Suppliers Look to Fuel Future

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www.crainsdetroit.com Vol. 29, No. 2 JANUARY 14 – 20, 2013 $2 a copy; $59 a year

Page 3 Huron Capital’s largest fund Suppliers closes $100M above goal CEO works Can you make the call? Stadiums bolster wireless look to for quality, CRAIN’S MICHIGAN BUSINESS fuel future community GR west side developers Schlichting’s drive brings health pursue Gateway to progress, Mileage-boosting tech system award, merger plans Page 10 on display at NAIAS BY JAY GREENE Health Care CRAIN’S DETROIT BUSINESS BY DUSTIN WALSH You could say Nancy Schlichting’s journey CRAIN’S DETROIT BUSINESS the past nine years as CEO of Henry Ford Health System — and selection as Crain’s 2012 Cars will do what cars do at the Newsmaker of the Year — were all about her North American International Auto ability to inspire and drive quality and per- Show — draw crowds and cameras. formance improvement. But at several exhibits, rapid That culminated last year with the an- advancements in new fuel-saving nouncement that the products will have supplier execu- system had won the Mal- tives and politicians using the De- NEWSMAKER Pro and CON: Michigan’s colm Baldrige National troit event as a showcase for new This permanently Quality Award and that it technology and a platform to talk LUNCHEON hurdles for hospitals: Page 14 engaged starter was proceeding toward a about the future. Ⅲ When: 11:30 is part of the fuel- merger with Beaumont saving start-stop While automotive infotainment a.m. Feb. 21 Health System. And those This Just In system on a Ford was the focus at last week’s Con- Ⅲ Where: Ford are two big reasons that Escape displayed sumer Electronics Show in Las Ve- Field, Detroit she is Crain’s 2013 News- by Schaeffler gas, fuel economy technology will Ⅲ Tickets, Economists predict jobs up, maker of the Year. Group USA Inc. shine at this week’s NAIAS media details: Schlichting knew in state revenue down overall at Cobo Center. and industry days at Cobo Center. Crainsdetroit.com 2003, when she became Suppliers such as Southfield- /events. Prices Michigan continues its eco- CEO of the now $4.2 bil- based Denso International America $60-$99 nomic rebound, driven by CRAIN’S lion Detroit-based Inc., Plymouth-based ZF North higher vehicle sales and a health system, that en- America Inc., Milwaukee-based lower unemployment rate COVERAGE suring a successful future for Henry Ford Johnson Controls Inc. and Fort Mill, that’s forecast to go lower — which celebrates its 100th anniversary Articles, blogs, S.C.-based Schaeffler Group USA Inc. still, economists told lawmak- photos and in April — required the seven-hospital will display emerging fuel-saving ers at a revenue-estimating video from the system to grow larger and more prof- technology at this year’s show. conference Friday. auto show, itable. Jeff Hemphill, chief technology State Budget Director John crainsdetroit She also knew that growth meant en- .com/autoshow officer for Schaeffler, the U.S. sub- Nixon and the directors of the couraging executives, physicians and em- Senate and House fiscal agen- See Auto show, Page 22 cies pegged general fund rev- See Newsmaker, Page 21 enue at $8.79 billion for the fiscal year that starts Oct. 1 — a 5.1 percent reduction from Might there the previous year. They ex- come a day pect a 2.3 percent increase in Belle Isle: Motown’s Monaco when the School Aid Fund revenue but MacArthur a 1.1 percent reduction in the Bridge to two funds combined, ending Developer envisions independent commonwealth Belle Isle with a total $19.92 billion. will connect to an Rep. Joe Haveman, R-Hol- BY TOM HENDERSON lion in construction projects off the island independent land, chairman of the House CRAIN’S DETROIT BUSINESS and tens of thousands of temporary con- U.S. territory Appropriations Committee, struction jobs and tens of thousands of per- of high-rises Real estate developer Rodney Lockwood said the forecast shows the manent jobs. and low need for continued fiscal re- Jr. agrees with Detroit politicians that Belle Lockwood’s idea calls for a residential taxes? sponsibility in budget negoti- Isle is a jewel. A tarnished jewel he likes so and entertainment community on a grand ations commencing soon. much that he wants to put together an in- scale. But it calls for far more than just up- The biggest risk is one the vestor group to buy it for $1 billion, which is scale homes and condos in a pretty island state can’t control: fighting in more than $1 million an acre for the 982-acre setting. It also calls for the federal govern- Congress over the debt ceil- park in the middle of the Detroit River. ment to approve establishing Belle Isle as ing and spending cuts. And then he wants to polish it up with an independent commonwealth that would $20 billion in construction projects on the — Chris Gautz PHOTO ILLUSTRATION/JEFF JOHNSTON, CDB island, which would lead to another $20 bil- See Belle Isle, Page 20

STATEWIDE Nominate Michigan’s best in-house attorneys and general counsels NOMINATIONS ACCEPTED Deadline: January 25 www.crainsdetroit.com/nominate NEWSPAPER 20130114-NEWS--0001-NAT-CCI-CD_-- 1/11/2013 6:06 PM Page 1

® Cwww.crainsdetroit.comRAIN Vol. 29, No. 2 ’SDETROITJANUARY 2013 BUSINESS$2 a copy; $59 a year ©Entire contents copyright 2013 by Crain Communications Inc. All rights reserved Inside Michigan Suppliers look to CEO works GR west side developers for quality, pursue Gateway to progress, Page 10 fuel future community World Watch: Schlichting’s drive brings health Spotlight on Mileage-boosting tech system award, merger plans Michigan biz on display at NAIAS BY JAY GREENE in Israel, Page 13 CRAIN’S DETROIT BUSINESS BY DUSTIN WALSH You could say Nancy Schlichting’s journey CRAIN’S DETROIT BUSINESS the past nine years as CEO of Henry Ford Health System — and selection as Crain’s 2012 Health Care Cars will do what cars do at the Newsmaker of the Year — were all about her North American International Auto ability to inspire and drive quality and per- Show — draw crowds and cameras. Pro and CON: formance improvement. But at several exhibits, rapid That culminated last year with the an- Michigan’s advancements in new fuel-saving nouncement that the products will have supplier execu- hurdles for system had won the Mal- tives and politicians using the De- NEWSMAKER colm Baldrige National hospitals: Page 14 troit event as a showcase for new This permanently Quality Award and that it technology and a platform to talk LUNCHEON engaged starter was proceeding toward a about the future. Ⅲ When: 11:30 is part of the fuel- merger with Beaumont saving start-stop While automotive infotainment a.m. Feb. 21 Health System. And those This Just In system on a Ford was the focus at last week’s Con- Ⅲ Where: Ford are two big reasons that Escape displayed sumer Electronics Show in Las Ve- Field, Detroit she is Crain’s 2013 News- by Schaeffler gas, fuel economy technology will Ⅲ Tickets, Economists predict jobs up, maker of the Year. Group USA Inc. shine at this week’s NAIAS media details: Schlichting knew in state revenue down overall at Cobo Center. and industry days at Cobo Center. Crainsdetroit.com 2003, when she became Suppliers such as Southfield- /events. Prices Michigan continues its eco- CEO of the now $4.2 bil- based Denso International America $60-$99 nomic rebound, driven by CRAIN’S lion Detroit-based Inc., Plymouth-based ZF North higher vehicle sales and a health system, that en- America Inc., Milwaukee-based lower unemployment rate COVERAGE suring a successful future for Henry Ford Johnson Controls Inc. and Fort Mill, that’s forecast to go lower — which celebrates its 100th anniversary Articles, blogs, S.C.-based Schaeffler Group USA Inc. still, economists told lawmak- photos and in April — required the seven-hospital will display emerging fuel-saving ers at a revenue-estimating video from the system to grow larger and more prof- technology at this year’s show. conference Friday. auto show, itable. Jeff Hemphill, chief technology State Budget Director John crainsdetroit She also knew that growth meant en- .com/autoshow officer for Schaeffler, the U.S. sub- Nixon and the directors of the couraging executives, physicians and em- Senate and House fiscal agen- See Auto show, Page 22 cies pegged general fund rev- See Newsmaker, Page 21 enue at $8.79 billion for the fiscal year that starts Oct. 1 — a 5.1 percent reduction from Might there the previous year. They ex- come a day pect a 2.3 percent increase in Belle Isle: Motown’s Monaco when the School Aid Fund revenue but MacArthur a 1.1 percent reduction in the Bridge to two funds combined, ending Developer envisions independent commonwealth Belle Isle with a total $19.92 billion. will connect to an Rep. Joe Haveman, R-Hol- BY TOM HENDERSON lion in construction projects off the island independent land, chairman of the House CRAIN’S DETROIT BUSINESS and tens of thousands of temporary con- U.S. territory Appropriations Committee, struction jobs and tens of thousands of per- of high-rises Real estate developer Rodney Lockwood said the forecast shows the manent jobs. and low need for continued fiscal re- Jr. agrees with Detroit politicians that Belle Lockwood’s idea calls for a residential taxes? sponsibility in budget negoti- Isle is a jewel. A tarnished jewel he likes so and entertainment community on a grand ations commencing soon. much that he wants to put together an in- scale. But it calls for far more than just up- The biggest risk is one the vestor group to buy it for $1 billion, which is scale homes and condos in a pretty island state can’t control: fighting in more than $1 million an acre for the 982-acre setting. It also calls for the federal govern- Congress over the debt ceil- park in the middle of the Detroit River. ment to approve establishing Belle Isle as ing and spending cuts. And then he wants to polish it up with an independent commonwealth that would $20 billion in construction projects on the — Chris Gautz PHOTO ILLUSTRATION/JEFF JOHNSTON, CDB island, which would lead to another $20 bil- See Belle Isle, Page 20

1 STATEWIDE Nominate Michigan’s best in-house attorneys and general counsels NOMINATIONS ACCEPTED Deadline: January 25 www.crainsdetroit.com/nominate NEWSPAPER 71486 02858 0 20130114-NEWS--0002-NAT-CCI-CD_-- 1/11/2013 4:56 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS January 14, 2013

MICHIGAN BRIEFS After Wolverine Worldwide equipment were produced between 1906 and 2006, will be torn changes, 1 exec out, 3 stay Economic indicators indicate, well, nothing for sure down this summer to make way Rockford-based Wolverine World- for future development, The wide last week announced changes Barely two weeks into the new year and already but, with a couple exceptions, continue to show Muskegon Chronicle reported. as part of its $1.24 billion acquisi- the economic indicators are of the glass-half-emp- signs of topping out.” Ⅲ The Kimberly-Clark Professional tion in October of the Performance ty/glass-half-full/maybe-it’s-not-a-glass-but-a-cup In another economic indicator of sorts, the Grand molding plant north of Grand & Lifestyle Group, whose brands in- variety. In the latest survey of the Grand Rapids Rapids-based Western Michigan District of U.S. Bank- Rapids, which makes highway clude Sperry, Saucony, Stride Rite area’s industrial economy, Brian Long of the Seid- ruptcy Court said bankruptcy filings fell 13 percent last work zone safety products, will and Keds. man College of Business at Grand Valley State University year. Bankruptcy lawyer Rebecca Johnson-Ellis of close in June, resulting in 180 jobs Wolverine is moving from four said December was “almost flat” for industrial ac- David Anderson & Associates of Grand Rapids told lost, the Grand Rapids Business to three brand operating groups, tivity, MLive.com reported last week. MLive that the decline is mainly a result of banks Journal reported. the Grand Rapids Business Jour- Long, director of supply management research, and credit card companies tightening lending and Ⅲ Knape & Vogt, Grand Rapids, nal reported. Ted Gedra, Mark stopped short of uttering “recession” but said some credit card practices in response to the recession. has acquired the furniture parts Neal and Jim Zwiers will become months this year would see negative numbers. “We’ve In 2012, 11,108 individuals and companies used the production operations of CompX In- group presidents. Gregg Ribatt, returned to an unimpressive growth pattern,” said Bankruptcy Court, a 1,693-case decline over 2011. ternational, Dallas, for $59 million former CEO and president of the Long, who surveys industrial purchasing managers. The final figure for 2012 is down almost 50 percent and the assets of Diamond Storage Performance & Lifestyle Group, December was slower than expected for office fur- from 2009 and 2010. A breakdown of bankruptcy fil- Concepts, Las Vegas, for which will leave to “pursue other oppor- niture companies, he said in a news release last ings by category is not yet available for 2012, MLive terms were not released. tunities outside the industry.” week. “The auto parts suppliers remain positive reported. Find business news from around the state at crainsdetroit Happy-worker survey: Hi-ho, Tenn.; Honolulu; Memphis, Tenn.; northern Indiana, MiBiz reported. spending on the baseball stadium .com/crainsmichiganbusiness. and Virginia Beach, Va. And be- The offices have deposits totaling Ⅲ The Brunswick Bowling Prod- Sign up for Crain's Michigan hi-ho, GR’s the place to go cause no ranking of this sort is $778.8 million. ucts plant in Muskegon, where Business e-newsletter at crains When CareerBliss.com asked complete without civic shame, the The transaction needs federal bowling balls, pins and pinsetting detroit.com/emailsignup. regulatory approval. Old National more than 36,000 employees how five unhappiest were Boulder, Colo.; Reno, Nev.; Wichita, Kan.; said it did not anticipate any job happy they were with the city Fresno, Calif.; and Little Rock, Ark. losses locally. CORRECTIONS where they work, Grand Rapids Strangely missing from the 10 turned up as the seventh-happiest. Ⅲ A story on Page 1 of the Jan. 7 edition should have said that after El- happiest: Disney-dominated Ana- liott Management Corp. launched an unsolicited solo offer to acquire The study ranked cities using heim, Calif., and Orlando, Fla. So MICH-CELLANEOUS employee evaluations of 10 work- tech company Novell Inc., it joined with three other companies to buy the “happiest place on Earth” real- Ⅲ The Grand Rapids Economic De- Novell at a higher price. place factors: relationship with ly is a Mickey Mouse operation. velopment Corp. will issue revenue Ⅲ boss and co-workers, work envi- A story on Page 14 of the Jan. 7 edition should have said that Con- bonds on behalf of Cornerstone Uni- sumers Energy filed a rate increase request on Dec. 20 with the Michigan ronment, job resources, compensa- versity for a new baseball stadium, Public Service Commission that included a provision for an opt-out pro- tion, growth, opportunities, com- BoA offices acquired an athletic center for the team’s gram for customers who want to have their smart meter removed or pany culture, company reputation, Evansville, Ind.-based Old Nation- players and an undergraduate res- not installed. Under the proposal, a customer would pay a one-time daily tasks and control over work. al Bancorp last week said it planned idence hall. The $5.4 million in charge of $69.39 and a monthly charge of $11.12 when opting out. A cus- The six happier than Grand to acquire 24 Bank of America of- funding will be combined with tomer would pay $123.61 to opt out after a meter has been installed. Rapids: Dayton, Ohio; Knoxville, fices in Southwest Michigan and $2.6 million the university is 20130114-NEWS--0003-NAT-CCI-CD_-- 1/11/2013 5:54 PM Page 1

January 14, 2013 CRAIN’S DETROIT BUSINESS Page 3 Huron Capital raises its largest fund Inside

in line, so to speak.” He said Huron would continue to invest in $500M closing is $100M above goal well-run companies in the lower middle market that need equity to grow. BY TOM HENDERSON Brian Demkowicz, Huron’s managing part- Demkowicz said Huron, which has acquired CRAIN’S DETROIT BUSINESS ner, said the fund could have raised more. “We had a lot of interest or invested in 61 companies since its founding Detroit-based Huron Capital Partners LLC will well beyond what we raised,” in 1999, generally invests between $10 million announce today that it has finished raising its he said. “But you need to be and $70 million in companies with revenue up Ludlow Ventures seeks to fourth and largest private equity fund. The cautious. The worst thing to $200 million. Huron Fund IV LP closed at $500 million, which you can do is raise more It has 25 companies in its portfolio, rolled raise $15M fund, Page 5 was $100 million more than originally targeted money than you can prudent- into 11 platform companies in a variety of in- when fundraising began Oct. 1. ly invest in four or five years. dustries. It is thought to be the second-largest fund “It was an aggressive “This is a real vote of confidence from their raised by a Michigan private equity or venture timeline. Fortunately, we limited partners,” said Kevin Prokop, a partner Company index capital firm, behind the $865 million raised in had enthusiastic limited in Detroit-based Rockbridge Growth Equity LLC, 1999 by Southfield-based Questor Management Co. partners, both current and who wrote the offering memorandum for the These companies have significant mention in this Demkowicz LLC, which invested in distressed companies and new. We had a lot of (limited Questor fund before he joined Rockbridge. week’s Crain’s Detroit Business: was affiliated with the Southfield-based turn- partnerships) with a strong desire to get in. “In today’s fundraising environment, many Arotech ...... 13 around management firm AlixPartners LLP. When we opened the doors, they were waiting See Huron, Page 18 Art of Strength ...... 18 Assets International ...... 13 Auto Harvest ...... 22 Beaumont Health System ...... 1 Belfor USA ...... 13 Black Eagle Partners ...... 18 Sports fans’ Bridge & Stocking ...... 10 Bridge Street Gateway ...... 10 Cascade Engineering ...... 13 Center for Automotive Research ...... 22 tech thirst Detroit Economic Growth ...... 4 Detroit Lions ...... 3 Detroit Pistons ...... 3 Detroit Red Wings ...... 3 drains local Detroit Regional Chamber ...... 21 Detroit Tigers ...... 19 Detroit Venture Partners ...... 5 Domino’s Pizza ...... 13 stadiums Economic Alliance for Michigan ...... 15 First Step Fund ...... 5 Ford Motor ...... 13 Teams work to meet FutureNet Group ...... 6 General Dynamics Land Systems ...... 6 demand for data General Motors ...... 13 Grand Valley State University ...... 2 BY BILL SHEA HBR Labs ...... 13 CRAIN’S DETROIT BUSINESS Henry Ford Health System ...... 1 Can’t upload a photo of your Hillsdale Policy Group ...... 15 ballpark hot dog during a game be- Huron Capital Partners ...... 3 cause you have no service on your Kalitta Air ...... 6 smartphone? RANDY SMITH KPMG ...... 22 Title Boxing Club International LLC’s founders brought John Rotche on board as president and part owner to add his Kresge Foundation ...... 4 You’re not alone. franchising experience to the management team. Spotty or nonexistent cellular Lockwood ...... 20 and Wi-Fi connectivity at stadi- Ludlow Ventures ...... 5 ums is a major fan complaint in McLaren Health Care ...... 14 Detroit and across professional National Air Cargo ...... 6 and college sports, where massive Franchising with a punch Navistar Defense ...... 6 crowds calling, tweeting, texting North American International Auto Show ...... 1 and Instagramming inside dense Open Systems Technologies ...... 11 concrete and steel venues have Local entrepreneur looks to win with boxing-inspired workout clubs Oshkosh Defense ...... 6 strained mid-2000s technology Perrigo ...... 13 that’s unable to meet demand. BY SHERRI WELCH franchises sold to date, up from 80 RGIS ...... 13 Wireless carriers and Detroit’s CRAIN’S DETROIT BUSINESS in early 2012. Of those sold, 80 Rockbridge Growth Equity ...... 3 four pro sports teams are bolster- have opened, up from 10 at the be- Franchising was Rockford Construction ...... 10 ing technology at the four stadi- Local entrepreneur John Rot- “ ginning of last year. New clubs ums to improve the ability of fans che has returned to the ring as just my foundation. are opening around the country St. John Providence Health System ...... 21 to use their phones and tablets president of a fitness franchise fo- at about three per week, Rotche Schaeffler Group USA ...... 1 during games — which in turn cused on boxing-inspired work- My true passion has said. Title Boxing Club International ...... 3 makes it easier for the franchises outs. Rotche, who was president of Tomcar North America ...... 13 to offer in-game perks such as con- Since he became president of Ti- always been health Belfor International Holdings Inc.’s Turner Construction ...... 6 cessions and instant replays via tle Boxing Club International LLC in franchise group until last April, W.K. Kellogg Foundation ...... 4 fans’ mobile devices. April, Rotche has helped with and wellness. has six of his own locations The Detroit Pistons added new rapid sales of franchises around ” planned in Michigan over the Verizon Wireless technology to The the country and the opening of John Rotche, next 18 months. A location on Sta- Palace of Auburn Hills before the cur- boxing clubs in Michigan this Title Boxing Club International LLC dium Drive near Liberty Street in Department index rent season, and Verizon installed month. Ann Arbor opened Jan. 5, and one new technology at Ford Field in De- While TBC International is do. Classes of 50-60 people go in the Brighton Mall at I-96 and BANKRUPTCIES ...... 7 cember to offer free wireless ac- based in Overland Park, Kan., through a regimen of 15 minutes Grand River Avenue is expected BUSINESS DIARY ...... 16 cess and improved connectivity Rotche oversees franchise opera- of warm-up; three eight-minute to open today. CALENDAR ...... 17 for its customers during Detroit Li- tions from an office in Ann Ar- rounds of hitting a punching bag, He also plans to open showcase CAPITOL BRIEFINGS...... 7 ons games. bor. with a minute of active rest in be- boxing clubs in Novi, Canton The Detroit Red Wings, who have Title Boxing Club’s classes tween; and 15 minutes of core ex- Township, Lansing and Grand CLASSIFIED ADS ...... 17 don’t teach people to fight but, ercise. KEITH CRAIN...... 8 See Stadiums, Page 19 rather, to get in shape like boxers Title Boxing Club reports 403 See Boxing, Page 18 LETTERS...... 8 OPINION ...... 8 Inside scoop Crain’s Michigan Business OTHER VOICES ...... 9 THIS WEEK @ See what’s on the minds of reporters on Sign up for the roundup of statewide news PEOPLE ...... 16 the front lines of gathering Crain’s delivered to email inboxes every WWW.CRAINSDETROIT.COM business news at crainsdetroit.com/blogs. Wednesday: crainsdetroit.com/getemail. RUMBLINGS ...... 23 WEEK ON THE WEB ...... 23 20130114-NEWS--0004-NAT-CCI-CD_-- 1/11/2013 5:46 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS January 14, 2013 Kresge to begin making grants to fuel Future City changes by summer

BY SHERRI WELCH ture will be built. Those are: eco- The Detroit Future City frame- CRAIN’S DETROIT BUSINESS nomic development, land reuse, work captures a lot of momentum city systems such as lighting and that’s been going on in the city, The pilot projects for the Detroit transportation, neighborhoods, projects funded by foundations Future City framework aren’t yet land or public assets and civic en- and led by many others in the com- firm, but one of its backers is al- gagement. munity, Trudeau said. ready planning to begin funding- “Detroit is still going to be 139 For instance, the Lower East- related programs to spur visible square miles, but there are ways to side Action Plan developed by the changes in the city as soon as this use land differently for the benefit Warren/Conner Development Coali- summer. of the whole city,” Trudeau said. tion and the Skillman Foundation’s The Kresge Foundation, which The 349-page report, along with work to make six Detroit neighbor- contributed $3.9 million over the an executive summary, is avail- hoods better places to live for chil- past three years to support devel- able at www.Detroitlongterm.com. dren and families fits very well opment of the strategic plan for De- Other foundations that provided within the framework, she said. troit, said it will begin making grants to fund development of the For its part, Kresge has invested grants to aligned efforts while the framework were W.K. Kellogg Foun- $20 million to $25 million each of Detroit Future City steering com- dation, Community Foundation of the past several years primarily in mittee develops pilot projects over Southeast Michigan, Fred A. and Bar- the Detroit Future City plan and the next few months. bara M. Erb Family Foundation, Hud- Detroit programs focused on arts The Troy-based foundation “will son-Webber Foundation and the Mia- and culture, a healthier natural want to see some very clear, visible mi-based John S. and James L. Knight environment, early education/ed- signs of change within (Detroit) Foundation.At last week’s press ucation reform, transit through M- neighborhoods by this summer,” conference to introduce the frame- 1 Rail and stronger neighbor- some physical and some focused on work, Kresge and Battle Creek- hoods, especially around Eastern job creation, said Laura Trudeau, based Kellogg committed $2.5 mil- Market and in northwest and senior program lion and $500,000, respectively, southwest Detroit. THE RED WINGS director of De- over the next two years to fund a And it plans to align all of its troit and com- new office that will coordinate im- grants in Detroit for the next five munity develop- plementation of the framework. years to the framework. ARE BACK! ment. The DECG will serve as adminis- Kellogg’s approach is a little dif- Kresge plans trator of the work, and the commit- ferent, Webb said “There are areas HOST YOUR NEXT PARTY IN THEIR HOUSE. near-term fund- tee plans to hire an undetermined we do fund in and areas we don’t ing for some number of employees with specific fund in.” community- expertise in the six elements of the Kellogg provided a $400,000 plan- building pilots plan, Trudeau said. ning grant toward development of around ap- Kresge’s president and CEO, Rip the framework and has a grant proaches to va- Trudeau Rapson, said the foundation plans budget of about $25 million for De- cant land, such as creating green- to align all of its Detroit grants, troit programs this year. It will ways. $150 million over the next five likely make grants above its The immediate grants are meant years, to the framework to help $500,000 commitment to support “to give momentum and to let peo- leverage impact. operation of staff overseeing im- ple know we are serious about this plementation of the framework, framework plan,” Trudeau said. Webb said. Action-oriented funding While Kellogg wouldn’t fund The immediate commitment to public safety efforts stemming Long road staff the effort sets it apart from from the plan, its grants in other After two years of development, previous strategic plans for the areas such as health, education the Detroit Future City steering city, said Ali Webb, director of and job creation already align CREATE YOUR CUSTOM PRIVATE EVENT OR GAME EXPERIENCE committee, chaired by George Michigan programming for Kel- with the Detroit future work. CALL 313-471-3333 Jackson, president and CEO of the logg. “We’ve all made decisions indi- Detroit Economic Growth Corp., last There’s also been a lot of work vidually as to our best guess about week released a report laying out already happening in the city that what kind of investment will make a long-term plan to improve the gives the plan a running start. change happen in city of Detroit,” quality of life in Detroit and to Many community stakeholders Webb said. strengthen the city. have already been engaged during But the framework presents an Also on the committee are city of development of the plan. The opportunity to align all of the work Detroit representatives and lead- strategic planning included col- foundations and others are doing in ers from the business, nonprofit, lecting feedback on what they’d the city across a new plan, she said. education and religious sectors. like to see in their neighborhoods, “It’s the difference between Rather than making recommen- Trudeau said. dumping into a bowl and having a THE MILLER LAW FIRM dations for how to “right-size” the “Foundations have supported recipe; we have a recipe now for a professional corporation city as some believed it would do, this because the voices of people making Detroit happen.” the effort, (previously called the who live in the community have Sherri Welch: (313) 446-1694, Detroit Works Project,) identified been very, very important in this [email protected]. Twitter: six areas upon which the city’s fu- process.” @sherriwelch

NOMINATIONS SOUGHT FOR M&A AWARDS Involved in a merger or acquisition in 2012? You might to be retired. be eligible for Crain’s M&A Awards. Applications are at www.crainsdetroit.com/nominate. Crain’s Detroit Business and the Detroit The deadline is Jan. 21. chapter of the Association for Corporate Winners will be profiled in the March 25 issue of Growth will honor companies and Crain’s and honored at an event May 1. Our firm specializes in litigation: individuals in the following categories: For questions concerning the nomination process, • Complex Commercial and Business Ⅲ Best Deal of the Year: Two categories: contact Executive Editor Cindy Goodaker at • Shareholder and Partnership Under $100 million and $100 million or [email protected] or (313) 446-0460. For help in more. Deals must have closed in 2012. • Automotive Supplier using the nomination form, contact Events Coordinator Ⅲ Dealmaker of the Year/buyer-seller. Kacey Anderson at [email protected] or (313) • Class Actions Ⅲ Dealmaker of the Year/adviser: M&A experts, 446-6786. • Employment lenders, CPAs, consultants and attorneys, among The Detroit chapter of ACG is part of a global others, are eligible. • Family Law and Probate Litigation association of professionals involved in corporate (248) 841-2200 Ⅲ Lifetime achievement: Senior-level executive who has growth, development and mergers and acquisitions. 950 West University Drive, Suite 300 been involved in significant transactions and has made The local chapter formed in 1984. For more millerlawpc.com Rochester, Michigan 48307 a significant impact on the community. Does not have information, see chapters.acg.org/detroit. 20130114-NEWS--0005-NAT-CCI-CD_-- 1/11/2013 4:58 PM Page 1

January 14, 2013 CRAIN’S DETROIT BUSINESS Page 5

KENNY CORBIN Founder Jonathan Triest (right) has brought on managing partner Sandy Kronenberg to help vet prospective companies for his Ludlow Ventures LLC. Ludlow Ventures turns to institutional investors, seeks to raise $15M fund BY TOM HENDERSON come back when you’re doing a CRAIN’S DETROIT BUSINESS larger fund. I’ve already got some commitments.” Detroit-based Ludlow Ventures Some institutional investors LLC has begun raising a $15 million won’t invest in first funds, and oth- venture capital fund as founder ers will only invest in larger funds. Jonathon Triest changes it from The plan is to continue proving the an investment firm that raises model that profits can be generat- money from family members on an ed by investing in the early-stage as-needed basis to one with institu- space that traditional venture cap- tional limited partners and a dedi- Linkner Ramsinghani ital companies have become wary cated pool of money. of, and then go back to the market- Ludlow, headquartered in the vestors need to be patient and place in a few years. Madison Building downtown, has know it will take some time to One investor in the new fund is invested about $1.5 million since grow these companies.” Brad Feld, a managing director in being founded in 2009 and has 27 To help vet prospective portfolio the Foundry Group, a Boulder, Colo.- portfolio companies. companies, Ludlow has brought based VC firm that focuses on ear- While the amount of money on a managing partner, Sandy ly-stage companies. It is investing available, and its source, will Kronenberg, a veteran angel in- its third fund of $225 million, al- change, what won’t change is Lud- vestor, a serial entrepreneur who though this is a personal invest- low’s strategy of investing rela- has founded or bought several ment for Feld. tively small amounts of money in companies and the holder of sever- Ludlow has a reputation for each of a variety of startups and al technology-related patents. networking nationally, and in very early-stage companies. They plan to evaluate at least 3,000 this case, it paid off. He met Feld In the next two to three years, deals this year. through TechStars, a mentor-dri- Triest hopes to invest in another In 1997, Kronenberg founded ven organization that runs tech 100 companies, at least a quarter of Auburn Hills-based Netarx, a incubator programs in New York, them in metro Detroit, leaving provider of IT services. In 2002, he Seattle, San Antonio and Boulder, enough capital to invest larger fol- was a finalist for Crain’s entrepre- Colo. Feld co-founded TechStars low-on amounts in the most neur of the year. In 2011, he sold in 2006. promising of those companies. Netarx, which had 229 employees Feld and Triest have since co-in- Detroit Venture Partners LLC, the and revenue of about $60 million, vested in several tech startups, VC firm co-founded by Dan for $34 million to the Logicalis with such new-tech names as Den- Gilbert, the Madison’s owner, has Group, the Farmington Hills-based ver-based Roximity; Boulder-based co-invested in six deals with Lud- U.S. division of Datatec Ltd. of Ubooly; Palo Alto, Calif.-based low. South Africa. Graphic.ly Inc.; and New York-based “Jonathon is an insightful in- “The addition of Sandy was a Order.in. vestor and an important person in smart decision, as he brings exten- “I’m personally a big believer in Detroit’s revitalization,” said sive operating experience to the early-stage/seed VC funds, and I’m Josh Linkner, DVP’s managing firm,” said Linkner. always looking for awesome peo- partner. Triest and Kronenberg hope the ple to work with. Jonathon fits this “It’s good to know Jonathon is $15 million fund is an intermedi- category,” said Feld. raising a new fund,” said Mahen- ary step to raising a much larger “Ludlow has an ability to identi- dra Ramsinghani, managing di- fund and joining the big leagues of fy strong entrepreneurs and com- rector of the Detroit-based First national venture capital investing. panies in their infancy, and with Step Fund, a $5 million fund with a “I’m only 30,” said Triest, who great hustle, leverage their net- similar business model to Lud- was one of Crain’s 20 in their 20s in work to help them grow. A lot of low’s, generally investing $50,000 2011. “Hopefully, one day I’ll look their early success has come from in small, very early-stage compa- back and talk about my cute, little their give-before-the-get approach, nies. $15 million fund.” a deeply held belief of mine about “This is good news for the entre- Said Kronenberg: “I’ve got con- how VCs should work with entrepreneur. The more capital, the tacts with institutional investors preneurs.” more options these entrepreneurs who said they can’t invest in a Tom Henderson: (313) 446-0337, have,” said Ramsinghani. “This is fund this small. They said, prove [email protected]. Twitter: a risky space to be in, so his in- the concept, get some returns, then @tomhenderson2 20130114-NEWS--0006-NAT-CCI-CD_-- 1/11/2013 2:50 PM Page 1

Page 6 CRAIN’S DETROIT BUSINESS January 14, 2013 Seven defense companies start year with $500M in contracts

BY CHAD HALCOM Army Tacom Life Cycle Management $339.5 million in budget funds un- The contract calls for mainte- Tactical Vehicles. CRAIN’S DETROIT BUSINESS Command in Warren under the fed- der the 2013 National Defense Au- nance and service of various phys- Wisconsin-based Oshkosh hous- eral Foreign Military Sales pro- thorization Act signed by Presi- ical and electronic security sys- es a technical center near Tacom Seven defense companies tied to gram, follows a contract for Gener- dent Barack Obama Jan. 3. GDLS tems, access control point and that handles engineering and con- Southeast Michigan could receive al Dynamics from 2008. The work has said that the new funding and other related security systems tract management in Warren for more than $500 million over the is part of an ongoing plan to up- foreign orders have helped reduce worldwide. FutureNet Security, a the FMTV, a class of trucks and next five years under a series of grade M1A1 and M1A2 Abrams its anticipated idle period at the subsidiary company devoted to trailers Oshkosh has been produc- U.S. Department of Defense contract tanks to the M1A2S configuration Lima plant to less than 18 months. perimeter security systems, was ing since 2010. Troy-based Meritor awards announced since the be- for the Saudis. FutureNet Security Solutions LLC, a formed last year when FutureNet Inc. and AAR Mobility Systems Inc. in ginning of the year. Production will occur through subsidiary of Detroit-based Fu- Group in Detroit acquired the as- Cadillac are also suppliers to General Dynamics Land Systems in July 31, 2014, at the GDLS tank tureNet Group Inc., expects to re- sets of Smith & Wesson Security So- Oshkosh on FMTV. Sterling Heights gets additional plant in Lima, Ohio, which the ceive about $63 million under its lutions in Franklin, Tenn. Ypsilanti-based Kalitta Air LLC funding to help sustain its tank U.S. Army has previously pro- share of a five-year services con- Also, Oshkosh Corp. military con- and National Air Cargo Inc. are two of plant in Lima, Ohio, after the com- posed idling for a few years until tract award by the U.S. Army Engi- tractor Oshkosh Defense received 12 companies nationwide that will pany received $132.7 million to production begins on a new gener- neering and Support Center in two awards through Tacom total- divide up a new transportation produce 69 new M1A2 Abrams ation of Abrams tanks in 2017. Huntsville, Ala., with a ceiling val- ing more than $237 million to mod- contract award from the U.S. Trans- tanks for Saudi Arabia. The Abrams Main Battle Tank ue of $315 million for several par- ify previous procurement con- portation Command in Illinois with The award, through the U.S. program of GDLS also received ticipating companies. tracts for the Family of Medium a ceiling value of $694 million for domestic and international ship- ments of general, refrigerated, oversized, hazardous material and critical cargo starting Feb. 1. The contract runs for an initial “base year” starting next month and four optional renewal years to extend it through early 2018, with a guaranteed minimum award of ANDIAMOANDIAMO RERESTAURANTSSTAURANTS KKRESGERESGE FOUNDATIONFOUNDATION $2,500 per company. BEDROCK REAL ESTATE SERVICESSERVICES LLANDARCANDARC Finally, Navistar Defense LLC received a $10.6 million contract CRAIN’S DETROIT BUSINESSBUSINESS LEVELELEVEN award for maintenance services DETRDETROITOIT CCREATIVEREATIVE COCORRIDORRRIDOR CENTERCENTER LLEVELEVEL ONEONE BANKBANK on the Mine Resistant Ambush Protected vehicle, one of several DETRDETROITOIT ECONOMICECONOMICG GROWTHROWTH COCORPORATIONRPORATION MMETROETRO TIMESTIMES managed through an engineering and contract management center DETRDETROITOIT LABLABSS NEXTEK PPOWEROWER in Madison Heights; and New DETRDETROITOIT REREGIONALGIONAL CHAMBERCHAMBER QUQUICKENICKEN LOANS York-based Turner Construction Co., which has maintained Detroit of- DETROITDETROIT TIGERSTIGERS QQUIZZLEUIZZLE fices since 1973, received $13.6 mil- DETRDETROITOIT VENTVENTUREURE PARTNERSPARTNERS RROCKOCK COCONNECTIONSNNECTIONS lion from the U.S. Army Corps of En- gineers in Detroit to build a new DDOODLEOODLE HHOMEOME ROJO MEXICAN BISTROBISTRO U.S. Border Patrol station in the city by August 2014. DTE ENERGYENERGY SUSUNN COMMUNITIESCOMMUNITIES Chad Halcom: (313) 446-6796, ELLIELLISS PPORTERORTER TTAPPER’SAPPER’S [email protected]. Twitter: @chadhalcom GOOGOODBY,DBY, SILVERSTEINSILVERSTEIN & PARTNERSPARTNERS TTECHONOMYECHONOMY HHUBBARDUBBARD SNITCHLERSNITCHLER & PARZIANELLOPARZIANELLO PLCPLC TTECHTOWNECHTOWN INTEINTEGRATEDGRATED DEDESIGNSIGN SOSOLUTIONSLUTIONS UUNIONNION ADWORKSADWORKS JOJOEE MMUERUER RERESTAURANTSTAURANT UPTUPTOWNOWN ENTERTAINMENTENTERRTAINMENT JOSJOSHH LINKNELINKNERR WARRIOR SPORTSSPS ORTS KNKNIGHTNIGHT FOUNDATIONFOUNDATION WWOLVERINEOLVVERE INE PAPACKINGCKING

CRAIN’S SEEKS NOMINEES FOR 20 IN THEIR 20S Do you know a 20-something who is someone to watch? Crain’s 20 in their 20s recognition program seeks young professionals who are making their marks in the region. Candidates are not limited to any particular field or activity but include up-and-comers who are making waves as young professionals within a company, have shown success or originality as entrepreneurs, or have made local impacts in some other demonstrable way. Besides the corporate world, candidates are considered from creative industries, nonprofits and N2011 was the yearEXT of Bold Arrival. 2012 was the year of Kick Ass Creative. ?social entrepreneurship arenas. Winners will be profiled in the April We’re not sure what 2013 will bring, but we’re ready for who and what may be next. 29 edition and honored at a May awards event. Nominees must be 29 or younger before April 29. Nominations are due Feb. 4. Visit BY VIRTUE OF CREATIVE MIGHT, DETROIT SHALL RISE FROM THE ASHES. www.crainsdetroit.com/nominate Kick ass design since 19195959| | skidmorestudio.coskidmorestudio.comm to fill out the form. Questions? Contact Bill Shea at [email protected] or (313) 446- 1626. 20130114-NEWS--0007-NAT-CCI-CD_-- 1/11/2013 4:57 PM Page 1

January 14, 2013 CRAIN’S DETROIT BUSINESS Page 7 Expect another push for road funding changes

Based on Gov. Rick More than a year ago, to raise that amount. motor fuels was also not acted on. front of them. Snyder’s own calcula- Snyder presented the ex- That range, by the way, came However, there does seem to be Ⅲ Snyder last week appointed tions, the Legislature’s Capitol ample of raising vehicle from a House transportation work reason for hope that lawmakers Ron Boji of Orchard Lake and Craig inaction on overhauling Briefings registration fees by group, headed in 2011 by Republi- are interested in finding a solu- DeNooyer of Kalamazoo to the Michi- Michigan’s transporta- about $120 a year, and can Rep. Rick Olson and Democra- tion. gan Strategic Fund board of direction funding system has creating a regional regis- tic Rep. Roy Schmidt. Both men In his speech to the 97th Legisla- tors. cost the state more than tration fee for another are no longer in the Legislature. ture on the first day of its session Ⅲ Senate Majority Leader $1.3 billion since he $40 per year. Doing that, Republicans tossed Olson aside last week, Bolger talked about the Randy Richardville, R-Monroe, urged action more than a he said, would raise be- during redistricting to try and importance of infrastructure, say- named Jordan Hankwitz as his year ago. tween $1 billion and $1.4 shore up another Washtenaw ing, “We must finally answer the deputy chief of staff. In a special message billion each year, which County Republican’s seat, but ulti- billion-dollar question of how to Chris Gautz: (517) 403-4403, on transportation and he felt should be the mately lost that seat. provide quality roads to Michi- [email protected]. Twitter: infrastructure in Octo- state’s goal. And Schmidt … well, a few gan’s drivers and a high-quality @chrisgautz Chris Gautz ber 2011, Snyder sought To put it nicely, that months later he became a Republi- infrastructure for Michigan’s job to make changes to Act 51, the sys- didn’t go over very well. can after engineering a last-second creators.” tem for distributing transporta- And that, of course, is the prob- party switch with House Speaker But he cautioned that before ad- tion funds across the state that was lem. Everyone wants better roads, Jase Bolger, then lied about his in- ditional revenue is considered, the developed more than six decades but no one is particularly excited volvement, leaving him so badly Legislature must ensure that exist- ago. It’s a system so outdated, Sny- about paying for them. damaged from the scandal that he ing resources are being maxi- der noted then, that two cities re- But most agree that something stopped campaigning and lost his mized. BANKRUPTCIES ceiving funds from it have no pub- needs to be done, and it’s been seat handily to a political un- “But, if we cannot, we must con- lic bridges or roads in their about 16 years since transporta- known. vince road users how and when we The following businesses filed for boundaries. tion user fees have gone up. So we’ll have to see who’s left will pay for this vital service. With Chapter 11 or Chapter 7 protection in U.S. Bankruptcy Court in Detroit Jan. Snyder said in the speech, given In 2011, Snyder noted that for and is willing to pick up the ball so much at stake, we must work to- 4-10. Under Chapter 11, a company 447 days ago, that each day the the first time, revenues dedicated and run with it. gether to finally solve this prob- files for reorganization. Chapter 7 in- state is losing about $3 million in for transportation spending were The Legislature did find another lem,” Bolger said. volves total liquidation. the value of its transportation as- declining. With vehicles getting roughly $100 million for roads in 31 N. Walnut LLC, 246 Crocker Blvd., sets. better gas mileage, and with gas the last session, approving a bill Mt. Clemens, voluntary Chapter 11. And since that speech — which prices higher, along with a still- that Snyder later signed that di- Short takes Assets and liabilities not available. was titled “Better Roads Drive Bet- struggling economy, people were rects 2 of the 6 cents from the sales Ⅲ Last week, Snyder completed Aerodynamics Inc., 6544 Highland ter Jobs” and was largely ignored driving less. tax on gas to roads. Previously, work on the 282 bills he was sent Road, Waterford Township, voluntary by lawmakers who were beginning What were increasing, and those funds went into the general during the lame-duck session, Chapter 11. Assets and liabilities not available. their re-election campaigns — the which continue to increase, are fund. The remaining 4 cents we with his final action — or non-ac- O’Quinns Inc., 21649 Quinn Road, Clin- state’s roads have not gotten any the costs of the materials to fix pay at the pump from that tax are tion — being the pocket veto of HB ton Township, voluntary Chapter 7. better. roads and bridges, and of the men protected and largely go to fund ed- 5546, which was of great impor- Assets: $12,769; liabilities: $1.04 mil- That is why Snyder is expected and women to fix them. ucation. tance to the few remaining horse lion. to make another push for changes I’m told Snyder still feels the Snyder’s revenue-neutral pro- tracks in the state. It would have Vegas Inc., 8024 Greenfield Road, De- to transportation funding in goal should be to raise $1 billion to posal of eliminating the gas tax allowed people at the tracks to troit, voluntary Chapter 11. Assets: Wednesday night’s State of the $1.4 billion annually, but it re- consumers pay at the pump by replace bets on historic races and $147,430; liabilities: $582,990. State address. mains unclear how he will propose placing it with a wholesale tax on then watch the race on a screen in — Ryan Kelly

NOMINATE GENERAL COUNSELS AND IN-HOUSE ATTORNEYS As companies across Michigan chart their paths to growth, so too do their legal teams. Litigation Experience How well have attorneys handled the challenge? Who are Michigan’s best in-house ® attorneys and general counsels? In Your Corner. Crain’s is seeking nominations for its third annual General and In-House Counsel Awards to I Business litigation, contracts and highlight the best and brightest of commercial matters the state’s in-house legal professionals. I Construction law and litigation Candidates will be judged on measures such as litigation I In Your Corner. avoided, reduction in claims, cost containment and pro bono/community service. New for this year will be a lifetime achievement award. Winners will be announced in the April 1 issue of Crain’s Detroit Business. Awards will be given out on April 16 at the Crain’s General & In- House Summit at the Westin Book Cadillac in Detroit. Nominations are due Jan. 25. Statewide nominations accepted. To fill out the form, visit crainsdetroit.com/nominate. For questions about the nomination process, contact Daniel Duggan at [email protected] or (313) 446-0414. For technical questions regarding First Tier Ranking in Corporate Law and a nomination form, contact Commercial Litigation Kacey Anderson at [email protected] or (313) Rich Hewlett I I I I I 446-6786. Metro Detroit Grand Rapids Kalamazoo Grand Haven Lansing [email protected] 20130114-NEWS--0008-NAT-CCI-CD_-- 1/11/2013 5:43 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS January 14, 2013 OPINION Leadership, trust keys to Future City etroit has seen lots of studies, lots of plans. But the framework for the city’s future unveiled D last week could be the beginning for historic transfor- mation. At the same time, Detroit’s elected leadership — or state- appointed managers — must fix the underlying financial and managerial issues crippling municipal operations. Detroit Future City doesn’t “shrink” the city or call for wholesale movement of residents from one neighborhood to another. But it does look strategically at core employment areas, reuse of land for parks and even ponds, better basic services such as lighting and getting people to job centers more quickly through transportation. The framework covers a lot of territory, literally. But as Sherri Welch reports on Page 4, foundations and philanthropy will find plenty of opportunity to support pilot projects to kick- start change. Besides cash, transforming the city will require keen political leadership and grass-roots support. Communication in this process is critical. So, too, is trust. But leadership that un- derstands the need for communication and trust while making bold decisions is the most essential element of all. Keep eye on 2012 Newsmaker LETTERS Speaking of leadership, Crain’s is proud to announce its Newsmaker of the Year for 2012: Nancy Schlichting, CEO of Henry Ford Health System. ‘Single issue’ needs a response As Jay Greene reports on Page 1, Editor: cisions in these very personal ar- Schlichting has had a stellar impact on Crain’s Detroit Business Having read Mary Kramer’s col- eas. the nearly 100-year-old health system: welcomes letters to the editor. umn (“Are women single-issue And, as far as the single-issue All letters will be considered for consistent financial results, winning the topic, the very tragic events that voters?” Dec. 17), I need to re- publication, provided they are prestigious Malcolm Baldrige Award, a have recently taken place in our spond. signed and do not defame long-range development plan for the core country may reflect why some I am disturbed by the title of the individuals or organizations. campus in the New Center area and the column and the further discussion Letters may be edited for people may just, at some point in pending merger with Beaumont Health of the topic of women being single- length and clarity. their lives, be single-issue voters. I would hope that compassion and issue voters. Nowhere in commu- Write: Editor, Crain’s Detroit System. understanding of why people may nications (with me) was the topic Business, 1155 Gratiot Ave., By late March, Henry Ford and Beau- choose to support certain issues of single-issue voters raised. The Detroit, MI 48207-2997. mont should announce major decisions — or not — would prevail. Would- title, the disgust with single-issue Email: [email protected] n’t it be nice if all of this conversa- that will affect this region for years to voters and the anonymous quote tion resulted in common sense come. We suspect Schlichting will continue to play a major from the executive woman who issue — particularly one that was coupled with civility, rather than leadership role in the merged system. stated that she did not want to be seemingly settled decades ago in personal or political ideology, be- She has a significant track record in creating a solid organi- “defined by my sex organs” some- this country. I am appalled that ing used to resolve some of these zational culture that achieves results. That extends into her how casts disdain on me and per- any issue regarding abortion, and issues? civic roles, including chair of the Detroit Regional Chamber at haps others mentioned or referred ultimately adoption, etc., would be Cynthia Ford to in the piece. addressed primarily by men who Philanthropist, civic volunteer the local level and a director role at Chicago-based Walgreen Co. I am not a single-issue voter, but can’t possibly relate to the heart- Grosse Pointe Farms The selection as Newsmaker of the Year for 2012 is well-de- nor do I feel that I need to apolo- wrenching steps many women served. But the best may be yet to come. gize for speaking out on a women’s must go through before making de- See Letters, Page 9

KEITH CRAIN: This is the week for Detroit to shine Forget about Detroit’s financial ber of auto executives that it’s all about cars. they care about are the cars and quite a feat. cliff. Ignore the trial of ex-Mayor from all over the United This is the Motor City. trucks and the automotive execu- Although we’ve had an auto Kilpatrick. Don’t give another States and the world, And it’s going to re- tives who are involved with their show in Detroit for more than a thought to the future of Wayne it’s the biggest event main the Motor City creation and sales. century, we are rapidly approach- County. Don’t even bother thinking that Detroit will see forever, we hope. The For all of our journalist visitors, ing the 25th anniversary of the about Michigan’s right-to-work law every year. American automobile it is a very exciting time. They get North American International — that is, unless someone wants to Everyone can still re- was born in Detroit, to rub elbows with all of the people Auto Show. I have no doubt that build a new car plant in Michigan. member and be very and most of its siblings they write about. next year will be even more excit- This is the week, the very spe- proud of the Super Bowl were born and reared The superstar status of our auto ing. cial week that kicks off the North when it was in Detroit. around here. executives can only be matched by Enjoy the show, which opens American International Auto This international show This is the week when the glitz and glitter of all the brand next weekend for us Detroiters. Show. One of the best in the brings in twice as much we’ll be hearing a lot of new cars that are being revealed for Meanwhile, if and when you come world. Certainly the best in North economic development different languages be- the first time. Certainly having the across automobile executives from America. With 50 new models be- each year as the Super Bowl did ing spoken. It is amazing to think introduction of the new Corvette is around the world, be very hos- ing introduced to the world, well once. It’s like having two Super that thousands of journalists ar- completely appropriate for the Mo- pitable to them. They come here over 5,000 journalists from Bowls every year. rived here over the weekend and tor City. The introduction of that every year, and we’re very proud around the world and a huge num- And what makes it so great is will be around until midweek. All icon, along with almost 50 more, is to host them. 20130114-NEWS--0009-NAT-CCI-CD_-- 1/11/2013 11:46 AM Page 1

January 14, 2013 CRAIN’S DETROIT BUSINESS Page 9

ed the Michigan State Fair- decades in the fight to create op- rebuilding of Detroit, and we foreign born. LETTERS CONTINUED grounds property and will utilize portunities and build communi- should make sure that the plan The immigrant community has the entire property for a mixed- ties in metro Detroit, I am in- supports them. demonstrated remarkable incli- ■ From Page 8 use development. trigued by the development Between 1990 and 2005, 25 per- nation for higher education and Lastly, MDOT made significant proposals in Detroit Works’ new cent of all public firms in the enterprise in science, technology, Cleveland’s rapid bus investments on Eight Mile in 2012 Detroit Future City strategic United States were founded by engineering and mathematics ($6 million invested between plan. immigrants. Software, semicon- fields. With our world-class uni- system an inspiration Grand River to Telegraph) and To promote meaningful eco- ductors and biotechnology were versities, we are filling an invalu- Editor: will continue to make invest- nomic development, we must sup- the top sectors for private immi- able resource pool with highly ed- As a fellow passenger on the ments in 2013 ($11 million to be in- ucated, highly motivated port innovators — people who grant-founded companies with Cleveland HealthLine ride, I real- vested between Southfield Free- entrepreneurs. Yet we drain that recognize a need and have the tal- venture backing, according to a ly enjoyed the article describing way and Telegraph) with road pool with antiquated immigra- ent, expertise and perseverance study by the National Venture the adventure (“Cleveland travels resurfacing work. tion policies. to fill it. Capital Association. right line,” Jan. 7). Tami Salisbury Immigrants do not take our Executive director There is a group of people that A Detroit study shows that im- I, too, was impressed with the jobs, they help create them. In- Eight Mile Boulevard Association stands out for its grit, creativity, migrants earn half of all new en- level of quality of the bus rapid corporating support for them in technological savvy and enter- gineering Ph.Ds awarded in this transit system, and with Cleve- Detroit’s new plan will spur the prise — a group we should sup- country. This study places Michi- land’s reaction to the system. I Immigrant support economic growth we so desper- port. They are the immigrant en- gan eighth nationwide in the only hope that we in the Detroit ately need. will spur city’s growth trepreneurs and their number of international stu- area will also be able to have Sonia Harb Editor: entrepreneurial spirit, who rep- dents, while 62 percent of Michi- such a system. As a member of Senior director resent a slam-dunk partner in the gan’s engineering Ph.Ds go to the ACCESS entrepreneur support programs the Woodward Avenue Associa- As someone who has worked for tion, I still hope for a positive future for not just Woodward Av- enue but for much more of the Detroit metro area. Certainly, Woodward is a key artery for the metro area. It has come to my attention that a proposal for the State Fair site at Woodward and Eight Mile Road is being considered by the Michigan Land Bank. Redevelop- ment of the site should be an inte- gral part of our potential en- hanced public transportation system. It seems that the conflu- ence of Woodward Avenue, Eight Mile Road and Amtrak rail would be a natural for a multimodal station in the future. I hope the release of the site would not be completed without due consideration of the creation of such a station. Increasing the availability of the site to the larger metro area, as it grows into the future, will enhance its via- bility as an attractive area for retail, entertainment and residential uses. Ron Gillham Mayor Huntington Woods

Eight Mile chock-full of investment Editor: I noticed that five regional cor- ridors were highlighted in Crain’s online article “Crain’s puts money on the map: Major investments along 5 regional roadways,” however there are many great things happening along Eight Mile, too. Here are some highlights: Gateway Marketplace is in fact on Eight Mile (almost the entire retail center will have Eight Mile addresses). Gleaners is locating its distribution center on Eight YOUR BUSINESS ISN’T JUST A JOB — IT’S A PASSION. Mile (at Telegraph) in Southfield You get to know your in 2013. Dearborn Axle recently customers, treat them fairly, and build relationships. Don’t you deserve that same kind purchased the former Goodwill Printing Co. building in Ferndale of treatment from your bank? With Citizens Bank, you’ll get the right solutions and and is renovating. The former products from people with the experience to know what’s right. After all, we’ve been Hayes Lemmerz building at Eight Mile and Pinecrest in Ferndale is around over 140 years, helping businesses just like yours grow. So if you want a bank being demolished to make way that shares your passion, call us. BECAUSE WITH US, IT’S PERSONAL. for a new development (30-plus acres). A new Tim Hortons just opened on Eight Mile in Detroit $)&$,*/( 4"7*/(4 r -0"/4 -*/&4 0' $3&%*5 r .&3$)"/5 4&37*$&4 (near Telegraph). 53&"463: ."/"(&.&/5 r 41&$*"-5: '*/"/$*/( r 8&"-5) ."/"(&.&/5 We recently awarded funding to two façade projects that in total invested more than $200,000 (the Southfield building was empty 1-800-946-2264 and will now be occupied). CITIZENSBANKING.COM/BUSINESS Earvin “Magic” Johnson and other investors will likely be award- 20130114-NEWS--0010-NAT-CCI-CD_-- 1/11/2013 11:47 AM Page 1

Page 10 CRAIN’S DETROIT BUSINESS January 14, 2013

PUBLISHER’S NOTEBOOK

Contact Mary Kramer at mkramer @crain.com. CRAIN’S MICHIGAN BUSINESS Mary Kramer Lawmaker orientation also Detroit reorientation Kalamazoo’s loss may be Detroit’s gain. Chuck Perricone, a former Michigan House speaker who’s now a lobbyist and owner of the Lansing-centric digital website The Dome, moved his orientation program for new lawmakers to Detroit from Kalamazoo last week. The under-the-radar program had been in Kalamazoo, Perricone’s home political base. But changes in sponsorship led to the move. Good thing for Detroit. More than 20 of the 28 new House members showed up — quite a feat, given the rancor of the waning days of Walt Gutowski Jr. and his son Walt Gutowski III stand on Bridge Street in Grand the legislative session that concluded Rapids, where the elder Gutowski has been buying and remodeling buildings. He in December. The “newbies” weren’t owns Swift Printing & Communications in the corner building, which he restored. The younger Gutowski helps his father manage properties in the area. part of that lame-duck session, so they can start fresh when the Legislature JON BROUWER gets back to work this month. The program, held at the Detroit Marriott Renaissance Center and Coach Insignia restaurant, began Thursday night with dinner and Dan Gilbert as headline speaker. The speakers Thursday and Friday were a draw, but for the new lawmakers, so, Lower west side story too, was the opportunity to connect with one another and the leadership. House Speaker Jase Bolger, Democratic House leader Tim Greimel ‘Gateway Project’ may revive once-thriving stretch near downtown GR of Auburn Hills and Senate Majority Leader Randy Richardville from Monroe BY MATTHEW GRYCZAN cently passing through the hands of Er- dresses for Bridge Street Gateway and attended and were part of the program. CRAIN’S MICHIGAN BUSINESS hardt Construction Co. and former furniture Bridge & Stocking LLC — which snapped up “This is where they can walk in, talk retailer Robert Israels. 16 largely contiguous properties totaling privately — both sides of the aisle — he largest general contractor in West Rockford’s public relations agency, about 2 acres west of the Gateway parcel and meet with the leadership,” Michigan is positioned to launch a Seyferth & Associates in Grand Rapids, said — are the same as Rockford’s. State Perricone said. “I tell the new T multimillion-dollar development — its client is working on a communications records show that the resident agent of members, ‘You will never have the tentatively named the “Gateway Project” plan that will outline the company’s lead- the properties is Kurt Hassberger, COO of leader from across the aisle speaking — that promises to breathe new life into to you like this again.’” ership role in rejuvenating the lower west Rockford and president of Rockford Devel- the lower west side of Grand Rapids near side, but the firm declined to discuss de- opment Group. Gilbert was a draw, Perricone said. the city’s downtown. tails. Rockford’s CEO and chairman, Mike The parcels assembled by Bridge & “We wanted him to talk to some of The crowning jewel: a nearly 1-acre par- these folks who have only heard the VanGessel, declined to comment. cel that Rockford Construction Co. assem- City records show that the mailing ad- See Gateway, Page 11 negatives about Detroit why he thinks bled last month with the help of Grand Detroit is a buy.” Rapids City Commissioner and business- One of the columnists for man Walt Gutowski Jr. for a yet-to-be-de- PUTTING THE PIECES TOGETHER Perricone’s digital publication, Jack termined marquee project to serve as an Lessenberry, moderated a panel Here’s a look at property ownership by two key players in the Gateway inviting portal from downtown to the west Project area of Grand Rapids’ lower west side: Thursday night focused on diagnosing side. why state engagement in Detroit has Current landmarks on the parcel are Second been such a minefield. The Q&A was the Cini Mini Adult Theater and its sister candid and insightful. business, Classic Lingerie & Video — two Friday’s program also was a chance enterprises that have been embarrass- for two alums — term-limited former ments for the area even though their own- Democratic Rep. Lesia Liss of Warren ers were good neighbors, said Gutowski, First and Republican Rep. Bill Rogers from Seward Lexington

who represents the city’s First Ward. Alabama Brighton — to tell the story of how they Stocking Both businesses have moved to new loca- Turner forged the House Bipartisan Caucus. Broadway tions. Liss told me the caucus idea was Quietly since summer, Bridge Street hatched at one of Perricone’s Gateway LLC and another entity controlled orientation events. She acknowledged by Rockford have spent more than $2 mil- that the notion of bipartisanship has Bridge been challenged, but she was ready lion to acquire 22 largely vacant or run- down properties in high-profile locations to make the pitch to the newcomers. = Rockford-controlled 131 along the north side of a four-block sec- Having more than 20 new property tion of Bridge Street, according to city lawmakers from around the state in downtown Detroit before they records. = Gutowski-controlled Douglas

Many of the parcels have gone through property t. Vernon

immerse themselves in Lansing was a Winter

Summer a series of ownership changes, most re- M coup for the city. CDB 20130114-NEWS--0011-NAT-CCI-CD_-- 1/11/2013 11:40 AM Page 1

January 14, 2013 CRAIN’S DETROIT BUSINESS Page 11

SStState-of-theatte-oof-thhe ArtArt FacilityFacciility CRAIN’S MICHIGAN BUSINESS FoForr CrCreative,eative, EffEffective,ecttive, InInnovativennovative Gateway: Plan would revive stretch MeMeetingseetings & EEventsveents ■ From Page 10 Stocking include several vacant Your next meeting or event does not have to be in a crammed, storefronts along Bridge Street drab place. The Engineering Society of Detroit's new, that were formerly owned by Er- state-of-the-art, award-winning facility, centrally located in hardt and Israels and a triangular Southﬁeld is the perfect place for meetings small or large. section of retail properties best known as the site of the closed Leg- end Restaurant. ESD’s facility features A third corporate entity with Ţ$FSUJŻFENFFUJOHQSPGFTTJPOBMTFYQFSJFODFETVQQPSUTUBƋ Rockford ties, Ring 1&2 LLC, has as- Ţ$PNQFUJUJWFSBUFT sembled seven contiguous parcels Ţ&OFSHZFƌDJFOUTQBDF that total about a half-acre directly Ţ$FOUSBMMZMPDBUFEOFBSNBKPSGSFFXBZT across from where Rockford is building a new corporate head- Ţ"EKVTUBCMFDMBTTSPPNTGPSBMMZPVSNFFUJOHOFFET quarters that it is scheduled to oc- Ţ4."35#PBSEUFDIOPMPHZ cupy in the spring. Ţ$BUFSJOHBWBJMBCMF Concurrent with the Rockford Ţ0QFOEVSJOHPƋCVTJOFTTIPVST acquisitions that took place last JON BROUWER month, Gutowski purchased the Overshadowed by the progress of downtown Grand Rapids nearby, Bridge Street site of the former Red Lion restau- may improve its image through the Gateway Project. For more information or to rent the space, rant, which closed about eight WJTJUXXXFTEPSHPSDBMM5JN8BMLFS $.1 years ago. The acquisition could at 248-353-0735, ext. 115 or [email protected] further burnish the image of But this is probably the first Bridge Street if the property is re- time that Rockford’s own head- developed in a way similar to Purchasing a quarters will be acting as the an- Gutowski’s other properties “ chor for one of its projects. The on that street. property, in company broke ground in the sum- Gutowski now owns 17 and of itself, mer on a $4.7 million rehabilita- properties near the Gateway tion of a vacant factory and new Project. isn’t going to construction for its headquarters Dan Behm, founder and at 601 First St. N.W., about a block president of Open Systems Tech- help north of Bridge. nologies Inc., which is near the Since it broke ground, Rockford Rockford parcels, said he was anything. has surrounded itself with more excited by the prospects of de- than 3 acres of additional proper- velopment. But if they ties for potential retail and com- “Bob Israels had a plan at one mercial use. point where he wanted to build a were to improve it, Gutowski said he helped broker gateway to the west side,” Behm Rockford’s acquisition of the 1- said. “It’s been my hope that some- that would be a acre piece at the northwest corner body else would take that role of of Bridge and Turner streets in De- improving the west side, and when wonderful thing for cember by purchasing several I look at this (combined parcels), I parcels from former owners can see there’s a possibility that it the west side. William Colthurst III and Michael will happen.” ” Smith. He then combined them Dan Behm, with another parcel he owned, sell- Open Systems Technologies Inc. ing them immediately to Bridge Being neighborly Street Gateway. Rockford Construction — the dral Square at the southern edge of While Gutowski said he didn’t area’s largest general contractor, downtown; Cherry Street Landing, know what Rockford would put on with reported revenue of about which saw the renovation of the property, he speculated that $160 million in 2011, according to 300,000 square feet of vacant space any project would have significant the Grand Rapids Business Jour- in the city’s Heartside area; and a curb appeal. nal — has made a reputation for it- number of projects in the Monroe Property transfer affidavits filed self by tackling large-scale anchor Center area of downtown Grand with the city indicate that Bridge projects that cause a rippling effect Rapids, such as the Steketee’s Street Gateway paid $763,000 for on nearby properties. Building, the Grand Rapids Art Muse- the parcels formerly owned by Some of its more prominent pro- um and the proposed Morton Colthurst and Smith and $375,000 jects include the $15 million Cathe- House redevelopment. to Swift Realty LLC, a corporate entity owed by Gutowski that holds his nearby properties. Gutowski said he used the pro- ceeds from the sale to buy the Red Lion and two Bridge Street parcels from the family of Serafim “Sam” Koukios, founder of the Red Lion chain, who died in 1998. A return to the old Bridge Street The Gutowski family has had a stake in the well-being of Bridge Street since Walter Gutowski Sr. moved his fledging print shop to the corner of Bridge and Mt. Ver- non in 1954, when the main thor- oughfare was bustling with energy. Now after years of struggle to offset the decline of Bridge Street next to downtown, the tide finally seems to have turned, said his son, Commissioner Gutowski. “I’d like to consider this (redevelopment) as a return to the old Bridge Street,” said Gutowski, who estimates he spent more than $1 million to refurbish a Bridge Street building that houses Fratel- li’s Pizza and Frank’s Knockout Fit- See Gateway, Page 12 20130114-NEWS--0012-NAT-CCI-CD_-- 1/11/2013 11:38 AM Page 1

Page 12 CRAIN’S DETROIT BUSINESS January 14, 2013 CRAIN’S MICHIGAN BUSINESS Have a specific need? Gateway: Revival plan ■ From Page 11 ness gym. forced the sale of assets in his com- Our candidates have specific training. This four-block section, he said, panies, Klingman’s Furniture and Is- “is a natural channel for people to raels Designs for Living. travel from downtown to the west This past October, a corporate side, and I see this area as a place entity with Erhardt Chairman and to bring people together.” CEO Joseph Erhardt listed as reg- Gutowski is the owner of Swift istered agent sold the properties to Printing & Communications, a hybrid Rockford. production company that handles everything from digital printing to data management. It operates from Possibilities and probabilities a building he renovated. Sparks of business activity The lower section of Bridge alight throughout the lower west Street has seen better times. Local side, and only time will tell fine furniture maker John Widdi- whether and when the tinder comb Co., school and office furni- breaks into a wildfire. ture manufacturer American Seat- Companies such as Spectrum ing Co., Oliver Products Co. and a Health and Open Systems Tech- dozen other businesses provided nologies continue to expand their Business Computers HealthEngineering/Technology Education & Human Services steady employment decades ago presence, and Rockford intends to for largely Eastern European im- bring 170 fresh faces to the area migrants or first-generation Amer- when its headquarters opens. Pop- When you have a position to fill, you want someone who’s qualified and ready to hit icans who could walk to work. ular west side hangouts such as O’- the ground running. Baker College’s HireQualified® can help. Our candidates are highly Memberships at nearby Catholic Toole’s, Monte’s, Little Mexico Cafe trained in very specific areas by instructors who are working professionals. They know churches St. Adalbert, St. Mary and Maggie’s Kitchen continue to and St. James swelled with the draw clientele, helped in good what’s needed in their industries and teach practical experience over theory. The service baby boom generation, prompting measure by their owners’ devotion — is free the result is just the person you are looking for. all three parishes to build or ex- to their businesses. To learn more about how we can help you find the best candidate for your needs, or to pand elementary schools. “We’ve already seen the west schedule a meeting at your place of business, visit HireQualified.com. But by the early 2000s, areas of side start to take off with (the Bridge Street had fallen on hard downtown campus of) Grand Valley times as the opportunities of the State University and everything that lower west side neighborhoods Bob Israels has done here,” said HireQualified.com Free recruiting services from evaporated. Many of the neighbor- Behm, referring to an estimated America’s leading career college. hood factories shrank dramatical- $80 million worth of development ly or closed, such as Widdicomb, that Israels orchestrated before X6405HQ Miller Products and the Drueke Game 2009. “Everything in the middle ap- Co. More owner-occupied houses pears to have been still left for de- became rental properties, and the velopment.” three Catholic parishes closed Today, for-sale signs grace a their elementary schools. number of Israels’ former projects, Over the years, islands of rede- among them the Enterprise Build- velopment have popped up in the ing, the Furniture Campus Build- area — notably the American Seat- ing, the John Widdicomb Building, ing Park/Clark Place, the creation of the Aslan Building and the former the John Widdicomb Trade Center by “Other Store” of Israels — build- Israels and the renovation of the ings that conservatively total former Drueke building by Open more than 350,000 square feet of Systems Technologies in 2010. space. But prosperity has somewhat But if development takes off in eluded the four-block section on the region, even the buildings ren- the north side of Bridge Street ovated by Israels will benefit, near downtown. Behm said. That may change in short order “I think that, all the sudden, you with the arrival of Rockford, will see (Israels) office buildings which has a track record of attract- that have vacant space become a ing partners with deep pockets to lot more attractive,” he said. shoulder the financing burden of The area isn’t without its chal- projects it shepherds. lenges. Neighborhoods are While he said he wasn’t privy to cramped with wooden homes most Rockford’s plans or timeline, likely built when Calvin Coolidge Gutowski thinks the company was president — or earlier. Crime probably needs to complete its rates are higher than other areas own headquarters before it tack- of the west side. But Behm thinks les Bridge Street retail projects. In that as businesses start to reclaim addition to the Gateway parcel, and develop properties around Rockford went on a buying spree Bridge Street, the crime rates will this summer that totaled $1.15 mil- drop. Reliable, modernized grid lion to acquire 16 parcels on “I remember Bob Israels saying Bridge, Lexington, Seward and that the crime rates went down Stocking streets, according to city dramatically when he made all Energy is essential to the way we live, work and play. records. these changes along Seward, and The third time may be the as businesses moved farther and ITC operates, builds and maintains the region’s electric charm for Rockford on the proper- farther south (of Bridge), the ties. Several key parcels fronting crime rate went down there,” transmission infrastructure. We’re a Michigan-based company Bridge Street that were once Behm said. owned by Luis Ramirez Sr. have With property values at a low working hard to improve electric reliability and increase electric been standing vacant for years. point, this may be a good time to Ramirez started to develop them in invest in the lower section of transmission capacity throughout the Midwest. 2005 but lost them to foreclosure in Bridge if Rockford launches a com- 2007. prehensive program, he said. The same parcels were assem- “Purchasing a property, in and bled in a development partnership of itself, isn’t going to help any- of Erhardt Construction and Is- thing,” Behm said. “But if they www.itctransco.com raels, who envisioned a grand plan were to improve it, that would be a of retail revival along the thor- wonderful thing for the west side.” oughfare in September 2009. But a Matthew Gryczan: (616) 916-8158, year later, Israels was fighting for [email protected]. Twitter: his business life when banks @mattgryczan 20130114-NEWS--0013-NAT-CCI-CD_-- 1/11/2013 11:45 AM Page 1

January 14, 2013 CRAIN’S DETROIT BUSINESS Page 13

Monthly Israel WHERE MICHIGAN DOES BUSINESS

Arotech Corp. ith a GDP in 2011 of about $242.9 billion, Is- RGIS LLC Crain’s monthly World Watch Based: Ann Arbor rael has the 40th largest economy in the Based: Auburn Hills report showcases companies Israel operations: Beit Shemesh, Tel Aviv and W world. It is recognized for products such as Israel operations: In 2007, RGIS acquired leading the way in international Dimona high-tech equipment, wood and paper, agricultural ISICS Software Systems Ltd. in Tel Aviv, the business, as well as those ex- Employees: 130 products, cement, chemicals, plastics, textiles and largest inventory company in Israel, which panding their global operations. Products: Batteries and rechargers for the Is- footwear. performs inventory services for the coun- Each World Watch Monthly raeli and U.S. militaries Israel had a 2011 unemployment rate of 5.6 per- try’s leading retail and pharmacy chains. features a different country. If Top executive: Bob Ehrlich, president and cent. According to the CIA’s World Factbook, Is- Employees: 50 (2011 figure) you know of a Michigan compa- CEO rael’s economy has recovered better than most ad- Industries served: Retail, pharmaceutical, ny that exports, manufactures vanced, comparably sized economies; natural gas trade, mass distribution abroad or has facilities abroad, fields discovered during the past two years are an Top executives: David Kagan, information email Jennette Smith, managing Assets International LLC economic bright spot, and the country is noted for a technology manager, and Asaf Cohen, presi- editor, at [email protected]. Based: Southfield resilient banking sector. dent, Europe South Central, RGIS Israel operations: Ramat, Beit Shemesh The World Bank and the International Finance Employees: Seven Committee rank Israel 41st out of 229 countries in COMING UP Products: Asset investigation terms of starting a business in the country, sixth February: United Kingdom Top executive in Israel: Avram Goldstein, when it comes to protecting investors, and 139th March: Netherlands COO when it comes to dealing with construction permits. More information: The operation helps the company gain entry to business in Europe, the country owned by master the Middle East and North Africa. franchise Elgad Pizza DBA Domino’s Pizza Israel, head- Belfor USA quartered in Tel Aviv. Employees: 1,250 Based: Birmingham Top executive: Yossi Elbaz, Israel operations: Tel Aviv and Haifa CEO, Domino’s Pizza Israel Employees: 50 More information: Domino’s Products: Commercial and residential Pizza Israel plans to have 50 restoration services, document and data re- stores by the end of 2013. covery, mold remediation Top executive: Nimrod Vered, CEO, Belfor Is- rael Ford Motor Co. More information: Belfor Israel’s technicians Based: Dearborn were on-site in New York City at a large Israel operations: Delek Motors medical facility following Superstorm is the exclusive importer and Sandy. distributor of Ford and Lin- coln brand vehicles in Israel. Cascade Engineering Inc. Delek has six sales outlets HBR Labs developers work at the Haifa office. Tomcars come together in Givat HaShlosha. and 60 service facilities Based: Grand throughout the country. HBR Labs LLC Rapids Employees: Ford has one; Delek has 330. Tomcar North America Israel opera- Based: West Bloomfield Products: Ford Fiesta, Focus, Mondeo, S- Based: Rochester Hills and tions: Has a Israel operations: Haifa and Haifa Max, Galaxy, Edge, Explorer, Transit Con- Phoenix, Ariz. 50-50 joint Ra’anana nect, Transit and F-350 models Tel Aviv Israel operations: Tomcar venture with Employees: Eight Top executives: Dan Bielik, Israel market Bnei Brak North America’s controlling Be’er Sheva- Products: Web-based platform manager; Hal Feder, director of Ford export Herzliya interest is owned by Yoram based Dolav that combines co-browsing operations Rishon LeZion Zarchi of the founding com- Plastic Prod- — the joint navigation More information: The Ford Focus was the Beit Shemesh Ra’anana pany Tomcar Israel Ltd. in Gi- ucts called Cascade has a joint partnership through the Internet by two top-selling nameplate in Israel in 2012, and vat HaShlosha. Decade Prod- facility in Be’er Sheva. or more people accessing the Ford is the No. 2 brand in the market. Delek Employees: 20 ucts that same Web pages at the same Givat HaShlosha Motors has been representing Ford in Israel Products: Tomcar vehicles, manufactures plastic products for Israeli time — content sharing and Be’er Sheva since 1999. parts and services markets and for export to Europe, Asia, audio/video capabilities. Top executives: Ram Zarchi, Africa and the Middle East. Top executive: Yuval Moed, Dimona CMO; David Leo, CFO and Employees: 25 General Motors Co. president and CEO managing member, Tomcar Products: Plastic pallets and large contain- More information: Help organi- Based: Detroit North America; Yoram ers zations address needs of ISRAEL Israel operations: GM’s wholly owned sub- Zarchi, Tomcar Israel Ltd. Top executive: Ralph Harris, president and sidiary Advanced Technical Center Israel in qualified customers for time- CEO, Decade Products sensitive information and in- Herzliya has about 30 scientists and re- Sources: Crain’s research, stantaneous completion of searchers working on vehicle electronics, Michigan Israel Business complex online transactions. Domino’s Pizza Inc. controls and software. GM sales operations Bridge and CIA World Fact- in Israel are run through the joint venture book. Based: Ann Arbor Universal Motors Israel, the distributor of Israel operations: Has 35 stores throughout Perrigo Co. Compiled by Ryan Kelly Cadillac, Buick, Chevrolet and Isuzu and Ryan Felton brands. Rishon LeZion-based Based: Allegan Universal Motors has a net- Israel operations: Perrigo Israel Pharmaceuti- work of 18 dealers and 60 ser- cals Ltd. is headquartered in Bnei Brak and vice stations throughout Is- has prescription drug and rael, along with a vehicle pharmaceutical ingredient inspection and delivery center production operations there. and a parts distribution cen- Employees: 1,200 ter. Products: Prescription drugs, Employees: 420 active pharmaceutical ingre- Top executives: Ray Schmit, GM dients and medical devices marketing manager for Israel; Top executive: Itzhak Maayan, David Iny, chairman of Univer- CFO, Perrigo Israel Pharma- sal Motors ceuticals. More information: GM estab- More information: Perrigo U.S. lished a joint venture in Israel acquired Israel’s second- in 1995 to screen advanced and largest generic pharmaceuti- nontraditional innovations for cal company, Agis Industries, Diners eat at a Domino’s in Tel Aviv. the auto industry. in 2004. Perrigo makes pharmaceuticals in Bnei Brak. 20130114-NEWS--0014-NAT-CCI-CD_-- 1/11/2013 11:55 AM Page 1

Page 14 CRAIN’S DETROIT BUSINESS January 14, 2013

People

Ⅲ Boris Gavric was recently appointed to the newly created position of executive director of process and performance improvement at Doctors’ Hospital of Michigan in Gavric Pontiac. Ⅲ Kathy Pawlicki, an administrator at Beaumont Health System’s Royal Oak Hospital, received the American Society of Health System-Pharmacists Distinguished Service Award for the Section of Pharmacy Practice Managers at the 47th ASHP Midyear Clinical Meeting and Exhibition in Las Vegas. Ⅲ Leah Cecil, D.O., Beaumont Sterling Heights Family Medicine Center, was named the Michigan Osteopathic Association 2012 Outstanding Resident of the Year. Ⅲ Christopher Milback, M.D., chief of the department of family medicine at Beaumont Hospital, Troy, was elected to the board of directors at the Oakland County Medical Society. Ⅲ University of Michigan cardiac ISTOCKPHOTO.COM surgeon Richard Prager, M.D., was named president-elect of the Southern Thoracic Surgical Association. Ⅲ Ananias Diokno, M.D., executive vice president and chief medical officer, Beaumont Health System, received the Asian Pacific American Chamber of Commerce Salute to Excellence Award. Pro and CON Ⅲ Ben Robinson, president and CEO of Rose Hill Center in Holly, a residential rehabilitation facility for adults with mental illness, has been Should Michigan’s certificate of need hurdles be rearranged? appointed to the Michigan Department of Community Health’s BY CHRIS GAUTZ sored by Sen. Mike Kowall, R-White newly established Behavioral Health CAPITOL CORRESPONDENT Lake Township last year, originally Advisory Council. I don’t think would have done. Ⅲ Gail Zobl hen McLaren Health Care’s attempt to “ The bill would have allowed has been named go through the regulatory process to throwing the McLaren to build a new hospital director of W build a new hospital in Oakland in Independence Township. When nursing at County failed last year, the Flint-based whole thing out is Kowall did not have support for it, BrightStar Care hospital sought a special carve-out in the he stripped out the provision af- of Grosse state Legislature, but that failed as well the right thing ... fecting McLaren, but the bill did Pointe/ and died in the lame-duck session. not move much further in the leg- Southeast But McLaren’s quest did succeed in (but) there has to Macomb. Zobl, islative process and died during sparking a discussion about whether the the lame-duck session without ac- an R.N., most Michigan certificate of need process be something done recently worked tion. needs to be revised. Zobl at St. John Kowall said he has not begun to According to the National Conference of to let these Hospital and Medical Center and draft a similar bill to be introduced in Port Huron Hospital. State Legislatures, there are about 36 the next legislative session, as there are states with some form of a CON process. hospitals grow and do Ⅲ Herb Aronow, M.D., MPH, a other economic development projects he Michigan officials say the process is cardiologist at Michigan Heart of St. is working on. Attempts to reach a repre- meant to balance cost, access and the what they need to do. Joseph Mercy Ann Arbor, has been sentative from McLaren were also un- quality of health care in Michigan. Op- ” elected as the next Michigan Sen. Mike Kowall, R-White Lake Township successful. “The McLaren piece is con- governor to the American College of ponents say it helps to maintain monop- troversial — no doubt about it,” Kowall Cardiology. He will serve as olies, limit competition and doesn’t nec- said. governor-elect for one beginning in essarily control costs. McLaren’s quest But Kowall said there are some parts March and then assume the three- Gov. Rick Snyder said a major review of the CON process that definitely need year governorship in March 2014. In of the certificate of need process was not Snyder said he doesn’t encourage any- to be examined. that capacity, he will concurrently something his administration spent a lot one going around the process or there “I don’t think throwing the whole serve as president of the Michigan of time looking at these past two years, being exceptions to the CON process for thing out is the right thing to do,” he chapter of the ACC. Aronow is interim even as the McLaren bill worked its way unique situations. said. “There has to be some semblance of medical director of the cardiac through the Senate. “I didn’t really see value in having the order.” catheterization lab at St. Joseph But some industry leaders and legisla- Legislature doing special carve-outs Some of those changes could relate to Mercy Ann Arbor and director of the tors say the issue needs to be moved to from the process,” Snyder said. Michigan Heart comprehensive the forefront. That is exactly what SB 1269, spon- See CON, Page 15 vascular program. 20130114-NEWS--0015-NAT-CCI-CD_-- 1/11/2013 11:44 AM Page 1

January 14, 2013 CRAIN’S DETROIT BUSINESS Page 15 Health Care CON: Michigan’s certificate of need process generates debate ■ From Page 14 the CON process surrounding ser- bed transfers are restricted to time hospitals have sought special tests, Jackson said. vices and equipment, not just hos- within two miles of an existing exemptions. Two other Detroit- “Certificate of need not only pital beds, he said. hospital. Kowall’s bill would have based health systems accom- I think the process helps control capital costs but uti- “There has to be something done established an eight-mile radius plished the same CON bypass ma- “ lization of services,” he said. to let these hospitals grow and do for relocation. neuver in 2002. we have in Michigan Jackson said the free-market ar- what they need to do,” Kowall said. The Certificate of Need Commis- During a legislative lame-duck gument — that those businesses or During the debate over the is- sion had previously voted 11-0 session, Henry Ford Health System works very well. services will ultimately close if sue, interested parties said their against McLaren’s plan for the and St. John Providence Health Sys- ” there are no customers or they are way saves costs, but Kowall said new hospital, and the Michigan De- tem won special legislative ap- Bret Jackson, not providing a quality and afford- he has still not seen data. Those op- partment of Community Health also proval to transfer beds from exist- Economic Alliance for Michigan able service — doesn’t fly. posing changes are largely wor- rejected McLaren’s CON applica- ing hospitals to new hospitals in “Health care doesn’t operate in a ried about market share and tion in June. Oakland County. changes are being considered. free market,” he said. “About half rarely mention patient care when “There has to be a demonstrated In 2008, 200-bed St. John’s Provi- “We would be hesitant to change of patient care is paid for by the making their point, he said. need,” said Angela Minicuci, pub- dence Park Hospital in Novi opened, it in a way that would mean health government through Medicare “Show me the numbers,” he lic information officer for the followed by 300-bed Henry Ford West care costs would go up more than and Medicaid.” said. “I’m a numbers guy.” MDCH. “There was not additional Bloomfield Hospital in 2009. they already are,” Jackson said. Patients, unless they are going As part of any future discussion, bed need.” “Any serious changes are mostly in for an elective procedure, typi- Kowall said he wants to learn James Falahee Jr., CON Com- to let someone get something they cally don’t shop around, they just more about what other states have mission chair- Pro status quo can’t get now.” go to their doctor and do what is done. When McLaren was working man, said his “I think the process we have in Jackson said his group will fight recommended. to win support for Kowall’s bill, it commission Michigan works very well,” said against those types of changes, “We trust the person giving us testified before his committee and does not vote on Bret Jackson, executive director of whether they are for new facilities the diagnosis,” he said. presented a research paper from whether to re- the Economic Alliance for Michigan, or for services as well. Multiple messages left with the Gary Wolfram, a professor at Hills- ject or support which opposes the proposed Other states with less-stringent Michigan State Medical Society, dale College and president of Hills- an application, McLaren hospital. He said the CON policies or no such policy at which has been supportive of an dale Policy Group Ltd. rather it creates CON process helps hold down med- all have an abundance of expen- overhaul of the CON process, were Wolfram said the CON process and approves ical costs. sive medical equipment, which not returned. will “result in the supply of hospi- the rules by He said he is open to talking leads to its owners of them having Chris Gautz: (517) 403-4403, tal beds being determined through which the about possible changes, but urges to justify having it and sometimes [email protected]. Twitter: Falahee the political process rather than MDCH makes caution on exactly what types of having patients take unnecessary @chrisgautz through the market process, with its decisions. all the attendant problems,” Wol- He said that is a rarity among fram wrote. “In particular, it will CON commissions nationwide. hamper the response of supply of Falahee also said Michigan has medical services to changes in con- one of the larger CON commis- sumer demand and result in over- sions, with 11 members, and also supply of hospital beds in some ar- has one of the strongest conflict of eas and undersupply in others.” interest statements in the country. While Falahee is a Republican and represents a hospital, the Michigan’s system board takes great care not to let Also as part of McLaren’s testi- partisanship or the profession it mony was a research paper from represents get in the way of setting David Dobrzykowski, who at the policy. Falahee serves as the senior time was an assistant professor of vice president for legal and legisla- operations and supply chain man- tive affairs for the Kalamazoo- agement at Eastern Michigan Univer- based Bronson Healthcare Group. sity. And the commission is open to His study found that the CON changes, he said, as every three does not have a substantial effect years standards are looked at to at the state level in managing see if there have been technologi- costs, demand or capacity. He also cal advancements or quality issues found that hospitals in CON states that have arisen that would war- have better financial performance, rant a change. larger sizes and higher volumes, “They are not set in stone by any but access to care may be more means,” Falahee said. constrained. The commission, he said, is re- McLaren wanted permission to ceptive to meeting with the MDCH move 200 hospital beds from its and/or legislators to talk about dif- Pontiac hospital to the proposed ferent perceptions of the CON site in Independence Township. process and possible changes. The Under current CON regulations, McLaren request was not the first

CON Roundup

The following were selected fil- cancer program. ings and decisions Dec. 1-31: Synergy Spine and Orthopedic Letters of intent Surgery Center, Warren: Create a St. Joseph Mercy Oakland, Pon- free-standing surgical outpatient tiac: Replace a third-floor cardiac facility with two operating rooms, catheterization lab, $2 million. $5.6 million. Botsford Hospital, Farmington Applications received Hills: Renovate 99,545 square feet St. Joseph’s Healthcare Center, of public and clinical areas on five Hamtramck: Transfer 27 licensed floors of the hospital, $7.5 million. beds from St. Anne’s Convalescent Decisions approved Center to St. Joseph’s Healthcare Marycrest Manor, Livonia: Trini- Center, $29.7 million. ty Senior Living Communities to ac- Farmington Health Care Center, quire Marycrest Manor, a 44,000- Farmington: PVR-Farmington LLC square-foot skilled nursing facility will acquire the land, building and licensed for 55 beds, $500,000. equipment of Farmington Health Chelsea Community Hospital, Care Center, a 124-bed skilled nurs- Chelsea: Construct a two-story ad- ing facility. PVR-Farmington will dition, 9,610 square feet of new con- then lease the property to Farming- struction and 7,050 square feet of ton Nursing LLC, $7.7 million. renovation that will support a new — Ryan Kelly 20130114-NEWS--0016-NAT-CCI-CD_-- 1/11/2013 11:54 AM Page 1

Page 16 CRAIN’S DETROIT BUSINESS January 14, 2013 PEOPLE BUSINESS DIARY CONSULTING INFORMATION MEDIA CONTRACTS Jesse Murray to director, Michigan of- TECHNOLOGY Kacey Anderson IN THE SPOTLIGHT Gentherm Inc., Northville, a supplier fice, Rightpoint, Novi, from senior of thermoelectric systems for vehi- Mark Meyer to ex- from events coor- Secure-24, Southfield, a provider manager and application develop- dinator, Crain’s cles, and Intercoil International LLC, ecutive vice presi- of cloud-based software services ment practice lead, Sogeti, USA LLC, Detroit Business, Dubai, a sleep products manufacturer dent of sales and for companies, named Shawn Farmington Hills. marketing, Se- to assistant and retailer, signed an agreement to cure-24, South- events manager. Peralta its launch a line of heated and cooled ENGINEERING field, from region- first chief memory foam mattress products in financial the United Arab Emirates this year. William King to president, Ultra Elec- al director of NONPROFITS managed applica- officer and Mars Advertising Inc., Southfield, tronics Adaptive Materials Inc., Ann Joseph Licavoli to tions for the West- Michael partnered with UnitedHealthcare Ser- Arbor, from vice president, undersea manager of the ern United States, Jennings co- vices Inc., Southfield, to design and products, UnderSea Sensor Systems Meyer Michigan Pre- AT&T. chief open more than 30 MedicareStore Inc., Ann Arbor. seed Capital Anderson executive sites across the United States. Fund, Ann Arbor officer in a Spark, from senior director of opera- The Woodward Avenue Action Associ- newly ation, Royal Oak, chose Parsons tions, marketing, sales and business expanded development, Ramsoft Systems Inc., Brinckerhoff, New York City, with an Southfield. Also, Jake Albers to man- Peralta position. office in Detroit, to lead development ager of the Spark East business incu- Among of the Woodward Avenue Complete bator, from community development Peralta’s Streets Master Plan. coordinator, Ypsilanti Downtown De- recent roles velopment Authority; and Valerie were chief EXPANSIONS Christofferson to senior business de- financial Michigan Rehabilitation Specialists velopment manager from business officer of LLC, Hamburg, opened an office at development manager. American 17783 Haggerty Road, Northville. Web- Andrea Johnson to national sales man- Laser site: www.mrspt.com. ager, Detroit Metro Convention & Visi- Skincare, Hickey & Associates LLC, Minneapo- tors Bureau, Detroit, from sales account Farmington lis, a site location and public/private executive, The Henry, Autograph Col- Hills, and advisory firm, opened an office at 243 lection, Marriott, Dearborn. chief financial W. Congress St., Detroit. Telephone: Jennings Barbara Jean Patton to area develop- officer for TNG (313) 432-0290. Website: www.hick ment director, UNCF, Detroit, from Worldwide, New Hudson, a eyandassociates.com. chief service officer, mayor’s office, distributor of professional beauty Detroit. products. JOINT VENTURES Peralta, 50, is a CPA and earned ForeSee Results Inc., Ann Arbor, a RETAIL a bachelor’s degree in business customer experience analytics compa- Kari Knowlton to administration from Wayne State ny, partnered with Branding Brand, director of busi- University. Pittsburgh, a platform that powers ness develop- Jennings, 47, had been CEO of mobile commerce sites and apps. ment, Avanti LifeCycle Support, Santa Cruz, Press Inc., De- Calif., a firm that invests in MOVES troit, from direc- software companies. Blue Filament Intellectual Property LLC tor of business He studied networking from 401 S. Old Woodward Ave. to 450 development, Pa- N. Old Woodward Ave., Birmingham. pyrus-Recycled engineering and management at the University of California, Santa Telephone: (248) 731-0046. Website: Greetings, Chica- www.bluefilamentlaw.com. go. Cruz. Knowlton Meritor Inc., Troy, plans to move production operations at its remanufactur- ing plant in Mississauga, Ontario, to the company’s Plainfield, Ind., remanu- facturing facility. Mascot Canadian customer service and support will move to Meritor’s Brampton, Ontario, facility. Website: www.meritor.com. NEW PRODUCTS Visteon Corp., Van Buren Township, launched its reconfigurable instru- ment cluster with illuminated me- chanical gauge rings, on the 2013 Lin- coln MKZ in North America. Website: www.visteon.com. PROUDTO BE IN Carhartt Inc. launched its Force line of shirts and four new rain jackets, including the Bad Axe Jacket, which features Carhartt’s most advanced Storm Defender waterproof breathable technology. Website: www.carhartt.com. ThumbsUpSilver.com, Ann Arbor, released the Bruce Lee Year of the Drag- on silver proof round. Production is limited to 5,000 pieces. NEW SERVICES Domino’s Pizza Inc., Ann Arbor, launched a Spanish-language ordering DETROIT app for smartphones. Website: www.dominos.com. ProQuest LLC, Ann Arbor, is providing the Early Modern OCR Project (eMOP) When you’re serious about intellectual property law … at Texas A&M University with access to page images from the Early English Use Brinks, now in Detroit. Brinks is a recognized national leader in Books Online and newcomer Early Eu- ropean Books. The project will turn intellectual property law. With its new Detroit Office located in the same works from the 15th-17th centuries into fully searchable digital docu- building as a U.S. Patent and Trademark Office, domestic ments. Website: www.proquest.com. and international clients can participate in on-site patent Michigan State University launched an online master certificate in strate- examination and administrative trial proceedings. gic human resource management. Website: www.michiganstateuniver- sityonline.com. Serving innovators in Michigan and beyond: Fifth Third Bank, Southfield, introduced Access 360o, a reloadable pre- Detroit Ofﬁ ce Ann Arbor Ofﬁ ce paid card. Website: www.53.com. U.S. Patent Suite 1775 Suite 200 1st Source Servall, Center Line, an ap- No. 129,843 pliance parts distributor, launched a Steam engine 300 River Place Drive 524 South Main Street Detroit, MI 48207 Ann Arbor, MI 48104 digital marketing services division, lubricator by Profit Partners Solutions, to assist Detroit inventor 313.393.5400 734.302.6000 small businesses in the appliance Elijah J. McCoy, parts and services industry. Tele- granted in 1872. Chicago | Ann Arbor | Detroit | Indianapolis | Research Triangle Park Area | Salt Lake City | Washington, DC | www.usebrinks.com phone: (800) 519-7800; website: www.profitpartnersolutions.com. 20130114-NEWS--0017-NAT-CCI-CD_-- 1/11/2013 4:57 PM Page 1

January 14, 2013 CRAIN’S DETROIT BUSINESS Page 17

CALENDAR TUESDAY Young Professionals Mixer. 5-7 p.m. website: www.imamichigan.org/an website: www.detroitchamber.com. BREAKFAST WITH INFORUM Auburn Hills Chamber of Commerce. narbor/index.html. Annual Heritage Luncheon. 11:30 a.m.- JAN. 15 Networking. Applebee’s, Auburn 2:15 p.m. Jan. 23. Sterling Heights Re- Hills. $10. Contact: Rachael Jay, Entrepreneurial Initiative of Southeast AND SERGIO MARCHIONNE gional Chamber. With Wayne [email protected]; web- Michigan Entrepreneur’s Forum. 8- UPCOMING EVENTS Oehmke, chamber president; Jacque- Join Inforum for its 11th Annual site: www.auburnhillschamber.com. 11:30 a.m. Automation Alley. Listen to Auto Show Breakfast 7:30-9:30 Small Business: Unlocked — Lessons line Noonan, mayor, Utica; Richard up-and-coming entrepreneurs present a.m. Jan. 18, with Sergio Over Lunch. 11 a.m.-1 p.m. Jan. 23. De- Notte, mayor, Sterling Heights; and their business plans, then join in the Marchionne, Network with Financial Professionals. troit Regional Chamber. Learn how to Richard Stathakis, supervisor, Shelby discussion. Automation Alley head- chairman and 5:30-8 p.m. Institute of Management position your message to be heard by Township. Cherry Creek Golf Club, quarters, Troy. Free. Contact: Au- CEO, Chrysler Accountants–Ann Arbor Chapter. your target audience. With Charlie Shelby Township. $30 chamber mem- tomation Alley Resource Center, (800) Group LLC, and With Vince Nystrom, vice president, Wollburg, founding partner, Curve De- bers preregistered, $35 at the door; $40 427-5100; email: info@automation CEO, Fiat S.p.A. strategic accounts, Michigan Econom- troit. Emagine Royal Oak. $20 cham- nonmembers. Contact: Lori Cline, alley.com; website: www.automation The event ic Development Corp. Carlyle Grill, ber members. $50 nonmembers. Con- (586) 731-5400, ext. 11; email: alley.com. takes place at Ann Arbor. $25. Contact: (734) 222- tact: Emily Doerr, (313) 596-0377; [email protected]; website: Capital Raise Meetup. 9:30-11 a.m. Ma- the Detroit 6681; email: [email protected]; email: [email protected]; www.shrcci.com. comb-OU INCubator. Targeting startup Marriott and early-stage growth-based business- Renaissance es seeking funding. With Mike Center, Detroit, Brennan, business commercialization and is JOB and capital investment adviser, Ma- Marchionne sponsored by comb-OU INCubator. Velocity Collabo- REAL ESTATE Chrysler and KPMG LLP. ration Center, Sterling Heights. Free. Cost is $40 for Inforum members, FRONT Contact: Joan Carleton, (586) 884-9324; email: [email protected]; website: $55 for nonmembers, or $700 to OFFICE SPACE www.oakland.edu/view_news.aspx?si sponsor a table. POSITIONS AVAILABLE d=213&nid=9521. For ticket information, contact Connie Thompson, (313) QA Lead Automation Analyst for CDI Corp. HISTORIC MCNICHOLS OFFICE CENTER In Rochester, MI. Duties: Execute test procedures 578.3846, email her at for web-based client portals, databases, reports, & WEDNESDAY [email protected], “Detroit’s Professional Office Building ” workflow mgmt systems, inc’l thoroughly testing soft- JAN. 16 or visit Inforum’s website, ware packages & integrated systems w/ QTP tools to www.inforummichigan.org. ensure proper operation. Identify, document, & clas- NOW LEASING sify software defects so that QA metrics are accurate Improving Your Trade Show Perfor- & actionable. Conduct unit, regression, integration, mance. 11:30 a.m.-1 p.m. Automation OFFICE SPACE & performance tests, inc’l creating & maintaining Alley. With Anita THURSDAY sprint test plans & test environments as req’d. Par- Mitzel, president, ticipate in test planning dev. activities, inc’l coor. cre- JAN. 17 400sqft-1200sqft ation of system test plans, test cases, & test execu- GraphiColor Ex- tions w/ test teams. Coor. defect validation & report- hibits. Automa- The Autoweek Design Forum. 8 a.m.-2 ing w/ test teams & assist dev. teams in recreating tion Alley head- 313.347.8680 defects. Monitor product quality throughout product p.m. Recognition and celebration of quarters, Troy. release life cycles, & develop & institute quality proc- design as the ultimate differentiating ess improvements. Instruct software QA colleagues $20 member pre- [email protected] factor that drives consumers’ interest re QTP tools & methodologies. Req. Bach Deg in registration; $30 and purchase decisions, automotive Comp Sci, IT, or science, eng’g, or math discipline; 5 member at the and otherwise. A. Alfred Taubman yrs exp in a software test coor. pos’n. Exp in: dev. door; $40 non- QTP test automation frameworks w/ re-usable test Center, College for Creative Studies. WATERFRONT PROPERTY member preregis- objects & actions for functional & front-end testing; $175. 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Page 18 CRAIN’S DETROIT BUSINESS January 14, 2013 Huron: Fund closes $100M over goal ■ From Page 3 firms are struggling to hit their million in 2000, raised a second fund Advisors. fundraising targets. Those firms of $185 million in 2005 and closed on “That’s not true for a lot of pri- that have consistently stuck to a third fund of $350 million as the vate equity funds. As they get big- their knitting and produced good recession was hitting in 2008. ger, they tend to get less focused returns are able to exceed their “Huron’s last fund was closed at and they get worse returns. But targets. The Huron guys have done a very difficult point in the market with Huron, the longer they’re both of those things.” cycle. It was a big win for them be- around, the better they do. They’ve Year in and year out, Huron ing able to close that fund, and really built a good franchise.” Capital is consistently the most ac- they have done an outstanding job Two new investors were tive private equity firm in the of investing that capital in high- Guardian Life Insurance Co. of Ameri- state. It bought five companies in quality companies during tough ca of New York City and the Univer- 2012, recapitalized one of its com- times,” said Garrett Kahehann, a sity of Michigan, whose board of re- panies and sold one. Demkowicz Questor alumnus who is a partner gents approved a $15 million said it has two deals pending. in BlackEagle Partners LLC, a Bloom- investment in December from the Last April, Huron was honored field Hills-based private equity school’s $8 billion endowment. as dealmaker of the year at the an- firm. The endowment has been criti- nual Crain’s M&A awards. Huron “What impressed me about (the cized in the past by some local ven- was also dealmaker of the year in third fund) was the diversity of the ture capitalists and private equity 2007 and runner-up in 2008 and end markets the companies in that firms for not investing in Michi- 2009. fund serve. For any institutional gan investment firms. In 2010, New York-based M&A Ad- investor, this is the diversity you Huron has hired four invest- visor, a national trade association, are looking for,” he said. “Bottom ment professionals to support the named Huron as its private equity line: There is no better segment of new fund, which also required an firm of the year. the private equity space than the expansion of its headquarters in Past limited partners who rein- lower middle market, and Huron the Guardian Building. Demkow- vested in this fund include the has a long history of success in icz said he will likely hire two state of Michigan’s retirement sys- this segment.” more this year. tem; Vlasic Investments LLC of “This is the third fund we’re in- The firm employs one adminis- Bloomfield Hills; RCP Advisors of vested in. We’ve made a lot of mon- trative assistant and 19 invest- Chicago; DuPont Capital Manage- ey from their funds, and we come ment pros. ment of Wilmington, Del.; and AlpIn- back for more because they get bet- Tom Henderson: (313) 446-0337, vest Partners Inc. of New York City. ter over time,” said Charles Hueb- [email protected]. Twitter: Huron raised its first fund of $72 ner, managing principal for RCP @tomhenderson2

Boxing: Franchising workout clubs ■ From Page 3 Rapids this year to show potential Danny Campbell and Tom Lyons, relatively low overhead. Each franchisees the operation. founder and president of Overland store has about 10 part-time and Rotche has a background in food Park, Kan.-based Global Connec- three full-time employees. and service-oriented franchise tions Inc., to inquire about becom- “One of the things we’ve been fo- ownership and management, al- ing a franchisee. cused on is sourcing the right real The firm worth though his history as a high school But Rotche changed his mind, estate firm — they’re the ones football player and a passion for he said, after he talked with them helping us to find locations for our listening to fitness made the career change ap- and learned they didn’t have fran- franchisees,” he said. pealing, he said. chise experience on their manage- Title Boxing has also worked to is the firm that “Franchising was just my foun- ment team. identify who its members are — 70 SM dation. My true passion has al- “They said, ‘You’re right,’ ” percent are female — and to sur- listens to you. ways been health and wellness,” Rotche said. “ ‘What would it take vey them as to why they are at- Rotche said. for you to come on and be our part- tracted to the brand so it can target Talk to Foley. We’re listening.SM TBC has strong brand aware- ner and our franchise guy?’ ” its marketing, Rotche said. ness given its affiliation with Rotche now owns a 25 percent According to the International Lenexa, Kan.-based Title Boxing and share of TBC International and op- Health, Racquet & Sportsclub As- entry costs of less than $150,000, erates as president of the company sociation, membership was evenly Rotche said. from a renovated office in a turn- split between the sexes in 2011 For 170 years, Foley has made it our mission to find Franchisees are required to pay of-the-century loft on Main Street with 25.9 million men and 25.5 mil- out exactly what our clients want and deliver it. So an initial franchise fee of $35,000 for in Ann Arbor. lion women. when our Detroit clients asked for local access to one club or $29,000 per franchise The boxing workout regimen is Title Boxing Club has franchises agreement if they sign up to open newer on the fitness scene. It’s not in Denver, Dallas, St. Louis, the strength of a national law firm, Foley recruited three or more, according to Title specifically broken out among the Columbus and Cincinnati, across the city’s top talent to establish our Detroit office and Boxing Club’s franchise circular. most popular industry segments California and, as of early this Franchisees have the option of like kick-boxing, which accounts year, Arizona, Rotche said. provide trusted local advisors who could leverage purchasing or leasing equipment for about 3 percent of all fitness The boxing clubs have been our national resources. It’s one more reason Foley and are required to invest $5,000 per club members in the U.S., listed in growing with between 750 and has been recognized as one of the elite BTI Client month in local advertising for their the International Health, Racquet & 1,000 members their first year, clubs, according to the agreement. Sportsclub Association’s 2012 Pro- Rotche said. He projects each club Service 30 for nine of the past 10 years in a survey* Additionally, they must pay 1 files of Success report for the in- will see $750,000 in revenue the of Fortune 1000 corporate counsel. percent of gross revenue to TBC dustry. first year. International, which uses it for Fitness formats do come and go, Title Boxing Club International marketing. Meredith Poppler, vice president had revenue of nearly $20 million Learn more about how Foley can add value to your business. Contact Rotche first met Title Boxing of industry growth for the associa- last year, up from about $5 million Detroit Office Managing Partner Daljit S. Doogal at [email protected]. Club’s founders during the Interna- tion, said in an email. in 2011, he said. tional Franchise Association’s awards About 10 years ago, group exer- Fitness owners say the power of Foley.com ceremony last February in Orlan- cise was dead, but now it’s back group workouts can be a good moti- do, Fla. Rotche had been named again as club operators and mem- vator to attracting new customers. 2012 Entrepreneur of the Year in bers are leveraging the social as- “Misery likes company,” said recognition of his 20-year franchis- pect of exercise, she said. Michael Knight, owner of West ing career spanning positions on “Boxing will probably never Bloomfield-based Art of Strength, the corporate side of Domino’s Pizza reach the level of popularity that which also offers group boxing Inc. and franchising positions at other fads have reached, but it’s classes. #5*$MJFOU4FSWJDF"5FBN 5IF#5*$POTVMUJOH(SPVQ 8FMMFTMFZ ." Krispy Kreme, Belfor and two compa- been around forever,” Poppler said. “If you’re training one-on-one, nies he founded, Ductz International “And as more people realize that it you whine, you cry. ... If there’s

#0450/t#3644&-4t$)*$"(0t%&530*5t+"$,40/7*--&t-04"/(&-&4 LLC and Hoodz International LLC. can be a great full body workout (several) people, you’re being held ."%*40/t.*".*t.*-8"6,&&t/&8:03,t03-"/%0t4"$3".&/50 Rotche was looking for his next not just for prizefighters, it will accountable by the people in that 4"/%*&(0t4"/%*&(0%&-."3t4"/'3"/$*4$0t4)"/()"*t4*-*$0/7"--&: challenge, had heard about the Ti- continue to grow in popularity.” group.” 5"--")"44&&t5".1"t50,:0t8"4)*/(50/ %$ tle Boxing Club franchise and Rotche said franchisees can Sherri Welch: (313) 446-1694, ª'PMFZ-BSEOFS--1t"UUPSOFZ"EWFSUJTFNFOUt1SJPSSFTVMUTEPOPUHVBSBOUFFBTJNJMBSPVUDPNF sought out its founders, retired break into local fitness markets [email protected]. Twitter: /$MBSL4USFFU 4VJUF $IJDBHP *-tt professional boxer and promoter with quick membership sales and @sherriwelch 20130114-NEWS--0019-NAT-CCI-CD_-- 1/11/2013 5:44 PM Page 1

January 14, 2013 CRAIN’S DETROIT BUSINESS Page 19 Stadiums: Answering data demand ■ From Page 3 a deal with AT&T at Joe Louis Are- provide wireless coverage in and na, are seeking better connectivity PHONE NUMBERS around the stadium, Verizon said. while planning for a new arena. The upgrades included approxi- U.S. wireless subscribers by carrier The Detroit Tigers don’t have pub- in 2012: mately 10 miles of blown fiber-op- lic Wi-Fi at Comerica Park, and tic cable and 15 miles of copper ca- Ⅲ Verizon: 111.3 million are in talks with providers for con- bling, the carrier said. Ⅲ AT&T: 105.2 million nectivity upgrades, the team said. The new system bolsters Ford Ⅲ Sprint: 56 million Field’s DAS network put in place in Ⅲ T-Mobile: 33.2 million 2006 but which was strained by the Too much action Ⅲ TracFone Wireless: 21.3 million explosion of wireless mobile devices Why fans have problems with Ⅲ MetroPCS: 9.3 million and customer usage since then. their mobile devices at games and Ⅲ Cricket Wireless: 5.9 million “Within the last four years, concerts is simple: The buildings Ⅲ U.S. Cellular: 5.8 million we’ve seen a tremendous growth are usually not conducive to easily rate,” Emerick said. That’s be- transmitting data signals, and the Source: Crain’s research cause usage rates at least double older technology’s capacity cannot year over year — and because handle large crowds in small places. equipment and installation at the apps are “data hungry.” Making it worse: People are in- venue, and they then pay the team That appetite is both for con- creasing uploading photos and or arena a rental fee. Other cell ser- suming and creating data. videos during events, further con- vice providers pay a fee to the ini- The network setup for the 68,658 suming bandwidth. tial carrier to piggyback, he said. fans at Super Bowl XLVI in Febru- That’s because of the number of “At the end of the day, the venues ary in Indianapolis’ Lucas Oil Sta- apps running on the device. The typ- see this as the carrier’s problem. dium saw a total of 225 gigabytes of ical smartphone has the equivalent They sign the users up and have to data downloaded and 145GB up- drain, on average, of 10 ongoing cell- provide the service,” Todd said. loaded, and at its peak the network phone calls on a stadium’s system, That’s how the deal worked at supported 8,260 simultaneous con- said Rob Todd, founder of Houston- the Palace, he said. nections, according to tech journal based Molitoris Group, which handles The Palace had an older 2G sys- ArsTechnica.com. cellular and Wi- tem in place that couldn’t handle Mobile wireless access trucks Fi installation current data usage, he said, and were brought in for the game to in- projects for en- most phones today require 3G and crease load capacity. tertainment 4G networks to work. venues. Todd estimated that initial in- “Each anten- frastructure cost for a cellular in- Problem at the Joe na can only han- stallation at $2 million to $2.5 mil- Joe Louis Arena presents an un- dle a certain lion, and another $250,000 for each usual problem. amount of phone additional carrier to join. “We have a partnership with calls. Once that It takes about three months to AT&T that includes the installation quotient is install a system, he added. of a repeater inside Joe Louis Arena Todd reached, you “They reason they’re in vogue that provides a very strong cell cannot make a phone call,” he said. right now with the carriers is that service. However, Joe Louis Arena Usage and demand is only going the carriers want to put in infra- is not equipped with the to grow, which has spurred teams structure that serves the most peo- infrastructure required for dedicat- and carriers to take action. ple, and most stadiums are very in- ed, publicly accessible Wi-Fi San Francisco-based network terested in building out their service,” John Hahn, the Wings’ technology giant Cisco Systems Inc. wireless coverage,” he said. senior director of communications, last spring estimated that global The local stadiums use DAS, said via email. mobile traffic will increase eigh- which in sports arenas typically are Joe Louis has technology for 2G teenfold in the next four years, and a network of hundreds of small devices, Todd said, which means Internet-connected mobile devices nodes installed throughout the fans have almost no Internet ac- by then will exceed the number of venue to emit short-range Wi-Fi sig- cess during events. people on the planet, Sports Busi- nals originating from a main server. Because the Red Wings intend to ness Journal reported last spring. DAS is considered the cutting- move, there’s concern from mobile People expect to be able to use a edge technology, but it’s not per- providers about investing much mobile device almost anywhere, fect. Not everyone is going to get into an arena that will lose its pri- putting pressure on carriers and optimum service, and mobile de- mary tenant and could be razed. teams to enhance service. vice technology evolves rapidly. The Ilitch family has floated the “Now you look at it as an expec- “You’ve not going to be able to idea of a $650 million residential, tation of fans. It’s in planes and capture everyone. It would be cost commercial, office and entertain- airports. They expect to be con- prohibitive,” Todd said. “No sys- ment district to be anchored by a nected wherever they are,” said tem is perfect, but these systems new multi-use hockey arena some- Priya Narasimhan, founder and get you close to perfection.” where downtown. CEO of Pittsburgh-based YinzCam, The Lions faced the most com- That venue will require its own a developer of live in-venue mobile plex hurdle because they have the Wi-Fi system, Todd said. Anything apps for sports teams, including largest venue and largest crowds. installed now at Joe Louis couldn’t the Lions and Red Wings. More than 400 antennas, new be transported to a new arena, he YinzCam has seen its 36-team servers and other infrastructure said, and it likely would be out of client base begin to bolster its were installed at the 65,000-seat date anyway. venue cellular and Wi-Fi connectiv- stadium between August and De- “In the past three years, this ity capacity with new technology, cember, said Mark Emerick, Veri- technology has gone to 4G,” he especially distributed antenna sys- zon director of network operations said. “It mutates every six months tems, or DAS, Narasimhan said. in Michigan. in some way. The carriers have to “The (Wi-Fi) system can handle keep up with it to keep up with oth- tens of thousands of users,” he said. er carriers.” Local improvements The free public Wi-Fi service for Todd also noted that the wave of Todd’s Molitoris Group handled Verizon Wireless customers went improved cell and Wi-Fi technolo- the cellular and Wi-Fi upgrade last live for the Lions’ Dec. 22 game gy in the Detroit market has bene- year for the Palace and is negotiat- against the Atlanta Falcons. fits beyond games and concerts. ing with mobile carriers for a new Verizon didn’t disclose the up- “There are huge implications to system for Joe Louis Arena. grade cost, but it’s believed to have it,” he said. “It’s not just a matter In addition to sports venues, his been within the industry average of of creating a fan experience; it also firm does systems for hospitals, between $2 million and $3 million. puts Detroit on the map for people convention centers and hotels — Verizon’s cellular network at who want to bring conventions to all places with lots of people and Ford Field saw its capacity tripled town. They want the best wired plenty of Wi-Fi and cellular use. prior to Super Bowl XL in Febru- venues. Todd’s firm is hired by a team or ary 2006, he said. “There is no site in the world venue to map out and engineer a cel- “The 3G and 4G within the stadi- that has better technology. This is lular or Wi-Fi system, or both, and um are very robust,” Emerick a way for Detroit to stay ahead of then engage mobile carriers for the said. “Wi-Fi was an opportunity to the curve.” best deal. Molitoris then helps moni- provide another service offering.” Bill Shea: (313) 446-1626, tor terms of the contract, he said. The new high-density Wi-Fi sys- [email protected]. Twitter: The carriers typically pay for the tem supplements the cell sites that @bill_shea19 20130114-NEWS--0020-NAT-CCI-CD_-- 1/11/2013 5:48 PM Page 1

Page 20 CRAIN’S DETROIT BUSINESS January 14, 2013 Why Should Belle Isle: They Trust YOU? Plan called game changer ■ From Page 1 serve as a tax haven for more than Will there be an emergency man- 35,000 of the world’s wealthy, and ager? In the next year or so, there for corporations from around the may be an interest in selling non- world eager to strategic assets.” buy a piece of “The island is a potential jewel,” BBB Accredited Businesses what Lockwood said Durant. “This is a city that are committed to honest, ethical envisions as the needs to be energized, and to do that Monaco or Sin- takes human ingenuity. Instead of gapore of the the island being a drain on the city and fair business practices. Western Hemi- The cover of Rodney Lockwood’s book and a cost item, it becomes part of sphere. shows an artist’s conception of his the revival. How much did they Belle Isle commonwealth. If that seems originally pay for the island of Man- like too many hattan? There was another island Show Your Customers What people to fit on no one thought had any value.” Lockwood an island 5.5 You can go way Lockwood said he has developed YOU Stand For miles in circumference, you should “ an affinity for the island in part be- know that Monaco has 33,000 resi- back and ask what cause of the many runs, including dents in an area about half the size. Free Press marathons, that he has Lockwood expects population to were the chances of participated in there over the eventually peak at 50,000. years. Taxes collected on island resi- this country He said he envisions that, dents and businesses would be lim- should the project come to pass, ited to 10 percent of the island’s happening in 1776? half of the residents will be U.S. gross domestic product each year, residents and the rest recruited compared to an average tax base in Sometimes, big ideas through advertising campaigns

® the U.S. of 40 percent of GDP. And targeting countries in northern real estate taxes would be based work out. climates whose residents are not only on the value of the land, not ” deterred by cold winters. what has been built on it. Hal Sperlich, retired president “Getting the money to do this and A pipe dream? Maybe. A long- of Chrysler Corp. recruiting people is the easy part. … ® shot? Certainly. But, says Lock- As someone who’s run numbers, I Start With Trust wood — who is chairman and CEO wood’s plan are David Littmann, have no doubt the financials will of the Lockwood Cos., a Bingham the former chief economist at Com- work,” Lockwood said. Farms-based construction and erica Bank and an adjunct scholar at “But people aren’t going to property management firm that the Midland-based Mackinac Center spend a lot of time thinking about Join the Better Business Bureau has built residential communities for Public Policy, a free-market think it unless we’re getting political Serving Eastern Michigan and the Upper Peninsula around the state — if the city of De- tank; Hal Sperlich, the former pres- traction. How do we move the nee- For more information: troit ends up in bankruptcy, or if ident of Chrysler Corp.; Larry Mon- dle so the governor and the presi- the city gets an emergency manag- go, a longtime Detroit developer dent and Congress say, ‘We need to bbb.org or 248-223-9400 er who needs to decide what the and owner of the Café d’Mongo do this’? ” city can sell to restore economic Speakeasy in downtown Detroit; Detroit program management stability … well, then, who knows? and Clark Durant, founding chair- director William “Kriss” Andrews Lockwood has written a book, man of Cornerstone Schools. said he doesn’t think the City Belle Isle: Detroit’s Game Changer, “I support this 100 percent,” Mon- Council will be any more receptive which will be published today. The go told Crain’s. He knows the pro- to a sale to private investors than A NEW SEASON TO book, set 29 years in the future, ject’s backers will be hit with an oft- it was to a proposal the state float- tells of life on a car-free island repeated criticism. ed last year to lease the island and commonwealth that you reach by “For that segment that is saying, turn it into a state park. monorail. It is filled with restau- ‘You’re stealing our jewels,’ I’d say: Reaction by some council mem- CELEBRATE rants, high-rise housing, parks, a ‘It’s not recognizable as a jewel. bers was vociferous, although a poll Grand Prix racing circuit, ball We’re in the 21st century now. We of city residents by The Detroit News 20I3 SEASON TICKETS ON SALE NOW! fields and ice rinks. must develop models for the 21st showed a substantial majority actu- The book can be purchased for century.’ ally approved a state takeover. $14.95 at www.commonwealthof- “It might sound crazy, but I A second proposed lease deal, belleisle.com, and, beginning to- guarantee you it’s going to happen. for the Department of Natural Re- morrow, at online sites such as We’re going to spend the rest of sources to operate the island, is ex- amazon.com. our lives working on this.” pected to go to the City Council for Commonwealths, according to a While the island would be an in- further review soon, said Council U.S. State Department manual, exist dependent commonwealth under President Pro Tem Gary Brown. under U.S. law as self-governing Lockwood’s plan — the fee for citi- Brown said a sale to private territories with their own constitu- zenship would be $300,000, which owners would likely meet more tions whose right of self-govern- doesn’t include the cost of buying a council resis- ment cannot be unilaterally with- house or condo — Detroiters tance than a drawn by Congress. There are two would be free to come and go as state takeover. commonwealths in the U.S.: the they please and be able to access “One advan- Northern Mariana Islands in the the island’s amenities. tage to leasing Pacific Ocean and Puerto Rico. “Rod and I have been friends a to the state and The book is told through the long time,” said Sperlich, who was DNR is that it eyes of the character Darin Fraser, one of the architects of the Mustang creates a new an architect who is showing a while at Ford Motor Co. and later one pool of money. friend from Damascus, Syria, how of architects of the minivan at We’ll receive a Belle Isle has become the “Mid- Chrysler when naysayers thought Brown share of the fee west Tiger,” rivaling Singapore as such a vehicle would never sell. for every state an economic miracle. “This could be a tipping point,” park pass sold in Michigan. The GREAT BENEFITS* INCLUDINGCLLUDING: If an architect at the center of a he said. “I’m excited about it, but it’s DNR also creates a pool of money book is reminiscent of Howard going to take a long road to make it through drilling and mineral • Season Ticketholder discountunt Roark of Ayn Rand’s The Foun- happen. But you can go way back rights that we’d also be a part of, tainhead, it’s not accidental. The and ask what were the chances of and these are two pots of money • OpeningOpening Day tickets with planlann currency island residents use is this country happening in 1776? you can borrow against,” he said. called the Rand — and not in imita- Sometimes, big ideas work out. • PostseasonPostsea ticket priority tion of the South African currency “Yes, you’ll hear the ‘they’re “But a sale of the island, as a city of the same name. stealing our jewels.’ But hopefully, asset? I don’t care how you struc- • ComplimentaryComplim food vouchersers On Jan. 21, Lockwood, who is a people will see the intent here is to ture that deal. It’s hard enough member of the board of the Mack- provide a massive impetus to the selling the council on (the state) *Some*Some restrestrictionsr apply inac Center and immediate past city. This will lead to massive de- proposal, and there are some re- chairman of the Michigan Chamber velopment in downtown Detroit strictions on selling assets in the TICKET PACKAGES of Commerce, has organized an in- and massive development to the charter,” he said. vitation-only lunch and presenta- area adjacent to the bridge. Tom Henderson: (313) 446-0337, AS LOW AS $374 tion for area business and civic “The big challenge is political. [email protected]. Twitter: leaders and politicians at the De- Politicians tend not to gather @tomhenderson2 313.471.BALL31313.473.471.BALL71.BALLALL (2255) troit Athletic Club to pitch his idea. around big ideas,” said Sperlich. Reporter Chad Halcom con- Speaking on behalf of Lock- “Is there going to be a bankruptcy? tributed to this story. 20130114-NEWS--0021-NAT-CCI-CD_-- 1/11/2013 5:53 PM Page 1

January 14, 2013 CRAIN’S DETROIT BUSINESS Page 21 Newsmaker: Working for quality, community www.crainsdetroit.com ■ EDITOR-IN-CHIEF Keith E. Crain From Page 1 GROUP PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] ployees to improve quality and in- ASSOCIATE PUBLISHER Marla Wise, (313) 446- crease performance so that pa- 6032 or [email protected] THE SCHLICHTING FILE EXECUTIVE EDITOR Cindy Goodaker, (313) 446- tients felt positive about care at Schlichting cites keys for growth 0460 or [email protected] Henry Ford. (See story this page.) Nancy MANAGING EDITOR Jennette Smith, (313) 446- 1622 or [email protected] “We always thought we were Schlichting, 58 Henry Ford Health System CEO owned insurance company froze MANAGER, DIGITAL CONTENT STRATEGY Nancy great at patient care, but we found Nancy Schlichting identified five premium prices in the early Hanus, (313) 446-1621 or [email protected] Job: CEO of DEPUTY MANAGING EDITOR Daniel Duggan, (313) out we were not as great as we Henry Ford keys to Henry Ford’s growth and 2000s. By raising prices to match 446-0414 or [email protected] thought. We needed to step it up, SENIOR EDITOR Bob Allen, (313) 446-0344 or Health profitability since she took rising costs, HAP generated more [email protected] create some mojo,” said Schlicht- System, charge in 2003: revenue that contributed to the WEST MICHIGAN EDITOR Matt Gryczan, (616) 916- ing, who is known for her passion Detroit, since The push for quality and ser- health system’s growth and prof- 8158 or [email protected] SENIOR EDITOR Gary Piatek, (313) 446-0357 or for quality, education, operational June 2003 vice. “We had to improve or we itability. [email protected] improvement would not grow. If people have a Mani Menon. The pioneering SENIOR DESIGNER Jeff Johnston, (313) 446-1608 Previous or [email protected] and commu- jobs: CEO of bad experience, they tell more urologist led the team that devel- DATA EDITOR Brianna Reilly, (313) 446-0418, VIDEO nity outreach. Henry Ford people than if they had a good oped industry-changing mini- [email protected] Hospital; COO of Summa Health WEB PRODUCER Norman Witte III, (313) 446- Nancy Patricia one.” mally invasive robotic proce- 6059, [email protected] Schlichting Maryland, System, Akron, Ohio; CEO of Schlichting said that in 2003, dures. EDITORIAL SUPPORT (313) 446-0419; YahNica traces her CEO of St. Riverside Methodist Hospital, Crawford, (313) 446-0329 Columbus, Ohio; COO of Akron the impact of hearing a family de- Schlichting said that when NEWSROOM (313) 446-0329, FAX (313) 446- career path, John Provi- 1687 TIP LINE (313) 446-6766 City Hospital scribe the experiences of a pa- Menon began attracting patients crainsdetroit dence Health REPORTERS Education: Bachelor’s degree in tient who ultimately died led to a from all over the world, “it helped .com/newsmaker System in video the system has used for in- the system to develop confidence. Jay Greene, senior reporter: Covers health care, public policy studies, Duke insurance, energy utilities and the environment. Warren, said University; master’s degree in ternal education to provide a way Some didn’t think we could get (313) 446-0325 or [email protected] Schlichting’s success has opened to “see our work through the pa- people from Oakland County.” Chad Halcom: Covers litigation, higher education, business administration in hospital non-automotive manufacturing, defense doors for many women in the administration and accounting, tient’s eyes.” Used the Malcolm Baldrige Na- contracting and Oakland and Macomb counties. health care industry. Cornell University She also established a “No tional Quality Award application to (313) 446-6796 or [email protected] Tom Henderson: Covers banking, finance, “I applaud her commitment to Board affiliations: Detroit Harm” campaign to put account- push culture and process change. technology and biotechnology. (313) 446-0337 or the revitalization of Detroit and Regional Chamber (chair), ability around results. Employ- Henry Ford applied five times be- [email protected] Bill Shea, enterprise editor: Covers media, the health of our region,” Mary- American Hospital Association, ees were encouraged to report in- fore it got a site visit, but, with advertising and marketing, the business of sports, land said. Federal Bank of Chicago Board- stances of “harm” — whether it each application, it saw in the and transportation. (313) 446-1626 or Detroit Branch, Downtown Detroit [email protected] was wrong medication for pa- feedback how the needle was Nathan Skid, multimedia editor. Also covers the Partnership, United Way of tients or employees hurting their moving in key areas. Those re- food industry and entertainment. (313) 446-1654, Sharing in quality Southeastern Michigan, The Kresge [email protected] Foundation, Walgreen Co., backs or getting accidental nee- sults were then used to continue Dustin Walsh: Covers the business of law, auto Thanks partly to the opening of suppliers and steel. (313) 446-6042 or Michigan Health and Hospital dle sticks. to improve. [email protected] Henry Ford West Bloomfield Hospital, Association Foundation, Greater “A lot of the success of the pro- Opening Henry Ford West Sherri Welch: Covers nonprofits, services, retail the hiring of urological surgeon and hospitality. (313) 446-1694 or Detroit Area Health Council, gram was how we treated people Bloomfield Hospital. West Bloom- [email protected] Mani Melon to start an innovative Citizens Research Council of who helped identify the prob- field, which opened in March LANSING BUREAU prostate cancer surgery program Michigan, Detroit Economic Club 2009, had its first profitable year Chris Gautz: Covers business issues at the Capitol lems. It took two years to see any and utilities. (517) 403-4403 or [email protected]. and an increase in referrals by and Health Alliance Plan progress,” she said. last year. Its 12,000 admissions ADVERTISING physicians employed by Henry Ford Changing strategies at Health also provided transfers to Mid- Medical Group to Henry Ford hospi- at my home,” said Schlichting. “I Alliance Plan. The Henry Ford- town for more advanced care. SALES INQUIRIES: (313) 446-6052; FAX (313) tals, Henry Ford’s market share was told it would be good news if a 393-0997 SALES MANAGER: Tammy Rokowski has increased to 17.9 percent from woman called in the morning and SENIOR ACCOUNT EXECUTIVE: Matthew J. 13.4 percent in 2006. bad news if a man called in the af- While experts predict that com- leader in spearheading the revital- Langan Schlichting also attributed in- ternoon.” pleting the merger will prove chal- ization of Midtown and the 2009 for- ADVERTISING SALES Christine Galasso, Lori creased revenue and profitability The phone rang at 10 a.m., and lenging because of cultural differ- mation of the Midtown Partnership Tournay Liggett, Dale Smolinski, Sarah Stachowicz CLASSIFIED SALES (313)-446-0351 to product and pricing strategies Schlichting said she heard a ences between the systems, of Henry Ford, Detroit Medical Center EVENTS DIRECTOR Nicole LaPointe implemented by Health Alliance woman’s voice. management and medical staffs, and Wayne State University. DIRECTOR, INTEGRATED MARKETING Eric Cedo Plan, Henry Ford’s health insur- “I was so happy I don’t remem- Schlichting said she is confident “We need to improve the com- SALES PROMOTION MANAGER Karin Pitrone ance company, and the closing of ber what was said, just that we the differences can be overcome. munity” as well as our health care ASSISTANT EVENTS MANAGER Kacey Anderson SENIOR PRODUCER FOR DIGITAL/ONLINE inpatient operations at Cottage won the Baldrige award,” said “We expect to have a signed organizations, said Schlichting, PRODUCTS Pierrette Dagg Hospital in Grosse Pointe Farms Schlichting, who added that she agreement by the end of March, noting that Summa Health System in MARKETING ARTIST Sylvia Kolaski and Henry Ford Macomb Hospital in immediately started calling Henry but it will take several months to Akron, Ohio (where she was for- SALES SUPPORT Suzanne Janik, YahNica Crawford Warren. Ford executives, Detroit Mayor finish the details,” she said. merly COO), has worked hard to PRODUCTION MANAGER Wendy Kobylarz After losing $87 million in 2001, Dave Bing and Gov. Rick Snyder. A name for the new system, improve the surrounding commu- PRODUCTION SUPERVISOR Larry Williams Henry Ford has posted an aggre- “At the awards ceremony — we identification of corporate head- nity. CUSTOMER SERVICE MAIN NUMBER: Call (877) 824-9374 or write gate $570.7 million in net income took 50 people to Washington who quarters and quantification of “They have been doing for 30 [email protected] and increased its net assets by 55 were involved in the quality com- merger savings will be announced years what we are starting to do SUBSCRIPTIONS $59 one year, $98 two years. percent to $1.36 billion in 2011 from Out of state, $79 one year, $138 for two years. mittees — I was very emotional,” in March, she said, but the execu- now,” she said. “It takes a long Outside U.S.A., add $48 per year to out-of-state $877 million in 2001. Schlichting said. tive staff, a governance structure time to see the results of what you rate for surface mail. Call (313) 446-0450 or But Schlichting said the market Another honor came Henry envision.” (877) 824-9374. and other complicated issues will SINGLE COPIES: (877) 824-9374 share and revenue growth couldn’t Ford’s way early last year with the be decided later this year, she said. Schlichting noted that Henry REPRINTS: (800) 290-5460, ext. 125; have happened without quality im- 2011 John M. Eisenberg Patient “We are addressing culture as Ford pushed the enlarged Mid- (717) 505-9701, ext. 125; or lindsay.wilson @theygsgroup.com provements. Safety and Quality Award for in- the most important issue. We have town structure of encompassing TO FIND A DATE A STORY WAS PUBLISHED: In 2005, Henry Ford began its innovation. major differences: suburban ver- both the New Center and Wayne (313) 446-0406 or e-mail [email protected] novative “No Harm” campaign to sus urban hospitals, governance, State University areas. CRAIN’S DETROIT BUSINESS IS PUBLISHED BY reduce medical errors, increase physician cultures,” said Schlicht- Schlichting also was a driver of CRAIN COMMUNICATIONS INC. Changing with the times CHAIRMAN Keith E. Crain patient safety and redesign care to ing. “But once you set the direc- the “Live, Work Midtown” initia- PRESIDENT Rance Crain eliminate future problems. The Despite the operational, market tion (with management), you are tive, with three anchor institu- TREASURER Mary Kay Crain Executive Vice President/Operations first two years of the quality pro- share and quality improvements, on board or bye-bye.” tions offering subsidies to employ- William A. Morrow gram failed to produce any im- Schlichting knew that Henry Ford Sandy Baruah, Detroit Regional ees who buy or rent in the district. Group Vice President/Technology, Manufacturing, Circulation provement, but by year three, needed to grow even further, espe- Chamber CEO, said Schlichting’s Meanwhile, the system has a Robert C. Adams Schlichting said, data and anecdo- cially to brace against revenue re- choice as Newsmaker of the Year long-term goal of developing 300 Vice President/Production & Manufacturing Dave Kamis tal evidence showed progress. ductions and other regulatory reflects her management and lead- acres south of West Grand Boule- Chief Information Officer So far, Henry Ford has cut changes as part of the Patient Pro- ership skills, focus on customer vard that potentially could lead to Paul Dalpiaz “harm events,” or medical errors, tection and Affordable Care Act, Chief Human Resources Officer service and quality, and under- $1 billion in new projects. Margee Kaczmarek by 26 percent and mortality which goes into full effect in 2014. standing the importance of a In 2011, Schlichting donated $2 G.D. Crain Jr. Founder (1885-1973) events, or preventable deaths, by In late October, Schlichting and strong Detroit. million toward the system’s $250 Mrs. G.D. Crain Jr. Chairman (1911-1996) EDITORIAL & BUSINESS OFFICES: 12 percent. Beaumont Health System CEO As chair of the Detroit Chamber, million Envision Campaign. In her 1155 Gratiot Ave., Detroit MI 48207-2732; “We set goals for reporting more Gene Michalski, along with their Schlichting has been engaged in honor, a section of the new Innova- (313) 446-6000 Cable address: TWX 248-221-5122 AUTNEW DET harm events to patients, and to em- board chairs and physician lead- every aspect of the association, tion Institute has been named the CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 ployees, and we needed to have ers, announced a merger that Baruah said. Schlichting Education Commons. is published weekly, except for a special issue the third week of August, and no issue the third week people be honest about reporting could create Southeast Michigan’s “I watch her work, and she is Schlichting said she wanted to of December by Crain Communications Inc. at the events,” Schlichting said. “Er- largest system with 10 hospitals, very sensitive to the well-being of leave a legacy at Henry Ford, an 1155 Gratiot Ave., Detroit MI 48207-2732. Periodicals postage paid at Detroit, MI and rors are sequences of events that 3,600 beds and $6.4 billion in annu- team members. She wants to know organization “that accepted me, al- additional mailing offices. POSTMASTER: Send address changes to CRAIN’S DETROIT BUSINESS, can lead to problems.” al revenue with slightly under 40 my team is doing well,” Baruah lowed me to grow in leadership. I Circulation Department, P.O. Box 07925, Detroit, After five years of unsuccessful percent market share. said. “It is not about her, and not owe that organization a lot.” MI 48207-9732. GST # 136760444. Printed in U.S.A. applications, Henry Ford won the With Michalski, who had con- about the publicity or her role. It is “My legacy is leaving the orga- Entire contents copyright 2013 by Crain coveted 2011 Baldrige award, the cluded that Beaumont needed to about the team.” nization and community in a lot Communications Inc. All rights reserved. Reproduction or use of editorial content in any nation’s highest quality award for become larger and part of a diver- better shape than when I arrived,” manner without permission is strictly prohibited. innovation, improvement and vi- sified regional health system to she said. sionary leadership. flourish under health reform, Leading city improvement Jay Greene: (313) 446-0325, “On my birthday (Nov. 21), I got Schlichting found a partner will- A strong believer in community [email protected]. Twitter: the call about the Baldrige award ing to change with the times. development, Schlichting was a key @jaybgreene 20130114-NEWS--0022-NAT-CCI-CD_-- 1/11/2013 5:55 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS January 14, 2013 Auto show: Suppliers to highlight fuel economy technologies ■ From Page 1 sidiary of German-based Schaeffler AG, said this year’s show will demonstrate the culmination of conceptual technology into pro- Hospitality industry fires up for auto show parties duction-ready products. Schaeffler operates a 78,000-square-foot tech- BY SHERRI WELCH gan turning 4,000 pounds of flour Centerplate’s preparation begins Junior Achievement of Southeastern nical center in Troy. CRAIN’S DETROIT BUSINESS shipped in for the week into crois- all over again, Hougard said, this Michigan and Alkebu-lan Village at the Schaeffler will display a Ford Es- sants, breads and desserts. time to accommodate the crowds Detroit Club for $155 per person. cape loaded with nine technologies Cobo Center and a number of off- Also brought in to prepare for an attending public days. Last year, GM’s Corvette brand (and its that save gas in day-to-day driving, site venues around town are expected 110,000 meals: 4,000 that was about 770,000 people. Op- caterer Troy-based Forte Belanger) including a start-stop system, an all- preparing for a busier-than-usual pounds of shrimp, 3,500 pounds of tions include the food court inside was preparing for large events wheel drive disconnect system and party circuit and fundraiser line- deli meat, 1,200 pounds of tender- the ballroom, the Michigan Hall centered on the launch of the 2014 friction-reduction technologies. up this week in tandem with the loin, alcoholic and non-alcoholic eatery or beer garden or lobby Corvette C7. Forte Belanger last Start-stop systems automatically press and industry days of the De- drinks, 3,500 bottles of sparking eateries: Eatsville USA and Go week was preparing beverages for 500 employees for a private event shut down and restart the internal troit auto show. wine from L. Mawby Vineyards in Natural, a fresh-made and natural Sunday at Russell Industrial Cen- combustion engine to reduce idling, “This is one of the biggest shows Michigan’s Suttons Bay. food concept Centerplate is ter in Detroit, said President and thus reducing fuel use. in North America at any conven- On average during the year, launching at Cobo before expand- tion center, and no question, the Centerplate has about 200 people ing it to other convention centers CEO John Forte. It was preparing biggest that Cobo sees during the on staff. But to handle hospitality around the country. food and drinks for another 1,200 Meaningful fuel savings year,” said Jason Hougard, gener- this week for all of the private re- During press days, every avail- people expected for the unveiling al manager for ceptions at the conference center, able space at Cobo is reserved to that night. The combination of these fuel- For the third year running, Lear saving products allows the Escape Centerplate, the press days, dealer/industry pre- showcase automakers and suppli- hospitality con- view days and the charity pre- ers. Relocating the media center Corp. plans to host a private event to reach the 2020 government-regu- before and after the charity pre- lated standard of 35 miles per gal- tractor at Cobo. view, the company has ramped up to Michigan Hall this year freed Local chefs to 750 kitchen, wait staff and other up some hospitality space to help view for employees, customers lon. The current 2013 non-hybrid and business associates at the from area coun- customer service staff, 75 more replace any lost to construction, Escape gets roughly 26 mpg. Virgil H. Carr Cultural Center. try clubs and than last year. It’s also brought in Connors said. “There’s definitely a steeper Forte Belanger has seen a 25 per- golf courses lend 30 out-of-town managers, up from Off-site catering companies and slope for the ramp-up of fuel econo- cent jump in its auto show-related a hand to pre- 25 last year, Hougard said. venues are also busy and benefit- my technology right now,” business, said Forte. Forte said his pare for the on- On Saturday, Centerplate being from private party business. Hemphill said. “The presence of company was also catering the slaught of inter- gan a 24-hour, rotating shift for its MGM Grand Detroit Casino-Hotel new technology is pretty dramatic, Hougard Lear party, an event for Mercedes- even compared to five years ago, national press, staff, bringing in the kitchen team was scheduled on Saturday to once Benz, Autoweek’s annual design fo- and that’s because these technolo- automotive manufacturers, deal- 10 p.m.-4 a.m. and wait staff and again host The Gallery, a $500-per rum event, and others. A lot of De- gies are maturing from advanced ers, suppliers and 13,000-14,000 other front-of-the-house staff for ticket event showcasing luxury troit restaurants also pick up, concepts.” guests expected for private pre- and the balance of the day. cars, with a strolling dinner pre- particularly with charity preview post-receptions hosted at Cobo by After the charity preview ends, pared by celebrity Chef Wolfgang Doug Patton, senior vice presi- events. The Rattlesnake Club, for in- organizations such as Charter staff from Cobo operator SMG and Puck and a fashion event. dent of Denso International’s engi- stance, said it had several private One/RBS Citizens, the presenting Centerplate will work until the The Sheraton Novi Detroit was neering division, said suppliers events on tap. sponsor for the 2013 North America In- show opens to the public at 10 a.m. scheduled to host an event for are moving toward complete sys- The week leading up to the pub- ternational Auto Show’s charity pre- the next day to convert the about 100 people for the China tems to highlight technology, lic days of the show “is kind of view, and for the black-tie preview venue’s ballroom back to a food Council for Promotion of Interna- which makes them more visible like Mardi Gras,” said Rod Al- on Friday night. court, Hougard said. tional Trade, Automotive Indus- than individual products. berts, executive director of the Typically, Cobo’s hospitality “That’s just the food service side try Committee Sunday afternoon . “There’s always been a lot of NAIAS and the Detroit Auto Dealers provider, Greenville, S.C.-based … we also mirror those shifts with Three nonprofits also plan to technology at the auto show, but Association. Volume Services America, which does the construction ... and operational host afterglows at local venues Fri- “You don’t ever know all the it’s been buried in the car and you business as Centerplate, brings in side,” said Thom Connors, Cobo re- day: The Children’s Center at Ford events taking place around this.” didn’t see it,” Patton said. “What about 52 chefs and sous chefs, gional vice president for SMG and Field at $325 per ticket, Children’s Sherri Welch: (313) 446-1694, you’re seeing now is a system ap- Hougard said. This year it hired 70. general manager for the center. Hospital of Michigan Foundation at [email protected]. Twitter: proach where we bring technolo- Beginning last week, chefs be- Following the charity preview, MGM Grand for $150 per ticket, and @sherriwelch gies together and look at them as a whole for the best value.” Denso will be displaying several products, including a new fuel- saving HVAC system and a start- NAIAS a magnet for government officials from near and far stop system. ZF Group will show the supplier’s eight- and nine-speed transmissions as well as an all- Among the government officials cials from Michigan and other souri Gov. Jay Nixon and Indi- David Strickland, administrator wheel drive disconnect system. planning to tour the North American states, along with federal offi- anapolis Mayor Greg Ballard are of the National Highway Traffic Safety The challenge, experts say, is International Auto Show is Kentucky cials, will be working the crowds also expected to attend. Administration, and Rebecca Blank, how to unite these technology ad- Gov. Steve Beshear, who planned as well. U.S. Secretary of Transporta- acting secretary of commerce, are vancements with sales strategies to attend the un- “Every Corvette in the world is tion Ray LaHood will be present also scheduled to attend. for OEMs. veiling of the made in Kentucky, and we’re for Monday’s opening ceremonies Secretary of Labor Hilda Solis David Cole, chairman of non- 2014 Chevrolet proud of that,” Beshear said. “But at Cobo Center, said Debbie Din- was also scheduled to attend, but profit research group Auto Harvest Corvette — while we’re there, we’ll also be gell, consultant to the American Au- she resigned from the post last and chairman emeritus of the which will be visiting with other companies, tomobile Policy Council. week, leaving her presence at Ann Arbor-based Center for Auto- assembled at some manufacturers and various Vice President Joe Biden was NAIAS unclear. motive Research, said the increase Kentucky’s suppliers, because we’re always also scheduled to make an appear- “This is a challenging time (for in fuel-savings technology is a Bowling Green looking to attract new companies ance, but he canceled last week to officials to attend) because we’re prime example of an uncertain in- Assembly Plant. to the state of Kentucky.” deal with potential federal gun in a transition period for the ad- dustry. Beshear said From Michigan, Gov. Rick Sny- control legislation. ministration and Congress,” said he was invited der is scheduled to tour the show, As automakers and suppliers Dingell, who handles government Bottom line: The added costs of Beshear these technologies, while promot- to the show by as are Sens. Debbie Stabenow and make headway toward the 54.5 booking for the show. “But it’s ed and touted at NAIAS, may not GM but will use the opportunity Carl Levin, and Reps. John Din- mpg standard by 2025, Lisa Jack- also very important that this ad- equate to consumer adoption — at to meet with other manufactur- gell, Sandy Levin, Gary Peters son, administrator of the Environ- ministration show significant least not yet. ers to push economic develop- and John Conyers Jr. mental Protection Agency, will tour support of the auto industry.” “We’re really pushing the laws ment in his state. Of course, offi- Ohio Gov. John Kasich, Mis- the show floor during media days. — Dustin Walsh of the thermodynamics of engine performance, but at what cost?” Government deadlines Among the green cars being last week, 87 percent of automo- Transportation Association. The Cole said. “This is really expensive highlighted at the Detroit show, tive executives said EVs won’t grand total of hybrids, plug-in hy- stuff, and nobody has the right an- Government-regulated CAFE General Motors Co. will unveil its match the range of gas-powered brids and battery electric vehicles swer to the best benefit, so every- standards require manufacturers Cadillac ELR Luxury Electric Hy- vehicles for at least another five sold last year in the U.S. totaled one is kind of out there working on to meet a 54.5 mpg average across brid on Tuesday morning, Via Mo- years. 487,480, which represents 3.4 per- a lot of things.” their fleets by 2025. tors will showcase battery-electric “Clearly, they don’t see the num- cent of the 14.5 million cars sold The government push for fuel Automakers and suppliers alike cars and BMW will debut its bers of these vehicles increasing,” last year. economy is pitting increased tech- continue to push these technolo- ActiveHybrid3. said Betsy Meter, partner at That’s better than the 2.2 per- nology against consumer pocket- gies and push further into vehicle Experts say that for consumers, KPMG in Detroit and its automo- cent of total sales in 2011. And the books. CAR estimates a $2,000 in- electrification to appease govern- range anxiety remains the biggest tive audit leader. “We all kept ex- market for EVs is expanding creased vehicle cost for a 20 ment demands, despite ho-hum stumbling block for EV adoption. pecting these numbers to signifi- alongside the growing U.S. auto percent improvement in fuel econ- sales. The Chevy Volt, for example, cantly increase, but executives market — which is expected to omy. The Detroit show is expected to achieves roughly 40 miles on its continue to see them at a low level, eclipse 15 million units this year. “Is that enough?” Cole said. “It’s host various federal officials from electric battery before a tradition- despite investment.” Dustin Walsh: (313) 446-6042, a very confusing period for the in- the EPA and other agencies. (See al gas-powered motor steps in. U.S. EV sales totaled 52,835 in [email protected]. Twitter: dustry.” story, this page.) In a KPMG LLP study released 2012, according to the Electric Drive @dustinpwalsh 20130114-NEWS--0023-NAT-CCI-CD_-- 1/11/2013 6:04 PM Page 1

January 14, 2013 CRAIN’S DETROIT BUSINESS Page 23 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF JAN. 5-11

behalf of Patterson and tion within a new project of gan and nine affiliated med- Cram, from Steven Potter of Visteon the National Institutes of ical groups, and Warren- Dealers get Potter DeAgostino O’Dea & Health, university Presi- based St. John Providence Patterson in Auburn Hills. dent Allan Gilmour said. Partners in Care and its affil- Last week, Oakland workers to stay iated physicians group County Prosecutor Jessica have been approved by the Cooper’s office dismissed COMPANY NEWS federal government as ac- to see wares misdemeanor charges of in Van Buren Birmingham-based countable care organiza- moving violation causing Broder & Sachse Real Estate tions for Medicare patients. serious impairment of a outh Korea-based Services Inc. announced its Former Detroit Mayor bodily function against joint venture Halla purchase of the 440 E. Con- Kwame Kilpatrick was or- S Climate Control Corp. dered to wear an electronic Prainito because Patterson gress building and parking at auto show will buy Visteon Corp.’s au- and Cram declined to re- structure in downtown De- tether and live with his lease medical records. tomotive climate units, but troit and plans improve- mother while Michigan push by the Detroit trademark absurdist hu- Prainito instead pleaded Visteon’s 300 employees at ments. The purchase price prison officials investigate Auto Dealers Associa- mor, the segment belittled “responsible” to a civil in- its Van Buren Township was not disclosed; the ask- his receipt of an unreported A tion to attract more the ongoing war between headquarters will stay put, fraction with a $125 fine and ing price was $1.95 million, $2,000 gift from a Chicago U.S. automotive dealers to backers of the proposed gov- a charge of not wearing a the company said. according to CoStar Group. pastor. Kilpatrick is on trial the North American Interna- ernment-owned New Interna- seat belt. Once consolidated, the Quicken Loans Inc. an- on federal corruption tional Auto Show is paying tional Trade Crossing and Am- joint venture will be re- nounced it closed more charges. off, with as many as 800 ex- bassador Bridge owner What do Compuware, named Halla-Visteon Climate than $70 billion in home Mike Duggan’s Detroit pected in Detroit this week. Manuel Moroun, and Mo- Group and led by a Korean loans in 2012, more than mayoral exploratory com- It took 23 years, but Rod roun’s expensive efforts to Argentina have in common? management team. Vis- doubling 2011’s $30 billion mittee announced that it’s Alberts, executive director of halt the new span. teon’s 400 employees at its record. hosting a $1,000-per-person The president of Argenti- the DADA and the Detroit As of Friday, the segment Halla Climate plant in Al- Triad Retail Media, the VIP reception Jan. 28 at The na, Cristina Kirchner, and auto show, said it finally oc- had been viewed 168,822 abama also will stay put Tampa, Fla.-based seller of Whitney. Compuware Corp. Chairman curred to him to carve out a times — by far the most under the deal, the compa- online display ads, has been Brothers Ben and Dan Peter Karmanos Jr. seem to time for dealers to see the views of any videos from ny said. acquired by Detroit-based Newman said they’ll open have something in common new vehicles they’d soon be that day’s show. Rockbridge Growth Equity. their café, The Detroit Insti- these days — they’ve both selling from their lots. Terms were not disclosed. tute of Bagels, in June at got their eyes on Elliott Man- ON THE MOVE After all, the DADA, Rochester Hills-based 1436 Michigan Ave. in Patterson may file civil suit agement, the New York which represents more than Sandy Pierce was automotive hose and brake Corktown. hedge fund that invests in 220 domestic and import car Oakland County Execu- named by Akron, Ohio- assembly supplier Coupled The National Hockey underperforming compa- and truck dealers locally, al- tive L. Brooks Patterson and based First- Products LLC announced it League and National Hockey nies and distressed debt. ready had done so for OEMs, his driver plan to bring a Merit Corp. purchased the supplier League Players Association While Karmanos is wor- suppliers and the media. civil lawsuit for their in- as chair- from its private equity reached a 10-year collective ried about a hostile take- The 2013 NAIAS will offer juries in an Aug. 10 car man and owner under the name TJD bargaining agreement, end- over of Compuware, Kirch- dealers an exclusive look at crash in Auburn Hills — CEO of Industries LLC. Terms were ing a 113-day lockout. The ner is worried about a the show from 8 a.m. to but it would mean disclos- FirstMerit not disclosed. Detroit Red Wings ’ 48-game hostile takeover of the noon Wednesday when the ing the same medical Michigan as Ford Motor Co. sold 239 season will begin Saturday country’s jet. doors open for Industry Pre- records they withheld from well as vice acres at its former assem- on the road against the St. Elliott owns $370 million view Days for suppliers and a related criminal case last chair- bly plant in Wixom to Tri- Louis Blues; the home open- of Argentine debt through a others in the industry. week, attorneys for CBS Ra- woman of dent Barrow Management, a er is Jan. 22 against the Dal- fund it controls, NML Capital Pierce About 300-400 dealers dio Inc. contend. the parent unit of Barrow Development las Stars. Ltd. — debt Elliott is trying from among 18,000 around Patterson and his chauf- corporation, effective Feb. of New York City. Terms The University of Michi- to convert into cash. the U.S. have attended the feur, James Cram, were hos- 1. The appointment antici- were not released. gan collected $6 million in As recounted in last show in previous years, Al- pitalized after their vehicle pates shareholder and reg- Crain Communications licensing revenue from week’s profile of Elliott, berts said. This year, “we’ll was struck by a car driven ulatory approval for First- Inc., parent company of June 2011 to July 2012, lend- NML Capital won an October probably end up at 800.” by Anthony Prainito, a sales Merit’s purchase of Crain’s Detroit Business, ing its brand to items rang- court order to seize an Ar- manager at CBS-owned Flint-based Citizens Repub- sold the monthly magazine ing from Victoria’s Secret gentine Navy vessel over WOMC 104.3 FM. lic Bancorp Inc. Pierce will Workforce Management and underwear to Hello Kitty Bridge fight becomes the unpaid debt at a Ghana Because Prainito was us- replace Cathy Nash, presi- its assets to Chicago-based dolls and Pop-Tarts. port. The fund offered to re- fodder for ‘Daily Show’ ing a promotional vehicle dent and CEO of Citizens. MediaTec Publishing Inc. On a 1-100 scale, Michi- lease the ship if Argentina lent to WOMC for the Wood- The Highland Park- Guardian Guard Services gan’s prospects for busi- America had a chuckle at posted a bond of $20 million, ward Dream Cruise when the based Ruth Ellis Center of Michigan has acquired an- ness growth averaged 62 in Detroit’s expense again, but it wasn’t released until crash occurred, CBS is de- named Margaret Warner in- other Southfield-based busi- a survey of 3,000 people in only this time the comedy December based on an in- fending the suit. The com- terim executive director. ness, RSIG Security-Midwest, the business, nonprofit and was intentional. ternational law. pany’s civil attorney, Warner, the retired direc- for an undisclosed amount. public sectors conducted by Comedy Central’s “The Now, fearful of having Thomas Branigan, executive tor of the Michigan Depart- Guardian said it plans to re- Ann Arbor-based Baker Daily Show” waded into the aircraft seized instead, managing partner of the ment of Human Services’ tain most of RSIG’s 200 secu- Strategy Group. The highest Detroit River bridge situa- Kirchner has decided to Bloomfield Hills office of Child Welfare for Wayne rity officers. marks came from the tion on Wednesday with a leave her own jets at home Bowman and Brooke LLP, said County unit, steps in for Lau- Detroit-based law firm Grand Rapids, Traverse six-minute piece from cor- when she goes abroad, in- Friday his office received a ra Hughes. Dykema Gossett PLLC an- City and Marquette re- respondent Al Madrigal. stead renting one for the notice of intent to bring a Clark Hill PLC attorney nounced the opening of a gions, which averaged 67. Using the program’s trip. personal injury claim on Reginald Minneapolis office, its 12th Michigan Supreme Turner was nationwide. Court Justice Diane Hath- appointed General Motors Co. is in away will retire Jan. 21, her to a six- discussions with the United lawyers said. Hathaway year term Auto Workers on offering was under fire for ethics on the sev- lump-sum pension pay- concerns after she tried to en-member ments to salaried retirees, a get rid of a suburban De- Wayne Coun- GM spokesman confirmed. troit home in a short sale. BEST FROM THE BLOGS ty Airport Au- Meanwhile, GM plans to Michigan Gov. Rick READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS thority Turner roll out a new Chevrolet ad- Snyder signed legislation board, vertising tag line next prohibiting novice drivers State of the auto state Fame eludes Jack Morris again which oversees Detroit Met- month, replacing “Chevy from using a cellphone ropolitan Airport and Willow Runs Deep” with “Find while behind the wheel. The Detroit Oscar Madison is Run Airport. New Roads.” Regional“ Chamber’s dead,“ right? Judging by Jamie Kaye Walters, co- MichAuto advocacy this year’s Baseball Hall founder of Detroit-based OBITUARIES group will flex its of Fame balloting, commercial production OTHER NEWS Ted Gatzaros, one of the economic development perhaps not. firm Velocity Cow, is leav- might at this year’s The Kresge Foundation founders of Detroit’s Greek- North American ” ing her business to be cre- presented its 2013 Eminent town Casino-Hotel, died Jan. International Auto ative services and pro- Artist Award to David 10 of lung cancer. He was Show. gramming director at DiChiera, who founded 68. WDIV-Channel 4 next month. Michigan Opera Theatre and John K. Teahen Jr., long- ” Wayne State University is its general and music di- time writer and editor for Reporter Dustin Walsh’s blog on auto suppliers, steel, Reporter Bill Shea’s “Shea’s Stadium” blog on the Provost Ronald Brown began rector. The award includes Crain’s sister publication higher ed and Livingston and Washtenaw counties can business of sports can be found a leave of absence last week a $50,000 prize. Automotive News, died Jan. be found at www.crainsdetroit.com/walsh at www.crainsdetroit.com/sheasstadium to take a mentorship posi- The University of Michi- 8. He was 87. DBpageAD.qxp 8/27/2012 11:22 AM Page 1

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