20111024-NEWS--0001-NAT-CCI-CD_-- 10/21/20116:39PMPage1 ©Entire contentscopyright2011byCrainCommunicationsInc.Allrightsreserved success inschoolandlife. ter preparepreschoolersfor 10-year initiativetohelpbet- float, namedafterthebank’s parade a“GrowUpGreat” a newfloatsponsor.Itwill troit student. winning designfromaDe- float everyyearbasedona which commissionsanew and the kind sponsoroftheparade, Corp. this yearare presented byArtVan. view party—whichwasalso the invite-onlyparadepre- by new 2011floatcommissioned Co. ward Avenuethisyear. rade asitheadsdownWood- America’s ThanksgivingPa- Page 18 multiyear campaigns, Largest comprehensive honored forgiving,Page14 Taubman, FisherandCelani The futureofgiving,Page9 Page 17 4 BelleIslegroupsmerge, Page 4 New leadershipatTechTown, play outinDetroit Price-fixing lawsuitsmay include fournewfloats Thanksgiving paradeto

NEWSPAPER www.crainsdetroit.com Vol.27,No.44 Crain’s Crain’s Focus onphilanthropy This JustIn Inside Page 3 PNC Bank Also sponsoringnewfloats The Detroit-based Four newfloatswilljoin Art VanFurniture last weekintroducedthe , alongtimecashandin- bulk uproster Lists Skillman Foundation has signedonas cap, can — SherriWelch below salary Wings Compuware during Parade , receptive earsofatopgubernatori- committees. budge outofDemocrat-controlled the Legislature. those they’reshepherdingthrough fault autoinsurancereformslike Sen. JoeHunehavetriedforno- time thatstateRep.PeteLundand ulcmimn oDavidson’sinterestsand tual commitmentto with like-mindedorganizationsthathaveamu- Aaron saidthefoundationwouldseektowork comment. of ident ofthefoundationandprincipalmember African-American community. aimed atreducinghealthdisparitieswithinthe kiosks openedthisyearaspartofapilotproject Henry FordHealthSystem late lastyear. Guardian IndustriesCorp. ties haveyettoemerge. tions inthestate,butitsphilanthropicpriori- evolved intooneofthelargestfamilyfounda- Davidson Priorities stillamystery into $191Mforce builds foundation Davidson estate Potential repeal opening of helmetlawprovides No-fault reformgetstraction But acombinationofthemore In recentyears,theirbillsdidn’t LANSING —It’snotthefirst But afterDavidson’sdeathinMarch2009, Jonathan Aaron,Davidson’sson-in-law,pres- The estatemoved$191millionincashand The The VelvelGroupLLC CAPITOL CORRESPONDENT William DavidsonFoundation B Y CRAIN’S DETROITBUSINESS A B MY Y S media relationsmanagerat four churches,DavidOlejarz, health informationkiosksin Ford Hospital made a“largegrant”to still alive,thefoundation founder BillDavidsonwas were madelastyear. grants thisyear,butnone foundation hasawarded HERRI L ANE In 2008,whileGuardian It isunclearwhetherthe in Southfield,declinedto See Davidson,Page30 , wroteinanemail.The stock tothefoundation W ELCH to helpfund quietly has OCTOBER 24–30,2011 through.” tremely goodshotofgetting Hamburg. “Ithinkit’sgotanex- Committee ChairmanHune,R- fairly well,”saidSenateInsurance fault personal-injuryprotection. on thestate’snowunlimitedno- achieve agoalofputtingceiling tunity hasopenedforthetwoto ment formotorcyclists,anoppor- to dropMichigan’shelmetrequire- ture and,surprisingly,legislation al aideandRepublican-ledLegisla- “The starsseemtohavealigned Henry The exhibitalsohasledthecreationofanesti- impact inWayneCountyisabout$3.4million. 50,000 visitorsperyear,theannualeconomic annual budgetof$400,000andanaverage based onthenonprofitHeidelbergProject’s difference. bers toshowthattheprojectismakinga velopment ducted bythe tor JenenneWhitfieldalwayshasknownthat. neighborhood ofDetroit,andExecutiveDirec- outdoor artexhibitintheMcDougall-Hunt says. the C3Dstudy around theworld, visitors from art hasdrawn Project’s quirky The Heidelberg Study: Heidelberghas$3.4MimpactonWayne County The economicimpactstudyfoundthat Thanks toastudypublishedOct.3andcon- The HeidelbergProject Art byArt numbers SPECIAL TOCRAIN’SDETROITBUSINESS , orC3D,Whitfieldnowhasthenum- B Y Center forCreativeCommunityDe- M ICHELLE nor’s agendaofjobcreationand try areinoppositiontothegover- advanced bytheinsuranceindus- be truegiventheproposalsbeing had everyreasontobelievethis a toppriorityforthegovernor.We istration thatautono-faultwasnot senior officialswithintheadmin- al lawyersandconsumers. health careproviders,unions,tri- cludes associationsrepresenting ing AutoNo-Fault is morethanjustan M That alarmsthe “We hadbeentoldrepeatedlyby UÑOZ , agroupthatin- Coalition Protect- around Heidelberg—isabout$2.8million. cal economicimpact—inareasofDetroit mated 40jobs,accordingtothestudy.Thelo- the HeidelbergProjectwassomuchmorethan Heidelberg hadeagerlyappliedforthestudy. Whitfield “I feelvalidated,”Whitfieldsaid.“These “We haveforaverylongtime…knownthat Hune McKinney. legislative coordinatorKevin smaller government,”saidCPAN others atthe25-year-old town, Mass. Williams College ates fromthecampusof ducted byC3D,whichoper- ments inCreativity City-based a grantfromNewYork start.” numbers couldbejusta Whitfield saidsheand The studywasfundedby See No-fault,Page33 $2 acopy;$59year Lund Leveraging Invest- See Art,Page32 in Williams- and con- ® COURTESY OF THE HEIDELBERG PROJECT 20111024-NEWS--0002-NAT-CCI-CD_-- 10/21/2011 5:57 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS October 24, 2011

MICHIGAN BRIEFS Electric motorcycles help spark Abatement requests indicate mid-Michigan matchmaking East-West meeting softens perceived differences better days in Holland area Another example of Michigan In the Holland area, local tax businesses doing business with Marge Byington-Potter recently hosted a meeting west relationship is changing, although differences abatements are “a signal” that the Michigan businesses: Current Motor of two groups in Grand Rapids that was designed to remain. economy there is improving — be- in Ann Arbor has entered into an bridge their perceived differences. That the 50 In the Grand Rapids area, “we don’t insist on big, cause those abatements mean com- agreement with Dakkota Integrated young adults came not from different countries but complicated contracts,” he said. “There’s more chit- panies are investing in machines Systems in Holt, near Lansing, to from opposite sides of the same state did not miti- chat. … Over there (Detroit), people are more fast- that make things. Tim Vagle, the assemble Current Motor’s electric gate their suspicions. paced.” And more businesslike. city’s finance officer and treasur- motorcycles and ship them to cus- But it turned out their differences were more Tim Sokoloski is general manager of Enterprise In- er, said the increase in applica- tomers in the Americas. Dakkota imagined than real. “It was wonderful,” said Bying- tegrated Solutions, a software consultancy that does tions for tax abatements has been also will handle Current Motor’s ton-Potter, a former deputy director of the Michigan business on both sides of the state. “West Michigan noticeable. supply chain. Department of Commerce. “Someone came up and is a close community. There is more of an entrepre- This year, the Holland City Council “It’s a huge amount of infra- said, ‘This is so much better than social network- neurial spirit,” he said. On the east side, “there’s a has approved eight applications structure for us to get that kind of ing.’ ” lot more of an automotive mentality: ‘If you want to for a Public Act 198 tax abatement, capital and capacity,” said Cur- The gathering was part of a growing recognition do business with us, you’ll bend to our will.’ ” also known as an industrial facili- rent Motor Executive Chairman that the east and west sides must work together to Jim Dunlap, president of Huntington Bank’s West ties tax exemption. The exemption Lauren Flanagan. “This now al- assure the economic vitality of Michigan. Michigan region, thinks most of the rivalry proba- allows a 50 percent abatement of lows us to focus on next-genera- “It was like two different worlds, two different bly will fade as more business leaders on both sides the taxes assessed on an invest- tion vehicles and marketing” in- states,” said Carl Erickson, president of Atomic Ob- of Michigan realize their fates are inextricably ment in machines for a maximum stead of manufacturing. Flanagan ject, a Grand Rapids software developer. Erickson, linked. of 12 years. said Current Motor employs 10 but who grew up in Bloomfield Hills, thinks that east- — Pat Shellenbarger In 2006 and 2007, Holland ap- plans to double that next year. proved 12 and 13 requests. In 2009, “If we are able to get to the tax incentives for Priceline.com, MSU spinoff closing state plant The Michigan State University at the height of the recession, just 10,000s of bikes,” Flanagan said, which plans to add up to 562 jobs to spinoff also will close the 30,000- two companies applied for the ex- Dakkota can make them. “And its Booking.com call center in 2 years after MEGA tax credit square-foot facility it moved into emption. there isn’t anyone with that kind of Wyoming, near Grand Rapids. The Two years ago, another compa- in September. “Companies are starting to capacity elsewhere in the market.” call center currently employs 396. ny was approved for a MEGA tax Draths uses renewable re- spend ... deciding to invest,” Hol- — Michelle Muñoz The new jobs would be added credit worth $5.2 million and sources such as cornstalks or land Township Assessor Howard over five years. The state projects promised to create an estimated wood waste to develop chemicals Feyen told The Holland Sentinel. Tax break accommodates an additional $5.1 million in tax 200 jobs. Last week, it announced it used to manufacture plastics. “They wouldn’t do it if things Priceline call center expansion revenue from the project. was laying off most of its workers MSU professors John Frost and weren’t looking better.” The center handles calls from and leaving the state. Draths Corp. Karen Draths founded it in Oke- Although it is winding down as customers worldwide who are CEO Dex Brown told the Lansing mos in 2005 then moved the head- Find business news from the state shifts toward another ap- booking hotel reservations. Price- State Journal last week that the quarters to Minnesota in 2007. It around the state at crainsdetroit proach to economic incentives, the line decided to open in Wyoming company has been purchased and returned to Okemos in 2009 and .com/crainsmichiganbusiness. board of the Michigan Economic because its research showed the will lay off all but two of its 40 em- moved to Delhi Township in Sep- Sign up for Crain's Michigan Growth Authority still meets. Last area has a rich base of multilingual ployees. He would not name the tember. The company hadn’t yet Business e-newsletter at crains week the MEGA board approved residents to serve its customers. buyer. qualified to receive the credit. detroit.com/emailsignup. RECESSION THIS.

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October 24, 2011 CRAIN’S DETROIT BUSINESS Page 3 Are there hooks in Kojaian’s lifeline? Focus: Real Estate glued to news of Farkas’ interest in Grubb & El- Investor’s interest has analysts wondering lis, seen as a move to create a real estate empire through his ownership in C-III Capital Partners BY DANIEL DUGGAN Grubb & Ellis, and he is expected to put in more LLC, the nation’s second-largest servicer of CRAIN’S DETROIT BUSINESS money. troubled bond-backed real estate loans. After a $69.7 million loss in 2010 and with the Neither Farkas nor Kojaian responded to in- The troubled real estate brokerage Grubb & El- real estate brokerage’s stock price under $1 terview requests made to their companies. lis Co. may have found a lifeline from a pair of since March, Farkas’ loan follows an $18 mil- Gaining control of Grubb & Ellis would let investment firms providing it emergency loans. lion loan from Santa Monica, Calif.-based Farkas control the entire pipeline of deals that But whether it’s a lifeline for the brokerage’s Colony Capital. start when a loan goes bad and end with a new largest owner — Bloomfield Hills-based C. It’s just part of the ups and downs Kojaian owner hoping to lease space, said Brandon Do- Michael Kojaian and his 22.9 million shares — has seen in his 15-year ownership of Grubb & bell, an analyst covering Grubb & Ellis for What’s Detroit market like remains to be seen. Ellis, as he’s ridden the stock from a $4 pur- Chicago-based William Blair & Co. Last week New York investor Andrew chase price in 1996 to an all-time high of $17 in “In Farkas’ spot, he’s looking at how he can for national developers? Farkas extended a $10 million loan and bought 1997 — to 41 cents last week. $4 million in debt against Los Angeles-based Analysts and real estate brokers have been See Kojaian, Page 32 Page 25

Company index Wire harness These organizations appear in this week’s Crain’s Detroit Business: Abbott, Nicholson, Quilter Esshaki & Youngblood . . 31 Ann Arbor Area Community Foundation ...... 11 price-fixing Ashley Capital ...... 26 Bedrock Management Services ...... 27 Burton-Katzman Development ...... 26 Cafferty Faucher ...... 31 Center for Creative Community Development ...... 1 lawsuits may Coalition for Auto Insurance Reform ...... 33 Coalition Protecting Auto No-Fault ...... 1 Comerica Charitable Services ...... 14 Community Foundation for Southeast Michigan . . . . 11 play out here Council of Michigan Foundations ...... 9, 12 Delphi Automotive ...... 31 DeMattia Group ...... 26 BY CHAD HALCOM Detroit Harmonie ...... 9 Detroit Institute of Arts ...... 10, 12 CRAIN’S DETROIT BUSINESS Detroit Public Television ...... 10 Detroit is likely to remain cen- Detroit Red Wings ...... 3 ter stage in a legal drama now Detroit Symphony Orchestra ...... 12 playing out around the country Emagine Entertainment ...... 27 Etkin Equities ...... 26 over price-fixing collusion among Farbman Group ...... 26 automotive wire harness suppli- Friedman Integrated Real Estate Solutions ...... 26 ers, long after two former execu- Furukawa Electric ...... 3 tives of Furukawa Electric Co. Ltd. Giarmarco, Mullins & Horton ...... 30 plead guilty today in federal court. Gleaners Community Food Bank ...... 9 Grand Sakwa Properties ...... 26 Hirotsugu Nagata, former CFO JOHN RUSSELL/THE ASSOCIATED PRESS Grubb & Ellis ...... 3 of Furukawa’s Plymouth-based Detroit Red Wings players stretch during training camp. Because the team is below the salary cap, it has the financial Guardian Industries ...... 1 U.S. subsidiary, American Furukawa flexibility to make personnel moves by the National Hockey League’s Feb. 28 trade deadline. Hines Interests ...... 25 Inc., from 2004 to 2009; and Junichi Honigman Miller Schwartz & Cohn ...... 31 Funo, assistant general manager Insurance Institute of Michigan ...... 33 of Honda sales at American Fu- Kirco Management ...... 26 rukawa until 2009, are expected to Kojaian Management ...... 26 appear this afternoon before U.S. Lapeer Development ...... 25 Wings can flex financial muscle Lear ...... 31 District Judge George Steeh in De- troit and plead guilty to one count Lutheran Social Services ...... 13 each of conspiracy to restrain Michigan Catastrophic Claims Association ...... 33 trade in violation of the Sherman Team’s below salary cap, can bulk up roster Michigan Community Foundations’ Ventures . . . . . 11 Michigan Department of Treasury ...... 10 Antitrust Act. Michigan Health & Hospital Association ...... 33 Nagata is expected to serve 15 BY BILL SHEA who runs the salary cap tracking Michigan Nonprofit Association ...... 12 months and Funo one year and one CRAIN’S DETROIT BUSINESS website CapGeek.com. Midtown Detroit ...... 27 day in U.S. prisons in the U.S. De- The Red Wings “They’re almost $4.8 million Museum of Contemporary Art Detroit ...... 32 partment of Justice case. For the first time in more than “ under the $64.3 million limit, Paragon Corporate Realty Services ...... 32 The company itself and another a generation, the Detroit Red Wings have more cap which could translate into big- Planned Giving Roundtable of Southeast Michigan . . 13 former executive, Tetsuya Ukai of began a season in the shadow of money acquisitions at the trade Redico ...... 26 the parent company’s Honda sales successful Detroit Lions and Detroit space than I can deadline if they want to bulk up Schostak Bros...... 26 division, have separate court dates Signature Associates ...... 26 Tigers teams. their roster for the playoffs.” St. John Providence Health System ...... 29 in mid-November to enter their Not that it matters to the vener- ever recall. That $4.8 million is deceptive St. John Providence Partners in Care ...... 29 own pleas. Furukawa agreed in able National Hockey League fran- ” because teams pay only the pro- Sumitomo Electric Industries ...... 31 late September to plead guilty and chise, which has made the play- Matthew Wuest, CapGeek.com rated remaining portion of a play- S-Y Systems Technologies ...... 31 pay a $200 million fine in the case. offs for 20 consecutive seasons, er’s annual salary that it picks up TechTown ...... 5 The $29 billion U.S. automotive won four Stanley Cups in that Feb. 28 trade deadline. The Red in a trade. That means the Red The Heidelberg Project ...... 1 wire harness industry has come time and was 4-0 going into Fri- Wings haven’t had much salary Wings could pick up a player with The Physician Alliance ...... 29 UnitedHealthcare Michigan ...... 24 under assault in five states, where day’s game at Joe Louis Arena space in the past, and having such a huge salary who is due only William Davidson Institute ...... 1 10 new lawsuits filed since Oct. 5 against the Columbus Blue Jackets. economic freedom makes an elite $4.8 million or less for the remain- allege the suppliers engaged in Women in Defense ...... 4 But it should matter to every- franchise potentially even more der of the contract year that he Yazaki North America ...... 3 false and deceptive trade practices, one else because the Wings may likely to be successful on and off plays for Detroit. fraudulent concealment, violation be more dangerous than usual the ice. Rafalski, a Dearborn native, of federal antitrust law and unjust this year: For the first time since “The Red Wings have more cap signed a $30 million, five-year Department index enrichment. the NHL instituted a cost-control- space than I can ever recall. contract with Detroit in 2007. In BANKRUPTCIES ...... 7 The 10 civil suits all name, in ad- ling salary cap in 2005, Detroit is Thanks largely to Brian Rafal- May, the defenseman opted for re- dition to Furukawa: not at the payroll threshold. ski’s retirement, this year’s ros- tirement at age 37, which gave the CALENDAR ...... 28 Yazaki Corp. of Iwata, Japan That means the team has the fi- ter actually could have fit under Wings $6 million in immediate CLASSIFIED ADS ...... 29 and/or U.S. subsidiary Yazaki North nancial flexibility to make per- last season’s cap,” said freelance KEITH CRAIN...... 6 See Wire harness, Page 31 sonnel moves, if it needs to, by the hockey writer Matthew Wuest, See Wings, Page 31 OPINION ...... 6 PEOPLE ...... 28 Free small-business webinar Nonprofit jobs RUMBLINGS ...... 34 Two experts from Microsoft will discuss Listings, provided and updated weekly by the THIS WEEK @ WEEK ON THE WEB ...... 34 cloud computing at noon Wednesday. Michigan Nonprofit Association, are WWW.CRAINSDETROIT.COM Info at crainsdetroit.com/events. available at crainsdetroit.com/nonprofitjobs. 20111024-NEWS--0004-NAT-CCI-CD_-- 10/21/2011 4:49 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS October 24, 2011 Women in Defense honors U.S. Navy diversity officer

BY CHAD HALCOM CRAIN’S DETROIT BUSINESS In economic development, it is the debate of “hunting” versus “gardening.” In human resources lingo, it may be lateral recruitment versus professional development. The military uses terms like training, profi- ciency and “ex- ecutive core qualifications,” but for Monica Emerson the principle is the same; growing diversity in the Emerson U.S. Navy’s high- est ranks often means cultivating talent early, usually from within. Emerson will receive the 2011 Excellence in Leadership Award during an annual black-tie gala Nov. 4 at the Royal Park Hotel in Rochester, hosted by the Women in Work smarter for your business. Defense Michigan chapter. Emerson, of Rochester, has been Friendly Navy diversity officer since August 2009, and is principal adviser to the Office of the Assistant Secretary of and the Navy for manpower and reserve affairs. She was previously execu- tive director of the global diversity Familiar. office at then Chrysler LLC, prior to her retirement in 2008. Scan this QR code to visit “The gaps we are seeing in ad- our website and see how vancement are not gaps in intelli- Kosch can work for you. gence or capability, they are gaps in access to opportunity. We can see a positive impact on the nation’s GDP when everyone is participating, and everyone is educated, prosper- ous and safe,” she said. “If some are further behind, we need to reach Call (248) 608-0690 or Email Size, comfort, value and versatility that drives your potential. further to get them and make sure [email protected] The 2011 Sprinter Van — exclusively at Mercedes-Benz of Novi. Visit us today to they have what they need to be.” see one of the area’s largest Sprinter inventories. Nancy Loerch, president of the WID Michigan chapter and execu- 324 East Street Mercedes-Benz of Novi tive vice president of Orion Town- 39500 Grand River Ave. ship-based engineering consultant Rochester, MI Novi, MI 48375 firm Archetype Joint LLC, said Emer- 48307 248-426-9600 (Sales & Service Available Now) son’s background in Michigan in- (248) 608-0690 www.mercedesbenzofnovi.com dustry and diversity programs made her a logical choice for the organization’s honoree this year. “In addition to being a home- grown Michigan woman, she also represents a background in more than one industry, representing both automotive and defense,” Lo- erch said. “That is diversity itself.” Women in Defense also will pre- sent during the gala three Horizon THE RIC GONZALEZ MEMORIAL Industry Awards for excellence of achievement for the defense or homeland security industries. FOUNDATION SCHOLARSHIP FUND Finalists include Jillian Warner and Anreet Jawanda from BAE Sys- HONORS ITS HISPANIC HERITAGE tems Inc., which soon will open its new Michigan headquarters in BY OFFERING YOUTH A FUTURE. Sterling Heights, for product de- velopment; a team at General Dy- namics Land Systems under Joanne Join us Nov 12TH for our 7TH annual bocce fundraiser. Cavanaugh at the company’s Ma- www.gonzalez-group.com/our-commitment/rgmfa/ neuver Collaboration Center in Sterling Heights; Muge Cody of Vir- ginia-based IT services and logis- tics contractor ManTech Internation- al, for supply chain development; Helen Watson and team at Dear- 29401 Stephenson Highway born-based ASG Renaissance; and Madison Heights, MI 48071 Karen Arondoski and team at Ro- seville-based custom manufactur- 248 548 6010 er I.F. Metalworks Inc. www.gonzalez-group.com For more information, visit wid- mi.org or call (248) 643-6590. Crain’s Detroit Business is a AEROSPACE | DEFENSE | AUTOMOTIVE sponsor of the awards. 20111024-NEWS--0005-NAT-CCI-CD_-- 10/21/2011 4:49 PM Page 1

October 24, 2011 CRAIN’S DETROIT BUSINESS Page 5 TechTown leadership change is real-life lesson for startups

BY DUSTIN WALSH Before joining the MEDC, Smith People over 50 are nearly twice CRAIN’S DETROIT BUSINESS served as CFO for Ann Arbor- as likely to launch startups in the based real estate firm McKinley Inc. fields of aerospace, defense, health There’s a time when every suc- and director of real estate for Dal- care and technology as entrepre- cessful startup moves beyond ear- las-based Trammell Crow Co. out of neurs under 30, according to a 2009 ly-stage financing and toward its Auburn Hills office in charge of study by the Kansas City-based Ew- business expansion — often with- the Volkswagen of America portfolio. ing Marion Kauffman Foundation. out its visionary behind the wheel. “If TechTown is going to be the “The image of people over 50 go- No one understands this better best business incubator in the ing into gentle retirement down in than Randal Charlton, serial entre- world — and I believe it can be — it Florida or wherever is so 20th cen- preneur and ex- has to be scaled, and scaled dramat- tury,” Charlton said. “If you look at ecutive director ically,” Charlton said. “It needs the demographics of what’s happen- of Wayne State someone with really strong admin- ing in this country, what’s happen- University’s busi- istrative skills and with Leslie’s ca- ing in the Western world, you’ve got ness incubator reer experience and strong back- an emerging population in their TechTown. At the ground in economical development; 50s, and they have to keep working, end of the she is clearly the ideal candidate.” not just for themselves, but for the month, he will During the past 15 months, Smith sake of society.” step down, to be and Charlton have worked together Charlton said the nonprofit will succeeded by to secure the incubator’s financing, assist with startup services, men- Leslie Smith, NATHAN SKID/CRAIN’S DETROIT BUSINESS Charlton Leslie Smith says she’ll focus on regional business development — not just including securing a $2 million line torship opportunities with younger general manager startup support — as executive director of Wayne State University’s TechTown. of credit for 10 years for the incuba- entrepreneurs and “senior intern- and former Michigan Economic Devel- tor’s build-out of its Tech Two build- ships” — placing people over 50 in opment Corp. director of business ac- yond startup phase when they can ness development. As director of ing — the former Dalgleish Cadillac internships in emerging fields. celeration. operate without assistance — al- business acceleration at MEDC, building around the corner from “Nothing says that an intern has The time has come, Charlton lowing the incubator to work with Smith oversaw a $300 million in- the Tech One building on Bur- to be 18, 19, 20 and in college,” he said, that the incubator he champi- more and more companies. vestment portfolio from the state roughs Avenue. said. “What better way of bridging oned needs a leader, not a vision- “Randal certainly did do a terrif- and led the state’s SmartZone pro- Skipp Simms, senior vice presi- the gap between baby boomers and ary. His human tissue bank startup ic job getting it rolling, and Leslie grams — which include TechTown. dent at incubator Ann Arbor Spark, Generation X, or Y or recent college Asterand Inc. was the first tenant at has got the capability of going for- She said she left the MEDC to be said like any startup, a founder can graduates than being an intern?” TechTown in 2005, before he be- ward,” Gilmour said. “We’re sad to on the ground floor of economic take the company so far before hav- No timeline for the nonprofit is came executive director in 2007. see Randal go, but I think it’s a good development. ing to bring in a new leader. in place, but Charlton and his “One of the things you have to transition at this time. Under “Being at a macro-economical de- team have met with the national learn in life is what you’re not good Leslie, we want greater size, scope velopment organization distances and local presidents of AARP to at, and no one has ever accused me and greater impact and influence.” you from the action, but being Down, but not out “enthusiasm,” he said. of being a great administrator,” based regionally puts you into im- Charlton will still be involved Charlton will spend the other said Charlton, 71. “TechTown has mediate proximity to what’s hap- part time with a new nonprofit half of his time with family in the reached a point where even if I was- Regional to local to regional pening,” she said. “The things Tech- venture, Boom! The New Economy. U.S. and England. n’t retiring, even if I wasn’t doing Smith, born in Detroit, joined Town has going on in the city The organization, based in Tech- Dustin Walsh: (313) 446-6042, this voluntarily, it would be right to TechTown in July 2010 after an ex- provided a natural way for me to en- Town, will specifically address the [email protected]. Twitter: make a change. tensive career in statewide busi- gage the action.” needs of entrepreneurs over 50. @dustinpwalsh “I wanted to find someone that is not only better, but significantly better. I found that someone in Leslie, who will take this to a com- pletely different level.” TechTown will move in a new di- rection under Smith, 44, who will TH serve as president and CEO, ex- 46 ANNUAL panding the incubator beyond a startup support entity into a region- al business development agency. TechTown is home to more than 250 startups and has set its financial roots under Charlton. Smith is set to expand its commercialization ef- BROAD EXECUTIVE FORUM forts when she takes over Nov. 1. “We’re going to continue to re- fine what we do but also focus on OF DETROIT launching programs to attract more high-tech, high-growth com- TUESDAY, NOVEMBER 8, 2011 | 4-8:15 P.M. panies,” Smith said. “To some de- gree, we’ve missed the commer- QUICKEN LOANS HEADQUARTERS-COMPUWARE BUILDING cialization opportunities coming 1050 WOODWARD AVE, DETROIT out of Henry Ford (Henry Ford Health System), DMC (Detroit Med- Learn about the solid business and economic strategies behind “Live … work … and play in Detroit”and how these new urban ical Center) and Wayne State, and investments are focused on stopping the “brain drain” of the state’s brightest and best talent. Attendees will tour that will be a focus.” Quicken Loans’ innovative, award-winning Detroit workplace. Smith said that while focusing on more commercialization, she will PRESENTED BY FEATURED PANELISTS ATTENDANCE IS LIMITED continue to push and expand entre- MSU Broad College of Business Jim Anderson preneurial services, such as the ser- Cost: MSU College of Engineering Founder, President and CEO of Urban Science vices targeted at women TechTown $100 per person, Group rates available began offering this year in partner- KEYNOTE ADDRESS BY Stefanie Lenway ship with Detroit-based Inforum. Dean of the MSU Broad College of Business E-mail: Dan Gilbert Connie Lawson | [email protected] “There are a lot of women entre- Founder and Chairman, Quicken Loans Inc. Donald E. Snider preneurs in Detroit, and we will Majority Owner, Cleveland Cavaliers continue to identify trends and de- SVP Urban Economic Development, MEDC Register: events.org/2011detroitforum_pmc velop programming,” she said. HOSTED BY “We’re moving out of a 100-year re- Philip Fioravante ality and into our new 100-year real- President NA-Commercial, Woodbridge Group ity, which is independence from a singular industry, independence from big business and awareness of the importance of export and how we engage in an international econ- omy we haven’t historically partici- SPONSORED BY pated in.” WSU President Allan Gilmour said he hopes that under Smith, TechTown will begin “graduating” companies — growing them be- 20111024-NEWS--0006-NAT-CCI-CD_-- 10/21/2011 5:44 PM Page 1

Page 6 CRAIN’S DETROIT BUSINESS October 24, 2011 OPINION TALK ON THE WEB From www.crainsdetroit.com State business court Reader responses to stories and Re: Severance dustup puts Ficano in the spotlight blogs that appeared on Crain’s website. Comments may be I am not ready to jump on the agree to this is zero. edited for length and clarity. bash-Ficano MikeInMi train until the would be smart rule Re: Possible auto insurance changes FBI investiga- This story is just beginning. If the coverage for the seriously tion is complet- Stay tuned. ed. It seems like Dirt Dog ov. Rick Snyder may accomplish yet another major injured is limited and they can (no) longer earn a living, and/or he is cooperat- business initiative for Michigan: creating a specialized need full-time care for the rest of ing, which is What else is going on under Fi- reassuring. ... cano’s and the commissioners’ G business court for the state. their lives, who will pay? Medicaid This is just a collective noses? He probably Crain’s Chad Halcom reported on crainsdetroit.com last and Medicare — and that means power play for gave them a half-day suspension. week that the governor’s office is working with lawmakers on you and me. commissioners Wayne County is the place to go. Ms. Nana draft legislation to establish at least one business court judge and other lead- Ficano Hurry and get on the payroll before in each of the state’s four Michigan Court of Appeals districts. ers who I’m sure would want they find out what is going on. This is good news for businesses that find themselves in lit- Re: Detroit-Windsor bridge fails to nothing more than to see Ficano Richard Cooper igation over a variety of issues. The new court would handle clear Senate committee out for personal gain. complex governance disputes, intellectual property law, trade I can’t believe the Democrats are RMeloni I don’t think Wayne County can af- ford this type of leadership. secrets cases and commercial real estate litigation. abandoning their Del Ray con- stituents. What are they thinking? Sounds to me as though some- Tom Ryan A business court could streamline circuit court dockets normhy one got caught with their hand in and give judges with deep experience in complicated business the cookie jar. … Ficano must Obviously, Ficano needs to be and intellectual property issues a chance to hear and expedite Re: People Mover will stop moving in think that his rhetoric and accu- suspended. I wonder how many cases. This is a smart move for Michigan’s legal system. sations will placate the voters of other arrangements were paid “by December unless it finds funds Wayne County. Dream on. mistake.” Now, if we cannot manage to keep Belleville Bob Aston Martin a baby rail system like the People No-fault changes must cut rates Mover in operation, in the heart of Who in their right mind blows Selling 320 acres for $1 and the region’s anchoring city, what off a plainly questionable $200K then spending $26 million for in- Michigan is poised to make significant changes in its no- makes us think things like the M1 payment to anyone as a mistake, frastructure improvements to fault insurance laws. light-rail project will be sustain- glitch, or oversight? someone who can just walk away Michigan is the only state out of 12 that have no-fault cover- able? Cornwallis while leaving the taxpayers hold- age to have unlimited personal injury protection coverage and J.T. Pedersen ing the bag smells awfully fishy. lifetime medical care to people who are injured. Typical story of a guy finding Need to get some people on the Re: Cuts in store liquor taxes scapegoats so he can keep his stand and under oath. Clean that As Amy Lane reports on Page 1, Gov. Snyder waded into own job. The likelihood that Fi- cesspool up. Rather than eliminate the tax on the no-fault debate when Michigan lawmakers signed onto cano didn’t know about and RG store purchases, why didn’t they add dropping Michigan’s much-debated motorcycle helmet law. the tax to bar and restaurant pur- Michigan motorcyclists pay into the no-fault pool. But they chases? they are going to “surcharge” me The delay in even having a vote, represent a disproportionate percentage of claims even though RobertArch for storms that presumably were much less actually starting the they only receive benefits if injured in an accident involving an act of the same God? That is be- construction, is embarrassing. another vehicle. Re: Keith Crain on burying power lines yond unacceptable. Shame on all in Lansing. Here are Beth jobs waiting to be had and again If and when Michigan drops its helmet requirements, more We have been saying that the we wait. Please get on with it and severe brain injuries from accidents likely will occur. So be- lines should be buried since we Re: Indy cars return to Detroit OK the bridge. moved to this area in 1995. My wife, fore the medical bills mount, Snyder’s office is working with It would be nice to build a perma- William J who is Hungarian, compares the lawmakers to cap what auto insurance will pay for medical nent track at the state fairgrounds in- situation with the dangling electric stead of at Detroit’s best park. It is costs. Once an injured person hits the cap, coverage would re- lines to that of a Third World country. Re: Income falls amid slow change really sad what they do to Belle vert either to private insurance, Medicare or Medicaid — or Doctor E. I hope that the emphasis on learn- become a personal liability of the injured person. Isle prior to and just after the race. James Jenkins ing and investing in K-12 is not lost A fee schedule is certainly reasonable. But Lane also re- This unaccountable public utili- when it comes to setting budgets, ports that lawmakers have tacked on a $50,000 appropriation ty redefines the word chutzpah, Re: Snyder and Detroit River crossing as it seems to have been recently. to pending bills for “citizen education” on the changes in no- and the Public Service Commis- Anne Osmer sion does nothing. Last year my Crain’s Detroit Business should fault laws in an attempt, critics say, to head off a voter referen- street was out for five days. DTE publish a list of committee mem- dum; appropriation bills are exempt from ballot proposals. said they were working on it; we bers, their votes and “political con- Re: Trinity to move to Quicken space At any rate, the state should make sure that insurers’ discovered they had not even been tributions” received. I think it I’m very happy to hear that this promises of cheaper auto insurance rates as a result of these to our street after four days. When would be interesting to see how little building will be occupied and not reforms are guaranteed. I sent them a claim for 80 bucks of it costs to “influence” a state repre- sitting vacant for an extended period spoiled food, they declined it, say- sentative. of time. For a lively debate on this issue, check out the blog by ing it was an “act of God.” So now Rock Nancy52 health care reporter Jay Greene on crainsdetroit.com, titled “Unanswered questions about the pros and cons of reform- Send your letters: Crain’s Detroit Business will consider for publication all signed letters to the editor that do not ing Michigan’s no-fault insurance law.” defame individuals or organizations. Letters may be edited for length and clarity. Email [email protected] KEITH CRAIN: Another jewel in the state of Michigan Recently I had a medical prob- of the entire facility The hospital exists on care. People come from all over the treatment of patients, the animals lem with our family pet, Annie, from Dr. Pat LeBlanc, referrals from veteri- country and the world to practice and pets of our state. So it becomes when we learned she had a malig- who runs the school; he nary doctors all over and train at MSU. Our medical an interesting challenge for this nant tumor in her eye. filled me in on some the state and perhaps school assistant, Meghan, was hospital/school to balance cost We were sent to the Michigan background and a bit of even the Midwest. They from San Diego and willing to go with care, something human hos- State University Veterinary its history. treat animals like An- significantly into debt to be able to pitals don’t have to worry about. Teaching Hospital on the MSU MSU’s prominence in nie, with difficult condi- get her training from MSU. It’s nice to know such a resource campus. I was quite overwhelmed veterinary medicine tions. Petersen-Jones and his wife, exists to treat animals and train the with the facility. stems from MSU being a During my tour, I also a surgeon, moved from Eng- next generation of veterinarians. Simon Petersen-Jones is a re- land grant school; it was saw a horse being oper- land to East Lansing simply be- And yes, Petersen-Jones per- markably caring surgeon who spe- a part of its mission to ated on for some condi- cause it was the best. A great trib- formed the surgery. Annie, an cializes in both eyes and cancer. treat animals, mainly tion; they even have a ute to the educational facility. English golden retriever, seems to The entire staff — students, resi- farm animals. Today the school 24-hour intensive care unit for But this teaching facility is a bit be well on her way to recovery dents and doctors — were very has a hundred doctors of veteri- critically ill animals. public and a bit private. Although and, we hope, a long and happy compassionate and quite qualified nary medicine, all specialists It is a remarkable facility that MSU pays all the salaries of the life. to my non-professional eyes. treating patients, doing research most of us would be oblivious to — doctors, the rest of the operating Another jewel in our state I was lucky enough to get a tour and teaching. until our pet needs specialized expenses are generated by the everyone should appreciate. 20111024-NEWS--0007-NAT-CCI-CD_-- 10/21/2011 4:50 PM Page 1

October 24, 2011 CRAIN’S DETROIT BUSINESS Page 7 Wis. group gives biz a lesson on cutting health care costs

BY JAY GREENE customer ser- below Midwest averages and 13 narrow network and physicians,” Reynolds said. CRAIN’S DETROIT BUSINESS MORE COVERAGE vice, monthly percent below the overall average to a broad net- In a roundtable discussion after performance costs in southeast Wisconsin, work,” said the presentation, Mary Ellen Ben- Businesses in Southeast Michi- Ⅲ See Crain’s reports, Kiehl said. Reynolds, who zik, M.D., medical director of Inte- gan that want to improve the quali- Nov. 14 issue for claims audits Members of the group have is on the board grated Health Partners and its Cal- ty of their employees’ health care more outcomes of the health care and quarterly saved $92 million over the past of the business houn County Pathways to Health and lower costs today were offered a summit. meetings in four years. Companies have an es- group. “We tried initiative, said the small employer model of how these goals are being Humana’s timated return on investment of to do every- coalition was formed five years achieved in a neighboring state. corporate of- 17-to-1 on administrative costs. thing, and it did- ago with a key group of visionary Leading off Crain’s Health Care fice in Louisville, Ky., Kiehl said. Craig Reynolds, director of em- Reynolds n’t work.” CEOs. Leadership Summit, Dianne Kiehl, The business group’s success ployee benefits for Briggs & Stratton But in 2005, “We have made mistakes,” Ben- executive director of the Business can be measured in rising quality Corp., said the southeast Wisconsin everything changed when the zik said. “If we collectively work Health Care Group LLC of southeast and lower costs, she said. group represents the culmination of large employers in southeast Wis- together, we will head in the same Wisconsin, said the 1,200-member For example, southeast Wiscon- nearly 30 years of trying to come up consin decided to overhaul their direction” as the southeast Wis- purchasing coalition has held sin’s health care costs in 2005 aver- with the right formula for a health purchasing model and go to a sin- consin group. health care cost increases to aged 39 percent above the market care purchasing group. gle-source contract with Humana. Jay Greene: (313) 446-0325, 1.4 percent over the past five years. average in the Midwest. By 2010, “We struggled in the past to “We have one quality database [email protected]. Twitter: “The key to our success is the average costs dropped to 6 percent measure quality and went from a and a narrow network” of hospitals @jaybgreene CEOs put their name on it” and are committed to the success of the 8-year-old business group, said Kiehl, a registered nurse who has led the group since it was Kiehl made up of from 12 companies. Today, the Busi- ness Health Care Group compris- es up to 1,200 companies with more than 115,000 people covered. More than 600 attendees gath- ered at MotorCity Casino-Hotel in De- troit for Crain’s third annual health care summit, which this year focused on the future of em- ployer-sponsored health care. With full implementation of the Affordable Care Act of 2010 coming in 2014, employers of all sizes are considering the massive changes facing their employee benefit plans. Those changes promise to be just as revolutionary as when Medicare was introduced 46 years ago, said Dan Loepp, CEO of Blue Cross Blue Shield of Michigan. Kiehl said employers in metro Detroit can learn from the south- east Wisconsin group’s experience. “What works in Milwaukee might work in Detroit,” Kiehl said. Asset-based fi nancing strength “Whatever Detroit does, they can have a positive impact on costs and quality and can change the market.” to help Olympic Steel prove its metal One of the features of the south- east Wisconsin group is a partner- ship with Humana, which it has con- through challenging markets. tracted with exclusively since 2005. “Humana has opened its doors ™ and offers complete transparency Opportunity at every step. (to clinical and cost data) and is a true partner,” Kiehl said. Under the contract with Hu- mana, the business group has a ded- For over 57 years, one of Olympic Steel’s greatest strengths has been exceeding client expectations. icated service unit that provides Bank of America Business Capital has forged a close relationship with Olympic Steel using a similar approach. We recently engineered an innovative $335 million facility expansion that enabled the company to acquire BANKRUPTCIES Chicago Tube & Iron while achieving a lower cost of capital despite steel industry volatility. Melding powerful The following businesses filed for ideas and commitment delivered with the experience of the leading asset-based lender.* Chapter 7 or 11 protection in U.S. Bankruptcy Court in Detroit Oct. 14-20. Under Chapter 11, a company files for reorganization. Chapter 7 involves to- Visit bankofamerica.com/businesssolutions2 tal liquidation. George’s Gas and Convenience Inc., 384710 Thorwood, Harrison Town- ship, voluntary Chapter 7. Assets: $1,970; liabilities: $153,508. Crown V Ranch LLC, 646 Duchess, Mil- ford, voluntary Chapter 7. Assets: $735; liabilities: $33,870. *Ranked No. 1 U.S. bookrunner of asset-based loans by Thomson Reuters 1H 2011. Hartley and Associates of Michigan, “ Bank of America Merrill Lynch” is the marketing name for the global banking and global markets businesses of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affi liates 51063 Plymouth Lake Court, Ply- of Bank of America Corporation, including Bank of America, N.A., member FDIC. Securities, strategic advisory, and other investment banking activities are performed globally by investment banking affiliates of Bank of America Corporation mouth, voluntary Chapter 7. Assets: (“Investment Banking Affiliates”), including, in the United States, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Merrill Lynch Professional Clearing Corp., all of which are registered broker-dealers and members of FINRA and SIPC, y y $1,275; liabilities: $338,657. and, in other jurisdictions, by locally registered entities. Investment products offered by Investment Banking Affiliates: Are otN FDIC Insured May Lose Value Are Not Bank Guaranteed. ©2011 Bank of America Corporation ARM1N4G5 — Michelle Muñoz 20111024-NEWS--0008-NAT-CCI-CD_-- 10/21/2011 4:51 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS October 24, 2011 Answers to questions building around Ficano, Mullin

BY NANCY KAFFER was investi- torney Steve Fishman — who rep- Former federal prosecutor the Wayne County Commission to CRAIN’S DETROIT BUSINESS FOCUS ON FICANO gating the resented former Detroit City Council Richard Convertino filed a peti- remove the executive “for cause,” severance, member Monica Conyers, now in tion to recall Ficano last week on but doesn’t define the term. The fallout from the $200,000 The story behind and the prison on a bribery charge, as a behalf of a client. If the office becomes vacant, the parting bonus paid — and with- Wayne County county said “prudent” measure. If certified, the petition needs deputy executive — the currently pensions, Page 34 drawn — to Turkia Mullin contin- the FBI had The snowballing scandal has signatures from the number of suspended Azzam Elder — be- ued to pile up on Wayne County Readers weigh in, comes the executive until a special Page 6 subpoenaed raised many questions. Here’s a county voters equal to 25 percent Executive Bob Ficano last week. records. quick primer on a few of them. of the number who voted in the election held concurrently with Michigan Attorney General Bill Ficano said he expects to be ex- last gubernatorial election. the next county general election. Schuette announced that the FBI onerated, but hired well-known at- Can Ficano be removed from office? Also, the county charter allows If the deputy executive can’t serve, the commission has three months to appoint a replacement. Exceptional Leadership. Does Mullin own a house worth more than $2 million in Birmingham? Delivered. No, but until recently she lived there with her sister, plastic sur- geon Mariam Awada, in a house that’s on the market for $2.2 mil- lion. Mullin recently bought an- other home in Birmingham for $525,000, according to county land records. Mullin is the former owner of a home in Northville, which at one time had a mortgage for roughly $322,000. She later deeded the house to Cardinal Adam Maida for $1.

Michigan’s Premier Retained How did Mullin get her current job as CEO of the Wayne County Airport Executive Search Firm Authority? Authority members Sue Hill, Charlie Williams and Samuel Nouhan constituted a committee that worked with Southfield-based Trustinus LLC on a national search LLC that produced 60 candidates that International Executive Search eventually were narrowed to six. Tel: +1.248.645.1551 • www.huntergroup.com One of those was Mullin, who was ratified by the full authority after being recommended by the committee. A series of connections has made some question the process. Among them: Authority chairwoman Renee Axt also chairs the nonprofit Wayne County Business Development Corp., which paid a $75,000 bonus to We Know Complex Litigation Mullin in her previous job as coun- ty development chief. Crain’s was told Axt received a legal opinion saying it wasn’t necessary to re- cuse herself from the decision. Big problems Trustinus owner Jack Krasu- la was an investor in a racetrack are often synonymous development that got land for $1 through Mullin from Wayne Coun- ty. The authority said Trustinus with big litigation got the job by being the low bidder. Williams earned $420,000 for Class actions, drug and medical device cases, and helping to orchestrate a land sale multidistrict litigation involve unique challenges for courts to build a new county jail. Mullin and lawyers. Our experienced attorneys and professionals signed off on the deal. Williams said the fee was paid by the casino are regularly appointed as lead counsel in such cases. that owned the land. We represent businesses, individuals, and government Nouhan and his law firm have entities in courts throughout the country. collected fees totaling $1.2 million representing the county in litiga- tion over court funding, according If you are facing the prospect of complex litigation, to The Detroit News. we can help you decide what to do next. Is Ficano part of “the McNamara Call attorneys Jason Thompson or machine”? Not really. Ficano’s entrée to Lance Young for a free case evaluation. county government was via late County Clerk James Killeen, who made Ficano his deputy. And, according to Bill Ballenger, editor of Inside Michigan Politics, Ficano and the late County Execu- tive Ed McNamara “didn’t neces- sarily get along that well.” Ficano served as county sheriff from 1983 until he was elected >^^ d/KE^ͻ &>^ K>>d/s d/KE^ͻ Dh>d//^dZ/d >/d/'d/KE ΈD>Ή ͻ D^^ dKZd^ͻ KE^hDZ >/D^ county executive in 2002, and bat- tled McNamara for both funding www.sommerspc.com | 248-415-2234 | 1-888-884-3878 | 2000 Town Center, Suite 900, Southfield, MI 48075 and political attention. Nancy Kaffer: (313) 446-0412, ADVERTISING MATERIAL [email protected]. Twitter: @nancykaffer 20111024-NEWS--0009-NAT-CCI-CD_-- 10/21/2011 11:10 AM Page 1

October 24, 2011 CRAIN’S DETROIT BUSINESS Page 9

REPORTER’S NOTEBOOK Extra

Sherri Welch writes about nonprofits and services. Call (313) 446-1694 or write [email protected] estate planning and philanthropy Sherri Welch Harmonie seeks ‘natural’ diversity Detroit Harmonie, a nonprofit The take on future giving launched early this year by two young Jewish entrepreneurs to create “natural”— as opposed to forced — diversity in the city, is picking up speed. Nonprofits consider impact of Michigan’s expiring donor tax credits Led by Jordan Wolfe and Jeffrey BY SHERRI WELCH Epstein, who run for-profit, Web-based businesses, the group has raised about CRAIN’S DETROIT BUSINESS half of its $200,000 goal in about six months. s year-end campaigns begin, many nonprofits are beginning one final The support has come primarily A push to bring in gifts leveraged with through corporations and foundations, including Jaffe Raitt Heuer & Weiss PC, state charitable tax credits that expire PVS Chemicals Inc., Masco Corp. Dec. 31. Foundation, the Fred A. and Barbara M. Many nonprofits that have benefited Erb Family Foundation and the Miami- from the tax credits for 20-plus years are based John S. and James L. Knight working to make their supporters aware Foundation. of the expiring credits. Others are less What every major city has that no concerned about a dramatic impact from one is talking about, but Detroit the repeal. doesn’t have, is natural diversity, said “I think people give for the cause first Wolfe, a partner in Evidence Based and the tax credit or other Literacy Instruction and chairman of tax considerations sec- Detroit Harmonie. MORE DOUBTS ond,” said Gerry Brisson, “We have the diversity here … Federal taxes: senior vice president of communities of different cultures, but Charities, donors advancement at Gleaners they’re not meshed,” he said. keep an eye on Community Food Bank of upcoming changes, Southeastern Michigan. Meshing those cultures “is a key Page 12 part of the environment young people Without the state tax in- want to be around.” centives, the only donors “I would argue that anything around who would fall off are those who give only food or sports brings cultures because of the incentives, he said. together,” Wolfe said. “And I don’t see a lot of evidence to sug- Ira Jaffe, a partner at Jaffe Raitt, gest there’s anyone who gives only be- helped refine the goals of Detroit cause of the tax incentive.” Harmonie and has helped open doors The Michigan tax codes provide a to supporters. 50 percent credit of up to $100 for individ- There have been many efforts to try uals on a $200 gift, a credit of up to $200 to make Detroit a cool city, but that for married couples on a $400 gift and a isn’t really the way it happens, he credit of up to $5,000 for business taxpay- said. “It’s getting the young people in ers on a $10,000 gift. their own mind to believe and act as if Still, there’s room for concern, others it’s a cool city.” say. “It is important that people who “All the research confirms tax policy understand what would make younger doesn’t affect if people give,” said Council people excited have input in what’s of Michigan Foundations President Rob Col- funded,” Jaffe said. lier. “It affects how much they give.” Detroit Harmonie plans to use much of the money it raises to make Tax law changes grants to a handful of established projects or groups working to foster a Gov. Rick Snyder signed legislation in more diverse community that is May that amended the Michigan Income

attractive to young professionals. Tax Act. Among other things, the legisla- JOHN SOBCZAK It plans to announce the first tion eliminates the credit for contribu- Gerry Brisson, senior vice president of advancement at Gleaners, says, “I think people give for $50,000 in grants among five groups tions to several categories of nonprofits: the cause first and the tax credit or other tax considerations second.” that are community building in nature public institutions — including Michigan and led by young professionals at an colleges and universities and their lion in 2009, said Terry Stanton, director porate contributions to Gleaners during event planned for February, Wolfe said. fundraising arms — public libraries and of communications for the Michigan De- fiscal 2011 ended Sept. 30 would have Those efforts could include opening a museums and public broadcasting sta- partment of Treasury. qualified for the tax credit. trendy restaurant or Inside Detroit’s tions. Also eliminated were credits for do- Donations to nonprofits in the tax cred- But he’s not overly concerned with the tours of the city, he said. nations to homeless shelters, food banks it areas would have been double that, or loss of the credits, since giving didn’t in- “It’s all about what the next and community foundations beginning $86 million, last year and $92 million the crease perceptibly at Gleaners when the generation is doing on the grass-roots with the 2012 tax year. year before. credits came into effect in 1992, he said. level and providing them with money The state credits totaled a tentative Brisson said all 49,000 gifts that made they wouldn’t typically have access to.” $43 million last year and nearly $46 mil- up the $10 million in individual and cor- See Giving, Page 10 Detroit Harmonie plans to use another portion of the money it raises to hire a young professional to oversee grants its makes and create a HOW STATE TAX CREDITS WORK dashboard to track progress in The Michigan tax code provides a this year. For the wealthiest donors, that would be bringing young people to Detroit. 50 percent credit of up to $100 for Through Dec. 31, a donor who makes a gift $33-$35 back on their federal return, plus “We’ll measure the impact of these individuals on a $200 gift, a credit of up to of $100 as an individual and itemizes the soon-to-expire $50 credit on their state organizations and … provide that to $200 for married couples on a $400 gift federal taxes can write off up to 35 percent return. the government and other and a credit of up to $5,000 for business of the gift, depending on the donor’s “That tax credit is really magic — if you taxpayers on a $10,000 gift. organizations,” Wolfe said. “At the end federal tax bracket, said Gerry Brisson, make a $100 gift and you’re in the highest of the day, if we’re going to be an Coupled with federal charitable senior vice president of advancement at federal tax bracket, you’re going to get $83 attractive place for young people — deductions, the state credits incentivize Gleaners Community Food Bank of back. So you’re making a $100 gift for young people have to create that.” giving, nonprofits said — until the end of Southeastern Michigan. $17,” Brisson said. 20111024-NEWS--0010,0011-NAT-CCI-CD_-- 10/21/2011 10:23 AM Page 1

Page 10 CRAIN’S DETROIT BUSINESS October 24, 2011 Finance Extra Giving: Credits expiring ■ From Page 9 Brisson also points to a 2004 study by the Washington-based RETURNS CLAIMING CREDITS Brookings Institute, Charitable Tax More than 250,000 taxpayers Credits: Boon or Bust for Nonprof- claimed one or more of the three its?, that he said found tax credits Michigan charitable tax credits in on their own didn’t seem to in- 2010, according to the Michigan crease the total amount of philan- Department of Treasury. thropy in the region, although The credits totaled an estimated they did add to charities that mar- $43 million last year for keted the tax credit. $86 million worth of gifts made to “I don’t think a year from public institutions, food banks and Christmas we’re going to see a homeless shelters and funds held massive drop in donations be- by community foundations. cause there’s no tax credit,” he The department is still finalizing its said. 2010 tax year report, but tentative data indicate: “But without the credits, some Ⅲ people will reconsider which non- About 244,700 state tax returns claimed $21.9 million worth of profits they support,” which could credits for contributions to a public have a long-term impact on the institution last year. nonprofits that had benefited from Ⅲ Another 234,100 tax returns the credits. claimed $18.8 million in credits for Gleaners plans to thank donors donations to food banks or who have given and remind them homeless shelters. this is the last year for the tax Ⅲ 33,600 returns took credit, he said. But more impor- $3.1 million total in credits for a tantly, “I think we’ll begin to tell gift to a fund held by a Michigan people how we’re counting on community foundation. their support once the tax credit goes away.” of the tax credit to remind them it “I think our communication will soon be gone. Those contribu- strategy will be more around how tions totaled about 3 percent of to- much good gets done from every tal revenue last year, or just over dollar spent on feeding a hungry $1 million, Erickson said. neighbor,” Brisson said. “We certainly have seen busi- nesses use the tax credit more fre- quently than individuals,” she Public and cultural institutions said. “This will give (them) a cred- It’s difficult to assess the impact it and us some much-needed sup- the loss of the public institution port.” tax credit will have on gifts to the Detroit Public Detroit Institute of Arts, said Ann- Television has marie Erickson, seen the number executive vice of donors con- president and tacting it for du- COO. plicate gift re- But under- ceipts spike this standing there year, said Se- is likely to be nior Vice Presi- some impact, the dent Dan Alpert. museum is re- Last year, the Alpert minding indi- station received vidual donors Erickson 220 such requests the whole year. that the tax During the first nine months of credits expire after this year, she this year, it’s had 435 requests for said. duplicate receipts. It’s putting the most emphasis “This tells me people are much on writing or calling corporate donors that have taken advantage See Next Page

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October 24, 2011 CRAIN’S DETROIT BUSINESS Page 11 Finance Extra

From Previous Page development of community foun- turns — to take a credit on their them are tax credit gifts, Ferriby It plans to also produce some more conscious and want to get dations and permanent communi- state return, said Robin Ferriby, said. public education spots for a print their credit, which is going away. ty endowments in the state since it vice president of Any decline in gifts made to un- and broadcast campaign that will So it is a factor in their giving,” was put in place in 1989. philanthropic restricted funds will affect the launch in late October, but Ferriby Alpert said in an email. Michigan community founda- services at the amount of grants the Community could not say exactly how much The question of whether a gift tion assets grew from $300 million Community Foun- Foundation makes. the foundation plans to invest in made to the station will qualify for in 1989 to over $2.5 billion in 2008, dation for South- “But the expiration of the tax the campaign. the tax credit comes up again and the group said on its website. east Michigan. credits will impact gifts that sup- The hope is that the educational again during its year-end drive, he That, in turn, increased grant “It’s not a port agency endowments at the materials and campaign will gen- said. making by community founda- large dollar Community Foundation the erate new gifts before year’s end, “Next year when we will have to tions to more than $130 million in amount from most,” Ferriby said. Ferriby said. say ‘No,’ it will be a serious drag 2008, from $1.7 million in 1989. our perspec- The foundation is developing ed- “We have people who have been The credit also has been an im- tive,” he said. ucational pieces that it will share taking advantage of these gifts on the conversation,” Alpert said. Ferriby And not being able to use the portant tool for creating scholar- “But it’s a sig- with the nonprofit community on over the years, but we hope to get credit as a motivator during on-air ship funds at community founda- nificant number of the gifts we the expiring tax credits, so that people who hadn’t been aware of campaigns “will be a drag on the tions, at a time when tuition costs process each year.” nonprofits, in turn, can remind these credits to make gifts,” he number of pledges,” he said. are going up, Collier said. Of the total 2,500 gifts the foun- their donors about the impact of said. For now, the station is continu- The state credits, while modest, dation receives each year for re- their gifts and tax benefits of mak- Sherri Welch: (313) 446-1694, ing to remind donors about the in- allow everyone — even those who stricted and unrestricted endow- ing them before year’s end, he [email protected]. Twitter: centive and expressing the ur- don’t itemize on their federal re- ments held there, 1,700-1,800 of said. @sherriwelch gency to make a donation before Dec. 31, Alpert said. “I fully appreciate and under- stand the situation that our state is in, but … I believe the elimination of the Michigan tax credit will Center for Exceptional Families is a family-centered approach hurt our donor efforts in 2012.” to the care and education of children with special needs. Community foundations The repeal of the state charita- ble credits “is certainly going to affect community foundations” even though many more donors took advantage of the credits for gifts to other types of nonprofits, said Cheryl Elliott, president and CEO of the Ann Arbor Area Com- munity Founda- tion. After looking closely at the level of dona- tions made last year, the foun- dation last sum- mer sent sur- Elliott veys to about 300 donors who have established funds of $5,000 or more at the foun- dation and got back responses from 96 of them. The surveys asked donors what their initial reason was for giving to funds at the foundation, and 73 percent pointed to the tax bene- fits associated with their gifts, El- liott said. Based on the survey responses Thousands of patients and their families honor and the number of donors who Oakwood caregivers as their Everyday Hero for qualify for the tax credit, the foun- dation has concluded that the expi- providing excellence in care, healing and health. ration of the tax credits at year’s end could mean the loss of $150,000-$250,000 in donations to endowed funds it holds each year. But heroes come in many forms. That would equate to about $10,000 each year in unrestricted grants made by the foundation to Today, Oakwood Healthcare honors Carla O’Malley, the community, or $100,000 over the next decade, Elliott said, while Executive Director & President of Oakwood taking a small percentage of oper- ating funds away from the founda- Healthcare Foundation as our Everyday Hero. tion. The survey also asked how the elimination of the tax credit would affect donors’ giving — 54 percent As a leader, mentor, fundraiser and friend, her work said they didn’t know, 31 percent each day improves the quality of care Oakwood said they’d continue to give, and 15.4 percent said that without the provides to our community. tax credit, they wouldn’t be able to give. Still, the long-term impact is hard to gauge, Elliott said. Congratulations Carla! “Are they going to continue to give, set up a fund or have we been Recipient of the Dr. John S. Lore named in their estate plan?” Outstanding Fundraising Executive Award. According to the Michigan Com- munity Foundations’ Ventures, a sup- porting organization of the Coun- cil of Michigan Foundations, the community foundation tax credit ©Oakwood Healthcare, 2011. All rights reserved. has been a significant tool in the 20111024-NEWS--0012-NAT-CCI-CD_-- 10/21/2011 10:24 AM Page 1

Page 12 CRAIN’S DETROIT BUSINESS October 24, 2011 Finance Extra Decline in deductions? Charities, donors eye federal tax proposals

1 BY SHERRI WELCH possibility of layoffs — for non- which allowed donors age 70 /2 and ing the portion of the jobs act that east Michigan. CRAIN’S DETROIT BUSINESS profits around the country. older to give to charities up to would limit the value of charitable According to the Chronicle of Michigan Non- $100,000 tax-free annually from and itemized deductions for upper- Philanthropy, the plan, which ap- Changes to federal tax policies profit Association their IRAs — expires at the end of income taxpayers, capping the de- plies to married couples with ad- may affect donations to nonprofits President Kyle this year, said Rob Collier, presi- duction at 28 percent, regardless of justed gross incomes of at least beginning next year. Caldwell said dent of the Grand Haven-based whether individuals are in the 33 $250,000 and individuals with The Individual Retirement Ac- that having the Council of Michigan Foundations. percent or 35 percent tax brackets. gross incomes of $200,000, would count charitable rollover is set to tax structure in Any legislative extenders of the Wealthy donors would be able to generate $400 billion in additional retire at year’s end, after a one-year limbo puts sup- rollover would likely have a short deduct only 28 cents of every $1 revenue over the next decade. extension in 2010. Plus, as part of porters and non- life because of the federal deficit, they donate if the proposal passes But according to Washington- the American Jobs Act, President profits in a diffi- and it’s probably going to be late along with the bill. based nonprofit advocacy group In- Barack Obama has proposed cult position. 2012 before Congress even thinks Thus, a taxpayer in the 35 per- dependent Sector, the cap could cost changes in the federal charitable de- “Planners will about looking at the issue, he said. cent top marginal bracket who charities as much as $7 billion a duction on income taxes for the tell their clients Caldwell “What I’ve been told is this Con- gives $100,000 to charity would re- year in contributions. wealthiest tax payers. to sit on their money because of the gress may not act on this,” Collier ceive $7,000 less in tax benefit than The proposal to limit the chari- Both of these changes could uncertainty with the tax code.” said. they receive today, according to table deduction for the wealthiest mean reduced giving — and the The IRA charitable rollover — Meanwhile, Congress is debat- the Community Foundation for South- donors was reportedly also a part of Obama’s three annual budget proposals, a fact that leads some to believe it will never come to pass. In early October, Senate Democ- ratic leaders rejected Obama’s pro- posal to offset the $447 billion cost of the American Jobs Act by cap- ping tax deductions and exclu- sions, including the charitable de- duction, replacing it with a 5.6 percent surtax on people who Give. earn more than $1 million a year, according to Independent Sector. And the state gives back. But the cap on charitable deduc- tions for the wealthiest donors is still part of Obama’s recommenda- tions to the Joint Select Committee on Deficit Reduction, which is charged with finding at least $1.2 million in deficit reduction by Nov. 23, Independent Sector said. “The problem with this is recur- ring policy proposals become the new normal as opposed to some- thing that’s never going to hap- pen,” Caldwell said. If charitable giving is capped, nonprofits will lose because wealthy donors will give less, he said. “Disincentivizing giving through the tax code is going to have long- term consequences for us,” he said. “More importantly, it’s going to im- pact the people nonprofits serve.” Of $9.5 million in donations and grants raised by the Detroit Sympho- ny Orchestra last year, $2.25 million came from board members and $1.5 million from the symphony’s electing body of governing mem- bers who are charged with electing the board every year. In total, those contributions made up 40 percent of the DSO’s revenue last year. Still, Executive Vice President Paul Hogle said he isn’t concerned about the president’s proposal to limit charitable donations for the wealthiest donors, because he can’t imagine it happening with nonprof- it powerhouses like the American Red Cross, universities and the Catholic Church working to defend the deductibility of donations. Besides, Hogle said, tax policy is number five or six on a list of rea- sons that people give. “I don’t think the tax changes would have an effect on giving.” The area’s major nonprofits are If you want to improve neighborhoods, support the arts, even monitoring the legislation. make greener parks, the Community Foundation for Southeast Annmarie Erickson, executive vice president and COO at the De- Michigan can help. And when you donate by December 31, 2011, troit Institute of Arts, said that, as with you may get up to 50% of your gift back on your state tax return. expiring state tax credits, it’s hard to tell how the federal changes could affect donations to the museum. Visit CFSEM.org or call 1-888-WE-ENDOW for more info on the expiring State of Michigan tax credit. “(But) I think we can safely say that all of our major donors are aware of this matter and will be fac- toring it into their philanthropic planning.” Sherri Welch: (313) 446-1694, [email protected]. Twitter: @sherriwelch 20111024-NEWS--0013-NAT-CCI-CD_-- 10/21/2011 11:55 AM Page 1

October 24, 2011 CRAIN’S DETROIT BUSINESS Page 13 Finance Extra Mentorship program is king at Planned Giving Roundtable

BY MAUREEN MCDONALD a beneficiary of an insurance needs individuals live in group SPECIAL TO CRAIN’S DETROIT BUSINESS policy, she said. And the homes. Her own 32-year-old son de- All nonprofit organizations ... work has just begun. pends on others for care — one rea- As the strategic gifts associate “ Kaczander is casting a son she’s an ardent campaigner for for Jarc in Farmington Hills, Car- have in common the need to raise wider web of support since Jarc’s mission. ol Kaczander already knew how her year of mentoring, in- Jennifer Richard, director of to raise money for group homes money, touch the hearts of donors and creasing her reach as she major and planned gifts for the serving people with mental dis- works with other families in east region of the Lutheran Social abilities. She agreed to tap the re- encourage them to leave a legacy. the community to ensure Services of Michigan and a mentee sources of the Planned Giving ” Jarc remains intact with its of the Planned Giving Roundtable, Roundtable of Southeast Michigan Carol Kaczander, Jarc $10 million budget, almost 3 said the timing for additional because she wanted to do more for meeting with her assigned mentor people who agreed to name Jarc in percent raised through private do- training was critical. the community. — Kim-Lan Trinh, associate direc- their wills. Another 10 people are nations. The charity, originally the “With the changes in our local She took part in the Dryden- tor of development for Michigan considering putting Jarc in their Jewish Association for Retarded economy, our goal was to create based roundtable’s first yearlong Opera Theatre — she identified 13 estate plan or establishing Jarc as Citizens, works to help special- See Roundtable, Page 14 mentorship program, which ends this month on a high note: Twice as many applicants sought to be included as 2012 candidates. Kaczander was ecstatic about the results among her five cohorts and six mentors. She had a roster of people to call about any kind of question, and invaluable experi- ence to tap from the region’s non- profit experts. “This was a fabulous experi- ence,” Kaczander said. “All non- profit organizations, as different as their missions are, have in common the need to raise money, touch the hearts of donors and en- courage them to leave a legacy in the community.” With the help of the Planned Giving Roundtable and its 17- member board of directors, Kaczander and other members of the next generation of planned giving professionals learned about tax planning, marketing, database mining and emerging charitable giving trends. Among its successes, Lutheran Social Ser- vices of Michigan in Detroit said it redoubled its efforts to secure Smart entrepreneurs are planned gifts, and the Judson Cen- ter in Royal Oak formalized its risk-takers. Except when it planned gift program. The mentoring program partic- comes to health coverage. ipants could tap member experts in estate and financial planning, attorneys, certified public ac- countants, philanthropic advisers and charitable executives at some of the largest nonprofits in Michi- gan, including the Detroit Institute of Arts, the Archdiocese of Detroit and the University of Michigan. Get exceptional value with small business health coverage from the Blues For Kaczander, immersing her- Choosing health coverage comes down to one thing: value. The perfect mix of self in organizational events and comprehensive coverage at an affordable price. With Blue Cross Blue Shield of Michigan, you get real value and the flexibility to choose exactly the right PLANNED GIVING ROUNDTABLE coverage for your business.

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Page 14 CRAIN’S DETROIT BUSINESS October 24, 2011 Finance Extra

Orchards Children’s Services Award winners set standards for giving The 20th annual National Phil- decades been a very loyal support- anthropy Day Dinner takes place er of Detroit and Southeast Michi- Congratulates Nov. 17 at the Detroit Marriott Re- gan,” Tennyson said. “He believes naissance Center. The event will in Detroit.” recognize the annual winners of Taubman and the National Philanthropy Day his family were awards issued by the Greater De- nominated for troit chapter of the Association of the award by Fundraising Professionals. For tick- Lawrence Techno- ets and more information about logical University, National the event, see http://afpdetroit.afp- where Taubman Anthony Viviano Catherine Viviano net.org. completed his Philanthropy This year’s winners are: degree. ANTHONY AND CATHERINE VIVIANO Taubman In May, Taub- Day man donated Owners of Sterling Heights Dodge, A. ALFRED TAUBMAN Chrysler, Jeep, Ram, $11 million to Lawrence Tech for Sterling Heights Honorees its A. Alfred Taubman Engineer- AND THE TAUBMAN FAMILY Edmund T. Ahee Jewel Award Founder of Taubman Centers Inc., ing, Life Sciences and Architec- for Outstanding Volunteer Fundraiser Bloomfield Hills ture Complex. He also has made many major Max M. Fisher Award Anthony and Catherine Viviano donations to the University of Michi- for Outstanding Philanthropist are well known around Henry Ford gan for medical research, the Macomb Hospitals. In fact, Cather- A. Alfred Taubman doesn’t see Taubman College for Architecture ine has earned a nickname for all charitable giving as a burden that and Urban Planning, the UM Mu- she has done. Your heartfelt commitment comes with wealth. Rather, he sees seum of Art and other programs. “We call her St. Catherine,” said it as an opportunity, said Chris In April, his $56 million donation Dana Casson, vice president of de- creates brighter futures Tennyson, a Taubman communi- to UM made him the single largest velopment at Henry Ford Macomb cation specialist. individual donor to the university, for children and families “Alfred Taubman has for with a total tally of $142 million. See Next Page Roundtable: Mentorship is king www.orchards.org ■ From Page 13 greater financial stability for the than $90 million, about $3 million organization and less dependency raised in charitable contributions. on special events and corporate Working with her mentor — Car- sponsorship/gifts,” she said. Her olyn Millard, the development division of Lutheran Social Ser- manager of Covenant House of Michi- vices has an annual budget of more gan in Detroit — Richard developed documents and brochures to better articulate funding priorities and build a case for support. “We antici- pate that planned gifts will be an appealing option for those who Kelly MacGregor wish to support our mission yet feel help donors see themselves as mes- cash-strapped in this economy.” sengers to future generations who Fourteen people applied for the will benefit from their generosity six mentorship spots for 2012, ac- and values.” THANK YOU cording to Christopher Kelly, a for- Whenever a mentorship program mer opera singer turned Comerica is applied, it has a potential for FOR YOUR SUPPORT financial expert who hopes to level reaping lasting benefits, said the playing field for small donor Stephanie Bergeron, president and funds and large foundations. CEO of Walsh College. “Mentoring is Kelly, president of Comerica Lawrence Technological University more than giving your time; it pro- Charitable Services in Ann Arbor, vides a rich learning and bonding gratefully acknowledges the generosity co-leads the mentoring efforts for experience, shaping the lives of of the donors, board members, Planned Giving Roundtable with those who give and those who re- Rob MacGregor, director of gift foundations, corporations, and ceive,” Bergeron said, noting the planning at the DIA. right person or faculty can guide ca- volunteers who graciously invest in MacGregor said mentors learn reer development, such as working plenty from the experience, too. our students, the leaders of the future. to develop the pipeline of fundrais- “Easily, I’ve gained as much out ing professionals. of the mentoring process as I’ve “Metro Detroiters have been been able to give, because every- very supportive to charities,” one has different experiences and LTU Kelly added. “You see it every opportunities,” MacGregor said. POSSIBLE IS EVERYTHING. time we have a crisis. We want to The DIA has an annual unre- help the development community stricted operating budget of channel giving in a more produc- $25 million, of which about $10 mil- tive plan. To compose gift plans lion is covered by fundraising. He that truly meet what the donor expects that roughly $1 million will wants to see happen. This is truly come from matured planned gifts fulfilling for families.” in the 2012 fiscal year. Kelly’s He encourages fundraisers to group dispenses well over $150 mil- look beyond the biggest names in lion a year in grant awards and charity to people who could give a serves as president of the planned stipend annually, or a one-time lega- giving roundtable. He helped coach cy that counts. Before Kelly’s father the mentees in ways to reinforce died, he asked to establish a donor their mission with the public. fund with Comerica’s charitable “Your role is to help people feel trust to help the grade school at- very good about gift planning, to tached to his church to prosper. In demonstrate ways that you are lieu of flowers, people sent money to Lawrence Technological University | 21000 West Ten Mile Road, Southfield, MI 48075-1058 meeting donor expectations,” Kel- the trust. This way, financial en- 800.225.5588 | [email protected] | www.ltu.edu ly said he explained to program dowments and annuities will bloom participants. “Done correctly, you for decades. 20111024-NEWS--0015-NAT-CCI-CD_-- 10/20/2011 4:16 PM Page 1

October 24, 2011 CRAIN’S DETROIT BUSINESS Page 15 Finance Extra From Previous Page raise about $100 million for pro- PHILLIP WM. FISHER principal at The Fisher Group LLC. his knowledge and his leadership.” Hospitals. “She’s absolutely one of jects and programs. He also has served on the board at Fisher is also a trustee of the the sweetest and kindest women One program O’Malley helped to Principal, The Fisher Group, Starfish for the past nine years, Max M. and Marjorie S. Fisher Founda- you could ever know. It’s an honor promote is the Oakwood Employee Southfield Brown said. tion, a board member of the Commu- to know her.” Scholarship Program. When she took George W. Romney Award for Lifetime Both Starfish CEO Ann Kalass nity Foundation for Southeast Michi- Anthony is on the board of her position, the scholarship pro- Achievement in Volunteerism and Brown said Fisher always has gan and a board member of United trustees for Henry Ford Macomb gram had just a few awards. It now the Starfish mission in mind and Jewish Foundation/Federation of Met- Hospitals and the Henry Ford Health awards more than 100 scholar- According to Paula Brown, chief challenges the organization to be ropolitan Detroit, among many other System Foundation. He is also active ships annually to employees at development officer of Inkster- creative in furthering its mission. activities. with the March of Dimes and the Ma- Oakwood for continuing educa- based Starfish Fisher was instrumental in the comb County Marine Division. tion, four-year degrees or ad- Family Services Starfish Family Success program GENERAL MOTORS CO./ The Vivianos dedicate many vanced degrees. “She challenges Inc., Phillip that helped teach adults how to hours to philanthropic efforts and us to do our best every day,” An- Fisher takes his better their lives for themselves GENERAL MOTORS FOUNDATION to helping Henry Ford Macomb derson said. “The greatest reward volunteering se- and their children. Detroit Hospitals raise millions of dollars is not only the results we get but riously. “I just think that he is the most for many causes, Casson said. the impact we make for others.” “He’s a con- generous person that I’ve probably Outstanding Corporation Henry Ford Macomb has hospi- Other projects she has worked summate volun- met in my life,” said Kalass. “A lot Last December, General Motors tals in Clinton Township, Warren on have been the Oakwood Center teer,” Brown of times, people think about gen- Co. donated more than $27 million and Mt. Clemens. for Exceptional Families and the Oak- said. erosity in financial terms, but “(Anthony is) always accessible, wood Southshore Medical Center. Fisher Fisher is a Phillip is generous with his time, See Next Page always there as a sounding board and always there to reach out in the community,” Casson said. “He’s the epitome of gentleman.”

ROCHELLE RILEY Columnist, Detroit Free Press Neal Shine Award for Media Commitment to Philanthropy

Rochelle Riley came to the De- troit area in September 2000, but Gary Dembs, founder and president of Non- profit Personnel Network Inc., said she has done 20 years’ worth of work in that time. “We don’t want to give this Riley award to some- one who just emcees events,” said Dembs. “She walks the walk.” Part of walking that walk is her Healthy smiles are good for business. work with many organizations in the area. Riley is a committed ad- vocate for women, children and families, Dembs said. “She really is fully aligned with (the late former Free Press Pub- lisher) Neal Shine’s ethics and journalistic integrity and commu- nity building,” Dembs said. Total body health for your employees Riley taught in the Detroit Public Schools as a volunteer for three Did you know that there’s a connection between a healthy mouth and a healthy body? There is. years and started the Clean City Dentists can identify signs of serious health conditions, like diabetes, during routine checkups. Schools project to encourage stu- dents to help clean up school cam- At Blue Cross Blue Shield of Michigan, we take that connection very seriously. Which is why we puses. encourage you to complete your health plan with Blue Dental.SM For the past eight years, she also Here’s why: has been an honorary chairwoman of Bookstock, a used book and me- UÊÊ1˜“>ÌV i`Ê>VViÃÃÊ̜ʫ>À̈Vˆ«>̈˜}Ê`i˜ÌˆÃÌÃÊ̜ÊÃ>Ûiʜ˜ÊVœÃÌÃÊvœÀÊޜÕÊ>˜`ÊޜÕÀÊi“«œÞiià dia sale that gives profits to educa- SM tion and literacy programs. UÊÊ Õi i˜Ì> œ˜˜iV̈œ˜] a free dental wellness program that includes online resources and targeted member education for improved health CARLA O’MALLEY UÊÊA wide variety of traditional, PPO and voluntary plans to suit changing coverage needs Executive director and president, Keep your employees healthy and smiling with Blue Dental.SM It’s good for business. Oakwood Healthcare Foundation, Dearborn Dr. John S. Lore Outstanding Fundraising Executive Award

Carla O’Malley has been in her position with Oakwood Healthcare Foundation since 1998 and with Oakwood Health- care System for 30 years. “She’s a vi- sionary leader,” For more information, contact your Blues said Michelle sales representative or contracted agent Anderson, di- or visit bcbsm.com/bluedental Leading Michigan to a healthier future.SM rector of devel- opment services O’Malley for Oakwood Blue Cross Blue Shield of Michigan is a nonprofit corporation and independent licensee of the Blue Cross and Blue Shield Association. Healthcare Foundation. In her time as executive director and president, she has helped to 20111024-NEWS--0016-NAT-CCI-CD_-- 10/20/2011 4:43 PM Page 1

Page 16 CRAIN’S DETROIT BUSINESS October 24, 2011 Finance Extra

From Previous Page since 2007. A gift from the couple to an effort to help raise high helped to build the Celani Family school graduation rates in Detroit Comprehensive Neonatal Intensive and Southeast Michigan. Care Center at Beaumont Hospital. Bill Fisher, director for corpo- CARE House became a benefac- rate sustainability at United Way for tor of the Celani Foundation when Southeastern Michigan, said GM Vicki recognized a need for a child Mike Liscovitz Steve Reynolds, advocacy center. In 2011, CARE solution sales Microsoft stands out among corporate House was able to open the Celani professional, donors because of its commitment Family Child Advocacy Center. Microsoft to the community. “It’s our opinion that they really “We’re really honored by their see the need in the community,” support and trust,” Rosen said. Join Mike Liscovitz and Fisher said. “They want to make “We know that they could choose sure that everybody knows they to give their funds anywhere.” A sponsored webinar Steve Reynolds from Microsoft, are in the community and support- experts in cloud computing and ing the community.” SHIRLEY BROWN PART TWO OF THREE Fisher said GM is helping make virtual collaboration it easier for employees to connect Sponsored by Children’s Hospital in philanthropic efforts through of Michigan Foundation What is cloud computing? Learn the answer the soon-to-come Team GM Cares Sparky Anderson Award for Collaboration and how your small businesses can learn to Outstanding Youth in Philanthropy program. It will catalog employee collaborate in the cloud to: engagement/volunteerism in the When her classmates were out- community. side for recess, Shirley Brown, 11, in the cloud I boost employee productivity and a couple of her friends were in- I form new partner and vendor relationships side their John- I communicate with mobile teams son Upper Ele- PRESENTED BY I connect with geographically dispersed clients mentary I reduce costs classroom sort- ing through box- And these are just the benefits of virtual es of donated collaboration. Cloud computing can deliver clothing. The school in West- even more benefits, from software as a service land is part of Oct. 26|Noon – 1 p.m. EST to server space that provides the added benefit Livonia Public of disaster recovery anywhere, anytime. Tom Celani Vicki Celani Schools. The clothing was do- Brown Registrants will be able to download the nated to Brown for a project she To register, please visit presentation and the following white papers: CELANI CHARITABLE was doing in school, one that she www.crainsdetroit.com/events “Cloud computing – is it right for you?” and came up with herself. Brown de- FOUNDATION INC. cided to collect clothing for the “Collaborate your way to a stronger business.” FREE to Crain’s readers Tom and Vicki Celani, Detroit school district’s “Youth Making a Outstanding Foundation Difference” program and donate it to Orchards Children’s Services Inc. The Celani Charitable Foundation “Everyone here thinks she is Inc. is the work of Tom and Vicki amazing,” said Orchards Cam- Celani, a couple that Patricia Rosen, paign Director Gilda Hauser. executive director of the Pontiac- Brown was a foster child at Or- based CARE House of Oakland County, chards before being adopted eight says constantly works for others. years ago. She wanted her project “I would definitely call them loy- to help the children at Orchards. al and passionate,” said Rosen. “She is humble. … I think it CARE House is not the only or- amazes her that everyone makes ganization that feels that way: Cen- such a big deal out of this,” Hauser tral Michigan University and the Beau- said. “She said, ‘I want those kids mont Foundation also nominated the to feel like somebody cares about couple for a philanthropy award. them.’ ” Brown took her project !  " #  The Celanis are members of above and beyond its original in- CMU’s Bell Tower Society. They estab- tent by engaging her entire school. lished the Tom and Vicki Celani By the time the clothing collection  Venture Capital Fund in the CMU was done, her father, Tim Brown,    College of Business Administration. needed a trailer to bring the dona- Tom has had a seat on the Beau- tion to Orchards.     mont Foundation board of directors Compiled by Michelle Muñoz WEBCAST EVENT How the new  Patent Reform Act     affects your business Thursday,    T     October 27, 2011 Noon to 1:00 p.m. EDT RSVP: Call 1.800.847.6424 or visit         www.mcdonaldhopkins.com                              !     "

McDonald Hopkins PLC 39533 Woodward Avenue, Suite 318, Bloomfield Hills, MI 48304 • 248.646.5070      ! Carl J. Grassi Stephen M. Gross President Detroit Managing Member

Chicago • Cleveland • Columbus • Detroit • Miami • West Palm Beach 20111024-NEWS--0017-NAT-CCI-CD_-- 10/20/2011 4:42 PM Page 1

October 24, 2011 CRAIN’S DETROIT BUSINESS Page 17 4 Belle Isle groups merge into single nonprofit conservancy

BY SHERRI WELCH us in reaching our goals to make ing local nonprofits that operate CRAIN’S DETROIT BUSINESS Belle Isle an enjoyable site for all city assets, such as the Detroit Insti- What we needed to really effect of our users” by helping to pro- tute of Arts, the Detroit Zoological So- Four Belle Isle preservation “ mote the island as a destination ciety, Eastern Market Corp., the De- groups have merged to form the change was to pull everyone and to raise money to fund restora- troit Historical Society, Detroit 300 Belle Isle Conservancy in a bid to in- tion and programming for the Conservancy, Detroit Riverfront Con- crease their impact and to attract together. park at a time of dwindling city servancy and the Huron-Clinton more public and private support ” funding, she said. Metroparks. for restoration of the island park. Sarah Earley, Belle Isle Conservancy The merger was several years in The second grant from Kresge The Belle Isle Women’s the making, Earley said. funded a user survey of visitors to Committee, Friends of Belle Isle, Belle one to support Belle Isle. accounts restricted for various The Troy-based Kresge Founda- Belle Isle, conducted by New York- Isle Botanical Society and Friends of “As you look at the development restoration projects on Belle Isle tion in 2009 granted $100,000 to the based Project for Public Spaces, which the Belle Isle Aquarium formally that’s happening downtown … and other resources, which the groups to benchmark other suc- gauged what people do in the park, merged in mid-October. Belle Isle is a natural part of all conservancy is now pooling, Ear- cessful park conservancies around where they come from and what The new conservancy is assum- that,” she said. “And certainly, its ley said. She expects the conser- the country and an equal amount they would like to see in the park. ing the 501c(3) nonprofit status of history as a park is unique — there vancy will operate on a budget of the following year to fund a user Among other things, visitors the Friends of Belle Isle as a nod to aren’t too many cities with a park over $500,000 its first year. survey of visitors to Belle Isle. said they want to see long-closed the oldest of the preservation orga- in the middle of their river that While the activities of the four “We have thought for many, canals reopened for canoeing, pret- nizations, which formed in 1972, you can get to and enjoy.” groups continue — through efforts many years that Belle Isle is just tier gardens, more recreational ac- said Sarah Earley, chairwoman of The four nonprofits indepen- such as the Friends of Belle Isle an unbelievable asset for the city tivities and the aquarium re- the new conservancy and founder of dently were doing good things on meeting monthly to pluck invasive and residents of the region as a opened, Earley said. the Belle Isle Women’s Committee. Belle Isle in each of their own ar- species from the island, the Belle whole,” given its position in the “This was a way to really start to It developed a mission, bylaws, eas, but they were operating in si- Isle Women’s Committee planning middle of the Detroit River and its prioritize programming and pro- and board and committee structure los, said Earley. its next fundraising luncheon and historic significance as the only is- jects from big to small,” she said. with assistance from Maud Lyon, Earley moved with her husband, a Detroit gala to hail the return of land park ever designed by famed “We need to sit with the city and executive director of the Cultural Al- Anthony, to California early this the Grand Prix to Belle Isle in ear- landscape architect Frederick Law the user survey and talk about liance for Southeastern Michigan and a fall after he stepped down as exec- ly June — the conservancy hasn’t Olmsted, said Laura Trudeau, se- what we need to prioritize.” nonprofit consultant, and the Michi- utive chairman of DTE Energy Co.’s yet set its first order of business nior program director at Kresge. When there were four different gan Nonprofit Association. board to join San Francisco-based and long-term goals, Earley said. Earley “had a lot of ideas for groups, it was hard to see which The conservancy is a volunteer- PG&E Corp. as chairman, CEO and “What we are doing isn’t going how to pull the groups together group was taking the lead on led organization, with 18 board president. to change. What will change is and to make a more coordinated which aspects of restoring Belle members: a representative from The couple own a home in we’ll be more focused and grow in investment in the park and to help Isle, Trudeau said. “Now they’ll be each of the four founders; the city Bloomfield Hills and plan to retire terms of what we’re doing and in the city in that way,” Trudeau a single entry point.” of Detroit, which owns Belle Isle; in Michigan in three to five years, raising funds.” said. There hasn’t been any discus- the Detroit City Council; and commu- Sarah Earley said. Detroit’s recreation and general The Belle Isle Conservancy stud- sion of a specific dollar amount or nity members at large who are still “What we needed to really effect services departments have been ied the models of park conservan- project that Kresge would fund in being named, Earley said. change (on Belle Isle) was to pull doing a good job with the re- cies in Pittsburgh, Atlanta, St. the future, “but we’ve kept the Since founding the Belle Isle everyone together. Our goal is to sources available in maintaining, Louis, Brooklyn and New York door open for future conversa- Women’s Committee in 2004 and … support the city with planning, operating and programming Belle City and how each worked with tion,” Trudeau said. even before that, Earley said she marketing and yet-to-be-deter- Isle, said Alicia Minter, director of the government authorities that Sherri Welch: (313) 446-1694, learned a lot about conservancies mined capital projects,” she said. the Detroit recreation department. owned their parks, Earley said. [email protected]. Twitter: @sher- and wondered why there wasn’t All four groups bring money in But the conservancy “will assist The group also researched exist- riwelch

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Children’s Hospital of Michigan Foundation Oakwood Health Care Foundation Our experts are the difference. DTE Foundation St. John Providence Health System Henry Fold Health System University of Michigan We have big thinkers that understand the complicated issues that Lutheran Social Services of Michigan wealthy families and business owners face. Our team of CPAs, JDs, Silver Sponsors MBAs, CLUs, design life insurance strategies that have been coined “Schechterized” – a robust analysis and application of financial Beaumont Health System Oakland University Foundation Non-Profit Personnel Network United Way of Southeastern Michigan tools that solve complex wealth transfer situations and can simply save money with existing life insurance policies. Bronze Sponsors 75 years of sophisticated planning with 100s of wealthy families Central Michigan University Rose Hill Foundation Cranbrook Schools Horizons- Starfish Family Services has made us a national leader in the life insurance arena. Upward Bound Taubman Henry Ford Community College University of Detroit Jesuit High School Jewish Federation of Metropolitan Detroit and Academy Presbyterian Villages of Walsh College Michigan Foundation Wayne State University .OVEMBER s$ETROIT-ARRIOTTATTHE2ENAISSANCE#ENTER &ORTICKETINFORMATION VISIT www.afpdet.org

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Page 18 CRAIN’S DETROIT BUSINESS October 24, 2011

CRAIN'S LIST: LARGEST COMPREHENSIVE MULTIYEAR CAMPAIGNS Ranked by campaign goal Amount raised Organization name Campaign goal so far Rank Campaign name ($000,000) ($000,000) Campaign start date Targeted ending date What the campaign is paying for Henry Ford Health System $250.0 $180.0 January 2007 December 2013 Renovating and expanding Henry Ford Hospital, constructing a new, 300-bed 1. Henry Ford Health System Envision Henry Ford West Bloomfield Hospital in Oakland County and enriching the campaign nationally recognized Centers of Excellence Beaumont Health System 170.0 186.0 2005 Dec. 31, 2011 Support the capital, endowment, research and programmatic needs of the 2. The Campaign for Beaumont Hospitals Beaumont hospital system. The amount raised so far does not include federal grant awards, earnings or endowments Detroit Riverfront Conservancy 140.0 105.0 2003 TBD Supports the conservancy’s east riverfront development, which includes 3. East Riverfront Capital Campaign B construction of riverwalk, pavilions, plazas, green space as well as permanent operations, maintenance, programming and security St. Joseph Mercy Health System 100.0 77.0 2002 2012 New facilities and technology including new patient towers and surgery pavilion 4. Renewal Campaign in Ann Arbor; new cancer center in Brighton and new imaging center and community health pavilion in Saline Focus: HOPE 100.0 57.0 Oct. 1, 2005 December 2015 Existing programs, new programs, debt reduction, infrastructure improvements, 4. Investing in HOPE scholarships, and endowment Detroit Institute of Arts 75.0 44.0 February 2010 December 2015 Operations, $60 million; endowment, $15 million 6. 125th Anniversary campaign Lawrence Technological University 75.0 66.0 July 2006 July 2014 The A. Alfred Taubman Engineering, Architecture and Life Sciences Building, with 6. Comprehensive campaign C capital, endowment and program components College for Creative Studies 55.0 51.4 September 2008 December 2011 Renovated the historic General Motors Argonaut building into the A. Alfred 8. Advancing the Creative Spirit campaign Taubman Center for Design Education as well as the Walter and Josephine Ford Campus Oakwood Healthcare Inc. 50.0 34.0 January 2007 Ongoing Children's programs, women's health, bone and joint, heart and vascular, early 9. Oakwood Pursuit of Excellence in Health detection and prevention, Sanctuary at Oakwood Hospital and Medical Center, and Healing Oakwood Southshore Promise, trauma, compassionate care services United Jewish Foundation 50.0 47.2 2003 2012 Provides for the Detroit Jewish community's future emergency needs 9. Legacy Campaign United Jewish Foundation 50.0 16.0 2006 Open To support programs assisting the Jewish elderly in the Detroit metropolitan area 9. Foundation for the Jewish Elderly Eastern Michigan University 50.0 48.3 2007 2012 Funding to support scholarships, faculty, programs, facilities and other 9. Invest. Inspire. The Campaign for Eastern campuswide initiatives Michigan University

This list of capital campaigns is an approximate compilation of the largest campaigns in Wayne, Oakland, Macomb, Washtenaw and Livingston counties. It is not a complete listing but the most comprehensive available. Unless otherwise noted, information was provided by the organizations. Organizations with headquarters elsewhere are listed with the address and top executive of their main Detroit-area office. NA = not available. B The second phase of the campaign will launch in November 2011. C Still in silent phase, expected to go public soon to reach goal of $75 million-$100 million. LIST RESEARCHED BY BRIANNA REILLY

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I Metro Detroit I Grand Rapids I Kalamazoo I Grand Haven I Lansing DBpageAD.qxp 10/19/2011 9:24 AM Page 1 DBspreadAD.qxp 10/19/2011 5:05 PM Page 1

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Engaging our people in transformational change Ernst & Young and United Way Ernst & Young employees volunteering on EY Connect Day with United Way supported organizations including (clockwise from left Southeast Michigan is a giving community. It is also a community in to right) the DTE Energy Garden SouthÕeld, Forgotten Harvest and Beyond Basics. crisis. We have signiÕcant challenges to overcome, chief among them Early childhood development our pre-schoolers unprepared to enter kindergarten and succeed, “Helping a child enter kindergarten unacceptable high school graduation rates and increasing numbers of ready to learn puts them on a Children prepared to enter new path to success. Supporting school ready to succeed. 80% people in need of basic support such as food and shelter. 60% reading and creative play 50% Jeff Bergeron programs is just one way United The scope of our challenges demands that our efforts get results. And OfÕce Managing Partner, Way is addressing the needs of 2008 2013 2018 Ernst & Young LLP, Detroit the citizens of Southeast Michigan deserve a support model that will our children. That’s why I give.” Regional Statistics deliver those results. We need to look at how we are coordinating our A child born into a low-income home has — Katie Johnson, only a 48% chance of educational success; efforts around these critical issues in order to truly make an impact. that success rate drops to 10% by age 3 if Ernst & Young Tax Senior that child isn’t stimulated through reading and creative play. That’s why I have committed to chairing the United Way for Only 50% of children register for Southeastern Michigan campaign for the past two years. United Way kindergarten meeting ‘ready to learn’ minimum standards. has undergone a transformation that is changing the way that we United Way work together as a community to address our region’s most pressing challenges. They are focused around four key areas — early childhood “Kids learn best on a full stomach. Basic needs: Food initiative education, high school turnaround, Õnancial stability and basic needs — Too many families are in need Reducing hunger by over 50%. and they are implementing programs in partnership with agencies and of assistance to keep food on organizations across the region designed to get results. their tables. United Way helps our most vulnerable neighbors Goals are set. Programs are measured. And if the results aren’t there, through its Basic Needs food changes are made. Transformational changes. In real time. initiative. Last year alone United 55,000 People 308,000 People Way brought over 50,000 110,000 People healthy meals to families through Distribution Utilization The goal is aggressive — to be a top Õve place to live and work by Expansion a program designed to help Regional statistics 2030 — but the people of Southeast Michigan deserve nothing less. In our community, 700,000 people are at individuals access fresh produce risk of going hungry because current food so kids can start the day out programs only meet 80% of the need. I am proud to involve Ernst & Young LLP and our employees in right. That’s why I give.” Food assistance is provided through a volunteer activities with United Way supported programs so they can combination of federal programs, food — Rodrigo Figueroa, distribution systems (pantries), and informal see the impact that United Way is making in their community and so networks such as family and friends. they too can be a part of the transformational change so critical to our Ernst & Young Advisory 40% of those eligible for the current beneÕ t region’s future. Senior Manager resources are not participating due to difÕculties accessing the various food assistance programs. United Way © 2011 Ernst & Young LLP. All Rights Reserved. DBspreadAD.qxp 10/19/2011 5:05 PM Page 1

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Engaging our people in transformational change Ernst & Young and United Way Ernst & Young employees volunteering on EY Connect Day with United Way supported organizations including (clockwise from left Southeast Michigan is a giving community. It is also a community in to right) the DTE Energy Garden SouthÕeld, Forgotten Harvest and Beyond Basics. crisis. We have signiÕcant challenges to overcome, chief among them Early childhood development our pre-schoolers unprepared to enter kindergarten and succeed, “Helping a child enter kindergarten unacceptable high school graduation rates and increasing numbers of ready to learn puts them on a Children prepared to enter new path to success. Supporting school ready to succeed. 80% people in need of basic support such as food and shelter. 60% reading and creative play 50% Jeff Bergeron programs is just one way United The scope of our challenges demands that our efforts get results. And OfÕce Managing Partner, Way is addressing the needs of 2008 2013 2018 Ernst & Young LLP, Detroit the citizens of Southeast Michigan deserve a support model that will our children. That’s why I give.” Regional Statistics deliver those results. We need to look at how we are coordinating our A child born into a low-income home has — Katie Johnson, only a 48% chance of educational success; efforts around these critical issues in order to truly make an impact. that success rate drops to 10% by age 3 if Ernst & Young Tax Senior that child isn’t stimulated through reading and creative play. That’s why I have committed to chairing the United Way for Only 50% of children register for Southeastern Michigan campaign for the past two years. United Way kindergarten meeting ‘ready to learn’ minimum standards. has undergone a transformation that is changing the way that we United Way work together as a community to address our region’s most pressing challenges. They are focused around four key areas — early childhood “Kids learn best on a full stomach. Basic needs: Food initiative education, high school turnaround, Õnancial stability and basic needs — Too many families are in need Reducing hunger by over 50%. and they are implementing programs in partnership with agencies and of assistance to keep food on organizations across the region designed to get results. their tables. United Way helps our most vulnerable neighbors Goals are set. Programs are measured. And if the results aren’t there, through its Basic Needs food changes are made. Transformational changes. In real time. initiative. Last year alone United 55,000 People 308,000 People Way brought over 50,000 110,000 People healthy meals to families through Distribution Utilization The goal is aggressive — to be a top Õve place to live and work by Expansion a program designed to help Regional statistics 2030 — but the people of Southeast Michigan deserve nothing less. In our community, 700,000 people are at individuals access fresh produce risk of going hungry because current food so kids can start the day out programs only meet 80% of the need. I am proud to involve Ernst & Young LLP and our employees in right. That’s why I give.” Food assistance is provided through a volunteer activities with United Way supported programs so they can combination of federal programs, food — Rodrigo Figueroa, distribution systems (pantries), and informal see the impact that United Way is making in their community and so networks such as family and friends. they too can be a part of the transformational change so critical to our Ernst & Young Advisory 40% of those eligible for the current beneÕ t region’s future. Senior Manager resources are not participating due to difÕculties accessing the various food assistance programs. United Way © 2011 Ernst & Young LLP. All Rights Reserved. DBpageAD.qxp 10/13/2011 3:40 PM Page 1

ADVERTISEMENT ARE YOU READY TO BE AN ENVISIONARY?

In 2007, Henry Ford ENVISION CAMPAIGN Health System had a HIGHLIGHTS: vision – raise $250 million to transform the way we s 7EAREPERCENTTOWARDOUR provide patient care by goal, with more than $180 million expanding our facilities committed through cash and and enhancing our pledges to date. clinical programs. s 7EHAVERECORDEDGIFTSAND pledges of $1 million or more for The commitment and generosity of the Envision Campaign. our 23,000 employees and thousands of loyal friends have resulted in more s /URPHILANTHROPYPROGRAMHAS than $180 million being raised to recorded seven consecutive date – including nearly $15 million years of growth for number of donated by Henry Ford physicians donors. and employees. By investing in the future of Henry Ford, these Henry Ford Medical Group physician Akshay K. Khandelwal, M.D., and Jason McGuire, R.N., s 4HEANNUAL#OMMUNITY'IVING envisionaries fuel our progress. demonstrate the latest cardiac catheterization procedure used at Edith and Benson Ford Campaign has resulted in nearly Heart & Vascular Institute for donors Paul Alandt, Tony Viviano and his wife, Cathy; and Lynn $15 million pledged to date to the Funds raised through the Alandt at the Envision Campaign kickoff event in June. Envision Campaign by employees Envision Campaign will make a and physicians with 56 percent of significant impact on our community all employees participating. and the thousands of patients we and minimally invasive surgeries was HENRY FORD WYANDOTTE serve each year. Our patients directly constructed at Henry Ford Hospital. HOSPITAL CENTER FOR CARDIAC s &ORFOURCONSECUTIVEYEARS benefit from advances in research, It also offers advanced imaging CARE. The World Heritage 100 percent of the Henry leading-edge technology and technology to provide surgeons Foundation, under the auspices of Ford executive and physician investments in clinical programs. In real-time details that result in Waltraud Prechter, made a $150,000 leadership have made an annual addition, our community benefits from more accurate treatment and safer, pledge to establish the Henry charitable gift to benefit Henry the hundreds of physicians, nurses shorter procedures. Ford Wyandotte Hospital Cardiac Ford. and allied health professionals who Catheterization Lab to improve receive their training and education HENRY FORD NEUROSCIENCE outcomes and care for cardiac s CURRENTANDFORMER(ENRY&ORD at Henry Ford. INSTITUTE. Supported by several patients across the Downriver area. significant gifts, the Henry Ford physicians and executives have Neuroscience Institute is the only DEBRA SABER-SALISBURY ART become members of Club 50 DONOR SUPPORT HAS provider in Michigan to have the AND WELLNESS WALK. Established by contributing $50,000 or more ALREADY BENEFITED Intraoperative Magnetic Resonance by Debra Saber-Salisbury’s family, toward capital funds, totaling Imaging, or iMRI, which allows who chose to pay tribute to her more than $5.3 million to the HUNDREDS OF AREAS, Envision Campaign to date. INCLUDING: brain surgeons to vividly see the memory in a space that would afflicted brain in real time as they evoke calm and healing, the Art work, with GPS-like mapping to guide and Wellness Walk is a self-guided s &ORlVECONSECUTIVEYEARS CARLS FOUNDATION NEWBORN them through its intricacies and path throughout Henry Ford West 100 percent of the health system’s INTENSIVE CARE UNIT. A $2 million perform surgical procedures with Bloomfield Hospital that is lined with boards of trustees have given gift to Henry Ford Hospital from an accuracy that was previously beautiful and soothing images from an annual charitable gift to Detroit-based Carls Foundation has unattainable. local Michigan artists. benefit Henry Ford programs already made it possible for several and projects. equipment upgrades, including the KIDS’ CLINIC ON WHEELS: HEALTH HENRY FORD MACOMB HOSPITAL purchase of specialized beds, which ALLIANCE FOR NEIGHBORHOOD RETINAL SURGERY CENTER. A $5.2 difference between simply being a eliminate the need for a separate KIDS. Funded by more than $1 million million gift from the estate of Dr. good health care provider and being warmer and incubator, and decrease from the Children’s Health Fund, a John Paul Kane and Victoria V. Kane a nationally recognized, exceptional the risk of infection. 38-foot pediatric mobile medical helped to establish the first retinal health care system. With your clinic, complete with a waiting area, surgery center in Macomb County. help, together we will ensure that EDITH AND BENSON FORD HEART lab and exam rooms, joined our world-class health care continues & VASCULAR INSTITUTE. With School-Based & Community Health With two more years to achieve to flourish in southeast Michigan. more than $5 million given from the Program to provide comprehensive our goal, we are counting on the Know that every dollar we receive Edith & Benson Ford Family Fund, health care services to medically continued support of envisionaries makes a difference, and together, we a state-of-the-art Hybrid Operating underserved children in Detroit. like you to help us cross the finish positively impact the lives and health Room allowing both endovascular line. Charitable gifts mean the of thousands of patients each year.

For more information about how you can become an ENVISIONARY, visit HenryFord.com/giving or call (313) 876-1031. DBpageAD.qxp 10/13/2011 10:57 AM Page 1

WE HONOR THESE 45 ENVISIONARIES FOR THEIR GIFTS OF $1 MILLION OR MORE

Paul & Lynn F. Alandt American Heart Association ARAMARK Charitable Fund at the Vanguard Charitable Endowment Art Van Furniture, Inc. The Phyllis & Stanley Berger Family Foundation Harold & Penny B. Blumenstein The Carls Foundation CATCH CDC Foundation Margaret V. Chapman Children’s Health Fund William Davidson Foundation ENVISIONARIES, Glenn C. Davis, M.D., & Naomi Breslau, Ph.D. 1 DREAM Ethel and James Flinn Foundation Martha F. Ford In 2007 Henry Ford Health System had a vision. To take our Benson & Edith Ford Fund successes and expand upon them, for the good of the communities Eleanor & Edsel Ford Fund we serve. To achieve this vision, we launched the seven-year, Walter & Josephine Ford Fund $250 million Envision Campaign. What came from this effort William & Martha Ford Fund was an incredible display of generosity, accomplishment and a Ford Motor Company Fund name for those who believed in our purpose – ENVISIONARIES. Allan D. Gilmour More than $180 million has been raised to date, with every gift Nancy & James Grosfeld lifting us one step closer to our goal. Here, we recognize 45 Mort & Brigitte Harris ENVISIONARIES for their generous support of our vision. The Gerald Jeffries Family Victoria V. Kane Rita Lorraine Koncewicz Learn more about becoming an Trust Estate ENVISIONARY at henryford.com/giving The Kresge Foundation or call (313) 876-1031. Florine Mark & the Mark/Lis Family Foundation Valerie & David N. McCammon Paula Perry Fair & Steven Radom The Ravitz Foundation Bob & Sandy Riney Safra Foundation Nancy M. Schlichting The Elizabeth, Allan and Warren Shelden Fund Margaret & Gary Valade The Vattikuti Foundation The Vlasic Family

We are also proud to honor six anonymous donors. 20111024-NEWS--0024-NAT-CCI-CD_-- 10/21/2011 10:22 AM Page 1

Page 24 CRAIN’S DETROIT BUSINESS October 24, 2011 UnitedHealthcare offers biz critical illness protection plan

BY JAY GREENE such critical injuries as brain CRAIN’S DETROIT BUSINESS damage, major organ failure or paralysis, Petrovic said. UnitedHealthcare, the nation’s Eligible employers, which will be largest health insurer, is offering automatically enrolled in the pro- employers in Michigan and 25 oth- gram, can choose from four differ- er states a no-cost supplemental in- ent plan options with coverage lev- surance plan to cover the de- els ranging from $5,000 to $100,000. ductible and copayment costs for “Employers are coming to us 13 critical illnesses for companies and asking for this type of benefit with more than 50 employees. to help out their employees” with The critical illness protection their rising out-of-pocket health plan also pays for daily living ex- insurance costs, Petrovic said. penses, including funds to offset in- To save on health care costs, em- come loss, said Jelka Petrovic, CEO ployers have been shifting rising of UnitedHealth- health insurance expenses to their care Michigan in employees over the past several YOUR BUSINESS Southfield. years by raising premiums, de- Petrovic said ductibles and co-payments, Petro- UnitedHealth- vic said. care is not Under the critical illness plan, FUTURE IS BUILT charging medi- employees would receive checks um and large that would cover the costs of their employers en- rising deductibles and copayments. rolled in one of “This is more than (short-term) its medical plans gap insurance coverage” that ON BORROWING for the addition- Petrovic some insurers are offering, Petro- al coverage. vic said. “It covers lost wages Several other insurers in Michi- while people are recuperating.” gan offer a similar product, includ- In Michigan, UnitedHealthcare DECISIONS YOU ing Aetna Inc., Humana, Travelers, insures some 641,630 people in Aflac, Unum and Transamerica. Medicare, Medicaid and commer- Under UnitedHealthcare’s criti- cial plans through 2,300 employers. cal illness program, which began UnitedHealthcare declined to pro- last month in Michigan, employ- vide the number of eligible compa- MAKE RIGHT ees will receive a lump-sum bene- nies with more than 50 employees. fit payout upon diagnosis for 13 Jay Greene: (313) 446-0325, different illnesses, including can- [email protected]. Twitter: ABOUT…NOW. cer, cardiovascular disease and for @jaybgreene

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1Huntington is the #1 SBA 7(a) lender in the region made up of Indiana, Kentucky, Ohio, Michigan, West Virginia To register, and Western PA. Source: U.S. SBA from October 1, 2007, through June 30, 2011. visit www.esd.org Member FDIC. B® and Huntington® are federally registered service marks of Huntington Bancshares Incorporated. Huntington.® Welcome.TM is a service mark of Huntington Bancshares Incorporated. or call 248-353-0735. ©2011 Huntington Bancshares Incorporated. 20111024-NEWS--0025-NAT-CCI-CD_-- 10/21/2011 11:09 AM Page 1

October 24, 2011 CRAIN’S DETROIT BUSINESS Page 25

REPORTER’S NOTEBOOK Daniel Duggan AWARD WINNERS covers retail, real estate Projects in Detroit, Royal Oak and hospitality. win recognition, Page 27 Call (313) 446-0414 or write dduggan @crain.com. Real Estate Daniel Duggan

TWISTS 2003: Awarded the Lapeer tries to management contract AND TURNS for the Compuware COSTAR GROUP lure deals north COSTAR GROUP COSTAR GROUP headquarters in FOR HINES Detroit. As the construction industry waits for developers to start building again, 1991: Developed the 2003: political leaders in Lapeer County are Development trying to steer future projects to the $200 million, 43-story One 1996: Aided General 2005: Acquired Detroit Center at 500 Motors in purchasing manager for the 237,000- north — the far north of the metro the Detroit Detroit area. Woodward. Upon completion, the Renaissance square-foot One the 1 million square feet of Center, then oversaw RiverWalk. Northwestern The county is in pitch mode right office space was fully leased. the redevelopment of Plaza office now, reaching out to developers, the campus. building in investors and brokers with hopes of Southfield, influencing the next round of 2007: With One Detroit Center at 40 percent currently at industrial projects. vacancy, Hines was forced to give the building 93 percent “It’s the right time to start showing back to the lender, New York-based iStar Financial. COSTAR GROUP occupancy. off this area; it’s someplace that people might not be thinking about,” 2007: Designated by General Motors to build said Patricia Lucas, executive director a mixed-use retail and residential complex on 2006: Took over management of the Lapeer Development Corp. the vacant land near the Renaissance Center, a of the Coleman A. Young Her group has been giving project later halted by the slow economy. Municipal Center. Helped lower helicopter tours of the county and operating costs from $15 million to $7.3 million. hosting small events for people who 2008: Handled COSTAR GROUP may be influencing future deals. the 220,000- Her arguments for investment square-foot 2010: Gets construction 2011: Set to lose include the low cost of land and real redevelopment of consulting and three-year leasing and management estate, plenty of available buildings, the Guardian management contract for Detroit’s of the Renaissance Center access to rail lines and an eager Building for new jail and public safety building at year’s end, with CB Wayne County. labor force. at the former MGM Casino site. Richard Ellis taking over. The county has had some traction, boasting $34 million in commercial 2010: Leased 750,000 square investment in 2010 and on pace for feet at the Renaissance Center, $40 million in 2011. bringing occupancy to 93 percent. A major score came earlier this year when Grid Logic Inc., maker of materials for power grids, picked Metamora as the site for it to grow, seeded by $8.5 million in state and federal grants. It’s a move that has 167 jobs attached to it with a $20.6 Home field advantage million investment. Another victory came from Kamax, a German maker of engine fasteners, which grew beyond its Troy office in Hines one of the few national developers able to make a game of it in Detroit 2011 with a 139,000-square-foot expansion in Lapeer Township, BY DANIEL DUGGAN fundamentals of New York, south Florida to stay. adding to 240,000 square feet CRAIN’S DETROIT BUSINESS and Southern California, said Larry Em- Since the end of the 1980s, out-of-town already there. mons, a broker in the Southfield office of developers have come to town, built a few The company’s employee count of hen Houston-based developer Hines In- Grubb & Ellis Co. of the region’s major office buildings and 228 in Lapeer is expected to grow to terests LP entered the Detroit market “And without that consistency, the na- invested in some of the property before W in the 1990s, it quickly rose to a promi- tional developers that come in can some- leaving. 950 on a $250 million investment in coming years. nent position. times lose their stomach and move back Greenwood Village, Colo.-based John Taking on the development of One Detroit Madden Co. In her pitch as the cheaper out again,” he said. “To be built the alternative to other sites, Lucas Center, the 1 million-square-foot office tow- successful here, you have 492,000-square-foot build- points to bargain lease rates. er to be used as headquarters for Comerica to love to be here and you To be successful ing at 150 W. Jefferson in Bank in 1991, Hines soon found itself in the have to understand this 1989 and then had to sell it Industrial buildings are being “ mix with General Motors Corp. and its quest market.” in 1992 in foreclosure. leased for $3.50 per square foot in here, you to buy the Renaissance Center and redevel- Pru- Lapeer. That compares with $5.05 in In the case of Irvine, Calif.-based Oakland County, $5.68 in the west op it as a more modern office complex sev- Hines, Detroit of the have to love dential Realty Group built suburbs, and $5.75 in Washtenaw eral years later. 1990s offered the the Southfield Town Center County, according to Washington, But as the economy softened, the firm kind of large-scale, to be here in phases starting in 1986. D.C.-based CoStar Group Inc. was forced to transfer ownership of One complex develop- Minneapolis-based Opus Detroit Center back to the lender in 2007. Corp. Larry Schultz, a broker with ments the company and you built the 400,000- Farmington Hills-based Friedman And it recently lost the property manage- typically goes after, square-foot Van Buren Com- Integrated Real Estate Solutions, has ment and leasing position on the Renais- said John Wood, have to merce Center in Van Buren done deals in the Lapeer area and sance Center, effective at the end of the vice president over- Township before selling it attended a recent marketing event. year. seeing Detroit for understand to Malvern, Pa.-based real While the company continues to own the Hines. He said the Canadian National rail this market. estate investment trust line running through the county, with One Northwestern Plaza building in South- “It’s been a long commit- ” Liberty Property Trust. access to some of the industrial field and manage the Coleman A. Young Mu- ment,” he said. “Our per- Liberty then built up a Larry Emmons, Grubb & Ellis buildings, will be a key to building up nicipal Center and Compuware Building, it has formance has been strong portfolio of purchased and the stock of businesses. a much smaller role than in the past. in Detroit, and we continue developed buildings that It’s been a tough couple of years for one “You look at the costs of energy and to be excited about the market. Dan peaked at 4 million square feet, before sell- how it relates to transportation, and of the only national real estate investors Gilbert isn’t the only one who sees oppor- ing most of it off in 2006, 2007 and 2008. access to that rail line is going to be active in metro Detroit. tunities in Detroit.” After owning the 183,000-square-foot important,” he said. “It’s going to be And it underscores the nature of the The company still owns and manages Riverside Center building in Southfield more and more of a key in the future.” metro Detroit commercial real estate mar- 2.5 million square feet of real estate in the since 1991, New York-based Kennedy Asso- ket as being a place dominated by local in- He said the low land costs and tax region and is looking for new projects, ciates Real Estate Counsel LP sold the build- rates are going to make it appealing vestors and developers while the national Wood said. ing for $5 million, a quarter of its value as well. “And they’ve got a lot of developers come and go. Hines is one of several out-of-town devel- from 2000. It was part of a larger sell-off available land,” he said. Midwest markets like Detroit, Cleveland opers to come to the region and build pro- and Minneapolis lack the consistency and jects, but perhaps the only office developer See Developers, Page 26 20111024-NEWS--0026-NAT-CCI-CD_-- 10/21/2011 10:18 AM Page 1

Page 26 CRAIN’S DETROIT BUSINESS October 24, 2011 Focus: Real Estate Developers: Home game ■ From Page 25 2011 Michigan that also included the Columbia fore a very small group of decision- Center in Troy for $62 million. makers as opposed to the board of But otherwise, the Detroit area’s directors that most real estate in- Tax Conference major real estate portfolios contin- vestment trusts must seek ap- ue to be owned by the firms that proval from. Tuesday, November 8 - Thursday, November 10, 2011 | Suburban Collection Showplace | Novi have dominated the market, such “When you’re not answering to as Burton-Katzman Development Co., a board of directors, you can take DeMattia Group, Etkin Equities LLC, more risks,” she said. “So then you „ Tax Policy in Michigan with Farbman Group, Friedman Integrated can take advantage of the upside; Lt. Governor Brian Calley (invited) Real Estate Solutions, Kirco Manage- you can avoid the pricing wars ment, Grand Sakwa Properties LLC, that you find in bigger markets Kojaian Management Co., Schostak and you get better pricing.” „ 31 Subjects Delving into the Latest Bros. & Co. and Redico LLC. And as the soft economy has Tax Changes in Michigan and the Midwest Detroit’s office and industrial forced more national investors to transactions in recent history sell their Detroit-area real estate, „ have been almost exclusively local Harvey said, it has opened up sig- “Speakers seem to get better Designed for all CPAs, Attorneys investors, compared to the mix of nificant buying opportunities for and better every year!” and Tax Professionals ownership types seen in other local companies. – 2010 Attendee markets and on the national aver- She cited the Riverside building „ Up to 21 Hours of CPE Including age, according to data from New in Southfield. When Kennedy sold Accounting & Auditing and Ethics Sessions York-based Real Capital Analytics. the Riverside building, it set up In the past three years, private Southfield-based Farbman Group investors and users have dominat- to purchase it at $5 million com- „ NEW! Optional Pre-Conference Workshop ed the landscape of investment, the pared to a $36 million replacement Designed for New CPAs, Young Associates, company’s data shows, with no in- cost. Legislators and Anyone Needing a stitutional investment compared Detroit is not unique in the domi- to 34 percent of all transactions na- nance of local owners, said Mark Primer in Taxes tionally. Woods, managing director of South- Industrial deals in 2011 were pri- field-based Signature Associates. vate investors and users only, “You have to be very, very good while 37 percent of the national to compete with local, long-term in partnership with deals were institutional. developers,” he said. “In every On the industrial side, the De- market, there are local developers troit market has evolved slowly who command the market and will over time, and contractors were put up stiff competition for nation- Learn more at www.michcpa.org/MTC or call 248.267.3700 able to become developers and al firms that enter that market.” then large owners, said Gary Local firms have close relation- Roberts, CEO of the Plymouth- ships with the lenders that are ac- based DeMattia Group. It’s a sce- tive in a certain market, and they nario much like that of the founder also have close relationships with of the company, Bob DeMattia, the brokers and businesses there. who started as a general contrac- And even with being a lifelong tor and became a developer. metro Detroit resident, being an “This market has evolved, and investor for 15 years and amassing so too have the local players,” he 12 million square feet of real es- said. “The way it has gone, it has- tate, Harvey said there are groups n’t offered an easy point for the na- that it’s hard to be part of. tional developers to jump in.” “We’ve been here so long we’re One national developer that has thought of as a local company that stayed and grown is New York- happens to live in New York,” she based Ashley Capital. said. “But there is still a network Since coming here in 1992, the of owners that are from here, who company has built a portfolio of have known each other all their 12 million square feet of industrial lives, and we are always going to and office space locally. be on the outside of that hometown Sue Harvey, a senior vice presi- group.” dent for the firm, said that as a pri- Daniel Duggan: (313) 446-0414, vately held company, investment [email protected]. Twitter: decisions at Ashley Capital go be- @d_duggan

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October 24, 2011 CRAIN’S DETROIT BUSINESS Page 27 Focus: Real Estate Detroit, Royal Oak development projects stand out for awards

BY DANIEL DUGGAN market for get- to find some- proval processes, velopment of six historic homes CRAIN’S DETROIT BUSINESS ting projects fi- HOW TO ATTEND thing that planned for into the Ferry Street Inn and the nanced. has hap- the future and planning of an artistic district in A 25-year career in building De- Since open- When: Nov. 9, 10; pened in De- had her group the city, called Sugar Hill Arts Dis- troit’s Midtown neighborhood, an ing the com- awards Nov. 9 at troit’s thriv- develop build- trict. 1:45 p.m. entertainment complex in Royal plex, he’s made ing ings on their Where: Cobo Center Mosey and her group have aided Oak and a series of Detroit invest- the high-end Midtown own — or just in planning and developing bowling alleys Cost: $165 per day neighbor- pick ments unlike any other in the or $265 for two days. $25 million in infrastructure pro- and movie the- hood that up garbage in the city’s history are being recognized Register: jects in Midtown, $46 million in by the Real Estate Excellence aters a go-to lo- umuliforum.com doesn’t have neighborhoods. commercial projects and $400 mil- Awards. Glantz cation for local Sue Mosey’s A recent suc- Mosey lion in residential projects in the Crain’s Detroit Business and charity events. fingerprints on it. cess story is be- past 10 years. the Grand Rapids Business Jour- Real Estate Excellence Award: She’s found grants for projects, ing part of the team to bring Whole Daniel Duggan: (313) 446-0414, nal give the awards each year Sue Mosey, Midtown Detroit Inc. helped guide developers through Foods Market to Detroit. [email protected]. Twitter: during the University of In the course of 24 years, it’s hard Detroit’s notoriously tricky ap- It follows spearheading the rede- @d_duggan Michigan/Urban Land Institute Real Estate Forum. Three are given for the Detroit area: the overall Real Estate Excel- lence Award, Lease/Sale of the Year and Development/Redevelop- ment of the Year. Chosen for this year’s awards: Lease/Sale of the Year: Dan A LOAN WITH Gilbert and his Bedrock Manage- ment Services LLC real estate team led by Jim Ketai. In the course of one year, the group has closed on five purchases rep- Gilbert resenting 1.7 million square feet of office space and 3,500 parking spaces — with at least three more in the A CITIZENS BANK LOAN LETS YOU FOCUS ON THE FUTURE ... because the businesses works. And it’s a transformational investment in the city, giving new that will succeed tomorrow are the ones that make the right choices today. They are life to old buildings and drawing new businesses to the city. led by individuals who see opportunity for growth and expansion, and take action with Development/Redevelopment of complete confidence. A loan from Citizens Bank will keep you moving forward and the Year: Emagine Royal Oak. A practically unusable slice of never wondering, “What could have been?” land in one of the region’s most vi- brant entertainment districts be- came home to the $20 million Get the loan you deserve now. To make an appointment with a Citizens Banker, call Emagine theater complex. Paul Glantz, founder and chair- 800-946-2264 or visit CITIZENSBANKING.COM/BUSINESS. man of Troy-based Emagine Enter- tainment, brought the building from plan to fruition, navigating brownfield guidelines, public ap- provals and a downright nasty

NOMINATE MICHIGAN COMPANIES TO WATCH The deadline to nominate businesses for next year’s Michigan 50 Companies to Watch awards is Nov. 10. The annual list is put together by the Grand Rapids-based Michigan Small Business & Technology Development Center to recognize growing second- stage businesses and is part of the Michigan Celebrates Small Business awards program. An employee count of six to 99 full-time workers and annual revenue of between $750,000 and $50 million are among the criteria to qualify. The awards event is scheduled April 26 in Lansing. A list of the winners also will be published in Crain’s Detroit Business. More information, including a full list of qualifying criteria, is at www.michigan.companiesto watch.org. 20111024-NEWS--0028-NAT-CCI-CD_-- 10/21/2011 10:20 AM Page 1

Page 28 CRAIN’S DETROIT BUSINESS October 24, 2011

PEOPLE CONSTRUCTION MARKETING Vera Ashford to IN THE SPOTLIGHT Patrick Dalessan- managing editor Detroit-based VisionIT, a provider dro to director of of newsroom op- of information technology, client strategy, erations, The Con- JGA Inc., South- struction Associa- managed services, staffing and field, from vice tion of Michigan, vendor management, has named president, Motor- Bloomfield Hills, Amy Courter to sports Experience from architectur- the new International, al reporter. position of Youngstown, chief Ohio. ENTERTAINMENT information Todd Malhoit to officer. associate creative Robert Johnson to Dalessandro Ashford CFO, Palace Courter, 49, director, Sports & Entertainment Inc., Auburn had been Pushtwentytwo, Pontiac, from design Hills, from senior vice president, cor- national director, Starrconstand Business porate controller. Also Daniel Lincoln commander of Communication Inc., Detroit. to vice president, the United REAL ESTATE corporate con- Courter States Air troller from fi- Force Auxiliary, Greg Stephens, to senior vice president nance director. the Civil Air Patrol, in Montgomery, of appraisal operations and compli- Ala. ance, Metro-West Appraisal Co. LLC, FINANCE She also worked for Livonia-based Northville, from vice president opera- Jeff Antaya to Valassis Communications Inc. for tional risk, Bank of America, Plano, partner, Plante & 20 years, ending her tenure as Texas. Also, Brandon Boudreau to COO, Moran PLLC, vice president of information from vice president of operations. Southfield, from technology and associate and re- telecommunications. SUPPLIERS maining chief Antaya Courter earned a Bachelor of Arts Lisa Bahash to CEO, Ride Control LLC, marketing officer. degree in psychology and Also: William Hen- Troy, remaining president. education from Kalamazoo son, Betsy Rust, College. Kimber Smail and TELECOMMUNICATIONS Gerald Stein to er, federal tax services, from senior Eric Spadafora to partner from as- associate. director of busi- sociate; and Bran- ness sales for the don Podolski to FOOD member, Plante Michigan/Indi- Moran Cresa LLC, Michael Urbin to executive chef, MGM ana/Kentucky re- from vice presi- Grand Detroit LLC, from assistant ex- gion, Verizon dent, industrial ecutive chef. Wireless, South- Rust team leader. field, from associ- Katharine Bird and Sean Brown to LAW ate director of en- manager, audit services, Grant Thorn- Kathleen Corpus to partner, Whiteford terprise sales for ton LLP, Southfield, from senior asso- Taylor Preston LLP, Dearborn, from Midwest area, ciate. Also: Brandon Russell to manag- partner, LeClair Ryan, Dearborn. Spadafora Schaumburg, Ill.

CALENDAR WEDNESDAY HELP CRAIN’S CELEBRATE COMING EVENTS OCT. 26 Detroit Economic Club. 11:30 a.m.-1:30 WINNING ENTREPRENEURS p.m. Nov. 2. With Patrick Doyle, CEO, Top Trends in Social Media Your Busi- Domino’s Pizza; and Duncan Nieder- ness is Missing Out On. 11:30 a.m.-1 p.m. Join Crain’s Detroit Business and auer, CEO, NYSE Euronext. Lunch Ann Arbor Marketing. With Entrepreneurs’ Organization as Townsend Hotel, Birmingham. $45 Dave Linabury, director of interactive, they honor the DEC members, $55 guests of members, Campbell-Ewald. Connor O’Neill’s, Ann winners of $75 nonmembers. Contact: (313) 963- Arbor. Free, suggested donation $3; Crain’s eighth 8547; email: [email protected]; lunch discounted to $10 for LA2M mem- annual Salute website: www.econclub.org. bers. Contact: (734) 272-4698; email: to [email protected]; website: www.la2m.org. Entrepreneurs Mega Membership Reception. 5:30- 7:30-10 a.m. 7:30 p.m. Nov. 3. Detroit Regional Crain’s 40 under 40. 5-9 p.m. Crain’s Nov. 17 at Chamber, Blue Cross Blue Shield of Detroit Business, others. Celebrating Greektown Michigan. Star Lanes at Emagine Roy- the current honorees with colleagues, Casino-Hotel. clients, family and friends. Emagine al Oak. $15. Contact: (313) 596-0343; Jim Hiller, email: bmaddox@detroitchamber. Royal Oak. $50, $45 for groups of 10 or CEO of Hiller’s more, $40 for 40 under 40 alumni (must com; website: www.detroitchamber. Hiller Markets, will call for discounted rate), $65 on-site. com. Contact: (313) 446-0300; website: share his story, and winners will www.crainsdetroit.com/events. join a panel to talk about their experiences. Meet the Purchasers. 8-11:30 a.m. Nov. 9. Priority Health; Eastern Michigan Tickets are $40 each, $35 for The Role of Philanthropy Changing University; others. Renaissance Con- groups of 10 or more, and $55 at Detroit. 7:30-9 p.m. With Rip Rapson, ference Center, Detroit. $30 chamber president and CEO, The Kresge Foun- the door. For discounted group members, $70 nonmembers. Contact: dation. Community House, Birming- rates, call (313) 446-0300. For (313) 596-0479, email: malabast@ ham. Free, RSVP requested. Contact: more information, go to detroitchamber.com; website: www. (248) 644-5832; email: frannieg@ www.crainsdetroit.com/events. detroitchamber.com. communityhouse.com; website: www.communityhouse.com. Compuware; Deirdre Greene Groves, executive director, The Collaborative America’s Conversation on Race. 11:30 Group; and Kim Yost, CEO, Art Van a.m.-1:30 p.m. Nov. 10. Inforum; New Inside the CEO Mind. 8-10 a.m. Detroit Furniture. Lawrence Technological Detroit; others. With Michele Norris, Regional Chamber Small Business: Un- University, Southfield. Free. Contact: host, “All Things Considered,” NPR. locked, Priority Health. With Mike (248) 204-2206; email: [email protected]; MotorCity Casino-Hotel, Detroit. $55 Fezzey, president, Huntington National website: events.detroit.cbs Inforum members, $65 nonmembers, Bank. Huntington National Bank, Troy. local.com. $600 table of 10 (includes special recog- $25 chamber members, $40 nonmem- nition). Contact: (877) 633-3500; web- bers. Contact: (313) 596-0479; email: site: www.inforummichigan.org. [email protected]; web- Financial Literacy - A General Econom- ic Outlook. 7:30-10 a.m. Crain’s Detroit site: www.detroitchamber.com. Business, University of Michigan- Crain’s 2011 Cool Places to Work. Dearborn. With state Treasurer Andy 3:30-9 p.m. Nov. 10. Crain’s Detroit Dillon; Ellen Hughes-Cromwick, chief THURSDAY economist, Ford Motor Co.; others. Business, others. Recognizing compa- OCT. 27 Fairlane Center North Quad E on UM- nies in metro Detroit that have done D campus. $35 in advance, $30 for UM- their best to keep it cool in this envi- “Resurrecting Detroit” Panel Discus- D students and groups of 10 or more, ronment. The Henry Ford, Dearborn. sion. 8-9:30 a.m. Lawrence Technologi- $50 at the door. Contact: (313) 446-0300. $60, $40 for groups of 20 or more, $75 cal University; others. With Peter Kar- Website; onsite. Contact: (313) 446-0300; website: manos Jr., chairman and CEO, www.crainsdetroit.com/events. www.crainsdetroit.com/events. 20111024-NEWS--0029-NAT-CCI-CD_-- 10/21/2011 4:48 PM Page 1

October 24, 2011 CRAIN’S DETROIT BUSINESS Page 29 Physicians, St. John Providence form ACO, gain contracting power

BY JAY GREENE for-service patients. St. John Providence HealthPartners) larger organization would be able gan that are considering partici- CRAIN’S DETROIT BUSINESS Created earlier this year, The and taking it a step further,” to support our practices.” pating in Medicare’s ACO pilot Physician Alliance LLC, the St. Clair Eathorne said. HealthPartners, The six physician organizations, project in 2012, Eathorne said Part- Over the past 18 months, nearly Shores-based physician organiza- which has contracts with payers which were developed around St. ners In Care will spend time next 2,400 physicians employed by or on tion, has joined St. John Provi- for more than 100,000 people, sun- John’s six hospitals, are St. John year developing its infrastructure the medical staffs of Warren-based dence in a 50-50 joint venture to sets as an organization Dec. 31. Medical Group, Providence Medical that includes expanding its elec- St. John Providence Health System form St. John Providence Partners In Michael Madden, CEO of The Group, Macomb St. Clair IPA, Macomb tronic medical record and health have been developing a new physi- Care LLC, a new physician-hospital Physician Alliance, said six inde- Physicians Organization, Oakland information exchange system. cian organization designed to part- ACO, said Scott Eathorne, M.D., pendent physician organizations General Physicians and River District Over the next 16 months, one ner with the six-hospital Roman CEO of Partners in Care. decided to merge primarily to en- Physician Group. goal of Partners In Care is to in- Catholic system in a new account- “We fully intend to develop the gage in more effective contract ne- Madden also said The Physician stall electronic medical record sys- able-care organization. infrastructure and managed-care gotiations with managed-care pay- Alliance expects to add other tems in another 400 primary care An ACO is a joint venture orga- contracting approach” to accept ers under health care reform and physician organizations not cur- practices within The Physician Al- nization of physicians, hospitals risk contracting with Medicare, value-based, at-risk contracting. rently aligned with St. John Provi- liance, Eathorne said. and other providers that agree to Blue Cross Blue Shield of Michigan “The key is population manage- dence Health System. Jay Greene: (313) 446-0325, coordinate care, reduce costs and and other payers, Eathorne said. ment and the need to keep patients Unlike some accountable-care [email protected]. Twitter: @jay- improve quality for Medicare fee- “We are taking what worked (in healthy,” Madden said. “We felt a organizations in Southeast Michi- bgreene CAREER MOVES REAL ESTATE

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Page 30 CRAIN’S DETROIT BUSINESS October 24, 2011 Your Bank’s Davidson: Foundation builds $191M ■ From Page 1 Not Lending? favor programs and operating Rob Collier. grants, just as Davidson did. “My sense is they are LARGEST MICHIGAN FAMILY FOUNDATIONS Many of the gifts Davidson made going to be continuing Foundation 2010 assets during his lifetime had an interna- a lot of Bill Davidson’s (millions) tional focus. Among them was $30 personal priorities, 1. The Herbert H. and Grace A. million to the University of Michigan and they will be a ma- Dow Foundation, Midland $392.3* in 1992 to establish the William jor philanthropic force Davidson Institute with the dual goals in Southeast Michi- 2. Max M. and Marjorie S. of helping countries transition to gan,” Collier said. Fisher Foundation, Southfield $247.5 free-market economies through ed- 3. Van Andel Fund, Grand Rapids $211.2* ucation and training for indigenous Cash stock 4. Ruth Mott Foundation, Flint $198.6* and multinational business owners 5. William Davidson Foundation, Troy $191.4 The $191 million in and managers in those countries, 6. The Rollin M. cash and stock was and providing cutting-edge develop- Gerstacker Foundation, Midland $163.9 ment for faculty and students in transferred from two UM’s business school. grantor retained annu- 7. Herrick Foundation, Detroit $148.8 Davidson also made undisclosed ity trusts, known as 8. The Samuel and Jean Frankel gifts to the Jerusalem Archaeological GRATs, a financial in- Jewish Heritage Foundation, Troy $129.4* Park and the Davidson Center for Ex- strument commonly 9. Frey Foundation, Grand Rapids $123.4* hibition and Virtual Reconstruction in used to make large fi- 10. Richard & Jane ours are Jerusalem, and donated millions nancial gifts to family Manoogian Foundation, Taylor $123.1 as the founding philanthropist of members without pay- . Source: Crain’s research the Los Angeles-based Professional ing federal gift tax. Call for a free consultation. * 2009 assets Loan amounts: $1,000,000.00 and above. Leaders Project, a national program Stock holdings in to train the next generation of Jew- Auburn Hills-based At least one other case is pend- ish community service profession- Guardian Industries accounted for s Investment Real Estate s Equipment ing in Oakland County Probate Court. als in business and management. just over $173 million of the assets s Owner Occupied Real Estate s Turnaround Consulting Filed in 2009, it was suppressed by He funded MBA programs and that transferred. According to the the court and is not available to s Lines of Credit s Loan Modifications Jewish education programs for foundation’s 990 tax filing, directly the public. s Accounts Receivable s Bank Workouts hundreds of young people across or indirectly it holds more than 2 They follow three other lawsuits the U.S. in addition to launching a percent of Guardian. Cash contri- against the estate that were settled college scholarship program for the butions totaled $18 million. last year for undisclosed amounts. children of Guardian employees. The transfer increased the foun- Two were filed by a group of Israeli And he made many local gifts, dation’s assets to $191.4 million at businessmen operating as Mile- including $2 million to Henry Ford the end of last year from $411,775 at stones Upgrading & Industries, report- Hospital, $1 million to the Barbara the end of 2009. edly seeking the remaining $15 mil- Ann Karmanos Cancer Center and 800.509.3552 Generally, GRATs are used to lion of $40 million they alleged other gifts to the Detroit Symphony transfer wealth to a grantor’s chil- Davidson had pledged to invest in www.eclipsecapitalgroup.com Orchestra; the Edison Institute, dren rather than as a charitable an Israeli company, IDB Holding. 2207 Orchard Lake Road, Sylvan Lake, MI 48320 which operates as Greenfield Vil- “Since 1997” giving vehicle, said Julius Giar- Another civil suit was filed in lage and The Henry Ford; Michigan marco, chairman of the trust and Oakland County Probate Court State University; and United Way for estates practice group of Giarmarco, against Jonathan Aaron and Eric Southeastern Michigan. Mullins & Horton PC in Troy. Garber, co-representatives of the Grants from the Davidson Foun- “The whole idea is if the assets in estate in early 2010. dation would likely be large gifts the GRAT outperform the IRS pub- New York-based Areivim Philan- that could have more impact and, lished interest rate, that growth thropic Group Inc. filed the suit to like Davidson, the family would passes to the children tax free.” collect $4.8 million of a disputed seek a return in terms of opportu- But if the grantor dies before the $5 million pledge Davidson al- 800-292-3831 nities created for others. specified term of the GRAT, which legedly made in 2006. Areivim is a Charitable foundations are re- can run two years or more, the nonprofit foundation that supports indiantrails.com quired by federal rules to give out property is added back into the Jewish educational programs; it each year 5 percent of the average grantor’s estate and would be sub- was founded and is chaired by foundation value over a 12-month ject to estate taxes unless it was philanthropist and former hedge period, said Gregory Schupra, vice left to charity, Julius said. fund operator Michael Steinhardt. president and group manager, The assets in the foundation are The settlement was confidential, Comerica Charitable Services Group. now irrevocable, Julius said. but “everyone was pleased,” said But grants exceeding that Henry Baskin, president of The ONE HU amount can be credited toward fu- G ND Baskin Law Firm in Birmingham, IN R T E D Lawsuits cloud future transfers A ture years, and that’s what the R Y which represented Areivim. B E E A Davidson Foundation has done. L R But whether or not the cash and

E Sherri Welch: (313) 446-1694, S C 100 It accrued $3.8 million in excess stock transfer to the foundation [email protected]. Twitter: @sher- distributions between 2008 and will be the last is unclear. riwelch 2009 and tapped $50,448 of that ex- cess carryover in 2010, according to its 990 tax form filed with the In- ternal Revenue Service. The foundation, which does not accept unsolicited grant requests, noted in its tax filing that it has ap- proved a future payment of $13.2 million to the American Committee for the Weizmann Institute of Science Inc. in New York. For now, the foundation has two part-time paid employees. Aaron serving as president and director, Comfort and was paid $25,000 in 2010. David- son’s son, Ethan Davidson, who is serving as director and treasurer, t
$IBSUFST received $10,000 from the founda- Luxury tion last year. t
5PVST The Council of Michigan Founda- tions, which honored Davidson in t
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the late 1990s for his philanthropy, 00 has had a relationship with the $100 OFF family for years and is currently t
$POWFOUJPO
4FSWJDFT SAVE providing the family with the ba- sic do’s and don’ts of running a t
$PSQPSBUF
&WFOUT foundation and ensuring it has ac- Contact Indian Trails for details. Must use this promotional code at time of booking: 2011CDB-OCT cess to all the right tools on gover- t
4DIFEVMFE
4FSWJDF nance, finance, administration and grant making, said President 20111024-NEWS--0031-NAT-CCI-CD_-- 10/21/2011 5:43 PM Page 1

October 24, 2011 CRAIN’S DETROIT BUSINESS Page 31 Wings: Team below the salary cap, has opportunity to bulk up ■ From Page 3 salary space. every year, the Red Wings have re- The National Hockey League’s FCI money the team collects. itch can dip into their other busi- Also retiring and freeing up mained in the black. average is $101.66. The Red Wings also have made nesses to subsidize it. money were center Mike Modano Estimates for the 2009-10 season The calculation is derived by a moves on the corporate sponsor- The family fortune comes from ($1.75 million), goalie Chris Os- by Forbes show Detroit seventh in simple formula: A fan at Joe Louis ship front. In September, the team its $2.2 billion in annual sales from good ($1.4 million) and center Kris the 30-team NHL with $119 million buys a ticket at $51.73 (average inked a deal with Ada-based its Little Caesars pizza chain or the Draper ($1.5 million). in revenue and sixth in operating price), a $6 beer, a $3.50 soft drink, Amway Corp., the network-based di- $446 million from Marian Ilitch’s Instead of signing an expensive income at $15.3 million. a $3.25 hot dog, $20 for parking, a $7 rect-marketing giant, to become MotorCity Casino. free agent to replace Rafalski, the The team doesn’t comment on program and a $10 hat. the team’s first-ever presenting The Ilitches, who are planning Wings chose to sign several inex- its financials. A full season of sellouts at Joe team sponsor. Financial terms to build a new downtown arena for pensive veterans, such as defense- The salaries are offset by a deeply Louis, based on the Fan Cost In- were not disclosed, but that con- the Wings in coming years, bought man Mike Commodore ($1 mil- loyal fan base that keeps the Red dex, would generate $83.4 million tract is thought to be a two-year, the then-moribund team for $8 mil- lion), left wing Fabian Wings near the top of the NHL’s at- over the 41 home games. Part of seven-figure deal. lion from Bruce Norris in 1982. Brunnstrom ($600,000), goalie Ty tendance rankings every year. that is handed over to the city in a The Amway logo now appears Mike Ilitch also owns the Tigers. Conklin ($750,000) and defenseman Detroit has played two home form of a 10 percent ticket tax, 10 on all Wings-branded signage at His stewardship of the Wings Ian White ($2.875 million). percent surcharge on concessions games out of a slate of 41 this sea- Joe Louis, on tickets and else- has led to him be recognized as one The Red Wings spent $59.4 mil- and 7 percent on suite sales. son, and both have been sold out at where. of the top owners in pro sports by lion on player salaries in 2010-11, 20,066 each. That puts the Red The team once had 396 consecu- Detroit also extended a deal with Sports Illustrated, ESPN and Had- which was right at that season’s Wings third in the 30-team NHL in tive sellouts from 1996 through the Chrysler Group LLC in another rela- donfield, N.J.-based Turnkey Sports cap. per-game attendance average. It start of the 2007-08 season — which tionship that it declined to discuss & Entertainment Inc., which mea- This year’s salary floor — the finished last season fourth in the coincides with the economic col- the financials. sures brand effectiveness and val- amount the team must at least league at 19,680 per game. lapse locally and nationally. Another line of revenue comes spend on player payroll — is $48 A single fan is worth $101.48 per Detroit also picks up supplemen- ues of pro sports teams. million. For context, the inaugural game to the Red Wings, according tal revenue from pricier tickets, from broadcast rights: The Red The Red Wings are the top team salary cap in 2005-06 was just $39 to Chicago-based sports research suite rentals and advertising during Wings, Tigers and Detroit Pistons in The Hockey News’ weekly power million. firm Team Marketing Report’s Fan the playoffs. And the deeper into the have separate 10-year broadcast rankings. Despite the maximum spending Cost Index published last year. playoffs the Red Wings get, the more deals, signed in 2008, with Fox “Another year, another spotless Sports Detroit and collectively are start for the NHL’s model fran- worth about $1 billion. chise,” the magazine said. And if there isn’t enough rev- Bill Shea: (313) 446-1626, enue from the team and its various [email protected]. Twitter: Wire harness: Suits may center here deals, owners Mike and Marin Il- @bill_shea19 ■ From Page 3 America Inc. of Canton Township, “It does seem like Detroit would ers in the Michigan lawsuits, other the industry market leader. be the center of gravity for those cas- than Cafferty Faucher, included Ⅲ Sumitomo Electric Industries es, because Michigan is home to a Flood Lanctot Connor & Stablein PLLC Ltd., No. 2 in size and the fastest lot of the firms and (witnesses),” in Royal Oak, Wienner & Gould PC in growing, which has an administra- said Patrick Cafferty, founding part- Rochester and New York-based tive headquarters in Kentucky and ner of Cafferty Faucher LLP in Ann Ar- Milberg LLP. offices in Northville. bor, which is handling two of the David Ettinger, partner and Ⅲ Delphi Automotive LLP, Troy five buyer lawsuits in Michigan. chairman of the antitrust and Ⅲ Lear Corp., Southfield “But then the MDL (multidis- trade regulation practice group at Ⅲ Leoni AG, Germany trict litigation panel) is not always Detroit-based Honigman Miller Ⅲ S-Y Systems Technologies GbmH, predictable with those decisions.” Schwartz and Cohn LLP, said it’s pos- Regensberg, Germany, which The global automotive wiring sible that two classifications of Yazaki acquired in 2005. S-Y has an harness market grew 32.2 percent to lawsuits against the suppliers office in Dearborn. $29 billion last year from $21.9 bil- could emerge: one for “direct pur- Some of the new lawsuits also go lion in 2009, and could grow to $32 chasers” or OEMs that allege they on to target Southfield-based Denso billion by 2012, according to the overpaid for components, and an- Corp., Tokai Rika Co. Ltd. and Fujiku- Global and China Automotive other for “indirect purchasers” ra America Inc., which has offices in Wiring Harness Industry Report, like dealers and consumers who Farmington Hills and Santa Clara, 2010-2011, released by Dublin, Ire- may have paid a markup. Calif., as defendants. land-based tech analyst firm Re- John Barrett, president of the Bar- Denso and Tokai’s Plymouth search and Markets earlier this year. rett Law Group PA in Lexington, Township-based subsidiary Tokai Yazaki accounts for nearly 30 Miss., who brought another pro- Rika Group North America was raided percent of the global wire harness posed class action on behalf of Ham- by FBI agents last year along with market. Sumitomo was fastest- mett Motor Co. Inc. in Durant, Miss., Yazaki North America as part of the growing with 24 percent, while said dealerships would likely have two sets of legal claims against the global price-fixing probe. Delphi was third with about 16.7 suppliers, since they purchase both “The price of cars is already high percent global market share. vehicle inventory from OEMs and anyway, and we’re fighting every Local suppliers contacted by replacement wire harnesses for day for business share without the Crain’s downplayed the lawsuits. warranty and other repair work in added burden of what the (suppli- Lindsey Williams, director of cor- their service divisions. ers) have done to competition,” said porate relations at Delphi, said the “I think that most of the dealers Steve Landers, president of Little allegations against the company are in the United States are going to be Rock, Ark.-based Landers Auto Group without merit and Delphi will seek somehow affected. It depends on the No. 1 Inc. and owner of Landers Toy- to be dismissed from the suits. volume of aftermarket wire har- ota and Steve Landers Chrysler Lear said in a statement that it nesses sold, but a dealer might at Dodge Jeep Ram, who brought one also believes the claims to be with- some point have done wire harness of three dealership lawsuits. out merit, and Misty Matthews, work on any car that came into its “In a way, it’s really a double- manager of communications for service department,” he said. “And punch to the dealer, though it also Yazaki North America, said its le- if you did one (wiring) replacement gets passed along to the consumer. gal team is reviewing them. in the last 10 years, it’s enough to Hopefully, doing this (the lawsuit) Robert Calo, shareholder and co- give you standing (to sue).” can get them to adjust the prices chair of the white-collar criminal But John Youngblood, chairman on future harnesses, to offset the defense practice at Portland, Ore.- of the automotive dealer practice overcharging.” based Lane Powell PC and attorney at Abbott, Nicholson, Quilter, Esshaki The lawsuits — three on behalf for Furukawa in the criminal case & Youngblood PC in Detroit, said he of dealerships and seven on behalf in Detroit, did not return two is not sure dealers have the best of consumers who bought Honda, phone calls seeking comment last claims since their markups are Toyota and other cars during 2000- week. David Noble, senior manag- passed along to consumers. 2010 — all followed days after the er of administration at American The most likely plaintiffs, he Furukawa plea agreement became Furukawa, also did not return two said, would either be large dealer- public and seek to certify a class phone messages. ships who stock inventories of re- action on behalf of harness buyers Attorneys Thomas Gallagher placement harnesses or move a siz- in Michigan, California, Minneso- and Matthew Lund of Pennsylva- able volume of marked-up vehicles ta, Arkansas and Mississippi. nia-based Pepper Hamilton LLP, each year, or smaller dealers who Local attorneys expect the suits which has an office in Southfield, can be swayed by eager plaintiff law will coalesce soon into one by order represent Ukai in the Furukawa firms into joining class actions. of the U.S. Judicial Panel on Multi-dis- criminal case. It was unclear who Chad Halcom: (313) 446-6796, trict Litigation — possibly before represents the other executives. [email protected]. Twitter: Steeh, or another judge in Detroit. Plaintiff firms representing buy- @chadhalcom 20111024-NEWS--0032-NAT-CCI-CD_-- 10/21/2011 5:45 PM Page 1

Page 32 CRAIN’S DETROIT BUSINESS October 24, 2011 Art: Heidelberg impact Kojaian: Investments a real lifeline? ■ From Page 1 ■ From Page 3 an amazing artistic project. budget and a visitor count service a troubled loan, then Those 22.9 million shares New York Times story. People were coming from of 35,000 per year, the muse- work on the debt transaction, the would be worth $389.3 million in And the day after the Insignia so far away specifically to um has an approximate sale transaction and the future 2007 when the stock was at $17 a deal closed, Farkas founded Island see the Heidelberg Project. $2.3 million regional eco- leasing of the building,” said Do- share. Capital Group, the entity through We knew they had to be do- This story nomic impact. About 25 per- bell. “To do all of that, he’ll need a Dobell said Kojaian probably which he has made all the recent ing other things in De- originally cent of visitors to MOCAD lot of good brokers at midsize hasn’t made money, because even acquisitions. appeared at troit,” Whitfield said. www.detroit are non-local. firms across the country. though he sold some stocks near Since then, he’s been rebuild- Approximately 70 per- makeithere.com “The Detroit and wider “He can get that with Grubb & an all-time high, “He’s also ing his empire, and continuing to cent, or 35,000, of the esti- Detroit region faces a wide Ellis with a minimal invest- bought all the way down.” take risks. mated 50,000 annual visitors to Hei- array of challenges,” Sheppard ment.” In 2010, he bought C-III, a com- delberg are not from Wayne said. “I don’t think it’s correct to In Michigan, for example, C-III pany that handles bond-backed County, and they come from farther say that art and cultural organiza- is the special servicer on 40 Maybe real estate loans when they go than just other parts of the state. tions and projects alone can com- Michigan properties valued at “ bad. A graph on the C3D website pletely turn around the economy $356 million with loans that are (Kojaian’s) saying The company works specifical- shows the home locations of visi- of Detroit ... but I think arts and delinquent, in foreclosure or ly with loans backed by bonds. tors who signed the Heidelberg culture projects like the HP are owned by lenders, according to that he goes along Special servicers are the compa- guestbook. The map shows visi- (part of that).” data from New York-based Trepp nies that either adjust the loans to tors from as far away as Maine and The Heidelberg Project is in the LLC. with this and lives an affordable level for the proper- Florida. Heidelberg draws interna- design stage of building an arts Dobell said the extremely low ty owners or sell the property to tional visitors as well. center near the site of the project. value of the stock means Farkas to fight another get money back. Stephen Sheppard, director of The center would house the non- can buy control at a relatively low Farkas expanded his portfolio C3D, said the research center has profit’s administrative offices, cur- price. Grubb & Ellis’ (NYSE: day. in August with the acquisition of done many similar studies. The rently a few miles away on Watson GBE) 69.8 million shares had a to- ” McLean, Va.-based JER Partners Street off Woodward Avenue. Heidelberg study surprised him. tal value of $28.6 million last last Brandon Dobell, William Blair & Co. Inc., which expanded his special “We studied 35 organizations Beth Diamond, assistant profes- week. servicing portfolio. It currently around the country, and there’s no sor of landscape architecture at the Dobell said it is likely a tough services 11,386 loans with a bal- University of Michigan in Ann Arbor, organization we’ve studied with a decision for Kojaian. ance of $111.4 billion, according to is working with student Nick budget this modest that is bringing “Kojaian has an ownership in Access to brokerage firms Trepp, making C-III second- Lavelle on the center’s design. She in near this number of visitors,” both debt and equity,” Dobell But the Grubb & Ellis invest- largest in the nation. told DetroitMakeItHere.com earlier Sheppard said. “They are punch- said. “It’s hard to tell where he ment may have helped Kojaian as In June, Farkas announced a this year that the center, called the ing way above their weight.” stands on this. a real estate investor over the last deal to acquire New Jersey-based House That Makes Sense Center, Artist Tyree Guyton started Hei- “He certainly has enough con- 15 years, said Matt Fenster, a 20- NAI Global, a real estate company would represent sustainable use of delberg in 1986. It consists of sever- trol to scuttle the deal if he wants year broker and executive direc- that sells its franchised name to al houses, on Heidelberg Street be- recycled materials. “If there’s one thing Detroit to, but maybe he’s saying that he tor of Paragon Corporate Realty Ser- local real estate companies, tween Gratiot Avenue and Mt. goes along with this and lives to vices in Troy. which also get access to deals Elliott Street, that he covered in doesn’t have a shortage of, it’s building materials,” Diamond fight another day, because his eq- As a major owner of buildings, from other parts of the country. polka dots and discarded items — uity isn’t worth very much.” Kojaian needs people to manage The deal is expected to close by anything from auto parts to stuffed said. “We’d be negligent if we shipped in materials from other the buildings, maintain and oper- the end of the year. animals. The detritus extends well places.” ate them. While he has used a The Southfield-based Farbman into the yards and nearby areas, A 15-year investment Whitfield hopes the arts center range of firms to lease the build- Group, for example, has a broker- including the trees, making for a will let Heidelberg staff observe Kojaian made his major invest- ings, he’s used Grubb & Ellis to age company named NAI Farbman. full view for approaching visitors. more closely what goes on at the ment in Grubb & Ellis in 1996 manage many of them. President and CEO Andy Farb- Not surprisingly, city officials for project site. She suspects the num- when he was growing his portfo- “He’s been able to outsource man said it’s too early to com- many years took exception to the ber of visitors cited in the study is lio of real estate ownership. the work and not need to keep all ment on what the series of deals scene. In recent years, the city has modest and believes another study With his father and brother, C. those employees on his books,” means for his firm. been more supportive of the project, would be warranted once more ac- Michael Kojaian purchased Fenster said. “And through his but the study still brings a much- curate numbers can be collected. 2.5 million shares in the company ownership of Grubb & Ellis, he’s needed boost, Whitfield said. The Heidelberg Project has re- worth $10 million, representing probably been able to negotiate Finding a new structure “Detroit has historically been a ceived grants totaling more than 13.5 percent of the company. more favorable rates for his in- “I don’t think I’ve ever done city of originality,” she said. “I’d $200,000 in the past two years, in- At the time, he told Crain’s the vestment firm than he’d be able to anything where there hasn’t been like to see those in a position of cluding $50,000 from LINC to sup- move was a way to have entry to with an unrelated third party.” a preponderance of opinion that power realize that more.” port the new center and other real estate deals all over the coun- And Farkas may be taking a I’d finally lost the last marble,” C3D has studied other art projects grants from The Community Founda- try. play from Kojaian’s playbook Farkas told The New York Times. such as Dance Place in Washington, tion for Southeast Michigan, the Fred Since then, he, his family and with an investment in Grubb & Some might give that same D.C., and the Museum of Contemporary A. and Barbara M. Erb Family Founda- his affiliated companies have ex- Ellis; having access to a broker- thought to loaning $14 million to Art Detroit in Detroit. Sheppard said tion and The Kresge Foundation. This panded that ownership to age firm to support his other busi- Grubb & Ellis. the place of arts and culture in re- year the Annenberg Foundation con- 22.9 million shares — including ness lines. But the company has value, just building a city should not be over- tributed $300,000 to support the preferred shares that can be- If Farkas controls two broker- not value from its publicly traded stated, but not underestimated ei- center and general operations. come common stock — making age firms as well as a loan servic- shares, said Brian Connors, man- ther. More information about the Hei- up a 30 percent ownership in the ing company, he can have a aging director at Birmingham- The MOCAD study estimated delberg study and others by C3D company. chance to buy troubled buildings based Conway Mackenzie Inc. that, based on its $1 million annual can be found at c-3-d.org. His local portfolio includes before other investors, or collect When a company finds itself in close to 50 buildings, according to fees by selling to other investors. the position of Grubb & Ellis, local real estate estimates. Koja- It’s a move similar to Boston- with large amounts of debt and a ian Management Co. does not di- based CW Capital Asset Manage- low share price, the key is to find vulge the size of its portfolio. ment, which earlier this year a new structure for the company, Kojaian has sold some of his bought Rockwood Real Estate Advi- he said. shares, other than 850,000 shares sors. “There’s value in the name in 2006 resulting in a $12.3 million New York-based investment Grubb & Ellis, and there’s value gain, according to Bloomberg firms Fortress Investment Group, in the people,” he said. “But the News Service and filings with the Cerberus Capital Management and balance sheet is so lopsided that it U.S. Securities and Exchange Com- Vornado Realty Trust have all made calls for some sort of restructur- mission, buying blocks of stock investments in loan servicing ing. Adding debt as a life preserv- several times a year. firms this year. er only lasts for so long.” His largest purchase, other Dobell said the future could than the initial buy, was 2 million hold several options; one of which shares in September 2008 at a Rebuilding an empire is Farkas and Colony taking the price close to $8 million. Farkas is far from a newcomer company private. He also has loaned the compa- to real estate. “Or, if the business now has ny money, though the level of He has a long history of build- enough capital to support its debt debt is not spelled out in SEC fil- ing companies and selling them payments, it might start to make ings. again — most notably the money and the stock might be It’s unclear whether the invest- $415 million sale of his Insignia Fi- worth something,” he said. ment has been profitable. nancial Group real estate broker- “Then Kojaian and all of the in- While he has purchased blocks age to CB Richard Ellis in 2003. vestors might just ride this out of stock each year, he also has re- Insignia was the fruit of his la- and hope the market picks up. ceived stock through options and bor for years, a company he built But there’s not much sense in Ko- awards over the years. starting in 1989 with $5 million jaian walking away now when the His initial 2.5 million shares from investors. By 1997, it was stock is below 50 cents.” grew to 22.9 million today, but at known as one of the largest own- Daniel Duggan: (313) 446-0414, last week’s share price of 41 cents, ers of multifamily real estate in [email protected]. Twitter: his shares are worth $9.3 million. the United States, according to a @d_duggan 20111024-NEWS--0033-NAT-CCI-CD_-- 10/21/2011 5:58 PM Page 1

October 24, 2011 CRAIN’S DETROIT BUSINESS Page 33 No-fault: Reformers believe the time has arrived www.crainsdetroit.com ■ From Page 1 EDITOR-IN-CHIEF Keith E. Crain PUBLISHER Mary Kramer, (313) 446-0399 or Legislation introduced by Lund, included PIP coverage of $1 million [email protected] R-Shelby Township, and Hune to $5 million and a medical fee EXECUTIVE EDITOR Cindy Goodaker, (313) 446- Bill would split claims association 0460 or [email protected] would among other things end schedule. Petitions filed for a refer- DEPUTY MANAGING EDITOR Jennette Smith, Michigan’s lifetime unlimited in- If House Bill 4936 becomes law, amount. endum suspended the law and put it (313) 446-1622 or [email protected] jury and rehabilitation benefits there would be changes to the With the new account for future on the November 1994 ballot as Pro- SENIOR EDITOR Bob Allen, (313) 446-0344 or [email protected] Michigan Catastrophic Claims Asso- claims, insurers would cover and allow Michigan drivers to posal C, which voters also rejected. WEST MICHIGAN EDITOR Matt Gryczan, (616) 916- choose different personal injury ciation. claims of up to $500,000 but would This time, if the Legislature 8158 or [email protected] protection, or PIP, coverage levels. The MCCA, an association of be reimbursed at 90 percent for passes the no-fault reforms, the COPY DESK CHIEF Gary Piatek, (313) 446-0357 or It would also implement a fee all insurance companies selling losses between $500,000 and $1 mil- law can’t be stalled by referendum. [email protected] ASSISTANT NEWS EDITOR Jeff Johnston, (313) schedule that would limit payment auto and motorcycle insurance, lion. Losses over $1 million would A $50,000 appropriation in the 446-1608 or [email protected] levels to health care providers. acts as a reinsurer for claims. The be 100 percent reimbursed by the legislation, to pay for information- DATA EDITOR Brianna Reilly, (313) 446-0418, The legislation also specifies association is funded by premi- MCCA, up to $5 million. All of the al pamphlets on the no-fault [email protected] WEB DEVELOPER Steve Williams, (313) 446- that motorcyclists who are injured ums charged to insurers and in payouts would be contingent on changes and a report to the Legis- 6059, [email protected] in a motor vehicle accident could turn, assessments that insurers the amount of coverage purchased. lature, makes the law referendum- WEB EDITOR Gary Anglebrandt, (313) 446-1621, receive only up to $250,000 in PIP place on auto policies. Those as- Under the bill, consumers proof because appropriation bills [email protected] are exempt from referendums. EDITORIAL SUPPORT Robertta Reiff (313) 446- coverage benefits for medical and sessments currently are $145 per could purchase coverage levels of 0419, YahNica Crawford, (313) 446-0329 rehabilitation expenses. vehicle per year. $500,000, $1 million or $5 million However, opponents could gather NEWSROOM (313) 446-0329, FAX (313) 446- The legislation would split the and will continue to pay a fee to signatures to place a separate ini- 1687 TIP LINE (313) 446-6766 MCCA into two accounts: Claims cover the deficit in the current tiative on the ballot. REPORTERS Posthumus and the biker bill related to accidents before July 1, fund. Lund and Hune also have made Daniel Duggan, senior reporter: Covers retail, real estate and hospitality. (313) 446-0414 or Some attribute the increase in 2012, which would continue to be The Insurance Institute of Michi- multiple efforts. [email protected] interest in no-fault reform to se- covered at unlimited levels, and a gan said the fee is expected to go During the 2009-2010 session, Jay Greene, senior reporter: Covers health care, insurance and the environment. (313) 446-0325 or nior adviser Dick Posthumus, who new account for future claims. down, but it could not provide an Lund introduced a fee schedule [email protected]. bill that “never saw the light of Chad Halcom: Covers law, non-automotive in his years in the Legislature was Currently, insurers pay up to estimated cost for the different manufacturing, defense contracting and Oakland supportive of no-fault changes. the first $500,000 in claims and are coverage levels or estimate what day” in the Democrat-controlled and Macomb counties. (313) 446-6796 or House. He also introduced legisla- [email protected]. Posthumus joined the Senate in reimbursed by the MCCA for 100 the amount to the existing fund Tom Henderson: Covers banking, finance, 1983 and served as majority leader percent of medical and rehabilita- might be. tion with varying PIP levels. technology and biotechnology. (313) 446-0337 or “I served on the insurance com- [email protected]. from 1991 until he left in 1998 to be- tion claims that exceed that — Amy Lane Nancy Kaffer: Covers small business, the city of come Gov. John Engler’s lieu- mittee last year and have been ac- Detroit, Wayne County government. (313) 446- tive in trying to learn about the in- 0412 or [email protected]. tenant governor. Snyder tapped The legislation ule would dramatically reduce Bill Shea, enterprise editor: Covers media, Posthumus in November to join payments for patient care and dustry and its problems. When I advertising and marketing, the business of sports, Lund and Hune jointly an- and transportation. (313) 446-1626 or the administration and head up jeopardize some hospitals’ abili- became chairman of the committee, [email protected]. nounced separate bills in Septem- this is definitely something I think Nathan Skid: Multimedia reporter. Also covers the the executive branch’s relations ties to have trauma units. food industry and entertainment. (313) 446-1654, with the Legislature. ber and discussed whether the leg- The Michigan Health & Hospital As- we needed to address,” Lund said. [email protected]. During Posthumus’ Senate islation should start in the Senate sociation, which is part of the Coali- Hune, when he was in the Sherri Welch: Covers nonprofits and services. or the House. Currently, it’s House, sponsored several pieces of (313) 446-1694 or [email protected] tenure, he chaired a committee tion Protecting Auto No-Fault, has Dustin Walsh: Covers auto suppliers, steel, higher no-fault legislation, including a education and Livingston and Washtenaw that reviewed the no-fault system Lund’s bill on the move, passing continually opposed adopting work- managed care option for PIP and counties. (313) 446-6042 or [email protected] and made recommendations that out of his House Insurance Com- ers’ comp fee schedules. varying PIP levels. LANSING BUREAU included health-care cost contain- mittee on Oct. 13. CPAN says the proposed Amy Lane: Covers business issues at the Capitol, Then and now, he and Democrat telecommunications and utilities. (517) 371-5355, ment and giving motorists a House Bill 4936 initially includ- changes would result in signifi- FAX (517) 371-2492, [email protected]. or 115 W. Virgil Smith of Detroit have Allegan, Suite 220, Lansing 48933. choice of coverage — changes that ed a low-end coverage level of cant unpaid medical expenses, paired up on the issue. For exam- ADVERTISING are part of the current legislation. $250,000 but currently contains shifting more cost to Medicaid and ple, a Hune-sponsored 2007 bill But Posthumus said his priority levels of $500,000, $1 million and Medicare and force victims to sue ADVERTISING DIRECTOR Marla Wise, (313) 446- with varying PIP levels was co- 6032 or [email protected] is “whatever the governor’s priori- $5 million. to recover unpaid costs. sponsored with then-House Insur- SALES INQUIRIES: (313) 446-6052; FAX (313) ty is” and that Snyder began look- The mandated levels would still Underfunding of medical treat- 393-0997 ance Committee Chairman Smith, be the highest in the nation. ment for those who are severely in- ADVERTISING SALES Christine Galasso, Matthew ing at the auto no-fault system and but never gained traction. J. Langan, Lori Tournay Liggett, Tamara Rokowski, Among the 12 states that have jured will lead to job loss in Michi- Cheryl Rothe, Dale Smolinski its sustainability when the helmet “Certainly the Granholm ad- law issue came up earlier this year no-fault insurance systems, the gan’s medical care industry, CLASSIFIED SALES (313)-446-0351 ministration was not supportive. I EVENTS DIRECTOR Nicole LaPointe in multiple pieces of legislation. next-highest required coverage CPAN says, and there will also be think the Democratic leadership MARKETING ARTIST Sylvia Kolaski One of those, Senate Bill 291, level is $50,000 in New York, fol- higher liability and health insur- in the House … (also) didn’t sup- SALES SUPPORT Suzanne Janik, YahNica Crawford passed by the Senate in June, would lowed by $40,000 in Minnesota; ance costs and inadequate medical AUDIENCE DEVELOPMENT MANAGER port,” Hune said. repeal Michigan’s mandatory hel- $30,000 in North Dakota; $15,000 in care for severely injured people Candice Yopp Asked if he feels he has an ally MARKETING COORDINATOR Jenny Griffith met law and allow riders age 21 and New Jersey; $10,000 in Florida, who didn’t buy enough coverage. or friend in the administration on PRODUCTION MANAGER Wendy Kobylarz older to ride without helmets if they Hawaii and Kentucky; $5,000 in CPAN legislative coordinator this issue, where he didn’t before, PRODUCTION SUPERVISOR Larry Williams buy $100,000 in insurance. Pennsylvania; $4,500 in Kansas; Kevin McKinney said the pro- CUSTOMER SERVICE That set off alarm bells in the ad- $3,000 in Utah and $2,000 in Massa- posed legislation “will create sig- Hune said: “without a doubt.” ministration. chusetts, according to data from nificant job loss, shift millions of Smith said he entered into the MAIN NUMBER: Call (877) 824-9374 or write dollars onto taxpayers and health issue several years ago looking at [email protected] “If there’s an increase in personal the Insurance Institute of Michigan. SUBSCRIPTIONS $59 one year, $98 two years. A study by Epic Consulting LLC insurers and quickly unravel one the need for affordable policies in Out of state, $79 one year, $138 for two years. injury as a result of not wearing hel- Outside U.S.A., add $48 per year to out-of-state mets, he doesn’t want to have the commissioned by the institute of the nation’s best post-acute care urban areas, and how that could be rate for surface mail. Call (313) 446-0450 or provider networks for those suffer- (877) 824-9374. no-fault system and auto insurers showed that 99.1 percent of all au- achieved. “That led to looking at ing catastrophic injuries — all SINGLE COPIES: (877) 824-9374. paying for it,” Posthumus said. tomobile accidents result in med- lowering personal injury protec- REPRINTS: (800) 290-5460, ext. 125; without any guarantees that pre- “And at the same time, he feels that ical bills of less than $250,000. tions, or giving people choices on (717) 505-9701, ext. 136; or rosie.hassell miums will decrease. @theygsgroup.com. there’s some concern that with un- The legislation also would set a their personal injury,” he said. TO FIND A DATE A STORY WAS PUBLISHED: “When you stop and do the limited personal injury protection.” fee schedule that would limit pay- When Smith was chairman of (313) 446-0367 or e-mail [email protected]. ments to hospitals, physicians and math, the reforms are just not in the Democrat-controlled House In- Snyder press secretary Sara Michigan’s best interest.” CRAIN’S DETROIT BUSINESS IS PUBLISHED BY Wurfel said that neither eliminat- other health care providers to no surance Committee, and Hune was CRAIN COMMUNICATIONS INC. more than what’s paid for treat- House minority floor leader vice chairman, Smith also spon- CHAIRMAN Keith E. Crain ing the requirement for motorcy- Kate Segal, D-Battle Creek, said PRESIDENT Rance Crain ment, service, accommodation and sored a fee schedule bill, but he SECRETARY Merrilee Crain cle helmets nor reforming no-fault there are many questions and con- medicine under Michigan’s work- never held a vote because of lack of TREASURER Mary Kay Crain are at the top of the administra- cerns about the impact of the legis- Executive Vice President/Operations ers’ compensation system. committee member support. William A. Morrow tion’s agenda, but that Snyder has lation, including the effect on Med- The fee schedule is a bone of con- Roles are now reversed, with Group Vice President/Technology, been “very clear and consistent” icaid after drivers who are injured Manufacturing, Circulation tention because medical reimburse- Hune chairing the insurance com- Robert C. Adams that “to look at any helmet law re- in a catastrophic auto accident use ments paid out under no-fault are Vice President/Production & Manufacturing peal, it must be in the context of up their benefits and spend their mittee and Smith vice chairman. Dave Kamis higher than under Medicare or Chief Information Officer broader auto insurance reform.” assets, and the extent to which Democratic sentiments don’t ap- workers’ compensation. Paul Dalpiaz The reason: Motorcyclists al- they would file lawsuits to recoup pear changed. Smith said that in Director of Audience Development Operations ready represent a disproportion- For example, a table distributed their costs after their minimum the Senate Democratic Caucus Michelle Roth Coalition for Auto Insurance G.D. Crain Jr. Founder (1885-1973) ate share of claims made to the by the coverage level has been exhausted. there’s no support for either Mrs. G.D. Crain Jr. Chairman (1911-1996) Michigan Catastrophic Claims Associ- Reform, a group of insurers and Hune’s SB 649, which he is co-spon- EDITORIAL & BUSINESS OFFICES: 1155 Gratiot Ave., Detroit MI 48207-2732; (313) ation, the entity that reimburses business organizations supporting soring, or the Lund bill. 446-6000 insurers for vehicle-related med- the legislation, shows reimburse- Previous attempts But Peter Kuhnmuench, execu- Cable address: TWX 248-221-5122 AUTNEW DET ment to providers for a spinal X- tive director of the Insurance Insti- CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 ical claims of more than $500,000. In 1992, AAA Michigan spearhead- is published weekly, except for a special issue the In 2008, that was 7.2 percent of ray is $227.55 in the Detroit area, ed what became Proposal D that tute of Michigan, likes the odds. third week of January, a special issue the fourth week of August, and no issue the third week of MCCA claims, even though motor- while Medicare would pay $55.89 included capping personal injury “We think we have a real good December by Crain Communications Inc. at 1155 cyclists are only covered if they and workers’ comp, $77.06. benefits at $250,000 per occurrence chance with this governor. He’s Gratiot Ave., Detroit MI 48207-2732. Periodicals postage paid at Detroit, MI and additional mailing are in an accident with a vehicle. An MRI of the neck would be re- unless an insured person pur- willing to look at our proposals offices. POSTMASTER: Send address changes to Motorcyclists also in 2008 only imbursed at $3,258.68 under no- chased additional coverage in in- and give serious consideration to CRAIN’S DETROIT BUSINESS, Circulation Department, P.O. Box 07925, Detroit, MI 48207- paid 2 percent of the money paid fault, but at $483.98 under crements of up to $5 million, and a supporting them.” 9732. GST # 136760444. Printed in U.S.A. into the fund by motorists, which Medicare and $769.63 under work- 20 percent rate reduction. Amy Lane: (517) 371-5355, Entire contents copyright 2011 by Crain Communications Inc. All rights reserved. currently is set at $145 per vehicle ers’ comp. Voters defeated that proposal, [email protected]. Twitter: Reproduction or use of editorial content in any per year. (See story, this page.) Hospitals say such a fee sched- and then came 1993 legislation that @alanecdb manner without permission is strictly prohibited. 20111024-NEWS--0034-NAT-CCI-CD_-- 10/21/2011 6:00 PM Page 1

Page 34 CRAIN’S DETROIT BUSINESS October 24, 2011 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF OCT. 15-21

ing, which is roughly half COURTS lot of the system’s ridership occupied. It opened in 1928. Bridge bill dies — unless new funding can It’s the building’s second Ⅲ Thousands of retirees be found. Volunteers time being owned by its of state auto suppliers Ⅲ Macomb County, the lender, and it’s been up for in state Senate could have health benefits city of Sterling Heights and sale many times. But there’s covered starting Jan. 1 by a Oakland University have a new attitude in Detroit, so new Auto Retiree VEBA Trust, teamed up to launch Veloci- enlist in DPS anything could happen. committee approved by U.S. Bankruptcy ty, an initiative and collabo- Court for the Southern Dis- ration center for business he Senate Economic trict of New York. incubation and economic New cinema opening Development Commit- Retirees who are eligible development, targeting de- in old Burton Theatre T tee defeated a mea- worked for Plymouth-based fense, homeland security biz corps sure to authorize the New Metaldyne Corp., Allis- and advanced manufactur- On Halloween weekend, International Trade Crossing Chalmers Manufacturing Co., ing. It is in the same build- n Thursday, 150 entertainment companies Cass City Cinema will open at bridge, and the bill’s spon- Amcast Industrial Corp., ing as the Sterling Heights Quicken Loans em- linked to pro football. the old Burton Internation- sor said there were no near- Collins & Aikman Corp., Del- Economic Development De- O ployees will spend News of the new fund al School, in the space for- term plans to introduce al- phi Corp. and Hayes-Lemmerz partment; the Macomb-OU IN- the day mentoring students broke last week in Sports merly occupied by the Bur- ternative legislation, the International Inc. and have Cubator, the business accel- at Chrysler Elementary School Business Daily. It would ton Theatre. Associated Press reported. their pensions covered by erator for OU; as well as in Detroit’s Lafayette Park. make the NFL the first “In the ’70s and ’80s, Cass the federal Pension Benefit several other developing Since the January cre- sports league to branch into City Cinema was the name Guaranty Corp. The plan businesses. ation of the Detroit Public this type of investing. of a movie theater showing ON THE MOVE must be approved by the Ⅲ Gov. Rick Snyder signed Schools Volunteer Business Team owners could vote movies in the basement of Ⅲ The Ilitch family has Office of Insurance and Finan- a bill ending retiree health the old Unitarian church,” Corps, funded by a $25,000 on the idea by December. tapped Eric Larson, a 25-year cial Regulation. care coverage for some cur- said Joel Landy of Cass Av- grant from the Skillman The money would come real estate figure and CEO Ⅲ Edward May, president rent and all future state enue Development, owner of Foundation, more than 200 from the owners, not from of Bloomfield Hills-based of Lake Orion-based E-M lawmakers. Current law al- metro Detroit corporations funds shared with players, the Burton building and Larson Realty Group LLC, to Management Co. LLC and lows ex-lawmakers who have agreed to help stu- the publication reported, now theater operator. “We be nonexecutive president perpetrator of what is served at least six years in dents in the city’s schools. but the players’ union could want to keep the name alive of Olympia Development. The thought to be the largest the Legislature to get “What I’ve seen is that the be asked to invest its own now that we’re in Midtown. group was previously led Ponzi scheme in Michigan health coverage once they business community has be- funding. We’re not in the Cass Corri- history, must pay $49.4 mil- by Mike and Marian’s son, turn 55, mostly at taxpayer come a lot more aware of the dor anymore.” lion in restitution even expense. Under the new Atanas, who resigned in fact that there is a need to be The theater will show a though he has contended law, the retiree benefit will Penobscot Building’s June. more involved in our broad range of movies, he owes much less, said be eliminated for lawmak- Ⅲ Van Buren Township- schools,” said Brook Franklin, red ball to shine again starting with a classic hor- Judge Arthur Tarnow of U.S. ers who have not served at coordinator of the program. ror lineup opening weekend based Visteon Corp. said that District Court in Detroit. In a move to show that least six years in the Legis- “They are key stakeholders featuring films like “A William Quigley III, the sup- lature before Jan. 1, 2013. in all of this and without the historic Penobscot plier’s CFO since 2007, will Ⅲ Building is in better condi- Bucket of Blood” and The Michigan Depart- their help it would be diffi- “Night of the Living Dead.” resign at the end of the OTHER NEWS ment of Technology, Manage- cult to change the outcome tion and even better owner- month. Replacing him as ship hands than it was a few Landy said that because Ⅲ Novi-based Trinity ment and Budget said the of these kids.” of the nationwide industry executive vice president Health said it will move its number of construction The program has been years ago, the building’s and CFO will be Martin management firm is host- move to digital projection, corporate office to Livonia and related jobs in the state bolstered by her office’s ex- Welch, a former CFO at ing a party to show off some he was able to acquire ana- by the end of 2012 to occupy is projected to grow 6.8 per- istence, providing business- Kmart Corp. and Federal- recent renovations. log equipment on the cheap. 340,000 square feet vacated cent between 2008 and 2018, es a direct avenue of how to Mogul Corp. To celebrate, they’re re- He’s prepping another in August 2010 by Quicken AP reported. get involved, Franklin said. screen in the lower-level Ⅲ Leader Dogs for the Blind Loans Inc. Other recent contribu- lighting the iconic red ball at top of the 47-story build- gym at the school, which he has named its chief finan- Ⅲ The Detroit People tions include a $10,000 dona- said should be open in cial and administrative of- Mover will cease operating OBITUARIES tion to Durfee Elementary- ing, which has been dim or unlit for the past four years. about three months. The ficer, Susan Daniels, as its in December — a month be- Ⅲ John McGuire, owner of Middle School from Sam’s cost of opening both new CEO, succeeding Pres- fore the North American Inter- Novi-based Guernsey Farms Club and $30,000 worth of It’s part of the long screens, he said, is about ident and CEO Greg national Auto Show at Cobo Dairy, died of natural causes school supplies for students change in ownership at the $200,000. Grabowski. Center, which generates a Oct. 7. He was 103. at Parker Elementary School building as the New York- from Detroit Marriot Renais- based Northern Group had to sance Center. cede title of the building earlier this year to a Hor- sham, Pa.-based lender, Cap- Lions, NFL plan launch of mark Financial Group. BEHIND THE NEWS Farmington Hills-based $32M angel investing fund Friedman Integrated Real Es- The Detroit Lions and the tate Solutions is managing National Football League’s the Art Deco-influenced Ficano suspends generous retirement system other 31 teams will each building in a transition contribute more than from being court-appointed Wayne County Executive Robert Fi- The county’s contribution to de- Employees enrolled in the currently $1 million to form a $32 mil- receiver recently. cano last week suspended a sweet- fined benefit plans in the past fiscal active defined benefit plan or the hy- lion venture capital aimed The company also is try- heart retirement system in which year was about $50 million, Schenk brid pension/defined benefit plan are at angel investing in start- ing to find a buyer for the some appointees who retired during said. Defined benefits generally cost eligible at age 55 with 25 years of ser- up media, technology and 1 million-square-foot build- an election year were eligible for up to the county about 39 percent of payroll; vice, age 60 with 20 years of service, 65 24 weeks of severance pay. Ficano also defined contributions cost about with eight years of service, or 30 years suspended a 5-1 employer match in 15 percent. Schenk said the defined regardless of age, according to pension one of the county’s six retirement pension plans also have been hurt be- board records. In cases of deferred re- plans. cause of “poor investment decisions” tirement, enrollees vest after eight The 5-1 match was a holdover from by the retirement board, such as a years but can’t collect until age 65. FROM THE BLOGS the former executive Ed McNamara’s $6 million loan to Big Buck Brewery, For some employees, a county pen- administration; the severance pay which later filed for bankruptcy, and a sion, coupled with the 24 weeks of sev- was a Ficano-instituted system. $20 million investment in an domestic erance and a retirement incentive that Business court bill is in the works But even with a generous match, the oil-exploration operation. allowed employees to leave with just county says that moving retirees from a The county’s three traditional pen- 20 years of service, has made for a lu- Michael Gadola, director defined benefit plan to a defined contri- sion systems are no longer offered to crative retirement. “of legal affairs for Gov. Rick bution plan saves money, said Matthew new county employees. Former county COO Bella Marshall’s Snyder, confirmed his office Schenk, Ficano’s chief of staff and the About 75 percent of appointees are pension is about $80,000 a year. Former is collaborating with administration’s new representative on enrolled in a defined contribution human resources Director Tim Taylor legislators to draft a bill the retirement board. plan, Schenk said, with the other collects about $106,000 a year, according establishing at least one The reason is that employer contri- 25 percent in either a hybrid defined- to retirement board records. Taylor be- business court judge within butions to defined benefit plans are benefit/contribution plan or one of the came a contract employee of the county each of the state's four tied to interest rates. In times of low legacy plans. Pensions under the de- after retirement, county officials said, Michigan Court of Appeals judicial districts. interest rates, investment income gen- fined benefit plans provide up to a earning about 90 percent of his pre-re- erated by pension funds is lower and maximum of 75 percent of average fi- tirement pay. Taylor’s county contract ” so the fund requires higher contribu- nal compensation, depending on was canceled in the wake of a severance Reporter Chad Halcom’s blog on the legal business can be found at www.crainsdetroit.com/halcom tions in order to stay actuarially length of service, according to the or- pay controversy. sound for future payouts. dinance. — Nancy Kaffer DBpageAD.qxp 10/21/2011 10:22 AM Page 1

JOIN CRAIN’S FOR A Really Cool EVENT Thursday, Nov. 10, 2011

Crain’s Detroit Business will recognize the 48 coolest companies to work for in Southeast Michigan

When Crain’s last held its Cool Places to Work awards program in 2009, the big issue was how to navigate the economic realities of the recession without punishing workers in the process. Now, things are less grim. Many employees who nominated their employers mentioned how these organizations worked hard to avoid major cuts in pay and benefits during the worst years. Join in the celebration at this fun event. You can read about this year’s award winners in the Sept. 5, 2011 issuee of Crain’s Detroit Business, or online at www.crainsdetroit.com 3:30 p.m. - 9 p.m. The Henry Ford, Dearborn Registration: $60 each Groups of 20 plus: $40 each* Register at On-site: $75 www.regonline.com/2011coolplaces *For discounted rates call 313.446.0300

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