errors, which are estimated to how well hospitals avoid errors ter’s hospitals were among those re- result in more than 400,000 patient and patient harm. ceiving A scores by Leapfrog. deaths a year, according to a study Twenty-eight of 80 in the state “Botsford Hospital nurses, published last September in the were rated “A,” the highest rating physicians and other clinicians Journal of Patient Safety. available in The Leapfrog Group safe- work in partnership continually to Critics of the safety rating pro- ty scores. Nationwide, Leapfrog improve safety and quality for our gram, including the authors of an found nearly a third of the nation’s patients,” said Botsford CEO Paul article published in the Journal of hospitals surveyed improved their LaCasse, D.O., in a statement. Hospital Medicine in January, ar- performance at least 10 percent DMC hospitals receiving A’s gue that Leapfrog’s scoring system since 2012. were DMC Harper/Hutzel, DMC Huron is biased against the nearly half of Maine hospitals scored the high- Valley-Sinai, DMC Detroit Receiving the more than 2,500 hospitals that est, with 74 percent, or 14 of 19 hos- and DMC Sinai-Grace. chose not to participate in pitals with an A rating, said the “We are committed to continual- Leapfrog’s survey. Leapfrog report. ly monitoring and improving the “Leapfrog is one of numerous The letter grades — A through F care we provide. Patient safety is organizations that provide reports — from the Leapfrog Group, a the top focus for us — one that re- and rankings of hospital perfor- Washington, D.C.-based not-for- quires diligence with every pa- mance,” Nancy Foster, the Ameri- profit organization that represents tient, every day,” said DMC CEO can Hospital Association’s vice presi- large employers and other health Joe Mullany in a statement. dent of quality and patient safety care purchasers, have been a source Other Southeast Michigan hos- policy, said in an email. of frustration for hospitals that pitals receiving A’s include Beau- “These organizations use differ- don’t do well, whose leaders argue mont Hospital, Troy; Chelsea Com- ent quality measures, performance that the scores unfairly portray the munity Hospital; Mercy Memorial data and methodologies to calculate quality of care at their facilities. Hospital System, Monroe; Providence scores, some of which are more reli- The Hospital Safety Score has Hospital in Southfield; St. John Hos- able than others. Hospitals are us- been issued twice a year based on pital and Medical Center, Detroit; St. ing the reliable quality measure- an analysis of publicly available Joseph Mercy Hospital, Ann Arbor; ment data that is available to drive safety data from Centers for St. Joseph Mercy Oakland, Pontiac; improvement and that has resulted Medicare & Medicaid Services’ Hospi- St. Mary Mercy Hospital, Livonia; in decreases in readmissions, de- tal Compare, the American Hospital and the University of Michigan Hospi- creases in early elective deliveries, Association and the Leapfrog tals and Health Centers, Ann Arbor. decreases in infection rates and oth- Group’s annual hospital survey. The average (mean) hospital er significant improvements.” In the latest report card, 804 hos- performance improved 6.3 percent See www.hospitalsafetyscore.org pitals received an A, 668 hospitals since the score was launched in for the report. received a B, 878 hospitals re- June 2012. Reporting by Jay Greene of ceived a C, 150 received a D, and 22 “The data tells us that more hos- Crain’s Detroit Business and Steven hospitals received an F. pitals are working harder to create Ross Johnson of Modern Healthcare

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May 5, 2014 CRAIN’S DETROIT BUSINESS Page 27

BUSINESS DIARY ACQUISITIONS & MERGERS facturer of chrome-plated plastic Towne Square, Southfield. Website: ness Fitness Check Up, a tool to assess NEW SERVICES parts, is adding 215,000 square feet to firstmerit.com. the needs of small-business members , Detroit, a social Gameplans LLC, Rochester Hills, a hu- The Powers That Be its 205,000-square-foot production and connect them to local resources. man resources firm, launched a new media agency, and Driven Solutions plant in Irapuato, Mexico. The expan- NAME CHANGES Website: rrc-mi.com. website to highlight its expanding ser- Inc., Ferndale, an advertising and sion, expected to be operational by marketing firm, merged to form Dri- Lippitt O’Keefe PLLC, Birmingham, 2XL Co. Inc., Auburn Hills, a market- vices at gameplansllc.com. 2015, is expected to provide complete ing, advertising and public relations ven + The Powers That Be, a branding part production capability, including changed its name to Lippitt O’Keefe Domino’s Pizza Inc., Ann Arbor, is in- and social media agency, 320 W. Nine company, introduced a marketing injection molding, chrome plating and Gornbein PLLC. program for lawyers and law firms. tegrating Google Wallet with its An- Mile Road, Suite B, Ferndale. Web- assembly. Website: srgglobal.com. Elements include analysis of competi- droid ordering app so Domino’s cus- sites: tptbagency.com, drivensolution NEW PRODUCTS tive marketing campaigns and tomers who have an Android device sinc.com. can pay for their online orders using MOVES The Rochester Regional Chamber of prospective client wants and needs, and the definition of target markets Google’s free mobile payment system. CONTRACTS FirstMerit Corp. Michigan moved its Commerce, Rochester, with the Michi- based on the kind of work in which Domino’s customers can set up an ac- Michigan headquarters from 28001 gan Small Business Development Cen- count within Domino’s mobile app or ITeknik Holding Corp., Commerce the individual lawyer specializes. Cabot Drive, Suite 250, Novi, to Two ter, Grand Rapids, launched the Busi- at google.com/wallet. Township, a provider of wholesale Website: 2xlcompany.com. and retail telecommunications services and products through its Send Global subsidiary, signed a stock purchase agreement to sell a majority of Changing the odds its outstanding stock to Axiologix Inc., Atlanta, a technology and services organization. The transaction is expect- in our clients’ favor ed to close by June 7. Websites: iteknik.com, axiologix.net. Con-way Freight, Ann Arbor, a less- than-truckload carrier and subsidiary of Con-way Inc., contracted with Wabash Composites, a division of Wabash National Corp., Lafayette, Ind., to retrofit Conway’s line haul trailer fleet with Wabash’s DuraPlate AeroSkirts to increase fleet fuel efficiency and reduce carbon emissions. Installation is expected to be completed by August. Website: con-way.com. Franco Public Relations Group, De- troit, added clients Grow Michigan LLC, Plymouth, an investment firm; Brooks Kushman PC, Southfield and Los Angeles, an intellectual property Securities fraud and shareholder rights and technology law firm; The Oakland Automotive supplier disputes Shareholder and partnership disputes Art Novelty Co., Ferndale, a craft cock- Commercial and business lawsuits Family law and probate litigation tail bar; Vinology, Ann Arbor, a wine bar and restaurant; and The Bird & the Bread restaurant, Birmingham. Web- site: franco.com 248-841-2200 TRW Automotive Holdings Corp., Livo- millerlawpc.com nia, will supply its belt drive electric power steering system to a next-generation midsize SUV being launched by Chinese automaker Great Wall Motor Co. in 2015. Website: trwauto.com. Michigan Health & Hospital Keystone Center, Okemos, is using Reg- istryMetrix by ArborMetrix Inc., Ann Arbor, to measure clinical performance in obstetrics for improving patient safety and quality of care at 60 hospitals in the state. Websites: arbormetrix.com, mhakeystonecenter.org. Signature Associates Inc., Southfield, was named the exclusive real estate representative for Black Rock Bar and Grill, Novi and Hartland. Websites: signatureassociates.com, blackrock sizzlingsteakhouse.com. Altair Engineering Inc., Troy, a provider of computer-aided engineering and high-performance computing software and services, announced that automotive manufacturer Tower International Inc., Livonia, selected Altair’s Compute Manager to streamline access to dis- tributed resources. Websites: altair.com, towerinternational.com. ProQuest LLC, Ann Arbor, announced that Cooperating Libraries in Consor- tium, St. Paul, Minn., has subscribed to Intota, ProQuest’s cloud-based li- brary services platform. CLIC is im- plementing it in phases, beginning with the Summon discovery service. Website: proquest.com. EXPANSIONS SRG Global Inc., Warren, a Guardian Industries Corp. company and manu-

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Page 28 CRAIN’S DETROIT BUSINESS May 5, 2014

PEOPLE FINANCE MANUFACTURING SERVICES Shawn Coyle to vice president, re- Marc Gorski to director of engineering IN THE SPOTLIGHT tail network solu- operations, Quality Metalcraft Inc., tions sales for Livonia, from director of engineering, Angela Hospice Home Care Inc., Livonia, has named Mary Beth North America Radar Industries Inc., Warren. and global strate- Prochnow Moning its acting gic account execu- MARKETING president and tive, MSX Interna- CEO. She tional Inc., succeeds Detroit, from se- Sister Mary nior vice presi- Giovanni dent of manufac- Monge, who Coyle turer relations, had been CEO Penske Automo- Deligiannis Buttrick since founding Wallis Prell tive Group Inc., Bloomfield Hills. Angela Hospice Eric Wallis to senior consultant, Great Roger Scott to new-vehicle sales rep- William Deligiannis to first vice presi- resentative, Detroit Custom Coach, in 1985. Lakes operations team, Goldner Asso- dent and director of fair lending, Oak Park, from sales representative, Giovanni is ciates Inc., Wixom, from groundwater Flagstar Bank, Troy, from director of Better Business Bureau of Southeast stepping into program director, Waste Management client services, Thomas Compliance Moning the role of CEO Michigan, Southfield. Associates Inc., Chicago; also Tony Inc., Wixom. Also, Dawn Prell to se- Cunningham Hutson emeritus and will continue to be nior project compliance specialist, Trevor Schleicher to health care divi- Buttrick to executive vice president sion director, Arrow Strategies LLC, active in the organization. from senior project geologist, NTH and chief information officer, from se- Bingham Farms, from vice president, Consultants Ltd., Northville. nior vice president, global technology Moning, 53, has managed daily Preferred Solutions Inc., Northville. and operations, Bank of America operations for the past eight years as executive director and has Elizabeth Bock to senior general man- Corp., Charlotte, N.C. ager, Life Time Athletic, Bloomfield worked with Giovanni since 1993 Township, from senior general manag- HEALTH CARE in positions of progressive er, Life Time Fitness, Rochester Hills. responsibility. Moning earned a Bachelor of Science in psychology from EOPLE GUIDELINES Madonna University, Livonia. She P holds a nursing home Announcements are limited to Edmunds Gawley administrator’s license, as well as management positions. Email them Chris Cunningham to director, strate- hospice and palliative care to [email protected] gic services, Carbon Media Group administrator certification. or mail notices to Departments, LLC, Bingham Farms, from vice presi- Hiltz Mobley Crain’s Detroit Business, 1155 dent, digital portfolio management, Gratiot Ave., Detroit, MI 48207- signer, McCann Worldgroup’s Com- Susan Hiltz to director of public af- Universal McCann, Birmingham; also monwealth, Detroit. fairs, AAA Michigan, Dearborn, from 2997. Releases must contain the Swanson Tadian Linde Hutson to vice president, ac- regional managing director, central person’s name, new title, company, count solutions, from client business Karen Swanson, M.D., to chief medical region, Advertising Council Inc., War- city in which the person will work, partner, Universal McCann, Birming- NONPROFITS officer, The Physician Alliance, St. Clair ren. former title, former company (if not Shores, from physician, Berkley Pri- ham; and Rachel Edmunds and George Westerman to associate direc- promoted from within) and former Keith Mobley to director of corporate mary Care PLC, Huntington Woods. Michelle Gawley to account director, tor of individual and estate giving, city in which the person worked. from client services manager, Organ- contributions and community rela- Judy Tadian to senior marketing repre- Children’s Hospital of Michigan Foun- Photos are welcome, but we cannot ic Inc., Troy. tions, Auto Club Group, Dearborn, sentative, Americare Medical Inc., dation, Detroit, from director of devel- guarantee they will be used. Troy, from sales manager, Detroit Oxy- Rudy Pokorny to art director, The Quell opment, Affirmations Lesbian Gay from claim manager, AAA Michigan, gen & Medical Equipment Co., Warren. Group, Troy, from presentation de- Community Center Inc., Ferndale. Dearborn.

CALENDAR

registration will be $120 per person. Doyle, consultant, Anne Doyle Strate- TUESDAY THURSDAY Contact: Kacey Anderson, (313) 446- gies for Leaders, and author of Power- MAY 6 MAY 8 MICHIGAN HISPANIC CHAMBER’S 0300; email: [email protected]; ing Up: How America’s Women Achiev- website: crainsdetroit.com/events. ers Become Leaders. The Dearborn Re-Shoring: Can Mid-Market Compa- 2014 Michigan Infrastructure Confer- 2014 ECONOMIC FORUM Inn, Dearborn. $50 members, $60 nies Bring Manufacturing Back Home? ence. 7:30 a.m.-4 p.m. American Coun- Join the Michigan Hispanic Ambassadors’ Dialogue 2014: Update nonmembers, $35 full-time students. 11 a.m.-1:45 p.m. Canada U.S. Business cil of Engineering Companies of Chamber of Commerce 8-10 a.m. Contact: (866) 385-1784; email: Michigan, Urban Land Institute on U.S.-Republic of Korea Economic Association. With Kevin Barrentine, di- May 16 at the Detroit Athletic Club, [email protected]; website: rector, Deloitte CRG. College for Cre- Michigan, American Society of Civil Relations. 11:30 a.m.-1:30 p.m. May 15. womcomdetroit.org. ative Studies, A. Alfred Taubman Cen- Engineers Michigan. Focus is on the Detroit, for the 2014 Economic Detroit Economic Club. With Ahn Ho- ter for Design Education, Detroit. $50 connection between infrastructure Forum, with the theme “Hispanic Young, Republic of Korea ambassador CUSBA members, $65 nonmembers. improvements and business attrac- Business Trends: Local and Global to the United States, and Sung Kim, Spring Health Care Conference. 8:30 Contact: Mark High, (313) 223-3650; tion/redevelopment opportunities in Market Reach.” U.S. ambassador to the Republic of Ko- a.m.-3 p.m. May 16. Michigan Society email: [email protected]; the state. With keynote speaker Lt. Appearing at the breakfast event rea. Cobo Center, Detroit. $45 DEC for Healthcare Planning and Market- website: cusbaonline.com. Gov. Brian Calley; Kirk Steudle, direc- will be Sandy Baruah, president members, $55 members’ guests, $75 ing. Focus on developing strategies tor, Michigan Department of Trans- and CEO of the Detroit Regional nonmembers. 11:30 a.m. speaker recep- using data analytics to increase pa- portation; Liam Kelly, principal and tion open only to board, life and gold tients and profitability; maximizing Deal Incubator. 4-6 p.m. Hertz Schram Chamber, and Ellen Hughes- growth through public and private ex- partner, KPMG LLP; Michael Horst, se- Cromwick, chief global economist, members. Contact: Detroit Economic PC. For entrepreneurs and investors. nior vice president, Urban Land Insti- changes; and creating distinction in Ford Motor Co. Club, (313) 963-8547; email: info@econ Moderated by Ken Silver, partner, tute Robert Larson Leadership Initia- club.org; website: econclub.org. patient experience. Targeting health Hertz Schram PC. Grand Circus, De- tive; others. Kellogg Center, Michigan Registration begins at 7:30 a.m. care marketers and strategists who troit. Free. Contact: Ken Silver, (248) State University, East Lansing. $85 Tickets are $75 for members, work with physician groups, hospitals 335-5000; email: ksilver@hertzschram government agency representatives, $100 for nonmembers. Business Law: Learning From the Past, and health plans. Sheraton Detroit .com; website: hertzschram.com. $175 members of the hosting organiza- Sponsorship levels are $1,500- Navigating the Future. 1-5 p.m. May 15, Novi Hotel, Novi. $75 members, $120 tions, $250 nonmembers. Contact: $5,000. RSVPs must be made by 8 a.m.-noon May 16. Michigan Defense nonmembers. Contact: Liz Conlin, (517) 332-2066; website: acecmi.org. May 12. Trial Counsel. Including sessions on (734) 327-6606; email: liz.conlin@re WEDNESDAY the Michigan Arbitration Act, the Tele- group.us; website: mshpm.org. For information, call Barbara Lange phone Consumer Protection Act, the MAY 7 at (248) 792-2763, ext. 101, impact of Detroit’s bankruptcy, em- UPCOMING EVENTS email her at [email protected] or 2014 Detroit ployment and business law updates, Complying With U.S. Export Controls visit mhcc.org. business succession planning and data Tigers Outlook. CALENDAR GUIDELINES and the Export Control Reforms. 7:30 security breaches. With MDTC Presi- 11:30 a.m.-1:35 p.m. If you want to ensure listing online a.m.-6 p.m. May 13-14. 7:30 a.m.-4 p.m. dent , senior share- Detroit Economic email: [email protected]; Raymond Morganti and be considered for print May 15. East Michigan District Ex- holder, Siemion Huckabay PC; Jason Club. With David website: eastmichigandec.org. publication in Crain’s Detroit port Council. Workshop on export Bank, leader of bankruptcy and re- Dombrowski, pres- Business, please use the online control issues directed toward ex- structuring practice, ident, CEO and Kerr Russell and porters, compliance officers, intellec- Crain’s 2014 General and In-House Weber PLC; Kurt Heise, state represen- calendar listings section of general manager, . 2-7:30 p.m. . tual property lawyers, financial ser- Counsel Summit May 13 tative, R-Plymouth; and others. www.crainsdetroit.com. Here’s Detroit Tigers; and Crain’s Detroit Business; Association vice providers and accountants Atheneum Suite Hotel, Detroit. Regis- how to submit your events: Brad Ausmus, of Corporate Counsel, Michigan chap- involved in international business, lo- tration fees range $75-$395; other fees From the Crain’s home page, click Tigers manager. ter; State Bar of Michigan-Business gistics professionals and others. With apply to optional activities. 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Fill out the form as DEC members, $55 members’ guests, Gem Theatre, Detroit. $175-$510; three- strategies. With keynote speaker Mary Platinum-level sponsor: Crain’s De- instructed, and then click the $75 nonmembers. 11:30 a.m. speaker re- day or partial registration available. Ann Hynes, senior counsel, Dentons. troit Business. AWC Detroit will hon- “Submit event” button at the bottom ception open only to board, life and gold No refunds after May 6. Deadline for Westin Book Cadillac, Detroit. $100 or three women or organizations that of the page. That’s all there is to it. members. Contact: Detroit Economic payment by check is May 6. Online per person ($90 if purchased in groups make significant differences in peo- More Calendar items can be found Club, (313) 963-8547; email: info@econ- registration deadline is May 9. Con- of 10 or more). Preregistration closes ple’s lives through a communications at www.crainsdetroit.com. club.org; website: econclub.org. tact: Troy Brownrigg, (248) 421-9876; at 5 p.m. May 8. If possible, walk-in medium. With keynote speaker Anne 20140505-NEWS--0029-NAT-CCI-CD_-- 5/2/2014 6:22 PM Page 1

May 5, 2014 CRAIN’S DETROIT BUSINESS Page 29 DIA: Upcoming exhibit to showcase Rivera, Kahlo in Detroit ■ From Page 1 Rivera, seen as one of the great- Far left: “Cartoon of est muralists of his time, was a very Manufacture of important influence on the artists Poisonous Gas Bombs” who became abstract expression- (Detroit Industry north wall), 1932, charcoal. ists, Beal said. Detroit Institute of And Kahlo’s development as an Arts artist took place when she was here in Detroit. Renowned as not only a Near left: Frida portrait artist but as a symbol of (Frieda) Kahlo, “Frieda feminist strength, Kahlo’s works and Diego Rivera,” range in style from folk art to surre- 1931, oil on canvas alist. “That was the period of when she went from being a beginning artist to an artist with a rec- ognizable style,” Beal said. The DIA does- n’t yet have attendance projections for the exhibition, which will be ti- tled “Diego Riv- Beal era and Frida Kahlo in Detroit,” but it expects COURTESY OF SAN FRANCISCO MUSEUM OF MODERN ART strong interest. “We hope that the fact that it can tracted just shy of 87,000 people. hibition, isn’t expected to reach only be in Detroit will bring people “American Chronicles: The Art of the same attendance as Fabergé, in from across the country,” Beal Norman Rockwell,” hosted in 2009, Beal said. That exhibition, which said. drew nearly that many people, and runs March 9 to June 1, features To help attract patrons from “Monet to Dalí: Modern Masters suits of armor and meticulously across the U.S., the DIA is encour- From the Cleveland Museum of crafted sword blades, as well as aging other major arts and cultur- Art,” which ran October 2008 to paintings of nature and finely COURTESY OF DETROIT INSTITUTE OF ARTS al organizations to plan comple- January 2009, wasn’t far behind. crafted tea ceremony objects. mentary programming. building process. The DIA’s current exhibition, Sherri Welch: (313) 446-1694, The Detroit Symphony Orchestra, ART THAT DRAWS The director of the San Francis- “Samurai: Beyond the Sword,” [email protected]. Twitter: Music Hall Center for the Performing co Museum of Modern Art, howev- which it also counts as a major ex- @sherriwelch Arts and Michigan Opera Theatre — The Detroit Institute of Arts expects the “Diego Rivera and Frida Kahlo er, “loaned this art to show soli- in partnership with the Macomb in Detroit” exhibit it’s planning for darity,” Beal said. Center for the Performing Arts — are March 15-July 12, 2015, to draw Planning for the exhibit began among those planning to host re- large crowds from around the several years ago, before the con- lated events during the exhibi- country. cept of selling any of the city-owned MARKET PLACE tion’s March 15-July 12, 2015 run. Some of the museum’s recent museum’s artwork to pay Detroit’s A tribute to the city’s manufac- exhibitions, listed by attendance debts was even a thought. So it’s a INVESTMENT OPPORTUNITIES MISCELLANEOUS turing base and labor force of the records: happy coincidence that, according Ⅲ 1930s, the “Detroit Industry” mu- “Rembrandt and the Face of to the DIA, none of the art planned û û SELL US YOUR OLD INVENTORY rals were designated by the National Jesus” for the exhibition is on the list of INVESTMENTS We buy all kinds of surplus and Park Service as a national historic Nov. 20, 2011-Feb. 12, 2012: city-purchased art that was ap- Investor selling "seasoned" Mortgage Notes obsolete inventories, raw materials, machinery, equipment and scrap. landmark last month. They are con- 116,392 praised by New York City-based (all or part) and possibly some rentals. sidered the country’s finest modern Ⅲ “Fabergé: The Rise and Fall” Christie’s Appraisals Inc. It’s complete- Great Returns ! monumental artwork devoted to in- Oct. 14, 2012-Jan. 21, 2013: ly protected from any controversy. Interested parties email to: dustry and are considered by many 86,977 Beal said he paid personal visits [email protected] JP Kraft Jr. 734-427-6600 | [email protected] scholars to be Rivera’s greatest ex- Ⅲ “American Chronicles: The Art to potential lenders in Mexico City tant work, the national organiza- of Norman Rockwell” to secure loans of a handful of LEGAL SERVICES tion said in a news release. March 8-May 31, 2009: 86,472 pieces, but most in the exhibition REAL The couple’s relationship was Ⅲ “Monet to Dalí: Modern are from U.S. museums — which STOCK BROKER famously tumultuous; they were Masters From the Cleveland ask only for fees to cover the costs of MISCONDUCT? married and divorced, and remar- Museum of Art” moving and caring for the art — ESTATE ried. The murals in Detroit be- Oct. 12, 2008-Jan. 18, 2009: and private collections in the U.S., Has Your Stock Broker came even more significant after 83,753 he said. WATERFRONT PROPERTY Caused You the controversial artist’s mural All told, the Rivera and Kahlo in Substantial Losses? project in Rockefeller Center in Along with approximately 80 Detroit exhibition, when complet- STOCK LOSS New York City was called off and works of art, the exhibition will in- ed, will be a seven-figure invest- BEST DEAL destroyed in 1934. clude supporting materials related ment for the DIA, Beal said. That In Harbor Springs BROKER AT FAULT Last year, newspapers in Mexi- to Depression-era economic condi- cost is funded from a restricted We’re Committed To co City had been expressing great tions, the industrial life of Detroit fund meant to support major exhi- Helping You Recover! concerns about the future of the and its workers and the controversy bitions — a fund that is separate Rivera murals at the DIA, given surrounding the murals. Pho- from the museum’s operating bud- CONTACT: tographs of the two artists at work get, which is $31 million this year. alarmist rumors about the extent PETER RAGEAS to which they were vulnerable as and at play will accompany the ex- Every year, the museum plans other artwork at the museum was hibit. two major exhibitions, but even ATTORNEY AT LAW being appraised, Beal said. He met While the Mexican museum within that category there are 313-962-7777 with the consul general for Mexico viewed its loan of a Rivera piece as variations on the number of people • Ultimate Family Compound FREE CONSULTATION an opportunity to get more expo- • Private: 8 Bedrooms, 9 Baths last fall to assuage concerns. who will attend. • 373 Feet Sandy Lake Michigan Despite the recent politics and sure for the man it sees as the great- “To us, the major exhibition is • Complete Furnishings Included turmoil surrounding the DIA and est artist of modern Mexico, the the form, shape and amount of • $2,950,000 • Many other waterfront homes from $300,000 the sanctity of the museum’s art- loan from the San Francisco Muse- time it takes to put it together,” JOB work amid Detroit’s bankruptcy, um went beyond gaining exposure Beal said. Joe Blachy the museum has been successful in for Kahlo, who is now held in high- Among the museum’s major ex- (231) 409-9119 er esteem in the U.S. and Europe FRONT securing the loan of pieces by both hibits in recent years, “Rembrandt Email: [email protected] Website: joeblachy.com artists, including some painted in than Rivera, Beal said. and the Face of Jesus,” which ran Call anytime between 7am & 10pm 7 days a week! other locations. “We got the San Francisco Mu- November 2011 to February 2012, 420 Howard St., Petoskey, MI 49770 MANAGEMENT Those works include a 1931 seum loan as a specific response to was the top draw with 116,392 peo- AUTOMOTIVE SALES MANAGER Kahlo portrait of herself and our current situation,” he said. ple, according to the DIA. Comcast Spotlight, the advertising sales division of Call or email today for information Comcast Cable, is currently seeking an Automotive The West Coast museum build- Rivera as newlyweds, which will And “Fabergé: The Rise and on a custom advertising plan! Sales Manager for the Detroit Market, located in be on loan from the San Francisco ing is closed for several years for a Fall,” which was shown October Warren, Michigan. Qualified candidates will have a bachelor’s degree (or its equivalent) in an applicable Museum of Modern Art, and Rivera’s building expansion, Beal said, and 2012 to January 2013 and show- [email protected] field and 5-7 years of experience in media or digital “Flowered Barge,” from the Museo typically museums suspend loans cased imperial Russian treasures sales. Apply online at http://www.comcast.jobs/9594. 313.446.6068 Comcast is an Equal Employment Opportunity/ Dolores Olmedo in Mexico City. of artwork when they go into a re- made by the House of Fabergé, at- Affirmative Action/Drug-Free workplace employer. 20140505-NEWS--0030,0031-NAT-CCI-CD_-- 5/2/2014 7:36 PM Page 1

Page 30 CRAIN’S DETROIT BUSINESS May 5, 2014 Water: Drip by drip, DWSD and region have many challenges ■ From Page 1 Both Patterson and Macomb delinquents are due to abandoned Oakland County officials have Detroit are tied to its decision to County Executive Mark Hackel be- properties? About 70,000 homes — said they’ve tried to make a case impair or reduce the payout on wa- lieve the proposed regional author- or nearly 20 percent of the city’s Really no one several times for state member- ter-sewer bonds under its plan of ity plan is constructed more to fun- housing inventory — are believed “ ship and assistance since regional adjustment in court. And credi- nel operating cash to Detroit than it to be abandoned. could know what negotiations began last June. tors, experts say, have a long mem- is to run, improve and manage the DWSD policy is to shut off water Detroit’s water and sewer sys- ory about past sins in the bond water operations that require mil- service when bills are 45 days past will happen to the tem covers a 1,079 square-mile wa- market. So a bond rating of A or lions of dollars in investment. due. So tens of thousands of those ter service area covering about 43 better could be years away, and Emergency Manager Kevyn Orr, accounts could represent vacant authority’s rating percent of the state population in some costly infrastructure repair meanwhile, contends a regional au- homes that are no longer connect- more than 120 communities, projects might not keep that long. thority is the best scenario in De- ed to the system, and a majority of until the market has which Oakland contends gives the The DWSD, or a post-bankrupt- troit’s restructuring efforts, but residential balances are 180 days state a compelling interest to take cy authority, already must com- he’ll consider others if he must. old or more, according to the re- a chance to test it. part in its oversight. plete a new biosolids dryer facility Here are nine of the talking points port. Orr has said in the past that ” But the Michi- on land across David Tawil, Maglan Capital on regional water — and the difficul- Detroit was losing an average gan Department of the street from ties in resolving them — that will 24,000 residents per year between Treasury has been ASSETS its treatment likely resurface in mediation: 2000 and 2010. would be redeemed or refinanced noncommittal on plant along West under the city’s adjustment plan in Interest expenses, investment Suburban negotiators have dis- that proposal, of- losses and other nonoperating Jefferson, in Rate structure not sustainable cussed using public assistance pro- bankruptcy court, presumably at ficials said; Orr’s costs have put water and sewer time to comply grams to make water payments on better interest rates that yield some request for a $350 funds into the red. In June 2008, with new federal When the water department’s behalf of low-income city families savings and improve the balance million state con- financial statements showed air quality regu- regional Board of Water Commis- to reduce unpaid bills. One option: sheet. tribution to shore combined net assets of $1.05 lations that take sioners voted in March on a pro- The state Housing Choice Voucher But the department has racked up city retiree billion; by mid-2013, those assets effect in March posed 4 percent in- program that up $1.5 billion in such losses over pensions may be had dropped to just $20 million. 2016. crease for water makes direct the past seven years and its bond divisive enough Net assets, a measure of equity, The Michigan could affect DWSD’s future ability and sewer billing payments to rating is in junk territory. Fitch Rat- in Lansing this Finance Authority to borrow money either for the rates for the fiscal RATES landlords of ings Ltd. recently downgraded its coming week, is expected to is- rating on some DWSD bonds to department or for a future year starting July An average 4 percent increase low-income ten- without adding authority, particularly since the sue about $150 1, only Oakland among suburban communities ants could also BB+ while Standard & Poor’s has giv- another legisla- department already carries more million in new County board rep- can’t cover the investment and make direct en the department a CCC bond rat- tive request. than $5.5 billion in bond debt. bonds on repairs the system needs. Oakland resentative and payments for ing, both with a negative outlook. Terry Stanton, DWSD’s behalf County contends that the water Dickinson Wright water. Or state The city also had about $11.1 mil- public informa- in June. The department needs to raise rates lion of unreserved cash and about PLLC partner J. an additional 13.3 percent for the income taxpay- tion officer for Treasury, said he bonds will finance several construc- Bryan Williams water fund and 23.2 percent in the ers could make $50 million in balances owed to ven- was unaware of any discussions on tion projects including the new voted “no.” sewer fund to eliminate those an optional con- dors at the end of fiscal 2013, accord- state involvement on the authority. biosolids plant, which is under con- A chief subur- funds’ operating losses. tribution to ing to a draft financial statement. tract with Massachusetts-based New ban assertion: De- nonprofits, like Bond rating pipe dreams England Fertilizer Co. troit’s rate struc- The Heat and Optimistic budgeting ture is flawed. Warmth Fund, that help cover such Suburban negotiators also can’t An average 4 percent increase bills. But the state would have to All of this may be why Macomb help noticing that the interest rate Pre-funding pensions among suburban communities administer such a payment pro- County officials think Detroit’s behind Detroit’s capital program As Crain’s first reported March can’t cover the investment and re- gram, and is not currently part of amended plan of adjustment filed financing is about 4.63 percent, a 10, Detroit’s adjustment plan calls pairs the system needs, says Oak- the authority talks. March 31 in bankruptcy court is too rate that would suggest a post- for DWSD to make a $675 million land County Water Resources Com- In addition to the residential optimistic in its projections for the bankruptcy bond rating of an A+ contribution to the city’s General Re- missioner Jim Nash. delinquencies, more than $20 mil- current fiscal year. or possibly AA-. That’s a far cry tirement System pension plan for re- Oakland County claims DWSD lion is past due on city commercial An income statement projection from the deep-junk bond status of tired non-uniform city employees needs to raise rates another 13.3 and industrial accounts, another for 2014 calls for the department to today, and suburban negotiators by 2023. That’s not just for its own increase its net assets by $13.7 mil- percent for the water fund and 23.2 $3.8 million was think it could take a new regional employees, but for everyone in the lion — even percent in the sewer fund to elimi- owed by Detroit authority years to build that kind pension plan. though net assets nate those funds’ operating losses. Public Schools, of a rating. The city’s request for proposals BUDGETING were depleted by Meanwhile, after talks broke more than However, suburban customers to private sector contractors in An income statement projection for a combined $147 down in March, the city put out a $200,000 was accounted for about 64.5 percent of late March also calls for any inter- 2014 calls for the department to million the pre- request for information to private owed by Wayne total department revenues in fiscal ested businesses to include a simi- increase net assets by $13.7 ceding year — be- companies interested in taking State University 2013, according to draft financial lar pre-funding contribution to million — even though net assets tween the depart- and more than $6 statements from the city. Bonding over DWSD operations, asking for were depleted by a combined ment’s water and GRS by 2023, or to carve out the million was owed for a new intergovernmental au- bids that keep rate increases at or $147 million the preceding year — sewer funds. The DWSD’s share of pension assets on municipal ac- thority with less of a connection to below 4 percent through 2023. between the department’s water city, in an appen- and its unfunded liabilities, in sub- counts. and sewer funds. Detroit could be a different propo- The counties are concerned that dix to the March mitting their own bids. sition entirely. either scenario isn’t workable long- 31 adjustment Either way, that revenue stream “It does make sense that — to the term. Both Oakland and Macomb plan, uses that 2014 result as a base is expected to help free up money $1 billion in lost value degree there are officials have said the rate struc- year for projecting future revenue in the embattled Interest expenses, investment additional deeper tures wouldn’t cover DWSD’s ongo- and operating income, operating city’s general pockets in the ing budget deficits without exorbi- losses and other non-operating and maintenance expenses and oth- BOND RATING fund budget for makeup of the tant future rate hikes. costs have put the city’s water and er costs through 2023. much-needed new governing Suburban negotiators note that the sewer funds into the red. In June Macomb officials note that if 2014 interest rate behind Detroit’s capital improve- body — from a 2008, financial statements showed budget estimates turn out to be capital program financing is about ments like vehi- Delinquencies creditor/shared combined net assets of $1.05 bil- flawed, then every future year of 4.63 percent, suggesting a post- cles and new obligation status Too many Detroit residents and lion; by mid-2013, those assets had projections that are pegged to it as a bankruptcy bond rating of an A+ or technology. that affects confi- businesses aren’t paying their bills. dropped to just $20 million. base year are likely flawed as well. possibly AA-. That’s a far cry from The city ex- dence and a will- Or aren’t around to pay their bills. Net assets, a measure of equity, Oakland calls the expected return the deep-junk bond status of pects to spend today, and suburban negotiators As of Feb. 3, Detroit carried could affect DWSD’s future ability to asset growth this year “remark- ingness to lend. A $148 million on think it could take a new regional about a $142.5 million total unpaid to borrow money either for the de- able, or more likely, not realistic.” lot of other factors various IT up- partment or for a would be tied into authority years to build that kind of balance from Orr’s office declined to respond a rating. grades, another delinquent busi- future authority, on this issue while mediation is that,” said David $447 million on ness and residen- DELINQUENCIES particularly underway. Tawil, co-founder infrastructure tial accounts since the depart- and portfolio manager of New York and capital programs, including at In addition to delinquencies in ment already car- City-based Maglan Capital, a hedge within the city residential accounts, more than least $123 million for buildings and limits — includ- ries more than A seat for the state? fund that invests in distressed as- fleet vehicles in the police, fire and $20 million is past due on city sets including some risky governing nearly $112 commercial and industrial $5.5 billion in If the state were to be a member of recreation departments, and at million more accounts, $3.8 million was owed bond debt. a new regional water authority, it ment bonds. least $520 million on blight re- than 60 days past by the Detroit Public Schools, more The city com- could lend its own bond rating to the “But that number (4.63 percent) moval, all by June 2023. due. About than $200,000 was owed by putes net assets new authority, saving the authority does sound particularly aggressive But if the DWSD locks in some 153,200 of the Wayne State University and more by weighing rev- millions of dollars in interest pay- or optimistic, and the regional rate stability for city residents, and 162,400 delin- than $6 million was owed on enues, property, ments. Michigan has maintained a counties are right to question it. shoulders general employee pen- municipal accounts. quent accounts cash in liquid ac- rating of AA from Fitch, AA- from “Really no one could know what sions, a post-bankruptcy authority are city residen- counts and other Standard & Poor’s and Aa2 from will happen to the authority’s rat- could have limited ability to cover tial properties, accounting for just assets against interest, deprecia- Moody’s in recent months. ing until the market has a chance that budget without leaning heavily over half the unpaid sum, accord- tion and other liabilities — though Local officials differ on the value to test it.” on suburban customers. ing to an accounts receivable re- it does not include unfunded pen- of this, but Lansing would need to Even if investors view a region- Oakland County, in an April report from Deputy Director Darryl sion liability or retiree health pass enabling legislation for the state al authority differently than a city port, estimates the elevated pension Latimer. costs. to raise bonds on its behalf through enterprise, Macomb County offi- How much of the residential The department’s bond debt the Michigan Finance Authority. cials say the bond downgrades for See Next Page 20140505-NEWS--0030,0031-NAT-CCI-CD_-- 5/2/2014 7:37 PM Page 2

May 5, 2014 CRAIN’S DETROIT BUSINESS Page 31

From Previous Page tion. The state could possibly help FALLING CONSUMPTION out by continuing to defer those contribution alone could require a improvements through 2022, local 6.2 percent rate increase, although The water department puts about Peters pushes funding 610 million gallons from its officials said, but after that the au- the city’s own projections suggest thority may be legally required to the increased contribution would treatment plants into its network of pipes every day, But of that, make some or all of them. be gradual for the first few years. about 63.2 million gallons ends The question, then, could be up at metered locations for retail what kind of bond rating the re- for customs plaza Stopping the exodus? customers within Detroit, gional authority has by 2022. Will compared with 125.8 million it have improved the system’s fi- Even robust rate hikes to shore gallons per day back in 1999. nances enough to fund those pro- up the financial statement may ject costs in the bond markets? get offset in part by falling vol- about two years. The departure of That’s a tough question, and for new border bridge umes of water consumption. A those customers has been previ- one of the possible topics of this February report from Kansas- week’s round of mediation. ously estimated to shave more BY ANJANA SCHROEDER Peters, D-Bloomfield Township, based The Foster Group LLC esti- Detroit and the three counties than 12 percent off DWSD revenue. recently introduced the Customs mates the water flow to city retail also might not get the mediation SPECIAL TO CRAIN’S DETROIT BUSINESS Plaza Construction Act of 2014, customers (residential customers, table all to themselves, either. U.S. Rep. Gary Peters said Fri- which prioritizes funding for trade some agencies, and some cus- Unchartered waters On Friday, the Southeastern Oak- day he was confident that when it crossings around the country based tomer groups like small business- land County Water Authority, which For years, the DWSD has also comes time to build a customs on trade volume — exports and im- es) in the city is about half what it makes wholesale water purchases been able to defer costly environ- plaza on the Detroit side of a ports. The legislation is pending in was 15 years ago. from DWSD for Berkley, Beverly mental improvements to comply planned second bridge to Canada, the subcommittee on border and The department puts about 610 Hills, Birmingham, Southfield, with the federal Clean Water Act, the federal funding for the plaza maritime security. million gallons from its treatment Royal Oak, Pleasant Ridge, Lath- and could continue to do so would be available. plants into its network of pipes rup Village, Huntington Woods Also joining Peters and Johnson through 2017. Peters, a candidate for U.S. Sen- every day, but of that, about 63.2 and Southfield Township, brought at the Detroit Regional Chamber on That’s because federal guide- ate, joined Homeland Security Sec- Friday for a roundtable discussion million gallons end up at metered lines allow the state to defer im- a request to intervene in the bank- retary Jeh Johnson in a tour of were U.S. Sen. Debbie Stabenow; locations for retail customers provements on water system ruptcy and get authorization to border operations Friday. John- U.S. Reps. John Dingell, D-Dear- within Detroit, compared with quality improvements if the up- participate in the mediation son’s visit was intended to raise born, and John Conyers, D-De- 125.8 million gallons per day back grades would force the cost of wa- process. The separate Western awareness of the funding needs at troit; and Douglas George, the con- in 1999. ter or sewer bills to exceed 2 per- Townships Utility Authority of Can- northern border crossings. sul general of Canada. The city in its adjustment plan cent of the median resident’s ton, Northville and Plymouth assumes a decline of 6.3 percent income. townships also supports that re- Land acquisition for the $3.5 bil- Johnson said he is “looking for in retail volume between next Since the DWSD is a city-owned quest. lion New International Trade Crossing ways to expand lawful trade and year and 2023, or less than 1 per- system, that cap is currently But with no date set for all par- project could begin this summer. travel” and noted that the lineup cent per year on average, while pegged to 2 percent cap of a median ties to gather, and the state’s atten- Bridge construction is scheduled to at the roundtable shows the impor- the wholesale consumption in the Detroiter’s income. Officials have tion turned instead toward an ex- start in 2016 and be finished in 2020. tance of the Detroit plaza to region- suburbs falls about 2 percent over estimated current water system pected package of bills to support Canada will cover $2.3 billion of al stakeholders. the same period and sewer usage cost is about 1.84 percent of that fig- the city pension funding contribu- the $3.5 billion NITC project, in- “The northern border and trade stays flat. ure, and sewer costs are about 2.6 tion this week, perhaps one seat at cluding $550 million in infrastruc- crossings in the state of Michigan Flint, meanwhile, exits the percent. the mediation table will remain ture costs on the Michigan side. have the potential to make our re- DWSD system in 2017 to join the re- Under an authority, however, conspicuously empty. But President Barack Obama’s gion a transportation and logistics cently formed Karegnondi Water Au- the 2 percent cap on the median Chad Halcom: (313) 446-6796, proposed $3.9 trillion budget for hub in the Midwest if we make the thority, which should serve 250,000 Southeast Michigan income could [email protected]. Twitter: the 2015 fiscal year did not include necessary infrastructure invest- customers in that area starting in become a very different proposi- @chadhalcom the $250 million cost of the plaza. ments now,” Peters said.

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Page 32 CRAIN’S DETROIT BUSINESS May 5, 2014 England: How football team (no, not that one) turned it around ■ From Page 3 ership group, said Appleby, who season before being downgraded. to certain amounts or be embar- launched Rochester-based General While it is stressful on owners goed from player transfers and Sports and Entertainment LLC in 1998. English soccer rewards results and investors, Appleby is a fan of fined. This season, the maximum “It’s been an incredible turn- the promotion-relegation system allowable loss is $13.5 million. That around,” said Appleby, who or- The hierarchical English foot- because it’s based on performance. drops to $10.1 million next year. chestrated the purchase. As of Fri- ball league system rewards and “It’s a wonderful system they’ve Derby’s financial disclosures day, Derby had 25 wins, nine punishes teams with promotion created. It’s the ultimate meritoc- show it has lost $13.4 million, $13 draws and 11 losses with one final or relegation based on their final racy,” he said. million and $12 million in the regular-season game scheduled for record every season. three seasons prior to 2013-14. Saturday (at Leeds United). The 24-club Football League Over the years, General Sports The rebuilding plan wasn’t Championship is English soccer’s The money has loaned Derby approximately unique: Shed underperforming tal- second-tier professional league, GENERAL SPORTS AND ENTERTAINMENT LLC Like American pro sports $48 million to cover expenses, all of ent for better players and seek new and its top three teams every Finish atop the Football League teams, the majority of Premier which have been converted to eq- ways to create revenue from year are promoted to the elite 20- Championship, and you get League revenue that second-tier uity, according to a statement games and from the deep affinity team Premier League. promoted to the Premier League, clubs seek is derived from con- from the club in March. fans have for the team. The top two teams are promot- plus $100 million in new revenue. tracts with TV networks for the The successful 2013-14 campaign The plan’s endgame was simple, rights to broadcast games to more ed automatically, while the next among the levels. is expected to further reduce Der- too: Return to the lucrative Pre- than 600 million people in more four enter a playoff for the third Clubs are eligible for different by’s losses. The club is predicting $4 mier League, in which Derby last promotion slot. than 200 countries. million in new revenue for this sea- played in 2007-08. single-elimination competitions, At stake are $100 million in au- such as the FA Cup, depending on Two recent TV deals have inflat- son, club President and CEO Sam There was one enormous prob- tomatic new revenue, almost all ed the annual payments that Der- Rush said in a March statement. lem that added years to the turn- which league a team is in. of which comes from the Premier The Premier League is its own by is seeking by promotion. Derby’s losses are modest com- around effort, however. The group League’s lucrative broadcast The Premier League sold its live pared to the other top teams. bought the team as the global reces- business entity, and was created rights deals that are shared TV broadcast rights for its games “Derby’s losses are well below sion became endemic, and the club in 1992. The top level of English among the clubs. in Britain in June 2012 for a com- other clubs gaining promotion. Der- was in the middle of the worst sea- soccer was previously called the Conversely, the worst three bined $5 billion to British Sky Broad- by has done astonishingly well,” son ever recorded by a Premier First Division. The Football Cham- Premier League clubs are rele- casting Group plc (usually called said Ed Thompson, who analyzes League team. pionship League, and the two gated to the Championship BSkyB) and BT Group plc. The deals and writes about English soccer fi- “When we were restructuring, leagues beneath it, are collective- league — and are provided anoth- run through the 2015-16 season. nances on his website, financial the financial crisis hit. If there was ly The Football League. er $100 million over four years to In the United States, the Pre- fairplay.co.uk. a crystal ball, no The 92 teams of Premier League cushion the financial blow. mier League signed a three-year, one would have and The Football League are pro Leicester City, which finished There are 24 levels to the Eng- clubs. Teams in lower divisions, $250 million deal with NBC Sports atop the Championship league and bought a team in Group in August 2013 to air games January 2008,” lish football league system, and it which are more regional, are a gains automatic Premier League uses a mixture of automatic mix of pro and semi-pro clubs. At on NBCSN. The matches are pro- promotion along with second- Appleby said. duced by Sky Sports, BT Sport or the “Derby County berths and playoffs to promote the lower end of the organizational place Burnley, lost $57 million last teams. The number of clubs pro- pyramid, the teams are amateur. league. The deal replaces Fox Soc- year, the club said. was hurt per- cer and ESPN as the league’s U.S. haps even more moted and relegated varies — Bill Shea Promotion provides a financial broadcasters as the game’s popu- windfall, but traditionally fuels because we were larity is rising in the U.S. — and in also made an initially controver- league. Premier League teams this spending sprees that offset the new coming down Detroit as several groups are inter- sial coaching change this season. season averaged 36,456 per game. money. from the Pre- ested in bringing soccer to the city. Appleby Manager Nigel Clough was fired Derby, founded in 1984 and nick- “Clubs always push up player mier League at Local revenues in English soc- in September after a poor start. He named the Rams, plays a 46-game costs when promoted; it’s not un- that very moment.” cer also are akin to American cash was replaced with Steve McClaren. schedule. The Rams’ only top-level common to end up financially Derby won a single game during sources: single-game and season The Clough name is iconic in championships were in 1972 and worse off after promotion,” Thomp- that 2007-08 season, and the new ticket sales, merchandise, conces- English soccer. Clough’s father, 1975. It lost the top-tier champi- son said. owners understood it was headed to sions and parking. Brian, led Derby to championships onship matches in 1896, 1930 and the second-tier, money-barren Derby got a revenue boost in De- Championship league — which also in the Second Division and First Di- 1936. vision (forerunner to the Champi- cember when it signed a 10-year, Sports impresario is why they were able to buy the $11.8 million naming-rights deal club at a discount. onship league and Premier League, Appleby has relied on his back- respectively), and there’s a statue Going down, painfully with new British sports drink manufacturer iPro to put its name ground in U.S. pro sports to help of him outside of Derby’s stadium. Relegation can be financially him oversee Derby and the com- Hard times The change appears to have on the team’s 33,597-seat Pride devastating for clubs because Park Stadium. plexities of English soccer finances. Because of how European soccer been the right one. Championship league shared rev- He is the chairman and CEO of clubs acquire players, a turn- Since taking over, McClaren led enues are a fraction of what teams General Sports and Entertain- around was even more difficult the club to 22 wins, six draws and in the Premier League. The spending ment, which he founded in 1998. eight losses. Derby’s 84 points in during the recession. Derby has about $95 million in The firm, which had about $30 mil- the standings are tied for the most Getting the TV money is the Rather than trades, most players revenue in its 2007-08 Premier lion in revenue last year, special- in team history. McClaren was on grail quest in the Championship are bought and sold between clubs League season, and total revenue izes in consulting, team manage- the coaching staff of the Queens Park league because nearly every team as assets in the summer and in Jan- the following season in the Cham- ment, marketing, sponsorships, Rangers prior to coming to Derby, operates at a loss. uary, called transfer periods. Teams pionship league fell 36 percent, ac- financing, and education, and had where he’d been an assistant man- In the Championship, player pay transfer fees to buy players — cording to an analysis of relegated a synthetic turf division. ager from 1995-99. He managed wages consume 90 percent of rev- Spain’s Real Madrid paid a world teams by SportingIntelligence.com. Before starting his company, teams in the Premier League, clubs enue, according to an annual report record $143 million to buy Gareth The average first-year revenue Appleby had risen to senior vice in Germany and Holland, and the in June 2013 from Deloitte’s Sports Bale from the Premier League’s Tot- drop for clubs relegated to the president at Palace Sports and Enter- English national team. Business Group in the UK. It’s 70 tenham Hotspur last year. Championship over the past 10 tainment LLC, the Pistons’ parent “(Changing managers) was a percent in the Premier League. Some players are signed as free years is $33 million. company in Auburn Hills, where good decision for a number of rea- “For many years, the division agents, similar to those in Ameri- he worked from 1986 until launch- sons, not the least of which was “(Relegation) can have a dramat- has struggled financially — the can pro sports leagues, and some ing General Sports. that we seemed to start winning ic effect on the value of that team combination of clubs adjusting to players are loaned up or down the He previously was interested in and created that wonderful chem- and the value of contractual income the impact of relegation from Pre- levels of soccer, as well. buying hockey’s St. Louis Blues and istry you’ve seen in all sports at that the team gets,” Appleby said. mier League and others aspiring in bringing a minor-league base- Derby had 50 players, and the various times,” Appleby said. He estimated that Championship to achieve promotion, has now de- ball team to suburban Detroit. plan was to sell off many of them to There was briefly an outcry league teams get in the low single- livered almost a decade of ever-in- get the roster and payroll in line when Clough was fired — and anti- digit millions in shared revenue. creasing operation losses,” the re- Those deals didn’t happen, but with what is typical for Champi- ownership criticism at various Hence, the “parachute pay- port said. General Sports did own the Fort onship league clubs, Appleby said. times since Appleby’s group took ments” of $100 million spread over “Championship clubs continue to Wayne Wizards, a Class A minor- “You don’t have a tremendous over as the team struggled. four years. spend 30 percent more than they league baseball affiliate of the San depth chart at that level. The rev- In Derby’s first five seasons in “It’s a very rough transition to generate — a clearly unsustainable Diego Padres, for several seasons enues are not there to support it,” the Championship league this time the second division. It’s not easy to position without owner benefaction, until selling the team in 2006. he said. around, it finished 18th, 14th, 19th, restructure all those player con- a source of funds upon which the In 2000, Appleby was an honoree But with the recession, few 12th and 10th, respectively, in the tracts,” Appleby said. “The feeling Football League is trying to reduce in Crain’s Detroit Business’ annual teams were buying. standings. This year’s third-place was, you needed some of that mon- its member clubs’ dependence.” “40 under 40” awards. “In most cases, we were not able finish is its best since 2006-07. ey available to offset those losses Unlike American pro football, “(Derby’s ownership has) had a to sell those players, and in many Fans have showed their faith and keep your team together to basketball and hockey, English plan for a long time, and this is a cases we had to write checks to with their pocketbooks: Derby al- come back up again.” soccer hasn’t had the cost controls very, very difficult business,” Ap- those players to have them go,” Ap- ready has sales or commitments It’s also not uncommon for pro- of a salary cap. Hence, the finan- pleby said. “We’ve been able to all pleby said. “It probably set us back for 20,000 season tickets for next moted teams to quickly find them- cial losses every year. stick together through lots of trying four years. (This season) is where I season, Appleby said. selves back in the Championship That is changing. times.” envisioned us after Year Two.” Derby has averaged 25,000 fans league: Thirteen of the 30 teams pro- Under a new cost-control system, Bill Shea: (313) 446-1626, As the economy improved, Der- per game this season at 33,597-seat moted to the Premier League over known as Financial Fair Play, [email protected]. Twitter: by was able to sort out its roster. It iPro Stadium, good for second in the the past 10 years have lasted one teams must limit monetary losses @bill_shea19 20140505-NEWS--0033-NAT-CCI-CD_-- 5/2/2014 5:59 PM Page 1

May 5, 2014 CRAIN’S DETROIT BUSINESS Page 33 Crowd: Funding rule has biz seeking alternative www.crainsdetroit.com EDITOR-IN-CHIEF Keith E. Crain ■ From Page 3 GROUP PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] a handful of states — including end of the year, Linder said. ASSOCIATE PUBLISHER Marla Wise, (313) 446- 6032 or [email protected] Michigan last year — enacted their MICHIGAN’S CROWDFUNDING LAW Coke said he has heard from EXECUTIVE EDITOR Cindy Goodaker, (313) 446- own laws to allow intrastate crowd- some business owners who are an- 0460 or [email protected] Ⅲ Issuers must be headquartered in Michigan, and the offering may be MANAGING EDITOR Jennette Smith, (313) 446- funding, to get around SEC rules. made only to Michigan residents. gry and confused by the new rules, 1622 or [email protected] Michigan’s law allows compa- and are still unsure of what they MANAGER, DIGITAL STRATEGY Nancy Hanus, Ⅲ Social media use isn’t referenced in the Michigan law, so investors have (313) 446-1621 or [email protected] nies that are Michigan-based to interpreted the law to allow for its use. can no longer do, but he is urging MANAGING EDITOR/CUSTOM AND SPECIAL them to remain positive. PROJECTS Daniel Duggan, (313) 446-0414 or sell shares of their company to Ⅲ The maximum a company could raise is $2 million if it makes audited [email protected] state residents, or receive a set financial statements available to investors as part of the offering. If not, the “Focus on what you can do,” he SENIOR EDITOR/DESIGN Bob Allen, (313) 446- percentage return on an invest- 0344 or [email protected] maximum is $1 million. said. SENIOR EDITOR Gary Piatek, (313) 446-0357 or ment in the company. Ⅲ Securities may not be resold within nine months to any non-Michigan resident. Eric Misterovich, partner at St. [email protected] WEB EDITOR Kristin Bull, (313) 446-1608 or But the recent guidance from the Ⅲ The issuer must provide quarterly reports to its investors and the state of Joseph-based Revision Legal, said [email protected] SEC, in the form of a compliance and Michigan for as long as the shares remain outstanding. one positive aspect to the new WEST MICHIGAN EDITOR Matt Gryczan, (616) 916- 8158 or [email protected] interpretation document posted at guidance from the SEC is that it WEB PRODUCER Norman Witte III, (313) 446- sec.gov in April, discourages busi- “Businesses will just have to be own website, so as not to draw the will further shape which business- 6059, [email protected] EDITORIAL SUPPORT (313) 446-0419; YahNica nesses from looking for investors on careful what they post,” he said. ire of the SEC. es are best suited to use crowd- Crawford, (313) 446-0329 social media sites, since there is no And it is possible to successfully Sandra Cochrane, a technology funding under Michigan’s law. NEWSROOM (313) 446-0329, FAX (313) 446- 1687 TIP LINE (313) 446-6766 way to control the message so that conduct crowdfunding without us- business consultant for the Michigan “I think a lot of people planned only Michigan residents see it. ing social media, as the Tecumseh Small Business Development Center, on using Facebook to spread the REPORTERS Brewing Co. proved on Thursday, Jay Greene, senior reporter: Covers health care, Coke said once a company puts said the new guidance will make it word about their offer. We’ve all insurance, energy utilities and the environment. something on social media, it cross- Hitchen said. tougher for people to get the word grown accustomed to how easy it (313) 446-0325 or [email protected] Through Localstake, the Tecum- Amy Haimerl, entrepreneurship editor: Covers es state lines and is no longer an in- out about their particular offer. is to share things,” he said. “But if entrepreneurship and city of Detroit. (313) 446- seh-based microbrewery was the 0416 or [email protected] trastate offer. Several attorneys Coke said old-fashioned word of I live in St. Joseph, is someone in first to take advantage of Michi- Chad Halcom: Covers litigation and the defense who practice securities law say mouth is still one way businesses Bay City going to invest in my industry. (313) 446-6796 or [email protected] gan’s crowdfunding law, and the businesses should even refrain can get their message out. restaurant? Probably not.” Tom Henderson: Covers banking, finance, first to successfully reach its in- technology and biotechnology. (313) 446-0337 or from simply posting a link to a por- Iris Linder, a shareholder at He said Michigan’s law is still [email protected] vestment goal. It raised $175,000 tal website that handles the invest- Lansing-based Foster, Swift, Collins & well-suited for hyperlocal busi- Kirk Pinho: Covers real estate, higher education, from 21 investors, and did it with- Oakland and Macomb counties. (313) 446-0412 or ment transaction, even if the site Smith PC, who works in the businesses that have an established [email protected] out using social media. It hopes to Bill Shea, enterprise editor: Covers media, only allows Michigan residents to ness and corporate practice group, and dedicated customer base. be open by October. advertising and marketing, the business of sports, invest. said businesses could talk to cus- and transportation. (313) 446-1626 or Kyle DeWitt, general manager Once the SEC has completed [email protected] Kevin Hitchen, founder of and co-founder of Tecumseh Brew- tomers in person and tell them writing the final rules that allows Dustin Walsh: Covers the business of law, auto about ways to go online and invest, suppliers, manufacturing and steel. (313) 446- Localstake, an online crowdfunding ing, said they were able to raise crowdfunding nationwide, other 6042 or [email protected] portal used by businesses to con- the funds in just 45 days. but first they should ask if they are businesses will likely then be able Sherri Welch, senior reporter: Covers nonprofits, Michigan residents. services, retail and hospitality. (313) 446-1694 or nect with potential investors, said “We were pleasantly surprised to use social media sites, because [email protected] potential investors who come to his Businesses could also collect they will no longer be confined to LANSING BUREAU how quick it went,” he said. Chris Gautz: Covers business issues at the Capitol site have to go through a series of He said word of mouth, publicity emails from customers (after first just trying to solicit investors from and utilities. (517) 403-4403 or [email protected] steps before they can see invest- in local news outlets and two tast- checking they are all state resi- Michigan, he said. ADVERTISING ment documents for a company or dents) and then do an email blast to At that point, it won’t matter if ing events were basically all it took. SALES INQUIRIES (313) 446-6052; FAX (313) actually invest, including provid- The sponsor of the state’s crowd- talk about the investment opportu- someone in another state sees 393-0997 ing their driver’s license to prove funding law, Rep. Nancy Jenkins, nity and direct them to a website their posting on a social media SALES MANAGER Tammy Rokowski SENIOR ACCOUNT EXECUTIVE: Matthew J. they are a state resident. R-Clayton, said businesses will where they could invest, she said. site, he said. Langan He said he doesn’t think the SEC just have to be cautious when us- These are good working guide- Chris Gautz: (517) 403-4403, ADVERTISING SALES Christine Galasso, Jeff guidance will hinder efforts under ing social media and be careful lines until the SEC issues perma- [email protected]. Twitter: Lasser, Sarah Stachowicz CLASSIFIED SALES Angela Schutte, manager, the new law in Michigan. about what they put even on their nent guidelines, perhaps by the @chrisgautz (313)-446-6051 DIRECTOR OF MARKETING AND EVENTS Elizabeth Buscher DIGITAL MARKETING MANAGER Jennifer Chinn AUDIENCE DEVELOPMENT DIRECTOR Eric Cedo EVENTS MANAGER Kacey Anderson Guns: SENIOR PRODUCER FOR DIGITAL/ONLINE Brothers aiming high with family business PRODUCTS Pierrette Dagg SENIOR ART DIRECTOR Sylvia Kolaski ■ From Page 3 SALES SUPPORT Suzanne Janik, YahNica Crawford PRODUCTION MANAGER Wendy Kobylarz They founded Detroit Gun Works new markets to survive the indus- quite as predictable as some oth- Despite a slightly down market, PRODUCTION SUPERVISOR Andrew Spanos in 2009, still under their father’s try collapse. ers, and production has slowed, Detroit Gun Works continues to CUSTOMER SERVICE ownership, to manufacture upper Laurie Harbour, president and said Randy Perrault, president of target larger manufacturers to MAIN NUMBER: Call (877) 824-9374 or write and lower receivers for semi-auto- CEO of Royal Oak-based manufac- Lake Havasu City, Ariz.-based R&D scale up production. [email protected] SUBSCRIPTIONS $59 one year, $98 two years. matic sporting rifles. A few years turing consulting firm Harbour Re- Precision Inc. It currently sells its lower re- Out of state, $79 one year, $138 for two years. later, the brothers moved the com- sults Inc., said manufacturers led R&D Precision, which started as ceivers to private label gun mak- Outside U.S.A., add $48 per year to out-of-state rate for surface mail. Call (313) 446-0450 or pany out of Detroit to a shop in Troy by younger generations are taking a tooling and prototype supplier, ers and shops for sale to con- (877) 824-9374. near Maple Road and Crooks. bigger risks than their predeces- manufactures bolts, hammers and sumers looking to build their own SINGLE COPIES: (877) 824-9374 REPRINTS: (800) 290-5460, ext. 125; The Detroit Gun Works divi- sors, and it’s often paying off. other semi-automatic rifle parts. semi-automatic files. Locally, Dou- (717) 505-9701, ext. 125; or lindsay.wilson sion, which currently sells to gun “For the younger generation of Perrault said sales have slowed in ble Action Indoor Shooting Center and @theygsgroup.com shops and private-label manufac- manufacturers, risk is nothing,” 2014 due to an oversupply of parts. Gun Shop in Madison Heights and TO FIND A DATE A STORY WAS PUBLISHED: (313) 446-0406 or e-mail [email protected] turers, is expected to generate $1.2 Harbour said. “They are finding a “The bigger suppliers have satu- Scott Allan Wiseman’s Weapons CRAIN’S DETROIT BUSINESS IS PUBLISHED BY million of the company’s $7.2 mil- balance in automotive and the rated the market with parts because Co. in Hamburg Township carry CRAIN COMMUNICATIONS INC. lion in revenue this year. right creative group of people to of the drop off of sales,” he said. Detroit Gun Works’ receivers for CHAIRMAN Keith E. Crain PRESIDENT Rance Crain “We felt we had a better mouse- reinvent their company, challenge “The manufacturers have enough gun buyers looking to build and TREASURER Mary Kay Crain trap due to the belt-tightening organizations and make it stick.” parts to last a couple of years.” customize their own rifles. Lower Executive Vice President/Operations William A. Morrow from the automotive industry col- The Hellers took a calculated However, Detroit Gun Works op- receivers are the part that must be Executive Vice President/Director of Strategic lapse, said Arnot Heller, co-owner. risk during a recent gun boom. erates with marketable advantage. registered with authorities. Operations Chris Crain Vice President/Production & Manufacturing “For a long time, all gun parts There has been explosive gun sales The company has a federal Detroit Gun Works expects to sell Dave Kamis were made in-house by the big growth over the past years, with firearms license, which is re- up to 12,000 receivers this year, up Chief Information Officer Anthony DiPonio manufacturers, but now we’re see- 2013 setting the record for most quired for companies that manu- from 8,700 last year, Arnot Heller G.D. Crain Jr. Founder (1885-1973) ing a different model, a more sup- guns sold in the U.S. facture lower receivers — the part said. Mrs. G.D. Crain Jr. Chairman (1911-1996) plier-based model that we thought The Federal Bureau of Investigation of the gun that contains the bolt, The company spent $1.5 million EDITORIAL & BUSINESS OFFICES: 1155 Gratiot Ave., Detroit MI 48207-2732; we could capitalize on.” performed nearly 14.8 million new trigger and magazine port. transition to automated machin- (313) 446-6000 Lawrence Keane, senior vice gun purchase permits through the Perrault said fewer suppliers ing and robot equipment. Matt Cable address: TWX 248-221-5122 AUTNEW DET CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 president and general counsel of National Instant Criminal Back- hold an FFL, making them more in Heller said changing the name and is published weekly, except for a special issue the third week of August, and no issue the third week Connecticut-based nonprofit Nation- ground Check System in 2013, ac- demand. going high-tech is opening doors of December by Crain Communications Inc. at al Shooting Sports Foundation, said cording to a report by NSSF. Matt Heller said it took Detroit for the company that Central 1155 Gratiot Ave., Detroit MI 48207-2732. Periodicals postage paid at Detroit, MI and the firearms industry is continuing Keane expects manufacturers to Gun Works more than 18 months Screw Products just couldn’t do. additional mailing offices. POSTMASTER: Send to evolve into a more supplier-dri- sell fewer guns in 2014, but even to acquire the federal license, but “We wanted, and needed, high address changes to CRAIN’S DETROIT BUSINESS, Circulation Department, P.O. Box 07925, Detroit, ven industry and could pay divi- with reduced sales, smaller suppli- he knew it was necessary because skilled laborers, and we had a MI 48207-9732. GST # 136760444. Printed in dends for the right suppliers. ers could flourish. of the higher barrier of entry for tough time getting the right work- U.S.A. Entire contents copyright 2014 by Crain “More and more manufacturers “The peak has come down, but manufacturers. ers, let alone the right customers Communications Inc. All rights reserved. Reproduction or use of editorial content in any source parts from suppliers as part sales are still ahead of 2012,” “We didn’t want other tradition- with the old name,” Matt Heller manner without permission is strictly of a shift to lean manufacturing Keane said. “There are going to be al manufacturers to follow us into said. “It’s absolutely amazing what prohibited. and just-in-time manufacturing,” a number of smaller players who the firearms market,” he said. doors have opened because of the Keane said. got into the market who are going “With the FFL, we can drive Detroit Gun Works name.” Diversification isn’t a new con- to keep growing business, but it’s firearms components the way we Dustin Walsh: (313) 446-6042, cept to automotive. Most suppliers not certain.” do with heavy truck, but with less [email protected]. Twitter: in the industry needed to enter However, the industry isn’t competition.” @dustinpwalsh 20140505-NEWS--0034-NAT-CCI-CD_-- 5/2/2014 7:23 PM Page 1

Page 34 CRAIN’S DETROIT BUSINESS May 5, 2014 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF APRIL 26-MAY 2

ter than Michigan’s — they over the next eight months, wiring in two pilot area are — it’s about why they’re Caraco to close with plans for up to 120 in neighborhoods. better,” MDOT Director Kirk three years. Ⅲ William Farber, chair- Slush a treat! Ⅲ Eagles Steudle said in the message. The 544-unit man emeritus of Philadel- “It’s not some secret formula. pharmaceutical Landing of Troy apartment phia-based drug maker Lan- Ohio simply invests $1 billion complex was sold to South- nett Co. Inc., and his wife, more each year in its roads plant in summer field-based Kaftan Communi- Audrey, made a $10 million Vernors now a than Michigan does.” ties for $25 million and will gift to Temple Israel in West be renamed the Gables of Bloomfield that establishes Michigan spends, per capi- Detroit manufac- Troy. an endowment for the tem- ta, less on roads than not just turing facility run Ⅲ Shinola’s new Willys De- ple’s Susan and Rabbi Harold Ohio, but every other state, by New Jersey- A troit shop, to open in Mid- Loss Early Childhood Center. MDOT said. based Caraco Pharmaceuti- Slurpee drink town this summer, will fea- The Farbers live in West Future “Reality Check” cal Laboratories Ltd. will ture some Detroit and Bloomfield. topics will include sign close around June 30 and Michigan brands but won’t Ⅲ The University of Michi- etro Detroit con- Reuss is the event host. placement, roundabouts its 178 employees will be sell any of the company’s gan’s new Weinberg Institute sumes more The event is 6:30-11 p.m. safety, truck weights, road- laid off, according to a noti- watches, bicycles or leather for Cognitive Science, to M Slurpees from May 30. Tickets are $500 building standards and the fication filed with the state goods. study how the brain 7-Eleven than any other U.S. each. To join the waiting effect of gas prices on fuel Workforce Development Ⅲ General Motors Co. and processes information, market, so that’s why the list, call (313) 331-7760. tax revenues. Agency. the Michigan Urban Farming choice, emotions and lan- convenience store chain The event aids the Belle View the campaign at Initiative plan to build what guage, will be funded with now is selling a Vernors Isle Conservancy, which Michigan.gov/realitycheck. Slurpee at works to preserve and re- ON THE MOVE GM says will be Detroit’s alumnus Marshall Wein- more than store the island’s natural fea- first occupied shipping con- berg’s $7.7 million dona- Ⅲ As expected, Ford Mo- tainer homestead, on the tion. 200 of its tures, buildings and Huntington again tops tor Co. named COO Mark Michigan attractions grounds of the Detroit- Ⅲ The University of Michi- J.D. Power bank rankings Fields to replace Alan Mulally Hamtramck Assembly gan Health System an- locations. (such as CEO. Fields, 53, who will For the second straight plant, AP reported. nounced a $1 billion effort News of as the take the post July 1, said year, Columbus, Ohio-based Ⅲ Northville-based Algal to raise money to support the Belle his COO position at the Huntington Bank has been Scientific Corp., a manufac- medical research, patient slushed Isle Dearborn-based automaker ranked No. 1 in customer sat- turer of algae-based chemi- care and education. ginger Aquari- won’t be filled. isfaction by J.D. Power for the cals for the food and bever- Ⅲ Oakland County is ex- ale um) Ⅲ Willie Brooks was north central region of the age industries, announced pected to add 43,000 jobs in drink through named executive director broke fundrais- U.S., which includes Michi- it completed a $3 million the next three years and its of the Oakland County Com- venture capital round. last week to the ing and vol- gan, Indiana, Kentucky, unemployment rate to munity Mental Health Author- Ⅲ Part owner and former delight of Vernors fans. unteer ef- Ohio and West Virginia. drop to 5 percent by 2016, ity. Brooks, the Auburn CEO Avinash Rachmale of The idea for a Vernors forts. Huntington scored 828 according to the county’s Hills-based authority’s for- Lakeshore TolTest Corp. Slurpee as a regional item points, compared to the re- annual economic outlook mer CFO, replaces Jeff claims $100 million in dam- was ginned up by 7-Eleven’s gional average of 796. study. Brown, who left in April. ages in a lawsuit at Wayne in-house research depart- MSU coaches to offer Banks doing business in Ⅲ Physical therapist Ⅲ Donald Stebbins, for- County Circuit Court against ment, a spokeswoman said Michigan that were ranked: Shahzad Mirza, 43, of Can- business leadership savvy mer CEO at Van Buren several company private Friday. Ⅲ Troy-based Flagstar ton Township; physical Township-based Visteon equity stakeholders and se- Vernors ginger ale, born Michigan State University is Bank, No. 3 with 809 points therapy assistant Jigar Pa- again bringing together Corp., was named CEO of nior executives, claiming in a Detroit pharmacy in Ⅲ New York-based Chase tel, 30, of Madison Heights; some of its top faculty and Van Nuys, Calif.-based alu- their mismanagement led 1866, is produced and distrib- Bank, No. 9 (tie), 801 points and Srinivas Reddy, 38, of successful coaches for a minum wheel supplier Su- to a U.S. Department of Jus- uted by Plano, Texas-based Ⅲ Midland-based Chemical Bloomfield Hills, an unli- three-day course on prepar- perior Industries International tice investigation. beverage giant Dr. Pepper Bank, No. 9 (tie), 801 points censed foreign medical ing business professionals Inc., Automotive News re- Ⅲ Detroit-based lender Snapple Group Inc. (NYSE: Ⅲ Wayzata, Minn.-based school graduate, were for success. ported. Stebbins, 56, re- Ally Financial Inc. said prof- found guilty in what the DPS), which had $5.9 billion TCF Bank, No. 11, 798 points places retiring CEO and “Building Winning its fell 79 percent in its first U.S. Department of Justice in total sales in 2013. Ⅲ Pittsburgh-based PNC Chairman Steven Borick. Teams: A Quest for Excel- report as a publicly traded called a $14.9 million The ginger ale is produced Bank, No. 12, 795 points Ⅲ Plymouth Whalers head lence” is scheduled for June company, Bloomberg re- Medicare fraud scheme in- in Holland, not Detroit. Ⅲ Akron-based FirstMerit coach and General Manager 3-5 on the MSU campus in ported. volving four Livonia com- 7-Eleven opened a Detroit Bank, No. 15, 791 points Mike Vellucci, 47, was named East Lansing. Ⅲ Attorneys in a lawsuit panies: Physicians Choice location, on Jefferson Av- Ⅲ Charlotte, N.C.-based assistant general manager Spartans football coach against Novi-based Lotus Home Health Care LLC, enue, in February — its Bank of America, No. 16, 789 and director of hockey oper- Mark Dantonio, basketball Bank over racist emails by Quantum Home Care Inc., first and only since the last points ations for the parent Caroli- coaches Tom Izzo and Suzy bank executives were First Care Home Health Care store closed in 2003. Anoth- Ⅲ Cincinnati-based Fifth na Hurricanes of the National Merchant, and others will urged to settle the case by LLC and Moonlite Home Third Bank, No. 17, 788 points Hockey League.The Whalers er is scheduled to open in take part in the course with Oakland County Circuit Court Care Inc. Ⅲ Ionia-based Independent and Hurricanes are owned May in Cadillac Square. their takes on coaching Judge Denise Langford Mor- Ⅲ The Save the Willow Bank, No. 18, 786 points by Peter Karmanos Jr., retired ris The Vernor family sold philosophies, planning and , who postponed the tri- Run Bomber Plant campaign Ⅲ Cleveland-based Key- chairman and co-founder of al’s start from May 27. the company in 1966, and winning approaches. made its deadline to raise Bank, No. 20, 781 points Detroit-based Compuware Ⅲ Flint-based McLaren the brand has had a number Cost is $4,495. For details, $8 million to save from de- Ⅲ Dallas-based Comerica Corp. Health Care Inc. completed of owners since then. visit execed.broad.msu.edu. molition the facility where Bank, No. 21, 779 points its agreement to acquire Dr. Pepper Snapple Rosie the Riveter helped Ⅲ Providence, R.I.-based Port Huron Hospital, making Group, when it was known build World War II-era MDOT: Quit with the Ohio Charter One Bank, No. 22, 773 COMPANY NEWS the 186-bed facility as Cadbury Schweppes plc, ac- bombers, organizers of a points McLaren’s 12th hospital. quired Vernors when it Ⅲ Van Buren Township- campaign to build a muse- road stuff, please Ⅲ Evansville, Ind.-based Ⅲ Warren-based Art Van bought A&W Brands for $334 based Visteon Corp. said it um on the site announced. Ohio’s roads are NOT bet- Old National Bank, No. 23, 765 Furniture plans to open its million in 1993. signed an agreement to sell Ⅲ The future of the Subur- ter than Michigan’s high- points seventh franchise location, Oh, and the top Slurpee- its global automotive inte- ban Mobility Authority for Re- ways because of special con- J.D. Power only ranks the in Gaylord, by month’s end. consuming city worldwide riors business to an affili- gional Transportation will be crete or secret blacktop country’s largest 130 banks, ate of private investment is Winnipeg, Manitoba. up to voters in Wayne, Oak- recipes. which means that smaller re- firm Cerberus Capital Man- land and Macomb counties The Buckeye State’s by- gional banks such as Troy- agement LP. Visteon agreed OTHER NEWS after Oakland commission- Grand Prixmiere to kick off ways are smoother because based Talmer Bank and Trust to provide $90 million in re- Ⅲ Detroit Emergency ers approved a millage pro- Ohio spends more money and community banks are volving credit to bridge the Manager Kevyn Orr met with posal for the Aug. 5 prima- Belle Isle race weekend on them. That’s the message not ranked. deal, to be paid back by lawmakers in Lansing to ry ballot. The Grand Prixmiere, the from the Michigan Depart- Cerberus. urge approval of $350 mil- official launch party of the ment of Transportation in its BITS & PIECES Ⅲ The consolidation of lion in state funds to help 2014 Chevrolet Detroit Belle latest public relations self- U.S. Toyota Motor Corp. oper- bring the city out of bank- OBITUARIES Isle Grand Prix weekend, will defense message. Ⅲ The Michigan Women’s ations from California to ruptcy. be held for the first time at The Ohio roads message is Foundation on April 24 hon- Texas is expected to lead to Ⅲ Gov. Rick Snyder con- Ⅲ Marcella Tandy Belle Isle Park. part of a series of videos and ored three executives at its approximately 250 new jobs firmed that a financial Peterson, a longtime Detroit The evening includes a facts sheets called “Reality Women of Achievement and at the automaker’s techni- emergency exists in High- Public Schools administra- seated dinner by Andiamo, a Check” that seek to explain Courage celebration: Mary cal center in Washtenaw land Park. The city, $19 mil- tor and former U.S. Depart- program hosted by WJR AM why the state road agency — Barra, General Motors Co. CEO; County. lion in debt, was given sev- ment of Treasury official, 760’s Paul W. Smith, a live often a target of public, me- Linda Forte, senior vice presi- Ⅲ Southfield-based Op- en days to explore options. died April 11. She was 97. auction and a live perfor- dia and political criticism — dent of business affairs at tum, a health services tech- Ⅲ Detroit’s Public Lighting Ⅲ Mary Waterstone, a for- mance by country music does the things it does. Comerica Bank; and Irma Elder, nology subsidiary of United- Authority completed the in- mer Wayne County Circuit singer Josh Kelley. “The heart of this myth is- CEO of the Elder Automotive Health Group, said it will stallation of nearly 5,000 Court judge, died April 21. General Motors Co.’s Mark n’t that Ohio’s roads are bet- Group in Troy. hire about 75 employees LED lights with overhead She was 74. DBpageAD_DBpageAD.qxd 5/2/2014 4:58 PM Page 1

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