GOP Balks at Funding Healthy Michigan Plan

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LOOKING BACK Data Detroit: Making deals: Mall evolves as 7.2 sq. miles It’s as hard as shoppers do drive the city you think PAGE 6 PAGE 3 PAGE 3 GOP balks at funding Healthy Michigan plan

With the state facing a budget Governor’s planned ‘lockbox’ is bare shortfall of at least $400 million in fiscal 2016, there also is no propos- By Jay Greene Healthy Michigan Medicaid ex- al this year to set aside state sav- [email protected] pansion started to decline and the ings from Healthy Michigan ex- When championing Medicaid state needed to contribute up to 10 pansion. Ann Arbor startup expansion under health care re- percent of total costs to keep the “We are concerned about fur- form in 2013, Gov. Rick Snyder program going. ther funding for Healthy Michi- spoke often about his desire to But despite Snyder’s budget rec- gan,” said Rick Murdock, executive place half of the near $1 billion in ommendations to fund the lock- director of the Michigan Associa- state savings over the next decade box in fiscal 2014 and 2015, the tion of Health Plans, which repre- gets a regional lift into a “health savings lockbox.” state Legislature failed to place 50 sents 12 of the state’s 13 Medicaid The state savings, primarily percent of state savings — which HMOs. from lower general fund spending amounted to more than $220 mil- Murdock said his concern is TechTown, Automation Alley help Civionics grow on mental health and prison lion — into the health savings sub- two-fold: One, how legislators will health costs, would be used in fis- account of the governor’s budget By Tom Henderson cal 2017 when federal funding for stabilization fund. See LOCKBOX, Page 29 [email protected] Can a village raise a tech startup? Ann Arbor-based Civionics LLC hopes so, as it tries to make the MLB’s reach to women in play at D Shop switch from being a company exist- ing on government research grants for its wireless sensors to one that By Bill Shea will make products to sell to cus- [email protected] tomers. The Detroit Tigers’ D Shop retail store at Comerica The company, spun off from the Park is a petri dish in which the economic results of University of Michigan in 2009 to Major League Baseball’s ongoing effort to market the provide wireless sensors to monitor game to women can be viewed. the health of civil engineering proj- The walls, racks and shelves inside the 6,000-square- ects, is a poster child for the regional foot shop brim with jerseys, hoodies and T-shirts de- cooperation that has evolved in resigned specifically for women in a full range of sizes, cent years to help promising tech and other apparel and merchandise aimed at female startups become actual companies. fans — designed to appeal to what MLB has said is the Civionics was founded by Jerome gender that makes up 46 percent of baseball fans. Lynch, a UM professor of civil and [LEISA THOMPSON] Both the brick-and-mortar Tigers ballpark shops environmental engineering, and Jerome Lynch, chief science officer for and the team’s official online store are filled with jew- Andy Zimmerman, one of his doc- Civionics, holds one of the company’s elry, footwear, handbags, makeup, swimwear, medical toral students. Lynch is now chief sensors. scrubs, maternity wear, luggage and fitness gear. science officer; Zimmerman is CEO, Also for sale are Pandora bracelets and charms and though he lives in Colorado now, being mentored by an executive in a Dooney & Bourke line of handbags, all in Tigers livery. [GLENN TRIEST] and a new CEO likely will be named residence at Detroit’s TechTown The past couple of years have seen the amount of The D Shop at Comerica Park has walls, racks and shelves soon. who likely will become the compa- full of hats,T-shirts, hoodies, purses and jewelry for the Civionics is based in the tech in- See TIGERS, Page 28 discerning female Tigers fan. cubator at UM’s north campus; it is See CIVIONICS, Page 27

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2 CRAIN’S DETROIT BUSINESS // April 13, 2015

fense contractor,” said Eric Icard, of Western Michigan University’s MICHIGAN project manager at The Right Place College of Aviation. INSIDE Inc., the Grand Rapids business de- Tanger Factory Outlet Center THIS ISSUE velopment organization that Inc. moved up the opening date for BANKRUPTCIES ...... 6 BUSINESS DIARY ...... 23 helped facilitate the move. its West Michigan mall to July, CALENDAR ...... 24 The company’s decision to relo- MLive.com reported. Previous CLASSIFIED ADS ...... 25 cate was driven largely by increases dates had set the opening for the KEITH CRAIN ...... 8 in efficiency and operating costs, $80 million, 80-store retail center in MARY KRAMER ...... 17 BRIEFS said Keith Rayborn, president of Kent County’s Byron Township for OPINION ...... 8 Plasan North America. Plasan’s two this fall. Tanger Outlets, which OTHER VOICES ...... 9 largest ground vehicle OEM cus- broke ground last summer on the PEOPLE ...... 23 Strong medicine deal? rigo completed a similar tax ma- tomers are in Warren, adjacent to center, has two other malls in the RUMBLINGS ...... 30 Mylan offers to buy Perrigo neuver in 2013, acquiring Elan Corp. the U.S.Army’s Warren-based Tacom state, in Howell and West Branch. STAGE TWO STRATEGIES ...... 16 so it could be domiciled in Dublin. Life Cycle Management Command. Walker-based MeijerInc. said it WEEK ON THE WEB ...... 30 Mylan NV has offered to buy fel- plans to invest about $50 million in Perrigo Co. low drug maker for $28.9 Vt.defense contractor MICH-CELLANEOUS upgrades at four supercenters in COMPANY INDEX: billion — a deal that would create a plans move to West Mich. the Dayton, Ohio, area, MiBiz re- powerhouse for generic medicine. LINC Community Revitalization, ported. The company expects work SEE P 29 According to a statement last week Bennington, Vt.-based defense a neighborhood revitalization non- to begin this month and wrap up by reported by Bloomberg, Mylan of- contractor Plasan North America Inc. profit in Grand Rapids, said it plans year’s end. schedules due to historic ice cover fered $205 a share in cash and stock announced plans to invest $12.3 mil- a $15 million project to create at In Michigan, at least one in and brutal weather. The Lake Carri- for Perrigo, which is based in lion to relocate its headquarters and least 70 apartment, townhome and five jobs is tied to water. That’s ac- ers Association said the ice-related Dublin but operates from Allegan operations to the Grand Rapids sub- row housing units, filling the major- cording to the new Michigan Blue shipping slowdown last year cost in West Michigan. urb of Walker, MiBiz reported. ity of a city block and creating what Economy report, from the Annis 4,000 jobs and about $705 million That represents a 25 percent pre- The manufacturer of a variety of LINC is referring to as Eastern Vil- Water Resources Institute at Grand in economic losses in steelmaking, mium over the April 8 closing price ballistic armor, composite struc- lage, the Grand Rapids Business Valley State University and the power generation and construction for Perrigo, which makes a range of tures and other protection systems Journal reported. LINC said the Michigan Economic Center at Prima industries in the Great Lakes basin. products including skin gels, in- primarily for land vehicles used by properties would be “priced afford- Civitas, Michigan Radio reported. Mark Gill, U.S.Coast Guard director jectables and nasal sprays. Perrigo’s the U.S.Department of Defense and ably to appeal to working-class in- Transportation, ports and shipping of vessel traffic services in Sault Ste. board will meet to discuss the pro- other government agencies will dividuals and families,” with con- add more than 65,000 jobs and $3 Marie, said he anticipated the Coast posal, the company said. consolidate its corporate offices, re- struction to begin next spring and billion to the economy each year, Guard will cease ice-breaking by The bid by Mylan, which makes search and development and pro- completion in 2017. said the report. April 30. about 1,400 medications, would duction into the new leased facility South Lyon-based Aerius Flight Shipping on the Great Lakes The Fresh Thyme Farmers Mar- add to a record period of consolida- in Walker, where it expects to create LCC is the first company in the state has groaned back to life after an- ket in East Lansing will open April tion in the pharmaceutical indus- 120 additional jobs over the next to get Federal Aviation Administra- other rough winter. Freighters were 29 in Trowbridge Plaza near Michi- try. Mylan, with operating head- three years. Plasan — which also tion approval for commercial-ap- moving mostly unhindered gan State University and replace quarters in Canonsburg, Pa., agreed considered locations in Texas and plication drone photography and through U.S. and Canadian waters what used to be Goodrich’s, last year to acquire non-U.S. opera- Tennessee — plans to begin opera- videography, MLive.com reported. last week, MLive.com reported. MLive.com reported. The grocery tions of Abbott Laboratories for $5.3 tions by the end of August. The company is comprised of com- This was a relief to shipping com- store is the first in Michigan for Fresh billion as part of a plan to move its “It’s a big deal that here in West mercial rated pilots and certified panies that started the 2014 ship- Thyme, described as a hybrid be- tax address to the Netherlands. Per- Michigan, we’re able to attract a de- flight instructors who are graduates ping season well behind normal tween Whole Foods and TraderJoe’s.

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CRAIN’S DETROIT BUSINESS // April 13, 2015 3

Q&A: GRETCHEN PERKINS City’s economic engine: 7.2 sq.mi.

By Amy Haimerl Key to deals: 1,000 [email protected]

ore than 35,000 people live and 135,000 So is gentrification happening? Not exactly. Per work within the 7.2 miles that make up capita income is still less than $25,000 and the cor- meetings a year Mgreater downtown Detroit, according to ridor is 69 percent African American. the new “7.2 Sq Mi” report issued recently by the “This notion that greater downtown is becoming Hudson Webber Foundation. less diverse and overly affluent is not true,” Egner Huron’s Perkins recognized for sourcing prowess “The 7.2 is the economic engine that is driving said. “But we have to make sure that this greater the city,” said Dave Egner, foundation president. “It downtown remains diverse. It’s our differentiation Gretchen Perkins is the star of accounts for 40 percent of the city jobs.” factor with other metro areas.” the April issue of Mergers & Acqui- This is the second time the foundation has is- To highlight the difference between now and sitions, staring out at readers, her sued a report card on the area, which encompasses then, Crain’s compared data from the 2013 and arms crossed just below the words downtown, Midtown, Corktown, Eastern Market, 2015 report cards, but from different data sets. The that proclaim her “Dealmaker of Woodbridge, Lafayette Park and Rivertown. That re- 2013 report pulled from the 2010 Census, while the the Year.” port was a baseline, Egner said, while the 2015 re- 2015 is based on a snapshot taken in 2012 by the The issue focuses on M&A’s port is aimed at spotting trends. American Community Survey. eighth annual midmarket awards, and Perkins is the first woman to win the top honor, which was given for two things — her role as chief deal sourcer for Detroit-based Huron Capital Part- ners LLC, and for serving as co- chair of the national Public Policy Committee for the Association for Corporate Growth. Huron Capital is usually the most active private equity company in the state. It did 22 acquisitions last year, with a sector focus on manufacturing. Founded in 1999, Huron Capital has raised more than $1.1 billion for four [GLENN TRIEST] funds, the latest an oversub- Gretchen Perkins is chief deal sourcer scribed fund of $500 million. for Huron Capital Partners. The firm has bought more than 90 companies, and its current Congratulations on the award. portfolio companies employ more How about a little background? than 7,500 throughout North Where did you go to school? I grad- America. The business model is to uated from the University of Michi- roll individual companies into gan in 1986. I got my bachelor’s of larger platform companies. Huron business administration from the has 15 platform companies with business school, with a concentra- aggregate revenues of $750 mil- tion in finance. lion, according to managing partner Brian Demkowicz. And then? I started working for Perkins, 51, is a partner in the the First National Bank of Chicago. I firm, which she joined in 2008, re- was there three years and then recruited from Royal Oak-based located to Detroit. I came back be- Long Point Capital Inc. by cause I got engaged to a guy who Demkowicz. Perkins was hired as lived here. I joined Barclay’s Busi- vice president of business devel- ness Credit as a business develop- opment, was later promoted to ment officer. That’s when I began senior vice president and in 2013 my career in mergers and acquisi- was promoted to partner. tion. In Chicago, I’d been working Her volunteer service includes in real estate. I then worked for GE being on the board of the United Capital in Detroit for three years, Cerebral Palsy Association of Met- then I went back to Barclay’s for ropolitan Detroit and mentoring a another three years after it be- class of 25 at-risk girls at Osborn came Fleet Capital Corp., doing Evergreen Academy in Detroit cash-flow and asset-based lending through Women of Tomorrow. for auto suppliers around town. I Perkins talked to Crain’s re- then joined an automotive con- porter Tom Henderson about her sulting firm, IRN, which was based role at Huron and why beating the in Grand Rapids. In 2002, I was re- bushes for deals, instead of wait- cruited to Long Point Capital, ing for investment bankers to which had evolved to the point come calling, is important for a where they needed someone to company in the private equity hinterlands of Detroit. See DEALMAKER, Page 26

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4 CRAIN’S DETROIT BUSINESS // April 13, 2015 DAC reaches 100, marks it with sculpture park

By Dustin Walsh current leaders to caucus. DAC history [email protected] Cindy Vizza, publisher and sen- The Detroit Athletic Club will cel- ior director of knowledge for the In 1880s, DAC members held the ebrate its centennial on April 24 Washington D.C.-based National world records for the 100-yard dash, with strong membership and a new Club Association, said the recession 220-yard dash and the pole vault. sculpture park. shook out many clubs. DAC member and University of The Albert Kahn-designed club is “A lot of closures occurred for the Michigan running back Neil Snow also completing rooftop renova- lower- and middle-tiered clubs,” scored five rushing touchdowns in tions to create a restaurant, lounge Vizza said. “Clubs like the DAC, with the 1902 Rose Bowl — a record that and meeting rooms, which are ex- rich history and membership, sur- still stands. pected to open in July. vived intact and are now taking on Detroit Tigers center fielder Ty The nonprofit club has spent new growth.” Cobb, while not a member, played nearly $60 million in restoration The $2.3 million sculpture proj- for the club’s DAC Deltas during a and construction projects over the ect, which will be placed on the is- rehab stint in the summer of 1906. past 17 years, said Executive Man- land bisecting Madison Avenue in ager Ted Gillary. front of the club, represents the Several famous writers It hasn’t always been easy. Private club’s original mission of support- contributed to the DAC News, clubs have been under stress across ing amateur athletics. [DETROIT ATHLETIC CLUB] including James Thurber, Edgar the country. Some have closed lo- Nine-foot statues of a second The DAC plans a $2.3 million sculpture project on the Madison Avenue island in Guest, Dorothy Parker, Ring cally, including the Renaissance baseman throwing a runner out at front of the club to represent its original mission of supporting amateur athletics. Lardner and Robert Benchley. Club and Detroit Club. first, two runners and a football The Last Word, an old-timey But despite some ups and downs running back donning the number Thomas Schomberg. His most fa- association in 1913 and the club cocktail of equal parts gin, green over the years, the DAC remains the 20 were commissioned by the club’s mous work is the Rocky statue in opened its doors in April 1915. Chartreuse, maraschino liqueur and city’s most prominent locale for foundation and sculpted by A. Philadelphia. Upon its opening, DAC members lime juice, was invented at the club. A fourth sculpture – a female controlled 90 percent of auto pro- swimmer – will be installed in the duction in the world. In 1916, DAC members owned, circular drive entryway of the club. Members have included Henry operated or financed 60 carmakers The DAC trained female Olympic Ford and every generation of the and 100 auto suppliers. hopefuls decades ago. family since, John DeLorean, Source: DAC News But it’s the brass of DAC mem- founder of DeLorean Motor, Roger bership that has cemented its lega- Penske and hundreds of others. bership, you lose a lot,” Strain said. cy in Detroit history. Northwest Airlines and the famed “It’s more than initiation fees and “The strength of this club is the Ford Mustang were conceived what it costs to get in the door. The social aspect,” Gillary said. “The there, according to the DAC. clubs that are successful are those trust between members here trans- that find ways through their mem- Surviving, then thriving lates into the business out there; our bership to sponsor new members.” members dine together, play sports Today, the DAC’s nearly 4,400 Strain said the club maintained together, get to know each other’s members represent more than services while drastically dropping families.” 2,000 companies, according to the the initiation fee to $6,500 from Bill Kozyra, chairman, president DAC. The makeup consists of more $40,000 during the recession. Its and CEO of Auburn Hills-based TI than 2,900 resident members, 400 fees have since risen to $13,500 with Automotive LLC, has been a mem- intermediate (ages 21-33) and near- plans to reach $20,000 by 2020. The ber since 1997. ly 1,100 clergy, broader U.S. and in- club’s dues are $600 per month. “When I’m there, I’m with people ternational members. “We didn’t alter our service and like me; it’s a tremendous platform Gillary said intermediate mem- that’s what kept us steady,” he said. to prosper, personally and profes- bership, capped at 400, has a wait- The DAC also faced struggles sionally,” Kozyra said. “Inside the ing list. through the recession with mem- DAC is always a reminder of the Resident members, those with bership dropping to around 2,300 great start we had as automotive pi- voting rights, pay an entrance fee of members. Much of its new growth is oneers here in Detroit.” $3,500 and $337 monthly dues. riding on the inclusion of members’ Women, who were finally al- families, Gillary said. Midtown start, then a fizzle lowed as members in 1986, now Gillary said the club’s focus on The original club opened in 1887 make up roughly 12 percent of family is critical on two fronts – it’s on Woodward Avenue north of what membership, according to the DAC important to members and it allows is now the Whitney restaurant. News. Crain’s Detroit Business Pub- access to the next generation of However, by the early 20th Cen- lisher Mary Kramer served as the club members. tury the club had mostly fizzled out club’s first and so far only female “We made a strategic plan several and was being solely funded by am- president in 2003. years ago to bring in more families ateur baseball player John Kelsey, Bill Morrow, senior vice president here so parents and children can founder of Kelsey Wheel Co., Ford of Crain’s parent Crain Communica- engage the club together; whether Motor Co.’s major wheel supplier. tions Inc., was president in 1995. that’s at the pool or over dinner or at Kelsey, along with many of the Other clubs have not been as one of our many events,” Gillary early auto industry pioneers, con- prosperous. said. “The sons and daughters of tinued to meet socially at the The Detroit Club, which opened our members represent a very Pontchartrain Hotel Bar on Wood- in 1892, closed for good last year strong part of our intermediate ward Avenue, waxing nostalgic when its longtime home at Cass Av- membership.” about the club which produced enue and Fort Street was auctioned. Kozyra said he hopes his son, a some of the biggest names in sports The Renaissance Club closed in 30-year-old TI plant manager, be- at the time, including world-class 2010, unable to withstand mount- comes a member. track stars John Owen Jr., Harry Jew- ing buyouts of GM executives, and “My son represents the new ett and Fred Ducharme. merged with The Skyline Club in guard coming into the industry and Kelsey, along with fellow Span- Southfield. The Great Recession the DAC is really a platform for his ish-American War veteran Henry claimed others including the famed generation of professionals to Joy, president of the Packard Motor Knickerbocker Yacht Club in New learn,” Kozyra said. “He has an op- Car Co. and later part owner of the York. which dated to 1874. portunity I didn’t take at his age, to Detroit Tigers; Charlie Hughes, who The Detroit Golf Club, on Hamil- make contacts and find new founded the Detroit Cougars, which ton Road in Detroit, felt the sting of sources of information from the became the Detroit Red Wings, and decline during the recession. The great minds there. He can rub el- many others decided to reboot the club dropped to roughly 550 mem- bows with the Ford family. There club and commissioned a $2 mil- bers, but has since recovered to 638, isn’t another place in Detroit where lion clubhouse on Madison Avenue. said COO Michael Strain. that’s likely to happen.” The group, 109 of Detroit’s lead- “We’re in the dues business; Dustin Walsh: (313) 446-6042 ing dignitaries, signed the articles of when you lose a third of the mem- Twitter: @dustinpwalsh DBpageAD_DBpageAD.qxd 4/7/2015 12:13 PM Page 1

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6 CRAIN’S DETROIT BUSINESS // April 13, 2015 Crain’s April 15, 1985, issue looked at Arborland’s shift LOOKING BACK to a discount format. The change was one of many for the Ann Arbor shopping center, which has adapted over the years to fit changing consumer habits. More at crainsdetroit.com/30 Arborland evolution a case study in shopping habits

By Sherri Welch had an ownership interest and did [email protected] the design and construction, said Arborland Mall’s shift to a dis- Maria Mainville, Taubman director count format three decades ago of strategic communications. would prove to be yet another step- Taubman opened Briarwood Mall pingstone in its journey of adapta- in 1973, and retail also began to de- tion to the changing retail market. velop in and around downtown Within a dozen years, Arborland Ann Arbor. Despite Arborland’s lo- — which opened as a strip center cation on Washtenaw Avenue at and enclosed a few years later — U.S. 23, along a main route between was “de-malled” and converted the University of Michigan and East- back into a strip center. Along the ern Michigan University, the mall way, those strip centers carried dif- had a hard time competing. ferent labels, from manufacturer’s Vacancies rose over the next outlet mall to power center, de- decade until 1983, when Melvin pending on the mix of tenants. Simon & Associates, now Simon It began to attract national Property Group, the largest mall lifestyle retailers, as well as the high- company in the U.S., bought the er-end discount retailers that now center. By that time Taubman had occupy Arborland Center, bringing [COURTESY AMCAP PROPERTIES] [A. ALFRED TAUBMAN COLLECTION, sold its share, Mainville said. its occupancy to nearly 100 percent Arborland has evolved from a strip shopping center to an enclosed mall and then BENTLEY HISTORICAL LIBRARY, UM] Two years later, operating as Ar- today, with all but a single retail back into a strip center,with such shops as Potbelly, OfficeMax and Hiller’s Market. A newspaper advertisement from 1961 borland Consumer Mall, the mall space taken. called the upcoming mall “one of the had shifted to a discount format In many ways, Arborland’s evolu- may not be done evolving. mixed-use developments, “I would- four great regional shopping centers in aimed at middle- and upper-in- tion through the years has mirrored “Its future is very debatable,” said n’t be surprised if within 10 years Michigan” and boasted that it would come shoppers. changing trends in retail, from the Ann Arbor real estate developer and they bulldozed one of the large have parking for 3,000 cars. The strategy was working, as early days when shoppers spent consultant Peter Allen, an adjunct buildings and put residential over Crain’s reported in 1985, with the hours in enclosed malls to today’s faculty member of the Ross School retail,” Allen said. developed by principal owner number of tenants rising from a low busy lives fueling shoppers’ need to of business and A. Alfred Taubman Charles Gershenson — the brother of 13 in 1984 to 44, or 90 percent oc- Started as strip center get in and get out of stores. College of Architecture and Urban of William and Aaron Gershenson cupancy, by 1985. The Ann Arbor power center, Planning at the University of Michi- Arborland Shopping Center was who went on to found the company But it wasn’t successful long today anchored by Bed Bath & Be- gan for more than three decades. Ann Arbor’s first suburban mall. It now operating as Ramco-Gershen- term. Simon Property Group sold its yond, Toys R Us, DSW, Nordstrom With shoppers increasingly seek- sprang to life in 1961 as a strip cen- son Properties Trust — broker John equity in Arborland at a $500,000 Rack, Marshalls and Hiller’s Market, ing destination retail in walkable ter and was enclosed in 1970. It was Sharemet and Taubman Cos., which loss in 1996, according to a filing with the U.S. Securities & Exchange Commission. And a year later, Balcor Management Services Inc. sold the THE MILLER LAW FIRM mall to Palatine, Ill.-based Joseph Changing the Odds in our Clients’ Favor Freed and Associates LLC, Albemarle Equities, Lerner-Heidenberg Proper- ties, Fremont Group and TBM Equi- ties for a mere $7 million. Led by Joseph Freed and Asso- ciates, the investment group the following year converted Arbor- land from an enclosed mall to a power center with several anchor tenants through a renovation that demolished 75-80 percent of the buildings before rebuilding farther back on the property and bringing in new tenants like Bor- ders, Allen said.

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BANKRUPTCIES The following businesses filed for protection in U.S. Bankruptcy Court in Detroit April 3-10. Under Chapter 11, a company files for reorganiza- tion. Chapter 7 involves total liqui- dation. The Miller Law Firm is Recognized Daytona Storage Inc., 143 Cady Centre, Suite 328, Northville, volun- as a Leader in Complex Business Litigation tary Chapter 7. Assets and liabilities not available. Q Automotive supplier counseling Q Commercial and business lawsuits Telesource Services LLC, 1450 Highwood East, Pontiac, voluntary Q Employment litigation Q Shareholder and partnership disputes Chapter 11. Assets and liabilities not available. Referral fees honored on contingency fee cases JAB Properties LLC, 4320 E. 12 950 West University Drive, Suite 300 Mile Road, Warren, voluntary Chap- Rochester, Michigan 48307 248-841-2200 millerlawpc.com ter 11. Assets: $615,000; liabilities: $581,212.59. 20150413-NEWS--0006,0007-NAT-CCI-CD_-- 4/10/2015 5:19 PM Page 2

CRAIN’S DETROIT BUSINESS // April 13, 2015 7

History of Arborland reported investment on behalf of a said, but it’s been able to position it- you were doing 10 years ago, 2010 as an open air center, Livonia pension fund, which generally pays self in the market, in spite of the “you’ve probably got some down- Marketplace. 1961: Charles Gershenson, as the highest since it typically looks competition with Briarwood Mall ward pressure,” said Karl Zarbo, di- Today it’s anchored by Kohl’s and principal owner; broker John for a long-term return. and the high-end Arbor Hills right rector of opera- Wal-Mart and includes a series of Sharemet; and Taubman Cos. Arborland remains under Hart down the street. tions for West smaller out lot buildings “to give it develop Arborland Shopping Center and AmCap ownership. And many “They’ve found their niche,” Bloomfield more of a street feeling,” Zarbo said. as Ann Arbor’s first suburban mall. of the same retail tenants also re- Ciura said. Township-based In Grand Rapids, Lormax Stern main.The center is the strongest it’s Allen takes a different view. Lormax Stern De- opted to take the mall portion off of 1970: Arborland is enclosed, been in 10 years, given the re- The only way to get to Arbor- velopment Co. the front of Centerpointe Mall, becoming Arborland Mall. bounding economy and the tenant land is to drive there, which is at But there’s no refaced the back stores and re- 1983: Purchased by Melvin mix, said retail consultant Cindy odds with demand for walkable one-size-fits-all opened it as an open air center, be- Simon & Associates,now Simon Ciura, principal of CC Consulting retail in areas like downtown Ann approach for re- fore selling it last July, he said. Property Group, for undisclosed LLC in Bloomfield Hills. Arbor, Detroit’s Midtown and Karl Zarbo: Time tail properties. “Time pressures today are really amount. By that time, Taubman had “It’s got a little bit of something Birmingham, Allen said. pressures are “At Macomb what’s driving the business,” Zarbo sold its share. for everyone,” with strong anchors Those areas are providing “au- driving. business. Mall, we’re said. “Our philosophy if Arborland 1985: Shifts to discount store and stores geared toward women, thentic, unique experiences” and spending tens of was ours is ... it’s fine if they go to format; renamed Arborland men, teens, children, pets and gaining in popularity, he said. millions (on renovations), and we’re Briarwood for (fashion shopping), Consumer Mall. households in general, she said, He believes that type of mixed- not de-malling,” he said. but we’d want them for different helping attract a broader market of use, walkable retail could be in Ar- Yet, Lormax Stern de-malled or reasons.” 1996: Simon Property Group shoppers. borland’s future. knocked down Livonia Mall five or Sherri Welch: (313) 446-1694 reports a $500,000 loss on the sale Arborland had to find its way, she If you’re doing the same thing six years ago and reopened it in Twitter: @SherriWelch of the mall. 1997: Balcor Management Services Inc. sells Arborland to Palatine, Ill.-based Joseph Freed and Associates LLC, Albemarle Equities, Lerner-Heidenberg Properties, Fremont Group and TBM Equities for $7 million. 1998: Arborland closes to be “de- malled,” converting to an open-air power center with several anchor tenants, through a renovation that demolishes about 75 percent of the buildings before rebuilding farther back on the property and bringing in tenants like the former Borders. 1999: Reopens. 2005: Sold to a joint venture that includes Simsbury, Conn.- based Hart Realty Advisers Inc. and Stamford, Conn.-based AmCap Inc. for $102 million.

From Previous Page

It reopened in 1999 and six years later was sold to a joint venture that included Simsbury, Conn.-based institutional real estate adviser Hart Realty Advisers Inc. and Stamford, Conn.-based AmCap Inc., which buys and manages shopping centers, for $102 million. Crain’s reported at the time that Hart held 90 percent of the venture and had bought it on behalf of an Remember it’s my undisclosed state pension fund. AmCap did not return calls seeking comment. money, not theirs. The deal “was a landmark thresh- old,” Allen said. “No one could believe they got such a high price.” When you reach a certain point in your life, you realize you need more Freed and Associates had bought the property at a distressed price than just a savings account. You need a bank that can help protect, because it was doing so poorly as nurture and grow your wealth. the economy sought to right itself When it’s time, come to Comerica. from the tech bust of the early 2000s, he said. “They bought it cheap (and) re- built it perfectly, hitting the taste buds of shoppers with just the right types of uses to attract new shoppers there,” Allen said. “Then they got high rent ... and they turned around and sold it at almost a 20 percent multiple.” RAISE YOUR EXPECTATIONS. At the time, the center was 100 percent leased with tenants including Hiller’s Market, Bed Bath & Be- Old Navy, DSW Shoe yond, Borders, ® Warehouse, Arhaus Furniture, Star- bucks and Cold Stone Creamery. Business Wealth Management Personal The timing of the deal in connec- MEMBER FDIC. EQUAL OPPORTUNITY LENDER. comerica.com tion with the recovering economic CBP-4049 07/14 cycle helped, Allen said, as did the 20150413-NEWS--0008-NAT-CCI-CD_-- 4/10/2015 5:38 PM Page 1

8 CRAIN’S DETROIT BUSINESS // April 13, 2015 CRAIN’S OPINIONDETROIT BUSINESS Washington should help close talent gap

What’s the No. 1 headache for many Michigan employers? Not enough people with skills required to do specific jobs. And Washington holds the key. There are two big opportunities to improve Michigan’s economy: In- crease the number of H-1B visas for Michigan-based companies and jump-start Gov. Rick Snyder’s idea of loosening immigration restrictions for foreign-born people with college degrees who agree to live in the city of Detroit. Last week, business leaders protested federal policies that limit the number of H-1B visas — which allow skilled foreign workers to accept jobs in the U.S. Applications for the visas exceed the federal supply by an order of 3-to-1. LETTERS Immigration is a hot political topic, but this is something Congress needs to act on to promote economic growth across the country — and particularly Michigan. The visa issue is particularly irritating since so many Michigan uni- Continue state push for renewable energy versities have a growing number of international students, many in technical fields like software design and engineering. Federal policy forces those students back to their home countries — to work for other Editor: Crain’s Detroit Business welcomes as well as taking part in community companies that in turn compete with companies in the U.S. In response to the article posted letters to the editor. All letters will health initiatives in the metro De- The second opportunity: More than a year ago, Snyder and Detroit on Crain’s website March 25 regard- be considered for publication, troit area have allowed me to realize Mayor Mike Duggan asked President Obama to allocate 50,000 employ- ing Gov. Snyder’s initiatives for more provided they are signed and do not the connection between public ment-based visas to skilled immigrants who would live and work in De- renewable energy use (“Snyder defame individuals or organizations. health and the environment. We troit. faces challenges in boosting Michi- Letters may be edited for length must persist in Michigan’s transi- The White House has been hugely silent on the request. gan’s energy efficiency, renewable and clarity. tion to increased renewable energy These visas are part of the green-card process, separate from H-1Bs, energy”), I agree with this recent use and the shutdown of our coal which are temporary work permits. But both initiatives would go a long push for increasing renewable ener- Write: Editor, Crain’s Detroit plants. Not only because it will cre- way in helping Michigan strengthen its 21st century economy — with- gy dependency because it means Business, 1155 Gratiot Ave., Detroit, ate jobs, but because it will improve out the federal government having to spend a dime. that we will be decreasing depend- MI 48207-2997. the health of our residents. Focus- ence on energy created by coal Email: [email protected] ing the state’s changing energy poli- power plants. The article also stated cy on public health impact will lead that our state is likely to finally meet to the long-term reduction in both No help from party for Snyder the requirements of Public Act 295 Very few are aware that the CDC public health issues and health care (10 percent utilization of renewable reported that Michigan’s asthma costs. Talk is beginning to percolate about Republican presidential hope- energy in the state). rate is 10 percent above the national The impact of reducing health fuls; The Detroit News last week included Gov. Rick Snyder among the However, we cannot stop here. average, or that Michigan ranks fifth care costs for the state should not “21 elephants” in the 2016 presidential waiting room. We must hold Gov. Snyder account- in the nation in premature deaths be underestimated, as it can con- But what chances do Snyder’s national aspirations have when his able to his commitment for increas- due to coal plant pollution. A heavy tribute to better economic out- own party continues to oppose some of his key initiatives? ing clean, renewable energy utiliza- contributor to our public health dis- comes. As Gov. Snyder states, As Jay Greene reports on Page 1, Republicans are bucking Snyder’s tion in our state, especially as Public parities has been coal plant pollu- “Michiganders do not back away plans for setting aside dollars Michigan saves by using federal subsidies Act 295 terminates at the end of this tion. from challenges.” Transitioning to for extending health care to low-income residents. Snyder wanted to set year. As a future health professional more clean and renewable energy aside half of the savings — more than $220 million in 2014-15 — into a In addition to it being better eco- studying at Wayne State University, I may be challenging at times, but “lockbox” for future health care spending when federal subsidies run nomically to invest in renewable have witnessed the health effects of we must do better than we have in out. energy rather than opening new the coal plants in our state (i.e., the the past for the sake of public Members of his party have other plans. coal plants, we must make light of River Rouge plant) that have per- health. It’s another example of Snyder’s own party trying to derail an impor- the potential improvements in pub- sisted for years. Volunteering at Yashesh Parekh tant initiative from the CPA-turned-governor. lic health. most of the Detroit-area hospitals Sterling Heights Competition is always a good thing

ways identify him as the owner, it’s illiquid property that no one estate activity should always mir- And that’s what we really need. difficult to figure out whether there wants. It’s always nice to have at ror other sorts of investment. Real Jobs. I’ve been standing on a soap- could be other properties that he least two other folks who want estate investment tends to be pas- box for quite a while preaching the KEITH CRAIN owns as well. what you have. Just go to an auc- sive, but folks must assume that importance of economic develop- Granted, a couple of inexpensive tion sometime and you’ll see that there will be companies who will ment. So it looks like Dan Gilbert isn’t buildings in Detroit aren’t going to in action. need the space. Those companies It took Detroit a long time to get the only person interested in buy- even make a small dent in his port- As Detroit continues its recovery, are going to be buying equipment into the financial shape that re- ing downtown Detroit real estate. folio, but it’s a great endorsement we’ll see a lot more interest in pas- as well as hiring employees to run quired all the fixes. But that’s all be- Crain’s had a story in our April 6 that this city is a good investment sive investment in not just Detroit, the machinery. Lots of these folks hind us, and now we are happily in issue that Carlos Slim Helú, one of for folks all across the globe. but the entire region. There’s lots of are simply moving from one facili- a mode of growth. the richest men in the world, had And the nice thing for Dan economic activity here, and in- ty to another, but there has to be It’s very nice to see lots of interest purchased a building downtown. Gilbert is that there appears to be vestors realize that companies al- some sort of new activity to make in real estate in Detroit. That’s just We know of this one, and since a market for his property as well. ways need a home. all this real estate investment pay the beginning. And that is just what he’s using corporations that don’t al- It’s not fun to hold on to a lot of The other good news is that real off. this city needs. 20150413-NEWS--0009-NAT-CCI-CD_-- 4/10/2015 11:23 AM Page 1

CRAIN’S DETROIT BUSINESS // April 13, 2015 9 Use of eminent domain would help revive Detroit blighted — received twice their fair tially available for new economic de- Ford Health System’s long-term land tors, absentee landlords and vacant market value in just compensation velopment. The city owns a majority assembly project south of Grand lot owners would not be protected OTHER VOICES and federal relocation grants to buy of these, but a substantial number Boulevard and Marathon Oil’s acqui- and be entitled to fair market value better homes in less blighted neigh- are privately owned, many by specu- sition of a buffer zone for its plant in for their property and not the exorbi- John Mogk borhoods. A later University of lators, requiring negotiated purchas- southwest Detroit. tant windfalls that they now com- Michigan study found that the great es. Michigan should amend its con- mand. John Mogk is a professor at Wayne State majority of homeowners were com- For speculators, no price is too stitution and follow the lead of Cali- Detroit leads the nation in the University Law School. pletely satisfied with their outcomes. high and no time to negotiate too fornia in allowing eminent domain percentage of vacant land, blight- Detroit is in a land assembly long, as learned by the Ilitch organi- to be used for economic developed properties, unemployment eith Crain’s March 23 col- straitjacket. It desperately needs to zation in assembling land for its new ment, but protecting homeowners and poverty. The city’s revival re- umn, “Begin economic de- restructure its economic base and is arena project. The organization has who have lived in their homes for at quires a major redevelopment of Kvelopment at home,” is right facing high land costs and long de- been assembling land for more than least one year. Purchase of their industrial and commercial proj- on the mark. Detroit’s revitalization lays in assembling development two decades, paid many times fair property would be required to be ne- ects to complement the agricul- needs much more than new offices, sites. Tens of thousands of vacant market value for a number of parcels gotiated. This addresses a major crit- tural and ecological use of vacant retail stores, lofts and innovative parcels and blighted buildings are and is still negotiating exorbitant icism of eminent domain that per- land. Without the renewed use of restaurants within the 7 square miles scattered like a checker board prices with holdouts. Similar prob- manent homeowners have a right to eminent domain, however, it is of greater downtown. The rest of the throughout the city and are poten- lems have been faced by the Henry make a choice. Investors, specula- unlikely to occur. Ⅲ city’s substantially vacant 138.9 square miles begs for new large economic development projects, such as auto and supplier plants, transportation hubs, processing com- plexes and research parks to complement agricultural and ecological use of the city’s vacant land. Howev- er, there is little or no chance that large industrial projects will happen anytime soon, unless Detroit’s land assembly problem is solved. Detroit does not have the ability to quickly assemble land in large enough tracts to support major projects. The last two auto plants built in the city — the GM Hamtramck and Chrysler Jefferson Avenue North as- IT’S NOT HOW WELL THEY WORK FOR US. sembly plants — each required more than 450 acres and the use of eminent domain to acquire their sites. IT’S HOW WELL THEY WORK FOR YOU. However, the use of eminent domain for economic development is no longer available in Michigan. The state constitution was amended in 2006 to prohibit its use for economic development, no matter how benefi- Eric W. Dietz Shari Krasinski, CTP, CPCP cial the projects might be for alleviat- SVP, Regional Manager SVP, SaleS Manager ing unemployment, rebuilding the Private Client Group Treasury Management city’s economy and increasing the oFlCe oFlCe tax base. Cell Cell While eminent domain can still eriCDieTZ HUnTingTonCoM SHariKraSinSKi HUnTingTonCoM be used to eliminate blight, the term is narrowly defined, requires a high level of proof and must be demonstrated separately on each parcel to Brian Marshall Brad Norman be taken. Large development sites are required to be assembled by sep- SVP, #oMMerCial Region Manager SVP, MiCHigan Regional SaleS Manager Middle Markets Auto Finance & Dealer Services arately negotiating the purchase of hundreds and often thousands of oFlCe oFlCe parcels, making site preparation Cell Cell costly, time consuming and practi- BrianMarSHall HUnTingTonCoM BraDnorMan HUnTingTonCoM cally impossible. Moreover, inter- spersed properties that are not blighted and held by speculators or absentee landlords can stop any fu- Terrance B. Pryor Scott Wolffis ture project. SVP, Regional Manager SVP, !rea Manager oF MiCHigan The GM Hamtramck and Chrysler Commercial Real Estate Business Banking Jefferson Avenue North assembly plants are each 2 million-square-foot oFlCe oFlCe facilities costing billions and em- Cell Cell ploying thousands of autoworkers TerrYPrYor HUnTingTonCoM SCoTTWolFlS HUnTingTonCoM and tens of thousands more in supplier plants and support businesses. The city has collected hundreds of millions of dollars of property and income tax revenue from the plants and their workers for the past three decades, and there is more to come. The GM plant resulted from the maligned Poletown project spear- headed by Mayor Coleman Young to keep the auto industry in Detroit. The Huntington National Bank is an Equal Housing Lender and Member FDIC. and Huntington are federally registered service marks of The project was opposed by only a Huntington Bancshares Incorporated. Huntington. Welcome. is a service mark of Huntington Bancshares Incorporated. 2015 Huntington handful of local residents, and the Bancshares Incorporated. property owners whose older homes were taken — many of which were DBpageAD_DBpageAD.qxd 4/8/2015 8:20 AM Page 1

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CRAIN’S DETROIT BUSINESS // April 13, 2015 11 SPECIAL REPORT

AMY HAIMERL Editor’s Notebook WEB: [email protected] TWITTER: @ahaimeralad SECOND STAGE Building tech about more than just apps

Detroit’s second annual Tech- week starts today, with five days of speakers, pitch competitions, drinking and schmoozing to celebrate Detroit’s tech industry. Being in this world reminds me of covering the heady dot-com days in New York. VC money flowed as freely as the saké, and tech conferences reigned. The new was king! Long live the king! The collapse was devastating. All the pink slips and dashed dreams, the lost investments. It also taught me to spot hype or a bad business model. So you’ll forgive my skepti- cism when I stand at cocktail parties and hear the booster- ism that crashed Silicon Alley. Don’t misunderstand me: I support entrepreneurs and the startup economy. But I cannot stand behind hype. I believe that risk taking and the freedom to fail are critical to innovation. But they can’t just be slogans; they must be paired with an understanding of what can be lost. I believe Detroit can build a strong tech industry if we focus on what makes us great rather that [LARRY PEPLIN] just trying to be the next great Robert (left) and Kevin Schnieders have made careful plans to ease the passing of their business, Educational Data Systems Inc., from father to son. home of app makers. That’s about emulation rather than innovation. Just look at the growth of De- troit Labs. Yes, they built an app. But they built a pizza-delivery app. And what does Detroit know? Delivery pizza. Handing off the family biz Or Loveland Technologies, which has built a company solving Detroit-specific property Tips on how to move from avoidance to smooth sailing problems and is now taking its technology national. Or Michigan- Funders.com, one of the first equi- By Gary Anglebrandt institute’s director. of the company. Family. Money. Control. Death. ty crowdfunding sites to offer par- Special to Crain’s Detroit Business On closer consideration, it’s not Shadowing all In this light, it’s a wonder anyone ticipation to all people, not just he No. 1 mistake family- so surprising that owners procrasti- these discus- ever gets these plans done. accredited investors, thanks to owned businesses make in nate. Business transfers are sensi- sions is the sub- “In most cases I see, there’s al- Michigan-specific laws. T succession planning is a tive in any field. For enterprises ject of the most a complete lack of written So what is the essence of De- basic one. They don’t bother with it. seated at the intersection of two ex- owner’s eventual documentation,” said Gerard Man- troit? What is our competitive ad- This is surprisingly common. plosive spheres of activity — money death — hardly a tese, attorney at Mantese Honigman vantage? We build things. We Specialists say it’s and family — emo- fun topic. & Williamson PC who has handled move things. We know supply more likely that a Strategies tional battles almost Joseph Horak: “They’re actu- shareholder dispute cases for fami- chains and distribution channels. family business will certainly will arise. “They’re avoiding ally avoiding ly businesses for 32 years. Ⅲ How to keep things We own that. And now we have not have a plan than Siblings who “ar- their own mortality.” their own mortal- For second-stage company lead- running after a traumatic the opportunity to dominate mo- have one. gued over a piece of ity,” Horak said. ers with growth on their minds, event, such as the death bility, where tech meets the The Family Owned lint as kids” fall back Also not fun for entrepreneurs there are brighter things to think of the owner, Page 13 movement of goods and people. Business Institute at into those habits, is the control issue. As in other about, like getting new clients and One of the only VC firms exclu- Grand Valley State Uni- Ⅲ A portrait of how one Horak said. And when key points on the growth timeline controlling expansion, not to men- sively dedicated to mobility, Fonti- versity in Grand business handled the money and jobs are at of a business, succession plan- tion fixing the constant problems of nalis Partners, is based in Detroit with Rapids surveyed handoff, Page 14 stake, things boil over. ning is really about letting go. This running a business. Bill Ford as an investor. For Tech- family businesses in “It’s not unusual that is anathema to hard-driving, con- “I don’t think there ever will be a week, I’ll be conducting a fireside its database last year and found that family members never speak trolling entrepreneurs who made time when we don’t have any prob- chat with Fontinalis co-founder 80 percent of them said they plan to again.” something out of nothing. lems. There is never going to be a Chris Thomas about what mobility pass the business to the next gener- The plans demand tough per- “The very thing that allowed clean slate,” Lorron James, a sec- could mean for Detroit’s future. ation. But only 19 percent had a for- sonal decisions, like choosing one them to start a company and ond-generation executive in De- Check out all the events at tech- mal, written plan to do so. child over another to run the com- make it successful is the same troit-based logistics company week.com/Detroit. “That doesn’t surprise any of us. I pany and questions over estate and thing that makes it hard to let go wish it did,” said Joseph Horak, the wealth planning beyond the scope of one,” Horak said. See SUCCESSION, Page 12 20150413-NEWS--0011,0012,0013-NAT-CCI-CD_-- 4/10/2015 11:28 AM Page 2

12 CRAIN’S DETROIT BUSINESS // April 13, 2015

SPECIAL REPORT: SECOND STAGE SUCCESSION, from Page 11: Earn your MBA degree downtown How to get there, minimize angst James Group In- ways that minimize estate and gift University of Detroit Mercy will offer evening MBA courses at its ternational Inc. taxes, create retirement income for “It’s easy for fam- the founder or some combination Riverfront Campus on East Jefferson, beginning in August. ilies of smaller of both. Private annuities and businesses to get grantor-retained annuity trusts are distracted by the among them. The important thing Experience the Jesuit/Mercy difference with an MBA ranked in the tasks at hand. is that one be chosen and not left to world’s top 30 for sustainability, from an AACSB-accredited business school. Very few are chance. Thinking ahead is “huge” in going to say, this regard, Horak said. Lorron James: ‘Let’s put busi- Ⅲ Funding the transfer. The suc- Scholarships are available. Score a 600 or higher on the Graduate James Group ness develop- cession plan lays out how the fund- Management Admission Test (GMAT) and reduce your tuition by half. ment on hold.’ ” ing of the sale of the business from one generation to the next will The plan occur, in ways that minimize taxes The MBA program is also available on UDM’s McNichols Campus. The risk of not having a plan is lit- and debt. One trick is to give the igation and lack of direction at the successor’s trust a gift of some per- company. Much of what goes into it centage of the business. Those is defensive, trying to ward off bat- shares earn profits and later can be tles before they arise, putting into used to buy more shares, eventually For information on UDM’s MBA, writing answers to all questions of giving control to the heir. Another is procedure and control. Teams of ac- to name the successor as the par- contact Omid Sabbaghi at [email protected] countants and lawyers are needed ent’s life insurance beneficiary. The for a full plan, as there are many payout is used to buy company methods for dealing with many shares when the time comes. considerations, from retirement Dearborn-based Educational pay for the departing generation to Data Systems Inc., which provides avoiding estate taxes. employment training for local gov- In some cases, no amount of ernment unemployment offices, We want great things for you. planning can avoid permanent rela- uses an installment agreement, tionship breaks, perhaps because whereby Kevin Schnieders, the sec- business.udmercy.edu one sibling feels jilted after another ond-generation CEO, pays into a ends up with control of the compa- trust until he has finished paying for ny. his purchase of EDSI. This prevent- “I have a handful of clients who ed EDSI or Kevin himself from tak- can’t see their grandkids because of ing on debt to fund the buyout. (See that scenario,” said Julius Giarmar- story, Page 14.) co, estates and trust attorney at Gia- Ⅲ Compensation agreements. rmarco, Mullins & Horton PC in Troy. Compensation agreements might But with the health of the com- be set up for key employees and de- pany at stake, drawn-out court dis- parting owners. In the EDSI exam- tractions and leadership vacuums ple, Robert Schnieders receives are not acceptable. The competi- monthly payments from the com- tion won’t wait for its rival to get its pany under a “non-qualified de- act together. ferred compensation” plan used to “It is estimated that more than 70 provide retirement income. An Want to become one of the percent of family-owned businesses added benefit to this arrangement do not survive the transition from is that Robert uses this income for founder to second generation,” Gia- his real estate investment business, healthiest workplaces in rmarco wrote in a report on succes- which in turn can be left as an in- sion strategies. heritance for Kevin’s two siblings, Michigan and improve your Because succession touches just who are not receiving the business. about every corner of the owner’s Ⅲ Life insurance. Life insurance is bottom line as well? life, a thorough succession plan is a handy tool for many succession not a single document stating that problems. Besides funding the John Smith Jr. will one day run the transfer, it also can be used to stifle Join us for breakfast company. It’s a collection of agree- sibling jealousies by naming the in- ments and strategies, Giarmarco active children as beneficiaries of said. These might include wills, the life insurance when the active at metro Detroit’s trusts, buy-sell agreements, children receive the business, mak- change-in-control agreements, ir- ing sure all of the children are treat- most unique hospital recoverable trusts, employment ed fairly, if not equally. Companies contracts and so on. also can use it to reimburse them- Components of the succession selves for the cost of retirement WED.| APRIL 22 plan might include: packages, by taking out policies on Ⅲ The buy-sell agreement. This key employees and departing own- Henry Ford West Bloomfield Hospital sets terms for the eventual transfer ers, as EDSI did with Robert of the business to the next genera- Schnieders. 7:30 - 9:30 a.m. tion, upon death, retirement or dis- Ⅲ Contingency plans. At James ability of the first generation. For Group International, James said his Hear from a panel of 2015 Healthiest Employers who are using wellness as a strategy the first generation, it “guarantees a mother would take control of the to drive workplace productivity, employee health and community well-being. Panelists market” for the sale of shares when estate if something happened to his will share their success strategies so your business (of any size) can create these such a sale is needed, Giarmarco father, and she would have the au- same programs and turn your employees into happier and healthier individuals – said. For the second, it promises thority to designate roles for the resulting in stronger bottom lines and increased productivity. HAP’s wellness experts that the handoff will occur. For the sons. “My mother is trustee of the business itself, it displays clear estate, and she would direct traffic,” will be on hand to share tips for your success. management continuity, which he said. boosts valuation and attracts bigger These plans can be for the suc- To register, visit crainsdetroit.com/events or call (313) 446-0300 customers. ceeding generation, too. EDSI is in a Ⅲ Strategies to avoid estate and trust until Kevin finishes paying for gift taxes. There are many ways to arrange the sale of the business in See Next Page 20150413-NEWS--0011,0012,0013-NAT-CCI-CD_-- 4/10/2015 11:29 AM Page 3

CRAIN’S DETROIT BUSINESS // April 13, 2015 13 SPECIAL REPORT: SECOND STAGE

From Previous Page For family-owned biz cession. The exercises lead to an inventory of what the business owns How to survive a traumatic event the company. If he should die or be- The Family Owned Business and how it owns it, and this is useful There’s succession planning, ready to go. Write down the steps for come unable to work, “key man” in- Institute at Grand Valley State for any business, family-owned or which handles all the big-picture redirecting emails and voicemails. surance is in place to pay the trust University will hold its annual not, said Mark Lundquist, head of questions of who will own and lead Have messages for employees, cus- the remaining amount he owes. summit May 21 at the L. William Bloomfield Hills-based consultancy a company someday. And then tomers and suppliers. Ⅲ Key employee enticements. The Seidman Center on the school’s Fulcrum Edge Inc. there’s “traumatic succession plan- Ⅲ Have all passwords and per- owner probably will have some non- Pew Campus in Grand Rapids. The process tidies up details about ning.” missions saved and assigned, from family employees who are integral to This year’s summit looks at how the business, easily overlooked mat- This is what Mark Lundquist, bank accounts to social media ac- the enterprise and carry a wealth of family-owned businesses can be ters such as what happens to a cer- head of Bloomfield Hills-based counts. Some companies have very institutional knowledge. These peo- more innovative. tain building in the event of the consultancy Fulcrum Edge Inc., specific processes to follow for tak- ple might see the succession as time owner’s death. Does it go to a trust? calls the planning for the immedi- ing over an account. They may re- Cost is $100 per person or $75 for for them to do new things. To con- The owner’s spouse? Kids? Does it ate aftermath of an owner’s death. quire a second signatory or authori- two or more people. vince them otherwise, incentives can stay with the subsidiary that has the No one wants to realize on the zation before the death. be put into place to get them to stick More information is at title? Who has shares in that sub- first payday afterward that only the Ⅲ Have a replacement process around and keep things running www.gvsu.edu/fobi. sidiary? Who will have actual control owner had authority to sign the ready. The board could be re- smoothly during the transition. A over the property? paychecks. Lundquist helps busi- quired to select a recruiting firm common one is the “golden hand- So it’s worth the time. Ideally, the nesses set up procedures to avoid within 30 days. This can apply to cuff,” which gives bonuses for staying some other arrangement. thinking about a plan should begin 10 these oversights in step-by-step key staff. on until retirement. Mantese said he had a recent years before it’s executed, and serious stages of 24 hours, seven days and Ⅲ Maintain a list of potential re- Ⅲ Establishment of boards. Ex- case where his client owned 50 per- work on it about five years before, 30 days after the unexpected death. placement candidates. If they’re perts recommend advisory boards cent of the company, “but there Horak said. In the case of EDSI, Kevin The steps give people enduring outside the family, it’s not neces- of mentors, consultants, trusted as- wasn’t a single scrap of paper as evi- Schnieders spent 13 years learning the trauma of the death easy ways sary to have conversations with sociates and family members to dence to that.” The person in con- the ropes and two years crafting the to keep operations running with- these candidates first, Lundquist help iron out details of the succes- trol tried to oust his client, and it succession plan with this father. out having to think about it. “Go to said. Just have more than one sion plan. Corporate boards, if they took 15 depositions from people Once a plan is done, it will con- one drawer, pull out that docu- name so if someone does turn it don’t already exist, are useful, too, who happened to overhear past tinually need adjusting. ment and everyone just follows it,” down, there are others to call. because they provide a chairman conversations to prove that his “Estate and business succes- Lundquist said. Ⅲ Put all this information in role for the founder to continue to client did in fact have that agree- sion planning is not an event. It’s Here are a few examples of one place, and make sure the peo- have a say, and can balance out sib- ment. They won the case — the de- a process. You’re never done with planning for traumatic events: ple who need to know where it is, lings’ roles. Lorron James is a board fendant settled for $1.85 million — it until you’re dead,” Giarmarco Ⅲ Have all the necessary email know where it is. member of James Group, while his but leaving a business’ fate at risk in said. Ⅲ messages and voicemail messages — Gary Anglebrandt brother John is not. And John is this way is not a best practice. president of the company, while Ⅲ Disclosure requirements. In sit- Lorron is vice president. uations where multiple siblings end Ⅲ Voting share conditions. Before up with shares of the company, but some siblings, perhaps younger only one has management control, ones, can get voting shares in the corporate bylaws or operating company, conditions can be put agreements should mandate some into place in the succession plan, financial reporting requirements, if such as requiring them to obtain a none don’t already exist. Sharehold- college degree or a certain level of ers might become suspicious of professional experience. how money is being handled at the Ⅲ Buy-sell agreements for the company when not provided regu- succeeding generation. Just be- lar accounting updates. cause the business is handed off to “That’s the pattern I see over and one sibling doesn’t mean life and all over,” Mantese said. “When there its problems come to an end. If are no written agreements provid- something should happen to the ing for regular disclosure of finan- new owner a year after the transfer, cial documents, those in control of or an active sibling decides to leave, the company feel like they can con- agreements can be ready to state trol if heavy-handedly.” where control of the business goes The timing from there. For example, the family might decide that the business Like any other high-level busi- should not go to the second-gener- ness effort, succession requires ation’s children if the owner dies or planning, and probably more of it decides to leave, but rather back to than owners think. But this is the first generation, a family trust or healthy for reasons beyond the suc-

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14 CRAIN’S DETROIT BUSINESS // April 13, 2015 SPECIAL REPORT: SECOND STAGE Dad,son move past arguments into a plan

By Gary Anglebrandt lot of success in not doing those for the handover. It mattered if cus- Special to Crain’s Detroit Business things. In 1982, it was, ‘Here’s your tomers and employees did. They Kevin Schnieders says he’s had assignment. Leave your troubles at knew things were on the right path only four arguments with his dad in the door,’ ” Kevin said. when people would call and ask for his whole life, and they all came They eventually broke their inter- Bob, and if Bob wasn’t around, while working for him. personal logjam by defining individ- they’d ask for Kevin. “That’s a good “He and I had four arguments in ual roles and sticking to them. sign,” Kevin said. 13 years working together. I formal- Robert, or Bob as everyone calls him, For the technical side of the busi- ly resigned in two, and he offered also exercised some acquiescence by ness succession, the Schnieders duo me a buyout in two,” Schnieders letting Kevin have his way on the HR gathered a team of accountants, said. policies over which they disagreed. bankers and lawyers — Bob insisted Schnieders is CEO of Dearborn- From then on, Kevin was in charge of Kevin have his own lawyer — and based Educational Data Systems human resources and operations. spent two years building a succes- Inc., a company started in 1979 by Bob stuck to sales and finance. sion plan, with a buy-sell agreement Kevin’s father, Robert Schnieders, “I feel blessed it only happened and establishment of a trust. that provides employment training four times in our relationship,” Kevin makes payments to the for local government unemploy- Kevin said. trust installments until he finishes ment offices. The 13 years were spent learning paying for the business. Bob re- In the years leading up to Kevin the business and rising up through ceives income payments, and he taking over the business, the subject it, part of the management side of reinvests some of that money into of heated debate between the two succession planning. Bob gave his things like his real estate investment was always the same: people. son test projects, or “intra-preneur- business, ES Investments LLC in They disagreed on hiring and fir- ial events” as he called them, send- Dearborn. Those assets can then be ing, vacation policies and other ing him to meetings with big cus- assigned to Kevin’s two other sib- workforce policies. Kevin liked new tomers and to other states to open lings, who were not part of the EDSI flexible scheduling ideas. His dad new offices on his own. buyout and are not active members did not. It never mattered whether father of the company. “In fairness to my dad, he had a and son thought the son was ready The installment plan warded off estate taxes and debt, both of which can negatively affect the business and stall any growth plans it might have had. Bob is chairman of the board and retains controlling stock that gives him authority over a sale of the company, were such a discussion to arise, until Kevin is finished making his buyout payments. It’s been almost eight years since Kevin succeeded his father. By that point, the staff knew him well, especially since he’d been in the HR role, so the transition wasn’t jarring for employees. “Employees would know him and respect him as the administra- tor who brought them into the company,” Bob said. EDSI has 500 employees in 40 offices in the country, compared with 200 employees when his father left. Bob said that to his surprise, he felt “separation anxiety” about leaving the company. “I thought it would be a walk in the park. My identity is not in my company, it’s in my family. Clean off my desk and walk away, no looking back,” Bob said. He said those four arguments that happened took place in the office, usually in a glass-walled con- YOU CAN TELL FROM OUR BUILDING ference room in full view of the rest WE MEAN BUSINESS. of the staff. “People were pretending like they were just walking by, but it was The GVSU Seidman College of Business full- or obvious what’s going on in there,” Bob said. part-time M.B.A. program will get you to the top. He and Kevin didn’t want that to West Michigan’s premier business school now has happen anywhere else, so they had a an equally premier building, enhancing downtown pact never to talk business at the din- Grand Rapids’ growing skyline and economic climate. ner table. “None of this stuff spilled over into the family,” Bob said. Bob’s wife, Elaine Schnieders, provided a measure of balance. “She cautioned me: Before I have another argument like that, to remember the most important relationship is Kevin,” Bob said. “Whether someone comes back to work or doesn’t come back to work, that’s a piece of dust on the table.” Ⅲ 20150413-NEWS--0015-NAT-CCI-CD_-- 4/10/2015 12:00 PM Page 1

CRAIN’S DETROIT BUSINESS // April 13, 2015 15 CRAIN'S LIST: LARGEST FAMILY-OWNED BUSINESSES " " Rank $! & %! "!#%! "%! Kelly Services Inc. $5,562.7 1946 Terence Adderley, chairman, son 93% 1 999 W. Big Beaver Road, Troy 48084 $5,413.1 William Russell Kelly (248) 362-4444; www.kellyservices.com Ilitch companies 3,300.0 1959 Christopher Ilitch, president and CEO, Ilitch Holdings Inc., son 100 2 2211 Woodward Ave., Detroit 48201 3,100.0 Michael and (313) 471-6600; www.ilitchcompanies.com Marian Ilitch Plastipak Holdings Inc. 2,405.8 1967 William C. Young, president and CEO, son 58 3 41605 Ann Arbor Road, Plymouth 48170 2,295.3 William P. and (734) 455-3600; www.plastipak.com Mary Young B Moroun family holdings 2,235.1 1937 Manuel Moroun, son, and Matthew Moroun, grandson, both hold several executive NA B 4 12225 Stephans Road, Warren 48089 1,890.0 T.J. Moroun positions with family holdings. (586) 939-7000; NA Soave Enterprises LLC 1,970.0 1961 Angelique Soave, vice president, daughter; Andrea Soave Provenzano, vice president, 100 5 3400 E. Lafayette Blvd., Detroit 48207 1,796.0 Anthony Soave daughter (313) 567-7000; www.soave.com Meridian Health Plan Inc. 1,945.0 1997 Jon Cotton, president, Meridian Health Plan of Michigan, son; Sean Cotton, chief 100 6 777 Woodward Ave., Suite 600, Detroit 48226 1,164.7 David Cotton administrative officer, son; Michael Cotton, COO, son (313) 324-3700; www.mhplan.com The Suburban Collection 1,914.5 1948 David Fischer, president and CEO, son; David Fischer Jr., vice president, grandson; 100 7 1795 Maplelawn Drive, Troy 48084 1,599.3 Richard Fischer Zachary Fischer, director, grandson (877) 471-7100; www.suburbancollection.com Sherwood Food Distributors LLC 1,740.8 1969 Howard Ishbia, executive vice president, sales and marketing, son; Jason Ishbia, 100 8 12499 Evergreen Road, Detroit 48228 1,539.9 Earl Ishbia and executive vice president, finance and CFO, son; Joel Ishbia, executive vice president, (313) 659-7300; www.sherwoodfoods.com Alex Karp inventory management, son; Gary Karp, executive vice president, corporate affairs and general counsel, son; David Ishbia, sales, son; Scott Ishbia, IT, son H.W. Kaufman Financial Group Inc./Burns & Wilcox 1,625.0 1969 Alan J. Kaufman, chairman, president and CEO, son; Daniel J. Kaufman, corporate vice 100 9 Ltd. 1,425.0 Herbert W. Kaufman president, grandson 30833 Northwestern Highway, Farmington Hills 48334 (248) 932-9000; www.kaufmanfinancialgroup.com Walbridge Aldinger Co. 1,550.0 1916 John Rakolta Jr., chairman and CEO, son NA C 10 777 Woodward Ave., Suite 300, Detroit 48226 1,307.0 John Rakolta (313) 963-8000; www.walbridge.com Barton Malow Co. 1,498.0 1924 Ben Maibach III, chairman and CEO, son; Doug Maibach, vice chairman, son; Ryan NA D 11 26500 American Drive, Southfield 48034 1,145.5 Ben Maibach Jr. Maibach, president, grandson (248) 436-5512; www.bartonmalow.com Wolverine Packing Co. 1,213.0 1937 Jim Bonahoom, president, son; Roger Bonahoom, vice president, son; Jay Bonahoom, 100 12 2535 Rivard, Detroit 48207 1,060.0 Alfred Bonahoom vice president grandson (313) 259-7500; www.wolverinepacking.com Kenwal Steel Corp. 899.2 1947 Kenneth Eisenberg, chairman and CEO, son; Stephen Eisenberg, president, Burns 100 13 8223 W. Warren Ave., Dearborn 48126 904.3 Sol Eisenberg Harbor, grandson (313) 739-1000; www.kenwal.com Barrick Enterprises Inc. 779.7 1977 Trish Barrick, retail supervisor, daughter; Greg Barrick, general manager, nephew 100 14 4338 Delemere Blvd, Royal Oak 48073 798.9 Robert Barrick (248) 549-3737; www.barrickent.com Orleans International Inc. 758.4 1937 Earl Tushman, president, grandson; Larry Tushman, vice president and secretary, 100 30600 Northwestern Highway, Suite 300, Farmington 631.0 Max Tushman grandson; Reed Tushman, director of operations, great grandson; Marc Tushman, 15 Hills 48334 director of logistics and operations, great grandson (248) 855-5556; www.orleansintl.com The Diez Group 720.0 1973 April Diez, vice chairman, daughter; Gerald Diez Jr., president, son; Sherry Diez, vice 100 16 8111 Tireman Ave., Dearborn 48126 730.0 Gerald Diez president, daughter; Mark Diez, vice president, son (313) 491-1200; www.thediezgroup.com Carhartt Inc. 664.0 1889 Mark Valade, chairman and CEO, great-grandson 100 17 5750 Mercury Drive, Dearborn 48126 600.0 Hamilton Carhartt (313) 271-8460; www.carhartt.com LaFontaine Automotive Group 663.3 1980 Ryan LaFontaine, dealer, son; Kelley LaFontaine, dealer, daughter; Michael T. 100 18 4000 W. Highland Road, Highland Township 48357 577.1 Michael T LaFontaine Sr LaFontaine Jr, dealer/LaFontaine global director, son (248) 887-4747; www.thefamilydeal.com PVS Chemicals Inc. 518.3 1945 James B. Nicholson, president and CEO, son; James M. Nicholson, vice president, 100 19 10900 Harper Ave., Detroit 48213 549.3 Floyd Nicholson grandson; David Nicholson, vice president, grandson; John Nicholson, vice president, (313) 921-1200; www.pvschemicals.com grandson; Timothy Nicholson, vice president, grandson RKA Petroleum Cos. Inc. 506.9 1954 Kay Albertie, managing shareholder and daughter; Kari Elliott, CEO and NA 20 28340 Wick Road, Romulus 48174 613.8 Hilmer Westphal Leemon granddaughter; Kyle Albertie, president and grandson (734) 946-2199; www.rkapetroleum.com General RV Center Inc. 453.0 1964 Robert Baidas, CEO and chairman, son; Loren Baidas, president and chairman, 100 21 25000 Assembly Drive, Wixom 48393 355.0 Abe Baidas grandson; Wade Stuff, vice president of operations, grandson-in-law (248) 349-0900; www.generalrv.com ABC Appliance Inc. 394.0 1963 Martin Hartunian, president and CEO, son; John Hartunian, vice president of 100 22 1 W. Silverdome Industrial Park, Pontiac 48343 395.0 Gordon Hartunian information systems, son (248) 335-4222; www.abcwarehouse.com Fisher & Co. Inc. 343.0 1965 Alfred J. Fisher III, CEO, son; Michael Fisher, president, son; Alfred Fisher IV, COO, 100 23 33300 Fisher Drive, St. Clair Shores 48082 260.0 Alfred J. Fisher Jr. grandson (586) 746-2000; www.fisherco.com Commercial Contracting Group Inc. 321.0 1946 William Pettibone, son NA 24 4260 N. Atlantic Blvd., Auburn Hills 48326 285.0 William Pettibone Sr. (248) 209-0500; www.cccnetwork.com United Shore Financial Services LLC 305.6 1986 Mat Ishbia, president and CEO, son 100 25 1414 E. Maple Road, Troy 48083 NA Jeffrey Ishbia (855) 888-8737; www.unitedshore.com

This list of family-owned businesses is an approximate compilation of the largest such businesses headquartered in Wayne, Oakland, Macomb, Washtenaw and Livingston counties. It is not a complete listing but the most comprehensive available. Crain's estimates are based on industry analyses and benchmarks, news reports and a wide range of other sources. Unless otherwise noted, information was provided by the companies. For some companies, the founders were later bought out by another family. Actual revenue figures may vary. NA = not available.

B Crain's estimate. C George B. Walbridge and Albert H. Aldinger founded the company in 1916. John Rakolta Sr. bought the company in 1963 with business partner Robert Robillard. D Founded in 1924 as C.O. Barton Co. by Carl Osborn Barton. The Maibach family acquired majority control in 1961.

LIST RESEARCHED BY SONYA D. HILL 20150413-NEWS--0016-NAT-CCI-CD_-- 4/10/2015 11:33 AM Page 1

16 CRAIN’S DETROIT BUSINESS // April 13, 2015

SPECIAL REPORT: SECOND STAGE How Duo-Gard was able to swallow a big-bite project

By Gary Anglebrandt Duo-Gard Industries wrapped up at the beginning of Special to Crain’s Detroit Business 2014. Everyone got paid. Duo-Gard Industries Inc. makes Location: Canton Township Risks and considerations: Duo- bus shelters, walls, canopies, cov- Description: Manufacturer of Gard spent $3 million on materials ered walkways and other architec- architectural products to get the job started. Having that tural products, putting special at- kind of money hanging in the air left tention into materials and working President: David Miller the company exposed. closely with suppliers. Employees: 80 There also were engineering con- The company has been in busi- Revenue: $14.7 million in 2014 siderations for a major job consist- ness since 1984, having started out ing of all custom work. The polycar- by developing a cellular polycarbonate had to be tinted to meet the bonate panel — with translucent COURTESY OF DUO-GARD] entity, Duo-Gard in practice treated it customer’s specifications. Some of cells that insulate well — which was Duo-Gard built this polycarbonate wall, illuminated with LED lights, for a parking like one by maintaining separate ac- the materials hadn’t been used by popular with owners of old factories deck for Chesapeake Energy. Duo-Gard set up a special unit for the build. count records that wouldn’t alter the Duo-Gard before. Redesigns and who wanted to let more natural financial picture of the company’s prototypes were done to make sure light into their shops. to that question,” he said. But he regular business. It kept the big num- things came out as needed. Problem: Consultants warn busi- knew it might have been the wise bers off the regular books, helping to Expert opinion: “This strategy was nesses not to bite off more than answer. ward off outsized decisions for the spot-on,” said Mark Lundquist, they can chew. It’s the “know when Solution: Many companies at this main business. president and CEO of second-stage to say no” axiom: It’s all right to turn point build or buy a new factory “It’s keeping yourself from fool- business consultancy Fulcrum Edge down work when taking it likely will and stuff it with equipment for one ing yourself,” Miller said. “Over the Inc., based in Bloomfield Hills. cause more harm than good. Taking lem, but it is when the company big project and hope more work course of two years, it’s easy to start Short-term leases are ideal for a new, big customer might cause doesn’t have the resources to do the comes along to soak up the added drinking the Kool-Aid.” this situation when they can be the business to overextend itself, go job. This project would span more capacity once the big project is over. Duo-Gard did have some leeway found, and the team’s separation too far into debt, accept bad terms, than two years and require 130,000 Miller instead set up a “M.A.S.H. in that it would receive payments from headquarters gives those em- overburden workers and damage square feet of curtain wall. unit,” a special team at a separate throughout the course of the job. It ployees a chance to develop their relations with longtime customers. Duo-Gard needed more space, location assigned solely to handle explained this to two key suppliers own culture and sense of ownership Duo-Gard wrestled with this de- people and equipment. All of that the Chesapeake job. In a span of and negotiated a delayed payment around the project. cision in 2011. Chesapeake Energy investment would hang in the air three weeks, Duo-Gard got a short- schedule to match their own pay- If work from the big customer Corp. in Oklahoma City wanted a while Duo-Gard waited for a payday term lease on a building in Livonia, ment schedule. This relieved some turns out to have a degree of per- big polycarbonate wall, illuminated that would take years to arrive. hired eight full-time production cash flow pressure; the company’s manence, the business always can with LEDs, for a new parking deck it The project engineers asked workers, and set up air compres- bank relieved it some more by ex- still look at building and owning an was building. It was a $7 million Duo-Gard President David Miller, sors, metal processing equipment tending Duo-Gard’s line of credit by expansion to its main facilities. project, larger than any it had done. “Can you do it?” and any other machinery needed. $1 million. “I’m a big believer in controlled That may not sound like a prob- “I’m rarely ever going to say ‘no’ While the unit was not a separate Production started in 2012 and expansion,” Lundquist said. Ⅲ

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CRAIN’S DETROIT BUSINESS // April 13, 2015 17 SPECIAL REPORT

MARY KRAMER Editor’s Notebook [email protected] WSU honors Ross; will he reciprocate?

This month, Grand ValleyState University will bestow a diploma on its 100,000th graduate in its 50-year history. The UniversityofMichigan and Michigan State University have more than 500,000 living alumni apiece; Wayne State University has 225,000. Universities work hard to stay connected to their alums — in part because a small number can become significant donors, offering a halo effect to students and other donors. Small wonder that WSU pulled out the stops to welcome real estate magnate Stephen Ross “home” last week for the first time since he graduated from WSU’s Law School 50 years ago. You can go home again, we thought, as Gov. Rick Snyder intro- duced Ross, like him, an alum of the Coopers & Lybrand accounting firm (now PWC). How lucky WSU would be if Ross decided to get engaged. After all, Ross has lavished time, attention and money — more than $300 million — on that other university down the road where he earned a bachelor’s degree in business administration. At one point, Ross’ cellphone went off on stage. His ring tone? The Universi- ty of Michigan fight song, “Hail to the Victors.” “Uh-oh, wrong school,” Ross quipped. “Every- body in New York knows I’m from Michigan.” [PHOTO COURTESY OF GRCC] But after UM, it was Wayne Students receive instruction in electronics during lab time at Grand Rapids Community College. State law, then a master’s of law in taxation from NewYorkUniversity School of Law and a real estate empire whose latest project, Hud- son Yards in Manhattan, is the largest private real estate develop- Downside to rising tide ment in U.S. history. Ross hasn’t lived in Detroit since 1968. But Snyder and Detroit Community colleges wrestle with impact of fewer students due to better job market Mayor Mike Duggan — who had lunch with Ross last week — would welcome him as an investor. By Rod Kackley dling this current cycle of falling enrollments Hoxie said more students are going part In his on-stage interview with Special to Crain’s Michigan Business in a variety of ways, Hansen said. Some are time now, which is also reducing enrollment Law School Dean Jocelyn Benson, ichigan’s community colleges are cutting budgets, and some are looking for rev- numbers because part-timers take fewer cred- Ross said he told Duggan: Start with confronting a cyclical conundrum enue enhancements. it hours. jobs. “Unless it’s a vacation environ- Mthey haven’t seen since the last eco- After years of swelling GRCC’s enrollment figures for the 2014-15 ment, you’re not going to grow nomic revival. enrollments, Grand Rapids academic year are not final but are estimated without jobs. You don’t start build- The better the recovery gets, the more likely Community College is being to be down 5 percent for the fall semester. ing until there are more jobs.” people are to find work and the less likely they hurt by all of the factors af- Howie said administrators expected the win- And Ross spoke in ways that are to sign up for classes at the two-year insti- fecting Michigan’s two-year ter semester to be down by a similar figure. made it easy to imagine him as a tutions. schools — including the College budgeting 101 force in Detroit — and at WSU. Mike Hansen, president of the Michigan strong area economy. “The way I look at real estate, it’s Community College Association, said enroll- “In Kent County, we To solve the budget problems, GRCC ad- what’s good for the city, what really ments are down 5 percent to 10 percent at had a 3.7 percent unem- ministrators have chosen a multitier ap- belongs there, not just maximizing community colleges across Michigan. Tina Hoxie: ployment rate for the proach. The first steps are a voluntary early dollars,” he said. “That’s why I think Enrollments have ridden the economic GRCC’s dean of month of November” separation plan and a tuition rate increase. we win about 90 percent of the tides for the past 30 to 40 years, Hansen said. community affairs. 2014, said Tina Hoxie, Faculty and staff members who leave GRCC projects in public/private partner- “When the economy starts to weaken and GRCC’s dean of student under the early separation plan will receive a ships. There’s responsibility that unemployment goes up, you will see more affairs. “In November the year before, it was payment that equals 40 percent of the most goes with a real estate developer. It’s and more people returning to community col- 5.4 percent. If students are working, then recent year of their annual salaries. your legacy, doing what has benefit lege to get retrained,” he said. their decisions around going to school can to the city.” Community colleges in Michigan are han- be affected.” See STUDENTS, Page 18 20150413-NEWS--0017,0018,0019-NAT-CCI-CD_-- 4/10/2015 11:39 AM Page 2

18 CRAIN’S DETROIT BUSINESS // April 13, 2015 SPECIAL REPORT: MICHIGAN BUSINESS

3 Prime Detroit Properties Available STUDENTS,from Page 17: Job market is enticing For Sale or Lease Leah Nixon, director of communications at GRCC, said 55 faculty and staff members accepted the RISE AND FALL package. Of those, 27 will leave in OF COMMUNITY COLLEGE ENROLLMENT 2015 and 28 in 2016. The early separation should Student enrollment among Michigan community colleges increased during save the college more than $2 mil- the Great Recession then tumbled as the economy began to improve and lion over the next three years and people were able to find work. an estimated more than $10 million over 10 years, said Lisa Freiburger, GRCC vice president of finance and administration. But that alone will not put the college back on an even financial keel. The GRCC board also approved a 1.9 percent tuition rate increase. As ) .

Clark Street Technology Park T S

a result, students who live in Kent E (EST.) ( Clark Street & Michigan Ave, Detroit, MI 48210 in Thousands 4 8 5 6 County will pay $108 per content 0 0 6 5 8 0 9 0 6 hour — $2 more — beginning in the 2 8 0 3 0 0 , 3 , , , 8 Featuring Three Properties: , , , 2

fall 2015 semester. Students in the 9 5 8 1 0 1 6 4 8 4 7 8 Property #1 county will face a much higher in- 5 Community College Enrollment College Community 462,858 4 449,084 4 471,826 4 485,005 4 448,3964 481,3604 200,000 SF Manufacturing facility with large office crease for the dental, culinary and 450,000 4 and engineering capabilities nursing programs. 2008 2009 2010 2011 2012 2013 2014 If all that fails, officials have a Source: Michigan Community College Association Property #2 $2.5 million budget-cutting and 25,000 SF Warehouse/office with fenced yard revenue enhancement plan ready Property #3 that includes staff and program re- ic Development Corp. 10 Acres, for sale or lease, will build to suit up to ductions ranging from eliminating GRCC administration is willing to approved a athletic programs to closing the give itself up to the cyclical tide of $50 million grant program that Sny- 100,000 SF swimming pool. Michigan’s economy. der began talking about in October For more information, contact: “We are really trying to be proac- Fiona Hert, dean of the School of 2014 to offer equipment and train- tive and not just get a handle on the Workforce Development — and one ing to community college students Dan McCleary Doug Fura budget one year at a time,” Freiburger of those taking the early separation through the Community College 248 351 4384 248 351 4397 said. “We are really trying to generate — said her staff is trying to increase Skilled Trades Equipment Program. [email protected] [email protected] recommendations that will put us on enrollment by asking West Michi- Chuck Hadden, president and a financially stable path for multiple gan employers what they need CEO of the Michigan Manufacturers years so that we are not looking at re- most. Association, said the program will 28400 Northwestern Hwy 248 353 0500 tel Fourth Floor 248 353 0501 fax ductions on an annual basis.” “They can’t find the right people provide the equipment necessary Southfield, MI 48034 naifarbman.com to hire and yet we have availability for students to learn the skills man- Providing proper programs in our training programs,” Hert said. ufacturers need. Still, that does not mean the “So we are asking them, ‘How can “Manufacturing has created we meet your needs?’ ” more than 114,500 jobs since 2009 Kevin Stott, president of Talent (in Michigan), 2025 in Grand Rapids, said commu- and employers nity colleges are “essential” to his are still search- organization’s work. Talent 2025, a ing to fill thou- coalition of 85 CEOs from the sands of avail- largest businesses in West Michi- able positions,” gan, works to develop, attract and Hadden said in a retain talent in the region. statement. “Community colleges can pro- At Grand vide a pathway for first-generation Chuck Hadden: Rapids Commu- college students,” Stott said. “They Manufacturers nity College, the are also excellent for students who Association School of Work- need more than a high school force Develop- diploma but less than a four-year ment offers classes at three sites in Reliable, modernized grid degree, to obtain a middle-skills job the city — and all stayed open that requires certification or a two- through the enrollment downturn. Energy is essential to the way we live, work and play. year degree.” Hert credited an active approach All four community colleges in of asking the business community West Michigan — GRCC, Muskegon what programs employers needed. ITC operates, builds and maintains the region’s Community College, West Shore “We have done some wonderful electric transmission infrastructure. We’re a Michigan- Community College near Ludington classroom management in terms of and Montcalm Community College the size and the number of pro- based company working hard to improve electric northeast of Grand Rapids — are grams we offer every semester,” reliability and increase electric transmission capacity represented on the leadership of Hert said. “We watch the enroll- Talent 2025. ment very carefully, and if we de- throughout the Midwest. Wendy Block, director of health cide that some of those sections policy and human resources at the won’t run, we will do that in cooper- Michigan Chamber of Commerce, ation with our faculty and make said community colleges are an im- sure students are not left without We’re ITC – your energy superhighway. portant component of workforce the classes they need to graduate.” development in Michigan. Seeking students “They offer a great return on investment,” Block said. “They are Other GRCC administrators are lower cost for students, offer quick- trying to boost enrollment rather er completion and a high rate of re- than waiting for the next recession. turn on job placement.” Hoxie said her staff tries to Gov. Rick Snyder’s budget sug- show prospective students the ad- www.itctransco.com gests he sees them as integral to de- vantages of going to community veloping a skilled workforce. In February, the Michigan Econom- See Next Page 20150413-NEWS--0017,0018,0019-NAT-CCI-CD_-- 4/10/2015 11:40 AM Page 3

CRAIN’S DETROIT BUSINESS // April 13, 2015 19 SPECIAL REPORT: MICHIGAN BUSINESS

From Previous Page tion rate for 2013 17 percent were still enrolled. The Take, for instance, Rick Snyder. — the most re- remaining 42 percent were no The governor has a two-year com- college, if only because of the cent cohort, longer enrolled in that college or in munity college degree along with price difference between a two- which is a specif- that program. three degrees from the University of year and four-year school. They ic group of stu- Hansen said the reasons they left Michigan. also invite high school seniors to dents estab- college are myriad. They may have Snyder was awarded his associ- the campus. lished for stopped out for a semester, found a ate of arts degree from Kellogg Com- GRCC uses personal phone calls tracking purpos- job, or maybe life just got in the way. munity College in Battle Creek last from counselors to students to try es and available Hansen knows that the gradua- Sept. 22, more than three decades to persuade them not to “stop out” Mike Hansen: from the Educa- tion rate seems shockingly low. But after he began taking community — meaning they will take classes for Graduation rates tion Data System by including part-time students college courses while still in high a semester, skip the next semester can be misleading. — found that 13 who take four to five years, the grad- school. and return the following semester. percent of first- uation rates increase to 20 percent “Taking community college Hoxie said GRCC also has used time, full-time, degree-seeking stu- to 45 percent. Add transfer students, classes while still in high school social media to stay in touch with dents graduated within 2½ years. and the graduation rate goes up to was a wonderful opportunity for students and get high school gradu- However, Hansen said, this co- 55 percent. me and my family,” Snyder said. [PHOTO COURTESY OF GRCC] ates to sign up. hort represents less than 30 percent Sometimes, those who attend “I’m proud to be awarded my as- Students in heating,ventilation and air Retention is a challenge. Part- of all students. In addition, of that community colleges in Michigan sociate degree from Kellogg Com- conditioning classes get training at time students or students who just cohort, 28 percent transferred and graduate later, rather than sooner. munity College.” Ⅲ Grand Rapids Community College. want to pick up a couple of courses typically will stop out, Hansen said, because most people don’t enter community college with an expec- tation of graduation. Behind the low grad rate The National Center for Education THIS AWARD Statistics’ Integrated Postsec- ondary Education Data System shows that the community college graduation rate in Michigan is 15 SHOWS YOU’RE OUR percent to 20 percent. Hansen said Michigan’s gradua- HIGHEST PRIORITY.

DTE Energy has just been ranked “Highest in Customer Satisfaction With Business Natural Gas Service in the Midwest” by J.D. Power, but really it’s you who comes out on top. Because to achieve this honor, our entire team has fundamentally improved the way we serve you. We’ve worked hard to provide important energy saving and safety information, restructure the business service center, and offer new online and mobile tools to make doing business easier. We’re proud of the teams that Nominations sought have made this award possible, but most of all, we’re proud of how we serve you. for 40 under 40 awards Since 1991, Crain’s Detroit Business has gathered 40 of the community’s high achievers for a special salute. Past winners have started companies, found success at a young age at established businesses and made nonprofits stronger. Crain’s is seeking nominations for the 2015 class of 40 under 40, which recognizes achievers across metro Detroit under age 40 based on factors such as financial impact and community leadership. Winners will be profiled in the Oct. 5 issue and honored at an awards event in November. With more than 680 alumni invited, the event brings together the current class with colleagues, clients, family and friends to celebrate. To be eligible, nominees must be age 39 or younger as of Oct. 5, 2015. Nominations must be received by April 27. Winners will be notified this summer. Nominations for the awards are submitted online and can be found at crainsdetroit.com/section/ nominate. For questions regarding the nominations: Contact Bill Shea at [email protected] or (313) 446-1626. DTE Energy received the highest numerical score in the Midwest in the proprietary J.D. Power 2015 Gas For technical questions Utility Business Customer Satisfaction StudySM. Study based on 9,243 online interviews ranking 20 regarding the nomination providers in the Midwest. Proprietary study results are based on experiences and perceptions of businesses surveyed April-July and August-December 2014. Your experiences may vary. Visit jdpower.com. form: Contact YahNica Crawford at [email protected] or (313) 446- 1641. 20150413-NEWS--0020,0021-NAT-CCI-CD_-- 4/10/2015 11:45 AM Page 1

20 CRAIN’S DETROIT BUSINESS // April 13, 2015

SPECIAL REPORT: MICHIGAN BUSINESS For grads,MSU turf program covers a lot of ground

By Seth Schwartz mology, chem- 5 p.m.,” said Chad Ball, superinten- Special to Crain’s Michigan Business istry and sci- dent of the course at Conway Farms Sitting on the couch following a ence-based Golf Club in Lake Forest, Ill., 40 min- break from work in June 1993, Rob classes helped a utes north of Chicago. “The chem- Davis turned on the television to try lot. istry and horticulture classes went to discover the attraction of soccer “But once I into horrific detail. — and found his chosen field. got a field of my “For the final exam, we had 25 The match between England and own, I had to sticks on a table. We had to identify Germany at the Pontiac Silverdome make my own each tree and its habitat.” was the first international soccer Trey Rogers: decisions.” About three-fourths of the stu- contest played indoors. Equally sig- Professor of turf dents in the sports turf major take More than nificant was the portable field of grass management the baseball route, while the re- just mowing Kentucky bluegrass, whose installa- at MSU. mainder concentrate on football tion was supervised by experts from Fielding calls fields. Michigan State University. weekly from a range of minor and Although Greg Elliott earned a The next day, Davis called up the major league baseball teams degree in elementary education school. Ending a career path as a around the country along with golf from Bowling Green State University landscaper, he enrolled for the managers, some of whom are over- in Ohio, he decided to go work with spring semester of 1994. [PHOTO COURTESY OF MSU] seas, Trey Rogers, a professor of turf his brother in the Arizona Fall “That game really opened my Heather Nabozny of Milford has been the DetroitTigers’ head groundskeeper since grass management in MSU’s de- League, an instructional league for eyes to their turf management pro- 1999. Her first job after graduating from MSU was head groundskeeper for the West partment of crop and soil sciences, Class AA and AAA baseball players. gram and is the reason I went Michigan Whitecaps. is a also matchmaker for students Following two years of maintain- there,” he said. seeking to fill job openings. ing the playing surface for the Tole- Today, on playing surfaces across Growing up in Milford in the West Michigan Whitecaps in the Those entering the two-year pro- do Mud Hens, the Tigers’ AAA affili- the country, graduates of MSU’s 1980s, Heather Nabozny assisted spring of 1994. They are the Tigers’ gram are required to have at least ate, Elliott realized his future was in Sports and Commercial Turf Man- with her father’s lawn care business Class A minor league affiliate in one season of work experience in taking care of baseball fields and agement program have been plant- throughout high school and college. suburban Grand Rapids. sports turf, golf or lawn care before headed to MSU. ing roots as leaders in the mainte- Following two years at Northern Since 1999, Nabozny has been applying. As a result, students have After graduating, Elliott spent a nance of fields for baseball and Michigan University, she attended a the Tigers’ head groundskeeper. a good idea of the direction they year in Iowa with the Class A Cedar football along with golf courses seminar where she found out about “Michigan State gave me the want to pursue and are eager to ab- Rapids Kernels and then four years around the world. the turf management program and foundation on which to build my sorb instruction in and out of the back with the Mud Hens. He even- And venues as close as Comerica transferred to East Lansing. experiences and turn them into classroom. tually became a four-time winner of Park, home of the Detroit Tigers After graduating, Nabozny be- knowledge and expertise,” she said. And there is much to absorb. since 2000. came head groundskeeper of the “The soil, plant and botany, ento- “You were in class from 8 a.m. to See Next Page

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CRAIN’S DETROIT BUSINESS // April 13, 2015 21 SPECIAL REPORT: MICHIGAN BUSINESS

From Previous Page

the South Atlantic League Groundskeeper of the Year award at Classic Park in Eastlake, Ohio, home Trust and Estate Experience of the Lake County Captains. In 2008, Elliott moved up to the ® major leagues and is now the head In Your Corner. groundskeeper for the San Francis- co Giants — who, since 2010, have won three World Series champi- ■ Over 30 years’ experience in helping onships. clients protect their families with effi cient, Working for Prime Cut Lawn Care understandable, and eff ective estate plans. during high school in the Thumb Area of Michigan, Tom Ellis thought ■ Expertise in estate and income tax he had the background taking care planning, assets protection, and business of the high school and hundreds of homes. Arriving at East Lansing, he succession planning. Jo found there was plenty to learn. In two years, “they really prepare you for the job market,” said Ellis, pr who is assistant groundskeeper for lea the Detroit Lions. en ca Turf roots run deep stu On major-league fields, minor ad- dir justments are an ongoing process. As are a result, MSU alums are often on the an phone troubleshooting. “There’s a great network to draw from,” said Ellis, a 2014 MSU graduate who also works part time on the grounds crew at Comerica Park. “If you have a question on something, you can call someone up and ask First Tier Ranking them what they’re using and what Trusts & Estates they did.” In the summer of 1994, Clark Cos. ■ Metro Detroit ■ Grand Rapids ■ Kalamazoo ■ Grand Haven ■ Lansing in Delhi, N.Y., was hired to install Contact Tom Bergh at [email protected] and maintain a natural-grass playing surface for the World Cup in Gi- ants Stadium. One year removed from his soccer game epiphany and working as an intern, Rob Davis LENDING | TREASURY MANAGEMENT | BANKING | BUSINESS SERVICES quickly found himself in the middle of preparations. Having worked with MSU in- stalling the field at the Silverdome, Clark contacted Rogers, stating, “We know how to put it in, but we don’t $7,057 added back to your know how to take care of it.” Davis’ first order was mowing a * straight line with an old rider bottom line…every year. mower. With 15 pairs of eyes staring a hole through him, he cut perfect lines onto the whole field, later voted the best among the nine Business solutions that help World Cup venues. “I got my Ph.D. in one summer with the whole world watching,” he you succeed. said. When the New York Giants moved into a new training facility in 2009, they hired Davis from Clark as Your hometown head groundskeeper. Today he pre- serves the team’s three full-size, natural-grass outdoor fields; one in- advantage. door artificial field; and one partial National outdoor artificial field to *Savings based upon deposit volume, mileage, employee time and cost. Your savings may vary. Football League standards. There are also landscaped areas that Davis maintains to present a campus- Being your trusted local banking partner means ﬁnding ways to add value to your business. It’s providing tools like our Business Express Deposit, which allows you to scan and deposit quality look. checks at your desk and on your schedule. So you can run your business instead of running “Michigan State gave me a solid to the bank. Trust us, that’s a big advantage for small business. foundation,” he said. “This is a com- plicated industry. There are always Contact Tom Snapke at (586) 447-4849 to learn more. areas that need tweaking and adjusting to keep the field healthy and www.thefsb.com/expressdeposit | 866-372-1275 playable. “That’s why it’s important to be able to talk to others, to bounce How much can you save? ideas off and see what they’re doing. Use our remote deposit calculator to get started. You have to understand environmental pressure and when the field isn’t feeling well.” Ⅲ 20150413-NEWS--0022-NAT-CCI-CD_-- 4/10/2015 11:46 AM Page 1

22 CRAIN’S DETROIT BUSINESS // April 13, 2015

RUSSIA

St.Petersburg Moscow Togliatti Autoliv’s office in Togliatti. Autoliv Based: Auburn Hills Operations: One office in St. ith a 2013 GDP of $2.113 trillion, Russia has experienced eco- Petersburg and one plant in nomic decline in recent years due mostly to its reliance on ex- Togliatti W ports. According to the CIA World Factbook, Russia was Employees: 200 deeply affected by the global economic crisis of 2008. Its economy aver- Products: Airbags, steering wheels, aged 7 percent growth throughout the 2000s, but in 2013 the Russian seatbelts and buckles, height Economic Development Ministry forecast growth would stagnate at Domino’s has 20 stores in and around Moscow. adjusters 2.5 percent through 2030. Growth prospects only have declined in the Top executive: Dmitry Yakubovsky, aftermath of Russia’s intervention in Ukraine. Top executive: Arthur Eritspokhov, Products: Complete seat systems general director Russia’s major exports include petroleum and petroleum products, who is general manager in Russia and wire harnesses Customers: AvtoVAZ, GM-AvtoVAZ, natural gas, chemicals, metals, wood, and civilian and military products. and the Commonwealth of Top executives: Gideon Jewel, Ford, Nissan, Renault, Mitsubishi, Its leading export partners are the Netherlands (14.6 percent), China Independent States seating executive for Europe; Volkswagen (6.8 percent), Germany (6.8 percent) and Italy (6.2 percent). Major im- Mariano de Torres, electrical ports include machinery, pharmaceutical products, vehicles, plastic, executive for Europe meat, fruit and nuts, iron and steel. Its leading import partners are Federal-Mogul Corp. Clients: Ford, Mitsubishi, Nissan, Chrysler Group LLC China (16.6 percent), Germany (12.2 percent), Ukraine (5.7 percent) and Based: Southfield Volkswagen Based: Auburn Hills Japan (5 percent). Operations: Headquarters and Operations: One national sales Each World Watch features a different country. If you know of a Michi- motor parts distribution center in MSX International gan company that exports, manufactures abroad or has facilities Moscow and manufacturing location in Moscow and a dealer Based: Detroit abroad, email Jennette Smith, managing editor, at [email protected]. facilities in Naberezhnye Chelny, network that includes 52 dealerships Operations: Office and training Togliatti and Dimitrovgrad for Chrysler/Jeep brands, 22 for Fiat center in Moscow Coming up Employees: 650 passenger cars 75 for Fiat Employees: 28 May: Japan Products: Pistons, rings, liners and professional cars and 12 for Alfa Services: Strategic consultancy, June: India bearings Romeo. market research, compliance Top executive: Employees: 140 Uwe Plaxin, audits, dealer training, warranty Products/Services: Fiat Chrysler Domino’s Pizza Inc. Dow Chemical Co. managing director cost management and technical Automobiles brand projects such as Based: Ann Arbor Based: Midland assistance services to vehicle Jeep Territory, a test drive and Operations: 20 stores in and around Operations: A representative office manufacturers and dealer networks brand-experience center, and an Moscow in Moscow, one manufacturing Kelly Services Top executives: Vitaly Alfa Romeo-branded restaurant Employees: 100 facility in Ramenskoye and one Based: Troy Roustanovitch, managing director; (Forte Bello). Products: Pizza, bread sides, joint venture for Dow Izolan in Operations: Three offices in Nikolay Pakhtunov, business Top executive: Giorgio Gorelli, CEO beverages Vladimir Moscow, three offices in St. development manager for Chrysler Rus Top executive: Aslan Saranga, Employees: 270 Petersburg and 14 other locations Clients: BMW, Ford, Kia, Mercedes- More information: Chrysler Rus is managing director of Turkven, Products: Styrene acrylic polymer throughout the country Benz, Nissan, PSA Peugeot Citroën, the importer of Jeep, Alfa Romeo, Domino’s master franchise dispersions for the Russian paint Employees: 450 Volvo Fiat, Fiat professional and Chrysler company and adhesives industry and Services: Staff leasing, temporary automobiles in Russia. polyurethane systems staffing, mass recruitment, search and selection, management TI Automotive selection, on-site management, Based: Auburn Hills recruitment process outsourcing, Operations: Manufacturing facilities outplacement and HR consulting in St. Petersburg and Togliatti Top executive: Ekaterina Employees: 250 Gorokhova, vice president and Products: Auto fluid systems general manager of Kelly Services Top executive: Alexander Kedrov, CIS, Russia and Poland general manager More information: Kelly Services has operated in Russia since 1993. Urban Science Based: Detroit Lear Corp. Operations: One office in Moscow Based: Southfield Employees: 6 Operations: Seat manufacturing Products: Business performance locations in Kaluga, Nizhny optimization solutions, including Novgorod and St. Petersburg and consulting and proprietary software wire harness manufacturing Top executive: Pablo Tellería, operation in Volokolamsk managing director Employees: 1,300 — Compiled by Natalie Broda Chrysler has a national sales location in Moscow. 20150413-NEWS--0023-NAT-CCI-CD_-- 4/10/2015 11:49 AM Page 1

CRAIN’S DETROIT BUSINESS // April 13, 2015 23

to produce and supply brand- SPOTLIGHT DEALS image components for Audi’s Ter- PEOPLE PAULA SILVER: minal-style dealerships in the U.S. VICE PRESIDENT, Website: imbranded.com. CORPORATE & DETAILS COMMUNICATIONS Submit news to EXPANSIONS ON THE MOVE DTE Energy [email protected] Christensen Law PLLC, Southfield, a Send news items and photos to [email protected] personal injury firm, has opened an Paula Silver has been named ACQUISITIONS & office at 3049 Miller Road, Ann Arbor. CONSTRUCTION Financial Group, Birmingham; vice president of corporate com- MERGERS Telephone: (734) 890-5200. Website: Mike Cook to vice president of and Deric Righter from CEO, munications at Detroit-based AIDS Partnership Michigan, De- davidchristensenlaw.com. business development, LaSalle Righter Advisory Services LLC, DTE Energy Co. troit, and HIV/AIDS Resource Group Inc., Canton Township, Bloomfield Hills. Silver, 54, will be responsible Center, Ypsilanti, announced the Taylor & Colt Barber Spa, Toronto, from president, Facility-Solu- for the strategic planning and nonprofit organizations have has opened a full-service men’s bar- tions, Ann Arbor. Also, Ken Perko HOSPITALITY oversight of DTE Energy com- merged. APM and HARC will con- ber spa franchise at 601 E. Liberty to vice president of estimating, Scott Bray to munications. tinue to use their names until a re- St., Ann Arbor. Telephone: (734) from vice president of estimat- associate di- She comes from Federal- branding process is completed. 929-2229. Website: taylorand ing, Brencal Contractors Inc., rector of sales, Mogul Corp., Websites: hivaidsresource.org, coltmi.com. Warren. The Inn at St. where she aidspartnership.org. John’s, Ply- was vice pres- MOVES Jeffrey Lar- mouth Town- ident of com- CONTRACTS Kastler Construction Inc. and its son to senior ship, from as- munications Bianchi Public Relations Inc., Troy, sister company Visionary Cabinetry health care sociate director and investor has been retained to handle North & Design have moved from 1206 N. planner, Ron- of sales, The relations, and American public relations activities Lafayette Ave., Royal Oak, to 425 celli Inc., Ster- Bray Henry, Auto- was director by Eisele Connectors Inc., Grand and 429 S. Main St., Clawson. Both ling Heights, graph Collection, Dearborn. of global Rapids, the North American sub- companies are owned by Rick from president, Silver communica- sidiary of Eisele Pneumatics GmbH Kastler. Websites: kastlerconstruc JALarson Con- tions in an & Co. KG, Waiblingen Germany, a tion.com, visionarycabinetry.com. sulting LLC, NONPROFITS earlier stint with the company. global supplier of all-metal Larson Lake Orion. Jean Nemenzik to clinical de- In between, she was vice presi- industrial connectors. Websites: NEW SERVICES partment director, Kadima, South- dent of communications and bianchipr.com, eisele- Matrix Human Services, Detroit, FINANCE field, from clinical director, Hope public relations for Quicken connectors.com. has been awarded $35 million over Brian Young to vice president, Network, Behavioral Health Ser- Loans/Rock Ventures. the next five years from the Health senior adviser and director of vices, Pontiac. Silver has a bachelor’s degree I.M. Branded, Rochester Hills, a & Human Services Administration business development, Schechter in communications and journal- dba for Automotive Media LLC , a for Children and Families, a division Wealth, Birmingham, from district Mary Treder Lang to vice presi- ism from Wayne State University. provider of brand-specific fixtures, of the Department of Health & director, Northwestern Mutual Fi- dent of development programs, She replaces Sandy Ennis, who furniture and large-format digital Human Services, to expand Early nancial Network, Troy. Also to vice Vista Maria, Dearborn Heights, has been named vice president, printing (wall art) for the automo- Head Start funding and services to president, senior adviser, were from consultant, Grosse Pointe diversity and inclusion. tive industry, has been selected by Detroit children under age 4. Web- Clune Walsh III from partner, Walsh Farms. Audi of America LLC, Herndon, Va., site: matrixhumanservices.org.

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24 CRAIN’S DETROIT BUSINESS // April 13, 2015 CALENDAR

WEDNESDAY gan Department of Talent and Eco- APRIL 15 Crain’s 2015 M&A Awards nomic Development; Alejandra Rules of the Game: 10 Strategies Join Crain’s Detroit Business, in Castillo, national director, Minority for Women in the Workplace. 11:30 partnership with the Association Business Development Agency; G. a.m.-1:30 p.m. Detroit Economic for Corporate Growth - Detroit Mustafa Mohatarem, chief econo- Club. Susan Packard, co-founder of Chapter, to meet the M&A mist, General Motors; and John Scripps Interactive Networks & TV. Awards winners and finalists and Rakolta Jr., chairman and CEO, The Townsend Hotel, Birmingham. hear the stories behind the top Walbridge Aldinger Co. Cindy $45 DEC members, $55 guests of transactions of 2014 from the Goodaker, executive editor, Crain’s DEC members, $75 nonmembers. dealmakers themselves. Detroit Business, will moderate. De- Ticket sales end at noon April 14. It takes place 5-9 p.m. May 12 troit Athletic Club, Detroit. $75 Contact: (313) 963-8547; email: at the Troy Marriott. Tickets are members, $100 nonmembers. Con- [email protected]; website: $100 in advance, or $95 for cur- tact: Barb Lange, (248) 792-2763, econclub.org. rent ACG members. Groups of 10 ext. 101; email: [email protected]; or more are $95 each. website: mhcc.org. UPCOMING EVENTS Preregistration closes May 11 Fourth Annual Entrepreneur – at 9 a.m. If available, walk-in reg- Global Cities Initiative: Building YOU. 8 a.m.-2 p.m. April 20. Asian istration will be $120 per person. and Sustaining a Globally Competi- American Pacific Chamber of Com- For information, contact tive Region. 8-11:30 a.m. April 22. merce. Walsh College, Michigan Kacey Anderson, (313)446-0300, Detroit Economic Club. Featuring Women’s Foundation, Inforum [email protected]. Sandy Baruah, president and CEO, Michigan and Fifth Third Bank col- Detroit Regional Chamber of Com- laborate on a day of education and merce; Mike Duggan, mayor of De- resources for woman entrepre- 11th Annual Economic Forum troit; Bruce Katz, vice president and GET IN ON THE CONVERSATION neurs. Walsh College, Troy. $45. Breakfast. 7:30-10 a.m. April 22. founding director, Metropolitan Amy covers the city of Detroit and entrepreneurship Contact: Erin Mclin, (248) 430-5855; Michigan Hispanic Chamber of Policy Program, the Brookings Insti- Keep up with Amy at crainsdetroit.com/blogs email: [email protected]; website: Commerce. Guests include Steve tution; Rodrick Miller, president and walshcollege.edu/eyouconference. Arwood, CEO and president, Michi- CEO, Detroit Economic Growth AMY HAIMERL TWEET @HAIMERLAD Corp.; and Nancy McLernon, president and CEO, Organization for In- ternational Investments. Westin Book Cadillac, Detroit. $45 DEC members, $55 guests of DEC members, $75 nonmembers. Ticket sales end at noon April 21. Contact: (313) 963-8547; email: info@econclub. org; website: econclub.org.

CEO Insights. 11:30 a.m.-1 p.m. April 22. Troy, Auburn Hills Cham- bers of Commerce. Richard DeVore, executive vice president and regional president for Detroit and Southeast Michigan, PNC Financial Services Group, is the speaker. Oak- land Center, Oakland University, Rochester Hills. $35 Troy Chamber members, $45 nonmembers. Con- tact: Rebecca Wiles, (248) 853-7862, email: rwiles@auburnhills chamber.com; website: auburnhillschamber.com.

Detroit Diversity Luncheon. 11:30 a.m.-1:30 p.m. April 22. Women of Financial Executives International. Speaker: Mary Liz Curtin, owner, Leon & Lulu, will speak on “Building a Brand With Personality - The Story of Leon & Lulu.” Forest Lake Country Club, 1401 Club Drive, Bloomfield Hills. $35 for nonmembers, free for FEI Detroit chapter members. Contact: Sharon Kimble, (734) 277-7519; email: feidetroit@ 123Net has a high-speed ﬁ ber optic network stretching 2,700 comcast.net; website: financial miles across Michigan, and we’re not stopping anytime soon. executives.org. We’re always ready to go the extra mile, ensuring Michigan businesses have access to reliable, high-capacity connectivity. 16th annual 8MBA Leadership Luncheon. 11 a.m.-2 p.m. April 24. Eight Mile Boulevard Association. Moderated by Charlie Langton of WWJ 950, featuring the “Big 4”: Detroit Mayor Mike Duggan, Wayne County Executive Warren Evans, Macomb County Executive Mark Hackel and Oakland County YOUR BACKBONE FOR BUSINESS Executive L. Brooks Patterson. $60 FIBER • COLOCATION • VOICE • WIRELESS 866.460.3503 123.NET in advance or $70 at the door, $500 for a table of 10. Contact: Jordan Twardy, (248) 398-3388; email: [email protected]; website: eightmile.org. 20150413-NEWS--0025-NAT-CCI-CD_-- 4/10/2015 5:25 PM Page 1

CRAIN’S DETROIT BUSINESS // April 13, 2015 25 Blue Cross seeks to spin off Medicaid HMO into for-profit LLC

By Jay Greene where it is licensed to do business: After the merger, which is ex- op joint venture state’s 83 counties are being rebid [email protected] Washtenaw, Livingston and Wayne. pected to close April 30, Complete relationships to begin in fiscal 2016, which starts Blue Cross Blue Shield of Michigan All of the state’s 13 Medicaid Health will change its name to Blue with other Blues Oct. 1. last week filed papers with the state HMOs have increased member- Cross Complete of Michigan LLC. Blue plans to split “The state is creating prosperity to spin off Blue Cross Complete, a ship in the past year as Michigan Cross will own 69 percent of Com- profits and regions” that will require Medicaid fast-growing Medicaid HMO, into a has added more than 600,000 peo- plete Health. share adminis- HMOs wishing to contract with the for-profit limited liability company ple through Healthy Michigan. As part of the transaction, Blue trative costs and state to serve multiple counties in a in a joint venture with Indepen- Nearly 20 percent of the state’s Cross and AmeriHealth will each services. region, Aoun said. dence Health Group, a Philadelphia- population is now covered by Med- contribute $16 million to Complete Aoun said For example, to serve Wayne based Blues plan. icaid. Health to repay a $30 million sur- Joe Aoun: Blue Blue Cross County in region 10, Aoun said a The transaction, which could Under the merger proposal, plus note Blue Cross Complete re- Cross Michigan will Michigan will Medicaid plan must also have the lead to nonprofit Blue Cross Com- Complete Health would be owned cently issued to Blue Care Network. benefit. benefit from infrastructure and provider net- plete paying state and federal equally by Blue Cross Michigan The surplus note, which was having Ameri- work to serve Oakland and Ma- taxes, is under review by Attorney and AmeriHealth Caritas, a national used to cover more than $22 mil- Health as a partner in Blue Cross comb counties. In region 9, plans General Bill Schuette’s office. for-profit Medicaid company co- lion in losses the past two years, is Complete. Blue Cross Michigan must serve Washtenaw, Livingston, Under the proposal, Blue Cross owned by the Michigan Blues and a subordinated security issued pri- has been in the Medicaid business Jackson, Monroe, Lenawee and Complete would merge into Com- Independence Health. marily by a mutual insurance com- since 2006, when it acquired M- Hillsdale counties. plete Health LLC, a new company “We believe this joint venture pany that pays interest at the end Caid from the University of Michigan. “This change is making a lot of formed last December by Blue best serves the interests of Michi- of a designated period. Blue Cross Complete is expected plans nervous and (is) why so Cross for the merger and the for- gan Medicaid beneficiaries, the Last week, Crain’s reported that to grow substantially this year. The many are talking” about a possible profit HMO conversion. state, and our business,” Stojic Blue Care transferred $49 million Blues plan to apply to the state in- merger or partner, Aoun said. In a statement to Crain’s, Blue said. “(It) will bring together one of in capital to Blue Cross Complete surance department for permis- After the merger, Blue Cross Cross spokesman Helen Stojic said the country’s leading Medicaid to cover the financial losses and sion to expand Medicaid services Complete will have a six-member the state’s largest health insurer is managed care companies and the satisfy the state’s reserve require- to enrollees in several Michigan board: Blue Cross CFO Mark preparing Blue Cross Complete for state’s leading health insurer.” ments. Blue Care is a Blue Cross counties. It currently is licensed in Bartlett; Lynda Rossi, Blue Cross’ growth under Healthy Michigan In 2011, Blue Cross paid subsidiary. Washtenaw, Livingston and Wayne. executive vice president of strategy, Medicaid expansion. $215 million for a minority interest Joe Aoun, a health care Michigan this spring will issue government and public affairs; Since 2012, Blue Cross Complete in AmeriHealth, which has 5 mil- attorney with Nuyen, Tomtishen and requests for proposals for Medic- two members from AmeriHealth has more than tripled in size to lion members in Medicaid, Aoun, P.C., in Ann Arbor, said Blue aid HMOs interested in contract- and two Blue Cross subscribers. Ⅲ more than 75,000 members in the Medicare and children’s health in- Cross needed to convert Complete ing for Medicaid managed care Jay Greene: (313) 446-0325 three Southeast Michigan counties surance programs in 15 states. into a for-profit company to devel- beneficiaries. The contracts in the Twitter: @jaybgreene JOB FRONT MARKET PLACE

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26 CRAIN’S DETROIT BUSINESS // April 13, 2015 Detroit to host FIRST Championship

By Kirk Pinho [email protected] Detroit will be one of two host cities for the FIRST Championship, the world’s largest student robotics Students work on their competition, for three years starting entry during a FIRST in 2018. Robotics competition. The robotics events, which will take place at Cobo Center and [ARGENIS APOLINARIO] Ford Field, could generate as much as $90 million in economic impact comparison), which are collabora- University’s FIRST Robotics Commu- over three years, according to a tions between schools and robotics nity Center, a first-of-its-kind facility news release from Gov. Rick Sny- experts to build robots, problem- which in September began housing der’s office. solve and gain career skills in sci- FIRST robotics teams on Kettering’s More than 400,000 K-12 students ence, technology, engineering and Flint campus, called the decision to participate in FIRST Robotics pro- math, according to the release. hold the event in Detroit a “great grams around the world, and more There are also 77 first-year “rook- recognition that Detroit is in a posi- than 17,000 are expected to partici- ie” programs in Michigan. tion to host an event this large.” pate in the FIRST Championship Houston will be the other host FIRST, which stands for “For In- later this month in St. Louis, Mo. city. The events will be held on se- spiration and Recognition of Sci- Michigan has 345 FIRST Robotics quential weekends. ence and Technology,” was founded programs (California has 238, by Bob Nichols, director of Kettering by inventor Dean Kamen in 1989. Ⅲ

DEALMAKER,from Page 3: 1,000 meetings a year

look for new transaction opportuni- the deals we closed. They do the What would you tell those young ties 100 percent of the time. heavy lifting to get deals done. But I women who are juniors or seniors in had over 1,000 meetings last year, business school, or working on their And then you got recruited to personally. master’s degrees? What I tell young Huron when it, too, got to a size women, and I get called a lot by where it needed someone bird-dog- What’s your upcoming schedule like? young women, is to be unapolo- THANK YOU, FANS! ging acquisitions full time. What Next week is our big industry confer- getic about being a mother. I was al- does that entail? This is a travel job. ence, ACG Intergrowth, in Orlando. ways unapologetic that I was two I’m gone most weeks for two to four I’m on two panels there. There will people’s moms, and that’s very im- days. I travel to conferences. I do be four of us there, and we all have a portant. And I’d tell young women city visits. I’ll go to Cleveland, say, full slate of meetings Tuesday and in the industry, hang in there, it gets and set up meetings with business Wednesday and a partial day Mon- easier. You can do it. advisers. Brokers, boutique invest- day. And we’re hosting a reception. ment bankers, attorneys, account- We’ll have more than 100 meetings. And what do you tell them about ants, wealth advisers, anyone who is The following week we have our what you like about the job. What’s a trusted adviser to business own- company’s annual meeting, so I’ll be fun? What’s energizing? I like that I’m ers. I’m looking under rocks. Our here. In May, I’ll be in Chicago, in meetings with different people main competitors out there are Toronto, New York and Atlanta, al- every day. Being in a people envi- talking to big investment bankers. though normally I spend more of my ronment is very energizing. Sitting We need to talk to others if we want time in smaller cities. at my computer all day is draining. to compete. I’m building relationships, and And looking for deals in what that’s fun. I’ve been doing business You mean there’s more to it than areas? We have four sectors of development for 15 years now, and just waiting for the phone to ring? focus. We have specialty manufac- you develop friendships. I look for- Would that it was so simple. I’ll try turing and within that is specialty ward to seeing these people when I to set up six or seven meetings one coatings. Another is business serv- go to their town. It’s fun to see how day, maybe a reception that night ices, where we have two platform an entrepreneur has built a success- and another six or seven meetings companies that are particularly ac- ful business, and it’s really fun to the next day. I’ll meet with business quisitive right now. And we like con- partner with them at Huron to help brokers who may only have one sumer products and services and them take it to a new level. This is a deal their entire career that is a fit health care. Within health care, we uniquely American business. for us. Companies of the size we’re like practice-management busi- looking for in our target areas. But nesses. We have two dental prac- What did you tell your kids when they you meet with them and let them tices. And we like dermatology and were young about your dedication to know who you are. You make sure behavioral health. the job? I have always told my kids the attorneys and the small-busi- that I haven’t met anyone success- ness brokers think of you when they I was recently at the 20th anniver- ful — and I meet a lot of people in have a coffee-roaster client that sary party for Amherst Partners, my job — who didn’t get there with- wants to sell. These people don’t which was in the ballroom at the out working very hard. So I was 2015–16 MEMBERSHIPS have sophisticated CRM systems, so Townsend Hotel in Birmingham. You gratified that each of my kids, inde- meeting with them is important. go to lawyer events, and you see a lot pendently, called to tell me how ARE ON SALE NOW of women. You go to banking events, happy they were that my hard What kind of deal flow does your and you see a lot of women. But you work, the work that they observed See you next season! business development team gener- go to a gathering of private equity through their lives, resulted in the ate? We generate 1,000 deals a year professionals and mostly what you recognition by M&A Magazine. to look at, and last year we did 22 see are men in black or navy blue They also told me how proud they deals. It’s hard to pin an exact num- suits. Why the ongoing lack of are of me, which is pretty darn ber on how many I was directly re- women in private equity in this day great. sponsible for. I come across possi- and age? I think it’s a lifestyle ble deals that other partners here choice. The travel in this business is You recently moved downtown? I have already heard of. Everyone hard. I do more of it now than when moved downtown in October. I was Pistons.com/premium here does deal sourcing. If I see I had young kids. I didn’t travel this born in Detroit. My dad was a min- something I like, I forward the infor- much when I had young kids. But it ister at St. John’s Episcopal Church on (248) 377-8477 mation on to people here, and they was still tough. We talk about this a Woodward. In my apartment in pick up the ball and run with it. I lot in the industry. We are about 10 Broderick Tower I can look out and know I originated more than half percent female now. see the steeple, so that’s cool. Ⅲ 20150413-NEWS--0027-NAT-CCI-CD_-- 4/10/2015 5:54 PM Page 1

CRAIN’S DETROIT BUSINESS // April 13, 2015 27 CIVIONICS,from Page 1: Startup gets regional lift ny’s next CEO, and it is in the first “At this point, U.S. Navy, Air Force, Nation- class of the 7Cs program launched al Science Foundation and by Troy-based Automation Alley in we’ll the Department of Home- December to help fledgling compa- aggressively land Security. nies in the advanced manufactur- By the end of 2013, ing space. start raising Lynch and Zimmerman The 7Cs program — the seven capital.” decided they didn’t want are concept, context, community, to continue as a two-per- clarity, customers, capital and com- Andy Zimmerman,Civionics son grant-seeking organi- mercialization — aims to land com- zation any longer and panies their first customers. office, speaking about how various would focus all their efforts on be- The nonprofit has signed up the state and regional groups work to- coming a company that made and chief innovation officers of more gether to commercialize promising sold things. than two dozen tier-one suppliers technology and intellectual proper- “Grants can be a trap. It can take in Michigan to review the 7Cs party. your eye off the ball from what’s ticipants when they are ready for “People have gotten a pretty best in the long term, because prime time. good sense of where we each add you’re so worried about the short Automation Alley invests $25,000 value and what holes there are to term. It’s encouraging to see Civion- in each firm in the form of debt that fill,” he said. ics breaking away from that cycle, can be converted to equity, through Gerry Roston is one of those fill- where you hop from idea to idea to funds allocated by the Michigan Eco- ing holes. He joined TechTown as an keep getting grants,” said Maynard. nomic Development Corp. executive in residence last August. At the time, Roston was still in- Companies are hooked up with The former CEO of InPore Technolo- volved in the First Customer Pro- mentors, obtain access to legal and gies in Lansing and past president gram and on behalf of Civionics, he financial consultants, and get help of the New Enterprise Forum in Ann said, he reached out to 100 potential from Troy-based Sandler Training on Arbor, Roston began working with energy customers without success. how to sell to customers and com- Civionics before he joined Tech- Through someone with the plete their first sales video. Town as part of the MEDC-funded Michigan Shifting Gears program, “Civionics was a natural for 7Cs,” First Customer Program of the Insti- which helps corporate profession- said Tom Kelly, Automation Alley’s tute for Research on Labor, Employ- als make career transitions, Roston director of entrepreneurship, who ment and the Economy at UM. and Civionics were invited last fall had coached Civionics’ founders He has continued to mentor to visit a Chrysler stamping plant in when he was with the Michigan Zimmerman and Lynch and help Warren. Serendipitously for Civion- Small Business Technology Develop- them find potential customers. It ics, though not for Chrysler, while ment Center before joining the isn’t official yet, but he says he will they were there, a gear broke in a big Alley. soon sign on as the company’s CEO, piece of equipment, resulting in a “Civionics is on the cusp of great while keeping his TechTown posi- line going down for two weeks while things, with everything that’s going tion. a new gear was ordered and built. on with the Inter- “In a year “It was a 40-year-old piece of ma- net of Things and “(Civionics’) from now, chinery that was no longer being big data,” he said, sensors monitor hopefully Civ- built, so it had to be custom made,” referring to the cur- ionics will have said Roston. “In the era of just-in- rent buzz term in the manufacturing grown to the time manufacturing, you can’t af- technology plant in real point where the ford to have a line down for two that refers to position of CEO weeks.” how sensors, time ... is a full-time It was a part, they told the plant smart de- which puts job,” he said. manager, that sensors could have “Building a World Class vices and the given warning about so another In search of a cloud will in- (it) right on gear could have been ordered be- market Sales Organiza on” tersect. the cusp of fore it was needed. Ɵ “Their Civionics co- “It was a small chip that broke off sensors what will be founder Lynch the gear,” said Zimmerman. “Our monitor the manu- a 20-year trend.” teaches such sensors would have detected that Learn how to align facturing plant en- classes as Dy- was going to happen before it did.” vironment in real Tom Kelly,Automation Alley namics of Roston said Civionics is making a your people, processes time. When you Structures, demonstration test kit for one of and sales culture think of where advanced manufac- Earthquake Engineering, Advanced Chrysler’s suppliers, McNaughton- turing is going, you’ll need to be Dynamics and Smart Structures McKay Electric Co. of Sterling Heights. able to sense what’s going on in real and Sensors, Electrical Circuits and It is scheduled to be delivered in time. The technology is just now Signal Processing. May and installed on a pilot basis in May 6th getting to the point where you can He and Zimmerman designed the stamping plant. put sensors all over the plant, which wireless sensors and first aimed at “It’s a small project. If it works out, 7:30-10:30 AM puts Civionics right on the cusp of the civil infrastructure market — it will get much bigger,” said Roston. what will be a 20-year trend,” he hoping, without much success, to The plan is, if the pilot project WesƟn Southﬁeld said. have their sensors placed on infra- proves the value proposition, Mc- Another of the 10 current 7Cs structure projects to monitor their Naughton-McKay will become the companies, Lighthouse Molding Inc. integrity. distributor of Civionics’ sensors and Join Dave MaƩson, CEO of Sandler Training and of Sterling Heights, is making the To their surprise, they didn’t get systems to Chrysler and other large Gerry Weinberg & Associates as they lead durable plastic housing Civionics much encouragement from the sec- manufacturers. top area sales execu ves in this will need for its sensors in the harsh tor. Zimmerman said he hopes to Ɵ environment of the stamping plant Then they tried the burgeoning have a first sale to an OEM in July. leadership summit that will work floor. energy market, thinking there “At that point, we’ll aggressively RevoluƟonize Your Sales OrganizaƟon! In addition to the recent fund- would be interest in wirelessly mon- start raising capital,” said Zimmer- ing it got from Automation Alley, itoring oil and gas wells, wind tur- man, who has had preliminary talks Civionics got $5,000 in January bines and pipelines for structural with area venture capitalists about SeaƟng is Limited | Reserve Your Spot Today when it won the elevator-pitch integrity, again without success. the company’s plans for future fund- contest at the 15th Annual Collab- “The value proposition didn’t ing needs. oration for Entrepreneurship come to fruition,” said Zimmer- “They just need to keep to their www.gerryweinberg.sandler.com event in Livonia. man. knitting,” said Kelly. “What I like or Call 248-353-4030 “We’re all still trying to figure this All the while, though, there were about them is they’ve finally figured out and find our places. It’s taken Small Business Innovative Research out what they want to do. They’re fo- time for us to figure out what roles grants to go after to keep the lights cusing on stamping plants. There’s a we all play, and we’re getting better on and fund further research, a total lot of pain there.” Ⅲ at it,” said Mark Maynard, market- of about $4.2 million, said Zimmer- Tom Henderson: (313) 446-0337 ing manager of UM’s tech transfer man, including SBIR grants for the Twitter: @TomHenderson2 20150413-NEWS--0028-NAT-CCI-CD_-- 4/10/2015 5:54 PM Page 1

28 CRAIN’S DETROIT BUSINESS // April 13, 2015 TIGERS, from Page 1: Merchandise for female fans

women’s apparel and merchandise merchandise makers such as Los ing product lines and price ranges. increase to the point that it nearly ri- Angeles-based nail polish brand OPI The four major U.S. pro sports vals the quantity intended for men. Products, Tokyo-based Sanrio Inc.’s leagues all generate billions of dol- “You want to make sure you ap- Hello Kitty brand, and Victoria’s Se- lars in revenue, mostly from broad- peal to (women). It’s definitely grown. cret’s “Pink” line. cast rights deals, but also enjoy mil- The retailers are changing to changes Other recently licensed brands lions from merchandising. in demands,” said Bob Thormeier, include Alex & Ani bracelets with “Sports continues to grow and general manager at the ballpark for team charms; Alex Woo necklaces continues to look at ways it can Buffalo, N.Y.-based Delaware North with team pendants; Bani Bands ad- leverage growth,” said Bob Williams, Sportservice, the Tigers’ longtime con- justable headbands; and Cirrus Fit- CEO of Evanston, Ill.-based Burns cessionaire for merchandise, food ness yoga mats and bags. Entertainment & Sports Marketing and beverage sales. In 2008, actress and sports fan Inc., which represents companies While sales data is proprietary, Alyssa Milano drew wide attention that want to hire athletes to endorse Thormeier said, retail sales to for her launch of the “Touch” appar- products. women are strong. el line of team-branded designer That means looking beyond The new line of 20 Dooney & clothing for women. The initial col- men. Bourke handbags has been a “phe- lection sold out in five weeks, “A lot of women still make the nomenal success” across baseball Bloomberg reported, and it now purchasing decisions in the family,” and for the Tigers specifically, he also includes NASCAR apparel. said Williams, who has brokered said. The bags range in price from Thormeier credits Touch with deals involving Detroit pro sports $78 to $480. sparking an increase in women’s ap- stars such as Calvin Johnson, Barry A third of all MLB-licensed apparel sales at ballparks and stores. Sanders, Isiah Thomas and Kirk parel purchased in the past year was “That got a lot of buzz and really Gibson. Trusted Summer Activities bought by females who are interest- grew,” he said. “It’s always been a demographic ed in Major League Baseball, the that has been targeted for market- The numbers commissioner’s office said. ing and growth. Football and base- “Someday down the road, it will All sports apparel generated ball are kicking it into high gear, and become 50-50 and may go beyond $30 billion in sales last year, and I think the other sports will follow.” that,” Thormeier said. about 30 percent of that was bought Women outnumber men in the by women, said Matt Powell, chief U.S., and economists say female Selling the D brand analyst for Charlotte, N.C.-based purchasing ranges from $5 trillion What is sold at Comerica Park is sporting goods consulting firm to $15 trillion annually, according to fueled by demographic demand, SportsOneSource LLC. a 2013 report from audience met- Thormeier said, but all products The percentage has been rising, rics firm The Nielsen Co. must be licensed by MLB. and will for some time, he said. Women will control two-thirds of “MLB has expanded the number “The sports industry in general the U.S. consumer wealth over the of licensees, which has helped. It’s has really come to focus on the fe- next decade, based on a Fleishman- opened up more channels and av- male customer in the past couple of Hillard Inc. analysis, Nielsen said. enues from providers we can pur- years,” Powell said. Building a base chase from,” Thormeier said. Manufacturers and retailers, Baseball has struck deals in the along with pro teams and colleges, The increase in women’s pur- past couple of years with female are seeking to capitalize by expand- chasing power has come as MLB has grown in both attendance and revenue. It reached the $9 billion mark last season for the first time. Baseball’s attendance has grown more than 57 percent over the past 30 years, to 73.7 million fans last Invest Wisely season for MLB’s 30 clubs. Women remain a distinct minor- Choose an Advisor Who Sees the Bigger Picture ity inside the ballparks: About 14.3 million women attended MLB WORLD CLASS MONEY MANAGERS | TRANSPARENT FEES INDEPENDENT ACTIVE TAX LOSS HARVESTING | ADVANCED TAX PLANNING games last season, according to a fall 2014 survey by market research Scarborough As an Independent Registered Investment Advisor, Schechter is freed from the constraints and economic pressure many advisors firm , MLB said. That’s about 20 percent of atten- face at large brokerage firms. We have no one telling us to “sell” a specific fund or proprietary product. Come discover the dance. Gender data on broadcast independent difference, where our clients get our best advice, solutions, and products no matter what.Trusted for 75 years. and digital audience isn’t available. Major League Baseball has had ongoing programs to build its female fan base since 1999 when then-Commissioner Bud Selig created the “Commissioner’s Initiative on Women and Baseball.” Among the efforts are a Mother’s Day initiative where players use pink bats, equipment and acces- sories. MLB also conducts the “Hon- orary Bat Girl” program in which breast cancer survivors serve as a bat girl for a day. Bernie Kent, JD, CPA, PFS | Jason Zimmerman, MBA, CLU, CAP | Marc Schechter, CLU | John Stein, MBA, CFA Baseball also tries to reach Brad Feldman, JD, CLU | Ilana Liss | Jeff Vieder | Aaron Hodari | Jordan Smith, JD, LLM | Paul Snider | Chris Hale women via family and home-ori- Kevin Beauchamp | Larry Leib, JD | Brian Young, JD, CLTC | Clune Walsh III ented marketing relationships: It announced a corporate sponsor- ship deal in March 2014 with New Jersey-based household products manufacturer Church & Dwight Cos. Inc. to make its Arm & Hammer and Contact a Schechter Expert to learn more about how an Independent advisor can make a difference: WWW.SCHECHTERWEALTH.COM OxiClean official MLB products. Bat- Call 1.866.731.9500 or email [email protected] BIRMINGHAM, MI | NEW YORK, NY tle Creek’s Kellogg Co. did a similar deal for cereals in 2013. Ⅲ Securities may be offered through NFP Advisor Services, LLC (NFPAS), Member FINRA/SIPC. Investment Advisory Services may be offered through NFPAS or Schechter Investment Advisors, LLC. Schechter Investment Advisors, LLC. is not affiliated with Bill Shea: (313) 446-1626 NFPAS. NFPAS does not provide legal or tax advice and is not a Certified Public Accounting firm. SIA is an SEC registered investment adviser; please consult the Firm’s Form ADV disclosure documents, available on the SEC’s Investment Adviser Public Disclosure website. Twitter: @Bill_Shea19 20150413-NEWS--0029-NAT-CCI-CD_-- 4/10/2015 5:55 PM Page 1

CRAIN’S DETROIT BUSINESS // April 13, 2015 29 LOCKBOX,from Page 1: Budget shortfalls threaten governor’s plan CRAIN’S DETROIT BUSINESS deal with the politics of Medicaid Healthy Michigan year. However, in 2017, annual sav- Healthy Michigan. It is changing www.crainsdetroit.com expansion; and two, how legislators ings start to drop significantly, An- lives and it is important to people. Editor-in-Chief Keith E.Crain Under the Patient Protection and Group Publisher Mary Kramer,(313) 446-0399 will find the dollars to fund Healthy gelotti said. We will make it work through the or [email protected] Michigan, especially since the state Affordable Care Act, states were “By 2019, the savings and the cost general fund,” Becker said. Associate Publisher Marla Wise,(313) 446-6032 is expected to face revenue short- allowed to expand their Medicaid are likely to be pretty close,” An- But House Minority Leader Rep. or [email protected] programs in 2014 to people under Executive Editor Cindy Goodaker,(313) 446-0460 falls the next two years. gelotti said. “Everybody knew that Tim Greimel, D-Auburn Hills, isn’t or [email protected] Nearly 20 percent of the state’s 138 percent of the federal poverty going in.” so sure Republicans in the House Managing Editor Jennette Smith,(313) 446-1622 population, or about 1.8 million level. Tim Becker, assistant director of and Senate have a desire to contin- or [email protected] Director, Digital Strategy Nancy Hanus,(313) 446-1621 people, are now covered by Medic- The federal government agreed to the Michigan Department of Com- ue Healthy Michigan. They can kill or [email protected] aid, a number already swelled by pay 100 percent of the costs for munity Health, which oversees the it by simply not providing the state Managing Editor/Custom and Special Projects 600,000 new enrollees under three years or through 2016. Then, state Medicaid program, said Sny- matching share in 2017, he said. Daniel Duggan,(313) 446-0414 or [email protected] Senior Editor/Design Bob Allen,(313) 446-0344 Healthy Michigan. starting in January 2017, Michigan is der has wanted the health savings “Why haven’t they contributed or [email protected] “We have hundreds of thousands required to fund about 5 percent of account for Healthy Michigan to be the savings to the fund for Healthy Senior Editor Gary Piatek,(313) 446-0357 of people receiving health care cov- costs, or about $150 million per year, funded with the state savings. Michigan?” Greimel said. “It does or [email protected] erage” through Healthy Michigan, “The health savings account did raise the question whether Republi- Web Editor Kristin Bull,(313) 446-1608 or [email protected] rising to 10 percent by 2021. Research and Data EditorSonya Hill,(313) 446-0402 said Jan Hudson, a health policy an- not survive the budget process,” cans aren’t sincere in wanting to So far, 603,000 Michiganders have or [email protected] alyst with the Michigan League for said Becker. “We would have liked continue Medicaid expansion after Web Producer Norman Witte III,(313) 446-6059, signed up for Healthy Michigan, far Public Policy in Lansing. “It is worth to see it there. This governor is 2017, or whether they have been fis- [email protected] exceeding the 450,000 state Editorial Support (313) 446-0419; finding a way to continue to do it.” about making sure we have long- cally irresponsible in not setting projections for the first two years. YahNica Crawford,(313) 446-0329 Because Healthy Michigan, or term funding mechanisms. He aside funds.” Newsroom (313) 446-0329,FAX (313) 446-1687 Public Act 107, covers expenses for But for the program to continue, the thought it was a good plan.” Greimel said he is concerned TIP LINE (313) 446-6766 people who had received services state Legislature must find at least But because of revenue shortfalls whether the Republican leadership REPORTERS $150 million in general funds for Jay Greene, senior reporter Covers health care,insurance,en- previously paid for by the state gen- this year, Becker said, Snyder isn’t will even allow a vote to continue ergy utilities and the environment.(313) 446-0325 or eral fund, the state is projected to fiscal 2017, which begins Oct. 1, 2016. recommending funding the healthy Healthy Michigan in 2017. [email protected] save $983 million from 2014 to 2023, savings sub-account. Healthy “The current Speaker of the Amy Haimerl, entrepreneurship editor Covers entrepreneurship and city of Detroit.(313) 446-0416 or according to a report by the Ann Michigan savings are being used to House (Kevin Cotter, R-Mount Ple- [email protected] Arbor-based Center for Healthcare share — on Healthy Michigan ex- plug budget holes, he said. sant) voted against it, and the ma- Chad Halcom Covers litigation and the defense industry. Research & Transformation (313) 446-6796 or [email protected] . ceeds state savings in any one year. However, Becker said, placing jority of Republicans in the House Tom Henderson Covers banking,finance,technology and Marianne Udow-Phillips, the Shirkey said he believes the Leg- savings from Healthy Michigan into and Senate voted against it (in biotechnology.(313) 446-0337 or [email protected] center’s director, said the lockbox islature should have funded the the fiscal 2017 budget will be “on 2013),” Greimel said. Kirk Pinho Covers real estate,higher education,Oakland and Macomb counties.(313) 446-0412 or [email protected] funding provision requirement lockbox to make Healthy Michigan our list of budget priorities.” A spokesman told Crain’s that Bill Shea, enterprise editor Covers media,advertising and mar- dropped out of the Healthy Michi- “last as long as possible and give it a On the other hand, while Sny- Cotter was unavailable. keting,the business of sports,and transportation. gan bill in 2013 because there fair chance.” der has unsuccessfully advocated Sen. Jim Marleau, R-Orion (313) 446-1626 or [email protected] Dustin Walsh Covers the business of law,auto suppliers,man- weren’t enough Republican votes. But Shirkey said he added the for state savings to be placed in Township, chair of the Senate ufacturing and steel.(313) 446-6042 or [email protected] As it was, Healthy Michigan was sunset provision to protect taxpay- the Healthy Michigan savings ac- Health Policy Committee, said it is Sherri Welch, senior reporter Covers nonprofits,services,retail narrowly approved in the Senate by ers if general fund spending exceed- count, he continues to fund the too early to know whether Repub- and hospitality.(313) 446-1694 or [email protected] a 20-18 vote. It was signed into law ed state savings and the “experi- budget stabilization fund, or so- licans will approve funds to con- ADVERTISING Sales Inquiries (313) 446-6032; FAX (313) 393-0997 by Snyder in September 2013 and ment is deemed a failure.” called “rainy day fund.” tinue Healthy Michigan in 2017. Sales Manager Tammy Rokowski went into effect April 1, 2014. Angelotti said, “We know at some For fiscal 2016, Snyder is recom- Marleau, who was one of eight Senior Account Executive Matthew J.Langan “The state can drop out of point the general fund costs will ex- mending $95 million to be placed in Senate Republicans to vote for Advertising Sales Christine Galasso,Catherine Grace,Joe Healthy Michigan (as early as 2017) ceed the savings, probably in 2019 or the rainy day fund. Last year, he Healthy Michigan, said he support- Miller,Sarah Stachowicz Classified Sales Manager Angela Schutte,(313) 446-6051 if the savings don’t materialize as 2020. At that point, the statute reads placed $112 million in the rainy day ed placing its savings the past two Classified Sales Lynn Calcaterra,(313) 446-6086 expected,” Udow-Phillips said. the program would terminate.” fund, said the Senate Fiscal Agency. years in the so-called lockbox. Audience Development Director Eric Cedo Steve Angelotti, associate direc- In 2017, the general fund cost to The fund now includes nearly “I believe our population will be Events Manager Kacey Anderson tor of the Senate Fiscal Agency, said pay for the required 5 percent $500 million, which is about more healthy because of Healthy Creative Services Director Pierrette Dagg there is a sunset provision in the matching share is estimated at halfway toward Snyder’s self-pro- Michigan. Obviously there is a need Senior Art Director Sylvia Kolaski Marketing Coordinator Ariel Black Healthy Michigan bill inserted by about $150 million, rising to $200 fessed goal of having $1.5 billion there with more than 600,000 sign- Special Projects Coordinator Keenan Covington then-Rep. Mike Shirkey, R-Clark million in 2018 when the state fund- in the account by the time he ing up,” Marleau said. Sales Support Suzanne Janik,YahNica Crawford Lake. ing match increases, Angelotti said. leaves office in 2018. Last year, “We have a lot of balls in the air. Editorial Assistant Nancy Powers The provision by Shirkey, who During the first three years Snyder drew down the fund by At least the funding issue in 2017 Production Manager Wendy Kobylarz Production Supervisor Andrew Spanos now is a state senator, would allow through 2016, state savings from $195 million to contribute to the won’t be a surprise,” he said. “We all the program to terminate in 2017 if Healthy Michigan were expected to “grand bargain” that helped settle know what’s at stake.” Ⅲ CUSTOMER SERVICE Main Number: Call (877) 824-9374 state general fund spending — the 5 total more than $780 million, aver- Detroit’s bankruptcy case. Jay Greene: (313) 446-0325 or [email protected] Twitter: @jaybgreene percent to 10 percent matching aging more than $260 million per “We have had great success with Subscriptions $59 one year,$98 two years.Out of state,$79 one year,$138 for two years.Outside U.S.A.,add $48 per year to out-of-state rate for surface mail.Call (313) 446-0450 or (877) 824-9374. Single Copies (877) 824-9374 INDEX TO COMPANIES Reprints (212) 210-0750; or Alicia Samuel at [email protected] To find a date a story was published (313) 446-0406 These companies have significant mention in Hudson Webber Foundation ...... 3 !30!24.%23 9/5'%44/&/#53/. or e-mail [email protected] this week’s Crain’s Detroit Business: Huron Capital Partners ...... 3 Crain’s Detroit Business is published by Crain Communications Inc. Arborland Center ...... 6 James Group International ...... 12 "5),$).'9/52"53).%33 Chairman Keith E.Crain Autoliv ...... 22 President Rance Crain Kelly Services...... 22 Treasurer Automation Alley ...... 27 7(),%7%&/#53/.&).!.#).')4 Mary Kay Crain Lear ...... 22 Executive Vice President/Operations Blue Cross Blue Shield of Michigan ...... 25 William A.Morrow Lormax Stern Development ...... 7 Executive Vice President/Director of Strategic Operations Blue Cross Complete ...... 25 Mantese Honigman & Williamson...... 11 Chris Crain CC Consulting ...... 7 Executive Vice President/Director of Corporate Operations Michigan Association of Health Plans ...... 1 KC Crain Center for Healthcare Research & Trans... 29 Michigan Chamber of Commerce...... 18 Vice President/Production & Manufacturing Chrysler Group ...... 22 Dave Kamis Michigan Community College Association .. 17 Chief Financial Officer Thomas Stevens Civionics ...... 1 Chief Information Office Anthony DiPonio Michigan Dept. of Community Health...... 29 Detroit Athletic Club ...... 4 G.D. Crain Jr. Founder (1885-1973) Michigan League for Public Policy ...... 29 Mrs. G.D. Crain Jr. Chairman (1911-1996) Detroit Tigers ...... 1 Michigan Manufacturers Association ...... 18 Editorial & Business Offices Domino’s Pizza ...... 22 1155 Gratiot Ave.,Detroit MI 48207-2732; Michigan State University ...... 20 (313) 446-6000 Dow Chemical ...... 22 Cable address: TWX 248-221-5122 AUTNEW DET MSX International ...... 22 Duo-Gard Industries ...... 16 CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is published Talent 2025 ...... 18 weekly,except for a special issue the third week of October, Educational Data Systems ...... 12, 14 and no issue the fourth week of December by Crain Commu- TechTown ...... 1 nications Inc.at 1155 Gratiot Ave.,Detroit MI 48207-2732.Peri- Federal-Mogul ...... Increase your cash flow and pursue 22 odicals postage paid at Detroit,MI and additional mailing of- TI Automotive ...... 22 bigger opportunities with our customized, Fulcrum Edge ...... 13 fices.POSTMASTER: Send address changes to CRAIN’S DETROIT BUSINESS,Circulation Department,P.O.Box 07925, University of Michigan ...... 1, 6 flexible lending solutions. Giarmarco Mullins & Horton ...... 12 Detroit,MI 48207-9732.GST # 136760444.Printed in U.S.A. Grand Rapids Community College ...... 17 Urban Science ...... 22 s!2&INANCING (248) 658-1100 Entire contents copyright 2015 by Crain Communications Inc. s,INESOF#REDIT www.hitachibusinessfinance.com All rights reserved.Reproduction or use of editorial content in Grand Valley State University ...... 11 Wayne State University ...... 17 any manner without permission is strictly prohibited. 20150413-NEWS--0030-NAT-CCI-CD_-- 4/10/2015 5:27 PM Page 1

30 CRAIN’S DETROIT BUSINESS // April 13, 2015 WEEKON THE WEB/APRIL 4-10 RUMBLINGS

tion TV will make its new head- [COSTAR GROUP INC.] Chassix gains bankruptcy court quarters in the former Kresge This 183,000-square- building in downtown Detroit, foot industrial building approval for $250M in financing Bedrock Real Estate Services LLC on Plymouth Road announced. east of Evergreen was hassix Holdings Inc. re- The Detroit Lions confirmed purchased by an ceived bankruptcy that it and Detroit ABC affiliate entity with ties to court approval to access WXYZ-Channel 7 jointly exercised Jimmy Lai. C $250 million in debtor- an opt-out clause after three sea- in-possession financing. The sons on what had been a four- Southfield-based automotive sup- year local deal to televise presea- plier, owned by Tom Gores’ Plat- son games. Meanwhile, the Lions Hong Kong tycoon tied inum Equity LLC, filed for Chapter hired Jacksonville, Fla., sports 11 bankruptcy protection in U.S. merchandise giant Fanatics Inc. in Bankruptcy Court for the Southern a five-year deal to handle online District of New York on March 12. retailing. Fanatics Inc. takes over to Detroit land purchase online sales from Indianapolis- ON THE MOVE based MainGate Inc., which will immy Lai, whom The New spokesman for Moroun. continue to operate brick-and York Times has described as The two political foes battled in Brian Stewart, chairman and mortar sales. “Hong Kong’s most fiercely 2012 over Proposal 6, which would CEO of Farmington Hills-based Ann Arbor-based RetroSense J anti-Communist tycoon,” have required a statewide referen- Daifuku North America Holding Co. Therapeutics LLC was named one appears to be linked to the pur- dum on any new international ve- since 2013, will step down later of three finalists for the top award chase of a significant chunk of hicle crossings in Michigan. Propos- this month, the company con- at this week’s convention of the property at the Wayne County tax al 6, which voters shot down 59-41 firmed. Aki Nishimura, 52, will as- Angel Capital Association in San foreclosure auction. percent, was specifically aimed at sume all of Stewart’s duties April Diego. RetroSense is developing a In September 2013, Loveland halting the New International Trade 24. Stewart, 59, was previously lead product using gene therapy Technologies, which tracks Wayne Crossing, which will be a competitor president and co-CEO since 2009 to restore some vision in patients County property ownership and tax to the Ambassador Bridge, which is at the company, previously Dai- suffering blindness due to retinitis auctions, reported that buyer owned by Manuel “Matty”Moroun, fuku Webb and holder of various pigmentosa or advanced dry age- “7901” purchased 31 properties, Matt Moroun’s father. U.S. subsidiaries of Osaka, Japan- related macular degeneration. mostly in North Corktown. The “It was really fun to enjoy the based Daifuku Co.Ltd. — including Connected device software total price was $643,000 for a grab Tigers’ opening day win,” Moroun, conveyor and baggage system company UIEvolution Inc. of Kirk- bag of single-family homes and va- vice chairman of Warren-based Cen- manufacturer Jervis B.Webb Co. in land, Wash., opened its first cant lots as well as industrial and Tra Inc., said in a statement Blash- Farmington Hills. [SHINOLA/DETROIT LLC] Michigan office, in Ann Arbor. retail space. field emailed to Crain’s. “It is always Maggie DeSantis, founding Shinola/Detroit LLC’s brand Farmington Hills-based MLive.com reported at the time good to step outside the office CEO of the Eastside Community campaign takes a shot at the Apple Community Choice Credit Union that the winning bidder, 7901, was briefly and cheer together at the Network (formerly the smartwatch. closed on its merger with Wyan- Joseph Cella. Cella told MLive that ballpark.” Warren/Conner Development dotte-based NuPath Community he represented “a Canadian-based David Murray, a spokesman for Coalition), plans to leave the non- of the Office ofthe State Employer. Credit Union. The two will operate private investment and develop- Snyder, said Snyder “met briefly profit early next year. DeSantis, 64, Waalkes, OSE employee health under Community Choice’s name. ment group, which is purchasing with many, many people” on Open- said she plans to continue work- management director, replaces Nuspire Networks, Com- property across the city of Detroit.” ing Day. ing in Detroit in the community Jan Winters, named state person- merce Township, acquired Securi- That group appears to be headed development arena. nel director in March. ty Confidence, a Cincinnati-based by Lai. Did Warren mayor speak too Kim Schatzel, provost and ex- IT security and disaster recovery It all connects through an entity soon about tech center? ecutive vice president of academ- COMPANY NEWS service company. registered in September called ic and student affairs at Eastern A Nordstrom Rack will open 1898312 Ontario Inc. that lists several Warren Mayor Jim Fouts may Michigan University, was named Detroit watchmaker at Novi’s West Oaks in fall 2016. executives of Lai-owned companies have spoken too soon at his state of the school’s interim president. She Shinola/Detroit LLC launched a na- Canada’s government is sell- as administrators. They include the city address last week, when he will replace Susan Martin, who will tional brand campaign with print ing its final stake in General Motors publishing company Next Media outlined a potential General Motors step down in July for a one-year and digital advertisements in the Co., worth about $2.7 billion. Ltd. and Village Hotels, an Ontario- Co. investment in its tech center of sabbatical and then return to the New York Times and Wall Street based company that bought 7 acres nearly $1 billion faculty. Journal. The ads feature the watch OTHER NEWS of waterfront property on Detroit’s that would cre- Neapco Holdings LLC an- company’s workhorse Runwell far east side last year with plans to ate 3,000 jobs or nounced Ken Hopkins as its new model, touting it as “a watch so The inaugural meeting be- develop it as the first residential more. president and CEO. Hopkins, 48, smart that it can tell you the time tween metro Detroit’s semipro top property in its portfolio. “Close to $1 replaces Robert Hawkey, who re- just by looking at it” — a riff on the soccer clubs will occur in the sport’s 1898312 Ontario owns at least billion invest- tired from the Belleville-based dri- recent introduction of Apple’s so- most prestigious American tourna- two properties in Detroit, according ment is some- veshaft supplier in November. called “smart” digital watch. The ment, the Lamar Hunt U.S. Open to CoStar Group Inc. Those two thing any mayor Hopkins has been COO for JTEKT campaign was created by New York Cup. The Michigan Bucks will host properties — a retail space on of any large city North America Inc. in Plymouth City-based studio Partners & Spade. Detroit CityFC in the first round Woodward Avenue and industrial Jim Fouts: Ahead would wel- Township. A Wayne County judge will May 13 at the Bucks’ field, Ultimate space on Plymouth Road — were of the game? come,” Fouts The Crohn’s & Colitis Founda- hear Compuware Corp.’s request Soccer Arenas in Pontiac. part of Cella’s 31-property buying said in an inter- tion ofAmerica,Michigan Chapter May 11 to vacate an arbitrator’s The Los Angeles-based pro- spree. view with Crain’s. “It’s big. Equal to named Melissa Greer as executive $16.5 million award to former duction company for “Game of the biggest fireworks shot off on the director. Greer, 36, was temporary Chairman-CEO Peter Karmanos Thrones” actor Jason Momoa is Opening Day celebration Fourth of July.” special events manager for the after the Detroit company termi- listed on the warranty deed for the attracts Snyder,Moroun GM confirmed it’s seeking tax Farmington Hills-based chapter, nated a consultant contract with newly purchased former Planet abatements from the city on a proj- concurrent with serving as pro- him. Compuware attorneys con- Rock building in Pontiac. Gov. Rick Snyder and Matt Moroun ect, but communications manager gram manager of Child’s Hope in tended in court pleadings that Rezoning property for a new rarely get a chance to glad-hand. Dan Flores said the automaker isn’t Dearborn. She succeeds Anthonie part of the award appears to in- Detroit Red Wings hockey arena and But the two did on Opening Day, quite ready to sign on the dotted Burke, who left in September to clude treble damages and attor- entertainment district just north of and perhaps exchanged some line. take a sales position at Ascion LLC ney fees over and above the loss of downtown remains on hold after small talk about “The deal is not done, but it’s a in Bloomfield Hills. canceled stock options. the Detroit CityCouncil postponed the Detroit project we are looking at,” Flores Pat McPharlin was named di- Troy-based Inteva Products its vote on the plan, AP reported. Tigers’ 4-0 victo- said. “We have the mayor making rector of the Michigan Department LLC acquired a majority owner- Council members said they needed ry over the Min- these proclamations about a project ofInsurance and Financial Services, ship in its Korean DoorSystems more time to review the wording. nesota Twins. that’s not approved yet. We filed for replacing Ann Flood, who is return- joint venture. Inteva boosted its The Regional Transit Authority “They are not a tax abatement in the city of War- ing to the private sector. McPhar- ownership stake from 50 percent of Southeast Michigan wants to often in the ren, and if that’s approved it will be lin was CEO of Michigan State Uni- to 53 percent through the transac- start a low-cost bus route between same room to- part of the business case for ap- versityFederal Credit Union until he tion with South Korea-based con- downtown Detroit and the Detroit gether,” said proval, which has not happened. retired last month. Meanwhile, glomerate SL Corp. Metropolitan Wayne CountyAirport Matt Moroun: A Mickey The mayor is getting ahead of him- Marie Waalkes was named director Birmingham-based Gas Sta- in Romulus, AP reported. day to network. Blashfield, a self.” DBpageAD_DBpageAD.qxd 4/2/2015 2:37 PM Page 1 DBpageAD_DBpageAD.qxd 4/2/2015 2:47 PM Page 1

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