DB-Half CoverWrap.qxp8/16/20135:05PMPage1 ©Entire contentscopyright2013byCrainCommunicationsInc.Allrightsreserved Crain’s od inthesector,”Norentold be managedbybothschools. medicine programthatwill a newjointadministrative Administration toestablish with theSchoolofBusiness gram andwillcoordinate master’s ofpublichealthpro- board ofgovernors. gell of absence,said faculty afteranunpaidleave sidered tobereturningthe tract aspresident,andiscon- tenure asapartofhiscon- ifa University currently theprovostat university from2008-10,is the fallsemester. Medicine asaprofessorin return totheWSUSchoolof sity Page 13 Detroit’s LargestEmployers, Page 14 ignite interestinsparkplug, Federal-Mogul looksto charters inmetroDetroit National Heritagetoadd tables $8Mrenovation Donations dip,Gleaners flipping withatwist Benjigates doeshouse NEWSPAPER to returninfacultyposition Ex-Wayne Statepresident www.crainsdetroit.com Vol.29,No.34 Inside Crain’s Crain’s This JustIn Page 3 Former “It’s quiteadynamicperi- He willbeteachinginthe Noren receivedacademic Noren, presidentofthe , chairmanoftheWSU President via email, Lists Wayne StateUniver- in AbuDhabi. — ChadHalcom Jay Noren Debbie Din- Khal- will F for $550million,asregulatorscontinuetoin- Edward Schulak,presidentof Canton Township-based International, whichitacquiredin2010from LLC major aluminumconsumerslike warehousing ishavingonbudgetplanningfor nor issuecomparedtotheeffectaluminum prices toinflateby$5billionsince2010. vices LLC aluminum heldat gan suits inthe manufacturers, someofwhichhavefiledcivil and aninvestigationbyfederalregulators. crosshairs ofseveralcivilantitrustlawsuits minum warehousingunitisnowinthe Goldman SachsGroupInc. to artificiallyraiseprices of warehousingmetal Feds investigateclaim Aluminum unco Goldman isreportedlylookingtosellMetro But expertssayaluminumpricingisami- Beverage giantsandsmalleraluminum and nDtotthismonth,saythestockpilesof in Detroit on manufacturinghavegrown.And market-traded aluminumanditseffect or thepastthreeyears,concernsover Coca-Cola Inc. and otherwarehouseshavecaused CRAIN’S DETROITBUSINESS U.S. DistrictCourtforEasternMichi- B Y D USTIN Metro InternationalTradeSer- ’s Romulus-basedalu- W W.F. WhelanCo. ALSH ES EquitiesInc., MillerCoors AUGUST 19–25,2013 F GROWING COMPANIES and ASTEST long periodstoraiseprofits. investigating whetherthemetalisbe warehouses throughoutMichigan.Fe Aluminum ingotssuchasthesearest minum intheU.S. change andabout81percent of aluminumtradedontheLond houses inmetroDetroit—orabo ric tonsofaluminuminitsrepo Currency cache fraud buste Health care vestigate itspractices. Critics claimMetroInternati Metro Internationalholds1.46 on U.S. AttorneyBarbaraMcQ to phonydiagnoses.Q&Aw charges rangingfromoverb 48 casesand287defendan have madetraction,gener investigating Medicarefrau Detroit taskforcescharge P a g e fastest-gro secr Learn SEPT. 11 To register, ple 4 See Alum T DBHalf Cover Wrap_CD Half cover wrap 8/6/2013 11:52 AM Page 1

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Insurance products made available through Fifth Third Insurance Agency, Inc. © Fifth Third Bank 2013. 20130819-NEWS--0001-NAT-CCI-CD_-- 8/16/20134:59PMPage1 ©Entire contentscopyright2013byCrainCommunicationsInc.Allrightsreserved sity currently theprovostat university from2008-10,is the fallsemester. Medicine asaprofessorin return totheWSUSchoolof Crain’s od inthesector,”Norentold be managedbybothschools. medicine programthatwill a newjointadministrative Administration toestablish with theSchoolofBusiness gram andwillcoordinate master’s ofpublichealthpro- board ofgovernors. gell of absence,said faculty afteranunpaidleave sidered tobereturningthe tract aspresident,andiscon- tenure asapartofhiscon- ifa University Page 13 Detroit’s LargestEmployers, Page 14 ignite interestinsparkplug, Federal-Mogul looksto charters inmetroDetroit National Heritagetoadd tables $8Mrenovation Donations dip,Gleaners flipping withatwist Benjigates doeshouse to returninfacultyposition Ex-Wayne Statepresident www.crainsdetroit.com Vol.29,No.34 NEWSPAPER Inside Crain’s Crain’s This JustIn Page 3 Former Noren, presidentofthe “It’s quiteadynamicperi- He willbeteachinginthe Noren receivedacademic , chairmanoftheWSU President via email, Lists Wayne StateUniver- in AbuDhabi. — ChadHalcom Jay Noren Debbie Din- Khal- will F for $550million,asregulatorscontinuetoin- Edward Schulak,presidentof LLC major aluminumconsumerslike warehousing ishavingonbudgetplanningfor nor issuecomparedtotheeffectaluminum prices toinflateby$5billionsince2010. vices LLC Canton Township-based International, whichitacquiredin2010from aluminum heldat gan suits inthe manufacturers, someofwhichhavefiledcivil and aninvestigationbyfederalregulators. crosshairs ofseveralcivilantitrustlawsuits minum warehousingunitisnowinthe Goldman SachsGroupInc. to artificiallyraiseprices of warehousingmetal Feds investigateclaim Aluminum uncoils But expertssayaluminumpricingisami- Goldman isreportedlylookingtosellMetro Beverage giantsandsmalleraluminum and nDtotthismonth,saythestockpilesof in Detroit on manufacturinghavegrown.And market-traded aluminumanditseffect or thepastthreeyears,concernsover Coca-Cola Inc. and otherwarehouseshavecaused CRAIN’S DETROITBUSINESS U.S. DistrictCourtforEasternMichi- B Y D USTIN Metro InternationalTradeSer- ’s Romulus-basedalu- W W.F. WhelanCo. ALSH ES EquitiesInc., MillerCoors AUGUST 19–25,2013 F GROWING COMPANIES and ASTEST long periodstoraiseprofits. investigating whetherthemetalisbeingstoredfor warehouses throughoutMichigan.Fedsare Aluminum ingotssuchasthesearestackedin minum intheU.S. change andabout81percentofLMEalu- of aluminumtradedontheLondonMetalEx- houses inmetroDetroit—orabout28percent ric tonsofaluminuminitsreported34ware- Currency cache fraud busters Health care vestigate itspractices. Critics claimMetroInternationalusesan Metro Internationalholds1.46millionmet- on U.S. AttorneyBarbaraMcQuade to phonydiagnoses.Q&Awith charges rangingfromoverbilling 48 casesand287defendantson have madetraction,generating investigating Medicarefraud Detroit taskforceschargedwith P a g e fastest-growing companies secretsfromtheregion’sLearn SEPT. 11

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See Aluminum,Page25 The Colony Club, Detroit•5–9p.m. BLOOMBERG NEWS discrimination suit Company, execsface court battle Lotus Bankinto Emails send Neal SearleispresidentofLotusBank. bank, east Asianbusinesscommunitytocreatea 2007 bymembersofthelocalIndianand of JudgeDeniseLangfordMorris. week intheOaklandCountyCircuitCourt torneys willbeinastrangepositionthis Indians. contain highlyderogatorycommentsabout the recipientofsomeemails,which lending officerJohnWesterheide,whowas bank’s CFO.Theyarebeingsued,asischief presidents, RichardBauer,whoisalsothe Neal Searle,andoneofitsexecutivevice in 2010and2011bythebank’spresident, discriminating againstIndians. Elliott-Larsen CivilRightsActof1976by gations thattheyhaveviolatedthefederal ment findthemselvesbeingsuedoveralle- bank andthreemembersofuppermanage- symbol ofpurityintheBuddhistreligion. comes fromtheflowerthatisapowerful members areIndian.Thebank’sname were ofIndiandescent.Mostitsboard Asian businessesandbusinessowners. mercial lendingneedsofIndianandeast Novi-based Strange becauseLotuswasfoundedin One, byBauer,saidthat“theonlygood The lawsuitisbasedonaseriesofemails And yet,thebankholdingcompany, Most ofthosewhoinvestedinthebank Lotus Bank CRAIN’S DETROITBUSINESS B Y T Lotus BancorpInc. OM , thatwouldservethecom- H ENDERSON TITLE SPONSOR $2 acopy;$59year See Lotus,Page27 TOM HENDERSON and itsat- ® 20130819-NEWS--0002-NAT-CCI-CD_-- 8/16/2013 5:17 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS August 19, 2013

MICHIGAN BRIEFS Acquisition of distributor will ing Co. ranked No. 4, and Kalama- zoo-based Bell’s Brewery ranked No. increase Spartan Stores’ reach Mercantile-Firstbank merger big for state banking 8 out of the 2,500-plus breweries in Spartan Stores Inc., the 10th- the U.S. The rankings were based largest grocery distributor in the The merger of Mercantile Bank Corp. and Firstbank officials were asked if the merged bank would seek on recommendations from some of U.S., will be much larger by the Corp. is set to create one of the largest banking insti- acquisitions in Southeast Michigan, MLive.com the nation’s craft beer experts. end of 2014 as the result of its ac- tutions headquartered in the state — but don’t ex- reported. A company that converts mini- quisition of Minneapolis-based pect the new unit to come calling in Southeast “The short answer is no,” said Firstbank Chair- vans into wheelchair-accessible ve- Nash Finch Co. Michigan. man Thomas Sullivan. hicles plans to add up to 70 jobs at Its new size should allow Grand Announced last week and expected to consum- Mercantile CEO Michael Price will be president its northern Indiana headquarters Rapids-based Spartan Stores to ap- mate by year’s end, the union of Grand Rapids-based and CEO of the new company, with Robert Kamins- by shifting production from its fac- ply more pressure on its vendors, Mercantile and Alma-based Firstbank would create ki and Charles Christmas from Mercantile and Sul- tory in Kalamazoo, the Grand MiBiz reported. But the vendors an entity with total assets of $2.8 billion, deposits of livan and Samuel Stone from Firstbank completing Rapids Business Journal reported. that survive could find themselves $2.3 billion and loans of $2 billion — the third-largest the executive team. Sullivan will serve as chairman Officials from The Braun Corp. say in new markets in 36 states and bank based in Michigan by market capitalization of the board for one year, and Price will be chairman the company will spend about $7.5 overseas, doing twice as much and deposit market share. thereafter. million to modify a production line business with Spartan. The combined company will use the Mercantile New York City-based Keefe, Bruyette and Woods at its Winamac, Ind., facility so If the $1.3 billion, all-stock merg- name and be headquartered in Grand Rapids, with Inc. was financial adviser to Mercantile, and New workers can install rear-entry er is approved by shareholders and 53 branches statewide. York City-based Sandler O’Neill & Partners LP was fi- wheelchair lifts on minivans. The clears the usual regulatory hurdles, During a conference call to announce the merger, nancial adviser to Firstbank in the transaction. new line is expected to be opera- the new company — under the tional by late next year. Spartan banner — will have annual fat. Wilhelm Kohl, originally from Find business news from sales of $7.5 billion. Spartan would West Michigan breweries were Austria, owns the 51-acre farm and around the state at crainsdetroit grow to 177 retail outlets, 22 distrib- MICH-CELLANEOUS ranked among the “Top 15 Craft was among the first to import the .com/crainsmichiganbusiness. ution centers and the logistics net- The newly named Mercy Health Breweries in the USA” by TheDai- pig to the U.S. lyMeal.com and featured at USA Sign up for Crain's Michigan work that comes along with that. It Physician Partners is a merger of the “A Mangalitsa pig is like the Today’s Travel section last week. Business e-newsletter at crains also will be the leading distributor Muskegon-based, 216-member Mer- Kobe beef of pork,” Kohl told detroit.com/emailsignup. to U.S. military commissaries and Grand Rapids-based Founders Brew- MLive.com. He runs the Pure Man- cy Health Partners Physician Network exchanges. galitsa breeding operation with and the Grand Rapids-based, 275- business partner Marc Santucci. member Advantage Health/Saint CORRECTIONS Lansing area farm among few in The pair recently welcomed Mary’s Medical Group, the Grand An article on Page 10 of the Aug. 12 issue should have said Shiloh In- breeders from throughout the U.S. Rapids Business Journal reported. dustries Inc.’s Clarksville plant is in Tennessee, not Ohio. U.S. raising ‘Kobe beef of pork’ for a daylong meeting capped off The new name reflects the reorga- An article on Page 3 of the Aug. 12 issue incorrectly spelled Focus Fi- A farm in Williamstown Town- with a snout-to-tail dinner of Man- nized health care system known as nancial Partners LLC CEO Rudy Adolf’s name. ship, near Lansing, is among only galitsa pork at Red Haven restaurant Mercy Health, which includes Saint The last name of Sister Xavier Ballance was misspelled on Pages 11 a few in the U.S. raising European- in Meridian Township. Mary’s hospital in Grand Rapids and and 16 in the Aug. 12 edition. imported Mangalitsa pigs, which The pig originally was developed the Mercy Health hospitals in The Certificate of Need Roundup on Page 17 of the Aug. 12 issue are gaining popularity among for the rulers of the Austro-Hungar- Muskegon, and which is owned by should have said a single-story, 50-bed nursing home facility for Oak- high-end diners for their lack of ian Empire some 200 years ago. Livonia-based Trinity Health. land Health Campus in Novi was approved rather than denied. 20130819-NEWS--0003-NAT-CCI-CD_-- 8/16/2013 5:09 PM Page 1

August 19, 2013 CRAIN’S DETROIT BUSINESS Page 3 National Heritage to add charters Inside

state’s 290-plus charter schools — point you may have saturated the As Michigan nears saturation, the No. 2 and 3 management com- market, and we’re looking at some panies, Leona Group LLC in Okemos more aggressive planning outside and CS Partners LLC in Brighton, that market,” he said. schools see future elsewhere operate 21 and 16 schools, respec- “And to be candid, Michigan has tively. also a declining population. We’re BY CHAD HALCOM charter school management orga- And that may be enough local seeing a greater competition for a CRAIN’S DETROIT BUSINESS nization will operate 76 primary expansion for now, according to smaller number of students, so you schools in nine states, with the Nick Paradiso, vice president of won’t see us opening a slew of new National Heritage Academies still openings of Oakside Scholars Char- partner services and government schools (here) soon.” calls Grand Rapids home, but the ter Academy in Waterford Town- relations at National Heritage. That’s also the sense that Doug education services provider will ship and Summerfield Charter Acade- Paradiso said the company is eye- Ross, founder and chairman of have twice the presence in metro my in suburban Greensboro, N.C., ing new markets in North Caroli- nonprofit charter academy New Ur- Economy revs up business Detroit than in any other metro- in a few weeks. na and Louisiana in 2014, but none ban Learning, has of Michigan’s politan area when it grows to 22 lo- That also makes National Her- at home. market demographics and future at classic car repair shops, cal charter schools this fall. itage far and away the Michigan “We love the state of Michigan; Founded in 1995, the for-profit market leader, operating 47 of the it’s where we are, but at a certain See Charter, Page 24 Page 17

Company index These companies have significant mention in this Donations dip, week’s Crain’s Detroit Business: Ann Arbor Spark ...... 15 Bedrock Real Estate Services ...... 3 Benjigates Estates ...... 3 so Gleaners Beringea ...... 22 Brooks Wilkins Sharkey & Turco ...... 27 Community Investment Support Fund ...... 3 Coyote Logistics ...... 15 Detroit Association of Realtors ...... 26 delays growth Detroit Public Safety Academy ...... 24 DTE Energy ...... 22 EMS Classic Car Care ...... 17 Federal-Mogul ...... 14 Plans for donated Four Pointe Investments ...... 27 FranNet of Michigan ...... 11 Gleaners Community Food Bank ...... 3 building tabled Goldfish Swim School ...... 11 Greektown Casino-Hotel ...... 22 BY SHERRI WELCH Hagerty Insurance ...... 17 Hertz Schram ...... 27 CRAIN’S DETROIT BUSINESS Howard & Howard Attorneys ...... 27 Gleaners Community Food Bank of Southeast- Inforum ...... 23 ern Michigan has tabled plans to increase its James and Grace Lee Boggs School ...... 24 distribution capacity through an $8 million Lexicon Lighting Technologies ...... 22 renovation of the former New York Carpet Lotus Bank ...... 1 World building in Southfield. Metro International Trade Services ...... 1 Cuts in government food donations have Michigan Association of Public School Academies . 24 LARRY PEPLIN Antoine Hayes (standing from left), Eugene Broadway and Keith Hudson operate Benjigates Estates in areas tempered the rapid growth in food donations Michigan Solid-State Lighting Association ...... 22 where foreclosed properties can be affordable to low-income buyers. Gleaners had seen in prior years. National Heritage Academies ...... 3 And increased donations of highly perish- NextEnergy ...... 22 able produce that must be turned quickly New Urban Learning ...... 3 means the food bank isn’t seeing the capaci- Nino Salvaggio International Marketplace ...... 22 ty constraints it projected just a year ago, Oakside Scholars Charter Academy ...... 3 said Gerry Brisson, senior vice president of Relume Technologies ...... 22 Flipping with a twist R.L. Polk ...... 6 advancement. “That gives us a bigger Rock Ventures ...... 7 window before we ... run Toggled ...... 22 Benjigates hooks up auctioned properties with buyers out of space in Detroit.” United Community Housing Coalition ...... 3 For now, Gleaners is Vistage Michigan ...... 11 holding onto the 92,000- Walbridge Aldinger ...... 7 BY GARY ANGLEBRANDT bought at Wayne County’s tax foreclosure auc- square-foot Southfield Wayne State University ...... 1 SPECIAL TO CRAIN’S DETROIT BUSINESS tions — an emotionally charged business that building donated to it in brings a special array of challenges. 2011 by the former owners Much has been made of Detroit’s entrepre- Auction buyers have a reputation as gougers. of New York Carpet neur-driven comeback, with its plucky startups There are buyers who squeeze occupants World, Irving Nusbaum daring enough to set up shop in greater down- through high up-front payments and rent in- and William Berlin. town. Brisson creases, and buyers who try to sell houses at Revenue from leasing Operating out in the wilderness of Detroit’s prices occupants can’t afford. its parking lot to Comau Inc. is helping to off- overlooked neighborhoods is the face of anoth- Department index David Szymanski, Wayne County chief set the annual costs of keeping the building, er kind of entrepreneur — or rather three faces, BANKRUPTCIES ...... 6 deputy treasurer, said there are buyers who Brisson said. which can be seen on billboards all over the rent out properties while not paying taxes, let “We’ve decided to hang onto the building BUSINESS DIARY ...... 19 city. The billboards advertise Benjigates Estates them go to auction and then buy them back un- (for now) and make a good decision about CALENDAR ...... 18 LLC and CEO Antoine Hayes, CFO Keith Hud- der a different entity. what to do with it,” he said. son and COO Eugene Broadway, clad in expen- CAPITOL BRIEFINGS...... 16 “A large number just go in and evict ... even If the Southfield building was given to sive-looking suits. CLASSIFIED ADS ...... 21 before they get their deed,” said Ted Phillips, Gleaners with little or no requirements, it Maybe they’ve been left out of the entrepre- KEITH CRAIN...... 8 executive director of United Community Housing could become a beneficial asset through a neur story because, billboards or not, they’re Coalition, a Detroit-based nonprofit that helps sale or leasing it out, said Eric Larson, co- MARY KRAMER ...... 9 hard to notice, operating as they do in those keep people in their homes. Phillips recounted managing partner for Bedrock Real Estate Ser- OPINION ...... 8 many neighborhoods often neglected in the De- intimidation and misinformation tactics, such vices LLC and founder of the Community Invest- OTHER VOICES ...... 8 troit narrative. Or maybe it’s because it’s hard as threats of police action and falsely telling oc- ment Support Fund, a nonprofit that helps to tell if these are the good guys or the bad guys. PEOPLE ...... 20 cupants they aren’t allowed to participate in other nonprofits tap public subsidies like The Benjamin Brothers, as they call them- RUMBLINGS ...... 28 selves, are in the business of flipping houses See Benjigates, Page 26 See Gleaners, Page 23 STAGE TWO STRATEGIES ...... 11 WEEK ON THE WEB ...... 28 Nonprofit news Holding a business event? THIS WEEK @ Read news of interest to nonprofit decision- Go to crainsdetroit.com and click the "Events" makers with Crain’s weekly Nonprofit News tab at the top of the page to enter your business WWW.CRAINSDETROIT.COM Report. Sign up at crainsdetroit.com/getmail. event into our online Local Events Calendar. 20130819-NEWS--0004-NAT-CCI-CD_-- 8/16/2013 5:18 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS August 19, 2013

Tired of missing your flight?

U.S. Attorney Barbara McQuade is working with the Detroit Medicare Fraud Strike Force and the Health Care Fraud Unit to fight fraud. Join the CLUB NATHAN SKID/CRAIN’S DETROIT BUSINESS 1 (248) 860- 6378 • [email protected] Keeping you on schedule Feds, local task force target Medicare fraud in Detroit Medicare fraud contin- we’re making some head- anomaly yet? ues to make headlines, way. There are probably several fac- running the gamut from OK, but the local invest- tors involved, like size and the lo- overbilling for services to ment is 10 attorneys plus a cal economy and improved en- a recent local case involv- Q&A few support staff, likely a forcement. One reason we’ve been ing charges of intention- cost of about $1.7 million an- told Detroit was a target market is Barbara McQuade, ally misdiagnosing pa- nually in Detroit. If Eric Hold- because we have a larger than av- U.S. attorney tients. er’s recovery estimate holds erage population of people living Farid Fata, owner of true here, doesn’t that mean on medical disability benefits be- Rochester Hills-based Michigan over $13 million recovered per year? cause of the nature of the work Hematology Oncology Centers PC and That’s very possible, but it’s ex- done here, and people living in founder of the nonprofit Swan for trapolating. There are reasons we poverty because of the economy Life Cancer Foundation, allegedly think we might have an even more who are easily preyed upon by re- submitted more than $150 million robust return in this area, but we cruiters looking for patient num- Need growth When businesses face the organic demands in billings to Medicare between Au- don’t have hard data yet. We do bers. We have also talked with capital? of growth, purchasing goods, or even to gust 2010 and last month and was know since the strike force got some social service organizations make payroll, Crestmark’s service and paid more than $62 million, accord- here, we’ve generated 48 cases and they’re aware of that phenom- innovative working capital solutions can be ing to a formal indictment by a with a combined 287 defendants, enon of recruiters targeting the the answer. grand jury for health care fraud accounting for billings of $563 mil- poor, and they’re helping us make last week. Providing accounts receivable fi nancing and lion. Of those, 38 have been doc- some headway and alerting us To fight fraud, the Detroit tors, which sometimes startles asset-based lending to small- and mid-sized when they see something. People Medicare Fraud Strike Force is col- people. And 138 have pleaded businesses nationwide for over 16 years. who provide services to the needy laborating with the Health Care guilty, 25 were convicted at trial don’t like to see them exploited. Fraud Unit at the office of U.S. At- and the average prison sentence Contact us today! We do appear to be making a dent torney Barbara McQuade in Detroit. has been about four years, but in certain markets. Matt Dekutoski Crain’s reporter Chad Halcom spoke we’ve seen sentences of as much as www.crestmark.com with McQuade on Friday about 14 years. 888.999.8050 Anntreal Hemmingway-Smith Outside psychotherapy, what are those programs. some other practices in health care The Fata case seems particularly that generate the most investiga- As a business proposition, how is onerous, for the reports of chemother- tions and arrests so far? And will the the local health care fraud prosecu- apy allegedly given to patients who expansion of Medicaid rolls or any tion team doing in the return on the in- didn’t need it or even need other treat- other changes under the Patient Pro- vestment? Presumably the effort pays ment. Is that common? How much tection and Affordable Care Act for itself, but what yield are you seeing fraud comes from legitimate doctors change that? above that in terms of judgments or overbilling on real visits and proce- Home health care is another are reduced billings? dures, versus straw patients and with a fair amount of fraudulent We have both a Medicare Fraud drummed-up invoices for treatment activity and really high billings. Strike Force that came here from that never took place? People who don’t need home (Washington, D.C.) in late 2009 and Most cases fall in the latter cate- health care are being talked into health care fraud unit founded (lo- gory, and as we prioritize our en- cally) in 2010. We know the task forcement we go after the most it, or allow recruiters to use them force is not here to stay, but they egregious offenders, to recoup the to bill for services not rendered. were so immediately fruitful that most of our expense. So that often Prescription drugs are also a tar- we needed to capitalize on that trac- means offenders providing no le- get area (of enforcement), because tion and have a program to contin- gitimate services. But sometimes, the prescription gives a potential ue the same efforts long term. Attor- as in this case, it is a legitimate for (Medicare) reimbursement ney General Eric Holder has said business billing for more than through a so-called patient and (in a February statement) we have what’s necessary. And that is also then the drug itself can have a recovered about $7.90 for every $1 a case where we have one attorney street value — particularly in pain spent on these investigations (in the from the strike force and one from medication. last three years). our own health care unit working But one of the more noncontro- We don’t have that broken out by together. versial provisions of the Afford- local areas, but we have seen some able Care Act is that new provi- changes in billing (to Medicare) Detroit was selected among nine sions that went in effect in 2011 here already. In psychotherapy ser- cities for a local strike force in part allow for enhanced screening and vices, we know that billings were because software at the Department enrollment requirements to weed about $3.8 million in the first half of of Health and Human Services detect- out people who can provide bill- 2011; by the end of the second half of ed outsized billing volume here, for a able services, as well as data-shar- 2012, that was down to $955,000. city its size. It still seems to be a ing across various agencies of gov- That’s an area of aggressive en- pack leader when new arrests and ernment. That could also help us forcement — and the 70 percent billing sums are announced from find and correct more of those change in billing says to me that those cities. Are you correcting that billing irregularities. DBpageAD_DBpageAD.qxd 7/9/2013 9:52 AM Page 1

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Page 6 CRAIN’S DETROIT BUSINESS August 19, 2013 IHS plans to expand Polk in U.S., international markets

BY DUSTIN WALSH million to $700 million of the more drove IHS’s interest, Key said, CRAIN’S DETROIT BUSINESS than $1.5 billion revenue for the IHS believes Carfax has exten- (Polk has) a great business firm, which employs 8,000 at 150 of- sive room for growth. The services of R.L. Polk & Co. are “ fices in 30 countries. Key said Carfax is capable of set to go global under its new own- model ... and we see the Polk generated $401 million in reaching $1 billion in revenue in ers, Englewood, Colo.-based busi- revenue in 2012, 60 percent of the U.S. market. ness data giant IHS Inc. opportunity to take it to a bigger which came from Polk’s fee-based “They are really just getting Scott Key, president and CEO of used-car history provider Carfax started,” Key said. “They are IHS (NYSE: IHS), said the firm international market. Inc. and 40 percent from Polk’s au- only in a percentage of dealers plans to take advantage of the ” tomotive industry analytics and with all the analytics they can Scott Key, IHS strong Polk name in the U.S. and recall services. provide, and we’re going to con- expand its presence not only here, Key said integration will take tinue to build that presence and but in emerging automotive mar- Crain’s. “It’s a great business mod- future.” several quarters, but employees penetration because we know the kets like India and China. el and it’s valuable to consumers, IHS closed on the $1.4 billion ac- from IHS’s automotive offices in market well.” “They (Polk) have been real OEMs and dealers alike, and we quisition of the 143-year-old Polk Northville are already transition- Two top executives, Polk Presi- steady in building their presence,” see the opportunity to take it to a on July 16. ing to Polk’s Southfield offices. dent Tim Rogers, who’d been in Key said in an interview with bigger international market in the IHS Automotive generates $600 While the entire Polk enterprise that role since 2010, and Michelle Goff, who has been CFO since joining the firm in 2001, left the firm following the acquisition. It’s unknown whether more top executives will follow or whether there will be consolida- tion of Polk offices in Long Beach, Calif.; Woodcliff Lake, N.J.; Centre- ville, Va.; HEALTHPLUS Canada, Eng- land, France, Germany, Spain, Italy, Australia, Chi- HAS YOU AND na and Japan. Stephen Polk, chair- man, president and CEO of Polk YOUR FAMILY Polk, will remain as the head of the unit under IHS. The acquisition is one of sever- al automotive buys for IHS in re- cent years. It acquired Global In- COVERED sight in 2008, CSM Worldwide in 2010 and Chemical Market Associ- ates Inc. in 2011. LMC Automotive is the only oth- er major competitor to IHS when it comes to providing industry forecasts for large suppliers and Graham Smith, HealthPlus Senior Director, automakers. Business Development and Federal Programs Key said more acquisitions are planned in markets of oil and chemical and wouldn’t rule out more in automotive either. “There are new companies and new ideas, new startups cropping The Affordable Care Act is changing healthcare for up all the time,” Key said. “These individuals and families. Learn more about healthcare people understand the business, reform from Crain’s Health Facts and we can connect it to some- At HealthPlus, we know how difficult it can be to navigate all the thing much bigger and make it free webinar series presented much bigger, so we’ll continue to health plans available to you and your family. We offer an expert by HealthPlus. acquire.” staff and affordable plans to help you make the best choice. Dustin Walsh: (313) 446-6042, [email protected]. Twitter: Register at @dustinpwalsh Graham Smith, Senior Director, Business Development and Automotive News contributed to Federal Programs: HealthPlus.org/healthfacts.aspx this report. “ HealthPlus is offering an exciting opportunity to those who want Upcoming webinar: comprehensive, affordable health coverage. If you enroll in a August 21—Employee Education: HealthPlus Signature Individual Plan before the start of 2014, Picking a Plan on the Exchange you’ll get to keep the benefits you have until December 2014. But enroll today, because if you wait until 2014, you’ll be paying BANKRUPTCIES a higher cost for the essential health benefits that are required The following businesses filed for by healthcare reform.” bankruptcy protection in U.S. Bank- ruptcy Court in Detroit Aug. 9-15. Under Chapter 11, a company files for For a quote go online to HealthPlus.org/signatureplans.aspx reorganization. Chapter 7 involves 1-877-562-0907 total liquidation. C&M Visiting Doctors PLC, 2990 W. Grand Blvd., Suite 408, Detroit, vol- untary Chapter 7. Assets: $201. Lia- bilities: $44,083.78. Relume Corp., 1795 N. Lapeer Road, Suite B, Oxford, voluntary Chapter 7. The Right Plan for a Healthier You™ Assets: $280,696.14. Liabilities: $5,480,502.76. (Not Relume Technolo- ©2013 HealthPlus of Michigan, Inc. gies Inc. See story, Page 22.) — Ross Benes 20130819-NEWS--0007-NAT-CCI-CD_-- 8/16/2013 5:24 PM Page 1

August 19, 2013 CRAIN’S DETROIT BUSINESS Page 7 Wayne County ends jail project pact, reviews redevelopment plans

BY DUSTIN WALSH sible for securing the site. of Justice would have to be con- The county issued $200 million ture between 2014 and 2040. AND KIRK PINHO The county will also continue to structed on the 44-acre site. in bonds to pay for the jail in De- The county has already spent CRAIN’S DETROIT BUSINESS negotiate with the state on a pro- “There are a lot of moving parts cember 2010 after the county com- about $120 million on the jail, Lee posal to move its justice depart- right now, but there is going to be mission approved the sale of up to said Thursday. There was more action in plans ment to the two-building, 56,544- an amount that would have to be $300 million in bonds for the pro- Gov. Rick Snyder issued a state- to redevelop the half-built Wayne square-foot Mound Correctional paid for the existing site” that ject. But the project quickly went ment saying that he is in favor of County jail site downtown last Facility in Detroit, which was would be put into rehabbing the over budget with a final price tag relocating the county’s jail opera- week, with the county building au- closed in January 2012. A lease has Mound facility, James Saros, a estimated at $391 million, prompt- tions and will work to fast-track thority officially terminating its been discussed. A new courthouse member of the building authority ing the county to halt construction the process. contract with the project contrac- to replace the Frank Murphy Hall board, said Thursday. on June 7. Those bonds will ma- Ross Benes contributed. tor and the county opting to re- view three of five redevelopment proposals submitted. The Wayne County Executive NATIONWIDE COMMERCIAL AUCTIONS Office told the County Commis- $1+ BILLION IN COMMERCIAL PROPERTIES & NOTES IN 31 STATES 60$//2)),&(Ř+20(2)),&( sion that it would take another 30 $30+ MILLION AVAILABLE to 60 days to “fully vet” three of ABSOLUTE AUCTION IN APPROVED TAX CREDITS Outstanding Selection For Small five proposals to redevelop the site DETAILS AT WWW.AUCTION.COM/DETROITFREEPRESS Professional Office or Home Office SEARCH CODE: B113-100 off Gratiot Avenue near I-375 Free Design Assistance downtown and four county justice 'HWURLW0,Ř0L[HG8VHŘ6) Starting Bid: $0 Customization - Sizes & Finishes sites adjacent to the jail. June Lee, chief of staff for Deposit: $25,000 Professional Installation Wayne County Executive Robert Contemporary or Traditional Ficano, told the board that negotia- Ryan Snoek tions with potential redevelopers Lic. No.: 6501366711 FEATURING continue. 248-830-5115 BID ONLINE SEP 9-11 [email protected] The redevelopment proposals FEATURED MICHIGAN COMMERCIAL REAL ESTATE under consideration are from Dan SEARCH CODE CITY ST TYPE SIZE STARTING BID BID ONLINE Gilbert’s Rock Ventures LLC, Toron- B113-101 Detroit MI Mixed-Use 209,410 SF $3,500,000 Sep 9-11 Broker co-op or fi nder’s fee available on select assets. Please visit www.auction.com/commercial for contact information. to-based Triple Properties Inc. and View all 150+ assets at www.auction.com/commercial Todd Fenton, a former Wayne County EDGE member who is BROKERS AND OWNERS, SELL YOUR COMMERCIAL OR RESIDENTIAL PROPERTY Brokers retain your commission. No auction listing fees. Call 888-774-3852 or visit www.auction.com/sell fronting a plan on behalf of an un- EXAMPLE: USE THE SEARCH CODE TO EASILY FIND A FEATURED ASSET. known investor. Simply enter the code in the Auction.com search bar B113-100 Rock’s plan is a $500 million de- velopment of 1.7 million square WWW.AUCTION.COM The nation’s leading online feet of space, with 700 residential real estate marketplace. and hotel units with 200,000 square Up to $30+ million in approved tax credits available, subject to special terms and conditions. Auction.com, LLC, 1 Mauchly, Irvine, CA 92618, (800) 499-6199. MI Auction.com RE Brkr 6505355610. The information being provided in connection with the auction is for informational purposes only. No representations or warranties are being made as to the accuracy or 6287+),(/'ō752< feet of retail and parking. completeness of any information provided. Documents and pictures may not represent the current condition of the property at the time of sale. All properties, notes and/or loan pools are 129,ō/$.(6,'( being sold “AS IS, WHERE IS, WITH ALL FAULTS AND LIMITATIONS” and all sales are “FINAL.” Prospective bidders are encouraged to conduct their own due diligence and investigate all matters *5$1'5$3,'6 In a previous interview, Rock relating to the properties, notes and/or loan pool that they are interested in purchasing. No prospective bidder may trespass on any property, disturb the occupants, or contact the borrowers, if www.gormans.com any. It is recommended that prospective bidders seek independent advice, including legal advice, to perform due diligence and to fully understand the auction process in general. Subject to SPBT0403 CEO Matt Cullen told Crain’s the auction terms and conditions as may be posted for the event. project could resemble L.A. Live, the $2.5 billion, 5.6 million-square- foot development in Los Angeles that includes the Nokia Theatre, Grammy Museum, ESPN broad- casting studios, two hotels, condo- miniums and several restaurants. L.A. Live is next to the Staples Center, a multi-purpose arena. Triple Properties’ $1 billion-plus development would include a 25,000-seat stadium for a Major Congratulations, League Soccer team, 275,000- square-foot retail complex with high-end retailers and food courts, Joy Fossel! 1 million square feet of residential space including two towers, and 1.3 million square feet of office space and parking. Named Diversity Business Steve Apostolopoulos, co- founder and managing director of Leader – Corp! Magazine Triple Properties, told Crain’s in a previous interview that his firm has been in discussions with MLS Salute to Diversity about starting a professional soc- cer team in Detroit since acquiring the Pontiac Silverdome in 2009, but the league had reservations about a team in Pontiac. Fenton’s proposal also involves creating an entertainment district with retail shops. Proposals from Miami-based private jail and detention center developers and operators CGL Cos. and Maumee, Ohio-based Rose Auc- tion Group LLC are no longer being considered. The shift in plans for the site ■ come after the county in June put Complex business, commercial a 60-day moratorium on construc- and health care litigation tion of the jail, which was $91 mil- ■ Product liability and contested lion over budget Then, last Thurs- probate matters day, the Wayne County Building CELEBRATING Authority voted to terminate the ■ Leads Varnum’s Diversity and 12 YEARS jail project contract with Detroit- Inclusion Team 5 based Walbridge Aldinger Co. The resolution calls for Wal- ■ In Your Corner. bridge and subcontractors to have ■ Metro Detroit ■ Grand Rapids ■ Kalamazoo ■ Grand Haven ■ Lansing their equipment off the site within 30 days. The county will be respon- 20130819-NEWS--0008-NAT-CCI-CD_-- 8/16/2013 5:11 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS August 19, 2013 OPINION OTHER VOICES Lawmakers must Hybrid government system make call on roads can thwart city bureaucracy From barnstorming across the les, the state has been able to lever- nable to agree on a plan to fund more and better re- country to pitch his economic age a few million dollars of public pairs to Michigan’s crumbling roads, it appears the agenda, President Barack Obama money into a quarter of a billion knows that middle-class voters dollars in private financing. This Legislature may be ready for a back-door solution. U have little appetite for bailing out is money that investors haven’t As Lansing correspondent Chris Gautz reports on Page 16, Detroit, the largest U.S. city to file otherwise been willing to lend, no one plan currently getting traction would work like this: for bankruptcy. matter how worthy the project. The portion of the state gas tax that now goes to schools The Motor City is the poster Michigan’s investments are also and local governments would be reallocated to roads. child for virtually every urban ill attracting the skilled workforce that sent middle-class Americans that mid-sized companies need to In order to restore the local funding, voters would need to scuttling to the suburbs in the fuel the city and the state’s recov- approve a 1-cent increase to the state’s 6-cent sales tax. middle of the 20th century: racial Richard Riordan Tim Rutten ery. Young, educated workers This brings to mind the now 40-year-old National Lampoon animosity, economic collapse, dys- have already begun drifting back cover: “If you don’t buy this magazine, we’ll kill this dog.” functional schools, an incompe- cause the communities would be into parts of Detroit’s urban core Crain’s has editorially supported more tax support for tent and corrupt local government, responsible for smaller areas of over the past few years. and the truculent hopelessness of land, they could more easily deal roads — preferably in the form of a fuel wholesale sales tax, the abandoned poor. The scale of with the issues that plague De- rather than the current tax-per-gallon model — but we also Detroit’s debacle is unique, but troit, such as redevelopment, secu- Building communities support transparency. you can find alarming similarities rity and road maintenance. Once the terms of Detroit’s new The Legislature needs to fulfill its responsibility to the peo- in urban areas from Rhode Island If these communities were prop- municipal system are established, ple it represents by either providing a direct legislative solu- to California. erly structured, Detroit would it wouldn’t take much reinvest- The president is right to argue have a recharged tax base, one no ment before decentralized commu- tion or by creating a ballot proposal for road funding. that creating jobs for skilled work- longer dependent on a single in- nities can use this funding to de- We prefer a legislative solution, but what’s mandatory is to ers with wages that put them com- dustry — automotive — and its velop hubs devoted to technology, not back voters into a corner because legislators aren’t willing fortably in the middle class is the subcontractors. A decentralized business-to-business services or to do their jobs. way forward for urban America. system could more effectively use the arts — cheap rents are the But like Detroit, too many cities whatever public funds are avail- foundation of bohemia. Most plau- lack the capital to create such posi- able to attract employers from dif- sible would be the advent of new tions. Helping cities raise money ferent industries. This diversity districts that draw on Detroit’s Think assets, not liabilities and attract a young, intelligent would generate new revenue that rich history of industrial design. workforce will require govern- would have to be shared by the ex- To begin to address Detroit’s In trying to improve, Michigan sometimes undersells the mental activism coupled with ex- isting city administration and the chronic unemployment, the cen- economic development assets that it has. For example, Coyote traordinary restraint. newly created communities, ac- tral city government could use cording to a negotiated formula — Logistics Inc., aided by a state incentive, plans to open an Ann In Detroit, one solution that can some of its revived tax revenue to be implemented immediately a process that would almost cer- fund retraining programs specifi- Arbor office employing about 125. Part of the lure: plenty of would be the creation of hybrid lo- tainly require state oversight and cally geared to the needs of what- available talent and the University of Michigan ties of some of cal-government structures — per- mediation. ever new companies take root in the company’s top execs. UM, in particular, probably cannot haps under joint-powers agree- This is where the government the surrounding communities. be leveraged too often. ments with the state or nearby would intervene. Like Detroit, the The most fruitful innovations counties — that can sidestep the entire state of Michigan suffers will occur in ways we can’t foresee. embedded and corrupt bureaucra- from fleeing capital — both finan- None of this will happen, though, if cy that bedevils the city. cial and human. The latter in- reinvestment comes with the usual What about jail site costs? cludes graduates of the state’s strings attached. Public financing A new plan highly rated universities who has a crucial role to play, but the We were bemused this week to see the spin Wayne County leave to seek opportunities else- government must also be willing to Executive Bob Ficano was putting on the twists and turns of Consider a city in which power where. One of the things Gov. Rick step out of the way. devolves to neighborhoods or bor- Snyder has done is to establish De- Once a model of industrialized the downtown jail project. oughs, relegating decision-making velop Michigan, a nonprofit orga- efficiency, Detroit is now a tragic In a press release, Ficano said that the jail was planned for to the community level. In such a nization that places relatively example of urban decline. The city downtown because he believed building the project elsewhere system, rather than operating as a small amounts of public money has nothing to lose by innovating, and moving the courts would cause law firms and others to centralized city, Detroit would into privately managed invest- and experience elsewhere suggests move elsewhere, increasing the downtown vacancy rate. function as a federation of commu- ment funds. there is a lot to be gained. If it suc- nities in which the greater munici- These small investments by the ceeds, Detroit could soon become But now, with downtown property values rising, Ficano pality is responsible for develop- state have convinced private in- the model of post-industrial recov- can turn his attention to reviving the east side by moving the ing neighborhood laboratories of vestors, pension funds and insur- ery. jail and courts to Mound Road. commercial innovation. ance companies to provide the rest Richard Riordan was mayor of But what about the cost overruns that plagued the half- These experimental neighbor- of the money for Develop Michi- Los Angeles from 1993 to 2001. Tim built downtown project? Not mentioned. For more on the new hoods would be free to tailor their gan’s projects. Using this system, Rutten is a columnist for the Los public services and land-use poli- which is run by veterans of the Ri- Angeles News Group. plans for the jail site, see Page 7. cies to meet specific needs. Be- ordan administration in Los Ange- From Bloomberg News KEITH CRAIN: Not everyone is ready for a democracy I’ll probably get into a lot of military picked another But people kept de- riots and chaos in what had been Maybe not everyone is ready to trouble, but I wonder if it’s some- from their ranks, An- manding democracy and one of the most stable countries in handle democracy. It’s a dilemma times premature to encourage war Sadat. He won the free elections; Mubarak the Middle East. around the world. democracy when no one knows Nobel Peace Prize but resigned in 2011 in the Once you’ve let the genie out of When you have a democracy that what will happen. was assassinated by Arab Spring, and free the bottle, it’s just about impossi- elects a leader who turns into a dic- A perfect example is Egypt and fundamentalists in 1981. elections were held. ble to put her back. tator, it’s a very tough call what to the quest for democracy over The military support- Unfortunately, the No one knows what will happen do next. Egypt was one of our decades. ed the transition to Hos- people’s choice didn’t except that Egypt’s economy is in biggest allies in the Middle East. In the last century, the British ni Mubarak. please people in and shambles, there is rioting on both They kept the peace for many years, took control of the monarchy. The With strong military outside the military. sides and the military is still in and today their political system is in last king to rule Egypt, Farouk, support, Egypt seemed to Soon, the military over- control. complete shambles with the world was a guy who had ruled quite bad- do well. Making peace threw another govern- If Egyptians are ready for democ- waiting for the next shoe to drop. ly and was overthrown by the with Israel, Egypt be- ment, one that was racy, the rest of the world — and the There is no easy solution, if Egyptian military in 1952, in a re- came one of the powers in the Mid- elected democratically but that al- Egyptian military — will have to there is a solution at all. volt planned by Gamal Abdel Nass- dle East; the economy improved most certainly was heading to an close a blind eye as a democratical- But you have to wonder if er, who later became president. Af- with the help of billions of dollars of Islamist dictatorship. ly elected government turns into a democracy is the solution for ter Nasser’s death in 1970, the American aid to the military. So now, we see unrest, violence, totalitarian government. everything and everywhere. 20130819-NEWS--0009-NAT-CCI-CD_-- 8/16/2013 12:40 PM Page 1

August 19, 2013 CRAIN’S DETROIT BUSINESS Page 9 MARY KRAMER: Like her or not, Gaddis is worth hearing

I plan to vote in Detroit’s Nov. 2 Of course, having discussion thread about Duggan’s past that would af- If you didn’t pay, you didn’t ap- mayoral election. nearly 50 percent of the sparked by Shea’s story fect the outcome of the November pear. A simple business model. As a resident of Southfield, Mil- primary voters backing puts it another way, de- election. Those truths are mostly Gaddis, who was included on a dred Gaddis can’t. But it would be Duggan, who is white, scribing Gaddis as a unspecified, but link back both to Crain’s Women to Watch list in interesting to gauge the influence is a bit problematic in “poverty pimp” who the days of the McNamara political 2008, could be so much more. of her WCHB AM 1200 morning that worldview. So in spins commentary that machine in Wayne County and As a reader on a Gaddis discus- talk show on the Nov. 5 contest. Mildred’s post-election persuades listeners to Duggan’s tenure at the Detroit sion thread wrote: She “doesn’t As Crain’s Bill Shea reported analysis, these Duggan vote for politicians who Medical Center, when the feds know if she wants to be Oprah or Aug. 5, Gaddis has a small audi- supporters include reinforce the “victim fined the hospital system, mostly Ms. Farrakhan so she ends up as ence whose influence is larger many African-Ameri- mentality.” for offering improper incentives neither.” than the estimated 13,000 listeners cans who hate their But it’s worth listen- for doctors to join the DMC. suggests. own race. She offers a ing to in order to hear If compliance was a challenge Mary Kramer is publisher of In the gospel according to Mil- voice — and a platform what conspiracy theo- for Duggan at the DMC, it hasn’t Crain's Detroit Business. Catch her dred, “there is a game being — for those who are ries are being spun in been a strong suit for Gaddis, ei- take on business news at 6:10 a.m. played” by the white establish- anti-bankruptcy, anti-emergency the city. ther. In Shea’s story, he recapped Mondays on the Paul W. Smith show ment that is backing mayoral can- manager, anti-Snyder and, above In the days since the election, the controversy over Gaddis charg- on WJR AM 760 and in her blog at didate Mike Duggan in order to all, anti-Duggan. Gaddis has alleged that the city’s ing political candidates to appear www.crainsdetroit.com/kramer. swoop in and make billions on re- One reader commenting on a newspapers are “sitting on truths” on a TV talk show she once hosted. E-mail her at [email protected]. developing the city. The election is a matter of black empowerment, and by her defini- tion, that’s not a vote for Duggan.

TALK ON THE WEB

Reader responses to stories and blogs that appeared on Crain’s website. Comments may be edited for length and clarity. Re: Deadline for pet coke removal So even Mayor Bing has caved in to this insanity. “Pet coke” is a le- gal, nonhazardous, byproduct of oil refining. It is no more dangerous Ready to grow sitting in a pile than is coal. All the angst about this material being stockpiled along the river in a port is damaging to Detroit’s growth po- your business? tential. We need industry, refining, steel-making, and power genera- tion. We need for the byproducts of refining to be maximized by putting them to their highest use. Even Let’s customize a plan to more, we need to encourage indus- try and commerce to focus on locat- ing in Detroit, where we have logis- tical advantages — on the river, near rail and roads. make it happen. If the operator of the storage site failed to comply with a regulation, then shame on them. However, fail- ing to comply with a regulation is no excuse for the heavy hand of govern- ment to drive a business out of town CITIZENS BANK FIRSTMERIT BANK. costing us tax revenue and jobs. IS NOW Stephen Landes

Re: Gaming control board OKs license renewal for Detroit’s three casinos We’re here to help. Casinos are bad for Detroit and for the people who gamble there. If At FirstMerit Bank, we make it our business to know your business. every patron who ever lost or spent his money at a casino used With over one hundred years of experience creating tailored solutions that money to patronize Detroit businesses, this would be a much to meet unique business needs, we can help you make the best choices better place. for your business. So, whenever you’re ready to chat, we’ll be here. Ron Pollard

Re: Detroit: A seller’s market? Increased values mean proper- ties that were undervalued and not worth fixing up will hopefully get a second look. We’ll still need gov- ernment loan supports and assis- TO LEARN MORE, CONTACT: tance to induce lenders. Really, David Lochner, President, Michigan, what we will need is for this infec- at 248-324-8555 or david.lochner@firstmerit.com. PERSONAL BUSINESS COMMERCIAL PRIVATEBANK tious development to catch on in areas that are marginally ready to develop or in adjoining neighbor- Member FDIC 1403_FM13 FirstMerit.com/MeetUs hoods ready to gentrify. Timothy Dinan DBpageAD_DBpageAD.qxd 6/11/2013 3:17 PM Page 1

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August 19, 2013 CRAIN’S DETROIT BUSINESS Page 11

growing small businesses

EDITOR’S NOTEBOOK

Amy Haimerl is entrepreneurship editor. She can be reached at (313) 446-0416 or at ahaimerl @crain.com

Amy Haimerl Talent is key to company growth Get ready for growth. That’s the message Robert Holland, CEO and chairman of Vistage Michigan, a St. Clair Shores peer-to- peer business coaching organization, is telling his CEO- and vice president- level clients. He sees “constant and consistent” growth coming across the U.S. and Michigan in the next five years, so he is coaching clients to build strategic five-year plans. “Focus on acquisitions, mergers, new product introduction and seizing capital that’s available,” Holland said. “Take a risk and make your move now.” The key is finding and hiring the right talent, which is a struggle all of his JOHN SOBCZAK clients face, regardless of size. Some, Chris (left) and Andrew McCuiston work together with Chris’ wife, Jenny, at expanding Goldfish Swim School LLC through franchising. Now that the he said, are committed to keeping their school is growing, the team is looking to scale up its marketing. employee count below 50 because of the Affordable Care Act. “That’s the opposite of what we want to have happen,” he added. “If I could tell you that you’d experience 21 percent growth if you have the right people, versus a 3 percent increase in In the swim of things costs, you would take the growth. But people don’t always think that way.” So how do you find the right people? Here’s Holland’s approach: Goldfish dives into franchising, looks to double locations Assess your staff. Find out who can be moved into more critical roles, but be wise. “When we promote BY AMY HAIMERL if it’s a life-saving skill.” That’s significantly higher than the typi- someone too quickly, they fail and we CRAIN’S DETROIT BUSINESS Jenny and Chris McCuiston opened the cal buy-in for a franchise. In fact, a $1 mil- fire them because we can no longer first location of Goldfish in Birmingham af- lion investment is on par with what it takes trust them,” Holland said. “But it was ids splashing around the pool at ter Jenny, who had been a competitive to open a McDonald’s, according to the Na- our fault from the beginning.” Goldfish Swim School LLC don’t know swimmer at the University of Arizona, couldn’t tional Federation of Independent Businesses. Focus on talent. “CEOs tend to find a pool for her kids. She was looking for “For my clients, the total investment is latch onto experience because you how good they have it. K The water is kept at a balmy 90 de- an environment that was focused on teach- right about $150,000 on a per-unit basis,” said can see it on a resume,” he said. “It’s ing children to swim, but found that most Mark Cory, franchise placement specialist not so easy to see talent. But grees, and the ambient air is 92. There’s no shock of cold as the children enter or exit were missing what she was looking for. for Grosse Pointe-based FranNet of Michigan. experience is the least important thing She developed a curriculum and vision that someone walks in the door with; the pool, no shivering, no blue toes, no need But, Cory added, he is seeing increased inter- for Goldfish — including that 90-degree wa- talent trumps experience.” to speed-walk to their towels. est in franchises at all levels of investment. Goldfish kids learn to swim in a tropical ter and Caribbean theme — and opened her “I think that people believe we’ve been Find the culture of the individual. doors. In the first year, Goldfish taught 500 Look for ethics, trustworthiness, beach house with bright colors, sea mam- through the worst of things and survived, kids to swim and had sales of $1.4 million. honesty, energy and commitment to mal murals and faux palm trees. so that’s giving them confidence and they getting a job done. Those qualities Parents and investors are responding. But the McCuistons hadn’t really planned want to be a part of the solution,” he said. trump talent and experience. Birmingham-based Goldfish started as a for what came next. So when they were ap- The number of franchise establishments proached about partnering on another loca- Determine the individual’s time single location in 2006, but it now is a grow- is expected to rise 1.3 percent this year, the span. A CEO has a five- to 10-year view ing franchise network. Goldfish doubled its tion, they decided instead to offer franchises. highest level since 2008, according to a re- into how to position a company for number of locations in 2012 — growing from “We really liked that we would be able to cent report by IHS Global Insight. success. That’s the CEO’s time span. three to seven — and is on target to more grow faster than we could on our own,” said “We continue to expect real GDP growth But a recent college graduate has just than double again by mid-2014, to 16 loca- Chris McCuiston, Goldfish CEO. “We could in 2013 that is slightly slower than 2012,” the a two-hour time span. “You expect tions with outposts in Illinois, Ohio and take individual owners who live in their re- report states. “But the primary sources of them to be successful over a one- to Pennsylvania. spective towns and train them on how to op- the expected slowdown in GDP growth in two-hour period,” Holland explained. This year, it will teach 15,000 children erate the business. Then you have someone 2013 will have a less direct impact on the “After one to two hours, a supervisor and from August 2012 to August 2013 will with skin in the game running a location franchise sector, (which) outperformed the should check on them, coach them have systemwide sales of $11.4 million. rather than a manager who might not have economy as a whole in 2012.” and mentor them, and then let them “Parents see the value in it, they see their the same commitment.” go for another two hours. When they The personal services sector, into which kids progressing,” said Andrew McCuiston, They have had potential franchisee inter- Goldfish falls, is expected to grow by 1.5 per- get mature, maybe they evolve to a vice president of franchise development. est despite the initial investment topping $1 day or two or three without oversight. cent this year, slightly better than the over- “What we’ve learned is that even during the million — including a $40,000 franchise fee Once someone gets beyond a week, all industry. For recreation services specifi- down times, parents are always willing to and the cost of building a custom pool — they could become a supervisor.” forgo other things for their kids, especially and a monthly fee of 9 percent of gross sales. See Goldfish, Page 12 20130819-NEWS--0012-NAT-CCI-CD_-- 8/16/2013 11:37 AM Page 1

Page 12 CRAIN’S DETROIT BUSINESS August 19, 2013 Second Stage Goldfish: Swim school dives into franchising; locations multiply ■ From Page 11 cally, IHS Global expects revenue swimming or after-school art pro- saw herself as a business owner restaurant loans. And some smaller feet by 10 feet,” said Andrew, 30. growth of 2.7 percent. grams,” Cory said. “People are go- but didn’t like the risk of starting banks couldn’t do SBA loans.” “We could finish each other’s sen- “There is a lot of interest in fran- ing to continue to have children, something completely new. So Ryan and her husband, who left tences. We worked on everything chises that cater to the needs of and they want the best for them.” when she heard about Goldfish his job trading crude oil, opened together, and that was a real issue families and young children, the Kathy Ryan had always thought she knew she’d found her niche. their place in January. They plan for us. We had different opinions areas of enrichment programs like she would open a franchise. She Her husband, Bob Ryan, was ini- to open a second a few miles away. on things. We couldn’t do it as we tially skeptical. “He thought it was So far, news of Goldfish has pri- grew. Now we just check in with a really wild idea to build a free- marily spread by word of mouth. each other as we grow and we have standing pool in the city,” she said. The company doesn’t invest in ad- advisers to help make sure we’re But once the couple reviewed vertising or marketing, focusing doing things well.” Goldfish’s financial performance instead on sponsoring community “We’re aware of what each other Business disclosures and researched the events and other grassroots meth- are doing, but we have to let each THINK market, they were convinced. ods. It requires franchises to com- other do their jobs,” added Chris, Think Madonna University In its franchise disclosure docu- mit $15,000 toward their grand 33. ment, Goldfish showed that its opening parties. Now they are gearing up for the Birmingham business posted $1.2 But, Andrew McCuiston said, next phase. They want to open 100 ▪ Pursue a certificate, bachelor’s or master’s in million in owner discretionary in- Goldfish is planning to evolve its locations by 2030, focusing primar- relevant business majors. come on $2.5 million in revenue marketing now that it is scaling. ily along the East Coast. last year. That figure doesn’t ac- “We’re talking about doing com- “Our focus is to make sure that ▪ Gain a wealth of experience in small classes count for rent, local property taxes mercial spots,” he said. “The other we grow appropriately,” Chris taught by professors from the business sector. or depreciation. big thing that we’re talking about said. “We’ve heard the horror sto- That pushed the Ryans to not are click ads on the Web. We’ve ry of franchises. So we want quali- ▪ Join Madonna business alumni who are just buy one location in Chicago done some testing and found that ty growth.” entrepreneurs, accountants, project managers but to buy rights to the territory. will hugely benefit our locations. The key to that quality, they “Even though it’s expensive, Social media is also a big platform.” said, is finding the right partners and business leaders. when we looked at the numbers it The McCuiston family has also and advisers. still worked,” said Ryan, 37. “Get- had to adapt its leadership and “Before we get too far into the ting the financing can be challeng- management style to accommo- process with any potential fran- FOR A CAREER IN BUSINESS... ing, though. We got ours through date the growth. When they were chisee, we bring them up to dinner Think Madonna’s School of Business! Chase (Bank), and it was about launching franchising, Andrew with Chris and Jenny and me and meeting a banker who had the same and Chris worked on everything. my wife,” Andrew said. “We make vision that we did. We went to a lot But today, they’ve delegated duties sure that we get along as people be- APPLY ONLINE FREE! of different banks and got turned and created separate spheres of in- cause that’s such an important madonna.edu ▪ 734-432-5361 ▪ [email protected] down for a lot of different reasons, fluence. It’s best for both business part of a business.” even though we have good credit. — and family — relations. Amy Haimerl: (313) 446-0416, Your success is our aim, at the M with the flame! Some weren’t doing franchise “In the beginning, it was Chris [email protected]. Twitter: loans; others were only doing and I in the same office that was 10 @haimerlad

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Equal Opportunity Employer 20130819-NEWS--0013-NAT-CCI-CD_-- 8/16/2013 9:47 AM Page 1

August 19, 2013 CRAIN’S DETROIT BUSINESS Page 13

CRAIN'S LIST: DETROIT'S LARGEST EMPLOYERS Ranked by full-time employees July 2013

Full-time employees in Full-time Company the city of employees in the Michigan Worldwide Address Detroit city of Detroit employees employees Rank Phone; website Top local executive(s) July 2013 July 2012 July 2013 July 2013 Type of business Detroit Medical Center Joseph Mullany 11,497 12,398 13,458 13,458 Health care system for adult and pediatric care 1. 3990 John R, Detroit 48201 CEO (313) 578-2442; www.dmc.org City of Detroit Dave Bing 9,591 10,920 9,591 9,591 City government 2. 2 Woodward Ave., Coleman A. Young Municipal Center, mayor Detroit 48226 (313) 224-3700; www.ci.detroit.mi.us Quicken Loans Inc. Dan Gilbert 9,192 5,984 9,423 11,281 Mortgage banking 3. 1050 Woodward Ave., Detroit 48226 chairman and founder (800) 251-9080; www.quickenloans.com Henry Ford Health System Nancy Schlichting 8,807 9,014 17,862 17,989 Health care system 4. 1 Ford Place, Detroit 48202 CEO (800) 436-7936; www.henryford.com Detroit Public Schools Jack Martin 6,586 7,839 6,586 6,586 Public school system 5. 3011 W. Grand Blvd., Fisher Building, Detroit 48202 emergency manager (313) 873-3111; www.detroitk12.org U.S. government NA 6,308 B 6,454 27,789 B 1,845,282 B Federal government 6. 477 Michigan Ave., Detroit 48226 (313) 226-4910; www.usa.gov Wayne State University M. Roy Wilson 6,023 5,924 6,023 6,023 Public university 7. 42 W. Warren, Detroit 48202 president (313) 577-2424; www.wayne.edu Chrysler Group LLC Sergio Marchionne 5,426 4,042 30,440 69,096 Automobile manufacturer 8. 1000 Chrysler Drive, Auburn Hills 48326-2766 chairman and CEO (248) 576-5741; www.chryslergroupllc.com Blue Cross Blue Shield of Michigan/ Daniel Loepp 5,415 5,172 7,437 7,437 Health care insurer 9. Blue Care Network president and CEO 600 E. Lafayette Blvd., Detroit 48226 (313) 225-9000; www.bcbsm.com General Motors Co. Daniel Akerson 4,327 3,947 41,379 213,000 Automobile manufacturer 10. 300 Renaissance Center, Detroit 48265 chairman and CEO (313) 556-5000; www.gm.com State of Michigan Richard Snyder 3,911 4,555 C 45,144 NA State government 11. 3042 W. Grand Blvd., Cadillac Place, Suite 4-400, Detroit governor 48202 (313) 456-4400; www.michigan.gov DTE Energy Co. Gerard Anderson 3,700 3,630 9,183 9,854 Energy and energy-technology company 12. 1 Energy Plaza, Detroit 48226 chairman, president and CEO (800) 477-4747; www.dteenergy.com St. John Providence Health System Jean Meyer 3,566 3,863 12,560 12,560 Provides comprehensive prevention, primary care and advanced 13. 28000 Dequindre Road, Warren 48092 interim president and CEO treatment programs with more than 125 medical centers and five (866) 501-3627; www.stjohnprovidence.org hospitals spanning five counties U.S. Postal Service Lee Thompson 2,643 3,272 NA NA Postal service 14. 1401 W. Fort St., Detroit 48233-9651 district manager, customer service and (313) 226-8678; www.usps.gov sales Wayne County Government Robert Ficano 2,566 2,610 3,274 3,274 County government 15. 500 Griswold Ave., Detroit 48226 county executive (313) 224-0286; www.waynecounty.com MGM Grand Detroit LLC Steve Zanella 2,551 2,598 2,551 2,551 Casino, hotel, resort-style spa, meetings and events, dining, 16. 1777 Third St., Detroit 48226 president and COO nightlife (877) 888-2121; www.mgmgranddetroit.com MotorCity Casino Hotel Marian Ilitch 1,973 2,124 1,973 NA Casino, hotel, dining, spa and theater 17. 2901 Grand River Ave., Detroit 48201 owner (866) 752-9622; www.motorcitycasino.com Compuware Corp. Robert Paul 1,912 1,918 1,949 4,376 Software developer and provider of professional services 18. 1 Campus Martius, Detroit 48226 president and CEO (313) 227-7300; www.compuware.com Detroit Diesel Corp. Jeff Allen 1,685 NA 2,214 2,294 Manufacturer of heavy-duty diesel engines, axles, transmissions, 19. 13400 W. Outer Drive, Detroit 48239 head of operations, Redford truck components, parts and various other supplies (313) 592-5824; www.demanddetroit.com powertrain Greektown Casino-Hotel Michael Puggi 1,521 1,533 1,825 1,825 Casino 20. 555 E. Lafayette Blvd., Detroit 48226 president and CEO (313) 223-2999; www.greektowncasino.com Clifford Vallier general manager Comerica Bank Michael Ritchie 1,194 1,256 5,232 8,904 Financial services provider 21. 411 W. Lafayette, Detroit 48226 Michigan market president (248) 371-5000; www.comerica.com Deloitte LLP and its subsidiaries Mark Davidoff 942 915 1,064 NA Accounting and consulting professional services firm 22. 200 Renaissance Center, Suite 3900, Detroit 48243-1895 Michigan managing partner (313) 396-3000; www.deloitte.com Johnson Controls - Automotive Experience Beda Bolzenius 760 554 10,000 168,000 Automotive supplier, building control systems and facilities 49200 Halyard Drive, Plymouth 48170 vice president and president, automotive management (734) 254-5000; www.johnsoncontrols.com seating 23. William Jackson vice president, operations and innovation and president, automotive electronics and interiors PricewaterhouseCoopers LLP Ray Telang 756 724 784 NA Assurance, tax and advisory services 24. 500 Woodward Ave., Detroit 48226 greater Michigan market managing (313) 394-6000; www.pwc.com partner Ally Financial Inc. William Muir 715 754 D 1,263 10,776 Financial services provider 25. 200 Renaissance Center, Detroit 48265 president NA; www.ally.com

This list of Detroit employers encompasses the cities of Detroit, Hamtramck and Highland Park. Employers with headquarters in Washtenaw, Oakland, Wayne, Macomb or Livingston counties are listed with their headquarter's address and top executive. Companies with headquarters elsewhere are listed with the address and top executive of their main Detroit-area office. Number of full-time employees may include full-time equivalents. It is not a complete listing but the most comprehensive available. Crain's estimates are based on industry analyses and benchmarks, news reports and a wide range of other sources. Unless otherwise noted, information was provided by the companies. Actual revenue figures may vary. NA = not available. B As of March 31, 2013. C As of Jan. 1, 2012. D Includes employees of former international businesses. LIST RESEARCHED BY BRIANNA REILLY 20130819-NEWS--0014-NAT-CCI-CD_-- 8/16/2013 9:48 AM Page 1

Page 14 CRAIN’S DETROIT BUSINESS August 19, 2013 Federal-Mogul hopes to ignite interest in new spark plug; claims fuel savings

BY RICHARD TRUETT penny out of the traditional ignition CRAIN NEWS SERVICE system for the last 75 years,” the en- All these gineer said. “We have a lot of expe- Researchers at Federal-Mogul Corp. “ rience with it. We know where it is are developing a new type of spark materials are weak, and we know where it is plug that sends a web of plasma strong. Departing from a reliable, bolts into cylinders to ignite fuel. proven. We know affordable known base for some- Plasma, a collection of charged thing that is significantly different particles, is generated by electricity they work. We know brings with it some risks.” exciting air near the tip of the plug. And, unlike a regular spark plug, The Southfield-based company they are durable. the Advanced Corona Ignition Sys- says at least 10 automakers are eval- tem requires its own dedicated com- uating the high-voltage device, And we can puter and electronics, adding fur- called the Advanced Corona Igni- ther cost and complexity. tion System. Engineers believe the manufacture Mixell contends that the system ignition system will enable changes them. would not require major engine re- to engines that can improve fuel design and that the components economy, lower emissions and ” used in the device such as the steel Kris Mixell, Federal-Mogul boost engine performance. case and ceramic insulators, are Federal-Mogul, one of several proven. companies working on new-gener- gines — but only if the intake and “We don’t want engine design- ation spark plugs, says the igni- other systems are modified. ers redesigning their engine tion system could be installed in And then there’s the cost issue. around an ignition system,” he some engines by 2017. Regular spark plugs are a com- said. “All these materials are But an ignition system engineer modity item with dozens of suppli- proven. We know they work. We for a Detroit automaker who has ers, such as Denso, Bosch and NGK, know they are durable. And we studied the Federal-Mogul system cranking them out by the millions. can manufacture them.” said many technical and cost is- “We’ve been squeezing every From Automotive News sues must be overcome before it can be adopted. He declined to be identified. Spark plugs in today’s cars look and work the same way they did 100 years ago. They have a center and ground electrode in a steel case with a ceramic insulator. The spark jumps between the two electrodes to ignite the air and fuel mixture in each cylinder. The length and strength of the spark do not vary. The spark from a traditional plug is usually around 0.042 of an inch, or about the width of a busi- ness card. During a recent demon- Let Schoolcraft College stration of the system at Federal- Mogul’s tech center in Plymouth, Host Your Next Event an Advanced Corona Ignition Sys- tem plug in a lab emitted plasma 734-462-4610 bolts from the tip. Kris Mixell, director of ACIS for http://vistatech.schoolcraft.edu Federal-Mogul, described the prob- lem with modern engines this way: “As you add more exhaust gas or reduce the amount of fuel, the mix- ture becomes very, very difficult to ignite. But you only have the same amount of time for that to happen. The multiple arcs from the ACIS plug overcome that.” Also, as engine sizes continue to shrink, the diameter of the thread- ed part of spark plugs is getting smaller, going from 14 millimeters wide to 12 millimeters. The smaller diameter size puts extra stress on the ceramic center of the plug, where heat builds up, said Rich Plan your next board meeting at the Keller, Federal-Mogul’s director of VisTaTech Center and experience: ignition products engineering. By changing the shape of the • 26 executive work stations new plug’s tip and tuning the elec- tronics, engineers can vary the • Individual monitors, computers timing, duration and length of the plasma arcs. That variability, and microphones along with changes in the engine’s • intake and combustion compo- Ergonomically nents, could boost fuel economy up adjustable chairs to 10 percent in some engines, ac- cording to Federal-Mogul. • Audio and video The new plug is not affected by heat or size, Mixell said. It also fits conferencing in the same space as a traditional capabilities spark plug, he added. The ignition engineer for the au- tomaker, which is testing the new- Schoolcraft College generation plug, said the device 18600 Haggerty Road has the potential to deliver major Livonia, MI 48152-2696 fuel economy gains in some en- 20130819-NEWS--0015-NAT-CCI-CD_-- 8/16/2013 9:49 AM Page 1

August 19, 2013 CRAIN’S DETROIT BUSINESS Page 15 SBA PREFERRED LENDER | CREDIT CARDS | CASH MANAGEMENT | COMMERCIAL LOANS Talent pool, UM tie prompt Chicago logistics firm to open Ann Arbor office $35,000 in

BY CHRIS GAUTZ portation business between ship- as is the company’s CEO and co- CAPITOL CORRESPONDENT pers and carriers, said Jodi Navta, founder Jeff Silver, who received fraudulent checks vice president of marketing and his undergraduate degree and Chicago-based logistics firm communications. MBA from the university. Coyote Logistics LLC said last week Coyote does not own trucks, “Ann Arbor is an amazing prevented in one day it decided to open a new office in and all of the jobs in Ann Arbor town,” Navta said. Ann Arbor, in part because of the will be office jobs, split between Part of the draw is the talent plethora of talented workers in the those doing logistics work and pool in Ann Arbor and the sur- ...by one customer. area and the company’s connec- those building relationships on rounding area, she said. tion to the University of Michigan. the shipping and carrier side of “Coyote Logistics is the latest The state will also be giving the the business. example of a company attracted to Your hometown firm a $1 million incentive to come Navta said the company works the Ann Arbor region because of if it lives up to its promise of to connect businesses, whether the talent that’s here, and another bringing 125 jobs in the next three they are a local grocer or a For- CEO choosing to expand into the advantage. years. tune 500 company that needs its city they fell in love with while in On Wednesday, the Michigan products shipped, with its net- college,” Paul Krutko, Ann Arbor Economic Development Corp. an- work of independent truck drivers Spark’s president and CEO, said in nounced Coyote Logistics had a and trucking companies that may a statement. Michigan Business Development be able to haul the product. The city of Ann Arbor and Ann Program incentive approved by In a statement, Gov. Rick Sny- Arbor Spark, an economic devel- the Michigan Strategic Fund. To re- der praised the announcement, opment organization, also will Being local means we’re able to help keep a closer eye on your small ceive the incentive, the company saying Coyote is a national leader give the firm an unspecified business. It means providing banking tools like Positive Pay, which uses will create 35 to 45 new jobs each in this field, and will mean more amount of financial support to a secure verifi cation process to protect your accounts against ACH year, for a total of 125 jobs over the jobs will be coming to Michigan complete the project. and check fraud. Trust us, that’s a big advantage for small business. next three years, according to an that could have gone elsewhere. The company plans to invest MEDC memo on the project. According to a statement, the $1.2 million of its own money into Try it on us – we'll waive Positive Pay fees for three months. The company will begin renova- company was also looking at sites the project. Contact Kerri Werschky at 586-863-9485 to learn more. tions on 9,000 square feet of office in Texas, California and Colorado. Coyote Logistics was named a www.thefsb.com/cashmanagement | 866-372-1275 space, at 777 E. Eisenhower Park- Navta said it will hire new em- 2013 Fast Fifty company by way this summer and has plans to ployees and some workers will be Crain’s Chicago Business, a sister begin hiring this fall. transferring from other offices be- publication to Crain’s Detroit The company, which employs cause they have family in the Ann Business. about 1,300 in offices across the Arbor area and wish to be closer Chris Gautz: (517) 403-4403, country, serves as the “middle to home. [email protected]. Twitter: man” in the logistics and trans- Navta herself is a UM graduate, @chrisgautz

______LEGAL NOTICE ______LEGAL NOTICE ______LEGAL NOTICE ______

IN THE UNITED STATES BANKRUPTCY COURT dures) shall be August 27, 2013, at 4:00 p.m. (Eastern courtesy copy to Chambers, and shall be served on: (i) the Time) (the “Bid Deadline”). In order to participate in the Debtor, Metavation, LLC, 2250 Thunderstick Drive, Suite FOR THE DISTRICT OF DELAWARE due diligence and bidding process and to otherwise be 1203, Lexington, Kentucky 40505, Attn: Office of the considered for any purpose thereunder, a person interested in General Counsel; (ii) Huron Consulting Group, 2000 In re: ) Chapter 11 all or portions of the assets (a “Potential Bidder”) must Auburn Dr., Suite 200, Beachwood, Ohio 44122, Attn: ) deliver to the Debtor, with copies to the Pension Benefit Geoffrey Frankel, [email protected]; (iii) METAVATION, LLC, ) Case No. 13-11831 (BLS) )Guaranty Corporation and the Revstone Committee (at their Debtor’s counsel, Pachulski Stang Ziehl & Jones LLP, 919 Debtor. ) respective addresses set forth in the Bidding Procedures) North Market Street, 17th Floor, Wilmington, Delaware (unless a particular document has been previously delivered 19899-8705, facsimile: 302-652-4400, Attn: Laura Davis NOTICE OF AUCTION AND SALE HEARING RELATED TO SALE or the Debtor waives a particular requirement), not later than Jones, Esq., [email protected], and Pachulski Stang Ziehl OF SUBSTANTIALLY ALL OF METAVATION, LLC’S OPERATING five business days before the Bid Deadline, certain & Jones LLP, 150 California St., 15th Floor, San Francisco, ASSETS FREE AND CLEAR OF ALL LIENS, CLAIMS AND documents and/or otherwise comply with certain require- California, 94111, Attn: David Bertenthal, Esq., INTERESTS ments as set forth in the Bidding Procedures. For a bidder to [email protected]; (iv) counsel to the Stalking Horse be a Qualified Bidder and its bid to be a Qualified Bid, Bidder, Skadden, Arps, Slate, Meagher & Flom LLP, Four certain requirements must be satisfied as set forth in the Times Square, New York, New York 10036, facsimile: PLEASE TAKE NOTICE that, on July 22, 2013, Metavation, Bidding Procedures. 917-777-3000, Attn: J. Eric Ivester, Esq., LLC, as debtor and debtor in possession (the “Debtor”), [email protected], and Skadden, Arps, Slate, filed Metavation, LLC’s Motion for Entry of an Order (A) PLEASE TAKE FURTHER NOTICE that the Debtor may conduct Meagher & Flom LLP 155 North Wacker Drive, Suite 2700, Approving Bid Procedures for Substantially All of the Debtor’s an Auction to determine the highest and best bid with Chicago, Illinois 60606, Attn: Christopher M. Dressel, Esq., Operating Assets; (B) Scheduling an Auction and Hearing to respect to the Acquired Assets. The Auction shall commence [email protected], and (v) the Office of the Consider the Sale and Approve the Form and Manner of Notice at 10:00 a.m. (Eastern Time) on August 29, 2013, at United States Trustee, J. Caleb Boggs Federal Building, 844 Related Thereto; (C) Establishing Procedures Relating to the Pachulski Stang Ziehl & Jones LLP, 919 North Market North King Street, Suite 2207, Lock Box 35, Wilmington, Assumption and Assignment of Certain Contracts, Including Street, 17th Floor, Wilmington, Delaware 19801, or such Delaware 19801, Attn: Jane M. Leamy, Esq., Notice of Proposed Cure Amounts; (D) Approving Payment of a other location as announced by the Debtor prior to the [email protected], so as to be filed/received by August Break-Up Fee and Expense Reimbursement; and (E) Granting Auction. Creditors wishing to attend the Auction should 23, 2013, at 4:00 p.m. (Eastern Time). Related Relief (the “Bidding Procedures Motion”). All provide notice of intent to attend to the Debtor prior to capitalized terms not defined herein have the meaning August 23, 2013. PLEASE TAKE FURTHER NOTICE that the Bidding Procedures ascribed to them in the Bidding Procedures Motion. On shall govern the bidding process and the Auction of the August 9, 2013, the Court entered an order (the “Bidding PLEASE TAKE FURTHER NOTICE that the Bankruptcy Court Acquired Assets. All requests for information concerning the Procedures Order”) granting the Bidding Procedures has scheduled a hearing for August 30, 2013, at 9:00 a.m. assets and Bidding Procedures and/or copies of the Sale Motion and approving the bidding procedures annexed (Eastern Time) (the “Sale Hearing”) to consider approval of Motion, Bidding Procedures or Bidding Procedures Order thereto (the “Bidding Procedures”) to be used in connection the winning bid(s) and confirm the results at the Auction for should be directed in writing to Pachulski Stang Ziehl & with the auction (the “Auction”) of substantially all the the assets, pursuant to a motion filed by the Debtor seeking Jones LLP at the address below, Attn: Timothy Cairns, or by Debtor’s operating assets related to its damper non-foundry approval thereof (the “Sale Motion”). The Sale Hearing email to [email protected]. business (as further described in the Agreement, the “US may, however, be adjourned in open court from time to time, Acquired Assets”), as well as certain assets of a Mexico without further notice. The Sale Hearing will be held before PACHULSKI STANG ZIEHL & JONES LLP non-debtor affiliate (collectively, the “Acquired Assets”). the Honorable Brendan L. Shannon, United States Laura Davis Jones The US Acquired Assets are being sold free and clear of all Bankruptcy Court Judge, at the United States Bankruptcy David M. Bertenthal liens, claims, encumbrances and interests, provided that Court for the District of Delaware, 824 North Market Timothy P. Cairns section 363(f) of the Bankruptcy Code has been satisfied Street, 6th Floor, Courtroom No. 1, Wilmington, Delaware, 919 N. Market Street, 17th Floor (other than those liens and interests permitted by the 19801. P.O. Box 8705 Agreement with the Stalking Horse Bidder). Wilmington, DE 19899-8705 (Courier 19801) PLEASE TAKE FURTHER NOTICE that any objection to the Sale PLEASE TAKE FURTHER NOTICE Telephone: 302-652-4100 that the deadline for Motion and any of the relief to be requested at the Sale Facsimile: 302-652-4400 submitting bids by a Qualified Bidder (to be delivered to the Hearing must be in writing, state the basis of such objection Debtor and other parties specified in the Bidding Proce- with specificity, and shall be filed with the Court, with a [Proposed] Counsel for Debtor & Debtor in Possession

______LEGAL NOTICE ______LEGAL NOTICE ______LEGAL NOTICE ______20130819-NEWS--0016-NAT-CCI-CD_-- 8/16/2013 9:51 AM Page 1

Page 16 CRAIN’S DETROIT BUSINESS August 19, 2013 Lawmakers may leave roads decision to voters While Senate leaders percent. ers — even if it doesn’t raise more more and more to me, there’s not a come up again, but said the legis- say they realize the im- The sales tax increase money. possibility of doing something in lators who were here in 2007 when portance of finding a so- Capitol would go to schools and Even so, such a vote is unlikely the November ballot.” Gov. Jennifer Granholm extended lution to fix Michigan’s Briefings local government, but to appear on the November ballot, If the deadline to put the vote on the sales tax to a select group of crumbling roads sooner neither would end up since both the House and Senate the November ballot is missed, the service businesses, a move that rather than later, there with more money. In- would have to come up with lan- Legislature could pick another was promptly repealed, “probably doesn’t seem to be the stead, gas tax money guage and approve it with a two- date. It is not bound to call an elec- will not have any part of that.” will to fix it with a leg- that now goes to those thirds vote by Aug. 29, according tion on one of the state’s four des- “There is no political will to islative remedy. sources would be allo- to the Department of State. The ignated election dates when move in that direction,” Because voting to cated to roads. Senate has two session days and proposing a constitutional amend- Richardville said. raise registration fees or So why do it? the House just one scheduled be- ment. The next of those is in Feb- the gas tax is a non- A ballot measure fore that deadline. ruary. starter with leading law- means that lawmakers “You have to get a whole lot of Another idea, one that would Possible Medicaid vote soon Chris Gautz makers, the talk has don’t have to vote for a things right in a relatively short not need a constitutional amend- With the Legislature’s two- shifted once again to tax increase, and those period of time,” Senate Majority ment, would be to extend the month summer break almost over, putting it to the voters to decide if studying the idea believe a tax in- Leader Randy Richardville, R- state’s sales tax to services, then a vote on Medicaid expansion they would support raising the crease for schools and local gov- Monroe, said to reporters after lower the rate overall. could come next week. state sales tax from 6 percent to 7 ernment is more palatable to vot- session last week. “It looks like Richardville said that idea has Richardville said there is likely to be a vote when the full Senate returns for regular session Aug. 27. The Senate is also in session the following day. Since leaving for break without taking the vote as Snyder had wanted, Richardville said he has taken quite a bit of heat for being more deliberate with the issue, but he said it is one that will affect “ HOW CAN DTE ENERGY people for years and it’s more im- portant to get it right. There was another chance last HELP MY BUSINESS SAVE?” week to take the vote, when the Senate had a pro forma session day — which lasted less than 10 Each business is different, so DTE Energy offers an online Interactive Business tool which seconds — but Richardville de- flected any potential criticism for lets you get information tailored to your specific business environment. From grocery not voting again. stores to warehouses, you’ll find tips, incentives, rebates and more that will help you “If you don’t give people a rea- sonable chance to look at these dif- reduce your energy use. We also provide a number of other online tools to help our ferent proposals and provide in- business customers use less energy and save more money. put, then it’s not fair to the people of the state of Michigan,” Richardville said. Senate Minority Leader Gretchen Whitmer, D-East Lans- ing, said she thinks the votes were there to pass HB 4714 in June, and DTE wants to help you save, so get started at doesn’t think many senators have changed their minds on the con- dteenergy.com/interactivebusiness troversial issue. She said she is concerned about whether there will even be a vote, based on what she is hearing at the Capitol, because conservatives and tea party groups are putting so much pressure on Republican senators to vote against it. Richardville said it is possible that more than one plan may be put up for a vote when the Senate comes back next week. Along with HB 4714, also up for potential consideration are two plans from Republican senators that rely on private-sector princi- ples, but do not expand Medicaid, and may cover fewer people and cost more than the plan in HB 4714. Those plans, contained in SB 422, and in SB 459-60, have not been very well vetted, Whitmer said, and should not have been ele- vated to the level of the product of HB 4714, which expands Medicaid to some 450,000 of the state’s work- ing poor adults. Comings and goings Ⅲ Melissa Seifert has been ap- pointed to serve as AARP Michi- gan’s primary lobbyist, as the as- sociate state director for government affairs. She has worked for AARP Michigan for Start saving today visit: the past three years as the associ- ate state director for economic se- dteenergy.com/interactivebusiness curity. Chris Gautz: (517) 403-4403, [email protected]. Twitter: @chrisgautz 20130819-NEWS--0017-NAT-CCI-CD_-- 8/16/2013 10:59 AM Page 1

August 19, 2013 CRAIN’S DETROIT BUSINESS Page 17 Need a New Bank?

Classic cars cruise down Woodward Avenue during this year’s Dream Cruise. SPENCER ABBOTT/AUTOWEEK Accelerating economy revs up business Let ours compete for your business. at classic-car repair, restoration shops Loan amounts: $1,000,000.00 and above. s Investment Real Estate s Accounts Receivable s Owner Occupied Real Estate s Equipment BY MEGAN DURISIN Co., Ford Motor Co. or Chrysler s Lines of Credit s Bank Workouts BLOOMBERG NEWS Group LLC, now controlled by Everybody just Fiat SpA, said director Jay Fitzger- In car-crazy Detroit, a booming “ ald. The value of the cars the club auto industry means more than a kind of held back, considers “classics,” primarily paycheck and benefits. For thou- those built between 1925 and 1948, sands of people who make their waiting for that has gone up the past several years living from cars, it also means as wealthy car lovers put their again having the cash to baby sunshine ... when money into hard assets to hedge 800.509.3552 their vintage Mustangs and they got a new against declining stocks. www.eclipsecapitalgroup.com Corvettes. Now that the economy is picking 2207 Orchard Lake Road, West Bloomfield, MI 48320 Ed Syrocki, owner of EMS Classic job. up, interest is increasing in the “Since 1997” Car Care in Warren, said classic-car midrange of classic cars, those a work in the Detroit area slowed ” few years newer than the ones in Ed Syrocki, EMS Classic Car Care down as unemployment soared, fi- Ray’s garage, said Keith Martin, nancing dried up and the auto in- publisher of Sports Car Market and taking them in for paint jobs, modi- dustry suffered through bankrupt- American Car Collector magazines. fications and tune-ups. cies and job cuts. Now the “When the economy was terri- Rich Ray, 66, of Brighton, automakers are profitable again, ble, really rich people were buying worked in the auto industry for 38 adding jobs in factories and offices, really expensive cars,” Martin years before retiring in 2003, and Syrocki’s crew has more cars to said in a phone interview. “The putting in time at the former Gen- work on than it can handle. $30,000 to $100,000 range was soft eral Motors Corp., American Motors “Everybody just kind of held because people were worried Corp. and Chrysler Corp. The self- back, waiting for that sunshine to about their jobs.” proclaimed car nut owns four clas- come back out and be able to drive There’s more confidence now, he sic cars: a 1930 Packard Touring the car again when they got a new said, particularly in American mus- Car, 1954 Jaguar XK-120 Roadster, job,” Syrocki said. cle cars dating from 1955 to 1974. 1941 Dodge pickup and 1941 Cadil- The clouds have lifted. Business Hagerty’s data shows the average lac convertible sedan. at his shop grew by 10 percent in value of 15 muscle cars it tracks He bought the Cadillac last year 2011 and 15 percent last year. from 1964 to 1970 peaked at $235,700 and spent $1,500 to have its Hydra- “There’s a lot of cars out there to be in December 2008. It fell 20 percent Matic transmission rebuilt by a fixed, and there’s a lot of cars out to below $190,000 in 2010 and has there cruising around,” he said. vintage-car specialist in Fenton. since rebounded 8 percent to about Classic-car repair and restora- Next, he wants to get a glossy, $205,000 in April. The company’s in- tion shops in the area “failed during black porcelain finish on the ex- dex tracking affordable classics, the course of the recession because haust system. cars from 1949 to 1970 that go for there just wasn’t the business com- “Back when the auto companies less than $30,000, also is up after ing through the door,” said McKeel went bankrupt, I was really ner- reaching a five-year low in 2012. Hagerty, CEO of Traverse City- vous about things, so I wasn’t buy- “It’s always said, ‘People collect based Hagerty Insurance. “Those ing anything then,” Ray said of his that remained are reporting that classic cars. “I became more com- what they remember,’ ” said Mar- business is booming.” fortable with it, with the economy tin, who himself owns 15 classic The price of classic cars has and my outlook, as time went out.” cars. “There are a lot of people in swelled since the worst of the eco- Detroit’s hot-rod culture is their 50s and 60s now who think nomic downturn. Hagerty Insur- strong, Ray said. He remembered it’s time to get a Camaro.” ance compiles a Blue Chip Collec- going to classic-car shows at Syrocki said he gets the most tor Car Index weighing the average Chrysler headquarters in Auburn business every year in the weeks value of 25 popular classic cars, Hills that would fill the employee leading up to the Woodward such as the 1953 six-cylinder parking lot because so many work- Dream Cruise. On a recent July Chevrolet Corvette Roadster and ers had a collector car. morning, a mechanic was elbow- 1959 Maserati 5000GT Coupe. From “There’s a lot of people in all the deep under the hood of a 1969 Mal- August 2009 to April 2013, the index auto companies who are active ibu Chevelle at his shop, 12 miles rose 54 percent to $1.45 million. with cars, old cars,” Ray said in a north of GM’s headquarters in The firm insures about 875,000 phone interview, taking a break downtown Detroit. A few yards classic cars, 150,000 more than two from polishing his Packard in Au away, a stack of sea-foam leather years ago, Hagerty said. Gres, overlooking Lake Huron. “I seats waited to be reupholstered. A Michigan is a hotbed of the clas- think it’s what Michigan is all dozen more classic coupes were sic automotive market, and while about, and Detroit. The industry’s parked in a nearby storage garage, Detroit’s population has plunged to coming back.” waiting for transmission tune-ups 700,000 from 1.85 million in 1950, the Many members of the Classic and engine repairs. area remains home to many collec- Car Club of America’s Michigan “The past two years solid, we’ve tors, Hagerty said. As the value of region, including Ray, have some been going up,” Syrocki said. classic cars rises, more buyers are connection with General Motors “There’s more cars every day.” 20130819-NEWS--0018-NAT-CCI-CD_-- 8/16/2013 9:52 AM Page 1

Page 18 CRAIN’S DETROIT BUSINESS August 19, 2013

CALENDAR TUESDAY CRAIN’S DETROIT HOUSE PARTY AUG. 20 Gain an insider’s perspective on Small Business: Unlocked – Connec- Detroit’s history, current tions & Cocktails. 5-7 p.m. Detroit Re- renaissance and its future from 4- gional Chamber. Casual networking. 10 p.m. Sept. 26 at the seventh 24 Grille, Detroit. Free. Open exclu- annual Crain’s Detroit House Party, sively to Detroit Regional Chamber a collaboration between Crain’s members. Contact: Marianne Detroit Business and the Michigan Alabastro, (313) 596-0479; email: State Housing and Development [email protected]; web- Authority. site: www.detroitchamber.com. Choose from six tours that include an overview of the people, places and neighborhoods that make up WEDNESDAY Detroit’s core, including the east AUG. 21 side, Lafayette Park, Corktown, Woodbridge, Midtown and Building Your Team for Success. 8-10 downtown. Preview the tours at a.m. Better Business Bureau. Learn to www.crainsdetroit.com/events. combine your vision, plan and people Tours leave from Detroit’s Cobo to make your business successful. Center. With Phil Myre, former National Hock- ey League goaltender and current con- Tickets are $60 for Crain’s sultant. Better Business Bureau, subscribers, $85 for a ticket and Southfield. Free. Contact: Doris one-year Crain’s subscription, $99 Hendricks, (248) 799-0305; email: for nonsubscribers and $55 for [email protected]; guests in groups of 10 or more. website: www.detroitbbb.org. For more information, call Kacey Anderson, (313) 446-0300, or visit www.crainsdetroit.com/events. Know, Do Crowdfunding. 6-9 p.m. Walsh College. Seminar on the basics Join the conversation on Twitter of crowdfunding by Fundington-The with #cdbhouseparty. Funding Capital. Walsh College, Troy. Free. Contact: Scott Kloustin, (248) Talent Townhall – Oakland County Re- 987-8180; email: scott@funding sources. 8-10 a.m. Aug. 28. Auburn ton.com; website: http://know Hills Chamber of Commerce. Event docrowdfunding.eventbrite.com. will profile resources offered by Oak- land County for area employers. Top- ics include economic and workforce THURSDAY development. Baker College Auburn Hills. $25 members, $35 nonmembers. AUG. 22 Contact: Rachael Jay, (248) 853-7862; email: rjay@auburnhillschamber Minority Small Business Commercial .com; website: www.auburnhills Lending Workshop. 11 a.m.-5:30 p.m. chamber.com. New Detroit Inc. Banking seminar to help minority small-business owners strengthen their working relation- Crain’s Fastest Growing Companies. ships with banks and other lending in- 5-9 p.m. Sept. 11. Crain’s Detroit Busi- ness stitutions and expand their familiari- . Hear the stories on what’s dri- ving the growth of companies from ty with the lending process. Crain’s annual list of the fastest-grow- Presenters will include representa- ing. Colony Club, Detroit. $60 sub- tives from U.S. Small Business Admin- scribers, $99 nonsubscribers, $85 with istration, Charter One Bank, Invest De- one-year Crain’s subscription, troit, Detroit Development Fund, $10 guests in groups of 10 or more. SCORE and CPAs specializing in small Contact: Kasey Anderson, business. SER Metro-Detroit, Detroit. (313) 446-0300; website: www.crainsde Free; registration required. Contact: troit.com/events. Social Results: Tracking and Analyzing Your Social Media Metrics Richmond Hawkins, (313) 664-2045; email: [email protected]; Future of Health Care in Michigan. 10 website: www.newdetroit.org. a.m.-2 p.m. Sept. 13. Citizens Re- search Council of Michigan. Focus on Leading HR When It’s Not Your Day how health care is changing and what A FREE Webinar Job: Recruiting Talent. 8:30-11:30 a.m. the changes will mean for businesses, Ann Arbor Spark. For business pro- providers and Michigan residents. fessionals who are responsible for hu- With Marianne Udow-Phillips, direc- tor, Center for Healthcare Research & man resources yet are not deeply- Transformation; Jim Haveman, direc- September 18 trained HR specialists; a tool to learn tor, Michigan Department of Commu- about recruiting your organization’s nity Health; Paul Spaude, president 12:00 - 1:00 PM talent. Part two on retaining talent is and CEO, Borgess Health, Kalamazoo; Sept. 19. Ann Arbor Spark, Ann Ar- and keynote speaker David bor. $25 for both sessions. Contact: Spahlinger, M.D., senior associate Reserve your seat: Alissa Carpenter, (734) 372-4071; email: dean for clinical affairs at University [email protected]; website: of Michigan Medical School. Dear- crainsdetroit.com/events www.annarborusa.org. born Inn, Dearborn. $70 per ticket, $300 for five seats or $575 for 10 seats. Contact: www.crcmich.org through Discover: FRIDAY Sept. 4 or call (734) 542-8001 after that deadline. An overview of what can be measured on AUG. 23 Facebook, Twitter, LinkedIn, and Youtube Reinventing Macomb. 8-10 a.m. Ma- CALENDAR GUIDELINES comb County Chamber PAC. With How to set goals for each network and track them WXYZ-Channel 7 editorial director If you want to ensure listing online using both internal and external measurement tools Chuck Stokes. The local business and be considered for print community and elected officials meet publication in Crain’s Detroit How to analyze your reports and begin to for conversations on Medicaid expan- Business, please use the online sion, no-fault insurance reform, road calendar listings section of adjust your social media and content strategy funding and education finance/con- www.crainsdetroit.com. Here’s solidation. Gowanie Golf Club, Harri- how to submit your events: son Township. $25. Contact: Jeffrey Almost everything you do in social media is measurable. Learn From the Crain’s home page, click Presented by: Tracy Schmidt, Director Wasser, (586) 493-7600; email: “Detroit Events” in the red bar how to use both free and premium tools to track the success of [email protected]; near the top of the page. Then, of Social Media Strategy & Consulting www.macombcountychamber.com. your social media strategy - as well as how to tie your efforts click “Submit Your Entries” from directly to increased revenue. Crain Communications the drop-down menu that will UPCOMING EVENTS appear and you’ll be taken to our online submission form. Fill out Hot Shots: Career Connections. 5-7 p.m. the form as instructed, and then Aug. 27. Ann Arbor Spark. Networking click the “Submit event” button at Presented by: Sponsored by: for talent seeking opportunities for the bottom of the page. That’s all themselves. Conor O’Neill’s, Ann Ar- there is to it. bor. Free. Registration now open. Con- tact: Shannon Beeman, (734) 527-9143; More Calendar items can be found email: [email protected]; on the Web at website: www.annarborusa.org. www.crainsdetroit.com. 20130819-NEWS--0019-NAT-CCI-CD_-- 8/16/2013 9:54 AM Page 1

August 19, 2013 CRAIN’S DETROIT BUSINESS Page 19

BUSINESS DIARY CONTRACTS duce its own blanks in-house in re- www.brasscraft.com. Mobile Technology Association of sponse to current production de- Chrysler Group LLC, Auburn Hills, is mands. This capability reduces toll Michigan, Southfield, Michigan’s mo- investing $52 million in its engine processing fees, streamlines process- bile/wireless industry trade associa- plants in Trenton and Dundee to in- es, reduces scrap and improves quali- tion, and the Healthcare Information crease capacity of the Tigershark en- ty. Website: www.cpec.com. and Management Systems Society, gine and creating 298 new positions at Chicago, announced a joint agreement Hobbs + Black Associates Inc., Ann the Trenton plant. Trenton North will BUILT TO LAST designed to bring attention to the Arbor, completed the Tucson Medical receive $11.5 million to add an assem- practice of medicine and public health Center West Pavilion, Tucson, Ariz. bly line for the four-cylinder Tiger- supported by mobile devices, solu- The building program included a new shark engine. With a $40.5 million in- tions for app developers, device manu- west hospital and a new five-story vestment, Dundee will convert a line DEMO TOUR facturers, health care services parking structure. Website: to machine cranks, heads and blocks Join Us for Giveaways, Hands on Demos and Great Prizes. providers and consumers, with focus www.hobbs-black.com. to support Tigershark production at on solutions originating in Michigan. Front Street PR, Farmington, Trenton. The Dundee Engine Plant Websites: www.gomobilemichigan.org, launched a new website for Robert will continue to assemble the engine, FEATURING: To RSVP visit: www.himss.org. Grafton, M.D., founder of PSI Medical alongside the 1.4-liter FIRE engine enichols.com/training-and-events Miller, Canfield, Paddock and Stone Group, with offices in Rochester Hills and the World Gas Engine. Website: Smarter Cart Challenge www.chryslergroupllc.com. PLC Detroit, served as legal adviser to and Livonia, specializing in bio-iden- Maneuverability Road Course Michigan Multispecialty Physicians PC, tical hormone replacement and anti- Lipson Neilson Cole Seltzer & Garin To contact Nichols, visit Ann Arbor, in its integration with IHA aging procedures. Websites: www.psi PC, Bloomfield Township/Las Vegas, Interactive Mobile Showroom enichols.com or call 800-442-0213 Health Services Corp., Ann Arbor. med1.com, www.frontstreetpr.com. opened an office in the Ford Building, Website: www.millercanfield.com. Alchemy Group, Birmingham, a brand 615 Griswold St., Suite 721, Detroit. Telephone: (313) 962-4032. Website: 8/21/2013 8/22/2013 ToolWorx Information Products Inc., strategy and engagement-focused agency, added Milco Manufacturing, www.lipsonneilson.com. 12 PM - 4 PM 10 AM - 2 PM Brighton, was awarded a patent for its Oakland University Michigan Coatings SmartVision labeling system, which Warren, a supplier of resistance weld- LA Fitness, Irvine, Calif., opened a 2200 Squirrel Rd 3761 Eastern allows produce growers to use stan- ing equipment, and DiverseNote, De- club at 3501 W. Maple Road, Suite A, dard graphics and markings to identi- troit and Ypsilanti, a career manage- Birmingham. Telephone: (248) 430- Rochester, MI 48309 Grand Rapids, MI 49508 fy produce in containers and automat- ment and recruitment social network, 0584. Website: www.lafitness.com. ically print the associated Produce to the agency’s client roster. Websites: German American Chamber of Com- Traceability Initiative-compliant la- www.alchemygp.com, www.diverse merce of the Midwest Inc., Chicago, is bel, using the Intermec Smart Printer note.com, www.milcomfg.com. opening an office at 1 Woodward Ave., as both computer and printer, saving CKC Agency, Farmington Hills, a com- Detroit, and sharing facilities with the growers money while streamlining munications firm, added as clients: Detroit Regional Chamber. Website: accurate labeling. Website: www. Health Alliance Plan, Detroit; The WW www.gaccmi.org. toolworx.com. Group Inc., Farmington Hills; Celebrity TRW Automotive Holdings Corp., Livo- Placement Services, West Bloomfield MOVES Township; Great Lakes Culinary Cen- nia, started production of its AC100 24 USS Vision Inc. LLC, vision error ter, Southfield; Terri Orbuch, The Love Changing the odds GHz forward-looking radar on the proofing and turnkey integration/en- Doctor LLC, publicity for “Secrets new PSA Platform EMP2. The first ve- gineering, increased its training facil- From the Love Doctor,” a new national hicle is the Citroen C4 Picasso, which ities and application development de- in our clients’ favor PBS special; a la card, Chicago, diner launched this summer, and will be fol- partments and moved from 32549 discount program for chef-owned/own- lowed at the end of 2013 by the new Schoolcraft Road to 12870 Farmington er-operated restaurants in Chicago, de- Peugeot 308. The AC100 radar includes Road, Livonia. Telephone: (734) 522- buting in Detroit; BollyFit LLC, Ann Ar- distance and collision warning and in- 8100. Website: www.ussvision.com. tegration with braking systems to pro- bor, publicity for “Welcome to Flooring Technologies LLC, a commer- vide adaptive cruise control. The tech- BollyFit!,” an interactive workout cial flooring, installation and mainte- nology can also enable further DVD. Website: www.ckcagency.com. nance company and certified features, such as activation of re- Women’s Business Enterprise by the versible restraint systems, pre-crash EXPANSIONS Great Lakes Committee of the pre-fill of brakes, adaptive brake as- Atlas Oil Co., Taylor, opened offices in Women’s Business Enterprise Nation- sist and automatic emergency brak- Orlando, Fla.; Charlotte, N.C.; and al Council, moved from 19347 Stony ing. Website: www.trw.com. Greensboro, N.C. The three offices of- Pointe, Macomb Township, to 17001 19 Altair Engineering Inc., Troy, and Al- fer full-service fueling capabilities for Mile Road, Suite 5, Clinton Township. tair Partner Alliance announced that gas, diesel, on-road and off-road fuels, Telephone: (586) 229-2024. Website: the electromechanical analysis tool as well as fleet fueling and emergency www.floortechservices.net. fueling. Website: www.atlasoil.com. JMAG, created by JSOL Corp., Tokyo, CKC Agency, a full-service communi- Japan, will be available to enabled Hy- Urban Science Inc., Detroit, an auto- cations firm, expanded and moved its perWorks users in September. Web- motive retail consulting firm, is ex- headquarters from 28580 Orchard Securities fraud and shareholder rights site: www.altairalliance.com. panding its global operations with Lake Road, Suite 150, to 28580 Orchard Automotive supplier disputes Shareholder and partnership disputes COE Press Equipment Corp., Sterling offices in Gurgaon, India, and Sao Lake Road, Suite 210, Farmington Heights, a designer and manufacturer Paulo, Brazil, and adding staff Hills. Telephone: (248) 788-1744. Web- Commercial and business lawsuits Family law and probate litigation of a complete line of premiere coil in Beijing, China. Website: www. site: www.ckcagency.com. handling and servo roll feed equip- urbanscience.com. ment, delivered and installed a new BrassCraft Manufacturing Co., Novi, a NAME CHANGE 248-841-2200 value series cut-to-length line for Fri- Masco company and manufacturer of Seger-Evekrog Inc., Novi, announced millerlawpc.com goglass North America Ltd. Co., Spar- gas and water supplies, expanded its that as of Sept. 1 the company will be tanburg, S.C., a provider of beverage Push Connect technology family of known as Provident Investment Man- coolers. The new line allows Frigo- products by adding a Push Connect agement. Website: www.investprovi glass the flexibility and speed to pro- one-piece water supply. Website: dent.com. NEW PRODUCTS American Beauty Soldering Tools, REAL ESTATE AUCTION manufactured by Assembly Technolo- Work smarter for your business. th gies International Inc., Clawson, de- SEPTEMBER 18 veloped a full line of ergo-style solder- Otsego Club Resort Development ing irons. The nearly 90-degree angle soldering iron’s casing allows the user & M-32 Commercial Sites to operate the tool from an ergonomi- Gaylord, Michigan cally comfortable position. Website: www.americanbeautytools.com. PRISTINE RESIDENTIAL, COMMERCIAL AND RECREATIONAL DEVELOPMENT LAND STARTUPS 7 acres - 213 acres The Artist Lounge, offering art classes Offered as five parcels -- Buy One, Some or All! and private events, opened at 31 N. Saginaw St., Pontiac. Telephone: MINIMUM BIDS FROM: $3,500 per acre (248) 499-7073. BUY NOW PRICES FROM: $175,000 DIARY GUIDELINES PUD for 1,100 units in place for residential & recreational land development, this offering presents a one-time only opportunity Send news releases for Business to acquire and develop 4-season vacation residential, primary Diary to Departments, Crain’s residential, recreation land application as well as a prime Detroit Business, 1155 Gratiot M-32, 7 acre commercial development site Ave., Detroit, MI 48207-2997 or Size, comfort, value and versatility that drives your potential. send e-mail to cdbdepartments@ The 2013 Sprinter Van — exclusively at Mercedes-Benz of Novi. Visit us today to CONTACT US FOR COMPREHENSIVE BIDDER INFORMATION crain.com. Use any Business Diary see one of the area’s largest Sprinter inventories. PACKAGE, SITE TOUR DATES & TERMS OF SALE item as a model for your release, and look for the appropriate Mercedes-Benz of Novi category. Without complete 39500 Grand River Ave. Inland Real Estate Brokerage & Auctions, Inc. information, your item will not run. Novi, MI 48375 In cooperation with Michigan Network Realtors, MI License #6505341670. Photos are welcome, but we cannot 248-426-9600 (Sales & Service Available Now) 800-840-1558 • www.inland-auctions.com guarantee they will be used. www.mercedesbenzofnovi.com ® The Inland name and logo are registered trademarks being used under license. 20130819-NEWS--0020-NAT-CCI-CD_-- 8/16/2013 9:55 AM Page 1

Page 20 CRAIN’S DETROIT BUSINESS August 19, 2013

The firm worth PEOPLE listening to ARCHITECTURE Michael Durand to IN THE SPOTLIGHT director of health Detroit-Wayne County Community is the firm that care practice, Mental Health Agency, Detroit, has Ghafari Associ- named Tom ates LLC, Dear- SM Watkins born, from princi- president, CEO listens to you. pal and strategic and executive board member, director. Albert Kahn As- Watkins’ sociates Inc., De- predecessor, troit. Kerttu McKenna-Dailey SM Veda Sharp, Talk to Foley. We’re listening. Durand retired several CONSTRUCTION years ago. Bob Kohut to vice president, estimat- Watkins, 59, ing and business development, Ideal Watkins most recently Contracting LLC, Detroit, from direc- was president When our Detroit clients needed a national law firm tor of estimating. Also, Kevin Foucher and CEO at educational consultant that provides trusted local advisors with top-tier legal to vice president, construction, from TDW & Associates, Northville. project director; and Jon Hautau to He earned a master’s degree in skills, Foley delivered. That’s why our attorneys and vice president, program management, social work administration and practices are consistently recognized for excellence from senior project manager. completed course work toward a doctorate in educational by our clients and industry experts.* FINANCE leadership from Wayne State Perry Rainney Bryan Bussert to tax manager, Baker University. He is a former state Kurt Kerttu to senior vice president, Learn more about how Foley can add value to your business. Contact Tilly Virchow Krause LLP, Southfield, schools superindendent. operations, J.R. Thompson Co., Farm- ington Hills, from vice president of op- Detroit Office Managing Partner Daljit S. Doogal at [email protected]. from senior tax accountant. Kristen Bennetts to corporate con- erations. Also, Fiona McKenna-Dailey INFORMATION TECHNOLOGY troller, BrassCraft Manufacturing Co., and Joshua Perry to vice president, Novi, from manager, financial plan- client services, from client services Foley.com Drew Cowlishaw to director of engi- ning and analysis, Masco Corp., Taylor. supervisor; and David Rainney to vice neering services, OpTech LLC, Troy, Mark Barrett to group vice president, president, technology services, from from district manager, Kelly Services procurement, program management director of technology services. Inc., Troy. and driveshaft business unit, Ameri- Tammy Kuphal to can Axle & Manufacturing Holdings senior media MANUFACTURING Inc., Detroit, from group vice presi- planner and buy- dent, procurement and program man- Larry Ott to vice er, The Berline ® agement. Group Inc., Bloom- *Chambers USA: America’s Leading Business Lawyers
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 Ott tor Inc., Troy. Kuphal tinuing as executive vice president. Rachele Downs to vice president, entrepreneurial strate- gies, Inforum and Inforum Center for Leadership, Detroit, from program manager, Detroit Revitalization Fel- lows Program, Wayne State Universi- ty, Detroit. REAL ESTATE Lynette Becks- voort to senior property manager, Signature Associ- ates Inc., South- field, a Cushman and Wakefield Inc. Alliance member, Kyle Sasena, VP, International Banking Specialist from certified Fred Fordon, SVP, Commercial Banking Manager property manager, Waters Realty & Development, The Entrepreneurial Bank. Becksvoort Grand Rapids. SERVICES Level One Bank makes international trade easy. Import and export, safe and efficient. Level One, your international bank, right here at home. Call us. Woolford Eagy Terry Woolford to business development manager, Material Process Equipment Contact Greg Wernette Inc., Highland, from general manager and vice president of sales, Eagle Prod- Entrepreneur and Chief Lending Officer, 248-737-0300 uct Inspection, Tampa, Fla. John Eagy to director of recruiting, Brightwing, Troy, from director of re- cruiting, Bartech Group Inc., South- field. Dan Bove to vice president of opera- tions and performance management, Empower Energies Inc., Troy, from vice president, operations, UR Solar Power LLC, Frederick, Md. Also, Michael Wright to vice president, mar- keting, from director, marketing, New Way Air Bearings, Aston, Pa. 32991 Hamilton Court ∫ Farmington Hills, MI 48334 ∫ levelonebank.com Michael Gonte to production planner, Allied Printing Co. Inc., Ferndale, from Commercial Banking ∫ Retail Banking ∫ Mortgage Services senior operations manager, EGT Print- ing Solutions LLC, Madison Heights. 20130819-NEWS--0021-NAT-CCI-CD_-- 8/16/2013 5:21 PM Page 1

August 19, 2013 CRAIN’S DETROIT BUSINESS Page 21 ‘Strong case’ seen for REAL ESTATE

AUCTIONS AUCTIONS INDUSTRIAL PROPERTY Detroit general-obligation AVAILABLE NOW 10,843sf Retail Building & 6,014±sf Greenhouse on 6.98± Acres Taylor/Romulus Area Near Detroit Metro Airport 901 North State Road (M-15), Davison, MI PANORAMA Ranch Open House: Wednesday, August 14th (1-3pm) 4,000 to 80,000 sq. ft. 6 Vacant Subdivision Lots Ideal for logistics, mfg., service co., distribution, bonds paying 100 percent Waters Edge Ln., Fenton, MI office warehouse etc. Call for Availability 1± Acre Corner Commercial Lot N. State Rd. (M-15) & Stanley Rd., Davison Yvon Rea 734-946-8730 or 3.67± Acres with 30x48 Pole Barn visit our website www.reaconstruction.net 875± Acres, House & Farm Buildings BY MARTIN BRAUN U.S. Bankruptcy Code in 1988, vot- M-57 (Vienna Rd) & McKinley Rd, Montrose 1.77± Acre Corner Commercial Lot 4355 Whitehouse Trail, Gaylord, MI BLOOMBERG NEWS er-authorized general-obligation Dort Hwy. & E. Stanley Rd., Mt. Morris debt for capital projects backed by 1.88± Acre Corner Commercial Lot LIVE AUCTION OFFICE BUILDING Detroit’s $369 million of voter- a specific tax levy that doesn’t feed E. Atherton Rd. & S. Irish Rd., Davison, MI Tuesday, September 17th at 7pm approved general-obligation bonds 2.91± Acre Commercial Lot Residential Estate Site, 10 ACRES +/- the general fund would be consid- Lapeer Rd., Davison, MI Tract 1: 210± Acres (2) 3BR Houses 400’ Along Franklin Hills CC (private) provide a “strong case” to be treat- ered special-revenue debt, which Tract 2: 300± Acres, Tract 3: 275± Acres ROCKRIDGELOT.COM $1.9M 248.514.0685 Tract 4: 90± Acres ed as secured debt in the city’s is secured, Weyl said. He cited re- 7 ONLINE-ONLY AUCTIONS Mona Parlove, Hall & Hunter, Realtors th Hunting Retreat with Log Cabin record bankruptcy, returning 100 search in a book by Chapman & Cut- Wednesday, August 28 Open Houses: percent to investors, according to See website for individual bid deadlines! Sat, Aug 24th (1-3pm), Sat, Sept 14th (1-3pm) ler LLP, Municipalities in Distress. WATERFRONT PROPERTY Barclays Plc. The description in an offering Kevyn Orr, the city’s emergency statement for the bonds provides manager, stunned the $3.7 trillion support for its status as secured BEST DEAL municipal market when he lumped debt, Weyl said. Language in a doc- In Harbor Springs Detroit’s unlimited general-obliga- (517) 676-9800676-9800 (517) 676-9800676-9800 ument describing the 1999 unlimit- www.SheridanAuctionService.com www.SheridanAuctionService.com tion bonds with those that are de- ed-tax general-obligation bonds fined as “limited,” describing both says the projects to be financed as unsecured. While the former are were voter-approved and subject backed by taxes on voter-approved to a specific debt-service tax. projects, the latter don’t require A 2008 offering statement for a such a referendum and are paid off $204.9 million issue of such bonds out of general funds. says Detroit is obligated to collect Yet holders of the “unlimited” taxes to pay the debt without re- debt may get as little as 3 percent of t
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 Barclays director of muni re- weren’t voter-approved and are re- Contact: (248)540-1000 search, suggests those bondholders paid from general revenue, Weyl [email protected] may fare much better. [email protected] said. Those securities are unse- “Investors with appropriate risk cured, he said. 2 Corporate Drive, Suite 300 PETOSKEY AREA appetite may wish to consider (517) 676-9800676-9800 There is risk that the court sides Southfield, MI 48076 URT AKE stand-alone (unlimited tax general www.SheridanAuctionService.com www.Colliers.com B L with Detroit, Weyl said. That may obligation) bonds,” Weyl said in an be trumped by the bankruptcy Aug. 7 report, discussing the gen- COMMERCIAL PROPERTIES judge’s desire to move the city eral-obligation securities involved quickly through a reorganization in the Detroit bankruptcy. “Such MARKET HISTORIC HOUSE and limit appeals, he said. A ruling debt will likely have a strong argu- 12 Mile and Telegraph Area against treating the unlimited ment for special revenue status in On 1 acre, Large historic barn ˜3 Bedroom Year-Around Cottage bonds as secured would probably PLACE House needs restoration bankruptcy, though there is no ˜Shared Association Waterfront guarantee such argument will pre- be appealed, he said. Good office or residential site, only $74,000 Call Van Esley Real Estate ˜ Rental Income Potential vail.” “If the judge is really concerned BUSINESS SERVICES (734) 459-7570 ˜Only $224,900 - Furniture Included Since the record bankruptcy fil- about, not the legal merits, but ˜ 100’s Other Waterfront Properties ing on July 18, at least three Michi- what’s in the best interest of De- Does Your Business Need a gan municipalities have post- troit and trying to craft a solution "Second Opinion?" FOR SALE Joe Blachy that works for them, tying up the An advisory board will serve as an effective poned bond deals after investors 35,000 Square Foot Bowling Alley (231) 409-9119 city in appeals is not in their best tool in ensuring the company is moving in demanded higher interest rates to the right direction. On 2.74 acres across from Target in interest,” Weyl said. email: [email protected] compensate for the new risk that Learn how a Board of Advisors can help. Macomb County. Very Profitable. website: joeblachy.com Orr’s plan would set a precedent. Assured Guaranty, which backs [email protected] Call Van Esley Real Estate (248) 642-3287 Call anytime between 7am & 10pm 7 days a week! J.R. Rieger, S&P’s vice president $146 million of the unlimited tax (734) 459-7570 420 Howard St., Petoskey, MI 49770 for fixed-income indexes, said the debt, probably will fight over its BUSINESSES FOR SALE filing spurred a $13.8 billion muni- secured status, he said. market loss through Aug. 7. “We believe the city’s pledge of Barrier Free Equipment Company for Sale Yields on 30-year municipal its unlimited taxing power and re- Stairway Lifts, Wheelchair Ramps, Residential/ sources is not, legally or morally, Commerical Wheelchair Lifts. Est. 1965. Inquiries bonds reached about 4.64 percent Invited. (313) 520-0909 JOB FRONT Thursday, the highest since May 4, on the same level of priority as un- 2011, as prices for the securities secured obligations to vendors and Seeing Green! NON-PROFIT POSITIONS AVAILABLE fell. other creditors,” Dominic Frederi- Unique, Established, Profitable Retail Detroit unlimited-tax general- co, Assured’s chief executive offi- Business for Sale DONATE REAL ESTATE State Administrative Manager obligation bonds maturing in cer, said during an Aug. 10 confer- Landmark Macomb County Location. 15-Chief of Southern Field April 2028 and backed by Assured ence call with investors. Inventory, fixtures & goodwill equal multiples of Full Market Value Tax Deduction. Operations Guaranty Ltd. traded at an average “The city’s voters approved the asking price. Video tells all, view it at: Fast And Easy. debt, and the bond resolution un- www.ownitnow.net and call (586)506-5311 We Do All Paperwork. The Michigan Department of Natural of about 88 cents on the dollar Resources, Parks and Recreation Division is Thursday to yield 6.2 percent, or equivocally and irrevocably (248)408-6027 Grosse Pointe Woods Retail Business seeking to hire a Chief of Southern Field 2.7 percentage points more than pledges the city’s full faith and How2donate.com Operations responsible for assisting the top-rated debt with similar maturi- credit, unlimited taxing power, Continous Operation Since 1971 Parks and Recreation Division Chief in the ties, according to data compiled by and the resources of the city, for administration and supervision of the Positive 6-figure earnings Call Us For Personalized Bloomberg. the timely payment of the princi- Southern field operations for the Parks and Recreation Division. This position is also That’s 0.1 percentage point less pal and interest,” Frederico said. $250,000.00 Service: (313) 446-6068 responsible for management and operation He said the company-backed por- than the average spread of 2.8 per- Serious Inquiries; Bob 313-715-6767 of Southern Michigan state parks and centage point since Feb. 26, the tion calls for about $15.3 million in FAX: (313) 446-1757 recreation areas, trails, boating facilities, and data show. annual payments over the next 10 E-MAIL: [email protected] partnerships. U.S. Bankruptcy Judge Steven years. Please visit the State of Michigan Civil Call or email today for information INTERNET: Service website at www.michigan.gov/mdcs In addition to the $530 million of Rhodes, the overseer of Detroit’s on a custom advertising plan! www.crainsdetroit.com/section/classifieds and click on "State Jobs". Select the State case, will determine whether the unlimited and limited general- Administrative Manager 15 position within unlimited tax general obligation obligation bonds Orr classified as See Natural Resources. bonds are treated as secured or un- unsecured, another $479 million is [email protected] Crainsdetroit.com/Section/Classifieds In order to be considered for this position secured debt. secured by a pledge of state aid, you must follow the directions on the Civil 313.446.6068 for more classified advertisements Service website and submit required Under amendments made to the Weyl said. information and college transcripts as noted. 20130819-NEWS--0022-NAT-CCI-CD_-- 8/16/2013 5:21 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS August 19, 2013 Lexicon Lighting’s sales shine as biz turns on to LED lights

BY JAY GREENE rescent or older bulbs with longer other Michigan-based LED compa- CRAIN’S DETROIT BUSINESS life and energy-efficient LED nies include Madison Heights- lamps. based Lumerica, Ferndale-based Shelby Township-based Lexicon Founded in 2008 by Dobosz, who Midwest Circuits and Relume Tech- Lighting Technologies is capitalizing also is CEO of Lexicon Plastics nologies Inc. in Oxford (See story, on the surge in interest in LED Corp., Lexicon competes with this page). lighting the past four years. large companies like General Elec- Over the next 20 years, the con- The company said it is generat- tric, Philips and Sylvania by offering version to LED — for light-emit- ing 30 percent to 40 percent growth clients five-year unconditional ting diodes — could save $120 bil- in sales that exceeded $5 million warranties on its LED lamps and lion in energy costs, reduce last year. assistance in recovering utility electricity use by 25 percent and Client companies like Greektown and government financial incen- eliminate 246 million metric tons Casino-Hotel in Detroit and Nino Sal- tives. of carbon emissions, said a 2010 vaggio International Marketplace “The major (LED companies) of- U.S. Department of Energy report. have installed thousands of LED fer a three- to 10-hour-per-day war- As prices drop and companies lamps as part of efforts to lower ranty and manufacture their and consumers take advantage of electricity costs. lamps in the Far East and China. the federal, state and utility com- “Companies are seeing pay- Manufacturing in the U.S. is bet- pany incentives, DOE said the use backs on their investments in ter. We have high-speed, highly of LED lamps will account for only eight months to a year in some cas- precise technology that produces es,” said Joseph Dobosz, Lexicon’s 9 percent of all lighting sales in much better lamps,” Dobosz said. 2015 but grow to 36 percent by 2020 CEO. “We offer an unconditional In Michigan, a growing number guarantee for five years, and com- and 74 percent by 2030. LARRY PEPLIN of LED manufacturing companies CEO Joseph Dobosz says that interest in LED lighting has generated 30 percent panies are saving thousands of dol- Michael Gross, a managing di- are also producing and selling a rector of Farmington Hills-based to 40 percent in sales growth at Lexicon Lighting Technologies. lars in capital costs by not having variety of styles of LED lamps to Beringea LLC, and one of Relume’s to replace bulbs every two to five replace florescent and other older major venture-capital investors, months.” style lights used for parking lots, Michigan with $30 million in offering customers a variety of en- said that a barrier to market pene- For example, Greektown in- outdoor signs, pedestrian areas grants that went to cities, counties ergy efficiency incentives through tration for LED lighting has been stalled 3,500 American-made LED and high-ceiling manufacturing and some private companies for ef- Your Energy Savings Program, the high cost of manufacturing, lamps manufactured by Lexicon companies, said Dave Simon, sec- ficiency improvements. Detroit re- which includes financial rebates but that those costs continue to and is saving $287,000 annually in retary of the Michigan Solid-State ceived $10 million, said Josh to purchase LED lamps, said Ken come down. electricity costs. Nino Salvaggio Lighting Association. Brugeman, director of energy effi- Randazzo, DTE’s manager of ener- “Some customers haven’t been installed hundreds of Lexicon LED “There is a tremendous amount ciency with Detroit-based NextEn- gy efficiency, commercial and in- willing to make the investment, lamps at its three area markets of research and development and ergy. dustrial businesses. but as manufacturing costs come Another program, offered by And so far in 2013, DTE has re- and has cut electricity costs by 75 manufacturing going on in Michi- down, it will lead to a massive con- nonprofit Michigan Saves, offers imbursed customers for 960 LED percent, saving $167,000 a year. gan across a broad sweep of LED version from traditional lighting,” low-interest rate financing for en- projects, a number that has been Recent technological break- technology categories,” said Si- he said. “A LED light bulb is still ergy efficiency and renewable en- growing every year, he said. throughs — and federal tax and mon, who also is president of Tog- way more expensive, but if you ergy projects through the Depart- Michigan’s energy optimization utility company financial incen- gled, a subsidiary of Altair Engineer- don’t have to change it for 20 years, ment of Energy, Brugeman said. program is scheduled to expire in tives — allow businesses to replace ing Inc. of Troy. and it burns less electricity, it Under the Energy Policy Act of 2015. Gov. Rick Snyder is expected their halogen, incandescent, fluo- Besides Toggled and Lexicon, makes sense to buy it.” 2005, or EPAct, companies receive to issue recommendations for a Federal and state incentives are an accelerated tax deduction be- new energy plan this fall that is ex- other factors encouraging busi- tween 60 cents to $1.80 per square pected to continue the energy re- Just three of the reasons ness investment in LED lights. foot if they add LED lamps or other bate program, which is funded by In 2009, the American Recovery energy efficiency programs. surcharges to consumers’ energy to book our bus. and Reinvestment Act provided Since 2009, DTE Energy has been bills.

MIKE DONNA MITCH Driver Customer Service Mechanic You’ll love this Our girl Friday (... and If it ain’t broke, he’ll man in uniform. every other day, too!) check it anyway.y y Relume Technologies acquired by Conn. LED maker; subsidiary files Chapter 7

BY TOM HENDERSON LED lighting for the auto industry, Relume. CRAIN’S DETROIT BUSINESS with Relume Technologies evolv- Relume will continue to operate ing to sell LED technology to other under that name. McIntosh said It was a busy week for Oxford- markets. It now focuses on supply- Relume will keep its engineering based Relume Technologies Inc. ing lighting systems to municipali- and manufacturing in Oxford and On Monday, the maker of LED ties, including Ann Arbor and Ar- retain its workforce of about 60 products and smart-grid control lington, Va. employees. Most members of man- systems was bought by Revolution According to Relume CEO agement are expected to be re- Lighting Technologies Inc. (Nasdaq: Crawford Lipsey, the company had tained. RVLT), an LED manufacturer $10 million in revenue last year “Revolution is building a broad based in Stamford, Conn. and was expected to hit $16 million On Thursday, one of its sub- strategy for the LED lighting,” this year. said Michael Gross, a managing di- sidiaries, Oxford-based Relume In January 2012, Relume an- rector at Beringea. “Relume Corp., filed for voluntary Chapter 7 nounced it had raised $7 million in brings outdoor lighting and smart- bankruptcy. venture capital, with Farmington grid technology to Revolution, According to Curt McIntosh, Re- Hills-based Beringea LLC leading lume Technologies’ director of the round with an investment of which has concentrated on the in- marketing, Relume Corp. had been $3.2 million from the $300 million door market. It will be a good part- a nonactive subsidiary for several InvestMichigan fund it helps man- nership moving forward.” years and had no employees. The age on behalf of the state. Gross declined to comment on filing was part of the agreement to Ann Arbor-based Plymouth Man- whether the upside for Relume’s NEWNEW MODELMODEL COACHESCOOACCHES sell the parent company. agement Co. and Detroit-based In- VC investors in the sale is the t stock they might receive from Rev- FREE WIFI 24/7 DISPATCH According to the bankruptcy pe- vest Detroit also participated. t
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tition, Relume Corp. had assets of Beringea previously invested $1 olution and its possible apprecia- t
ECO-FRIENDLY $280,696 and liabilities of $5.5 mil- million in the company, and last tion as the LED market grows. t
EXPERT BOOKING CONSULTANTS lion. The company was founded by December helped it raise another Lipsey said that the acquisition t
AFFORDABLE RATES the late Peter Hochstein as a spin- $4 million to fund growth, mostly by Revolution will allow Relume to off of a company he’d founded, from existing investors. invest in the technology and equip- Quantex Engineering, which sup- Under terms of the sales agree- ment needed to continue growing. plied instrumentation and test ment, Revolution Lighting will Tom Henderson: (313) 446-0337, 800-292-3831 indiantrails.com equipment for the auto industry. pay $5 million in cash and $10 mil- [email protected]. Twitter: Relume Corp. was a pioneer in lion worth of its stock to purchase @tomhenderson2 20130819-NEWS--0023-NAT-CCI-CD_-- 8/16/2013 5:16 PM Page 1

August 19, 2013 CRAIN’S DETROIT BUSINESS Page 23 MCDONALD HOPKINS Gleaners: Plans for building tabled WEBINAR ■ From Page 3

new markets tax credits to support commodity food programs for cause the food turns a lot faster,” real estate plans and operations. senior citizens, the U.S. Department Brisson said. Larson played a role in helping of Agriculture snack program for There’s a strong need among negotiate the deals — with new children and low-income families, Gleaners’ clients for fresh pro- markets tax credits — that put Mo- community food project grants, duce, Brisson said. “And for us to saic Youth Theatre (which aban- the emergency food assistance pro- drive costs down, buying at the be- doned its own plans to rehab a gram and the Supplemental Nutri- ginning of the food chain is going building it acquired) into the new tion Assistance Program, or food to be important,” he said. University Prep Science and Math stamps. Gleaners is moving forward Elementary School this spring and “The final word is not out, but with plans to renovate its Detroit Thursday,Thursday, AAugustugust 222,2, 22013013 the College for Creative Studies into the cuts to food stamps alone have headquarters, at 2131 Beaufait St., the A. Alfred Taubman Center for De- ranged from 10 percent to 40 per- with repairs to the roof and walls 1:00 p.m. to 2:15 p.m. EDTEDT sign Education, among others. cent in terms of proposals,” Bris- and upgrades to the heating and Topics will include: It’s incumbent upon nonprofits son said. cooling and parking lot improve- • Who is subject to the revised HIPAA rules as a business associate to assess current market condi- “What it looks like now are all of ments as part of a $5 million capi- • Expanded business associate obligations and liability tions to determine the best use of the food programs are at more tal project. • Changes to the Privacy Rule assets, Larson said. risk. Plans also called for renovation • Revised breach notification requirements That sometimes means not occu- “Based on our current distribu- of the building’s third floor so the • Lessons learned from recent HIPAA enforcement activities and audits pying a building you own. tion ... we’re not going to reach 50 food bank can move its financial • Steps that healthcare providers, health plans and business associates During fiscal 2012 ended Sept. million pounds in the next two to and fundraising teams back to its should take prior to the September 23, 2013 compliance date 30, Gleaners distributed about 45 three years,” or if Gleaners does headquarters from leased space million pounds of food, up from exceed that amount, it won’t pose they occupied in Dearborn two about 40 million in 2011, 30.8 mil- an issue since produce has quick years ago. Brisson said the hope is RSVP: mcdonaldhopkins.com or lion in 2009 and 25.4 million in turnover, he said. to get them back into the Detroit call: 800.847.6424 to register. 2008. To help offset declines in gov- site by 2015. Despite the loss of about 5 mil- ernment food donations, Gleaners Gleaners also plans to create lion pounds of food from govern- is securing more produce from gardens for educational program- ment sources this year, the food local farmers. ming, an outdoor plaza to accom- bank is on pace to distribute about Gleaners has taken in more than modate large volunteer groups and 45 million pounds again, Brisson twice the amount of produce it a neighborhood farmers market, said. That’s thanks to produce do- brought in two years ago, or 14.5 and a cleared space that will be de- nations from area farmers, which million pounds of fruits and veg- veloped in the future as part of a are helping to fill the gaps. etables this year, up from 7 million greenway running from the river McDonald Hopkins PLC Congress is discussing further pounds in 2011. to Gratiot Avenue, Brisson said. 39533 Woodward Ave., Suite 318, Bloomfield Hills, MI 48304 cuts as it reauthorizes the Farm “That changes the business Sherri Welch: (313) 446-1694, Bill, which provides funding for a model somewhat and relieves [email protected]. Twitter: 248.646.5070 range of food programs including some of the space pressure be- @sherriwelch Stephen M. Gross, Detroit Managing Member Chicago • Cleveland • Columbus • Detroit • Miami • West Palm Beach

mcdonaldhopkins.com Carl J. Grassi, President Inforum calls on women to activate their business goals

BY AMY HAIMERL rum and Inforum Center for Leader- ment Team of Raymond James & Asso- CRAIN’S DETROIT BUSINESS ship. “We are looking for experi- ciates Inc. in Farmington Hills and enced business professionals who an Inforum board member. “So In Michigan, 50 percent of bach- are looking for the second or third this program can help them under- elor’s degrees and 60 percent of ad- chapter of their careers, who might stand what type of business mis- vanced degrees are earned by be good matches for the post docs sion they need, what kind of orga- women, but they are only patent- candidates and research profession- nization they need and that they ing their work at 40 percent of the als — people who may have spent don’t have to do it alone.” rate of men, according to Inforum, their career in academia and are Inforum is accepting applica- Michigan’s professional women’s looking for a business partner.” tions for its second cohort, which alliance. Nationally, only 3 percent The program graduated its first are due by midnight Aug. 31. of high-tech ventures are led by class of women in June, and more There are 26 slots and they will be women. than half of them are preparing to spread between two locations — Inforum wants to bridge that launch their businesses. Grand Rapids and Detroit. Classes gap. “You have your serial entrepre- are held one evening per week and The organization offers a 10- neurs who start something with one Sunday per month. The fee is month course in entrepreneurship the end in mind, but the others, $3,400. Information is available at for women that leads potential busi- well, so many startups fail,” said www.inforummichigan.org/activate. ness owners through everything Colleen Theuerkauf, a certified fi- Amy Haimerl: (313) 446-0416, from vetting the idea to identifying nancial planner with Stroko [email protected]. Twitter: the first customer and actually MacWilliams-Wolf Wealth Manage- @haimerlad launching. The program attracts in- terest primarily from STEM-related (science, technology, engineering and mathematics) entrepreneurs but is open to any growth-oriented businesses. NOMINATIONS SOUGHT FOR NONPROFIT CONTEST It is seeking applicants for the This year’s Crain’s Best Managed Nonprofit Contest is focused on good next round of classes beginning in management practices of nonprofits with budgets of $3 million or less. September. A five-year goal is to Applicants are asked to give examples of how they deploy their mission create at least 16 companies with $8 and resources, among other information. million in new capital investment. Applications are due Aug. 26. Finalists will be interviewed in person by The initiative — Achieving the judges the morning of Nov. 5. Commercialization of Technology Applicants for the award must be a 501(c)(3) with headquarters in Wayne, in Ventures Through Applied Washtenaw, Oakland, Macomb or Livingston counties. Applications must Training for Entrepreneurs — as include an entry form, a copy of the organization’s code of ethics, a copy of well as two other efforts targeting the most recent audited financial statement and a copy of the most recent women business leaders, are IRS 990 form. backed by a $718,000 grant from Previous first-place winners are not eligible; neither are hospitals, HMOs, the Michigan Economic Development medical clinics, business and professional organizations, schools, Corp.’s Michigan 21st Century Jobs churches or foundations. Fund and a $250,000 grant from the The winners will be profiled in the Nov. 25 issue, receive a special “best- New Economy Initiative. managed” logo from Crain’s for use in promotional material and will be recognized at the Crain’s Newsmaker of the Year lunch early next year. “We’re really looking to match women with diverse skills and ex- For an application form, please email YahNica Crawford at [email protected] or visit www.crainsdetroit.com/nonprofitcontest. For periences,” said Rachele Downs, information about the contest itself, email Executive Editor Cindy Goodaker the newly appointed vice president at [email protected] or call (313) 446-0460. of entrepreneurial studies at Info- 20130819-NEWS--0024-NAT-CCI-CD_-- 8/16/2013 5:25 PM Page 1

Page 24 CRAIN’S DETROIT BUSINESS August 19, 2013 Charters: National Heritage grows UPCOMING ■ From Page 3 demand for charters. Dan Quisenberry and Vice Presi- (University) and Grand Valley a PARTNER EVENTS Ross said Michigan as a whole, dent Buddy Moorehouse. point from which to enhance their and metro Detroit in particular, is Educators expect a flat or falling visibility in the city that they did- seeing an over-proliferation of population of students to help lim- n’t have before. The University of 2013 such schools after the Legislature it the number of new charter Michigan and Michigan State Univer- Crain’s partners with a variety of in 2011 lifted a cap on the number schools going forward. sity don’t charter schools, yet have organizations on events by providing of charter schools the state’s pub- Last fall, 118,907 high school se- locations in the city and they do special subscription offers for their members. lic universities can authorize. niors attended public schools professional development in the In time, he expects market statewide, a decline of nearly 2,000 city. So all of it becomes outreach Visit their websites for more details forces will correct for that and from a year earlier and nearly in the broadest sense,” he said. rightsize the number of charters 6,000 from five years ago, accord- Statewide, he expects National as parents gravitate to the highest- ing to enrollment data from the Heritage and other charter manage- Tee-It-Up at MHCC 22nd Annual Golf Outing performing schools. state Center for Educational Perfor- ment organizations will face in- Don’t miss an opportunity to network with fellow “Everybody’s in competition. mance and Information. creasing pressure to compete for a OEMs, Tier 1, Tier 2 supplier companies and Chamber And that’s exactly what the advo- But Ross and Paradiso expect dwindling number of students members. Join us August 19 at three championship cates of charters, like Bill Clinton metro Detroit to remain a source rather than expand and start new courses: Cherry Creek Golf Club, Greystone Golf Club and John Engler in the 1990s, had of intense market competition for schools. He also said universities Michigan Hispanic Chamber of Commerce and The Orchards Golf Club. The Golf Committee envisioned for the current system. charters. Grand Valley State Universi- will award only a few new charters Chairman is Grace Lieblein, Vice President Global It’s now both a supply and demand ty has chartered more than 30 to the operators they find most de- Purchasing and Supply Chain at General Motors. issue,” Ross said. schools in Southeast Michigan, serving, and that market forces will Corporate sponsor opportunities are still available “Since the cap came off charters, and Eastern Michigan University this regulate the number of schools To register online or for more information, visit there’s been a rush to create new summer signed contracts to autho- much as caps had done in the past. www.mhcc.org or call Barbara Lange at ones in Detroit and the near sub- rize three more charter schools, “National Heritage has been (248) 792-2763. urbs, despite the fact that the mar- including two in the city. strictly in the elementary school ket is generally declining. And all The James and Grace Lee Boggs business, but their schools in the of us are calling upon university School and the Detroit Public Safety Detroit area have been very high- WBEC Great Lakes Women’s Business Conference authorizers to think more about Academy open this fall and are ex- performing, and they’re a welcome Achieve 6 months of sales prospecting in 2 days and the market as a whole.” pected to serve 372 students in addition to the community,” Ross learn leadership and sales strategies that will serve you About 30,500 of National Heritage grades K-4 and high school fresh- said of National Heritage as a all year long. This conference will addresses the needs Academies’ total of 48,000 students man/sophomores, respectively. prospective competitor. of both aspiring and established business owners and last year attended Michigan charter Quisenberry said anecdotal evi- “Our hope is, over time, between delivers strategies for succeeding in a highly competitive schools, with the rest spread across dence indicates universities out- parents making good decisions market.Special procurement opportunities are available for Ohio, New York, North Carolina, side of Detroit have historically and charter authorizers winnow- WBENC certifi ed women business enterprises at the event. Colorado, Indiana, Louisiana, Geor- been able to turn a charter foot- ing out the low performers, that KEYNOTE SPEAKERS: Cynthia Kay, president and CEO, gia and Wisconsin. print into a source of new under- we’ll get a smaller but better crop Cynthia Kay & Co, author and speaker; Paradiso said new academies of- graduate enrollment, but there of schools within the city. And Susan Bari, president emeritus, Women’s Business ten start as a K-5 school of about 400 “has to be some intentionality in we’ll see which organizations are a Enterprise National Council (WBENC), women’s business students and grow to 700 in grades that” and each school probably has part of that.” champion and author. K-8 over time. Based on that, the varying results. Chad Halcom: (313) 446-6796, Sept. 24: Noon – 7:30 p.m. company can expect nearly $245 “But charters have certainly [email protected]. Twitter: Sept. 25: 8 a.m. – 5 p.m. million revenue in Michigan this given schools like Central Michigan @chadhalcom Suburban Collection Showplace, Novi CEED members: $150 • non-members: $175 school year, based on an aggregated For information and to register, visit www.miceed.org $7,900 in per pupil public funding or call (734) 677-1400. charters receive, according to the Lansing-based Michigan Association of Public School Academies. Paradiso said companywide rev- The Southfi eld Area Chamber in partnership with Royal enue could top $300 million this Oak and Ferndale Area Chambers of Commerce present fancy? Success for Small, Minority and Women Business. Guest year across all nine states. what’s your speakers will share their successes, challenges and “About two-thirds of our stu- obstacles, what type of leadership style they have and how dents qualify for a free or reduced The design team turned to precast they plan to continue their success. KEYNOTE SPEAKER: lunch program. So they are fami- when searching for an energy Florine Mark, CEO, Weight Watchers. SPEAKERS: Pamela lies living at or below the poverty Good, executive director, Beyond Basics; Michele Lewis, line. Working families, certainly, efficient structural system with the owner, Painting with a Twist. some single moms, or children ability to be installed quickly. Edge Sept. 26 • 4 p.m. – 7p.m. raised by grandparents — but poor 24350 Southfi eld Rd, Southfi eld, MI 48075 does not mean an unintelligent to edge insulation in the precast Members: $10 • non-members: $25 consumer,” Paradiso said. wall panels helped provide the Cost to exhibit: members: $100 • non-members: $150 “What we’re often finding in ur- To register, please visit www.southfi eldchamber.com ban education is, while school may ultimate in energy efficiency for not have been a positive experi- the store. ence for the parents, they do often Join the who’s who in healthcare for GDAHC’s Salute to know what they want for their Healthcare Awards Dinner. Featuring TV Personality and children. And we do find urban Spokesperson, Lila Lazarus. students in our schools working at Award recipients: Kimberlydawn Wisdom, M.D., M.S., or above the performance level of SVP Community Health & Equity and chief wellness offi cer, the districts where they live.” Henry Ford Health System and Matrix Human Services Public Act 277 of 2011, the law Sept. 26 • 5:30 p.m. – 8 p.m. governing the number of combined International Banquet Center, Atheneum Hotel, charter schools that Michigan’s 15 1000 Brush, Detroit public universities can authorize, GDAHC members: $100 • non-members: $135 lifted the historic cap from 150 to Register at www.gdahc.org. Sponsorship opportunities 300 charters in 2012, then to 500 this available. For more information call 313-965-4123. calendar year and next, and finally no cap starting in 2015. But MAPSA, the charter school Meet the buyers – a procurement matchmaking event association, reports there were Meet with buyers from Federal, State, and Local only 276 charter schools in the Governments. This half-day program is designed to help 2012-13 academic year, including small businesses begin or expand their business with all those authorized by Detroit Pub- government agencies. lic Schools, community colleges, in- Oct. 10 • 8 a.m. – 1 p.m. • $25 per person, includes termediate school districts or oth- continental breakfast er authorizing bodies besides Schoolcraft College, VisTaTech Center universities — and this year there 18600 Haggerty Rd., Livonia, MI 48152 will be only about 300, despite the

For registration questions, please call Continuing 500-school cap. www.kerkstra.com Education and Professional Development at 734-462- A gain of nearly 30 new starts 4448, email [email protected], or visit for charter schools over the past www.schoolcraft.edu/cepd. was offset by a handful being dis- KERKSTRA PRECAST continued after a reauthorization Family Fare at Metro Health Village Campus - Wyoming, MI review, usually for low perfor- mance, said association President 20130819-NEWS--0025-NAT-CCI-CD_-- 8/16/2013 5:37 PM Page 1

August 19, 2013 CRAIN’S DETROIT BUSINESS Page 25

Aluminum: Warehousing investigated WORLD-CLASS INFORMATION SERVICES FOR MICHIGAN BUSINESS ■ From Page 1 incentive system to bring in far change through debt, is the biggest Pricing blitz more aluminum than it allows to factor impacting the aluminum leave its warehouses, causing long markets, said Lloyd O’Carroll, Analysts also aren’t sold on the delays in the delivery of the metal metal stock analyst for Richmond, idea that metal warehousing rais- and, in turn, inflating prices. Va.-based firm Davenport & Co. es prices as the various complaints Tim Weiner, global risk manag- Near zero-percent interest rates and lawsuits indicate. er for Chicago-based beer brewer and a contango — predicted future “A lot of this comes down to MillerCoors, said in written testi- price is higher than the current whether this is a pricing issue or mony before a July 23 U.S. Senate price — have led to a rush of in- an inconvenience issue,” said An- subcommittee hearing that global vestors buying physical metal in drew Lane, steel and aluminum eq- aluminum costs were inflated $3 the warehouses uity analyst for billion in the past year due to the and selling the Chicago-based bottleneck, Bloomberg reported. contract forward A lot of this Morningstar Inc. The warehouses were incen- for a profit, O’Car- “ “There is overca- DATA CENTERS tivized to grow, and Metro is eager roll said. comes down to pacity in the mar- to keep the metal in the warehous- “The metal is in ket and prices are es because it charges premium the warehouse whether this is a actually declin- FIBER TO YOUR BUSINESS fees for stored metal, critics say. ready to be bought ing.” Nick Madden, vice president on the market and pricing issue or an In 2011, alu- and chief procurement officer for the contango is minum prices FIXED METRO WIRELESS Atlanta-based rolled-aluminum steep enough inconvenience soared above producer Novelis Inc., told Crain’s where you can sell $2,500 per metric in 2011 that Metro was offering it forward, pay the issue. ton. However MPLS | SIP | PRI cash incentives of up to $150 per warehouse storage ” prices have since ton to producers such as Montreal- charges and still Andrew Lane, Morningstar Inc. dropped dramati- based Rio Tinto Alcan Inc. and Pitts- make money,” O’- cally, to $1,834.50 burgh-based Alcoa Inc. to store alu- Carroll said. “This per metric ton on minum in its warehouses for is what everyone is doing.” Aug. 15. www.123.net contracted periods. Breaking down the financials Chinese aluminum production, Novelis is the largest supplier of for stock financing reveals why and capacity, has doubled since rolled aluminum to the automo- it’s become a hot market for in- 2005, flooding the global market, 866.603.4774 tive industry and operates a sales vestors. according to a May Morgan Stanley office in Novi. With short-term interest rates report. The aluminum market had According to London exchange near zero percent, investors can an estimated surplus of 900,000 rules, only 3,000 tons of aluminum accumulate large caches of alu- tons in 2012, the sixth consecutive are required to leave the ware- minum with little to no financing year of oversupply, according to houses each day, but an unlimited costs. Investors store the metal at the report. amount can enter. However, that the warehouses for approximately Lane said the surplus of metal aluminum doesn’t have to enter $164 per metric ton, but most buy- and lower demand has caught up the physical market — it can be ers negotiate discounts as high as to the market, dropping prices. transferred to other warehouses, 50 percent with warehouses with “Chinese producers have been including non-exchange ware- guarantees not to move the metal producing (aluminum) at a loss for houses. from the warehouse, years, continuing to drive up glob- Research through O’Carroll said. al supply,” Lane said. “Only 5 per- Bloomberg Profes- It’s easy With lower stor- cent of the global supply of alu- sional service re- “ age fees and a 15- minum is in the warehouse system veals that Metro’s money if you month contango at as well; so how can it have a mater- inventory has $190 per ton, accord- ial impact on prices?” grown from 893,025 know what ing to June 25 analy- However, premium prices — tons of aluminum in sis by Davenport & fees buyers pay for metal inside February 2010 to 1.46 you’re doing. Co., buyers stand to and outside of the warehousing million tons as of ” make a 9 percent system — are dictated by the ware- Aug. 15. Lloyd O’Carroll, profit. house system, said Jorge Vazquez, In 2011, Coca-Cola Davenport & Co. “It’s easy money founder and managing director of and others filed com- if you know what Laredo, Texas-based industry plaints with the London exchange you’re doing,” O’Carroll said. analysis firm Harbor Aluminum Intel- over wait times for delivery of met- Where this is affecting con- ligence. al purchased out of the warehouses, sumers like MillerCoors and Coca- “The question is, if prices and which aluminum consumers use Cola is when investors shuffle the premiums have been manipulated for spot buying. In 2010, it took six physical aluminum from ware- or not, if prices are the reflection Thursday, weeks to get aluminum out of the house to warehouse to reduce stor- of organic market forces,” September warehouses; now it takes 16 age costs, O’Carroll said. 12, Vazquez wrote in an email to months, according to anAug. 8 civil When a buyer moves metal, the 2013 Crain’s. suit filed by South Elgin, Ill.-based warrant from the metal on the ex- “Because of the unprecedented Custom Aluminum Products Inc. in U.S. change must be canceled. Of the and increasing cost of sourcing out District Court in Detroit. 1.46 million metric tons of alu- metal in Detroit … given the emer- Metro charges rent per ton, per minum at Metro International’s gence of a record queue in a con- day on the metal stored in its ware- Detroit warehouses, 916,425 metric text of a critical mass of metal con- houses. tons were on canceled warrants, as centrated in one warehousing The U.S. Commodity Futures Trad- of Aug. 15. ing Commission issued subpoenas The rise in canceled warrants company in one location with last week to Goldman and other typically indicates to the market what clearly seems to be an inor- ganic load-out rate.” Thursday, September 12, 2013 warehouse owners as part of an in- that metal is entering the physical DTE Energy Headquarters | One Energy Plaza, Detroit vestigation as to whether the oper- market for production, O’Carroll The warehouses, operating un- ation of these warehouses have ar- said. der London Metal Exchange rules, Celebrating today’s Real McCoys in Science, Technology, tificially inflated aluminum prices However, that’s not the case, aren’t incentivized to let the metal Engineering, Mathematics and Medicine (STEMM)! leave the warehouse, and longer in the Midwest. which makes it nearly impossible Awardees: queues drive up the premium pric- Mark Askew, vice president of for aluminum consumers to fore- Science: Jerry Caldwell, Director Drew Scholars Program, marketing for Metro International, cast pricing of the commodity, ing, which is based on how long Michigan State University-Ann Arbor resigned in April, marking the sec- leading to inaccurate budgeting, metal sits in the warehouse, O’Car- Technology: Rodney O’Neal, CEO Delphi ond executive departure of Gold- O’Carroll said. roll said. Engineering: Jessica Moreno, Engineering Business Manager man’s metal warehousing division “MillerCoors, for example, is a Premium prices in the Midwest General Motors-Global Electrical Systems since late 2012, Reuters reported. very sophisticated company with have risen to as much as $250 per Mathematics: Ronald Hall, Sr., President/CEO Bridgewater Interiors Askew declined to comment on its hedging; it hedges wheat as well metric ton from $150 per metric Medicine: Linda Gillum, Assoc. Dean Academic & Faculty Affairs, this story. Calls to Metro Interna- as aluminum,” O’Carroll said. ton in 2011, Lane said. Oakland University William Beaumont School of Medicine “There is room to make this tional were not returned. “They are not buying metal out of Individual tickets and sponsorship opportunities available at: the warehouses, but with interest market more efficient, transparent www.dapcep.org or call (313) 831-3050 rates as low as they are and stock and fair,” Vazquez said. Financing flurry financing growing, it’s impossible Dustin Walsh: (313) 446-6042, A spike in stock financing, pur- for them to plan pricing long [email protected]. Twitter: DAPCEP is a 501(c)3 nonprofit organization that provides historically chasing aluminum on the ex- term.” @dustinpwalsh underrepresented youth with innovative education programming in STEMM. 20130819-NEWS--0026-NAT-CCI-CD_-- 8/16/2013 5:13 PM Page 1

Page 26 CRAIN’S DETROIT BUSINESS August 19, 2013 Benjigates: Team hooks up auctioned properties with buyers ■ From Page 3

auctions. short classes on personal credit re- He saved $7,000 and bought his month, but the family declined. worst areas of the city and would That’s exactly the opposite kind pair, home maintenance or real es- first property at auction in 1998. “We bought this house in Octo- like to see the business get atten- of business the Benjamin Brothers tate business basics that buyers Hayes and Hudson later met ber (and) we have not gotten a tion, and help, from the city be- aim to run, according to homeown- must take as part of the deal. Benji- Broadway, 53, who has a back- dime, nor do we have possession of cause “they’re making it as easy a ers and peers. If the property turns gates set up a nonprofit called Car- ground in property management. our property,” Hayes said. road as possible to homeowner- out to have occupants, Benjigates ing Hands of Benjamin to administer He also was a pastor for 23 years ship.” doesn’t up the rent or kick them the courses. and a parochial school English Path to ownership “They’re promoting homeown- out. It cuts a deal. The deal structure reflects De- teacher for three. He came aboard ership and getting properties on “When we buy it and we come to troit’s distorted residential mar- and helped structure the business Situations at acquired Benji- the tax rolls, which is good for the the door and you’re in there, you ket, they said. About 40 percent of model for Benjigates, which gates properties run the spectrum, city,” said Webb, who funnels get the first opportunity to own it, the homes Benjigates buys are oc- launched in 2008 with $20,000. the partners said. Some occupants clients to Benjigates when they whether you were the owner, a cupied, Hudson said. Most occu- Benjigates receives funding owned their home free-and-clear can’t secure mortgages. renter or just took up residence,” pants are renters or owners who from private sources, mainly two for decades but couldn’t keep up Other buyers naively look for re- Hayes said. didn’t leave. About 20 percent are individual investors who charge with the taxes. In some places, the turns of $20,000 to $30,000, Webb “When you put somebody in squatters. For- high interest landlord kept collecting rent after said. “In 2005, that was doable. ownership, they’re more likely not mer owners typi- rates because it’s the county took the title. In others, Now, you’re lucky if the house is cally had proper- a high-risk line of lenders might take ownership of to lose their property and want to When we buy it worth $20,000.” ty tax debt from business, Hayes the property but not pay the taxes. pay taxes, want to keep their yard “ This leads to a revolving-door ef- up, want to keep the neighborhood $5,000 to $12,000, said. The home of George Parsons, a and we come to the fect in the homes, he said, with good,” Hudson said. and many had Last year, the 57-year-old retiree in Brightmoor, people getting forced out when the They haven’t gone unscathed in mortgage debt of door and you’re in company had $1.1 went to auction when the landlord owner refuses to work with the oc- their fight, squaring off against $30,000 to million in rev- didn’t pay taxes. Parsons became a cupants. lawsuits, stigma and the occasion- $110,000, he said. there, you get the enue, and the homeowner in May after making al armed drug dealer. Buyers are re- company is prof- $500 payments to Benjigates for 18 Szymanski at the county trea- sponsible for first opportunity to itable, Hayes months. He’s considering buying surer’s office said he’s heard Benji- property tax pay- said. another home for his children. gates is “very reasonable.” He did Shopping the auction block ments, including own it, whether you When asked if “They’re giving people a chance not care for the way Benjigates Every fall, the Wayne County those levied in were the owner, a Benjigates tries to own a home in a short period of bakes tax avoidance into its busi- treasurer’s office auctions off tax- the period be- to reach a certain time,” Parsons said of Benjigates. ness model and said the company delinquent properties. Those that tween the auc- renter or just took up dollar amount “It’s not like they’re making that does risk losing properties back to don’t sell at the first auction in tion sale and for each proper- much more.” the county. But a September get shunted to the Octo- when the new residence. ty, Hudson Janice Lewis deal possibly ber auction, where bids start at buyer signs a ” laughed and said, bought 17 homes They’re could be worked $500. Benjigates con- Antoine Hayes, Benjigates “Throw it from Benjigates “ out if it means Benjigates is among the top buy- tract — taxes against the wall.” — the first two on promoting keeping homes ers, last year buying 442 proper- Benjigates tech- The business contract, the rest from becoming ties. From its beginning in 2008 nically is responsible to pay. has faced two lawsuits. with cash — to get homeownership vacant, he said. through the end of last year, Benji- Benjigates says in this market it A lawsuit filed in February by into the rental Phillips, from gates had purchased nearly 1,200 can’t pay the taxes and offer prices Detroit-based lawyer Steven Budaj business, which and getting the nonprofit at the auctions for a total cost of feasible to low-income buyers, and says Benjigates charged his client has been success- United Communi- $1.3 million, or roughly $1,100 per that’s why it set its contracts to pe- monthly fees that effectively ful enough to al- properties on the ty Housing Coali- property, according to a Benji- riods of 12 or 18 months: The coun- amounted to a 70 percent interest low her to leave a tion, said he gives ty’s tax foreclosure process takes rate, well in excess of the state’s 11 nursing job. tax rolls, which is gates investor presentation. Of Benjigates credit three years; after Benjigates’ buy- percent limit on land contract The first Benji- those, Benjigates has sold more for lasting in the ers finish their contracts, they deals. Budaj is seeking class-action gates home cost good for the city. than 900. business more have up to two years to catch up on status. Lewis $3,000 in ” According to the website than a few years. WhyDontWeOwnThis.com, which the taxes. Hayes said the source of this 2011. She bought a Embry Webb, “They’re not tracks the county auction, the Ben- Extending the contract period or lawsuit is a former customer who, second one for Detroit Association of Realtors gouging, but jamin Brothers paid $500 to $14,100 raising the monthly amount after fulfilling the contract, was $8,000 and moved they’re also recog- for 440 properties at last year’s squeezes people for money they upset about the property tax bill her family into it, nizing a reality.” auction, 129 of them for the $500 don’t have and lowers a buyer’s and contacted the lawyer for her walking away from a $157,000 minimum price. (Two more were chances of fulfilling the contract, postal worker union. mortgage that cost her $1,200 a But he also said more funding acquired later.) Benjigates said. Benjigates had monthly finance month. She later bought the house for nonprofits would keep more Benjigates then sells the homes The homes are sold as-is, al- fees of between $125 and $175 in a at a sheriff’s sale for $13,000 and people in their homes for even less in deals structured to be feasible though Benjigates helps buyers previous version of its contract now rents it out. money. for minimum-wage earners and find affordable contractors for that it is since has dropped, Hayes The profit margins on some people on fixed incomes, while still needed repairs. said. Benjigates does not provide Revolving doors – and revolvers deals, and the viability for some leaving room for profit, company If the buyer can’t pay repair loans and it’s up to the court to de- buyers to be able to adhere to the executives said. costs all at once, a monthly pay- cide whether the old fees amount- It doesn’t always go so well. terms of their contract, are hard to Benjigates operates in the lower- ment plan is set up. ed to interest, he said, and the con- When Hayes and his partners predict income neighborhoods of the east Benjigates also gives buyers an tract makes it clear that the buyer show up to one of their new pur- For some deals, the company of- and west sides that arc around cen- information packet on how to de- is responsible for paying taxes. Bu- chases, there can be welcoming fers a “term-option contract,” a hy- tral Detroit. fend property titles because al- daj did not respond to a subse- arms from neighbors, disgruntled brid between a lease option deal Embry Webb, president-elect of though the county auction process quent call for further comment. former occupants or drug dealers. and a land contract that does in the Detroit Association of Realtors, clears titles of old liens, lawyers A second lawsuit, filed by De- “I’m surprised we haven’t found fact give it the best of both worlds said regular market prices for try to collect old debts anyway, troit anti-foreclosure attorney a dead body or a million dollars — fast evictions and no responsi- homes in those areas vary widely and it pays for home insurance for Vanessa Fluker in April, attempts yet,” Hayes said. bility for maintenance. depending on the strength of the the duration of the contract. to retrieve a property from Benji- In one incident two years ago, Without the ability to evict, Ben- block but usually range from gates, arguing the county mistak- Don Boggs, a buyer of one of Benji- jigates’ formula starts to unravel, $10,000 to $50,000. A typical house Bootstrapping backgrounds enly sent the property to auction gates’ homes, was hit in the face Hayes said. By the time a foreclo- even though, according to the suit, in the Brightmoor neighborhood with a Molotov cocktail thrown by sure on a land contract is ap- Hayes, 35, earned his real estate the disabled, elderly woman who goes for about $15,000. a woman who had been an occu- proved, the occupant already is be- license while working as a ma- owned it was current on her taxes pant before Benjigates bought the But that’s assuming people have hind by several months. Then the chinist after getting trained at Fo- and had been granted hardship ex- property. Boggs sustained burns money for down payments on occupant has another six months, mortgages. If not, rental rates are cus: Hope. Making just $10 an hour emptions. over 40 percent of his body and in the state of Michigan, to make usually $750 to $850 for three-bed- with a wife and two children at Fluker said the woman’s family was permanently scarred. His good on the payments. room bungalows and colonials home, he began working for a real offered to pay the $1,600 that Benji- home was destroyed. The offender With the market showing some that aren’t in historic neighbor- estate agent, taking pictures of gates paid for the home, plus a lit- was convicted of assault with in- hoods. homes on weekends. He opened an tle extra for the trouble. tent to murder. Benjigates gave signs of health, Benjigates is look- Benjigates arranges the deal so agency in 2001 and began working “This is egregious ... tossing out Boggs a new house. ing for outside investors so it can monthly payments are always $500 with Hudson on real estate ven- some senior citizen,” Fluker said. What kind of intimidation have get into more traditional funding. or less for periods of either 12 or 18 tures in 2006. Benjigates takes the position the Benjamin Brothers experi- The company’s work could play months. The buyer gets the title at Hudson, 38, has owned a cloth- that if there was a mix-up with the enced? as important a role in the come- the end of the period. Benjigates ing store, a mortgage business and county, it’s on the former owner to “It’s all the way to the wall, back of Detroit’s neighborhoods as does not provide loans, run credit an event promotion business. He take it up with the county. Hayes brother,” Hayes said. the actions of business leaders checks or verify income. started out of high school mowing said the woman has several adult “Guns drawn. They think we’re downtown, Hayes said, adding that There’s also a $750 closing fee lawns. In winters, he picked up children who live with her, and on their block,” Hudson said. he wishes they would “extend and a $250 educational fee. The ed- washers and dryers dumped in al- Benjigates offered to lease the Webb said Benjigates deserves their hand and meet us in Mid- ucational fee covers one of three leys and turned them in for scrap. home to the family for $750 a credit for going into some of the town.” 20130819-NEWS--0027-NAT-CCI-CD_-- 8/16/2013 5:20 PM Page 1

August 19, 2013 CRAIN’S DETROIT BUSINESS Page 27

Lotus: Bank executives accused of discrimination www.crainsdetroit.com EDITOR-IN-CHIEF Keith E. Crain ■ GROUP PUBLISHER Mary Kramer, (313) 446-0399 From Page 1 or [email protected] Indian is a dead Indian,” and anoth- nate an incendiary device. If so, I sets. And BauerFinancial Inc., a Fort deal with someone you know in ASSOCIATE PUBLISHER Marla Wise, (313) 446- 6032 or [email protected] er by him, when asked if he wanted will get tics (sic) for all of them.” Lauderdale, Fla.-based rating ser- upper management, but this does EXECUTIVE EDITOR Cindy Goodaker, (313) 446- free tickets for his Indian cus- On July 9, 2010, Bauer, who vice that ranks banks and credit not work like that. Do you under- 0460 or [email protected] MANAGING EDITOR Jennette Smith, (313) 446- tomers to attend a concert by an In- was acting as interim CEO as well unions, has consistently given Lo- stand English?” 1622 or [email protected] dian singer, said he was “only inter- as CFO, wrote to a friend: “We are tus its top rating of five stars. In February 2012, Takhar and MANAGER, DIGITAL CONTENT STRATEGY Nancy Hanus, (313) 446-1621 or [email protected] ested if someone is going to close to hiring a permanent re- As for the lawsuit itself, Patel Gupta met with Westerheide, who MANAGING EDITOR/CUSTOM AND SPECIAL detonate an incendiary device.” placement, which can’t happen too said: “This case has no merit. The said they needed to get current PROJECTS Daniel Duggan, (313) 446-0414 or [email protected] In response to a phone call from quickly for me. I just want my job claim of discrimination is baloney. within 14 days or face foreclosure, SENIOR EDITOR/DESIGN Bob Allen, (313) 446- Crain’s, Searle said: “We’ve talked back, and someone else can deal This was about people not paying forcing the two, according to the 0344 or [email protected] SENIOR EDITOR Gary Piatek, (313) 446-0357 or about this and decided the best with all these Indians. Working their loans; it wasn’t about dis- lawsuit, to take “extreme mea- [email protected] course of action is to say no com- with them really is like herding crimination.” sures to obtain funds from addi- WEB EDITOR Kristin Bull, (313) 446-1608 or [email protected] ment at this time. We don’t want to cats, and I hate cats! … Should run, Thomson said that while none of tional sources to comply.” WEST MICHIGAN EDITOR Matt Gryczan, (616) 916- try this in the press.” have plenty to do before the week- the disparaging comments was In the motion to have the law- 8158 or [email protected] DATA EDITOR Brianna Reilly, (313) 446-0418, The lawsuit was filed in March end. I will leave you with this sage made by Westerheide, he was in- suit dismissed, the defendants’ at- [email protected] by Elizabeth Thomson, an attor- advice from General Custer and cluded in the suit because he was torneys argue that claims of WEB PRODUCER Norman Witte III, (313) 446- 6059, [email protected] ney with Bloomfield Hills-based most Pakistanis: The only good In- aware of the discriminatory na- racism are baseless. EDITORIAL SUPPORT (313) 446-0419; YahNica law firm Hertz Schram PC, who dian is a dead Indian.” ture of the emails and did nothing “Plaintiffs have alleged that Lo- Crawford, (313) 446-0329 NEWSROOM (313) 446-0329, FAX (313) 446- claimed that the bank violated the On Aug. 2, 2010, in an email to to stop them. tus Bank — majority owned by In- 1687 TIP LINE (313) 446-6766 civil rights of her clients, Jasit Westerheide, Bauer wrote: “The Defense attorneys tried to quash dians, with a majority of directors REPORTERS Takhar and Anil Gupta. situation hasn’t changed much, the emails, but on June 18, Morris who are Indian, formed for the spe- Jay Greene, senior reporter: Covers health care, On Wednesday, Morris will hear still the interim CEO. They have ruled that the emails would be al- cific purpose of meeting the bank- insurance, energy utilities and the environment. (313) 446-0325 or [email protected] three motions about how and if the narrowed their lowed to be ing needs of the local Indian com- Amy Haimerl, entrepreneurship editor: Covers case will proceed. Attorneys for search down to two admitted into munity, and whose customer base entrepreneurship, second-stage companies and small business. (313) 446-0416 or the defendants have asked that the guys from the outside. the proceed- has a five-times higher percentage [email protected] case be dismissed and filed a sec- They never had any You have the ings. of Indians than the population of Chad Halcom: Covers litigation, higher education, “ non-automotive manufacturing, defense ond motion asking if the case does intention Morris said Troy, the city with the highest con- contracting and Oakland and Macomb counties. go to trial, that it be a bench trial of consid- right to be free the defen- centration of Indians in the state (313) 446-6796 or [email protected] with no jury. ering me dants hadn’t — is discriminating against Indi- Tom Henderson: Covers banking, finance, of technology and biotechnology. (313) 446-0337 or The third motion is by Thom- for the job shown that ans,” it said. [email protected] son, seeking to have the case be on a per- the emails “Plaintiffs would have the court Kirk Pinho: Covers real estate and the city of discrimination. Detroit. (313) 446-0412 or [email protected] given class-action status because manent were ob- believe that Lotus Bank is a serpent Bill Shea, enterprise editor: Covers media, advertising and marketing, the business of sports, of the nature of the emails, which basis, al- If you’re not, tained illegal- eating its own tail, rather than a and transportation. (313) 446-1626 or were exchanged in 2010 and 2011 though ly “and have profit-making venture pursuing its [email protected] Nathan Skid, multimedia editor: Also covers the and came to light in March 2012. none of how much is not estab- business plan.” food industry and entertainment. (313) 446-1654, Royal Oak-based law firm them has lished that Seven of Lotus Bank’s 10 board [email protected] Dustin Walsh: Covers the business of law, auto Howard & Howard Attorneys PLLC the balls to that worth? there was a members are of Indian descent, and suppliers and steel. (313) 446-6042 or represents the bank holding com- tell me that (do Indi- ” reasonable the bank claims that 30 percent of [email protected] Sherri Welch: Covers nonprofits, services, retail pany and its subsidiary, Lotus ans have balls?).” Elizabeth Thomson, Hertz Schram expectation of the bank’s loans are to Indians. and hospitality. (313) 446-1694 or Bank. Birmingham law firm In September 2010, privacy as to “Were it not for the clandestine [email protected] LANSING BUREAU Brooks Wilkins Sharkey & Turco PLLC Searle, who had been the subject delivery from an anonymous party Chris Gautz: Covers business issues at the Capitol represents Searle, Bauer and West- CEO of the Bank of Auburn Hills, was emails from internal or external of a set of very unfortunate, per- and utilities. (517) 403-4403 or [email protected] erheide. hired as president and CEO at Lo- communications or that they were sonal emails sent by two of Lotus ADVERTISING Through their Jackson-based tus. Exhibit 2 finishes with several unavailable to other employees or Bank’s executives several years SALES INQUIRIES (313) 446-6052; FAX (313) firm, Four Pointe Investments LLC, emails from him. persons.” ago, plaintiffs would not have filed 393-0997 Takhar and Gupta got a mortgage On Feb. 10, 2011, Searle was “My clients got an envelope in this suit in the first place,” the mo- SALES MANAGER Tammy Rokowski SENIOR ACCOUNT EXECUTIVE: Matthew J. of nearly $1.5 million from Lotus forwarded an email that Lotus the mail, anonymously. It had tion said. Langan in 2008 to buy a Travelodge motel in Bancorp Chairman Jitendra Patel hard copies of the emails and no “Through the distorting prism ADVERTISING SALES Christine Galasso, Jeff Jackson but later had trouble mak- had sent to someone complaining return address. We don’t know of these emails, otherwise proper Lasser, Dale Smolinski, Sarah Stachowicz CLASSIFIED SALES Angela Schutte, manager, ing payments on time. that Searle wouldn’t return phone who sent them,” Thomson said. enforcement of a commercial loan (313)-446-6051 The lawsuit doesn’t specify an calls and that he was disappointed has been twisted to appear dis- GENERAL MANAGER/BUSINESS DEVELOPMENT amount the plaintiffs are seeking. by the bank’s performance under criminatory and hostile. … Lotus AND EVENTS Elizabeth Buscher Trouble with a loan DIRECTOR, INTEGRATED MARKETING Eric Cedo Thomson said they had expenses the new CEO. Searle responded to Bank and its officers enforced the SALES PROMOTION MANAGER Karin Pitrone related to their negotiations with the person who had forwarded it According to the lawsuit, in the bank’s loans in accordance with EVENTS MANAGER Kacey Anderson the bank and with getting money on: “I don’t always return a call to spring of 2010, Takhar and Gupta the parties’ business loan agree- SENIOR PRODUCER FOR DIGITAL/ONLINE PRODUCTS Pierrette Dagg to get their loan current. their buddies with hotels or other told loan officers that their motel ment and applicable contract MARKETING ARTIST Sylvia Kolaski “Under Elliott-Larsen, you have bullshit products/services.” business was down because of the law.” SALES SUPPORT Suzanne Janik, YahNica Crawford the right to be free of discrimina- On Feb. 16, 2011, Searle sent an recession and they would likely On March 15, after the lawsuit PRODUCTION MANAGER Wendy Kobylarz tion. If you’re not, how much is email to a friend. “Do you have time have trouble making timely pay- was filed and after more copies of PRODUCTION SUPERVISOR Larry Williams that worth? That’s up to a jury to for a telephone call, lunch or beers? ments. The lawsuit alleges that the emails from Searle and Bauer CUSTOMER SERVICE MAIN NUMBER: Call (877) 824-9374 or write decide,” Thomson said. I would like to bring you up to date loan officers said they could go up began being distributed to some of [email protected] on events at Mumbai Bank.” After to 90 days behind on payments Lotus Bank’s customers, a letter SUBSCRIPTIONS $59 one year, $98 two years. Out of state, $79 one year, $138 for two years. the friend said he’d have his admin without facing foreclosure. was mailed to bank customers from Outside U.S.A., add $48 per year to out-of-state Troubling text set something up, Searle responded: In September, Takhar and Gup- Krishna Malempati, chairman of rate for surface mail. Call (313) 446-0450 or (877) 824-9374. Thomson said the emails show a “Sounds good. And I’m changing ta told their loan officers that busi- Lotus Bank; Vinaya Gavini, the SINGLE COPIES: (877) 824-9374 disregard by Lotus management to the name to Bank United Mumbai. ness had got worse, and that the bank’s vice chairman; Bala Setty, REPRINTS: (800) 290-5460, ext. 125; (717) 505-9701, ext. 125; or lindsay.wilson Indians in general, not just to her BUM for short.” U.S. Small Business Administration, chairman of the holding company; @theygsgroup.com two clients, and that she wants the When asked why Searle and which held the second loan on the and Murali Guthikonda, vice chair- TO FIND A DATE A STORY WAS PUBLISHED: class action to be certified so she can Bauer weren’t terminated when motel, was likely going to offer for- man of the holding company. (313) 446-0406 or e-mail [email protected] CRAIN’S DETROIT BUSINESS IS PUBLISHED BY pursue other examples of discrimi- the emails came to light, Jitendra bearance. They asked if Lotus It said, in part: “About two years CRAIN COMMUNICATIONS INC. natory banking practices at Lotus. Patel, one of the founding in- would provide a six-month defer- ago, it came to the board’s attention CHAIRMAN Keith E. Crain Exhibit 2, filed by Thomson in vestors of the bank and the former ral of all principal and interest that some of our management had PRESIDENT Rance Crain TREASURER Mary Kay Crain July to go along with her original chairman of its holding company, payments. made racially insensitive remarks Executive Vice President/Operations brief, included copies of several said that they were good bankers The lawsuit claims that a loan via email. … We were deeply trou- William A. Morrow Executive Vice President/Director of Strategic emails. who had done something stupid officer said Lotus would agree to a bled, and took immediate action Operations Chris Crain On May 24, 2010, Bauer sent and deserved a second chance. forbearance if the SBA did, too. with the employees involved. The Vice President/Production & Manufacturing Dave Kamis an email to Westerheide, who was “They went through sensitivity In February 2011, Takhar and employees apologized for their lack Vice President/Chief Information Officer then still at the Private Bank in training. We disciplined them. We Gupta got the SBA forbearance, of sensitivity to the board both ver- Paul Dalpiaz Vice President/Chief Human Resources Officer Bloomfield Hills, referring to the cut their pay,” he said. “People say but they couldn’t get Lotus to go bally and in writing. They were con- Margee Kaczmarek board and any decision about stuff they don’t mean all the time. along. In August, 75 days after trite over their careless and insensi- G.D. Crain Jr. Founder (1885-1973) Westerheide being hired at Lotus: People make mistakes. I hired both their last mortgage payment to Lo- tive comments. Mrs. G.D. Crain Jr. Chairman (1911-1996) EDITORIAL & BUSINESS OFFICES: “Have any of the chimps from Lo- of them, and they are good people. tus, the two met with Searle to “We are sending this letter to 1155 Gratiot Ave., Detroit MI 48207-2732; (313) 446-6000 tus called you?” Lotus ranks No. 14 on the list of seek the deferral. you because we have been made Cable address: TWX 248-221-5122 AUTNEW DET On June 19, 2010, someone best banks, we are a five-star bank, The lawsuit claims Searle told aware that some of the emails ref- CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is sent Bauer an email offering free and it’s because of these people.” them there was no chance of a defer- erenced above may have been dis- published weekly, except for a special issue the third week of August, and no issue the third week of tickets to a concert by an Indian In June, the American Banking As- ral and they had to make their pay- tributed within the community. December by Crain Communications Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. Periodicals singer if he wanted some for his sociation’s ABA Banking Journal ments current or force foreclosure. The board wishes to assure you postage paid at Detroit, MI and additional mailing customers. “I don’t know how ranked Lotus No. 14 of more than The brief quotes Searle as say- that the management is fully sup- offices. POSTMASTER: Send address changes to CRAIN’S DETROIT BUSINESS, Circulation many, but probably at least four if 1,200 banks in the U.S. with assets ing, referring to others associated portive of the Indian community Department, P.O. Box 07925, Detroit, MI 48207- any of your Indian peeps are inter- of less than $100 million, based on with the bank: “I don’t care what and embraces the Indian culture.” 9732. GST # 136760444. Printed in U.S.A. Entire contents copyright 2013 by Crain ested,” the person wrote. several metrics, including return your Indian buddies told you, I Tom Henderson: (313) 446-0337, Communications Inc. All rights reserved. Bauer responded: “Only inter- on equity, noninterest income make the decisions. I know how [email protected]. Twitter: Reproduction or use of editorial content in any manner without permission is strictly prohibited. ested if someone is going to deto- growth and ratio of equity to as- you Indians operate. You like to @tomhenderson2 20130819-NEWS--0028-NAT-CCI-CD_-- 8/16/2013 5:13 PM Page 1

Page 28 CRAIN’S DETROIT BUSINESS August 19, 2013 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF AUG. 10-16

newest resident: CanvasxDe- ate its Warren location with firmed that Pontiac’s pub- troit. David Dauch about 300 employees. lic schools are in a finan- Pension staff The popup art studio will Ⅲ Daifuku Webb Holding cial emergency, leaving dis- be inside the D:hive offices Co., the collection of various trict officials seven days to at 1249 Woodward Ave., named American U.S. subsidiaries of Daifuku accept a consent agreement where it will offer painting Co. Ltd., including Farming- with the state, appoint an classes for groups and indi- Axle chairman ton Hills-based conveyor emergency manager, sub- may join One viduals as well as “free- and baggage handling sys- mit to a neutral evaluation dom” sessions, where bud- tems maker Jervis B. Webb or file for Chapter 9 bank- avid Dauch, president ding talents can rent time Co., could add nearly 50 per- ruptcy. and CEO of Detroit- in the space. cent to its revenue under a Ⅲ The Detroit Historical D based American Axle “We’re excited to be here plan to buy materials han- Society is asking the public Detroit Center in Detroit because there is a & Manufacturing Holdings dler Wynright Corp. of Elk to help create a Detroit His- Inc., was named Friday to long legacy of art apprecia- Grove, Ill., in the fourth torical Museum exhibit, “De- f they own part of the Sept. 13, featuring celebrity the additional role of chair- tion in the city, and our aim quarter this year. Terms troit Decides: Our Most Cel- building, they might as race car drivers Robbie Buhl, man. He replaces his fa- at CanvasxDetroit is to be were not disclosed. ebrated Buildings.” The I well move in, right? Pete Halsmer, Craig Capaldi ther, Richard E. Dauch, who another positive vehicle for Ⅲ Midtown’s landscape exhibit, to debut Feb. 1, will The Detroit Police and Fire and more. died Aug. 2 from complica- the city to creatively ex- is changing with, among feature three buildings that Retirement System owns 10 The party will also fea- tions of pancreatic cancer. press itself,” said founder other moves, the transfor- signify the spirit of the city percent of One Detroit Center, ture an auction of items Brandon Colvin, 29. and could soon be moving to such as tickets to an Ameri- mation of a closed 7,200- as nominated by Detroit- Colvin, himself an artist, square-foot industrial area people. Nominations that 957,000-square-foot can Idol live show and a VIP is hosting a grand opening ON THE MOVE building at 500 Woodward. weekend to the 2013 Ford building at 4130 Cass Ave. end Aug. 30 and can be on Friday, and his shop will Ⅲ The Southfield-based into Le Feria Spanish Tapas, made at the museum or at About 60 staff members EcoBoost 400 NASCAR race be open through Oct. 5. March of Dimes Michigan shared by the PFRS and the Nov. 13 at Homestead Miami an art studio and an un- Detroithistorical.org. Chapter named Kelly Lemon- leased storefront. Ⅲ Detroit General Retirement Speedway, said Sandy The $1.3 billion Samborski state director. Ⅲ The Detroit Lions were Franklin Resources Inc. port- System may have new of- Hudson, chief development Amtrak offers quieter ride She spent more than six the only team in the 32-team folio, the biggest Michigan- fices in 25,000 square feet of officer for Henry Ford Hey, you — quiet in back! years as regional vice pres- National Football League to focused municipal-bond space by the fall if a letter of Health System. Amtrak plans to offer the ident for the Grand Rapids- post an operating loss last fund, lost 5 percent of its as- intent requested by the pen- On Sept. 14, ticketholders chance for a quieter ride on based American Heart Associ- year, according to estimates sets to net withdrawals last sion funds’ board Thursday will be shuttled to Ford’s trains running between ation-Southwestern Michigan. from Forbes.com. Forbes es- month as Detroit sank into receives board approval. test track in Dearborn to Chicago and stops in Michi- Ⅲ Detroit-based Vanguard timated the Lions are worth bankruptcy, according to The staff now occupies participate in a ride-and- gan cities. Community Development $900 million, up over last Morningstar Inc. about 17,000 square feet on drive of Ford models, rides The quiet car service Corp. appointed Khalilah year’s $855 million. Ⅲ Wei Lu, a University of the ninth floor of the Cole- with the celebrity drivers starts today on Wolverine Burt Gaston, 37, as executive Ⅲ Bloomfield Hills-based Michigan associate profes- man A. Young Municipal Cen- and Ford F-150 drag racing, Service trains, which offer director. Gaston, who Taubman Centers Inc. and San sor of electrical engineer- ter at 2 Woodward Ave., di- Hudson said. several stops a day in Ann joined Vanguard in 2012 as Francisco-based CoastWood ing and computer science, rectly across Larned Street Tickets are $250 for the Arbor, Detroit and Pontiac, deputy director, had been Capital Group LLC will work won a contract of up to $5.7 from One Detroit Center. party, $1,000 for the driving according to an Associated interim executive director on a $400 million redevelop- million from the Defense The current space is too experience or $1,750 for two Press report. Quiet car pas- since March. ment of the International Advanced Research Projects small, and a chiller that pro- tickets to attend both sengers are asked to refrain Ⅲ Ann Arbor database Market Place in Honolulu. Agency for leading a project events. For information, from engaging in loud con- software company ProQuest vides cooling for air condi- to build computer hard- visit Henryfordgiving.com. versation or using cell- LLC named Jonathan Collins, tioning units for the funds’ ware to process images and phones or noisy computer 34, as CFO. He had been in- office would be too costly to OTHER NEWS video 1,000 times faster repair or replace, said Bruce programs. terim CFO since April. Art studio new in D:hive Ⅲ A Consumers Energy Co. than current systems. Babiarz, a spokesman for the Seating is on a first-come, Ⅲ Bloomfield Hills-based gas main failure that trig- Ⅲ A divided Michigan PFRS. D:hive Detroit’s incubator first-served basis on week- Cranbrook Educational Com- gered a deadly explosion in appeals court ruled that the Exclusive Realty is repre- program, Pilot, chose its days. munity named Sarah Turner, Wayne was due to external state’s right-to-work law senting the pension funds 42, dean of its Academy of forces brought by construc- applies to 35,000 unionized in the lease negotiations, Art. Turner was associate ‘FOUNTAIN PLAY’ WINS WEEK 6 OF PHOTO CONTEST tion in the area, while a state employees, the AP re- Babiarz said. director since 2012. Chandra Marsden’s similar Royal Oak gas line ported. The court issued a photo “Fountain Play” explosion appears to be a 2-1 opinion rejecting a law- Fast-track fundraising is the Week 6 winner of COMPANY NEWS result of the company’s suit filed by labor unions the Crain’s Summer in Ⅲ work, the Michigan Public challenging the law. Nothing supports vascu- the City photo contest. Van Buren Township- Ⅲ East Lansing-based based Visteon Corp. agreed to Service Commission found. lar health like a white- Marsden, who lives in Michigan Consumers for sell its 50 percent stake in Ⅲ U.S. Bankruptcy Judge knuckle drive around Ford Midtown and works as Healthcare, Dearborn-based Yanfeng Visteon Automotive Steven Rhodes, handling De- Motor Co.’s test track in a nurse at the Detroit Arab Community Center for Trim Systems, a joint venture troit’s Chapter 9 bankruptcy Dearborn. Medical Center’s Economic & Social Services, with Huayu Automotive Sys- case, appointed Detroit chief Ticketholders will get to Harper University Hospital, captured the image on the Detroit Detroit-based American Indi- RiverWalk. “I love these simple beautiful moments in the tems Co., and other assets to federal judge Gerald Rosen as do just that as part of Henry an Health and Family Ser- city,” said Marsden, 31. the Chinese partner for $1.25 a mediator in the case. Ford Health System and vices of Southeastern Michi- Pierrette Dagg, Crain’s senior producer for digital/online billion to focus on its auto- Ⅲ Mayor Dave Bing issued Ford’s third annual Get Your gan and Linden-based products, said the photo “feels beautiful and isolated, like motive climate-control and an Aug. 27 deadline to Detroit Heart Racing fundraiser ben- Community Bridges Manage- the city.” electronics businesses. Bulk Storage for the removal efiting the Edith and Benson ment Inc. will share $2.5 Marsden wins two Serta gel memory foam pillows. She is Ⅲ The Michigan Gaming of all petroleum coke from Ford Heart & Vascular million in federal funds to also eligible for one of two grand prizes to be awarded after Control Board voted to re- the Detroit riverfront on the Institute. help people sign up for in- Labor Day, when the contest ends. This week’s prize: a gift new licenses for each of De- city’s southwest side. The two-day event starts surance under new health certificate to Dunkin’ Donuts. To enter the contest or to see troit’s three casinos. Sepa- Ⅲ Oakland County cancer off with a “Pit Party” at care law, the AP reported. photos, go to crainsdetroit.com/photocontest. Entries are rately, the board’s specialist Farid Fata, accused due by noon Monday. Ⅲ Donations to the non- Eastern Market’s Shed 3 on executive director, Rick of intentionally misdiagnos- New Energy to Rein- Kalm, reported that revenue ing patients, must post a $9 profit for the casinos declined in million bond if he wants to vent and Diversify Fund, June but increased in July. leave jail pending trial, a known as Gov. Rick Sny- Crain’s event among first at new ballroom at Cobo Ⅲ The Suburban Collection federal judge ordered. der’s “Nerd Fund,” fell to $368,000 in 2012 from $1.3 Do you plan on joining Crain’s Detroit Other events in the ballroom next automotive retailing group Ⅲ Median home sales million in 2011, the Detroit Business for its House Party and SoundBiz month include the U.S.-Canada Border acquired the former Crest- prices in July increased by Free Press reported. Music Conference on Sept. 26? Conference (Sept. 12-13); the Detroit Region- wood Dodge Chrysler Jeep 60.4 percent in Wayne Ⅲ U.S. Rep. Dave Camp, R- If that event or one of five others in Sep- Ram dealership in Garden County, rising to $76,250 al Chamber’s MichAuto Summit (Sept. 24- Midland, said he will not tember is on your calendar, you’ll be 25); the Detroit RiverFront Conservancy’s City. The price was not dis- last month, according to Re- alcomp. That outpaced Ma- run for the U.S. Senate seat among the first to experience the new Shimmer on the River (Sept. 12); the Ameri- closed. The renamed Subur- comb County, up by 42.1 opening up with the retire- 40,000-square-foot Grand Riverview Ball- can Cancer Society’s Detroit Cattle Baron’s ban Chrysler Dodge Jeep Ram percent, and Oakland ment of Michigan Sen. Carl room at the former Cobo Arena. Ball (Sept. 28), and the Old Newsboys’ Good- of Garden City employs 70. Ⅲ County, up by 30.3 percent. Levin, the AP reported. Among the features in the ballroom are fellow Fund of Detroit’s Tribute Breakfast MSX International Inc. is Ⅲ Oakland University floor-to-ceiling glass that gives event atten- honoring Compuware Corp. founder Peter relocating its global head- quarters to downtown De- trustees approved nearly dees a view of the Detroit River, an open- Karmanos Jr. troit from Warren and plans $300,000 in deferred com- OBITUARIES air terrace and an 8,000-square-foot For more information on how to attend to move its executive team pensation and other bene- Ⅲ Kenneth Lewis, partner kitchen. Standing-room capacity is 5,000, the upcoming Crain’s events at Cobo, as and the ballroom can seat 3,500 people the- to space in One Detroit Cen- fits for former school Presi- at Plunkett Cooney PC in well as other events, go to ater-style or 2,500 for meal service, accord- ter during the fourth quar- dent Gary Russi. Bloomfield Hills, died of crainsdetroit.com/events. ing to Cobo’s website. ter. It will continue to oper- Ⅲ Gov. Rick Snyder con- cancer July 27. He was 63. DBpageAD_DBpageAD.qxd 8/13/2013 12:08 PM Page 1

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Screen image simulated. Offers avail. for corp-liable customers only. Activ. Fee: $36/line. Credit approval req. Early Termination Fee (sprint.com/etf): After 14 days, up to $350/line. Phone Offer: Offer ends 9/30/13. While supplies last. Taxes and svc charges excluded. No cash back. Req. activation of all same model phones on same account in one sales transaction. Data: Add’l charges apply for premium content/downloads. Includes select e-mail. Usage Limitations: Sprint may terminate service if off-network roaming usage in a month exceeds: (1) 800 min. or a majority of min.; or (2) 300 MB or a majority of KB. Prohibited network use rules apply. Engaging in such uses will not result in throttling but could result in adverse action. See sprint.com/termsandconditions. Other Terms: Offers and coverage not available everywhere or for all phones/networks. Restrictions apply. See store or sprint.com for details. CL Port-in Svc Credit: Offer ends: 9/30/13. Available online, via telesales, in participating Sprint Stores, and direct & indirect business channels. Purchases from other national retailers are not eligible for svc credit. Requires port-in from an active number (wireless or landline). Svc credit request must be made at https://www.sprintportcredit.com within 72 hours from the port-in activation date or svc credit will be declined. Must remain active with Sprint Business for 61 days to receive full svc credit. Excludes upgrades, replacements and ports made between Sprint entities or providers associated with Sprint (i.e. Virgin Mobile USA, Boost Mobile, Sprint As You Go and Assurance), telephone numbers active on Sprint within the previous 60 days, all Individual-liable plans, Seasonal Standby plans, all plans with an MRC $10 or less, Business Freedom plans, M2M plans, special Government plans, and select custom pricing plans. May not be combinable with other offers. Port-in Payment Expectations: If the svc credit does not appear on the first or second invoice following the 61st day, visit https://www.sprintportcredit.com and click on “Where’s My Service Credit”. Other Terms: Offers and coverage not available everywhere or for all phones/networks. Restrictions apply. See store or sprint.com for details. Nationwide Sprint Network reaches over 278 million people. Sprint 3G network reaches over 275 million people. ©2013 Sprint. All rights reserved. Sprint and the logo are trademarks of Sprint. Other marks are the property of their respective owners. DBpageAD_DBpageAD.qxd 8/15/2013 9:34 AM Page 1

Crain’s Detroit House Party Now with Neighborhood Tours! Thursday, Sept. 26 4 p.m. | Cobo Center, Detroit

Have you ever wondered what it would be like to live Detroit? Do you want to visit unique retail establishments and other gems in the city? Do you want to show off Detroit to friends and family?

Join us for Crain’s 8th annual House Party! Together with D:hive, we have designed six tours that highlight all that Detroit has to offer, from beautiful residential homes and unique lofts to retail establishments.

Six neighborhood tours

Midtown Bus People Mover East Side Bus

Corktown Bus Midtown Walking Lafayette Park/ Eastern Market Bus

Visit www.crainsdetroit.com/events for more information and to register for Crain’s Detroit House Party

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