Companies Struggle to Fill Jobs for Skilled Laborers

20120409-NEWS--0001-NAT-CCI-CD_-- 4/6/2012 5:48 PM Page 1

www.crainsdetroit.com Vol. 28, No. 15 APRIL 9 – 15, 2012 $2 a copy; $59 a year

©Entire contents copyright 2012 by Crain Communications Inc. All rights reserved Page 3 Ballot drive Commercial real estate Companies struggle to fill claws back from recession ruling on EM Focus: Law jobs for skilled laborers law key to General and In-House Counsel Awards, Page 11 Shortage expected to increase over 5 years city’s action CRAIN’S BY DUSTIN WALSH collapse three years ago. tive vice president and general CRAIN’S DETROIT BUSINESS As many as 600,000 skilled la- manager. Ability to impose MICHIGAN BUSINESS borer positions remain unfilled Richard Tool and Die isn’t Rising automotive sales and for U.S. manufacturers, according alone. According to a November wages in low-cost countries mean to a fall survey by Deloitte LLP and survey by Troy-based Original contracts in play Finding bright spots one thing: increased manufactur- The Manufacturing Institute. The Equipment Supplies Association, 57 BY NANCY KAFFER ing in Southeast Michigan. Tool survey revealed that 67 percent of percent of automotive suppliers in embattled solar CRAIN’S DETROIT BUSINESS and die makers and machine respondents had a moderate to se- are having difficulty finding industry, Page 21 shops are busy again, but that vere shortage of skilled laborers. skilled laborers. That’s up from 35 Until the fate of a petition aimed growth comes with a cost, and it’s New Hudson-based Richard Tool percent in 2010. at repealing the state’s emergency spelled “Help Wanted.” and Die Corp. needs as many as 20 Mark Tomlinson, executive di- manager law is decided, Detroit’s World Watch: Manufacturers are scrambling skilled laborers at its New Hud- rector of Dearborn-based Society labor unions have no incentive to Spotlight on to find skilled laborers in an in- son and Belleville plants, but it is of Manufacturing Engineers, called come to the table to negotiate the dustry of advancing technology coming up short. the skilled labor shortage in the steeper labor contract cuts, includ- Michigan biz following years of massive job “Business is up, and we need to U.S. manufacturing sectors “on- ing changes to union work rules, cuts — from outsourcing early in hire, but we just can’t find good pensions and benefits, that offi- in Germany, Page 25 the millennium and the industry people,” said Steven Rowe, execu- See Skilled, Page 35 cials say are necessary to keep De- troit solvent. If the petition This Just In is certified for the November $100K biz plan competition ballot, Public Why is state Act 4 — and the for female entrepreneurs power it grants Women entrepreneurs can Detroit Mayor compete for up to $100,000 in Dave Bing to im- cash awards and in-kind sup- the hot bet pose contracts port in the new Entrepre- on unions whose neur-You Business Plan Com- contracts have Bing petition, sponsored by the expired — would be suspended. Michigan Women’s Foundation. for more casinos? That ability is a key provision of The competition is open to the consent agreement signed last all industries and levels of week by the city and the state that entrepreneurship. There are Private investor me-tooism, some say is intended to help the city avoid three categories: profession- appointment of an emergency al/company, collegiate, and BY MIKE TURNER manager or a Chapter 9 bankrupt- high school. Applicants can CRAIN’S DETROIT BUSINESS cy filing. describe a business they cur- Opponents of Public Act 4 filed a LANSING — In the nearly 30 years since the casi- rently run or pitch an idea petition in February to place a re- no industry began to form in Michigan, 25 gaming they think deserves startup peal on the ballot in November. Or- establishments have cropped up throughout the funding. ganizers of the petition drive gath- state. The deadline for the pro- ered 225,885 signatures; 161,305 are Today, plans for nearly that same number of casi- fessional/company category required. The deadline for certifi- nos are in some stage of development, prompting in- is April 26, and the deadline cation of signatures on the petition dustry observers to ask: Why the for the high school and colle- is April 29. But most union con- sudden surge in casino proposals? giate categories is May 4. tracts don’t expire until June 30. DETAILS The latest development came last The award money comes That means Public Act 4 could week, when the state Board of Can- from Huntington Bank, and Closer be off the table before Bing ever vassers OK’d language for a petition winners will also get entre- look at gets the chance to use those pow- casino plans, drive that would allow eight more preneurial coaching from ers. Page 37 commercial casinos statewide. the foundation. Gov. Rick Snyder has said that “I haven’t a clue why now,” said The idea for the competi- union agreements negotiated by James Hill, a political science professor at Central Matthew Fletcher, a professor at the Michigan tion came from the Entrepre- Bing’s team earlier this year don’t Michigan University who has studied the impact casi- State University College of Law and director of the In- neur-You conference, a yearly have enough cuts, and municipal nos have on communities. digenous Law and Policy Center, said there’s substance summit for businesswomen finance experts say altering union “Maybe because Virg Bernero got everyone to Hill’s theory. organized by Walsh College, contracts is a necessary part of bal- pumped up,” Hill quipped, referring to the Lansing The push by the Sault and other Michigan tribes the Michigan Women’s Founda- ancing the city’s budget, given mayor’s support for a casino to be run by the Sault to open off-reservation casinos has likely drawn the tion, Inforum and Huntington union leaders’ expressed lack of in- Ste. Marie Tribe of Chippewa Indians in downtown interest of private investors who sense an opportu- Bank. More information is terest in returning to the negotiat- available at miwf.org. Lansing. The proposal, also backed by the Lansing City Council, requires federal approval. See Casinos, Page 37 See City, Page 34 NEWSPAPER 20120409-NEWS--0001-NAT-CCI-CD_-- 4/6/2012 6:01 PM Page 1

CRAIN’S MICHIGAN BUSINESS A special edition of

® Cwww.crainsdetroit.comRAIN Vol. 28, No. 15 ’SDETROITAPRIL 2012 BUSINESS$2 a copy; $59 a year ©Entire contents copyright 2012 by Crain Communications Inc. All rights reserved Inside Michigan Ballot drive Finding bright spots Companies struggle to fill in embattled solar industry, Page 21 ruling on EM jobs for skilled laborers law key to Shortage expected to increase over 5 years city’s action BY DUSTIN WALSH collapse three years ago. tive vice president and general CRAIN’S DETROIT BUSINESS As many as 600,000 skilled la- manager. borer positions remain unfilled Richard Tool and Die isn’t Ability to impose Rising automotive sales and for U.S. manufacturers, according alone. According to a November wages in low-cost countries mean to a fall survey by Deloitte LLP and survey by Troy-based Original contracts in play Making the Grand River one thing: increased manufactur- The Manufacturing Institute. The Equipment Supplies Association, 57 BY NANCY KAFFER ing in Southeast Michigan. Tool survey revealed that 67 percent of percent of automotive suppliers more rapid, Page 24 and die makers and machine respondents had a moderate to se- are having difficulty finding CRAIN’S DETROIT BUSINESS shops are busy again, but that vere shortage of skilled laborers. skilled laborers. That’s up from 35 Until the fate of a petition aimed World Watch: growth comes with a cost, and it’s New Hudson-based Richard Tool percent in 2010. at repealing the state’s emergency spelled “Help Wanted.” and Die Corp. needs as many as 20 Mark Tomlinson, executive di- manager law is decided, Detroit’s Spotlight on Manufacturers are scrambling skilled laborers at its New Hud- rector of Dearborn-based Society labor unions have no incentive to to find skilled laborers in an in- son and Belleville plants, but it is of Manufacturing Engineers, called come to the table to negotiate the Michigan biz dustry of advancing technology coming up short. the skilled labor shortage in the steeper labor contract cuts, includ- in Germany, Page 25 following years of massive job “Business is up, and we need to U.S. manufacturing sectors “on- ing changes to union work rules, cuts — from outsourcing early in hire, but we just can’t find good pensions and benefits, that offi- the millennium and the industry people,” said Steven Rowe, execu- See Skilled, Page 35 cials say are necessary to keep De- troit solvent. This Just In If the petition is certified for the November $100K biz plan competition ballot, Public for female entrepreneurs Why is state Act 4 — and the power it grants Women entrepreneurs can Detroit Mayor compete for up to $100,000 in Dave Bing to im- cash awards and in-kind sup- the hot bet pose contracts port in the new Entrepre- on unions whose neur-You Business Plan Com- contracts have Bing petition, sponsored by the expired — would be suspended. Michigan Women’s Foundation. for more casinos? That ability is a key provision of The competition is open to the consent agreement signed last all industries and levels of week by the city and the state that entrepreneurship. There are Private investor me-tooism, some say is intended to help the city avoid three categories: profession- appointment of an emergency al/company, collegiate, and BY MIKE TURNER manager or a Chapter 9 bankrupt- high school. Applicants can CRAIN’S DETROIT BUSINESS cy filing. describe a business they cur- Opponents of Public Act 4 filed a rently run or pitch an idea LANSING — In the nearly 30 years since the casi- petition in February to place a re- they think deserves startup no industry began to form in Michigan, 25 gaming peal on the ballot in November. Or- funding. establishments have cropped up throughout the ganizers of the petition drive gath- The deadline for the prostate. ered 225,885 signatures; 161,305 are fessional/company category Today, plans for nearly that same number of casi- required. The deadline for certifi- is April 26, and the deadline nos are in some stage of development, prompting in- cation of signatures on the petition for the high school and colle- dustry observers to ask: Why the is April 29. But most union con- giate categories is May 4. sudden surge in casino proposals? tracts don’t expire until June 30. The award money comes DETAILS The latest development came last That means Public Act 4 could from Huntington Bank, and week, when the state Board of Can- Closer be off the table before Bing ever winners will also get entre- vassers OK’d language for a petition look at gets the chance to use those pow- preneurial coaching from casino plans, drive that would allow eight more ers. the foundation. Page 37 commercial casinos statewide. Gov. Rick Snyder has said that The idea for the competi- “I haven’t a clue why now,” said union agreements negotiated by tion came from the Entrepre- James Hill, a political science professor at Central Matthew Fletcher, a professor at the Michigan Bing’s team earlier this year don’t neur-You conference, a yearly Michigan University who has studied the impact casi- State University College of Law and director of the In- have enough cuts, and municipal summit for businesswomen nos have on communities. digenous Law and Policy Center, said there’s substance finance experts say altering union organized by Walsh College, “Maybe because Virg Bernero got everyone to Hill’s theory. contracts is a necessary part of bal- the Michigan Women’s Founda- pumped up,” Hill quipped, referring to the Lansing The push by the Sault and other Michigan tribes ancing the city’s budget, given tion, Inforum and Huntington mayor’s support for a casino to be run by the Sault to open off-reservation casinos has likely drawn the union leaders’ expressed lack of in- Bank. More information is Ste. Marie Tribe of Chippewa Indians in downtown interest of private investors who sense an opportu- terest in returning to the negotiat- available at miwf.org. Lansing. The proposal, also backed by the Lansing City Council, requires federal approval. See Casinos, Page 37 See City, Page 34 1 NEWSPAPER 71486 02858 0 20120409-NEWS--0002-NAT-CCI-CD_-- 4/6/2012 4:46 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS April 9, 2012

MICHIGAN BRIEFS Message to GR chamber: Get Find business news from around the state at crainsdetroit biz on board to reduce deficit Talk about March Madness: Golf season starts strong .com/crainsmichiganbusiness. The day of reckoning will be Sign up for Crain's Michigan upon us soon if we don’t address the Traditionally, golf courses in Michigan don’t open first quarter they’ve ever had.” Business e-newsletter at crains federal budget deficit, and it’s up to until mid-April, or even as late as May for resort Up north, Crystal Mountain Resort & Spa in Thomp- detroit.com/emailsignup. business leaders to push Congress. courses up north. But this wasn’t a traditional March. sonville, south of Traverse City, opened nine holes That was the dour instruction deliv- Numbers for last month won’t be available for on its Betsie Valley course March 16 — the earliest CORRECTIONS ered to West Michigan business months, but Golf Datatech, a golf industry research start ever, said Director of Golf Brad Dean. leaders last week by former U.S. firm based in Kissimmee, Fla., reports that rounds “A lot of properties came back from various golf A Rumblings item on Page 26 Comptroller David Walker at an in Michigan are up 832.5 percent through February. shows with nice (booking) reports,” said Paul of the April 2 issue incorrectly event sponsored by the Grand Rapids Consider this: Last year, the eight regulation Beachnau, executive director of the Gaylord Area Con- listed the Detroit Historical Muse- Area Chamber of Commerce. Metropark courses of the Huron-Clinton Metropolitan vention and Visitors Bureau. um and U.S. Trust, Bank of America Among those offering support: Authority in Southeast Michigan recorded zero “I honestly think our state is feeling better as a Private Wealth Management as Mike Jandernoa, a director on the rounds in March. Last month: 8,020 rounds. whole. … All those types of things affect people’s out- among the cash sponsors sup- board of Allegan-based Perrigo Co. “With the early spring arrival, buzz is definitely look and buying power and ability to spend money and porting the continued operation who also serves on Business Leaders the word” to describe the 2012 outlook,” said Kate travel. The Pure Michigan campaign has guaranteed of the Detroit Shoppe at Cobo Cen- Moore, executive director of the Lansing-based funding. That is starting to pay a reward. We are see- for Michigan. From a business ter. While the U.S. Trust and the Michigan Golf Course Owners Association. “Many own- ing longer stays. It all seems to be rolling together.” standpoint, Jandernoa said, the museum were among the cash ers I’ve talked to, they have experienced the best — Jason Deegan first step in tackling the deficit is and in-kind sponsors, respective- for company leaders to educate ly, of the first Detroit Shoppe at groups inside and outside their or- Hospital closes after sale falters McLaren spokesman Kevin The Associated Press that fewer the Somerset Collection, Quicken Tompkins told The Associated than 375 U.S. jobs would be cut. Loans Inc. has provided addition- ganizations. The sooner business After a proposed sale to Flint- Press that the health system plans al sponsorship dollars of undis- and government can address these based McLaren Health Care Corp. to work with area doctors to pre- closed amount to continue opera- entitlement issues, he said, the less was blocked April 2, Cheboygan drastic the changes will need to be. serve health services in the region. MICH-CELLANEOUS tion of the Detroit Shoppe at Memorial Hospital said it had no oth- Cobo Center with Somerset Col- “If we get after that soon and er choice than to close the next Mary Lee Flohe, former presi- lection owner The Forbes Co. elect politicians who understand day. Cheboygan Memorial is the Dow cuts costs, 900 jobs globally dent of the Society of St. Vincent De A news brief on Page 18 in to- the problems and understand solu- largest employer in Cheboygan Citing the faltering economy in Paul chapter in Traverse City, was day’s edition should say South- tions, they’ll be less disruptive on County, with a staff of about 400. Europe, Midland-based Dow Chemi- charged with nine counts of felony field-based Park West Galleries Inc. the small businesses, which are so On March 1, Cheboygan Memor- cal Co. last week cut 900 positions embezzlement from a nonprofit. has settled or dismissed more critically important,” he said. “It’s ial said it was filing for Chapter 11 and closed plants in Europe, North Prosecutors say she embezzled than 25 court claims from buyers a kind of fragile economy today. To bankruptcy protection after losing America and Latin America, in a funds from 2007 through 2010. stabilize that, we need to eliminate more than $7 million last year. A move to cut about $250 million. Baltimore-based Sinclair Broad- of artwork the dealer sells this uncertainty that’s overhang- federal judge had approved the Dow spokeswoman Rebecca Bent- cast Group completed the purchase aboard cruise ships. The dealer ing the entire country. When we sale to McLaren. But Cheboygan ley said the positions to be eliminat- of television stations WWMT in had resolved 31 claims, but after take that away, it will enable com- said it couldn’t get federal ap- ed equal about 1.7 percent of Dow’s Kalamazoo and WLAJ in Lansing as that page went to the printer, a panies to grow a lot of faster and proval for its emergency services 52,000 employees. Whether any jobs part of an eight-station purchase new ruling came from the Michi- with a lot less risk.” and outpatient surgery area to will be lost in Midland is yet to be from Irvine, Calif.-based Freedom gan Court of Appeals that could — From MiBiz continue operating in time. determined, Bentley said. She told Communications Inc. partly reinstate a few of them.

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April 9, 2012 CRAIN’S DETROIT BUSINESS Page 3 Real estate comes in from the ledge Health Care Extra calculated by subtracting the Recession’s pull on commercial market eases amount of space vacated from the amount of space leased. BY DANIEL DUGGAN nation smaller incubator compa- tional. The Southfield office of CBRE CRAIN’S DETROIT BUSINESS nies — such as “We lost a lot of companies in Group Inc. shows positive absorp- medical and the recession,” he said. “And the tion of 390,000 square feet for the Metro Detroit’s commercial real quarter, but it has shown positive technology ones that are left are now getting estate market finished one of the numbers throughout 2011. CBRE firms — as well all of the work that’s out there. So strongest quarters in recent histo- only tracks buildings over 20,000 as expansions for those companies, they’re feel- ry and is starting to erase some of square feet, so its numbers differ by the compa- the recession-era damage. ing confident that they can finally from Grubb & Ellis. nies that have Commercial real estate firms expand.” The positive moves are a drop in survived the re- are reporting growth for the mar- A report by the Southfield office the bucket, however. cession, said Medical group forms without ket, after it lost more than 4.5 mil- of Grubb & Ellis shows 150,000 From the beginning of 2008 to Randall Book, lion square feet of occupied office square feet of positive absorption, the end of March, there has been a hospital affiliation, Page 27 space since 2008 as companies executive vice Book reversing a trend of negative ab- total of 4.6 million square feet of closed and payrolls shrank. president in the sorption since 2008. Absorption is Driving the growth is a combi- Southfield office of Colliers Interna- a metric to gauge real estate usage, See Real estate, Page 35 Company index These companies have significant mention in this week’s Crain’s Detroit Business: 1-800-Law-Firm ...... 34 21st Century Oncology of Michigan ...... 27 Arboretum Ventures ...... 7 Art Van Furniture ...... 16 Atlas Tool ...... 35 Sharing Auto Club Group ...... 17 Belfor Holdings ...... 25 BorgWarner ...... 25 CBRE Group ...... 3 Chrysler Group ...... 13, 25, 35 Clark Hill ...... 11 the table Colliers International ...... 3 Con-way ...... 25 Detroit Historical Museum ...... 3 Dickinson Wright ...... 11 Charities hash out Diplomat Specialty Pharmacy ...... 15 Dossin Great Lakes Museum ...... 3 Dow Chemical ...... 2, 25 accord to collect, Dow Corning ...... 25 DTE Energy ...... 11 distribute food Esperion Therapeutics ...... 7 Flagstar Bank ...... 35 Ford Motor Co...... 25 Y HERRI ELCH B S W Forgotten Harvest ...... 3 CRAIN’S DETROIT BUSINESS General Motors ...... 25 Germack Pistachio ...... 33 Forgotten Harvest and Gleaners Gleaners Community Food Bank of SE Michigan . . . 3 Community Food Bank of Southeast- Grand Rapids Whitewater ...... 24 ern Michigan are negotiating a new Grubb & Ellis ...... 3 local service agreement to coordi- Hemlock Semiconductor Group ...... 21 nate their food collection and dis- Henry Ford Community College ...... 35 Henry Ford Health System ...... 29, 30 tribution efforts. Honigman Miller Schwartz and Cohn ...... 11 The triennial agreement — re- Huntington National Bank ...... 6 quired by the Kelly Services ...... 25 organizations’ Lear ...... 25 NEXT COURSES national asso- Macomb Community College ...... 35 GLENN TRIEST McLaren Macomb Hospital ...... 29 Forgotten ciation, Chica- Robert Bury, executive director of the Detroit Historical Society, says improvements to the society’s Detroit Historical Michigan Healthcare Professionals ...... 27 Harvest starts job go-based Feed- Museum in Midtown and Dossin Great Lakes Museum on Belle Isle can be part of the city’s rebirth. Michigan Women’s Foundation ...... 1 training, mulls ing America, Midland Solar Applications ...... 21 warehouse, for members Millennium Medical Group ...... 27 Page 36 serving the Miller Canfield Paddock and Stone ...... 11 NTH Consultants ...... 24 same counties Oakland Medical Group ...... 27 — has taken on new importance as Giving history modern touches Oakwood Healthcare ...... 30 the two pursue donations from Original Equipment Suppliers Association ...... 1 some of the same sources in their Panasonic Automotive Systems Co. of America . . . 35 push to collect and distribute as Park West Galleries ...... 18 Penske Automotive Group ...... 25 much food as possible. Museums will idle to upgrade, grow collections Perrigo ...... 2 The terms of the existing 2009 Pet Supplies Plus ...... 35 agreement are unknown because BY SHERRI WELCH Plans also call for digitizing the Pioneer Automotive Technologies ...... 12 the nonprofits wouldn’t provide it, CRAIN’S DETROIT BUSINESS museums’ collections to make Plante Moran Financial Advisors ...... 28 but the new three-year agreement them available to a larger audi- Plunkett Cooney ...... 18, 27 The Detroit Historical Society Providence Hospital ...... 29 will deal with such matters as how ence online. plans to close the Detroit Historical Richard Tool and Die ...... 1 to deal with overlapping food The ship plans and models at Museum in May and the Dossin Rogers Mantese & Associates ...... 27 donors, coordinate media out- Dossin are one of the largest col- Soave Enterprises ...... 14 Great Lakes Museum in December reach and communication, and al- lections in the Midwest, Bury Society of Manufacturing Engineers ...... 1 to focus on millions of dollars locate funds and food provided by said. Syntel ...... 25 worth of new exhibit installations Feeding America for their shared “There’s a lot of interest to Talmer Bank ...... 6 and renova- Taubman Centers ...... 12 service area. have access to those,” he said. tions. TriMas ...... 12 The agencies began preliminary Major work begins this year on the Funding the work is a five- OLD BUSINESS Plans call Trubiquity ...... 25 conversations on a new agreement Detroit Historical Museum and Dossin year, $21 million capital cam- TRW Automotive Holdings ...... 25 for the histori- in November. They plan to resume Exhibit calls Great Lakes Museum. paign launched by the society 2½ Valassis Communications ...... 25 cal museum to following Feeding America’s na- for area’s long- years ago. The society has raised lived companies, close May 24 collections, said society Execu- tional conference, coming to the about $13 million, with a goal to Department index Page 36 and return tive Director Robert Bury. Detroit Marriott Renaissance raise the remainder by June 2014, Nov. 23, and “We are in two of the most prime BANKRUPTCIES ...... 34 Center from April 17-20, and they Bury said. the Belle Isle museum to reopen destinations in the city: Midtown hope to have a new agreement in Early gifts to the campaign BUSINESS DIARY ...... 26 next spring. and Belle Isle,” he said. “We think hand by mid-May, said Gleaners have included $800,000 from the CALENDAR ...... 31 The overarching goal is to in- we can increasingly be a destina- President DeWayne Wells. Detroit-based McGregor Fund, JOB FRONT ...... 32 crease the relevance of the muse- tion and, by doing so, be part of the CLASSIFIED ADS ...... 33 See Food, Page 36 ums and the accessibility of its rebirth and renewal of Detroit.” See Museums, Page 36 KEITH CRAIN...... 8 OPINION ...... 8 20 in their 20s Crain's Job Front OTHER VOICES...... 8, 9 See the online section, with Job seekers, employers and referrers all can benefit THIS WEEK @ PEOPLE ...... 32 profiles and photo galleries, from Crain's Job Front, powered by hiredMYway WWW.CRAINSDETROIT.COM at crainsdetroit.com/20s. .com, crainsdetroit.com/crainsjobfront. RUMBLINGS ...... 38 WEEK ON THE WEB ...... 38 20120409-NEWS--0004-NAT-CCI-CD_-- 4/6/2012 2:41 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS April 9, 2012 M1 Rail confident of getting federal OK, continues to line up financial backers

BY BILL SHEA CRAIN’S DETROIT BUSINESS Route primarily streetside The private consortium of De- troit investors trying to persuade M1 Rail’s planned streetcar other end of the car — both ends the federal government to aid it in line will run primarily along the of the vehicles will have controls building a downtown streetcar side lanes of Woodward Avenue, — when it reaches the end of the line is confident Washington will with some stretches in the center tracks. approve its plan. of the street because of the physi- “These will be more modern So confident, in fact, that the cal geography of the route, said streetcars,” Cullen said, and they group’s top executive won’t talk project CEO Matt Cullen. will be smaller than traditional about alternatives if the feds reject The city’s plan for its light-rail light-rail cars and carry a typical the plan to construct a 3.4-mile line project, which was scrapped in De- load of 60 to 70 people. Maximum between Hart Plaza and New Center cember, had been almost entirely capacity, sitting and standing, on Woodward Avenue for $125 mil- a median-running system, and would be about 180. lion. there have been years of debate on Such vehicles can cost a couple What happens if Washington which is the better alignment. of million dollars. says “no”? “With the kind of system we’re The plan is to piggyback an or- “I don’t expect that to be the looking to build, we’ve been as- der of six streetcars onto another case, so there’s no sense speculat- sured that’s the proper way to production order from another ing on that,” said Matt Cullen, go,” Cullen said. municipality, Cullen said. That’s CEO of M1 Rail, The city’s plan had been to loop a common industry practice be- a group of deep- the southern terminus of the cause a new order could other- pocket Detroit route over a couple of blocks to wise take up to several years to businessmen, include the Rosa Parks bus sta- arrive, since the pace of construc- nonprofits and tion. M1’s plan is a pure north- tion among the world’s few rail others who have south system in which the streetcar builders is slow. THE MILLER LAW FIRM been planning car driver gets up and goes to the — Bill Shea a professional corporation the rail line since 2007. Ambiguous process TIGER grant program. M1 will sub- M1 needs the city and state to mit its financial It’s never been clear what a sign off on the project because plans at the end Cullen green light or rejection from the Woodward Avenue is a state high- of the month to the U.S. Department federal government after 90 days way — hence the name M1 — that of Transportation, a process that would mean. runs through downtown Detroit. stems from skepticism about the “It’s a little ambiguous. It’s not a The group also wants the state to project’s feasibility from Washing- formal process,” Cullen said. upgrade Woodward’s surface con- ton, Lansing and Detroit Mayor The original 90-day deadline was currently with the rail construc- Dave Bing. April 6, but that was pushed back tion, Cullen said. Bing and Gov. Rick Snyder joint- to later this month by Washington ly announced in December that the because of updates and ongoing city was dropping its $528 million conversations between it and M1. Price tag Our firm specializes in litigation: light-rail plan in favor of a state- “We’re talking to everybody dai- On the capital cost side, M1 ly, literally,” he said. Washington • Complex Commercial and Business backed regional rapid-bus system backers are asked to pay $3 million that cost about the same but con- issued a progress report on M1’s for the marketing rights to a sta- • Shareholder and Partnership nects key points in the metro area. plan in March, something that was tion stop on the line. • Automotive Supplier That decision prompted an out- leaked and presented in media re- “The station sponsorship is ports as renewed skepticism. • Class Actions cry from M1 and its political pa- more meaningful to some folks trons, including U.S. Sen. Carl Cullen said the situation was than other folks,” Cullen said. • Employment Levin, and a hasty gathering of top overblown and that Washington is Already giving money is M1’s • Family Law and Probate Litigation elected officials and M1’s backers impressed so far with what M1 has leadership, made up of wealthy, in- (248) 841-2200 at Bing’s office Jan. 6. shown it. fluential Detroit advocates with millerlawpc.com 950 West University Drive, Suite 300 It was announced that day that Messages seeking comment downtown business commitments: Rochester, Michigan 48307 M1 would be given 90 days to con- were left with federal transporta- Penske Corp. founder Roger Penske, vince Washington of the merits of tion officials, who previously have chairman of the project; Peter Kar- its wish to build its portion of the declined to discuss details of the manos Jr., founder of Detroit-based line. M1 has to convince the U.S. M1 situation. Compuware Corp.; the Ilitch family, Department of Transportation, Cullen also has said it’s more of owners of the Detroit Tigers, Red along with the city and state, that an informal process that would Wings and Little Caesar Enterprises the streetcar system can be built bolster M1’s separate application Inc.; and Quicken Loans Inc./Rock Fi- for $125 million and operated for $4 for $25 million in capital funding nancial founder Dan Gilbert, the million annually. from Washington — money U.S. project’s co-chairman. M1’s project was a standalone ef- Transportation Secretary Ray La- The four have committed $3 mil- fort until being absorbed by a De- Hood said in January that the pro- lion each for the display advertis- troit Department of Transporta- ject could be eligible for. ing rights to a station along the tion project in 2009 that extended A decision on the grant is expect- route. Henry Ford Hospital and the route to Eight Mile Road. ed by the end of May, Cullen said. Wayne State University also have Cullen said the group has been The application was filed on M1’s each committed money for a sta- spending the past three months behalf March 19 by the Southeast tion. The Troy-based Kresge Foun- validating M1’s original operating Michigan Council of Governments, the dation has pledged $35 million, part and construction cost estimates. regional planning agency that acts of which already has been spent. “We intend to submit by the end as the legally required pass- The city’s Downtown Development of this month. We’re hopeful peo- through for federal transit funding. Authority has earmarked $9 million ple see it the way we do it. It’s a ter- A previous $25 million federal for M1, and another $15 million is rific project, and we should be grant for the city’s rail project has from federal New Market Tax moving forward,” he said. since been transferred to the re- Credits, which have to be re-ap- At the same time, M1 is continu- gional bus project. plied for annually. 2012 GLK350 ing to secure capital financial com- M1’s request is one of 703 appli- Annual operating costs are esti- mitments. cations totaling $10.2 billion for a mated at $4 million. Some of that 4MATIC “We feel very good about where piece of the $500 million set aside money will come from fares, ad- 30 mo./10K Lease we are in the process. We’ve made for the Transportation Investment vertising sold on the train cars, a 36600 Woodward Ave good progress on the fundraising,” Generating Economic Recovery sale of name of the entire line, and $ Bloomﬁeld Hills, MI 48304 said Cullen, who declined to dis- grants programs, the Transporta- from state legislation authorizing 4 mo. close details. tion Department said in a state- formation of a nonprofit street 248-644-8400 M1 previously said it was about ment Thursday. railway company to run the line. $22 million short of its funding Washington has awarded Bill Shea: (313) 446-1626, Plus tax, title, plates. Tier 1 credit. needs, and is now about $11 mil- $2.6 billion for 172 projects under [email protected]. Twitter: $4603 due at signing. lion from reaching it, he said. three previous rounds of the @bill_shea19 DBpageAD.qxp 4/3/2012 10:39 AM Page 1

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Page 6 CRAIN’S DETROIT BUSINESS April 9, 2012 Huntington CEO backs pro-Michigan talk with Fidelity deal

BY TOM HENDERSON country. … Companies are moving assets of the troubled Dearborn cording to the Federal Deposit Insur- uary 2011. CRAIN’S DETROIT BUSINESS into the Midwest, and while large Bancorp Inc. The deal was an- ance Corp. The acquisition made the 180 parts of the rest nounced March 30 after the hold- “This is another demonstration employees at the long-struggling Stephen Steinour, chairman, of the country’s ing company for Fidelity Bank was of the exciting opportunities for us Fidelity temporary employees of president and CEO of Columbus, economy are shut down by state and federal in Michigan,” said Mike Fezzey, Boston-based SourceRight Solutions, Ohio-based Huntington National still slumbering, regulators. president of Huntington’s eastern a company the FDIC uses in shut- Bank, told The Economic Club of De- the Midwest The final sale price will be deter- Michigan region. down situations. troit on Jan. 31 that Michigan was economy is mined after a review of the loan “When you combine this with Fezzey said employees were told leading the U.S. out of the reces- demonstrating portfolios. the $2 billion in small-business at a meeting at the Dearborn Inn on sion and that the state and the healthy Huntington acquired Fidelity’s lending we announced last year March 31 that they will be eligible Midwest were good places to grow growth.” 15 branches in Wayne, Oakland, and the $100 million in affordable to apply for permanent jobs at a business. Steinour Macomb and Washtenaw counties housing lending in we announced Huntington at a time to be deter- The region, he said, was no showed he was- and its $818.2 million in assets and in March, it’s wonderful to be part mined. Steinour longer the Rust Belt, it was the Re- n’t just speaking $746.6 million in deposits. The ad- of a company so bullish about Fezzey also said that some of the covery Belt. in platitudes when his bank’s ditional deposits leapfrog Hunting- Michigan.” 15 branches might be closed after “The Midwest is back,” Steinour holding company, Huntington Banc- ton past Fifth Third Bank and Charter Fezzey, who was longtime presi- Huntington does a market study said. “It is more economically shares Inc. (Nasdaq: HBAN), also One Bank into sixth place in the re- dent and general manager of WJR- evaluating overlap with current resurgent than the rest of the demonstrated growth, buying the gion for deposit market share, ac- AM 760, joined Huntington in Jan- Huntington branches, but that all would remain open for the time being. “Fidelity’s branch distribution matches well for us,” Fezzey said. “We’re in the process of discovery, and we’ll make decisions about layoffs or closings down the road. It’s too early. Now, the focus is on the customer and making sure they know everything is business as usual.” In a press release issued March 30, Huntington, which has about $54 billion in assets in Ohio, Michi- gan, Pennsylvania, Indiana, West Virginia and Kentucky, said the acquisition was expected to add about 2 percent to earnings per share for 2012, would add less than 1 percent to tangible book value and would be “very modestly dilu- tive” to capital ratios. Dennis Koons, president and CEO of the Lansing-based Michigan Bankers Association, said that a decision by a bank already operating in Michigan to expand here is good news for the state’s banking community. “The fact they wanted to come in and add to their footprint, when they already had a very strong presence, is great news,” he said. “We’re happy the winner was a very good Midwestern regional bank, which means Fidelity customers will be well served,” said David Provost, president and CEO of Troy-based Talmer Bank, which also bid on Fidelity and was considered the front-runner by many in the local banking community. Provost said Talmer will continue to try to grow, both through FDIC-assisted sales and through FSU MEANS ROI. acquisitions of willing sellers. As of last June 30, the most recent period on the FDIC website, Huntington was eighth in market With more than 180 relevant degree programs and locations across share in the five-county region of the state, we’re creating the professionals who can meet Michigan’s Southeast Michigan, with its $3.9 billion in deposits good for a mar- immediate needs. Ferris State University. A force in Michigan’s workforce. ket share of 4.17 percent. Fifth Third was seventh with $4.2 billion and a share of 4.46 percent, with Charter One sixth at $4.5 billion and 4.79 percent. Fidelity’s deposits put Hunting- ton at about $4.7 billion in assets. Chase is No. 1 with $20.8 billion and market share of 22.24 percent. The acquisition gives Hunting- ton 65 branches in Southeast Michigan compared to 73 for Fifth Third and 101 for Charter One. Statewide, Huntington remains in sixth place in deposits, its $7.9 billion in assets well behind the $13.1 billion for No. 5 Fifth Third. Chase is No. 1 at $25.6 billion. Tom Henderson: (313) 446-0337, [email protected]. Twitter: @tomhenderson2 20120409-NEWS--0007-NAT-CCI-CD_-- 4/6/2012 2:44 PM Page 1

April 9, 2012 CRAIN’S DETROIT BUSINESS Page 7 Esperion seeks funds for more trials of LDL-fighting drug

BY TOM HENDERSON “These are promising results high blood insulin levels, inflam- of nine to 12 months, will begin next bert was later bought by Pfizer Inc. CRAIN’S DETROIT BUSINESS with clinically meaningful im- mation, atherosclerosis (harden- year to see how ETC-1002 works in In 1998, Newton founded Esperi- provements in (lowering) LDL … ing of the arteries), obesity, fatty combination with statins for pa- on Therapeutics Inc. to develop a Buoyed by results in human tri- and with good tolerability and safe- liver and high blood pressure. tients who are already on statins drug to raise the so-called good als of a compound called ETC-1002, ty,” he said. Currently, many of those with but aren’t getting the desired effect. cholesterol known as HDL. which lowers the level of the un- “These results provide the ratio- metabolic syndrome are on three, Statins are a class of drugs that Esperion raised more than $200 healthy form of cholesterol known nale for larger and longer studies to four or five drugs to treat its symp- inhibit an enzyme that plays a cen- million in equity capital, went as LDL, Roger Newton is raising a learn more about the safety limits toms, with a wide range of side ef- tral role in the production of cho- public in 2000 and then was bought Series B round of this drug, and to look at whether fects. lesterol in the liver. Statins have by Pfizer in 2004 for $1.3 billion. of venture capi- this drug augments traditional It is hoped that one drug that rare but severe side effects, partic- In May 2008, Newton announced tal of at least $25 statin treatments.” treats many or all of the symptoms ularly muscle damage. he had raised nearly $23 million in million for his As for those longer studies, will lower costs, reduce side effects The best-selling statin, and the venture capital to buy back Esperi- Plymouth Newton said the series B round and offer Esperion a huge market. highest revenue producing drug in on from Pfizer, along with a patent Township-based will fund phase-two trials of ETC- Newton said a phase-two trial history, is Lipitor. portfolio protecting two com- Esperion Thera- 1002 on symptoms other than ele- will begin later this year or early In 1997, Newton was head of the pounds in development. peutics Inc. vated LDL levels that are also asso- in 2013 on diabetic subjects and atherosclerosis team at Warner- Tom Henderson: (313) 446-0337, Results of the ciated with a condition known as will last 12-18 months. Lambert/Parke-Davis that brought [email protected]. Twitter: 12-week phase- metabolic syndrome, including He said another phase-two trial, Lipitor to market. Warner-Lam- @tomhenderson2 two U.S. Food and Newton Drug Administra- tion trial of 177 patients with high cholesterol were presented March 25 at the 2012 American College of Car- diology meeting in Chicago. Since then, Newton — the company’s founder, president and CEO — has been traveling to the East and West coasts to meet with prospec- tive investors in the B round. “We had very good results. There’s a lot of interest. (Venture capitalists) are really excited about our data,” Newton said. He said the B round will fund phase-two trials for other uses of the compound. More funding will be needed in about two and a half years for the larger phase-three trials, the last step before getting approval to begin marketing the drug. “When we finish our phase-two trials, we’ll decide whether to seek a partner,” he said, referring to one of the larger pharmaceutical companies that might want to license it or take an equity stake in Esperion. “A lot depends on the economy. If the economic climate is good, we could even do an IPO,” he said. Newton said he has commitments from previous venture capital investors to put up half the money for the B round. Those firms are Ann Arbor-based Arbore- tum Ventures LLC, New York-based Aisling Capital, San Francisco-based Alta Partners, New Jersey-based Do- main Associates LLC and Asset Man- agement Co. of Palo Alto, Calif. He said he is in serious discussions with would-be new investors and expects to close the round in The commitment and capital June. “The current investors are all going to participate in the B round, to help a growing company be greater and we hope to bring two other large new investors on board,” said Jan Garfinkle, managing director at than the sum of its parts. Arboretum. Also presented at the College of Cardiology meeting were results of JL Manufacturing, a leading aerospace manufacturer, needed a bank committed to keeping their trajectory a small safety study of how well of success. We responded with a number of critical solutions: we helped the company purchase their own healthy volunteers at the Jasper Clinic in Kalamazoo tolerated larg- property, provided a line of credit to cover operating costs as they moved to their new location, and delivered er doses ETC-1002. Subjects tolerated higher doses treasury management solutions specific to their needs. Let us play a part in your company’s growth. well and also showed sharp decreases in LDL in just two weeks, with larger doses resulting in larg- Call 1.313.221.9394 or visit bankofamerica.com/businesssolutions er decreases, another selling point to would-be investors. One of the physicians involved in the 177-patient trial was Christie Ballantyne, director of the Center for Cardiovascular Disease Prevention at the Methodist DeBakey “Bank of America Merrill Lynch” is the marketing name for the global banking and global markets businesses of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking Heart & Vascular Center in Houston affiliates of Bank of America Corporation, including Bank of America, N.A., member FDIC. Securities, strategic advisory, and other investment banking activities are performed globally by investment banking affiliates of Bank of America and director of the Atherosclerosis Corporation (“Investment Banking Affiliates”), including, in the United States, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Merrill Lynch Professional Clearing Corp., both of which are registered broker-dealers and members of Clinical Research Laboratory at Baylor '*/3"BOE4*1$ BOE JOPUIFSKVSJTEJDUJPOT CZMPDBMMZSFHJTUFSFEFOUJUJFT *OWFTUNFOUQSPEVDUTPGGFSFECZ*OWFTUNFOU#BOLJOH "GàMJBUFT"SF/PU'%*$*OTVSFEr.BZ-PTF7BMVFr"SF/PU#BOL(VBSBOUFFE ¥#BOLPG"NFSJDB$PSQPSBUJPO College of Medicine. 20120409-NEWS--0008-NAT-CCI-CD_-- 4/6/2012 4:47 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS April 9, 2012 OPINION OTHER VOICES Follow bold start with ‘win’ Privatize crime lab functions

f Detroiters are looking for their own “profile in courage” It’s unconscionable for who in addition to per- use city-owned property — one of awards, we nominate the five Detroit City Council mem- Detroit — a city plagued forming virtually all the nation’s 28 accredited private I bers who endorsed what amounts to a consent agreement by violent crime — not to forensic testing for De- crime labs to establish operations with the state: Gary Brown, Ken Cockrel Jr., Saunteel Jenkins, have every law enforce- troit at crime labs outside in the city. Given where Detroit is Charles Pugh and James Tate. ment tool available at its of the city are also severe- now with its embarrassing inabili- disposal to help bring per- ly backlogged due to non- ty to process crime scene informa- Now the hard work begins. And though many tough deci- petrators to justice and stop casework from De- tion, privatizing this essential ser- sions lie ahead, it’s critical for Detroiters to start to feel a posi- provide closure to those troit. vice for the city makes perfect tive difference — to experience a “win” from this new arrange- affected. Amazingly, hardly a sense. ment — as quickly as possible. Yet for nearly four word is ever spoken about This is made even more true Whether that takes the form of increased state police pres- years, the city of Detroit Detroit’s failure to have its when considering that Detroit al- has been without one of John Sitkiewicz own operational crime lab. ready uses private crime labs out- ence, or help in demolishing more derelict structures, or a plan the most indispensible tools used In fact, aside from occasional lo- side of Michigan to conduct rou- to reduce auto insurance costs for Detroit residents, city resi- in law enforcement: a functioning cal television news reports, such tine tests spanning the forensic dents need to experience how this new arrangement is a step crime lab to test blood, hair, gun as a recent revelation that roughly spectrum whenever high profile forward, not a step back. residue and other trace material. 1,000 rape kits were found still prosecutorial decisions simply Since 2008, when an indepen- awaiting testing, seldom is there cannot wait. dent analysis found abnormalities any mention at all about the city’s It should go without saying that with ballistic firearm tests per- inability to perform timely and ac- those who live and do business in We have enough casinos now formed by then Detroit Police De- curate forensic testing. Detroit shouldn’t be made to wait partment Crime Lab, the city’s Fortunately, there’s a viable unnecessarily on forensic testing, Twenty-five casinos are enough. ability to conduct standard tests path forward. Mayor Dave Bing either; certainly not when there As Mike Turner reports on Page 1, American Indian tribes on evidence seized from crime and members of the City Council are proven private entities that and private investors are pushing to open additional gambling scenes has effectively remained should aggressively collaborate on can compensate for the city’s defi- spots in the state, including sites in Detroit and Romulus. unchanged. It still is at the mercy a strategy to incentivize — possi- ciency. Whether the Indian off-reservation casinos are approved of specially trained Michigan bly with an offer of a multiyear John Sitkiewicz is a freelance State Police forensic technicians city tax exemption and ready-to- business writer. lies with the federal government. However, Citizens for More Michigan Jobs, a group lobbying for eight specific casino sites across the state, needs to collect 322,609 signatures by July 9 to appear on the November ballot. And even if state voters approve, residents of the municipality of an intended site would have to approve, too. TALK ON THE WEB Detroit’s casinos brought construction and hospitality jobs From www.crainsdetroit.com to the city. But three are plenty. Which we believe voters will Bank has treated the Fidelity Bank decide for themselves, if this plan ever makes it to the ballot. Re: Consent agreement Reader responses to stories and employees. Transferred them to a Does this mean the vendors and blogs that appeared on Crain’s temp agency like they were cattle. contractors are going to get paid website. Comments may be They had no intention of ever hiring their contracted amounts, or will edited for length and clarity. Lawmakers, leave U policy alone anyone from Fidelity. they be asked to renegotiate after the Watch out, former Fidelity Bank job is done? could transform Detroit’s finan- If you don’t like the weather, it’s been said about Michigan, customers. Very shortly, you will Androcles II cial situation, its financial dis- wait 15 minutes; it’s bound to change. tress and defaults on bond see all new faces inside your old branches. That philosophy may be extending to politics, too. If you Through collaboration, all parties covenants are a choice, not a con- Bullwinkle don’t like the outcome of a voter referendum, switch tactics win. dition. and use legislation and appropriations bills to twist the out- Remus Mark White come to fit your political view. Re: RoboCop statue in Detroit That seems to be how some Republican lawmakers are us- Detroit has billions of dollars of Re: Restaurant group changes A RoboCop statue? How about readily marketable assets in its art ing the appropriations process to punish the University of I sincerely hope this does not af- helping the poor and needy? Peo- collection over at the DIA, but De- fect the numerous employees at all of ples’ priorities are really screwed up. Michigan, home of the state’s only laboratory producing em- troit and Michigan leaders don’t Matt Prentice’s establishments. Pook bryonic stem cell lines. publicly discuss how those fit into They are without doubt a fine Since November 2008, when 53 percent of Michigan voters en- Detroit’s financial recovery. group of people and deserve every Re: Twitter to open Detroit office dorsed loosening a ban on embryonic stem cell research, oppo- That’s a shame, since those as- kind of success. sets could fund an arts endowment Freedom Trinity It’s great to see what Gilbert and nents in the Legislature have tried to curb the research anyway. generating tens of millions of dollars a the private sector are doing. Now if Committees in the Legislature have tried to strip “perfor- year, perhaps even hundreds of only the city government can right the mance funding” aid from UM and Michigan State University— millions, without having the art Re: Huntington acquires Fidelity Bank ship and move forward instead of to the tune of $40 million. Lawmakers are miffed at UM’s re- leave the DIA. Everything will be as normal ... porting on its stem cell projects; MSU is on their naughty list Since innovations in art finance except for the way that Huntington See Talk, Page 9 for requiring freshmen to have health insurance. In both cases, lawmakers in both chambers should dismiss Send your letters: Crain’s Detroit Business will consider for publication all signed letters to the editor that do not defame individuals or organizations. Letters may be edited for length and clarity. Email [email protected] these attempts to engineer policy at these universities. KEITH CRAIN: Thank goodness for our athletic teams Last week, there were a lot more lineup, it is going to be ey playoffs last well into the ’90s. No one knows what’s going people who knew that Thursday very exciting. I wonder the year. For the Red There are a lot of challenges fac- to happen with this financial mess, was Opening Day for the Detroit how many fans remem- Wings to win the Stan- ing our city in the next few but we do know that we’re going Tigers than folks who knew some- ber Cecil Fielder and ley Cup, it’s going to months or even years before we to have some winners on the play- thing was supposed to happen with the excitement he creat- mean a lot more games, get all the financial problems ing field. And when things get the city and the state. ed. depending on how long ironed out. a little dicey in politics, we all There is nothing quite like the And while baseball is it takes each opponent But even though things may can root for our favorite sports opening day of the baseball season just beginning, the Na- to lose. seem bleak from time to time, we teams. — especially when your team tional Hockey League is And of course, we all all know that we have plenty to Detroit is very lucky to have so wins, as the Tigers did. I know peo- about to start its second have great hopes for the cheer about when it comes to De- many professional sports teams ple who would do just about any- season: the Stanley Cup Pistons with their new troit and its sports teams. and some really great college ath- thing from anywhere just to be at playoffs. The Red Wings ownership. It is way too It’s too early to cheer for the Li- letic programs as well. It’s very the Tigers’ opening game. have spoiled us. Each early to tell, and there ons or our college teams, but we nice to know we can always root And like all seasons recently, we year, for quite a while, they are the are still a lot of us who have fond will in the fall. Meanwhile, we for a winner, particularly when have very high hopes for an excit- stars and contenders for the Stan- memories of the “Bad Boys” and have plenty to cheer for with hock- it’s not on the political playing ing season. With a Prince in the ley Cup. Let’s all hope these hock- their championships way back in ey and baseball. field. 20120409-NEWS--0009-NAT-CCI-CD_-- 4/6/2012 10:17 AM Page 1

April 9, 2012 CRAIN’S DETROIT BUSINESS Page 9 OTHER VOICES: Chicago’s nice, but this is the place to be

When my family and I living in Detroit. I’ve never seen a livelier set of Detroit economy. But these busi- unique opportunity to create De- moved to the Detroit area It’s not just the lifestyle, entrepreneurs than those in De- ness leaders’ track records give troit 2.0. I’m confident they will from Chicago, I often or the sports teams, troit. They are actively looking to that talk a whole new underpin- succeed. And I’m glad to have the heard, “You must have though the recent perfor- grow their businesses, and seeking ning of reality. opportunity to participate in it gotten this backward,” mances of the Lions and to build new opportunities for We are poised for the rebirth of firsthand. implying that anyone in Tigers would make most their families, their employees and significant economic opportuni- So the next time someone asks his right mind would be Chicago fans envious. It’s their employees’ families. ties. And the first step to that re- me if I’m sure I’m headed in the moving the other way. the revitalization of the They’re as experienced, sea- emergence is belief. These busi- right direction, my answer is When I moved to Illi- city, and the spirit of the soned and tough as Clint Eastwood ness leaders have it, along with an clear. To quote another well- nois for college, after people I work with — in- in that Super Bowl ad. They sense inspiring ability to motivate. known ad campaign, I’ve said “Yes growing up in Kentucky, I cluding many of my cus- real opportunities ahead. It has been challenging for me, to Michigan.” And I think this thought Chicago and its Kip Kirkpatrick tomers. They’re investing in industries at least at first, to root against my transplanted Chicagoan’s good suburbs were the best places in the As a big fan of Daniel Burnham, from health care to education to old teams. But it isn’t hard to love feelings say a lot about the strong, world — except for the weather. who designed the Dime, Whitney building products, which means living in Michigan. resolute and savvy spirit of De- After 20 years there, I had the and Ford buildings here, I agree that the Detroit of the future won’t The strongest reason for its ap- troit. opportunity to become the CEO of with his advice to “Make no little be dependent on any one industry. peal is that the Detroit civic com- Kip Kirkpatrick is CEO of Birm- a growing, Birmingham-based plans.” And so do most Detroiters I People talk about entrepre- munity, and the business leaders ingham-based Shore Financial Ser- company. We came here, knowing meet. neurism as a way to jump-start the I’ve spoken of, are all focused on a vices Inc. little to nothing about Michigan or Detroit. Almost a year later, we agree that the Detroit area contains many communities that are as nice as anywhere we have ever been — and that it’s an exciting time to be A LOAN WITH TALK CONTINUED ■ From Page 8 being a hindrance to Detroit’s re- vival. BrandonP

Re: Corporate income tax increase That tax will surely have C corps lined up to open in the city. John Williamson

Re: Pontiac’s suit against A CITIZENS BANK LOAN LETS YOU FOCUS ON THE FUTURE ... because the businesses Blue Cross dismissed that will succeed tomorrow are the ones that make the right choices today. They are This is textbook antitrust. The proof of limiting competition is led by individuals who see opportunity for growth and expansion, and take action with Blue Cross Blue Shield’s monopoly complete conﬁdence. A loan from Citizens Bank will keep you moving forward and in Michigan and the rise of health care in Michigan. never wondering, “What could have been?” “Most favored nation” is used by BCBS all over the U.S. to limit competition. This needs to be ap- Get the loan you deserve now. To make an appointment with a Citizens Banker, pealed. Fee Transparency call 800-946-2264 or visit CITIZENSBANKING.COM/BUSINESS. Re: Law protecting real estate investors’ assets What good are contracts if they can be retroactively altered? As the appeals judge said: Read the contract before you sign it. Jim Reb

Re: Calley makes no promise to replace biz property tax revenue “What we’re trying to do is make it so the economy is not bad,” he said. “If we succeed in making it so the economy is not bad, the risk of there not being enough resources to appropriate is substantially less.” We want the economy to be “not bad.” Now there is a lofty goal. Dorothy

Re: Backers of 8 proposed casinos begin drive to get on Nov. ballot The largest casino in America, Foxwoods in Connecticut, filed for bankruptcy, not three weeks ago. What does Foxwoods know for certain that these potential owners and operators do not? It’s called reality, friends. Freedom Trinity 20120409-NEWS--0010-NAT-CCI-CD_-- 4/6/2012 10:27 AM Page 1

Page 10 CRAIN’S DETROIT BUSINESS April 9, 2012 No-fault revamp bill stalls in House; medical fee schedule a sticking point

BY MIKE TURNER how reimbursements are made in SPECIAL TO CRAIN’S DETROIT BUSINESS the workers’ compensation sys- I still feel we’re tem. LANSING — Six months “ CPAN spokesman John Truscott after hearings on a bill that going to get said the group is willing to discuss would change the state’s no- ways to contain costs, but it oppos- fault auto insurance system something to es a government-imposed fee drew overflow crowds to schedule. House committee rooms, the move by the Pete Kuhnmuench, executive di- proposal has quietly stalled rector of the Insurance Institute of on the House floor — to the end of the Michigan, the key proponent of a delight of opponents. no-fault overhaul, agreed the bill Reinventing “I’m telling you today — session. in its original form is unlikely to the bill as it currently stands, ” Reinvesting they’re not going to get it out of the Pete Lund, R-Shelby Township gain approval. House,” said Kevin McKinney, a He said his group, which con- lobbyist for the Committee Protect- proval are ongoing, although he tends change is needed to control Reforms championed last year by the Michigan Chamber ing Auto No Fault, at a recent gather- declined to provide specifics about spiraling medical costs, has been ing of the group in Lansing. CPAN the nature of the talks or say who’s talking to individual legislators are saving job providers an estimated $3,984 per employee members include various medical involved. about the issue. “We’ve had posi- each year, spurring new jobs and investment in our and consumer groups. “What we’re going to do is get a tive conversations on both sides of McKinney calculated that, as of bill acceptable to people, and we’ll the aisle, and negative ones,” he future. Michigan now leads the nation in job growth. late March, 20 of the 63 House Re- talk on it,” he said. said. publicans would vote “no” on the As written, Lund’s bill — voted Kuhnmuench said there also But there’s more work to do to reinvent our state. Call bill, and all 47 Democrats were op- out of the House Insurance Com- have been discussions among leg- posed, leaving the measure short mittee on Oct. 14 — would let poli- islators, insurers, Gov. Rick Sny- 517-371-2100 today and become a Michigan Chamber of the 56 votes needed for passage. cyholders choose among auto in- der’s office and the hospital indus- member to help move Michigan forward. “I think we are sitting fine as of surance coverage of $500,000, $1 try. The proposed fee schedule is today,” McKinney said. million or $5 million. Michigan is the main point of disagreement, he But bill sponsor Pete Lund, R- currently the only state that man- said. Shelby Township, maintains the dates unlimited lifetime coverage “I think we’re having some very revamp effort is far from dead. for medical expenses resulting constructive debates,” he said. “I still feel we’re going to get from auto accidents. “I’m actually encouraged, even something to move by the end of The bill would also establish a though the bill has not gone any- -PDBMt5PMM'SFF www.michamber.com the session,” he said. medical fee schedule for hospitals, where. Lund said negotiations to craft a doctors and others submitting “I still think there’s opportunity bill that would gain House ap- auto insurance claims, similar to to find that middle ground.” 20120409-NEWS--0011-NAT-CCI-CD_-- 4/6/2012 10:25 AM Page 1

April 9, 2012 CRAIN’S DETROIT BUSINESS Page 11

REPORTER’S NOTEBOOK

Chad Halcom covers law, manufacturing and defense. Call (313) 446-6796 or write chalcom @crain.com. general and in-house counsel awards Chad Halcom In-house gain is THE HONOREES Publicly traded law firms’ loss companies with Building up the home team revenue over $1 billion: Efforts by general counsel attorneys and their departments to manage Winner: Bruce corporate legal costs appear to be tied Peterson, DTE to a year of widespread attrition in Companies focus on legal departments, not outside firms Energy Co., Detroit law firms that serve as outside Page 11 counsel to many of those companies. he nucleus of the business law Finalist: Joshua community is rebuilding mass, Sherbin, TriMas Legal needs increased among 80 ATTORNEYS TO SHARE STRATEGIES AT CRAIN’S SUMMIT T as general counsel and in- Corp., Page 12 percent of larger companies, who General and in-house counsel from secretary for manufacturing and house legal teams grow to tackle new spent 6 percent more on their in-house around the state will have a chance to services in the U.S. Department of Publicly traded legal departments, compared with 1 legal challenges for many of South- meet and share strategies on April 25 Commerce, is scheduled to be a companies with revenue under percent the year before and several east Michigan’s largest companies. as part of the Crain’s General & In- keynote speaker. $1 billion: years of spending declines before Corporate and in-house counsel House Counsel Summit. General counsel from companies that, according to the 2011 Law attorneys protect the assets of com- The event at the Inn at St. John’s in such as 5-Hour Energy, Valassis Winner: Chris Department Survey of Houston legal panies and nonprofits and oversee Plymouth will feature speakers from Communications Inc. and Heaphy, Taubman consulting and professional services the legal budgets for both their own around the country addressing best Meadowbrook Insurance Group Inc. Centers Inc., firm Hildebrandt Baker Robbins. departments and outside law firms. practices, strategies and regulations. are featured speakers. Page 12 This year, heads of legal depart- A keynote panel of attorneys from the The event is open only to general Finalist: Ethan Gilan, At the same time, Michigan’s 25 Pioneer Automotive largest law firms saw a net decline of ments honored by Crain’s took ac- Securities and Exchange Commission, and in-house counsel from 11 a.m. to and the U.S. Department of Justice will 3 p.m., and open to everyone from Technologies, more than 156 attorneys, or 4.5 percent tive roles in company mergers and Page 12 acquisitions, diversifying business look at regulatory trends. 4:30-8 p.m. To register, go to of total headcount in 2011 (See Crain’s www.crainsdetroit.com/events. list, Page 19). Some 16 firms — 64 function and staving off costly liti- Nicole Lamb-Hale, assistant Privately held percent — shed lawyers in 2011. gation. companies with revenue over That tracks with the 60 percent of Their departments also took on departments, in partnership with neys for businesses and nonprofit $1 billion: companies that spent less on outside greater significance to the larger le- the Association of Corporate Counsel, organizations. Winners and finalists Winner: Holly Leese, counsel in the Hildebrandt survey. But gal community, as they grew staff the State Bar of Michigan’s Business will be honored April 25 at an Detroit firms did more bleeding than and budgets while outside law firms Chrysler Group LLC, Law Section and the Oakland County evening reception and strolling din- Page 13 their counterparts in western Michigan, saw attrition during much of 2011. Bar Association. ner following an afternoon summit Finalist: Bryant and several top partners see a few local With that in mind, Crain’s takes a Here are profiles of 2011’s most (see box) with speakers, panels and Frank, Soave issues that exacerbated the situation. closer look at newsmakers in these distinguished general counsel attor- educational sessions. Enterprises, Page 14 “Two years ago, if an auto supplier Privately held was under an enormous financial companies with strain, one of the things they did was revenue under let go of general counsel staff and Publicly traded companies, $1 billion: outsource work to (law firms),” said John Hern, CEO of Detroit-based Clark revenue over $1 billion Winner: Ryan Hill PLC. “Today, the trend is (that) Ruzziconi, Diplomat auto is recovering, confidence is BRUCE PETERSON Pharmacy, Page 15 returning and those companies are Finalist: Michael Senior vice president and general Zambricki, Art Van hiring back and looking to take more counsel, DTE Energy Co., Detroit Furniture, Page 16 work in-house.” Claim to fame: Reduced the share of The automotive recovery has had a Nonprofits and legal work done by outside counsel from public institutions: two-pronged effect, since it dried up 75 percent in 2001 to 30 percent in much of the demand for bankruptcy 2011, and won dismissal of a lawsuit by Winner: Richard attorneys at full-service firms and the U.S. Environmental Protection Agency White, Auto Club spurred more hiring among in-house over emission controls at Michigan’s Group Inc., Page 17 law departments, attorneys aid. largest coal-fired power plant. Finalist: Louis Lessem, Wayne Clark Hill saw a modest gain in State University, attorneys, while Dykema Gossett PLLC hen Bruce Peterson became Page 18 and Miller Canfield Paddock and Stone senior vice president and PLC saw the most erosion in 2011 W general counsel at DTE Ener- with the loss of 43 and 39 attorneys, gy Co. a decade ago, he didn’t just WARDS JUDGES respectively. A Dickinson Wright PLLC change jobs — he changed the way and Honigman Miller Schwartz and Rob Kurnick Jr., he thought about legal Cohn LLP decreased by nearly a dozen KENNY CORBIN president, Penske attorneys each in the same period. services. Bruce Peterson, senior vice president and general counsel at DTE Energy, built a Corp. Winner The new approach team to take more legal work in-house, going from 25 percent in-house to 70 percent. Bernard Lourim, Miller Canfield CEO Michael paid off in part last Au- Hartmann said in-house staff growth corporate counsel, gust, when DTE attorneys obtained Most businesses, Peterson said, did transactions. I was brought into was one of many things that sapped Fanuc Robotics summary judgment in a lawsuit by question the value of the work and transactions at a certain point, I exe- lawyers from Michigan’s largest firm. America Corp.; the U.S. Environmental Protection how it relates to the company’s cuted transactions, but I never had a president, Other losses followed moves out of strategic mission. And that kind of chance to be involved with strategic state, retirements and a few Agency, with The Sierra Club and Natur- Association of evaluation can’t be done by outside decisions of the businesses I was fi- performance-based job cuts, but no al Resources Defense Council joining Corporate Counsel counsel. nancing.” Michigan chapter layoffs. as plaintiffs. U.S. District Judge Bernard Fried- So Peterson built a team that One priority for Peterson was im- Lisa DeMoss, “We lost very few people to could help take more legal work in- proving the depth and quality of competitors,” he said. “But I’m not man found it is too early to know if director, graduate house. In 2001, 75 percent of DTE’s le- DTE’s in-house team. Bringing work saying this (shrinkage) is unrelated to DTE’s 2010 renovations to the second insurance program, gal work was done by outside firms. inside has enabled him to cut costs Thomas M. Cooley market demand. It’s still a very viable, unit of the Monroe power plant con- Law School (former stable legal market in Detroit. But I stitute a “major modification” that Now, 70 percent of the company’s by 50 percent over the past 10 years increased pollution and required work is done in-house. — in part because of a shrinking re- Blue Cross Blue wouldn’t say it’s a robust, growing Shield of Michigan market for anyone right now.” new emission controls under the fed- Evaluating work means the offi- source pool — which wouldn’t have cer’s resources are used in areas been possible without developing a general counsel) Other law firm principals noted that eral Clean Water Act. The judgment is under appeal. most critical to the company’s suc- solid in-house team. Leonard Niehoff, some attorneys with practices in professor from strong local demand, such as “Law firms tend to have an ap- cess. “Thirty years ago, none of my proach that is a little bit reactive,” The ability to take part in crafting peers at the top of a graduating class practice, University antitrust law, municipal law and public of Michigan Law Peterson said. “Lawyers do work, a big-picture strategy is part of what went to become an in-house counsel. corruption, banking or mergers and School; higher acquisitions have felt the urge to start solve problems, do transactions, drew Peterson, 55, from a job as a None,” he said. “Top-talent lawyers education practice their own boutique firms or find other handle cases … and they do (all that) partner in a Washington, D.C.-based are really excited about working in a group chairman, law firms that offer better in a certain way, and they don’t nec- law firm to in-house work. corporate setting now, where they Honigman Miller compensation. essarily say, ‘How important is this “I had a skill, a very valuable skill, can be invested in strategic issues.” Schwartz and Cohn to the company?’ ” but a very narrow skill,” he said. “I — Nancy Kaffer LLP, Ann Arbor office 20120409-NEWS--0012,0013-NAT-CCI-CD_-- 4/6/2012 10:14 AM Page 1

Page 12 CRAIN’S DETROIT BUSINESS April 9, 2012 Focus: General and In-House Counsel Awards Publicly traded companies, loomfield Hills-based TriMas commitment to service. There’s a August, and a $38.6 million sale of Publicly traded companies, Corp. is back in the club of 20 sense of dedication to seeing all of three companies to Livonia-based revenue over $1 billion B or so metro Detroit public the (TriMas) businesses achieve Arch Global Precision LLC in Decem- revenue under $1 billion companies with $1 billion-plus rev- their best function,” Sherbin said. ber, without using outside counsel. JOSHUA SHERBIN enue for the first time since 2008 — The company now coordinates TriMas did use outside counsel ETHAN GILAN and Joshua Sherbin its national litigation defense on two smaller cross-border pur- General counsel, General secretary and Finalist may be partly re- work through just two outside law chases — X-Cel India Private Ltd., for counsel, chief compliance sponsible. firms — Cleveland-based McDonald $2.1 million, in September, and BTM Pioneer officer, TriMas Sherbin, 49, who oversees a legal Hopkins LLC, which has an office in Manufacturing Ltd. in South Africa, Automotive Corp., Bloomfield staff of seven for a manufacturing Bloomfield Hills, and Hewitt Wolen- for $2.6 million, in October — as Technologies Hills company with 4,100 employees in sky LLP in Newport Beach, Calif. — well as the purchase of 70 percent of Inc., Claim to fame: 15 countries, formed a senior man- compared with more than a dozen Arminak & Associates LLC in Califor- Farmington Engaging senior agement compliance committee outside firms four years ago. nia, for $64 million, in February. Hills management in a last February that includes CFO A. Sherbin said he also expects to de- Sherbin said as much of the Claim to fame: compliance Mark Zeffiro, Vice President of velop new initiatives in 2012 to co- M&A work as possible was han- Navigated committee to Human Resources Colin Hindman ordinate better with outside legal dled in-house. Pioneer’s contract negotiations direct legal and with customers and suppliers and several business unit leaders. counsel on the company’s costs. Sherbin is also chairman of the ethical standards for TriMas following supply disruptions worldwide, and helping to close five The committee helps develop glob- The company’s $1.08 billion is board of the Birmingham Bloomfield caused by an earthquake in portfolio company acquisition deals al policies on corporate conduct 2011 sales were bolstered in part by Art Center and serves on the execu- Japan and flooding in Thailand. in six months with a combined value and measures to comply with revenue from acquisitions. The tive board at Temple Shir Shalom in changing laws around the world. company completed the purchase of West Bloomfield. of more than $130 million. fter two tough years of “I think the legal team has a real Innovative Molding for $27 million in — Chad Halcom restructuring and lean A markets, things were looking up for the global automotive industry in early 2011. Taubman crucial for the legal team to follow Publicly traded companies, But in March, an earthquake Centers’ the company’s culture. and tsunami in revenue under $1 billion expansion “Everyone here looks at this Japan caused se- into Asia has company less like a developer and Finalist been a major rious fractures in more like a retailer,” he said. “We CHRIS HEAPHY focus of the supply chain. emphasize thinking about the ten- Senior vice president, general Chris Then, October floods in Thai- ants, the mix of tenants and their counsel and secretary, Taubman Heaphy, land damaged two plants that performance. Because, in the end, Centers Inc., Bloomfield Hills senior vice make components for Farming- president, the more profitable our tenants Claim to fame: Worked with the firm’s ton Hills-based Pioneer Automo- general are, the more profitable we are.” Asia expansion, new mall tive Technologies Inc., said com- counsel and Heaphy has placed a priority on development and acquisitions pany general counsel Ethan secretary. allowing employees to raise issues Gilan. Pioneer Automotive is or concerns anonymously, without t’s been a busy year for Taub- the U.S. automotive subsidiary fear of retribution. That feedback man Centers Inc. of Japanese electronics con- I The Bloomfield Hills real es- has helped reduce legal claims via glomerate Pioneer Corp. early intervention. tate investment trust accelerated “With a significant presence It’s also part of a larger compli- its Asian expansion by acquiring a in both (Asian) countries, Pio- ance program focusing on exten- Beijing-based real es- neer incurred substantial dis- PIERRETTE DAGG/CRAIN’S DETROIT BUSINESS sive training and education. Winner tate consulting firm, ruption to necessary parts and Training and education starts on and it opened one of components supply,” said Gi- municating with the legal team is deavor and helped navigate the le- the first day for company employ- the nation’s only new mall pro- lan, 44. crucial, said Chris Heaphy, Taub- gal issues. ees, and regular retraining fol- jects, in Salt Lake City. Shipments were delayed and man senior vice president and gen- “There are language barriers, lows, he said. It also acquired malls in Ten- plants shut down for lack of eral counsel. there are different rules, there are Before moving in-house at Taub- nessee and California, but then parts. Gilan’s department at Pi- “We have a great legal staff that political issues,” he said. “But this is man in 2005, Heaphy represented gave malls back to the lender in oneer was forced to play a logis- gets involved with the leasing and the new frontier, and we see a lot of the company for nearly 20 years — Virginia and New Jersey. Taub- tics chess game, negotiating al- really even helps close the deals,” growth in Asia.” 19 of them at Miro Weiner & Kramer man also reached a high water ternative sourcing with its he said. Heaphy points to early interven- PC, and one at Detroit-based Honig- mark of 600 new or renewed ten- supply base and other divi- The company’s expansion into tion in the company’s business is- man Miller Schwartz and Cohn after ants in 2011 retail leases, across its sions. 23 malls nationwide. Asia has been a major focus for sues as the best way to avoid prob- the Miro firm dissolved. In a commotion like that, com- Heaphy, who has overseen that en- lems in the long term. It’s also — Daniel Duggan See Next Page

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April 9, 2012 CRAIN’S DETROIT BUSINESS Page 13 Focus: General and In-House Counsel Awards

PIERRETTE DAGG/CRAIN’S DETROIT BUSINESS Holly Leese and her team helped move Chrysler through bankruptcy proceedings and then helped it repay the U.S. and Canadian governments ahead of schedule. Privately held companies, and working on a million different schemes to provide VEBA with revenue over $1 billion three or four better options by Jan. 1.” HOLLY LEESE But Leese, 56, and her legal team of 100 have faced challenges before. Senior vice president, general counsel and secretary, Chrysler The department helped pilot Group LLC, Auburn Hills Chrysler through a controlled Claim to fame: Structuring the bankruptcy proceeding in New refinancing package that allowed York after years of poor sales, but Chrysler to repay $6 billion to the U.S., then helped repay $6 billion to the Canadian and Ontario governments. Treasury Department and Canadi- an government years ahead of ew financing packages schedule, as Chrysler reaped a cleared away most of the $183 million profit in 2011. N ownership of Chrysler Group Leese led her team through LLC by the U.S. Department of Treasury Chrysler’s investor road show, and the governments of Canada and calling it a “monthlong sojourn” to Ontario. But another convince investors Chrysler Winner hurdle remains be- would be different under Fiat than fore attempting a under Daimler AG and Cerberus Capi- complete merger with Fiat Group tal Management LP. SpA: the voluntary employees’ bene- “There was huge skepticism,” fit association, or VEBA, trust fund Leese said. “We proved an indus- established by the UAW. trial merger with another large Heading up efforts to shed the company (like Daimler) was a fail- retirees’ stake and proceed to a ure, and we didn’t have a lot of merger is Holly Leese, senior vice new products. Closing on these fa- president, general counsel and sec- cilities was a hard slog.” retary at Chrysler. Leese then helped obtain terms On Jan. 1, a provision in its agree- of agreements and investments ment with Chrysler could allow the with underwriters J.P. Morgan VEBA to demand the Auburn Hills Chase, Bank of America, Merrill Lynch, It’s ironic that we’re called brokers, when we automaker go public to repay its 41.5 Citi Group and Goldman Sachs. The percent, or $4.5 billion stake — deal grew Fiat’s stake in Chrysler definitely make your life richer in many ways. which would make a subsequent from 20 percent to 58.5 percent and merger or joint public offering with shed government ownership. Fiat difficult, Leese said. When Congress passed a law au- “We’re going to have to find a thorizing arbitration for the 789 way to speed up the merger and dealers Chrysler shed in bankrupt- figure out a plan for VEBA,” she cy, Leese oversaw that process for said. “We have to protect VEBA’s Chrysler. Chrysler legal settled interest, but it’s a dilemma for us.” with 310 of the 418 dealers who Fiat won’t go forward with joint first pursued arbitration. ownership while VEBA’s pension She recalls the restructuring obligations are still invested in and aftermath as both grueling Chrysler, and Chrysler can’t af- and exciting. ford to buy out the VEBA shares. “Bankruptcy was really one of “A standalone Chrysler IPO is- the worst experiences,” she said. n’t ideal for us or Fiat,” Leese said. “I loved it.” “So, we’re racing against the clock — Dustin Walsh

From Previous Page tion volumes or deadlines due to “These efforts required many an unforeseen external event. people working many hours in Five months later, Gilan is still many countries to modify produc- negotiating contracts tied to com- tion plans to accommodate Pio- ponent sourcing from the Thai- neer’s (automaker) customers, of- land plants. tentimes at the expense of our “The concept of force majeure aftermarket division,” he said. may seem simple to understand, After the disasters, Gilan en- but its application in the face of Lease Renegotiation? No problem tered talks with Pioneer’s cus- crippling consequences can be in- tomers and vendors on the major tensive,” he said. It takes a lot of work to identify the ideal location, cost requirements to get the sup- In addition to being general coun- negotiate terms and execute a lease. Relax and let ply chain back on line. sel, Gilan has served as head of Pio- us handle all of your commercial real estate needs. To avoid litigation, Gilan’s work neer’s human resources department Tom Lasky, Mike Ziecik and Jacob Sworski focused heavily on invoking sup- since the industry downturn, dur- plier agreements’ “force majeure” ing which he managed a temporary #SPLFSBHFt-PBO3FTUSVDUVSJOHt-FBTF/FHPUJBUJPOt/PUF1VSDIBTFt1SPQFSUZ3FQPTJUJPOJOH clauses, provisions in many con- shift to four-day workweeks, cutting tracts that avert liability when a overhead and averting layoffs. 4036 Telegraph Road, Ste 203 Bloomfield Hills, MI 48302 248-593-7850 www.forumgroupllc.com manufacturer cannot meet produc- — Dustin Walsh 20120409-NEWS--0014-NAT-CCI-CD_-- 4/6/2012 10:13 AM Page 1

Page 14 CRAIN’S DETROIT BUSINESS April 9, 2012 Focus: General and In-House Counsel Awards Privately held companies, revenue over $1 billion al purchasing and processing in Michigan, and new hydraulic fracturing operations for Soave throughout the country. BRYANT FRANK Now Soave Enterprises, run by Anthony Soave, is a Secretary and senior counsel, Soave $1.8 billion company with interests in real estate, car Enterprises LLC, Detroit dealerships and beverage distribution, along with Claim to fame: Helped the company metals recycling. evolve through 75 sales and In his career with Soave, Frank has led those 75 ac- acquisitions over 20 years, and quisitions and sales. He’s also been part of negotia- continue diversifying with new tions on 30 collective bargaining agreements and han- operations in Iowa and Michigan. dled arbitration on 50 labor cases. Among his recent accomplishments, Frank points to the sale of Chicago- hen Bryant Frank joined based City Beverage-Illinois LLC at the end of 2010. Soave Soave Enterprises LLC 20 years ago, he was a sold its 70 percent stake in the wholesaler to Anheuser- W lawyer skilled in merger and acquisition Busch InBev NV/SA, which already owned the remain- work who needed to learn about the company’s pri- ing 30 percent. mary businesses: construction and waste manage- Frank joined Soave after working at the Troy-based &21*5$78/$7,21621%(,1*$ ment. firm of Jacob & Weingarten PC. He said being in-house The waste management knowledge let him to get to know his clients in a way that would- Finalist may be dated now, as Soave has largely n’t have been possible at an outside firm. evolved beyond it. But the M&A experi- “The conversations that you have spontaneously, at '5,9,1*)25&( ence is still an asset, as the company has bought or 6:30 or 7, when everyone’s sitting in a room and talking sold 75 others during his tenure. about the day’s events, that’s when you really get to ,1285&20081,7< “We’ve changed so much, in fact, our primary in- know the people you work with,” he said, noting that dustry from 20 years ago — waste — is something outside counsel don’t spend as much time with clients. we’ve sold off,” Frank said. Frank serves on the board of directors of the De- And 2011 was busy as well, with acquisitions that troit regional office of the American Jewish Committee establish new operations for Soave’s industrial ser- as well as Detroit-based Matrix Human Services. vices group in Iowa, growth in nonferrous scrap met- — Daniel Duggan

$$$VDOXWHV5LFKDUG:KLWHRQ KLVVHOHFWLRQDV%HVW*HQHUDO&RXQVHO NOMINATE ENTREPRENEURS FOR CRAIN’S SALUTE IRUE\&UDLQ·V'HWURLW%XVLQHVVLQWKH The deadline to nominate someone for Crain’s Salute entrepreneurs and one for “intrapreneurs,” or people 1RQSURÀW3XEOLF,QVWLWXWLRQV&DWHJRU\ to Entrepreneurs awards program has been moved to within companies who have demonstrated an April 30. entrepreneurial spirit to help the company grow. Crain’s is seeking nominations for entrepreneurs who Award winners will be recognized in the June 18 5LFKDUG7:KLWH deserve to be recognized for their innovation, problem- edition. solving ability or sheer relentlessness. Go to crainsdetroit.com/nominate for more Anyone is welcome to nominate an entrepreneur, information on the categories and the requirements to including entrepreneurs themselves. make a nomination. Questions? Contact Gary The awards are broken out by five revenue categories Anglebrandt, Web editor, at [email protected] or according to size. There is also a category for social (313) 446-1621. 20120409-NEWS--0015-NAT-CCI-CD_-- 4/6/2012 10:12 AM Page 1

April 9, 2012 CRAIN’S DETROIT BUSINESS Page 15 Focus: General and In-House Counsel Awards Privately held companies, Ruzziconi also successfully managed a medical privacy com- revenue under $1 billion pliance audit by the Office of Civil My philosophy was to Rights under the U.S. Department of “ RYAN RUZZICONI Health and Human Services, under keep as much in-house the federal Health Insurance Vice president and general counsel, as I could. I am in the Diplomat Specialty Pharmacy Inc., Flint Portability and Accountability Act. Claim to fame: Created in-house best position to know the counsel office, negotiated ground- While Ruzziconi declined to give breaking contract with Pfizer to sell the reason for the audit, Diplomat ins and outs of brand-name drug Lipitor at generic received a “matter closed, audit prices, successfully managed patient complete” decision from HHS and Diplomat. privacy audit by the U.S. Department no fine. ” of Health and Human Services’ Office Diplomat is a pharmacy benefit of Civil Rights. Ryan Ruzziconi, management company that offers Diplomat Specialty Pharmacy Inc. mail-order services, dialysis med- yan Ruzziconi has blazed ication management, wellness pro- several trails since he grams and patient counseling ser- R joined Diplomat Specialty vices. Pharmacy Inc. in December 2009 as — Jay Greene its first general counsel. RYAN GARZA “Bringing me in- Winner house has saved money,” said Ruzzi- coni, who formed and heads the legal department for the mail-order pharmacy company. “My philosophy was to keep as much in- house as I could. I am in the best position to know the ins and outs LET US HELP YOU CHART YOUR FUTURE of Diplomat and to know what human resource or compliance issues there are.” Ruzziconi, 36, rounded out his new department with a paralegal and administrative assistant, and relies partly on law school or college interns. “We have kept our budget at under $400,000 a year the past two years. It will go up when we hire a new corporate counsel” in late March, Ruzziconi said. Diplomat CEO Phil Hagerman said one of Ruzziconi’s best assets has been his ability to turn work around quickly and how he handles business partners’ needs. “He protects us as he should without trying to create unfair ad- vantages,” Hagerman said. “(That) Ogletree Deakins is one of the nation’s largest labor and employment goes a long ways when we are negotiating tough points.” laZÀrms Zith more than attorneys in ofÀFes aFross the FoXntry To tap into outside expertise, Ruzziconi has contracted with two law firms with offices in Detroit, 7he nationally reFogni]ed laZyers in Ogletree Deakins’ 0iFhigan ofÀFe Butzel Long and McDonald Hopkins PLC. The firms receive paid flat represent and adYise employers throXghoXt the state of 0iFhigan:e fees to advise Diplomat on compli- Xnderstand the many Fhallenges faFing 0iFhigan employers and Ze Zork ance and pharmacy licensing issues. Zith yoX to formXlate praFtiFal bXsiness solXtions to legal problems Last November, Diplomat took 7his foFXs has prompted a diYerse groXp of Flients ranging from start the pharmaceutical industry by surprise when it announced an in- Xps to more than half of the )ortXne Forporations in the 8nited novative contract to help Pfizer market its brand name drug Lipi- 6tates to tXrn to Ogletree Deakins for their employment and labor laZ tor at generic prices. needs9isit Xs at ZZZogletreedeakinsFom Because Lipitor’s patent had expired, Pfizer contracted with Diplomat to mail Lipitor to patients who order the cholesterol- lowering pills directly through the pharmacy. Diplomat would bill the WHY CHART YOUR FUTURE WITH ANYONE ELSE? patients’ health plans. The Pfizer deal was the first time a major pharmaceutical drug maker has ever contracted directly with a mail-order drug company to sell its brand-name drugs to consumers directly at generic drug prices after its patent ex- pires Lipitor is the top-selling drug of Ogletree Deakins is proXd to be the 7itle 6ponsor of &rain’s Detroit all time, and Pfizer has earned siness se ond ann al eneral and n o se o nsel mmit taking more than $81 billion in sales since %X F X * , + X & X 6X 1997. plaFe on $pril at 7he ,nn at 6t-ohn’s3lymoXth0iFhigan Diplomat has about 600 employees, including more than 50 hired in the past few months to help service the new Pfizer contract. Its 2011 revenue was $800 million and could grow to nearly $1 billion this year, Hagerman said. 20120409-NEWS--0016-NAT-CCI-CD_-- 4/6/2012 10:11 AM Page 1

Page 16 CRAIN’S DETROIT BUSINESS April 9, 2012 Focus: General and In-House Counsel Awards Privately held companies, ichael Zambricki has in July 2010. He’s now working on two others training seminars for Art Van’s guided Art Van Furniture Last year, he also led prepara- that are scheduled to open within management team on labor and revenue under $1 billion M through rapid growth tion of the legal agreements to the next couple of months. employment issues and litigation over the past two years, oversee- support Art Van’s purchase in Zambricki negotiated joint ven- avoidance. MICHAEL ZAMBRICKI ing two acquisitions and internal July of Mattress World, which tures with Irvine, Calif.-based As a result, over the past growth. brought its first stores outside of Paul’s TV to bring television sales Vice president and general counsel, decade, employment liability Art Van Furniture Finalist Now he’s helping Michigan in the Indianapolis, into Art Van Furniture stores, and has averaged less than $30,000 an- Inc., Warren the Warren-based re- Ind., area. with Minneapolis-based World of nually at the 2,500-employee com- Claim to fame: tailer expand further in Michigan Both deals came together quick- Floors to bring flooring into Art pany. Provided legal through new franchises and into ly, closing in less than a month, Van. Zambricki is now helping to other states with franchises, inde- Zambricki said. In addition to serving as support for ready Art Van for further expan- internal growth pendent licensing and company- He also helped Art Van grow in-house counsel, Zambricki sion into other states, reviewing and acquisitions owned stores. internally, delving into intellectu- was head of human resources for possible land purchases and help- in the past two Zambricki, 58, vice president al property and helping to line the first 16 of his 18 years at Art years. Now and general counsel at Art Van — up the trademarks, property Van. ing to craft franchise agreements, helping to and mayor of Bloomfield Hills — purchases and lease deals Art He ceded HR responsibilities manuals and disclosure docu- position Art Van led due diligence and helped put Van needed to launch its Pure two years ago but still oversees Art ments and other documents need- for further ed for independent licensing of its expansion in-state and outside of together the deals that led to the Sleep brand both in its furniture Van’s benefits department and brands. Michigan. company’s purchase of Brewbaker’s stores and at three freestanding loss prevention. Furniture in Petoskey and Onaway stores. Zambricki has helped provide — Sherri Welch

CRAIN’S EXPANDS COOL PLACES TO WORK AWARDS PROGRAM Crain’s Cool Places to Work awards returns this year as Cool Places to Work in Michigan, reflecting the expansion of the program from covering businesses in Southeast Michigan to businesses in the entire state. To manage the revamped program, Crain’s is working with Best Companies Group of Harrisburg, Pa. In addition to an employer questionnaire, as has been done in the past, Best Companies will survey employees of participating companies. The combined, weighted results of the two will determine who qualifies for Cool Places designation. Best Companies supplies all participating companies — regardless of whether they win the Cool Places recognition — with a Best Companies Group Employee Feedback Report based on employee responses to the 72- question survey. The report can help company executives identify strengths and weaknesses in their company culture and practices. To be considered for Cool Places to Work in Michigan, companies must register at www.coolplacestoworkmi.com by June 15. Once registered, companies will be invited to participate in the surveys. Up to 400 employees will be surveyed, depending on company size. Wayne Law offers students a strong and comprehensive legal The vetting process runs from June through August, with honorees education. And we are always getting better. Recently, we receiving notification at the end of August. celebrated the grand opening of the Damon J. Keith Center for Businesses and nonprofits can apply. Applicants must have a Civil Rights, partnered with Windsor Law for North America’s minimum of 15 employees working in Michigan and have been in business at least one year, among ﬁrst Transnational Environmental Law Clinic, and brought more other criteria. than a dozen legal scholars and practitioners to campus for Companies pay a fee based on AIM HIGHER company size to Best Companies to cover survey costs. The cost innovative lectures. ranges from $605 to $890 for online surveying, and $735 to $1,630 for paper surveying. It’s no wonder our graduates go on to make signiﬁ cant Crain’s Detroit Business will feature the recognized companies contributions in their communities and beyond. in the Nov. 5 issue and recognize their success at a Nov. 15 event at Emagine Theatre in Royal Oak. Details of the program and samples of the employee surveys are available at Learn more at law.wayne.edu or us on Facebook at facebook.com/WayneStateLawSchool www.coolplacestoworkmi.com. 20120409-NEWS--0017-NAT-CCI-CD_-- 4/5/2012 4:39 PM Page 1

April 9, 2012 CRAIN’S DETROIT BUSINESS Page 17 Focus: General and In-House Counsel Awards Health Care Experience

Richard Nonprofits and public institutions White says his legal In Your Corner. RICHARD WHITE department’s Senior vice president, secretary and involvement general counsel, Auto Club Group Inc. in education (AAA Michigan), Dearborn programs is central to Claim to fame: Created a strong in- success in house counsel office; helped start a holding down AAA bank; reduced use of outside employee counsel to only when necessary for litigation at added support for growth through Auto Club mergers, acquisitions and new Group Inc. business development.

ichard White’s keys to an efficient general counsel office R at Auto Club Group Inc. are developing attorney specializations GLENN TRIEST and holding to a flat legal budget. Club South. The combination creat- and manager education component As Auto Club has ed AAA’s second-largest auto club, that is organized by human re- Winner doubled in members after the AAA club in Southern sources but with our input and par- to 8.7 million over California, with more than 8,000 ticipation,” said White. “If a partic- the past several years and in- employees. ular manager seems to have some creased revenue by 14 percent to “Right now, the hard part is in- problems communicating with fe- $2.4 billion, White has kept the tegration and making sure it male employees — it may be kid- general counsel’s office budget flat works,” White said. ding around but offensive to others without any new lawyers. Over the past 16 years with Auto — that manager is identified, indi- The office also develops its attor- Club, White’s approach has led to a vidually counseled and trained to neys to specialize in key business significant decrease in employ- preclude that risky behavior.” areas: insurance, employment, ment litigation. Also under White’s responsibili- corporate, mergers and acquisi- “We haven’t had any significant ties is a 38-lawyer legal depart- tions, technology and taxation. employee litigation in many ment that handles insurance Lawrence P. Burns Under White’s guidance, Auto years,” said White, 67, noting that claims on homes, automobiles and [email protected] Club in 2010 opened AAA Bank Ne- there have been EEOC complaints boats. braska, a retail bank, in Omaha. when employees are suspended or Since 1996, Auto Club has re- Additional branches are planned terminated. duced the number of attorneys this year in that state, and Auto White said his office, which has handling claims from 65 to 38 — Club is considering a similar bank eight lawyers, two paralegals and primarily by increasing productiv- four support staffers, works closely ity and improving processes with- to operate in Wisconsin. Michigan First Tier Ranking is not in contention for such a with the human resources depart- in the general counsel’s office, he in Health Care Law bank due to regulations and comment during business reorganiza- said. The reduction in lawyers in- petition, he said. tions and employee disciplinary ac- cluded retirements, resignations, I Metro Detroit I Grand Rapids I Kalamazoo I Grand Haven I Lansing In October, Auto Club affiliated tion and terminations. layoffs and attrition. with Tampa, Fla.-based AAA Auto “We have a very active employee — Jay Greene

Art Van Furniture is delighted to recognize our own Mike Zambricki Corporate Counsel – Art Van Furniture as a Crain’s Detroit Business General and In-House Counsel Finalist 2012. We are so proud of you, Mike!

Art Van Furniture 6500 East 14 Mile Road Warren, MI | artvan.com 20120409-NEWS--0018-NAT-CCI-CD_-- 4/5/2012 4:39 PM Page 1

Page 18 CRAIN’S DETROIT BUSINESS April 9, 2012 Focus: General and In-House Counsel Awards Park West Galleries Nonprofits small city, in terms of the legal He credits a risk management claims” short of litigation, he said, nuances of addressing safety, la- strategy he developed with his le- while a policy of pursuing attor- winnows buyer suits and public institutions bor and liquidity. gal team for reducing claims, along ney fees from unsuccessful plain- Finalist “Universities get with a reorganization in which the tiffs helps deflect frivolous cases. Southfield-based Park West Gal- LOUIS LESSEM sued in a lot of dif- school’s Office of Labor Relations Lessem’s latest challenge is co- leries Inc. has settled or dismissed ferent areas, much like a city,” he and Office of Equal Opportunity ordinating the university’s Office 31 claims among the nearly 60 Vice president buyers who have alleged conspira- and general said. “But we’re now practicing a now report to directly to him. of Internal Audit and Office of cy, fraud, breach of contract or un- counsel, Wayne number of things that work well Lessem, 62, also established an Compliance with his own depart- State University, in preventative measures. The “Attorney of the Day” program to ment. As state university funding just enrichment in various law- Detroit best way to avoid litigation is for have one university staff attorney is at all-time lows, compliance suits over artwork the local dealer Claim to fame: us to be up-front and center from on call all day to consult with programs can avert fines and oth- sells on cruise ships. Reducing the start.” campus officials. er legal entanglements that jeop- The Michigan Court of Appeals lawsuits against He estimates WSU was a defen- “Because of your ability to reach ardize WSU operations, he said. last week agreed to hear an appeal the university to dant in 35-40 lawsuits annually us, we are able to learn about a “There will always be the next from buyers Sharon Day and Ju- fewer than 15 a year, down from 35- when he became general counsel in problem when it’s a little problem lawsuit or crisis,” he said. “But lian Howard of England, who con- 40, and reducing settlement costs 1998 and now averages fewer than and handle it before it becomes a helping the university in these tested being dismissed last sum- to less than $50,000 in 2011. 15 a year. His legal team prevailed big problem, stopping some law- difficult and uncharted waters is mer from a pending Oakland ouis Lessem believes run- against 75 percent of all claims and suits from getting filed,” he said. the most exciting (responsibility) County Circuit Court lawsuit. Un- ning a public university can paid out less than $50,000 in total The changes help the university for me.” less Day and Howard get reinstat- L be much like running a settlements for the year. “to resolve the most meritorious — Dustin Walsh ed, that leaves only three claims from four remaining plaintiffs, out of the original 10 in that 2008 case. A multidistrict litigation case at the U.S. District Court in Seattle, which consolidated several federal lawsuits from a dozen buyer plaintiffs against Park West and three cruise ship companies, was dismissed per a settlement last July. Attorney Jaye Quadrozzi of Southfield-based Young & Susser PC called the agreement “extraordi- narily favorable to Park West,” but did not elaborate. The claims against the cruise lines that host Park West auctions were dismissed prior to the final Park West settlement. Besides the four plaintiffs in the original 2008 Oakland lawsuit, just We know international over a dozen of the original 27 plaintiffs remain from a separate 2010 lawsuit before Oakland Cir- cuit Judge Wendy Potts. Five of BUSINESS, the buyers in that case were dis- even that double missed over an arbitration clause in their purchase agreements; the rest had to file separate suits, and eight of those have since settled. KISSY CHEEK thing. Another 12 buyers brought a third buyer lawsuit in Oakland County last fall, and that case awaits a motion hearing April 25. — Chad Halcom

Plunkett Cooney lawyer weighs in on strip searches Mary Massaron Ross, shareholder and head of the appellate practice group There is one at Bloomfield international language used Hills-based Plun- commonly throughout the world. It’s kett Cooney PC, business. And we speak it ﬂuently. joined the winning side in a recent U.S. At Baker Tilly, our team members use their valuable Supreme Court perspective on international growth and foreign regulations to provide ruling on police tailored, global solutions and help you overcome the challenges of worldwide authority to conduct strip commerce. With one convenient local point of contact, you’ll get seamless cross- Ross border service and deep country-speciﬁc market experience across many industries. searches. The high court ruled 5-4 earlier this month that jail policies of Let us get to know your business, and all the places you’d like to see it thrive. strip-searching all general-popula- Connect with us: bakertilly.com tion inmates, including those held on minor charges, do not violate Connect with us to Alan Whitman, Managing Partner the Fourth Amendment, and that safety concerns outweigh personal learn more about our 248 368 8833 | [email protected] international insights. privacy rights. Ross filed an amicus brief on behalf of Chicago-based DRI-The Voice of the Defense Bar, a national organization of lawyers defending business and individuals in civil litigation, of which she is first vice president. The organization argued that a ruling against municipal and © 2012 Baker Tilly Virchow Krause, LLP. state governments could lead to po- Baker Tilly refers to Baker Tilly Virchow Krause, LLP, an independently owned and managed member of Baker Tilly International. tential class-action lawsuits. — Chad Halcom 20120409-NEWS--0019-NAT-CCI-CD_-- 4/5/2012 4:22 PM Page 1

April 9, 2012 CRAIN’S DETROIT BUSINESS Page 19

CRAIN'S LIST: LARGEST MICHIGAN LAW FIRMS Top outstate law Ranked by number of attorneys in Michigan firms; ranked by Company Michigan attorneys in Mich. Address attorneys Worldwide attorneys Rank Phone; website Top Michigan executive Jan. 2012/2011 Jan. 2012/ 2011 Representative clients Miller, Canfield, Paddock and Stone PLC Michael Hartmann 242 310 ArvinMeritor Inc., Comerica Inc., Chrysler Group LLC, DTE Name, location, Michigan 1. 150 W. Jefferson, Suite 2500, Detroit 48226 CEO 269 349 Energy, Ford Motor Co. and its affiliates, University of top exec attorneys (313) 963-6420; www.millercanfield.com Michigan, Valassis Communications Inc. 1. Warner Norcross 182 Honigman Miller Schwartz and Cohn LLP David Foltyn 216 216 BlackEagle Partners LLC, Detroit Institute of Arts, DTE & Judd LLP, 2290 First National Building, 660 Woodward Ave., chairman and CEO 213 228 Energy, General Motors Co., Huron Capital Partners LLC, 2. Detroit 48226-3506 Ramco-Gershenson Properties Trust, Rock Financial/ Grand Rapids (313) 465-7000; www.honigman.com Quicken Loans Inc./Rockbridge Growth Equity LLC, Douglas Wagner, Taubman and Trinity Health managing partner Dickinson Wright PLLC William Burgess 204 279 J.P. Morgan Chase, Federal Mogul, Ford Motor Co., AT&T, 500 Woodward Ave., Suite 4000, Detroit 48226 CEO 218 289 Magna, MGM Mirage, Kellogg Co., Enbridge Energy Co., 2. Varnum LLP, 134 3. (313) 223-3500; www.dickinsonwright.com Visteon Corp., Carhartt, Beaumont Hospitals, Lacks Grand Rapids Enterprises Inc. Lawrence Murphy, Warner Norcross & Judd LLP Douglas Wagner 182 219 Amway Corp., Borg Warner, Consumers Energy Co., Dow managing partner 900 Fifth Third Center, 111 Lyon St. SW, Grand Rapids managing partner 188 221 Chemical, Fifth Third Bank, Mahle Industries Inc., 4. 49503 Mercedes-Benz Financial Services USA, Stryker Corp., 3. Foster Swift Collins 96 (616) 752-2000; www.wnj.com Robert Bosch Corp., Whirlpool Corp. & Smith PC, Clark Hill PLC John Hern 181 227 NA Lansing 5. 500 Woodward Ave., Suite 3500, Detroit 48226 CEO 178 210 Michael Sanders, president (313) 965-8300; www.clarkhill.com 4. Miller, Johnson, Snell 87 Dykema Gossett PLLC Peter Kellett 159 296 Chrysler Group LLC, Compuware Corp., Ford Motor Co., & Cummiskey PLC, chairman and CEO 180 339 General Motors Co., Guardian Industries, International 6. 400 Renaissance Center, Detroit 48243 Grand Rapids (313) 568-6800; www.dykema.com Transmission Co., KONE, Masco Corp. Craig Mutch, Plunkett Cooney PC Henry Cooney 151 162 Bank of America, Huntington Bank, First American Title, managing member 38505 Woodward Ave., Suite 2000, Bloomfield Hills president and CEO 150 165 Beaumont Health System, Liberty Mutual Insurance, 7. 48304 Michigan Municipal League, PNC Bank, The Travelers 5. Smith Haughey Rice 79 Companies Frankenmuth Mutual Insurance (248) 901-4000; www.plunkettcooney.com & Roegge PC, Varnum LLP Lawrence Murphy 134 153 Kellogg Co., The Huntington National Bank, Citizen's Grand Rapids 8. 333 Bridge St., Grand Rapids 49501-0352 managing partner 134 153 Bank, Independent Bank Corp., Fifth Third Bank, MPI William Hondorp, CEO (616) 336-6000; www.varnumlaw.com Research, PNC Bank, National Association 6. Rhoades McKee PC, 49 Ralph McDowell 131 131 Comerica Bank, Bank of America, Archdiocese of Detroit, Bodman PLC Grand Rapids Sixth Floor at Ford Field, 1901 St. Antoine St., Detroit chairman 126 126 Ford family, Lear Corp., Freudenberg-NOK, GP, Pulte 9. 48226 Homes of Michigan, Caraco Pharmaceutical Laboratories Robert Shaver, president (313) 259-7777; www.bodmanlaw.com Ltd., Blue Cross Blue Shield of Michigan, Detroit Medical Center 7. Mika Meyers Beckett 36 Butzel Long PC Justin Klimko 111 121 William Beaumont Hospitals, University of Michigan, & Jones PLC, 150 W. Jefferson, Suite 900, Detroit 48226 president and managing 123 146 Oakland Community College, MGM Grand Detroit, Fifth Grand Rapids 10. (313) 225-7000; www.butzel.com shareholder Third Bank, Owens Corning, Casio America, Diplomat William Horn, Specialty Pharmacy managing partner Jaffe, Raitt, Heuer & Weiss PC Richard Zussman 98 NA Sun Communities Inc., Belfor USA Group Inc., Strength 27777 Franklin Road, Suite 2500, Southfield managing partner 101 101 Capital Partners, The Fisher Group, Oppenheimer & Co. 8. Kreis, Enderle, Hudgins 33 11. 48034-8214 & Borsos PC, (248) 351-3000; www.jaffelaw.com Kalamazoo Foster Swift Collins & Smith PC Michael Sanders 96 96 NA Stephen Hessen, 12. 313 S. Washington Square, Lansing 48933 president 103 106 managing partner (517) 371-8100; www.fosterswift.com 9. Law Weathers, 24 Kitch Drutchas Wagner Valitutti & Ronald Wagner 92 100 Ascension Health, Chartis Insurance, Coverys, CVS Drugs, managing partner 97 107 Detroit Medical Center, HCR Manorcare, Henry Ford Grand Rapids Sherbrook PC Health System, Motor City Electric Co., Utica Insurance Robert Buchanan, president 13. 1 Woodward Ave., Suite 2400, Detroit 48226 (313) 965-7900; www.kitch.com 10. Barnes & 23 Trott & Trott PC Executive committee 91 91 Bank of America, Chase, Citifinancial, Wells Fargo, Thornburg LLP, 31440 Northwestern Highway, Suite 200, Farmington 91 91 Comerica Grand Rapids 14. Hills 48334 Tracy Larsen, Grand Rapids (248) 642-2515; www.trottlaw.com managing partner Miller, Johnson, Snell & Cummiskey PLC Craig Mutch 87 87 Gordon Food Service, Spectrum Health, Steelcase Inc., 15. 250 Monroe Ave. NW, Suite 800, Grand Rapids 49503 managing member 87 87 Stryker Corp. 11. Scholten Fant PC, 22 (616) 831-1700; www.millerjohnson.com Grand Haven Roger Smith 81 81 NA Ronald Bultje, chairman of Garan Lucow Miller PC executive committee 16. 1000 Woodbridge, Detroit 48207 chairman of executive 87 90 (313) 446-1530; www.garanlucow.com committee 12. Parmenter O’Toole, 20 Smith Haughey Rice & Roegge PC William Hondorp 79 92 University of Michigan Health System, Trinity Health, Muskegon 17. 100 Monroe Center, Grand Rapids 49503 CEO 76 89 Michigan Professional Insurance Exchange, Northwestern George Johnson, president (616) 774-8000; www.shrr.com Michigan College Giarmarco, Mullins & Horton PC Executive committee 70 70 NA 12. Loomis, Ewert, Parsley, 20 101 W. Big Beaver, 10th floor Columbia Center, Troy 71 NA Davis & Gotting PC, 18. 48084-5280 Lansing (248) 457-7000; www.gmhlaw.com Kevin Roragen, president Executive committee 69 107 NA Harness, Dickey & Pierce PLC 14. McShane & Bowie PLC 18 19. 5445 Corporate Drive, Suite 400, Troy 48098 75 114 (248) 641-1600; www.hdp.com Grand Rapids Dan Challa, managing partner Howard & Howard Attorneys PLLC Mark Davis 67 110 BASF Corp., Chrysler Group LLC, Dow Corning, Fifth Third 20. 450 W. Fourth St., Royal Oak 48067 president and CEO 69 121 Bank, KISS, Konami Gaming Inc., Magna Mirrors of 15. Price, Heneveld, 17 America Inc., Sears Holdings Corp., ThyssenKrupp (248) 645-1483; www.howardandhoward.com Cooper, DeWitt & Litton LLP, Secrest, Wardle, Lynch, Hampton, Truex Mark Morley 62 62 Chartis, AT&T, Auto-Owners Insurance, Eaton Corp., Grand Rapids Bruce Truex 61 64 Zurich North America, The Hartford, city of Farmington Kevin Grzelak, managing partner and Morley PC co-chairman, executive Hills, State Farm, city of Novi, Progressive Insurance Co. 21. 30903 Northwestern Highway, Farmington Hills committee 48333-3040 16. Lewis, Reed & Allen PC, 16 (248) 851-9500; www.secrestwardle.com Kalamazoo Brooks Kushman PC Mark Cantor 62 64 Ford Motor Co., Lear Corp., Oracle, Masco, HoMedics William Redmond, 1000 Town Center, 22nd floor, Southfield 48075 president 64 67 managing partner 21. (248) 358-4400; www.brookskushman.com James Kushman chairman and CEO 17. Kluczynski Girtz 15 Kerr, Russell and Weber PLC Executive committee 55 55 NA & Vogelzang, 23. 500 Woodward Ave., Suite 2500, Detroit 48226 55 55 Grand Rapids (313) 961-0200; www.krwlaw.com Kirby Fuller, office manager Maddin, Hauser, Wartell, Roth Steven Sallen, president 51 51 Fifth Third Bank, Huntington National Bank, Bank of 17. Cunningham 15 & Heller PC Michael Maddin, 50 50 America, The Kroger Co., Garden Fresh Salsa Co. Inc., 24. president emeritus CNA, Zurich North America, The Hartford, Chartis Dalman PC, 28400 Northwestern Highway, Southfield 48034-1839 Mark Hauser, CFO Insurance, Fidelity National Title Group, Aurora Home Holland (248) 354-4030; www.maddinhauser.com Loan Services LLC Jeffrey Helder, managing partner Anthony Asher 50 50 Consumers Energy, city of Pontiac Police and Fire, Health Sullivan, Ward, Asher & Patton PC 19. Willingham & Coté PC, 14 25800 Northwestern Highway, 1000 Maccabess Center, president and CEO 47 NA Pro/CNA, Iron Workers' Local No. 25, Medical Protective 25. Southfield 48075 Co., Michigan Educational Employees Mutual, Smithgroup East Lansing (248) 746-0700; www.swappc.com Inc., Universal American Corp., University of Michigan, Michael Stephenson, William Beaumont Hospital managing partner This list is an approximate compilation of the largest law firms in Michigan. Total number of attorneys does not include "of counsel." It is not a complete listing but the most comprehensive available. Unless 19. Bleakley, Cypher, 14 otherwise noted, information was provided by the law firms. Firms with headquarters elsewhere are listed with the address and top executive of their main Michigan office. NA = not available. Parent, Warren & Quinn PC, LIST RESEARCHED BY BRIANNA REILLY Grand Rapids Michael Ward, managing partner LIST RESEARCHED BY BRIANNA REILLY 20120409-NEWS--0020-NAT-CCI-CD_-- 4/5/2012 4:38 PM Page 1

Page 20 CRAIN’S DETROIT BUSINESS April 9, 2012 MDC’s minority stake purchase in Doner evolved from a chance meeting of CEOs

BY BILL SHEA tually worked out a deal that had sortium of WPP Group agencies in CRAIN’S DETROIT BUSINESS MDC taking a minority equity California. Doner had had the share. work since 1997 — coming up with MDC Partners Inc.’s purchase of a DeMuth and Rob Strasberg, the the Japanese automaker’s “Zoom minority stake in Southfield-based agency’s co-CEO and also Doner’s Zoom” campaign — and it was W.B. Doner & Co. has its genesis in a COO, agreed to the sale only if they about 20 percent of its business. At the heart of Here you will enjoy casual or happenstance meeting on a could maintain majority ownership. While Doner has added work the Detroit Golf Club are ﬁne dining, annual club events Caribbean tennis court. “That we could maintain some since losing Mazda, it’s unclear two Donald Ross designed and many fun activities for The Toronto-based advertising level of independence appealed to whether the new work has been agency holding championship courses. The your family and guests. us,” DeMuth said. able to replace the $150 million lost company’s pur- golf facilities are complete The deal does, however, include in that account. It’s also unclear chase of an a mechanism that allows MDC to how much cash the MDC deal in- with a well stocked pro Our promise is to deliver the undisclosed buy more equity in Doner, De- jects into the agency. shop, practice utmost in “significant mi- Muth said. But he has no plans to “We really view this as a part- range and an satisfaction nority interest” sell his share or step away any nership,” DeMuth said. “We think outstanding with an in Doner “came time soon. it’s going to allows us to accelerate about rather co- group of outstanding The immediate impact of the eq- the good things happening here.” incidentally,” uity stake sale is that Doner gets The agency does creative agency teaching golf said David De- access to MDC’s global assets and work and media planning and buy- professionals. experience Muth, Doner DeMuth gets an influx of cash that allows it ing, analytics and production. while president and to bolster its digital resources and Doner is the nation’s third- The rambling building CEO. The deal was announced last open additional offices. largest independent ad agency, ac- week but closed March 28. Old English camaraderie There are no plans to add staff cording to the Advertising Age Data- DeMuth met MDC CEO Miles because of the deal, DeMuth said. Center’s most recent ranking, based Style clubhouse designed by in a family friendly Nadal last year while walking off a The agency employs about 600, 500 on estimated 2010 U.S. revenue. Albert Kahn is remarkable environment. At DGC you tennis court during a July 4 week- in Southfield. The others are Doner had estimated 2010 U.S. with its sweeping wings and can have it all. Contact us to end family vacation in the Ba- spread across offices in Cleveland, revenue of $133 million, placing it numerous terraces and patios. inquire about joining today. hamas, and they got to talking. London and Newport Beach, Calif. behind U.S. independents Richards “We had a nice conversation for “We will continue to hire as our Group and Wieden & Kennedy. Doner about a half-hour,” DeMuth said. business dictates,” he said. The was the largest independent, based 'HWURLW*ROI&OXE “We liked one another. We re- agency has hired about 50 people on estimated U.S. revenue, as re- Detroit’s First — Detroit’s Only — You Belong at DGC mained in contact casually. Our in the past six to nine months. cently as 2008. talks got more serious.” Doner’s peak headcount was Doner had 2010 estimated world- 17911 Hamilton Road — Detroit, MI 48203 After DeMuth shared his vision about 800 to 850 five years ago. wide revenue of $142 million, in- Contact Carol Koehn, Membership Director, for Doner, its business plans and Layoffs came after the agency cluding its London office, making at (313) 927-2457 or [email protected], samples of its work, he and Nadal, lost the $150 million Mazda Motor Doner the world’s No. 47 agency, or visit www.detroitgolfclub.org. along with their lieutenants, even- Corp. account in June 2010 to a con- according to Ad Age. Doner’s major clients include PulteGroup Inc., Perkins, Pennzoil Co., AutoZone Inc., Choice Hotels Interna- tional, Coca-Cola Co., The Coleman Co., DuPont Co. and The UPS Store Corp., along with work for Chrysler Group LLC that included the car- maker’s controversial Jennifer Lopez work for the Fiat brand. Doner opened in 1937 in Balti- more. Founder Wilfred Broderick You Deserve Unbiased Tenant Representation “Brod” Doner died in 1990 at age 75, and some years later the shop dropped the initials from its name. The agency has had a long and tumultuous history. It’s long been one of the biggest independent shops, but its rise from a regional to a national and then international agency was literally sparked by a fire that destroyed its Southfield office in 1996. The agency used that occasion to reinvent its business model and chase high-profile clients such as Mazda. Strasberg and DeMuth have run the agency as co-CEOs since a management upheaval caused by the departure of the agency’s former chief, Alan Kalter, in 2009. After 43 years with Doner, Kalter sold his stake in the agency to DeMuth, Strasberg and another former exec, Tim Blett. That move came after a massive layoff at the Real Estate Strategy agency that affected more than 100 staffers, and Kalter’s exit came Tenant Representation amid legal issues over pension fund problems. Blett left the Buyer Representation agency last June, selling his 30 percent stake back to the agency. Project Feasibility MDC Partners ranked as the Whether leasing, buying or building, users of space have the world’s No. 10 agency company Construction Oversight based on 2010 revenue. Ad Age will upper hand in today’s real estate market. Let our experienced publish rankings based on 2011 team of real estate professionals uncover every option. Incentives revenue April 30. MDC’s roster of agencies in- Lease Administration cludes Crispin Porter + Bogusky, the pmcresa.com 248.223.3500 Florida-based superstar agency. Advertising Age contributed to this report. 20120409-NEWS--0021-NAT-CCI-CD_-- 4/5/2012 3:59 PM Page 1

April 9, 2012 CRAIN’S DETROIT BUSINESS Page 21

PUBLISHER’S NOTEBOOK

Contact Mary Kramer at mkramer @crain.com. CRAIN’S MICHIGAN BUSINESS Mary Kramer Council majority made brave vote; Finding bright spots hard work begins Late last month, the Rev. Jesse Strategies help solar companies hang on as industry tightens Jackson visited Crain offices to talk about Detroit’s financial crisis. BY JENNY CROMIE Jackson, who is based in Chicago, SPECIAL TO CRAIN’S MICHIGAN BUSINESS lobbied the Detroit City Council to reject a consent ince launching their Midland-based so- agreement with lar company in 2009, Steve Ellebracht the state; he has S and his partners have built solar pan- been critical of els and installed them on farmhouses, gas Michigan’s stations, funeral homes, garages, church- emergency es, synagogues, restaurants and houses. manager law. One of the solar arrays is harvesting One thing from enough sunlight to power 30-35 homes as it our freewheeling feeds energy back into the power grid. discussion stuck Despite being a startup in the middle of with me: what many experts call an industrywide Jackson Jackson’s shakeout, Midland Solar Applications is rid- passionate assertion that the rest of ing out the turbulence, in part by branch- Michigan wished it could separate ing out into other states. The company Detroit from the rest of the state. does most of its research and development Detroit was like a “sixth finger” and it here but has outposts in Texas and Mis- needed to be part of the whole. souri, where state incentives fuel residen- When Rick Snyder campaigned for tial and commercial solar installations. governor, he made it clear in stops all Ellebracht, the company’s president, is over the state that he thought a reluctant to share detailed financials but healthy Detroit was critical to a healthy Michigan. But he also made it said Midland Solar is able to achieve gross margins of 20 percent to 30 percent with clear in recent weeks that he had no THOMAS SIMONETTI interest in appointing an emergency incentives from utilities and states. Midland Solar Applications, whose president is Steve Ellebracht, is riding out the turbulent market in manager to run the financially crippled Like other regions of the country, the part by branching out into other states. Most of its research and development is done in Michigan. city. Great Lakes Bay Region — which encom- Before moving to Detroit, I lived in passes Midland, Saginaw, Bay City and four other Michigan cities. The surrounding areas — saw its share of solar ical Co. and Dow Corning Corp. — still say so- Why some succeed, some fail attitudes toward Detroit varied, but departures in the past year. lar has a future. What accounts for the jumble of good one depiction of Detroit lingers: If Last fall, Massachusetts-based Evergreen And as Jim Stutelberg, Hemlock’s vice and bad news? And how well is the indus- Michigan is the mitten, tilt it slightly to Solar Inc. filed for Chapter 11 bankruptcy president of sales and marketing, points the right, and all the money falls to and closed its Midland plant, where 40 em- out, far from being a startup, his company try really doing? the corner — Detroit. That sure isn’t ployees manufactured silicon-carbide- has produced polycrys- Solar experts say answers to both ques- how most Detroiters view their city, coated filaments used in wafers for solar talline silicon — a raw tions depend on whether you’re a con- which has great difficulty managing panels. material used for solar sumer or investor — and, if you’re a com- even basic services. In late December, the CEO of GlobalWatt products and electronics pany, your place in the solar supply chain. Detroit’s best chance for a Inc. said the San Jose, Calif.-based compa- — for half a century. Companies such as Hemlock that are on sustainable future — and better ny, to reduce overhead costs, was moving A number of other the materials side seem to be in a good po- delivery of basic services — took a big its Saginaw operations to Copemish, about companies also feed sition, said Dan Radomski, vice president step last week. And, ironically (at 30 miles south of Traverse City. Company Michigan’s solar supply of new market services at NextEnergy, the least for Jackson), it was another officials, who in 2009 selected Saginaw chain. According to a Detroit-based nonprofit that is a combina- pastor — actually a group of them — over Texas, had planned to bring 500 jobs March 2011 report re- tion of tech incubator and service that helped to give five Detroit City and a $177 million plant to the city. leased by the Environmen- provider for companies in emerging ener- Stutelberg Council members the courage to vote Despite these departures, area economic tal Law & Policy Center, the gy industries. Also more likely to do well in favor of what Jackson opposed. development officials — and officials at so- state has 121 companies in the solar supply are companies involved in installations, Leaders from the council of Baptist lar companies such as Hemlock Semicon- chain, with 6,300 jobs tied to the industry. assembly equipment and equipment for Pastors of Detroit and Vicinity told ductor Group, Dow Solar Solutions, Dow Chem- But that was before last year’s shakeout. See Solar, Page 22 council members they favored the consent agreement over the appointment of an emergency COURTESY OF MIDLAND SOLAR APPLICATIONS manager. This solar array by Midland Solar Applications produces enough power to supply 30-35 homes. That angered — and stunned — what I think of as the professional protestors in the room. And five council members, in spite of threats from those protestors to their political lives, took the 5-4 vote that will finally allow Detroit to move forward. Of course, now the hard work really begins. Snyder and Mayor Dave Bing will put the advisory financial team together, appoint a new CFO and a project manager to start the city on a very tough path. It sounds kind of familiar. Like the domestic auto industry before it, Detroit has a tough restructuring ahead. But it will emerge stronger as a better place to live and work. 20120409-NEWS--0022,0023-NAT-CCI-CD_-- 4/5/2012 4:05 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS April 9, 2012 CRAIN’S MICHIGAN BUSINESS WEEKEND INVESTMENT Solar: Finding strategies ■ From Page 21 utility-scale solar projects. of the lowest production costs in LIFELONG RETURNS Companies that are likely to the industry and a long history in struggle will be solar cell and mod- the business. ule manufacturers — especially if they focus on domestic markets only, Radomski said. Rolling out the solar red carpet Industry experts say the price of Within a mile of Hemlock’s solar panels dropped about 50 per- world headquarters is the new 231- cent in 2011 alone. Part of the rea- acre Great Lakes Solar Technology son is increased competition from Park, which opened last November Chinese manufacturers, which and has room for about half a dozen have received considerable sup- companies. Officials with Saginaw port from their government. Future, that city’s economic devel- Solar’s growing pains are not opment organization, hope the unlike what is typically seen in park will attract more companies emerging industries, said Chris to the region’s solar supply chain. Rizik, CEO and fund manager of As of April, the park had no ten- the Renaissance Venture Capital ants. But Saginaw Future Presi- Fund in Ann Arbor and past chair- dent JoAnn Crary said Norcross, MSU Executive-style Weekend MBA man of NextEnergy. Initial higher Ga.-based Suniva Inc. plans to locate costs, developing technologies and a $250 million manufacturing a lack of market readiness often plant in the park when market de- No other MBA offers a comprehensive, team-based program that truly ﬁts your life. factor in, he said. mand prompts the solar cell and Michigan State University’s Weekend MBA is an investment in yourself that offers “We’ve come a long, long way module manufacturer to build a even in the last 10 years,” Rizik said. second location. great returns. You’ll join a powerful network of high-caliber professionals in a “And at some point in the not-too- Since late last year, state tax in- program that’s intensely challenging and rewarding. Become the high-performing distant future, we’ll see solar com- centives previously available to petitive with other sources of power companies such as Suniva and leader you were meant to be. — without needing subsidies.” Dow Solar have changed, said Kar- la Campbell, manager of state tax incentives at the Michigan Econom- Bright spots in the region ic Development Corp. Call 248-879-2725 or 517-355-7603 In the meantime, many solar Currently, no state tax incen- to schedule an appointment with a companies in the Great Lakes Bay tives specific to solar power exist. survive by supplying products and And because of changes in the program director. services to other industries. Many state’s tax code, credits from the of the region’s larger companies — Michigan Economic Growth Authority rooted in chemical and automotive also are no longer available. manufacturing — are well-diversi- But companies including those fied across sectors other than solar, in the solar industry are eligible to said Ryan Richards, marketing receive performance-based loans manager at economic development and grants through the Michigan organization Midland Tomorrow. Business Development Program, For some companies, solar was Campbell said. A total of $100 mil- “an additional market that made lion has been appropriated for that sense, given the markets they were program and the Community Revital- already in,” Richards said. ization Program, aimed at urban ar- Late last year, Dow Solar Solu- eas. Companies also may be eligi- tions began selling Dow Power- ble for state tax incentives offered house solar shingles — a major ini- in renewable-energy renaissance tiative to turn an otherwise zones. The Michigan Strategic Fund conventional-looking roof into a can designate such a zone, where source of electrical power. The companies are exempt from hav- shingles were first made available ing to pay property taxes. in Colorado. To make solar installations at- Installing the solar shingles on a tractive for residential and com- standard home can cost $10,000 to mercial customers, Midland Solar $15,000 more than using conven- Applications relies on utility-spon- tional shingles, said Jane sored incentive programs as well Palmieri, Dow Solar vice presi- as state and federal incentives. dent. The company estimates that But more incentives are avail- the shingles will reduce energy able in states such as Texas and costs 50 percent and pay for them- Missouri, where the company cur- selves in five to 12 years. rently does most of its solar instal- Several miles away from Mid- lations, said Ellebracht, a former land in Saginaw County’s Thomas global research and development Township, Hemlock Semiconduc- director at Dow Chemical. tor Group continues to produce “We’re doing our research here polycrystalline silicon. The com- (in Michigan), but we’re doing our We’re in your neighborhood pany is a joint venture of Dow design and (installation) in other Corning and two Japanese compa- states,” he said. If the company nies, Shin-Etsu Handotai Co. Ltd. and were focused solely on installations At ITC we strive to be good neighbors and community partners. Mitsubishi Materials Corp. in Michigan, Ellebracht said, “we’d Even as some other global man- be laying guys off right now.” We’re working hard to keep efficient, reliable energy flowing to homes ufacturers of polysilicon have con- Midland Solar employs about a sidered slowing production be- dozen full-time employees in and businesses across Michigan and throughout the Midwest. cause of oversupply in recent Michigan, Texas and Missouri, in months, Hemlock continues to ex- addition to contract workers such pand. By the end of 2012, officials as electricians and installers. expect to increase capacity 28 per- Initially, Ellebracht and his part- cent when a plant opens in ners were able to take advantage of Clarksville, Tenn. Hemlock also an incentive program in Michigan has spent $2.5 billion to expand offered by Jackson-based Con- production in Thomas Township. sumers Energy Co. called the Experi- www.itctransco.com Mark Zhu, an investment man- mental Advanced Renewable Pro- ager with Ann Arbor-based DTE En- gram. ergy Ventures, a subsidiary of DTE En- The program is one way that the ergy Co., said that despite overseas company works to meet Michi- competition, Hemlock still has one See Next Page 20120409-NEWS--0022,0023-NAT-CCI-CD_-- 4/5/2012 4:07 PM Page 2

April 9, 2012 CRAIN’S DETROIT BUSINESS Page 23

CRAIN’S MICHIGAN BUSINESS Advertisement From Page 22 grams, Consumers Energy and gan’s Renewable Energy Standard DTE officials say the bulk of their requirements, established as part renewable energy will come from of the Clean, Renewable and Effi- wind, because upfront capital Michigan Communities cient Energy Act, passed in 2008. costs are still higher for solar, Si- The law mandates that 10 percent mons said. Are Dancing To A of the state’s energy come from re- As for market conditions in the newable sources — including solar next few years, Ellebracht acknowl- — by 2015. edges that competition is likely to New Beat To achieve that standard, the increase for solar installation com- state’s electric providers, such as panies like Midland Solar. Our state is at the forefront of a national Consumers Energy and DTE, are The fact is that solar power, movement that embraces “placemaking” required to include renewable while viable, still requires incen- sources in their portfolios. tives and subsidies to make the policies in 21st-century planning. Michigan utilities are not re- price competitive with electric quired to supply a certain percent- power generated from traditional age of that renewable energy from sources such as coal-fired power The Michigan State Housing Development Authority (MSHDA) and Small plants, Ellebracht said. solar sources, “so that makes it a Business Administration of Michigan (SBAM) are among the organizations little bit dicier for solar,” Elle- In the interim, more business bracht said. failures are likely, said Stephen helping neighborhoods, cities, regions and downtowns promote “place” as a Along with the Consumers En- Forrest, vice president of research way to spur economic development and restore our state to prosperity. ergy program, Midland Solar Ap- at the University of Michigan in Ann plications offered solar installa- Arbor. Forrest is also a research What Is Placemaking? tion incentives through a DTE partner for New Jersey-based Glob- People, companies and talent do not move to speciﬁc communities – they pilot program called SolarCur- al Photonic Energy Corp. and on the move to regions. Thriving communities and successful regions are places rents. But that pilot program end- board of directors of Santa Clara, that are attractive to employees, places where connections can happen, Calif.-based Applied Materials, a ed in May 2011 after the DTE met where productivity and creativity increase, and where professional networks its goal of five megawatts of solar- supplier for solar manufacturers. generated power, said Scott Si- Despite some of the recent dark- foster collaboration and innovation. mons, a DTE Energy spokesman. er days, Forrest said, the future re- While in place, the program sup- mains bright for the solar industry. Our state is blessed with Pure Michigan plied installation incentives for It is, he notes, “the one truly un- “placemaking” success stories – from beautiful 620 homes and small businesses. limited source of energy we have Campus Martius Square in Detroit to the chic Despite these and similar pro- on the planet.” cafes and boutiques in Grand Rapids to the Upper Peninsula splendor of Presque Isle Park in Marquette.

We need more. Our job begins by working together to build quality places.

“The Power of 10” Any great city needs to offer at least 10 great places, each including at least 10 interesting things to do. A place to sit. Playgrounds to enjoy. Art to touch. Music to hear. Food to eat. History to experience. People to meet.

Ideally, these activities are unique to that particular spot and are interesting enough to keep people coming back. By starting placemaking at the smallest scale, it’s possible to accomplish big things.

We Need to Revitalize Michigan’s Sense of Place Powerful collaborative partnerships are underway to achieve Michigan’s placemaking objectives.

Proponents of these efforts will gather April 23-25 to address Michigan’s need for placemaking policy during the Building Michigan Communities Conference in Lansing.

With over 1,700 attendees, the Building Michigan Communities Conference has become the largest conference of its kind in the nation. The conference is attended by elected officials, service providers, nonprofit and for-profit developers, realtors and financiers.

Learn More Not attending the conference? No problem! On April 23rd, visit the debut of MIplace.org – Michigan’s one-stop shop for everything about placemaking – what it is, where it’s happening across the state, and how to get started.

The site offers inspirational ﬁrst-hand The Seidman College of Business accounts of Pure Michigan placemaking M.B.A. Programs success stories, rich photography and videos, and the opportunity to engage in lively group discussions through the MIplace Facebook page at facebook. com/MIplace2012.

Together, we can help shape Michigan’s future through placemaking.

Whether you have recently graduated from college or are seeking new SMALL BUSINESS AssociationA of MICHIGAN professional opportunities, adding a Grand Valley State University M.B.A. Focusing the power of small business. degree to your resume makes you a better-prepared and more desirable job candidate. Apply now to set yourself apart from the competition. To learn more about Michigan placemaking, go to: michigan.gov/mshda Call (616) 331-7400 or visit gvsu.edu/grad/mba to learn more. 20120409-NEWS--0024-NAT-CCI-CD_-- 4/5/2012 4:48 PM Page 1

Page 24 CRAIN’S DETROIT BUSINESS April 9, 2012 CRAIN’S MICHIGAN BUSINESS Group looks to make a splash by making Grand River more rapid

BY MATTHEW GRYCZAN tivities such as great fishing and along its banks. hind the dam, and the samples did CRAIN’S MICHIGAN BUSINESS kayaking would be occurring nat- “From the Fourth Street dam not show high levels of pollutants. urally in very public areas, such as down to Fulton Street, they essen- “It is a great opportunity for the A low-key but high-powered in front of” the DeVos Place conven- tially scoured out everything,” city of Grand Rapids, and it has a group of West Michigan influencers tion center. Muller said. “But we will restore number of pro-business compo- and business leaders thinks it’s time Through the newly formed West that section, which will make it a nents,” said VanGessel of Rock- to put the rapids back in the Grand, Michigan Environmental Leadership great spawning ground for all ford Construction. restoring a two-mile section of the Network, influencers such as Mike sorts of species of fish.” At the beginning of March, namesake river VanGessel, president of Rockford Plans call for removing the Grand Rapids Whitewater made a flowing through Construction Co. in Grand Rapids, Fourth Street dam, built more than presentation to the Environmental VIDEO downtown and Ellen Satterlee, CEO of the Wege 100 years ago to maintain water lev- Leadership Network, with some Crain's Grand Rapids to Foundation in Grand Rapids, have be- els but now without a commercial discussions of preliminary blue- talks with attract whitewa- gun conversations with business purpose. The dam concentrates prints and budgets. Stevens said Chris Muller ter enthusiasts. leaders and like-minded organiza- steelhead and salmon that migrate the preliminary plans were sent about his plans, Over the next tions to solicit financial support. upriver during spawning season, back to RiverRestoration for some crainsdetroit few months, a VanGessel, co-chairman of the making it a favorite spot for anglers scaling back, but the project could .com/video number of mov- network with Satterlee, said the and earning the city a place in a be bracketed in the $15 million-to- ing parts — in- JON BROUWER group of about 50 represents a vari- Field & Stream magazine ranking a $20 million range. fluential organizations, founda- Chris Muller co-founded Grand Rapids ety of metro Grand Rapids organiza- few years ago as one of the most That would put it on par with tions and city departments — will Whitewater with a goal of restoring tions and has begun to organize into popular U.S. fishing cities. higher-profile whitewater courses start assembling to raise funds for the natural flow of the Grand River teams to tackle the three main legs The RiverRestoration survey sprinkled throughout the country, through downtown. a $15 million to $20 million project of the restoration: whitewater also found an obscured treasure: a and one of the few that makes its expected to transform a section of “This isn’t just a ‘Let’s rearrange rapids, riverbank trails and rowing. river channel cut into the bedrock way directly through a larger city, Michigan’s longest river into a some stuff and put a boulder in He said the network is still wait- north of the Fourth Street dam to Muller said. churning whitewater course. here or there,’ ” said Mike Stevens, ing for the results of a $50,000 engi- the Ann Street bridge that will form S2o Design, a Lyons, Colo.-based But backers say the restoration president and CEO of Founders neering study conducted by River- cascades once the dam is removed. engineering firm that specializes isn’t just for paddlers. Pedestrians Brewing Co. in Grand Rapids and an Restoration.org in Glenwood “It will be phenomenal to look at,” in planning whitewater parks, will be able to meander along river- avid supporter of river restoration. Springs, Colo., which already has Muller said, “and you have just said larger parks such as the Yam- bank walkways after floodwalls are “It’s taking the Grand River as we submitted one plan with a budget gained another mile of historical pa River and Gore Creek parks in torn down. Anglers should see im- know it and returning it back to a based on an October river survey. rapids without a lot of work.” Colorado can generate more than proved catches, and amenities will wild, scenic river.” Muller, who founded Grand At about the same time that $4 million annually in direct be added to foster competitive and Said Chris Muller, co-founder of Rapids Whitewater with Chip RiverRestoration was conducting spending. Smaller venues such as collegiate rowing. a 501(c)(3) organization called Grand Richards, said the survey confirmed its survey, Farmington Hills-based the Cuyahoga River park in Kent, It may take three years to com- Rapids Whitewater that is a force be- what everyone had surmised: The NTH Consultants Ltd. was taking sam- Ohio, generate direct spending of plete the restoration after govern- hind the restoration: “It’s very rare section of the Grand River flowing ples of sediments behind the $500,000 to $750,000 a year. ment agencies approve engineering to have such a dynamic river run- through central downtown is “as Fourth Street dam. Matthew Gryczan: (616) 916-8158; plans, but high-quality projects ning through an urban core. flat as a tabletop” from more than NTH engineers found a surpris- [email protected]. Twitter: take time, proponents say. “The areas where you have ac- 100 years of exploitation by settlers ingly low quantity of sediments be- @mattgryczan

Your customers are GLOBAL. Need to gear up? 20120409-NEWS--0025-NAT-CCI-CD_-- 4/6/2012 11:05 AM Page 1

April 9, 2012 CRAIN’S DETROIT BUSINESS Page 25

Monthly Germany WHERE MICHIGAN DOES BUSINESS

motive services and arranges financing. Belfor Holdings Inc. ermany has long been Europe’s strongest Crain’s monthly World Watch re- Top executive: No top executive is based in economic power; it has a gross domestic Based: Birmingham port showcases companies that are Germany. G product of about $3.1 trillion — the fifth Germany operations: Twenty-six offices already international business largest in the world. throughout Germany, including those in leaders in growing global markets The country’s leading role does not always sit Syntel Inc. Hamburg, Aachen, Berlin and Frankfurt. — and those that are expanding op- well with its citizens, who have protested calls Employees: 425 erations. Based: Troy from eurozone finance ministers for Germany to Products: Services include building Each World Watch Monthly fea- Germany operations: Has sales offices in increase bailout funds for countries such as Italy, restoration, machinery restoration, fire and tures a different country. If you Munich and Stuttgart. Spain and Greece. water damage repair and data recovery. know of a Michigan company that Employees: Not publicly disclosed. Germany has a highly skilled, technologically Top executive: Elvir Kolak, managing di- exports, manufactures abroad or Products: Provides IT and business advanced workforce and exports vehicles, ma- rector. has facilities abroad, email Jennette process outsourcing services. chinery, chemicals, computers, electronics, phar- Smith, managing editor, at Top executive: Amit Chatterjee, senior maceuticals and metals. [email protected]. vice president and Europe head. France and the United States are Germany’s Coming up in May: A look at More information: Operates as Syntel Europe top export targets, whereas most of the country’s Chile and Argentina. Ltd. imports come from China.

Employees: 35 Products: Pizza chain restaurant offerings. Top executive: Lance Batchelor, CEO of Hamburg Domino’s Pizza Group Ltd. More information: Domino’s opened its Ger- Bremen many operations in 2010 and is expanding. Berlin BorgWarner’s plant in Kirchheimbolanden GERMANY Dow Chemical Co. Teutschenthal BorgWarner Inc. Bochum Based: Midland Böhlen Based: Auburn Hills Dusseldorf Germany operations: Dow Olefinverbund Aachen Cologne TRW Automotive manufacturing in Koblenz Germany operations: Eight facilities, in- GmbH, a wholly owned subsidiary of Dow Ger- Bonn cluding those in Heidelberg, Kirchheim- many Inc., has facilities in Böhlen, Schkopau, Koblenz Frankfurt Wiesbaden TRW Automotive Holdings Corp. bolanden and Neuhaus. Leuna and Teutschenthal. Mannheim Employees: Not publicly disclosed. Employees: About 1,900 Saarlouis Heidelberg Based: Livonia Products: Ignition technology, diesel cold- Germany operations: TRW KFZ Ausrüstung Products: Base chemicals used to produce Stuttgart start technology, turbochargers, dual-clutch a wide range of products. Baden Munich GmbH is headquartered in Neuwied, and has modules and other automotive systems. Top executive: Ralf Brinkmann, president 17 manufacturing sites in Germany, includ- Top executive: Robin Kendrick, vice presi- and CEO of Dow Germany. ing Düsseldorf, Koblenz and Wuescheim. dent and general manager of BorgWarner Employees: About 12,200 Transmission Systems; and Brady Ericson, and Eisenach. Products: Steering systems, brake parts, vice president and general manager of Borg- Dow Corning Corp. Employees: About 40,000 chassis modules and other auto parts. Warner BERU Systems. Based: Auburn Products: Vehicles under the Insignia, As- Top executive: Francois Augnet, vice presi- More information: More than 30 percent of Germany operations: Dow Corning GmbH is in tra, Zafira and Corsa brands. dent, TRW Automotive Aftermarket, Eu- the company’s 2011 net sales, or $2.2 billion, Wiesbaden, the site of one of Dow Corning’s Top executive: Karl-Friedrich Stracke, rope and Asia Pacific. came from Germany. largest manufacturing plants in Europe. president of GM Europe and chairman of More information: The bulk of TRW’s 2011 Employees: About 350 Opel’s board. sales — $8 billion, or 49 percent — are in Eu- Chrysler Group LLC Products: Liquid silicone rubber, high con- More information: Opel had a European rope. Its biggest customer is Volkswagen. sistency rubber and lubricants used in the market share of 6.1 percent in 2011, having Based: Auburn Hills automotive, electronics and construction in- sold more than 1.2 million cars. Trubiquity Inc. Germany operations: Fiat Group Automobiles dustries. Germany AG, the Frankfurt-based subsidiary Based: Troy Top executive: Elisabeth Ganss, managing Germany operations: The European head- of Chrysler’s Italian parent, Fiat S.p.A., shares director of the Wiesbaden site. Kelly Services Inc. platform technology with Chrysler for vehi- quarters is in Mannheim. There are offices Based: Troy in Bonn and Berlin, and a data center in cles sold in Europe. Other FGAG entities Germany operations: Kelly Services GmbH is build utility vehicles, buses, and construc- Ford Motor Co. Frankfurt. based in Hamburg and has operations in Employees: 42 tion and farm machinery. Based: Dearborn most of the major cities across the country. Employees: About 6,400 Products: A variety of software products Germany operations: Startseite Ford-Werke Employees: About 140 that serve the automotive, aerospace, manu- Products: Brands within FGAG include GmbH, or Ford of Germany, is headquar- Products: Offers recruitment services in Abarth, Alfa Romeo, Fiat, Fiat Professional, facturing, consumer goods, finance, energy, tered in Cologne and has a body and assem- temporary, contract and permanent roles in health care and retail industries. Jeep and Lancia. bly plant in Saarlouis. a wide range of industries. Staffing services Top executive: Martin Rada, market gener- Top executive: Peter Thurner, managing Employees: About 24,200 include finance, engineering, top manage- director. al manager. Products: Vehicles such as the Focus, C- ment, industrial, office and scientific. More information: There are about 410 com- Max C214 and Kuga, as well as vehicle com- Top executive: Ralf Heiden, general man- pany-owned dealerships in the country. ponents. ager. Valassis Communications Inc. Top executive: Bernhard Mattes, chairman, Based: Livonia Con-way Inc. Ford of Germany. Lear Corp. Germany operations: One office in Hamburg. More information: The Ford Research Cen- Employees: 15 Based: Ann Arbor ter in Aachen is Ford’s only research center Based: Southfield Products: Coupon settlement and analysis Germany operations: Menlo Worldwide Logis- outside the U.S. Germany operations: Operates in 19 locations, services. tics is the global logistics subsidiary of Con- including Munich, Bremen and Cologne. Top executive: Hans-Joachim Waldrich, way. It has operations in Frankfurt and Employees: About 5,500 managing director Berlin, and a warehouse in Sohren for auto- General Products: Seat systems, wire harnesses, motive customers. Motors Co. terminals and connectors, and electronics. Visteon Corp. Employees: 30 Top executive: Not publicly disclosed. Products: Supply chain management, from Based: Detroit Based: Van Buren Township sourcing of raw materials to the distribu- Germany opera- Germany operations: The European head- tion of finished goods. tions: Adam Opel Penske Automotive Group quarters are in Kerpen. A Berlin plant man- Top executive: Tony Gunn, managing di- AG, a wholly Based: Bloomfield Hills ufactures automotive interior components. rector in Europe. owned GM sub- Germany operations: Operates 38 dealer- Employees: About 800 sidiary, is based ships throughout Germany, including in Products: Interiors manufacturing, and cli- in Rüsselsheim. Frankfurt, Hamburg, Munich and Aachen. mate, electronics, and lighting engineering. Domino’s Pizza Inc. There are also Employees: About 250 Top executive: Joint managing directors Based: Ann Arbor production sites Products: New and used automobiles, par- are Nurdal Kücükkaya, Christian Feltgen Germany operations: Six pizza delivery General Motors’ Opel in Bochum, ticularly the Volkswagen, Toyota, Lexus and Thomas Penn. stores, mostly in Bonn. operations in Kaiserslautern Kaiserslautern and Audi brands. Provides a range of auto- — Compiled by Meghana Keshavan 20120409-NEWS--0026-NAT-CCI-CD_-- 4/6/2012 10:16 AM Page 1

Page 26 CRAIN’S DETROIT BUSINESS April 9, 2012 BUSINESS DIARY ACQUISITIONS Ross Mortgage Corp., Royal Oak, Aria On-Site. Telephone: (855) 261-2742. opened new offices at 7151 N. Main St., Website: www.ariaonsite.com. TriMas Corp., Bloomfield Hills, a diver- Clarkston, and 8235 Mason Drive, sified manufacturing holding compa- Suite A, Newaygo. Telephone: Clark- ny, acquired 70 percent of Arminak & NEW SERVICES ston, (248) 625-9929; Newaygo, (231) Associates LLC, Azusa, Calif., a manu- 452-6550. Website: www.rossmort Community Housing Network, Troy, facturer of packaging for cosmetics gage.com. has expanded its services to offer free and household products. It will become foreclosure counseling for homeown- a subsidiary of TriMas’ packaging seg- Metro Consulting Associates LLC, ers in Oakland and Macomb counties. ment, Rieke Corp., Auburn, Ind. Belleville, opened a new office at Telephone: (248) 928-0111. Website: 719 Griswold St., Suite 820, Detroit. www.communityhousingnetwork.org. Website: www.metroca.net. CONTRACTS Domino’s Pizza Inc., Ann Arbor, NSF International, Ann Arbor, an in- Children’s Hospital of Michigan Foun- launched its Android smartphone or- dependent organization that writes dering application, available in the dation, Detroit, has selected The standards and certifies products for Berline Group Inc., Bloomfield Hills, Android Marketplace. Website: food, water and consumer goods, www.dominos.com. as its marketing communications opened a new office in Frankfurt, Ger- agency of record. many, to offer services in Europe, the Hino Trucks, Novi, and Amthor Inter- Stout Systems Development Inc., Ann Middle East and Africa. Website: national, Gretna, Va., have formed a Arbor, signed agreements with Sam- www.nsf.org. tank-body program for the refined- sung Information Systems America, fuel, propane, fire prevention, San Jose, Calif., to provide software JOINT VENTURES vacuum/septic and all related tank in- design and development services. dustries. Website: www.hino.com. Sino Ambassadors, Detroit, a consul- Pi Innovo, Plymouth, an international tancy that provides capital and access designer and developer of electronics STARTUPS to China for U.S. tech firms, has systems, chose Broadsword Solutions LaborNow Inc., a construction, labor signed a memorandum of understand- Corp., Waterford Township, an engi- and skilled-trades worker staffing ing with Hua Gong Technologies, a neering consulting firm, to assist Pi company, 277 Gratiot Ave., Suite 520, Chinese manufacturer of high-end Innovo in pursuing its mission for Detroit. Telephone: (313) 475-3437. Continuity laser, optoelectronic and holographic continuous improvement, using the Website: www.getlabornow.com. Trusted for 70 years. We’ll be here for generations. equipment. The deal calls for a tech- Software Engineering Institute’s Ca- nology park to be built in Wuhan, the Vigilant Inc. a security company, pabilities Maturity Model Integration. capital city of Hubei province, central 277 Gratiot Ave., Suite 520, Detroit. Clear Vision Strategy LLC, Royal Oak, China’s manufacturing hub. Con- Telephone: (313) 475-3437. Website: We work with our clients and their advisors to: a business coaching firm, has joined struction will be a joint venture be- bevigilant.com. the Business Improvement Team LLC, tween Hua Gong Technologies and Reduce estate and income tax Enhance fixed income Bloomfield Hills, a consortium of in- Sino Ambassadors. dependent consulting firms. DIARY GUIDELINES yields Solve family and business issues Improve Ecology Coatings Inc., Warren, an- MOVES Send news releases for Business existing life insurance policies. nounced it is working with Whitlam Diary to Departments, Crain’s Label Co. Inc., Center Line, on the de- Ogletree Deakins Nash Smoak & Stewart PC, a labor and employment Detroit Business, 1155 Gratiot velopment of a sustainable labels Ave., Detroit, MI 48207-2997 or program. law firm, moved from Bloomfield Hills to 34977 Woodward Ave., Suite 300, send e-mail to cdbdepartments@ EXPANSIONS Birmingham. Website: www.ogle crain.com. Use any Business Diary treedeakins.com. item as a model for your release, Citistaff Inc., Troy, signed a five-year and look for the appropriate lease extension and expanded its facil- NAME CHANGES category. Without complete ity by 2,000 square feet. Citistaff plans information, your item will not run. BIRMINGHAM, MICHIGAN 248.731.9500 to add 10-15 employees for IT and ar- SFS Services, Ypsilanti, a provider of Photos are welcome, but we cannot chitectural services. Telephone: (248) cleaning, repair and fabrication of WWW.SCHECHTERWEALTH.COM guarantee they will be used. 267-9800. Website: www.citistaff.com. window blinds, changed its name to

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April 9, 2012 CRAIN’S DETROIT BUSINESS Page 27 Extra

People

Ⅲ Marsha Rappley, M.D., dean Coming together, going it alone of the Michigan State University College of Human Medicine, has been Medical group named chair elect for the Association of Insurers will come American Medical forms without “ Colleges Council of to us. ... The key is Deans, beginning in hospital affiliation Rappley November. to get that data and Ⅲ Kimberlydawn BY JAY GREENE Wisdom, M.D., has been appointed by CRAIN’S DETROIT BUSINESS be able to tell a story President Obama to serve as a member ncologist Jeffrey Margolis, known for through quality of the Advisory Group his business savvy as much as his on Prevention, Health O medical acumen, is behind what some Promotion, and say may be the first non-hospital owned, improvement and Integrative and integrated multispecialty medical group Public Health. in Michigan. cost reductions. Wisdom is senior “As health care changes, we need to pro- ” Wisdom vice president of vide higher-quality care and deliver care Jeffrey Margolis, M.D., Michigan community health in a more integrated way,” said Margolis, and equity for Henry Ford Health System, president of 3-month-old, Southfield-based Healthcare Professionals PC where she also serves as chief wellness Michigan Healthcare Professionals PC. “We officer. She is board certified in can do that (with less cost) as a physician- emergency medicine, was the founding led, physician-owned medical group.” director of the Institute of Multicultural Last December, Margolis’ Oakland Med- Health at Henry Ford, and is an ical Group joined forces with three other next year will be to fully connect the By agreeing to practice evidence-based assistant professor in the department of physician organizations — Millennium Med- groups’ more than half dozen electronic medicine and having patients on the same medical education at University of ical Group, Comprehensive Medical Center medical record systems electronic medical record platform, the Michigan Medical School. and 21st Century Oncology of Michigan — to and apply for financial physicians can eliminate duplication of Ⅲ Bernadette form Michigan Healthcare Professionals incentives from expensive laboratory and imaging tests Gendernalik, D.O., with more than 100 offices. Medicare and Medicaid and provide patient care coordination that has been named While the four companies have not to defray installation should improve quality and reduce costs, president and chief merged, they have combined operations costs. Margolis said. of the medical staff that include physician compensation, “We will allow each “In the past, each physician did their own at McLaren- medical billing, employee benefits, human specialty to choose their thing, ordered tests” and referred patients Macomb, a 288-bed resources and group purchasing, said own (electronic medical to other specialists and hospitals, said Mar- hospital in Mt. David Rogers, who represents Margolis record system),” Margo- golis, who said this practice had led to ineffi- Clemens that is part and is a partner with Royal Oak-based lis said. “Our job is to in- ciencies and runaway health care costs. of the McLaren Rogers Mantese & Associates PC. tegrate the (systems) Kopson Margolis said when Michigan Health- Health Care Corp. The medical group plans to combine with (a Health Level Seven International) inter- care has collected enough data to prove Gendernalik system. pension plans and jointly purchase med- face. We will then push the data into health better patient outcomes and lower costs, Gendernalik has practiced family ical malpractice insurance for its physi- information exchanges.” the group will be able to negotiate more fa- medicine at the hospital since 1988 cians this year, Rogers said. Another goal this year is for each spe- vorable rates with health insurers. and is an assistant professor in the Margolis said the medical group, which cialty to agree on common clinical best “Insurers will come to us,” Margolis said. Department of Family and Community now includes 250 employed physicians practices. “We don’t have a timetable. The key is to get Medicine at the Michigan State and another 850 employees, ultimately that data and be able to tell a story through University College of Osteopathic was formed to improve quality, reduce quality improvement and cost reductions.” Medicine. costs, contract with health insurers, devel- However, before medical groups can approach health insurers to negotiate prices, Ⅲ Two new members have been op joint business ventures and prepare for elected to the board of the Botsford health care reform. Kopson said, they need to be clinically and Hospital in Farmington Hills: Jerry Ellis, Mark Kopson, chairman of the health financially integrated. mayor of Farmington Hills between care practice with Bloomfield Hills-based Medical groups do this by adopting a 2007 and 2011, and Kathleen McCann, Plunkett Cooney PC, said physician employment chief judge of the 16th District Court in very few non-hospital model, conducting cen- Livonia. affiliated physician or- tralized billing and col- ganizations in South- lections, providing com- Ⅲ Barb Medvec, east Michigan are pur- mon employee benefits senior vice president suing a full integration and agreeing to best and chief nursing approach. clinical practice guide- officer at the “There are a lot of lines, he said. Dearborn-based physician organiza- “It is very difficult Oakwood Healthcare tions that are working for physicians to agree System, has been toward integration to on a common compen- awarded the become part of (Blue sation system,” Kopson Nightingale Award Cross Blue Shield of said, especially when for Excellence in Michigan’s) physician there are so many spe- Nursing group incentive pro- cialties involved. Medvec Administration. gram” or to become a Margolis said leaders Kari Szczechowski, R.N., also of patient-centered med- of the four medical Oakwood, was awarded a Nightingale ical home, Kopson said. groups spent a year Award for Nursing Education. But Michigan Healthcare may be the planning and developing the model for The Nightingale Awards are given by first in Michigan to pursue a fully inte- Michigan Healthcare. The groups already the Oakland University School of Nursing grated, non-hospital owned employed had agreed on compensation systems and and are the only statewide awards for medical group capable of fully contracting wanted a unified system to work, he said. nursing in Michigan. with insurers on prices, Kopson said. Margolis said one of the goals over the See Group, Page 28

JEFF JOHNSTON/CDB 20120409-NEWS--0028,0029-NAT-CCI-CD_-- 4/6/2012 10:22 AM Page 1

Page 28 CRAIN’S DETROIT BUSINESS April 9, 2012 Health Care Extra Group: Physician organizations unite without hospital backing ■ From Page 27 “We have many doctors who are and cardiologists) who do a lot of Chicago-based Advocate Health Care. that local institutions alone would visors, said small physician groups tops in their fields and are moti- work in hospitals,” he said. “We are In 2004, Advocate Medical ran not have access to,” Margolis said. and independent doctors will find it vated to control their own des- very heavy on subspecialists” in afoul of the FTC and was forced to Michigan Healthcare also oper- hard to fit in with health care re- tiny,” said Margolis, who also was Southeast Michigan, Kelley said. create a fully integrated medical ates a number of other ancillary form unless they join larger organi- president of Beaumont Oncology Net- Margolis said the group has a group. Since that time, many services, including imaging cen- zations to contract with payers. work, which until late last year strong base of primary care physi- groups have used its model. ters and laboratory services, Mar- “Hospitals can’t accomplish this held a contract to develop oncolo- cians who will help coordinate Being part of a single legal enti- golis said. Some other services are on their own. They need physi- gy programs at Beaumont Hospital care. ty eliminates the possibility of contracted out. cians and are trying to align them- in Royal Oak. Specialties in Michigan Health- price-fixing so long as the entity is- Margolis also said many of the selves with physician organiza- Mark Kelley, M.D., CEO of De- care include internal medicine, n’t so large it makes the market practices in Michigan Healthcare tions,” Colarossi said. “Physicians troit-based Henry Ford Medical family medicine, obstetrics, non-competitive. have been designated as patient- need to affiliate either with a hos- Group, a 1,200-physician employed surgery, radiation oncology, urolo- Kopson said there are likely centered medical homes with Blue pital or a larger medical group to model integrated physician group gy, cardiology, pathology, radiolo- enough competing physicians in Cross. A larger number also are in manage a population under bun- owned by Henry Ford Health System, gy, rheumatology and geriatrics. Southeast Michigan to avoid FTC the Blue Cross physician group in- dled payments.” said the key to success for Michi- Margolis said the group is likely market power challenges. centive program, or PGIP. One of the barriers for physician gan Healthcare will be if it can suc- to consolidate some of its 100 of- In a separate management con- Under PGIP, some 40 physician organizations that want to form cessfully negotiate prices with fices to integrate primary and spe- tract, Michigan Healthcare has organizations and 15,000 doctors in large medical groups is access to health insurers. cialist care. hired 21st Century Oncology to Michigan have qualified to receive capital. “There are a lot of large groups The primary reason for a med- oversee radiation management ser- bonus payments for hitting quali- “It is exceptionally expensive to that have loosely held ownership ical group to become clinically and vices in Michigan, Margolis said. ty, efficiency and administrative get positioned for electronic med- models that are pretty tight with financially integrated, as Michi- The corporate headquarters of targets. ical records, to transfer to ICD-10 governance and leadership but gan Healthcare has done, is to 21st Century is in Fort Myers, Fla. Margolis said future plans could (a new medical coding and billing keep their own compensation” avoid violating price-fixing laws Its separately incorporated Michi- include forming an accountable- system), to do contracting with packages, Kelley said. that are monitored by the Federal gan arm has combined with Michi- care organization to contract with bundled payments and capita- “If they are set up to provide val- Trade Commission and U.S. Depart- gan Healthcare, Rogers said. Medicare and private payers. tion,” Colarossi said. “This re- ue to the marketplace (and) are ac- ment of Justice, Kopson said. One advantage of contracting Looking toward the future un- quires you to have a very sophisti- countable for cost and quality, “The FTC considers individual with 21st Century nationally is der health care reform and ACOs, cated information system and they will have to pass FTC muster physicians who are in different pro- that the company is working with Kelley said health care organiza- experienced support staff.” as others have done,” Kelley said. fessional corporations to be com- Memorial Sloan-Kettering Cancer Cen- tions will be responsible for taking Colarossi said he expects many Michigan Healthcare also must petitors in the market. Antitrust ter and other hospitals to create a care of a population of patients. physician organizations will join have a large ratio of primary care law prohibits competing sellers new proton beam cancer center in “Once we get there, hospitals hospital-based health systems physicians to specialists, Kelley who are collaborating to fix prices,” New York, Margolis said. will no longer be revenue centers, rather than strike out on their said. Kopson said. “(This) allows Michigan Health- they will be cost centers,” Kelley own, as Michigan Healthcare ap- “The successful groups are al- Margolis said Michigan Health- care to participate in an even said. pears to be doing. most always light on subspecialists. care is modeling itself partly after broader range of cancer research Tony Colarossi, a partner in Jay Greene: (313) 446-0325, It is hard to do if the idea is to feed a Advocate Medical Group, an integrat- studies than would otherwise be health care consulting with South- [email protected]. Twitter: bunch of subspecialists (oncologists ed physician group owned by available, using national databases field-based Plante Moran Financial Ad- @jaybgreene

SERIES 9 HEALTH CARE TRANSFORMATION An Educational Series on Optimizing Health Care Value

The bottom line is transforming lives. Typically in my articles, I relate how we’re helping businesses achieve a better bottom line through better management of health care costs. This time, though, I would like to tell you about Joanne. Her story shows us how innovation helps the real bottom line—saving lives and families. A busy mother of three active boys, Joanne was diagnosed with cancer of the abdominal lining five years ago. Subsequent surgery was successful, but her prognosis was sobering. There was a 100 percent chance of the cancer coming back, which it did. Fortunately, Dr. Richard Berri, St. John Hospital and Medical Center chief of surgical oncology, was one of only a few surgeons in the country trained in a new treatment involving the use of hot chemotherapy. Called Hyperthermic Intraperitoneal Chemotherapy (HIPEC), this revolutionary procedure has applications for advanced cancers that have spread to the lining of the abdominal cavity, including colorectal, gastric, ovarian, appendiceal, and mesothelioma. The treatment involves surgically removing cancerous tumors and then bathing the abdominal cavity with a heated, sterile chemotherapy solution for up to two hours, killing remaining cancer cells without damaging normal cells in the body. Because the chemotherapy is delivered directly to the tumor, many of the side effects associated with intravenous administration of these powerful drugs can be avoided. We were the first to bring this life-saving, innovative treatment to Michigan, which had special significance for Joanne and her family. Tragically, during her fight, her husband passed away from stage IV esophageal cancer, leaving three boys with only one parent—Joanne. Bottom line? Transforming lives, one at a time. Stockc phoph toto: Gettyy Images

Dr. Maryland would be happy to hear your PATRICIA A. MARYLAND, Dr.PH thoughts and questions about health care reform. President and CEO of St. John Providence Health System Write her at [email protected]. and Ministry Market Leader, Ascension Health Michigan 20120409-NEWS--0028,0029-NAT-CCI-CD_-- 4/6/2012 10:23 AM Page 2

April 9, 2012 CRAIN’S DETROIT BUSINESS Page 29 Health Care Extra

Hospitals eye robotic ä7KHODUJHVWKHDOWKFDUHIRFXVHG ODZĆUPLQWKHQDWLRQ ä2YHU\HDUVLQWKHKHDOWK tech to cut expenses, ODZEXVLQHVV ä0RUHWKDQDWWRUQH\VVHUYLQJ KHDOWKFDUHFOLHQWV speed patient recovery ä5HSUHVHQWLQJRYHUKHDOWKFDUH RUJDQL]DWLRQVQDWLRQZLGH

BY JAY GREENE CRAIN’S DETROIT BUSINESS Using the (robot) Hospitals in Southeast Michigan “ are investing in the latest ro- gives botic surgery technology that offers a triple play: cutting patients back health care costs, reducing inpatient stays and trimming pa- more free tient rehabilitation time. Earlier this year, the 288-bed time; they McLaren Macomb Hospital in Mt. IF IT’S HEALTH CARE, Clemens bought the latest da recover more Vinci Surgical System from Sunnyvale, Calif.-based Intu- quickly. WE WILL BE THERE. itive Surgical Inc. — the $2.3 million ” da Vinci SI (Streamlined Integrat- Carol Fischer, ed) Dual Console High Definition McLaren Macomb Hospital system — that is used for a variety of procedures, including hysterec- than with the human wrist.” tomies, prostate surgery and car- Most other health care systems diovascular, thoracic and ear, in metropolitan Detroit use da nose and throat procedures. Vinci robots, including hospitals “Using the da Vinci gives pa- with the University of Michigan tients back more free time; they re- Health System, Henry Ford Health Sys- cover more quickly; there is less tem, Beaumont Health System and pain and less blood loss,” said Car- Oakwood Healthcare. 201 West Big Beaver Road | Suite 1200 | Troy, MI 48084 | 248.740.7505 ZZZKDOOUHQGHUFRP ol Fischer, D.O., an obstetrician- McLaren-Macomb also bought gynecologist at McLaren-Macomb in February one of only three who has performed more than 20 Makoplasty robotic devices in hysterectomies since November. Michigan, to conduct partial knee Fischer said recovery time with replacement surgery as an alterna- open hysterectomies or laparo- tive to total knee replacement, said scopies is six weeks. John LeFever, Mako’s regional “Now recovery is two to four makoplasty specialist, who has at- weeks,” she said. “We can do hys- tended the three surgeries at Ma- terectomies faster — in one hour comb this year. versus two to three hours.” The $1 million device made by Providence Hospital in Southfield Fort Lauderdale, Fla.-based Mako also has purchased the latest da Vin- Surgical Corp. allows orthopedic sur- ci robotic surgery system for the geons to conduct minimally inva- new Vattikuti Women’s Robotic Surgery sive surgery for adults with early to Have a specific need? Our candidates have specific training. Institute, said Lakshmi Gavini, a gy- midstage osteoarthritis on one side necologic surgeon at Providence. or the other of the knee, LeFever Last year, Providence Hospital said. It can be used in some cases of performed 280 gynecologic proce- knee cap degeneration. dures using an earlier-generation The other two hospitals that da Vinci. With the new da Vinci, have Mako are St. Joseph Mercy in Providence projects it will per- Port Huron and Spectrum Health form 550 procedures this year, said Center in Grand Rapids. Brian Taylor, media relations David Markel, M.D., chief of or- manager with Warren-based St. thopedic surgery at Providence John Providence Health System, the Hospital, said about 10 percent of hospital’s parent organization. his patients get partial knee re- To defray the $2.3 million price placement surgery. tag for the new da Vinci, Provi- “Partial knee is an attractive op- dence Hospital has received a do- tion for the right kind of patient. nation of $1 million from the Vat- You have to have the disease in tikuti Foundation. The Vattikuti one compartment and have good institute also includes Henry Ford ligaments,” Markel said. “If you Hospital in Detroit. get a partial and you get arthritis “We have a bold vision for sig- in the other (side of the knee) you nificantly growing robotic surgi- have to get a total knee.” cal services at Providence Hospital Markel said Providence doesn’t in Southfield and expanding it to use robotic implant technology for Providence Park Hospital in Novi,” knee or hip replacement. He said When you have a position to fill, you want someone Gavini said. the hospital could purchase one who’s qualified and ready to hit the ground running. The newest da Vinci offers a when other orthopedic vendors, Baker College’s HireQualified® can help. Our candidates dual console that allows either two including Kalamazoo-based Stryker are highly trained in very specific areas by instructors surgeons to simultaneously view and Zimmer in Warsaw, Ind., come who are working professionals. They know what’s the procedure with a camera or al- out with their versions. needed in their industries and teach practical experience lows the surgeon to train a medical “The key with implant technolo- — resident with the procedure, Fis- gy is if you don’t put it in the prop- over theory. The service is free the result is just the cher said. er alignments, the outcomes are person you are looking for. “You look through the console not good,” Markel. “There are tech- To learn more about how we can help you find the best and see a high-resolution image nologies coming out to maximize candidate for your needs, or to schedule a meeting at where with one hand you can grab the alignment and efficiency of the your place of business, visit HireQualified.com. the tissue and burn, and with the implants you are putting in.” Free recruiting services from other hand you can dissect,” Fisch- Jay Greene: (313) 446-0325, America’s leading career college. er said. “(Using the hand controls), [email protected]. Twitter: you have more degrees of freedom @jaybgreene T6376HQ 20120409-NEWS--0030-NAT-CCI-CD_-- 4/6/2012 10:26 AM Page 1

Page 30 CRAIN’S DETROIT BUSINESS April 9, 2012 Health Care Extra Stock market, rising costs batter Henry Ford, Oakwood

BY JAY GREENE growth and (a 3 percent increase) CRAIN’S DETROIT BUSINESS in patient case mix (more complex cases that generate higher rev- A sluggish stock market, rising enue),” Elsey said. uncompensated care, pension For example, nephrology cases costs and one-time write-offs drove grew 19.4 percent and infectious down net income last year for Hen- disease cases increased 9 percent, ry Ford Health System and Oakwood driving up Oakwood’s average Healthcare Inc. case complexity. In addition, or- Detroit-based Henry Ford last thopedic surgery, neurosurgery week reported a 64 percent de- and spine surgery cases have increase in net income in 2011 to creased 2.1 percent, 7 percent and 7 $21.5 million from $60.1 million in percent, respectively. 2010, said CFO James Connelly. In- Over the next several years, vestment income for the five-hos- Elsey said, a settlement with pital system declined 59 percent to Medicare on its family practice $26.5 million in 2011 from $65 mil- residency program will add $20.7 lion the prior year, he said. million in revenue. At Oakwood, the four-hospital, Oakwood’s expenses rose last Dearborn-based system’s net in- year by 5.8 percent, primarily become declined 66 percent to $16.8 cause it spent millions of dollars to million from $50.1 million in 2010. bolster its information systems Total investment income was $30.8 and on physician integration ef- million lower in 2011 than the pre- forts. Total pension costs also in- vious year, said Matt Elsey, Oak- creased $9 million last year. wood’s corporate controller. Oakwood’s uncompensated care Contributing to Henry Ford’s expenses rose only 8 percent in net income drop was a $19 million 2011 to $109 million from $101 mil- one-time write-off taken last year lion, Elsey said. More effective col- when it converted Henry Ford Ma- lections cut bad debt 10 percent to comb Hospital–Warren to a rehabili- $20.6 million in 2011 from $23 mil- tation center this month. lion the previous year. “Overall, we feel really good Henry Ford’s bottom line contin- about 2011, given the investment ues to be challenged by higher than income challenges and the impair- usual levels of uncompensated care. ment (write-off) charges,” said Bob In 2011, Henry Ford increased un- Riney, Henry Ford’s president and compensated care by 5.5 percent to COO. “We continued to move mar- $210 million, which includes $57.5 ket share and revenue.” million in charity care. Riney said the past two years “You go back five years, and have been transition years as the that number has doubled,” said system closed inpatient operations Connelly, who noted that if federal at Macomb Hospital in Warren health reform allows Michigan to and is investing $300 million in an expand Medicaid in 2014 by 500,000 advanced electronic medical people, Henry Ford could see some record information system. charity care reductions. Henry Ford’s net revenue in- On the other hand, CEO Nancy creased 2.5 percent to $4.2 billion. Schlichting said in a statement Growth from patient services that Henry Ford continues to in- and premiums through Health Al- crease market share above that of liance Plan of Michigan drove the its competitors. revenue increase, Connelly said. “Last year our admissions grew HAP acquired Dearborn-based by 1.7 percent to 101,336 total ad- Midwest Health Plan last year for $70 missions, the highest of any health million to expand into the growing system in Southeast Michigan,” Medicaid market. Schlichting said. Oakwood’s total revenue in- By comparison, hospital admis- creased 5.6 percent to $1.12 billion sions for the entire Michigan mar- from $1.06 billion, despite a 1.1 per- ket grew by 1 percent, according to cent drop in admissions. the Southeast Michigan Data Ex- “We saw strong outpatient change and reported by Henry Ford. St. John plans neonatal ICU expansion

The following are selected filings and decisions from March 1-31: CON Roundup Letters of intent: St. John Hospital and Medical Harper University Hospital, De- Center, Detroit: Remodel 5,400 troit: Add a fourth CT scanner, square feet to expand neonatal in- $905,953. tensive care unit, $12 million. PHI Air Medical LLC, Royal Oak: Church of Christ Care Center, Initiate an air ambulance service Clinton Township: Renovate the using one rotary wing air medical fourth wing of the nursing home helicopter, $564,600. with plumbing, electrical, heating, Filings approved: lighting and redecorating, University of Michigan Health $2.56 million. System, Ann Arbor: Upgrade a car- Madison Surgery Center LLC, diac catheterization laboratory, Madison Heights: Build a new op- $3.45 million. erating room, $2.07 million. University of Michigan Functional Applications received: MRI Laboratory, Ann Arbor: Expand Phoenix Medical Group PC, the laboratory for research pur- Southfield: Install a fixed CT scan- poses, $2.6 million. ner, $1.06 million. — Meghana Keshavan 20120409-NEWS--0031-NAT-CCI-CD_-- 4/6/2012 10:20 AM Page 1

April 9, 2012 CRAIN’S DETROIT BUSINESS Page 31

CALENDAR

Sam Homsy, director Army programs, tion: $189/day SAE Classic Member; members. Contact: Clarence Young, TUESDAY WARDS PRIL Navistar Defense; Ron Moffett, direc- $164/day SAE Premium Member; $139 (313) 872-7850; email: cyoung@ M&A A A 19 SAE Elite Member; $370/day non- APRIL 10 tor of MI Defense Office, Michigan adcraft.org; website: www.adcraft.org. Crain’s Detroit Business and the Ecomomic Development Corp.; Trevor member; free, SAE members and stu- Association for Corporate Growth- dent members; $25/three days non- Leveraging Technology & Standards Pawl, program director, economic de- Michigan Celebrates Small Business. Detroit Chapter member full-time student with college to Improve Supply Chain Performance. velopment, Detroit Regional Cham- 5-9:30 p.m. May 3. Michigan Small ID. Website: www.sae.org/congress. 6-9 p.m. APICS Association for Opera- present Crain’s ber; others. $45 MSED members, $60 Business Technology & Development tions Management Greater Detroit Mergers and nonmembers. Contact: Cheryl Dry, Center, others. With Ari Weinzwieg, Chapter. With Marilyn Smith, project Acquisitions (248) 643-6590; email: meetings@ Radio Day. 11:30 a.m.-1:30 p.m. April 24. co-founder and CEO, Zingerman’s lead for materials management opera- Awards 5:30-9 meeting-coordinators.com; website: Adcraft Club of Detroit. With Bob Community of Businesses, and others. tions guideline/logistics evaluation p.m. April 19 at www.msedetroit.org. Pittman, CEO, Clear Channel. San Lansing Center. $95; group discounts implementation, General Motors; Ter- the Somerset Inn, Marino Club, Troy. $35 members, $45 available. Contact: (800) 362-5461; ry Onica, automotive director, QAD Troy. website: michigancelebrates.biz. Inc.; and Dan Miller, CEO, Marshall Tee It Up for Business: A Woman’s nonmembers, $25 junior and student Electric Corp. Automotive Industry Awards will honor Guide to Breaking the Grass Ceiling. Action Group, Southfield. $20 mem- companies and 5:30-8 p.m. Inforum. With golf pro John bers, $30 nonmembers. Contact: (248) Valenti executives in four Jawor. Plum Hollow Country Club, 224-3951; website: apicsdet.org. categories: Best Deal of the Year, Southfield. $30 Inforum or Executive Work smarter for your business. Dealmaker of the Year, Women’s Golf Association members, Expansions, and Lifetime $35 guests. Contact: (877) 633-3500; WEDNESDAY Achievement, an award that will go website: inforummichigan.org. APRIL 11 to Sam Valenti III, executive chairman of TriMas Corp. and Hiring Our Heroes Dearborn/Detroit Job president and CEO of Valenti Adcraft PM ’80s Party Night. 7-11 p.m. Fair. 11 a.m.-3 p.m. The U.S. Chamber of Capital LLC. Live Nation Entertainment, Adcraft Commerce, Dearborn Chamber of Com- Club of Detroit. South Bar, Birming- Tickets are $60 for current CDB ham. Free. Adcraft member registered merce, and others. Ford Community subscriber, $55 groups of 10 or and Performing Arts Center, Dearborn. by April 11; $10 at the door. Website: Free. Contact: Jennifer Giering, (313) more or ACG members, $85 www.adcraft.org. 584-6100; email: jgiering@dearborn nonsubscriber, $84.50 special chamber.org; website: uschamber CDB subscription offer. For .com/hiringourheroes. information or to register, go to FRIDAY www.crainsdetroit.com/events. APRIL 13 THURSDAY Economy. 5-8 p.m. Marketing and Why Detroit? Why Now? 11:30 a.m.-1:30 APRIL 12 Sales Executives of Detroit. Panel dis- p.m. Detroit Economic Club. With cussion with Larry Hollingsworth, vice Walter Robb, co-chief executive offi- The Defense Industry in Michigan: president, strategic operations, DRS cer, Whole Foods Market. The Mason- New Opportunities in a Diversifying Signal Recording Technologies Inc.; ic Temple, Detroit. $45 DEC members; Size, comfort, value and versatility that drives your potential. $55 guests of members; $75 nonmem- The 2012 Sprinter Van — exclusively at Mercedes-Benz of Novi. Visit us today to bers. Contact: (313) 963-8547; see one of the area’s largest Sprinter inventories. email: [email protected]; website: www.econclub.org. Mercedes-Benz of Novi 39500 Grand River Ave. Novi, MI 48375 MONDAY 248-426-9600 (Sales & Service Available Now) APRIL 16 www.mercedesbenzofnovi.com MEDC Entrepreneurial Services Bus Tour. 11:30 a.m.-12:45 p.m. Michigan Economic Development Corp., and Ann Arbor Spark. Bus tour to most of Bring morale up. the “smart zones” in Michigan to discuss the opportunities to work with About thirty stories. these programs. Spark Central, Ann Arbor. Free. Contact: (734) 372-4071; Your Bank’s email: [email protected]; website: www.annarborusa.org. 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AutomotiveNext Inner Circle. 5:30-7:30 p.m. April 18. Inforum. With Maximil- iane Straub, CFO and executive vice president, Robert Bosch LLC; Nancy Rae, senior vice president, human resources, Chrysler Group LLC; and others. Walter P. Chrysler Museum, Auburn Hills. $25 Inforum members, ours are $35 nonmembers. Contact: (877) 633-3500; website: . inforummichigan.org. Call for a free consultation. Loan amounts: $1,000,000.00 and above. Thrills bring every group together. Optimize Your LinkedIn Profile Webi- nar — For In-House Counsel and Law s Investment Real Estate s Equipment Your employees will all feel the Firms. Noon-1 p.m. April 18. Crain’s s Owner Occupied Real Estate s Turnaround Consulting exhilarating g-forces. The excitement Detroit Business, Dickinson Wright s Lines of Credit s Loan Modiﬁcations of the water rides. And the powdered PLLC, the Association of Corporate s Accounts Receivable s Bank Workouts sugar of the funnel cakes. The very Counsel, Michigan chapter, State Bar things that make a group outing to of Michigan Business Law Section and Ajax Social Media. With Vincent Cedar Point in Sandusky, Ohio unlike Gatti, co-founder, Ajax Social Media. any other one. Visit cedarpoint.com/ Free, Crain’s Detroit Business readers. group-sales or call 1-800-448-2428 Website: crainsdetroit.com/events. to get your discounted tickets for your corporate group outing today. SAE 2012 World Congress. Events at various times. April 24-26. SAE Inter- 800.509.3552 national. Seminars and events around www.eclipsecapitalgroup.com the theme “get connected,” including 2207 Orchard Lake Road, Sylvan Lake, MI 48320 THRILLS CONNECT a “ride and drive,” banquet and career “Since 1997” fair. Cobo Center, Detroit. Registra- 20120409-NEWS--0032-NAT-CCI-CD_-- 4/6/2012 10:32 AM Page 1

Page 32 CRAIN’S DETROIT BUSINESS April 9, 2012 Job Front PEOPLE ONE HU G ND IN R T E A D R Y CONSTRUCTION Farmington Hills, B E

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L R from senior.

E S Jim Steiner to pro- IN THE SPOTLIGHT C 100 Michelle Van ject manager, Farmington Hills-Based Botsford Clark Construc- Goethem to direc- Health Care has named Regina tion Co., South- tor of internal au- field, from project Doxtader vice dit, Ally Financial manager, Skans- president and Inc., Detroit, from ka USA Building, CFO. Doxtader, audit manager. Southfield. Also, 45, had been Christopher Kelly Marcus Jackson Botsford’s vice to president, Com- to project engi- president and erica Charitable neer, from project assistant Trust, Detroit, Van Goethem engineer, Rock In- treasurer. remaining vice Steiner dustries, Pontiac. She succeeds president and senior philanthropic adviser, Comerica Charitable Ser- David vices Group, Detroit. ENERGY Marcellino, Brian Simmons to tax partner, Baker Rejji Hays to vice president, finance who is now Doxtader Tilly Virchow Krause LLP, Southfield, and treasurer, ITC Holding Corp., executive vice from shareholder and tax director, Novi, from assistant treasurer and di- president and chief administrative Doeren Mayhew & Co. PC, Troy. rector, corporate finance and finan- officer at Botsford. cial strategy, Exelon Corp., Chicago, Doxtader, a CPA, has a bachelor’s FOOD Ill. degree in economics and management from Albion College. Lauren Maloney to farm manager, ENGINEERING CityFarm Inc., Ann Arbor, from in- Col. Shaw Morrissey to executive di- Smith to vice president, ticketing, con- tern, Slow Food Huron Valley, Ann rector of business development, gov- sumer sales and service, from vice Arbor. ernment services, Waltonen Engineer- president, ticket sales and service, Min- ing Inc., Warren, from brigade nesota Twins, Minneapolis. GOVERNMENT 00 commander, 3rd sustainment brigade, Tom Casari to director of public ser- 3rd infantry division, U.S. Army, Fort FINANCE vices, Northville Township, from SAVE $100 OFF Stewart, Ga. Brad Southern to principal, UHY LLP, deputy director, Canton Township. Sterling Heights, from senior manag- ENTERTAINMENT er. Also, Todd Tigges to principal, INFORMATION TECHNOLOGY Scott Wruble to vice president of infor- Farmington Hills, from senior manag- Lisa Anderson to vice president of mation technology, Palace Sports & En- er; Brent Jones, Ibby Michalik, LaRae sales, OpTech LLC, Troy, from busi- tertainment LLC, Auburn Hills, from di- Mirovsky and Pat Wojcinski to senior ness unit director. rector of information technology, manager, Farmington Hills, from Detroit Tigers. Also, Michael Donnay to manager; Amanda Bertelsen, Tony senior director of brand networks, Colucci, Don Felmlee, Michelle Moore MARKETING from account manager, Goodby Silver- and Aaron Witalec, to senior manager, Jeff Voigt to senior vice president, me- stein & Partners, Detroit; Sean Hodg- Sterling Heights, from manager; Am- dia insights, W.B. Doner & Co., South- son to director, digital content, from vi- ber Clark, Andy Gilbert and Chris Lamb field, from senior partner, group com- sual creative manager, Weber to manager, Sterling Heights, from se- munications research director, J. Shandwick, Birmingham; and Steve nior; and Chris Duprey to manager, Walter Thompson USA Inc., Detroit. Optimize Your LinkedIn Proﬁ le HOSTS For In-House Counsel and Law Firms A sponsored webinar

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April 9, 2012 CRAIN’S DETROIT BUSINESS Page 33 With new Eastern Market home, Germack sees more than nuts in future

BY NATHAN SKID and the University of Michigan. CRAIN’S DETROIT BUSINESS However, its biggest customer is I think we can be home shopping network QVC, a When Elyse and Frank Germack “ subsidiary of Douglas County, III, owners of Detroit-based Germa- a niche supplier of Colo.-based Liberty Media Corp. ck Pistachio Co., decided to move Sales from QVC make up about the 88-year-old company a quarter fresh roasted 25 percent of Germack’s total rev- of a mile up the road in Eastern enue. Its biggest seller on QVC is Market, they did so with an eye on coffee. the Cherry Berry mix, which QVC the future. ” sells in packages of three 16-ounce Germack’s new home, at 2509 Frank Germack III, jars for $39.75. Russell St., is a lot smaller than its Germack Pistachio Co. Germack started out selling its predecessor, but the layout al- 5-pound bags of pistachios on QVC lowed the company to build a mul- 2010 he sold it to us.” in 1997. It has become the second- ti-unit complex of businesses, in- The Germacks spent about largest seller of snack foods by cluding a coffee roastery and café, $500,000 renovating the 4,000- way of television. a retail chocolate and nut shop, square-foot building, which houses “That is a size most people don’t and a spice store. new product lines Germack Coffee expect to see for pistachios, so it The building formerly housed Roasting Co. and Germack Trading Co. came across as unique, Frank Ger- Rafal Spice Co., which closed in Before the move, Germack was mack said. “From there, we moved February 2009. using about 2,000 square feet of a into mixes that are not found in “I hounded Don Rafal,” Elyse stores.” NATHAN SKID/CRAIN’S DETROIT BUSINESS 27,000-square-foot building at the Co-owner Elyse Germack says retail sales have increased significantly since Germack said of Rafal Spice’s for- south end of Eastern Market, in an QVC features Germack products Germack Pistachio Co. moved into its new home at 2509 Russell St. in Detroit’s mer owner. “I kept calling and call- area neglected by many Saturday about 10 times a month. Eastern Market. ing about the space, and finally in shoppers. Germack’s manufacturing facil- “The location was one of the dri- ity, located on the outskirts of vers,” Frank Germack said. “East- Eastern Market at 2140 Wilkins ern Market is going through a lot St., currently has 20 employees. of development, but it was occur- The company produces about JOB FRONT ring at the opposite end of where 3,000 pounds of dry roasted nuts we were.” and seeds a day, and its top-selling Germack said the company is item is roasted squash seeds. MANAGEMENT POSITIONS AVAILABLE moving into the coffee roasting While Germack is looking to ex- Seeking Relationship Manager business, which he says is not that pand its product offerings, John different from roasting nuts. The Koscovitch, marketing manager Looking for a Relationship Manager. Someone company is currently roasting for Madison Heights-based Kar’s who has the capabilities to provide introductions REFERRERS: EARN A beans in a used coffee roaster pur- Nuts, said Kar’s is having a hard chased for $8,000. time keeping up with demand for to affluent families. Part time $75,000 - $100,000. “We have been using modified its current line of snack mixes. Please email me at [email protected] coffee roasters for our nuts since we “We have our hands full now,” started Germack Pistachio Co. be- Koscovitch said. “We have no inten- cause that was the only equipment tion of doing anything that takes MARKET available,” he said. “Coffee roasting away from our objective to develop CASH BONUS requires the same kind of adjust- mom-friendly snack products.” ments in time and temperature, the Revenue for Kar’s Nuts was PLACE same way nuts and seeds do.” $72 million in 2011 and is expected up to $4,000 when a hire is made Germack said the company to reach $86 million in 2012. EQUIPMENT & plans on being more of a small- Koscovitch says the company will MERCHANDISE scale artisan coffee roaster, but he continue growing by about 20 per- wants to eventually roast beans on cent for the next few years. OFFICE FURNITURE a contract basis for local business- “We have the facility, capacity es and restaurants. and the means to meet those sales Office Furniture Warehouse Blowout “I think we can be a niche sup- objectives,” he said. Desks/files/chairs/tables/ starting at $25 We buy/sell nice executive furniture plier of fresh roasted coffee,” he But Frank Germack said roast- Search Craig’s List 248-548-6404 said. “The taste of freshly roasted ing coffee beans is a perfect fit for coffee is very different.” the nation’s oldest roaster of pista- Call or email today for information Germack expects the coffee roast- chio nuts. on a custom advertising plan! |JOB FRONT ing line to make up about 15 percent “We felt that coffee was a comple- of the company’s total revenue, mentary product to nuts, and we felt [email protected] crainsdetroit.com/jobfront which hovers around $7.5 million. we can benefit from that,” he said. 313.446.6068 Germack may be best known for “We hope to use our distribution its roasted peanuts sold at all four network for our coffee beans, too.” professional sports stadiums in Nathan Skid: (313) 446-1654, metro Detroit, as well as major [email protected]. Twitter: REAL ESTATE universities including Notre Dame @nateskid

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Page 34 CRAIN’S DETROIT BUSINESS April 9, 2012 Early version of legal document service may go online in 60 days, hire staffers

BY CHAD HALCOM bility, Social Security disability The firm is still considering CRAIN’S DETROIT BUSINESS benefits, labor and employment whether to bundle the consultation law, property tax appeals and oth- with the document fee or charge a Southfield plaintiff civil litiga- er matters, and offers some refer- separate fee for it, Kresch said. tion boutique 1-800-Law-Firm PLLC rals to other plaintiff firms. An early version of the site, could go live with an early version Kresch said he will fill the ex- which Kresch declined to name, of its planned online legal docu- panded space along Lahser Road will probably go live with a small ment generation service within 60 between I-696 and the Lodge Free- offering of simple legal documents days, founder and CEO Ari Kresch way in part with IT staff, attorneys for free download. It will later ex- predicts. and other employees to help man- pand to offer more involved con- The firm expects to more than age a new online document genera- tracts and other documents for a double its current staff of 40 in the tion project akin to LegalZoom or fee, help navigate other services next year. It moved a few weeks StandardLegal.com. like developing a wealth transfer ago from a 5,000-square-foot office “We’re doing a lot of software de- strategy and help customers get in on Southfield Road into 29,000 velopment related to that site,” touch with experts. square feet of space formerly occu- Kresch said. “And while we’re Kresch also expects to add a new pied by World Wide Financial Corp., building a document generation transactional law practice to the also known as LoanGiant.com. portal, it’s going to be a step above. firm and include studio space to LoanGiant was closed by regula- You’ll be able to craft your own doc- develop instructional video mate- tors in 2006. ument, but you’ll also be able to con- rials and class space for possible Founded in 1994, 1-800-Law-Firm nect with someone here for a (con- instructional sessions on immigra- represents plaintiffs in product lia- sultation) before you finalize it.” tion law. City: Ballot drive is key Judge rules against ■ From Page 1 Nissan dealership ing table. If neither Public Act 4 nor Pub- Dearborn-based Superior Nissan Regardless of state law, a finan- lic Act 72 is in effect, then there is has been underperforming in vehi- cial emergency exists in Detroit, no mechanism for a bankruptcy cle sales, and Nissan North America said Geralyn Lasher, Snyder’s di- filing or timely way to change Inc. has good cause to terminate its rector of communications. And if work rules and compensation for agreement with the automaker, a cuts can’t be made through union unionized workers. federal judge has ruled. concessions, she said, the city “The dollar amounts they need U.S. District Judge Marianne Bat- will have to find efficiencies else- in order to right the ship are tani found Superior failed to meet where. greater than what can be given its obligations under a sales and ser- Al Garrett, president of Michi- up by any of the employee vice agreement the dealer has had gan Council 25 of the American groups,” said Deputy Oakland since 2001 and ruled in favor of Nis- Federation of State, County and Fed- County Executive Robert Dad- san, dismissing a 2008 lawsuit. eral Employees, told the Detroit dow. “Meaning they’re going to Superior and its president, Wal- City Council last week that he’s have to get some external rev- ter Schwartz, who also owns neigh- unwilling to return to the bar- enue or have wholesale restruc- boring Superior Buick-GMC Inc. along gaining table in the near future. turing that may only be available Michigan Avenue in Dearborn, filed “As long as I am president of under Chapter 9.” suit alleging breach of contract, AFSCME, we will not be back at And if the city can’t file for along with violations of the Michi- the table prior to the expiration bankruptcy, “then they are pret- gan Motor Vehicle Dealers Act and of our contracts,” he told the ty much in trouble,” Daddow the federal Dealer Day in Court Act. council last week. said. “They’re going to have prob- Nissan held off on implementing lems in making payroll because its notice of termination while the More complications the numbers no longer work.” court case was pending and is con- If PA 72 is challenged, Buss sidering its options now, said Lack of control over labor costs said, it’s likely the Legislature Thomas Wienner, partner at isn’t the only complication that will act. Rochester-based Wienner & Gould would rise if PA 4 is suspended. “If for no other reason than to PC, who represented Nissan. Snyder and state Treasurer protect the progress the existing Schwartz said Friday the Nissan Andy Dillon — along with Attor- emergency managers (in other dealership remains open, but he ney General Bill Schuette — hold said he plans to appeal Battani’s rul- the opinion that Public 4’s prede- cities and school districts) have ing. cessor act, Public Act 72, which made,” she said. “Otherwise they — Chad Halcom doesn’t allow a manager to im- have no authority, and mayors, pose union contracts, would take city councils and school boards effect. in other districts would reassert If that were the case, Snyder control.” could order another financial re- Terry Stanton, director of com- view and appoint a financial munications for the state Depart- BANKRUPTCIES manager who could initiate a ment of Treasury, declined to bankruptcy filing. comment on any fall-back legisla- The following businesses filed for But some expect that lawsuits tion, saying he “can’t and won’t Chapter 7 or 11 protection in U.S. would be filed to challenge speculate on hypotheticals and Bankruptcy Court in Detroit March 30- what-ifs.” April 5. Under Chapter 11, a company whether Public Act 72 takes ef- files for reorganization. Chapter 7 in- fect, which would raise more A bill that’s passed the state volves total liquidation. Senate would provide a transi- questions about the city’s op- Beaty Brothers Inc., 19305 Elwell tions. tion plan for local units of gov- Road, Belleville, voluntary Chapter 7. The federal bankruptcy code ernment in which an emergency Assets: $100; liabilities: $313,350. requires states to have enabling manager has been appointed, but Euro-Tech Motorcars Ltd., 31171 legislation under which local wouldn’t affect Detroit. Stephenson Highway, Madison units of government can file for Buss said the Legislature could Heights, voluntary Chapter 11. bankruptcy protection, said Bet- re-adopt the language of PA 72, or Hudson Property Group LLC, dba LEC tie Buss, a senior research ana- attempt to modify PA 72 to mirror Properties Partnership, 21411 Civic Center Drive, Southfield, voluntary lyst at the nonpartisan Citizens PA 4, which could have legal con- Chapter 11. Assets and liabilities not Research Council. sequences. available. Buss said that route in Michi- “We’re in pretty uncharted ter- Westridge Office LLC, 70 W. Long Lake gan is through appointment of an ritory here,” she said. Road, Suite 114, Troy, voluntary Chap- emergency manager, who can Nancy Kaffer: (313) 446-0412, ter 11. Assets and liabilities not avail- ask the governor for permission [email protected]. Twitter: able. to file Chapter 9 bankruptcy. @nancykaffer — Meghana Keshavan 20120409-NEWS--0035-NAT-CCI-CD_-- 4/6/2012 4:48 PM Page 1

April 9, 2012 CRAIN’S DETROIT BUSINESS Page 35 Skilled: Jobs hard to fill Realestate: ■ From Page 1 vs. coming tsunami.” He said that Of the 10 non-skilled workers Signs of life while the industry should have Diversified hired this year, three been prepared, it failed to main- are in a skilled trades program at ■ From Page 3 tain training programs. Macomb Community College. negative absorption, according to “We had this Despite Diversified’s efforts, a Crain’s analysis of data from great labor there are openings every day in its Washington, D.C.-based CoStar pool, but the machine shop, Stevens said. Group Inc. THUR, APRIL 19 • 7:05 unions, manu- “We (as an industry) need to in- And what’s more, real estate facturers and spire young people in these brokers say, the region’s 27-per- educators were FRI, APRIL 20 • 7:05 trades,” he said. “There are less cent vacancy rate means more not thinking demanding jobs out there that space still needs to be filled before forward enough need no skill, but there’s also no there is a scarcity of space that will to see what the SAT, APRIL 21 • 1:05 opportunity in those positions. trigger an increase in rental rates. tsunami was go- The skilled trades used to be the The current asking rate of $17.89 2012-132 Wall Calendar to ﬁrst 10,000 fans. ing to be in the step to engineering and manage- Tomlinson per square foot, according to skilled work- ment.” CoStar, is a 10-year low. force,” Tomlinson said. Skills become more niche-ori- Brian Schwartz, a vice presi- Tomlinson said the foundation ented as the industry continues to dent with Colliers, said that cur- for the shortage goes back to the use technology advancements, rent proposals he has received late 1970s. and there’s a need for consistent from landlords is showing a “Education began to focus on col- retraining, said Kristin Dziczek, slight improvement over current lege prep more, and the amount of director of the labor and industry levels. people going the vocational path group at Ann Arbor-based Center “But it’s still aggressive, and declined through the late ’70s and for Automotive Research. rates are very low historically,” ’80s, and those programs began to “Ten years ago, we had twice as he said. SUN, APRIL 22 • 1:10 disappear,” he said. “Parents dur- many people in the industry,” she Most of the office deals in 2011 ing that time suffered a lot of job said. “Some have retired, moved have been companies either ex- Sunday Kids Day losses in automotive as the process away or otherwise moved on. But panding or consolidating offices All kids 14 and under receive a Scoreboard Photo Frame. became more automated, and they it’s not like everybody that’s left into one, larger, office space. didn’t want that for their children.” got stupid overnight. These are Among the recent office deals Dearborn-based Henry Ford Com- critical needs in very niche areas, was an expansion of Troy-based munity College works with 22 area and workers need help getting to a Flagstar Bank. The company high schools in technical training, full skilled trade toolbox.” signed a 95,000-square-foot lease but its apprenticeship program Chrysler Group LLC and the UAW in January at the Troy Officentre has dropped to 250 students from announced earlier this year an ef- complex near its headquarters. 1,800 in 2004, said Tricia fort to retrain their workforce to In Farmington Hills, there was Llewellyn, director of workforce meet the demands of skills-based a 90,000-square-foot lease by Pana- development at HFCC. jobs. sonic Automotive Systems Company “The young people aren’t that The automaker renovated of America at 31701 Corporate Dri- 866.66.TIGER866.66.TIG866.66.TIG6.TIGEERR interested in this type of work 25,000 square feet of its UAW ve as the company consolidated anymore,” Rowe said. “There’s training center in Warren with several of its offices around town such an emphasis on a college ed- classrooms and high-tech tools. into one larger office. ucation that society puts a greater Llewellyn said industry needs value on a graduate with a liberal The Detroit office market has are exceeding the number of stu- arts degree that has no job posted positive absorption in past dents in those programs. prospects than a trade school quarters but saw a negative move “The lack of students is affect- graduate that’s in demand.” attributed to Dallas-based Comer- ing the pipeline,” she said. “We’re Many suppliers used to find fighting a stereotype and trying to ica Bank’s move out of the One skilled laborers coming out of ap- tell people that the auto industry Detroit Center office tower. That prenticeship programs run by the is alive and well and is a great building, however, also saw the automakers. But automakers be- place to work, with well-paid, sus- lease of 25,000 square feet to Aegis gan to close their in-house tool tainable jobs.” Group’s Carat advertising compa- and die shops at the turn of the Skilled laborers currently aver- ny. millennium for cheaper solutions age between $18 and $28 an hour, Also making an impact is an in China, ending most apprentice- suppliers said. Dziczek said that’s expansion by Auburn Hills-based ship programs. too low to attract educated and Chrysler Group LLC, which leased General Motors Co., for example, trained workers, comparing the 147,000 square feet at 2301 Feath- operated five tooling plants in the labor shortage to parts shortages. erstone Road, a building the com- 1990s. It’s now down to one. pany was forced to sell during its According to the Deloitte sur- “If there was another shortage to another input, like steel, you’d bankruptcy. vey, 56 percent of respondents ex- Noteworthy, also, was the expect the shortage to increase over have to pay more and adjust,” she said. “With skilled labor, there is pansion of the headquarters for the next five years. Pet Supplies Plus into a 33,000- Madison Heights-based Diversi- no substitute, and niche areas are going to have to pay better than square-foot space at 17197 N. Lau- fied Tooling Group Inc. — which op- rel Park in Livonia. erates four plants in Michigan — areas in less demand.” Tomlinson disagrees that wages The leasing activity is a good went proactive to fill its skilled la- sign, but it also signals that the bor shortage. are too low. “The market will drive the vacant cubicles in many offices Diversified Tooling hired 12 in- are now being filled, said Gary terns from Macomb Community Col- price, so I think the wages aren’t artificially low,” he said. “But if Goodman, managing director of lege’s skilled trades program last brokerage service for Farming- summer. Diversified’s plan is to the workforce isn’t there and the skills sets aren’t there, the price ton Hills-based Friedman Integrat- train the students during the sum- ed Real Estate Solutions — which mer and then hire them full time will go up.” was a broker for both the Pet Sup- upon graduation, said Mark Mark Schmidt, president of Ro- plies Plus and Chrysler deals. Stevens, vice president of manu- seville-based Atlas Tool Inc., said In addition to bigger deals, the facturing and engineering. the toolmaker simply can’t pay smaller deals such as San Fran- “We expose them to areas of more because of depressed earn- cisco-based Twitter moving peo- trade during the summer and ings. Business is up 25 percent ple to Detroit, are having an im- make them an offer before they’d this year for Atlas, but its margins pact on peoples’ attitudes. be out looking for a job,” Stevens remain low because of the recent “We’re starting to see more in- said. recession. terest from out-of-town in- Of the 12 interns from last sum- “We had a lot of years of losses,” vestors,” Goodman said. “There mer, two graduated last year and Schmidt said. “We pay less than are working full time at Diversi- we used to, but the reality is we are deals that are opening peo- fied, which employs more than 200 can’t pay more because profits ples’ eyes and showing that skilled laborers. aren’t what you’d expect with there’s really something to this Diversified also pays for people tremendous cost pressures as idea of Detroit as a home to tech in the non-skilled workforce to go business comes back.” companies.” back to school, if they demon- Dustin Walsh: (313) 446-6042, Daniel Duggan: (313) 446-0414, strate an ability to learn the trade, [email protected]. Twitter: [email protected]. Twitter: Stevens said. @dustinpwalsh @d_duggan 20120409-NEWS--0036-NAT-CCI-CD_-- 4/6/2012 4:48 PM Page 1

Page 36 CRAIN’S DETROIT BUSINESS April 9, 2012 Food: Charities hash out agreement on collection, distribution ■ From Page 3 Until a new agreement is com- ten transfers perishable food that pleted, the two it collects to Forgotten Harvest. continue to op- Forgotten Harvest begins job training, mulls Ontario warehouse Nearly 30 percent of the 40.5 mil- erate under the lion pounds of food that Gleaners Forgotten Harvest has launched Safety Inc., which has offices at ics producers in southern Ontario 2009 pact. a pilot program to train people for Forgotten Harvest’s Oak Park in 2007, created an independent distributed during calendar 2011 “Produce is jobs in the food industry that re- site. Students spend the rest of the Canadian nonprofit last May. had a shelf life of three weeks or seen as one of quire knowledge of food safety. day helping to sort and repackage The Canadian nonprofit, which less. Nine percent, or 3.6 million the areas of our Separately, the food rescue’s perishables at the nonprofit. also operates under Goodell’s di- pounds, had a shelf life of one to growth by mem- Canadian affiliate is considering In addition to readying people rection, accounts for the food it seven days. bers nation- a new distribution warehouse in for jobs, the program will help rescues separately. In 2010, food with a shelf life of wide,” but both Ontario. meet the need for 42-52 volunteers Since July 2011, Forgotten Har- three weeks or less made up only local organiza- Forgotten Harvest this year be- per day, Goodell said. vest Canada has forged relation- about 22 percent of the 36.8 million Wells tions “are at the gan a three-month-long job train- Forgotten Harvest hopes to en- ships with 18 Canadian distribu- pounds distributed, while food mercy of what the farmer pro- ing program with about six peo- roll about 30 people in the pro- tion agencies serving Essex County lasting from one day to a week duces,” Wells said. ple. J.P. Morgan Chase & Co. gram every three months. in Ontario and has distributed as made up 8 percent of its total. Additionally, many businesses provided a $25,000 grant to launch Also, Goodell said the agency’s much food as they could accept, Gleaners transferred 887,650 and organizations contribute the program. Canadian affiliate, Forgotten Har- more than 70,000 pounds, said Russ pounds of the food it collected dur- shelf-stable and perishable food to “It gets people out of poverty, vest Canada, is considering Russell, chief development officer ing fiscal 2011 ended Sept. 30 to both agencies. helps people who need food and whether to establish a distribu- for Forgotten Harvest. Forgotten Harvest. For example, some local farms helps with our (operating) needs,” tion warehouse in Ontario to Forgotten Harvest has brought It’s up to the two food agencies are donating food to Oak Park- said President and CEO Susan El- meet its growing efforts there to more than 2 million pounds of to decide which products each will based Forgotten Harvest by allow- lis Goodell. rescue and distribute food from food back across the border to source and distribute, said Paula ing its volunteers to glean leftover Participants get about a half hydroponics producers. metro Detroit pantries and shel- Thornton Greear, vice president of produce from the field, while at the day’s worth of classroom training Forgotten Harvest, which be- ters, Russell said. communications at Feeding Amer- same time growing many of the from Ypsilanti-based Pic Food gan rescuing food from hydropon- — Sherri Welch ica, in an email. same types of food for Detroit-based At a time when need is high, the Gleaners for an average cost of 17 association’s food bank and food cents per pound. Other farms are see a mix of the types of food coming Goodell said. sorting, repackaging and refriger- rescue members must continually donating surplus crops to Gleaners to them, as the availability of fresh Gleaners acquired food rescue ation or freezing before delivery. look at their business and operat- or Forgotten Harvest individually. and perishable foods for donation operations through its 2002 merger The nonprofit counts canned ing model to ensure they are sourc- So deciding what types of food outpaces shelf- with the Livingston Community Food goods and non-food items such as each agency can collect is not nec- stable items, and Bank. laundry detergent it transfers to ing and distributing as much prod- essarily the best way to divide ser- as donors mix While it collects perishable food Gleaners for distribution among uct as possible in the most efficient vice in overlapping areas, Wells the two types of in Monroe and Livingston coun- the pounds of food it collects. way, she said. said. food. ties from grocery stores and other About 8 percent of the 23.2 mil- “This is just good business sense Traditionally, Gleaners has fo- “If Forgotten sources, it brings that food back to lion pounds of food Forgotten Har- to ensure they are doing all they cused primarily on warehousing Harvest was do- its warehouse, refrigerates it as vest collected in its fiscal 2011 end- can to address the growing need. shelf-stable items such as canned ing a fundraiser needed and contacts the shelters ed June 30 was non-perishable, The local agreement is the way in and dried goods and produce with with an organi- and pantries it serves to pick it up. and another 1 percent wasn’t food. which the two members can docu- a long shelf life, and Forgotten zation … and Forgotten Harvest delivers The agency transferred 251,000 ment how they will meet the chal- Harvest has rescued highly perish- they want to do about 80 percent of the food it picks pounds of non-perishable food to lenges most effectively.” able foods and delivered them to a food drive, too, Goodell up directly to shelters and Gleaners last year. Sherri Welch: (313) 446-1694, local pantries and shelters. it’s very hard to turn (that) down,” pantries. The remainder goes back Likewise, Gleaners is also see- [email protected]. Twitter: But the two agencies increasingly President and CEO Susan Ellis to its Oak Park headquarters for ing a shift in its mix of food and of- @sherriwelch Museums: Upgrading, growing so they don’t become history ■ From Page 3

$400,000 from Detroit-based PVS manent and temporary exhibits. Prechter, founder of sunroof pio- Chemicals Inc. and $385,000 from Installation of a new boiler neer ASC Inc., and Veronika Scott, ‘Frontiers to Factory’ exhibit calls on biz DTE Energy Foundation. and other upgrades at the Collec- creator of the Element “S” Sleep- The society reported an operat- tions Resource Center, along with ing Bag Coat for the homeless, and The Detroit Historical Society is as business cards and stationery. ing excess of $1.4 million on total digitizing of about 250,000 historic their innovation processes. putting the call out for Detroit’s All company submissions must unrestricted revenue of $4.6 mil- artifacts, ranging from automo- “The Underground Railroad,” oldest continuously operating be received by June 29 for poten- lion in fiscal 2011, compared to an biles and boats to costumes and an experiential exhibit in the style companies in an effort to expand tial inclusion. excess of $396,000 on revenue of clothing to more recent artifacts of the “Streets of Old Detroit” in its “Frontiers to Factory Exhibit” The society is also seeking pho- $3.2 million in fiscal 2010. like the old Tiger Stadium score- which visitors can walk through at the Detroit Historical Museum. tographs of Detroiters with their Net assets totaled $8.1 million at board and letters and paneling and see what it was like to be a Specifically, the museum is favorite cars for possible use as it the end of last year, up from $5.4 from its executive office. slave seeking freedom in Canada looking for companies that were updates its “Motor City” exhibit. million in fiscal 2010. The society plans to add the through Detroit. established before 1901. It plans to create a digital ver- The museum is operating on a Allesee Gallery of Culture to the At the Dossin museum, the soci- The exhibit highlights some of sion of the “Sold” wall display at two-year budget of $12.8 million for Detroit Historical Museum’s ety plans to transform the largest Detroit’s longest-running busi- the museum that has featured this year and fiscal 2013 ended Round Hall. The gallery is named gallery — now named the Marlene nesses — some operating, some photos of residents with their fa- June 30, said Bob Sadler, director in recognition of Bloomfield Town- L. and John A. Boll Gallery in not — including Stroh Brewery Co.; vorite classic cars for over 15 of public and external relations for ship philanthropist Maggie Alle- recognition of their $500,000 gift — Jacob Bottle Co.; M.T. Gardner & Co., years, adding new photos of car the historical society. see’s $250,000 gift to the campaign. with the installation of a perma- which now operates as the Ferry- enthusiasts with their favorite The two-year budget works bet- The gallery will focus on non- nent exhibit, “Built by the River.” Morse Co.; and J.L. Hudson’s. vehicles. ter, given that major work on the manufacturing stories from the The exhibit will focus on how Eligible businesses can for- The digital version will show- museums begins this year but past 100 years that define Detroit’s Detroit grew as a manufacturing ward the company’s original, case the expanded collection of doesn’t end until 2013, he said. culture in sports, entertainment, and recreational center because of subsequent and current names, photos on a monitor as guests en- The society’s “Past>Forward” design and architecture, Bury said. the Detroit River. the year founded, original prod- ter the exhibit. campaign will fund projects at the The society also plans to add Another new exhibit, “The Riv- uct or service and how those High-resolution scans of pho- Detroit Historical Museum, three exhibits on the second floor er’s Roar,” will focus on Detroit’s evolved over time to the muse- tographs can be sent for consid- Dossin museum and its Collec- in space previously used for back- history of racing on the river. um’s director of exhibitions and eration with the full names of all tions Resource Center at Historic of-house operations: The focus of the new and ex- experiences, Tracy Irwin, at tra- people in them, the make, model Fort Wayne, including: “Detroit: The Arsenal of panded exhibits will be on the sto- [email protected] . and year of the vehicle and year Updates to permanent ex- Democracy,” which will tell how ries of achievement, challenge, op- The historical society is also purchased to Irwin by April 30. hibits “Frontiers to Factory,” Detroit’s manufacturing prowess portunity and love, “the stories seeking early photographs of the For more information, call (313) “Streets of Old Detroit” and “Mo- helped the U.S. win World War II that really define Detroit” and that oldest businesses, logos used over 833-1405. tor City” with new content and — and the impact the war had on resonate with people, he said. the years, and small artifacts such — Sherri Welch technology, technology updates to Detroit, helping to bring women It’s both a challenge and a trend the “Glancy Trains” collection, and African-Americans into the for history museums to make the customed to sophisticated technol- high-tech but maintain the authen- and new permanent and tempo- workforce and growing suburbs past new again, said Dewey Blan- ogy and almost demand interactiv- ticity which is at the heart of … a rary exhibits and improvements through loans to veterans. ton, director of strategic communi- ity. That said, it requires some cre- history museum’s appeal and at such as lighting and carpeting. “The Gallery of Innovation,” cations for the Washington, D.C.- ativity and financial resources to the root of its credibility,” he said. Upgrades to carpeting and to focus on historical and contem- based American Association of really make history come alive,” Sherri Welch: (313) 446-1694, lighting at Dossin Great Lakes Mu- porary innovators from Detroit, Museums. he said. [email protected]. Twitter: seum and installation of new per- from Henry Ford to Heinz “Young audiences today are ac- “You have to make it new and @sherriwelch 20120409-NEWS--0037-NAT-CCI-CD_-- 4/6/2012 5:46 PM Page 1

April 9, 2012 CRAIN’S DETROIT BUSINESS Page 37 Casinos: Private investors climb onto bandwagon www.crainsdetroit.com ■ EDITOR-IN-CHIEF Keith E. Crain From Page 1 PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] nity to fill niches in the market clude former Detroit Lions running EXECUTIVE EDITOR Cindy Goodaker, (313) 446- statewide, he said. A total of four back Billy Sims, claims that Citi- TAKING A GAMBLE 0460 or [email protected] Michigan tribes are seeking seven zens for More Michigan Jobs MANAGING EDITOR Jennette Smith, (313) 446- Twenty-two casinos are in planning stages in Michigan along two fronts: off- 1622 or [email protected] off-reservation casinos. copied its ideas on where to open reservation American Indian casinos and petition drives for constitutional DEPUTY MANAGING EDITOR Daniel Duggan, (313) “It’s really galvanized the pri- new casinos and for earmarking a 446-0414 or [email protected] amendments. SENIOR EDITOR Bob Allen, (313) 446-0344 or vate commercial interests,” portion of casino revenue for gov- [email protected] Fletcher said. Private investors ernmental services. Ballot drives Where it stands: The tribe has WEST MICHIGAN EDITOR Matt Gryczan, (616) 916- 8158 or [email protected] may be thinking, “Why not us, “What we’re saying is they stole Citizens for More Michigan Jobs purchased seven acres on the COPY DESK CHIEF Gary Piatek, (313) 446-0357 or racetrack property and partnered [email protected] too?” he said. our concept,” Sims said. The plan: Build eight casinos on Citizens for More Michigan Jobs — Sims said that Johnson was with Florida developer Mike Sawruk, ASSISTANT NEWS EDITOR Jeff Johnston, (313) specific sites: in Detroit, Romulus, who grew up in Sault Ste. Marie. 446-1608 or [email protected] a group whose backers include for- originally an adviser to Michigan Clinton Township, Pontiac, Grand DATA EDITOR Brianna Reilly, (313) 446-0418, mer state House Speaker Rick Is Yours. He maintains that John- Rapids, Birch Run Township, DeWitt What needs to happen: Would [email protected] WEB EDITOR Gary Anglebrandt, (313) 446-1621, Johnson and son took the Township near Lansing and Clam require U.S. Department of the Interior OK. [email protected] Mitch Irwin, a group’s ideas, Lake Township near Cadillac. EDITORIAL SUPPORT Robertta Reiff (313) 446- former state sen- along with some (Details below.) 0419, YahNica Crawford, (313) 446-0329 Getting it on the NEWSROOM (313) 446-0329, FAX (313) 446- ator and member of its investors, Where it stands: Petition drive Bay Mills Indian Community 1687 TIP LINE (313) 446-6766 “ under way to collect 322,609 of the Granholm ballot is one hurdle. when they had a Where: Vanderbilt, Flint Township REPORTERS administration falling out last signatures statewide by July 9 to and Port Huron Daniel Duggan, deputy managing editor: Covers put the measure on the Nov. 6 real estate. (313) 446-0414 or [email protected] — is proposing year. Investors Where it stands: The tribe opened The other hurdle is ballot. Jay Greene, senior reporter: Covers health care, casinos on specif- who are now a casino in November 2010 in insurance and the environment. (313) 446-0325 or What needs to happen: Voter [email protected] ic sites in eight aligned with Citi- Vanderbilt that a federal judge getting people to vote approval Nov. 6 both statewide and ordered closed in March 2011. It Chad Halcom: Covers law, non-automotive statewide locales: zens for More manufacturing, defense contracting and Oakland in communities where casinos are has purchased property in Flint and Macomb counties. (313) 446-6796 or Detroit, Pontiac, in favor of it. Michigan Jobs af- proposed. Township and Port Huron but has [email protected] Romulus, Ma- ” ter originally be- not opened casinos there. Tom Henderson: Covers banking, finance, comb County’s ing part of Michi- technology and biotechnology. (313) 446-0337 or James Hill, Michigan Is Yours What needs to happen: Federal [email protected] Clinton Town- Central Michigan University gan Is Yours Nancy Kaffer: Covers small business, the city of The plan: Build seven casinos: in Judge Paul Maloney of Grand Detroit and Wayne County government. (313) 446- ship, Grand include Andy Detroit, Romulus, Mt. Clemens, Rapids is expected to rule later this 0412 or [email protected] Rapids, DeWitt Township near McLemore Jr., who’s involved year on whether to allow the Bill Shea, enterprise editor: Covers media, Grand Rapids, Lansing, Benton advertising and marketing, the business of sports, Lansing, Birch Run Township in with the proposed Detroit casino, Harbor and Saginaw. Vanderbilt casino to reopen or to and transportation. (313) 446-1626 or southern Saginaw County and and Anthony Gray, a backer of the permanently close it. [email protected] Where it stands: Petition drive Nathan Skid, multimedia editor. Also covers the Clam Lake Township near Cadil- proposed Romulus casino. under way to collect 322,609 food industry and entertainment. (313) 446-1654, lac. Michigan Is Yours leaders said signatures statewide by July 9 to put Hannahville Indian Community [email protected] Sherri Welch: Covers nonprofits, services, retail The group needs to collect they filed complaints regarding the measure on the Nov. 6 ballot. Where: Romulus and hospitality. (313) 446-1694 or 322,609 signatures by July 9 to Johnson with state officials. They What needs to happen: Approval [email protected] Where it stands: The tribe owns a Dustin Walsh: Covers auto suppliers, steel, higher place its proposal on the Nov. 6 bal- also filed a lawsuit last week in Nov. 6 by voters statewide. 9.8 acre parcel in the city and so education and Livingston and Washtenaw lot. For any of the individual casi- federal district court in Detroit in far has unsuccessfully sought counties. (313) 446-6042 or [email protected] nos to go forward, the proposal an unsuccessful attempt to block federal approval to proceed with ADVERTISING Off-reservation Indian casinos casino plans. ADVERTISING DIRECTOR Marla Wise, (313) 446- would need to have a majority of the Board of Canvassers from ap- 6032 or [email protected] Sault Ste. Marie Tribe of Chippewa “yes” votes in that community in proving Citizens for More Michi- What needs to happen: The U.S. SALES INQUIRIES: (313) 446-6052; FAX (313) addition to statewide approval. gan Jobs’ petition language. Indians Department of the Interior must 393-0997 Downtown Lansing. give its OK. SENIOR ACCOUNT EXECUTIVES: Matthew J. They would join the three pri- Palsrok denied Michigan Is Where: Langan, Tamara Rokowski vately owned casinos in Detroit Yours claims that her group stole Where it stands: The Lansing City ADVERTISING SALES Christine Galasso, Lori and the 22 Indian-run operations their plans. Little River Band of Ottawa Indians Tournay Liggett, Dale Smolinski Council has approved the plan, and CLASSIFIED SALES (313)-446-0351 throughout the state. “Their idea is very different tribe members are voting on Where: Fruitport Township near MARKETING DIRECTOR Jeff Kapuscinski Emily Gerkin Palsrok, spokes- from ours,” she said. whether to proceed. Muskegon, former Great Lakes EVENTS DIRECTOR Nicole LaPointe woman for Citizens for More Michigan Is Yours, which Downs racetrack EVENTS COORDINATOR Kacey Anderson What needs to happen: If the tribe SENIOR PRODUCER FOR DIGITAL/ONLINE Michigan Jobs, said the group is mounted an unsuccessful petition votes to proceed, the U.S. Where it stands: The tribe PRODUCTS Pierrette Dagg prepared to spend $50 million on drive in 2010, is now aiming for Department of the Interior must purchased 233 acres including the MARKETING ARTIST Sylvia Kolaski racetrack property in 2008. Gov. SALES SUPPORT Suzanne Janik, YahNica Crawford the ballot campaign to combat this year’s ballot. The Board of also give its OK. AUDIENCE DEVELOPMENT MANAGER what it expects will be fierce oppo- Canvassers approved the language Rick Snyder opposes the casino Candice Yopp plans. sition from existing casino opera- for the latest petition drive last MARKETING COORDINATOR Jenny Griffith Sault Ste. Marie Tribe of Chippewa PRODUCTION MANAGER Wendy Kobylarz tors. fall. The group is proposing casi- What needs to happen: The Indians Snyder administration and the U.S. PRODUCTION SUPERVISOR Larry Williams She said the group is hopeful nos in Grand Rapids, Lansing, De- Where: Pinnacle Race Course, Department of the Interior must CUSTOMER SERVICE that its message of creating jobs troit, Romulus, Benton Harbor, Romulus each give their OK. MAIN NUMBER: Call (877) 824-9374 or write and generating revenues for the Saginaw and Mt. Clemens, al- [email protected] SUBSCRIPTIONS $59 one year, $98 two years. state and local governments will though it is not identifying partic- Out of state, $79 one year, $138 for two years. resonate with voters. ular parcels on which the casinos Outside U.S.A., add $48 per year to out-of-state rate for surface mail. Call (313) 446-0450 or The argument was dismissed would be located. (877) 824-9374. by a spokesman for the group’s Sims said Michigan Is Yours is SINGLE COPIES: (877) 824-9374 PROPOSED LOCATIONS REPRINTS: (800) 290-5460, ext. 125; main opponent, Protect MI Vote, proceeding with its petition drive (717) 505-9701, ext. 125; or lindsay.wilson a coalition consisting of the MGM and signature-collection initia- Citizens for More Michigan Jobs — led by former state House Speaker Rick @theygsgroup.com Grand Detroit, Greektown Casino- tives — including a possible di- Johnson and Mitch Irwin, a former state senator and member of the TO FIND A DATE A STORY WAS PUBLISHED: Granholm administration — is proposing casinos on eight specific sites (313) 446-0367 or e-mail [email protected] Hotel in Detroit, the Saginaw rect-mail campaign — are in the statewide. Each of the proposed locations has separate investors. The CRAIN’S DETROIT BUSINESS IS PUBLISHED BY Chippewa Indian Tribe (owner of works. group needs to collect 322,609 signatures by July 9 to place its proposal CRAIN COMMUNICATIONS INC. Soaring Eagle Casino & Resort near Fred Woodhams, a spokesman on the Nov. 6 ballot. The proposed locations: CHAIRMAN Keith E. Crain Mt. Pleasant) and the Nottawaseppi for the Michigan secretary of state, PRESIDENT Rance Crain Eldorado Golf Course, Clam Lake Swanson, boxing promoter Emanuel SECRETARY Merrilee Crain Huron Band of Potawatomi Indians said it’s unclear whether both bal- Township, near Cadillac. Lead Steward and Four Tops singer Duke TREASURER Mary Kay Crain (owner of FireKeepers Casino near lot initiatives would go into effect Executive Vice President/Operations investor: Bob Meyer, golf course Fakir. McLemore works in William A. Morrow Battle Creek). if they gain voters’ approval. Un- owner. development and construction as Group Vice President/Technology, “We will want to see if this new der state law, when two ballot pro- Manufacturing, Circulation Birch Run Expo Center, Birch Run executive vice president of Detroit- Robert C. Adams group really has the money they posals that contradict each other Township, north of Flint. Investors: based A-Mac Property LLC and A- Vice President/Production & Manufacturing claim to have raised to fund this are approved, the one with more To be determined. Mac Construction Services. He is a Dave Kamis former member of the Republican Chief Information Officer campaign,” James Nye, Protect MI votes wins out. Land at 221 Logan St. SW, near Paul Dalpiaz Vote spokesman. “I’m hesitant to say if these Grandville Avenue and Wealthy National Committee and also is on Chief Human Resources Officer He called the petition drive would contradict each other,” Street in Grand Rapids. Investors: the board of directors of the Margee Kaczmarek Michigan Black Chamber of Director of Audience Development Operations “reckless.” Woodhams said. To be determined. Michelle Roth Commerce. “Economically, this makes no But Hill said he’s skeptical Land at M-59 and I-94 in Clinton G.D. Crain Jr. Founder (1885-1973) Land at Vining and Wick roads Mrs. G.D. Crain Jr. Chairman (1911-1996) sense whatsoever. We’re in a ma- about either proposal’s prospects. Township, Macomb County. Lead near Detroit Metropolitan Airport, EDITORIAL & BUSINESS OFFICES: ture gaming market here in Michi- “Getting it on the ballot is one investor: Brien Baker, who has a St. 1155 Gratiot Ave., Detroit MI 48207-2732; (313) Romulus. Lead investor: Anthony 446-6000 gan,” Nye said, citing the state’s hurdle,” he said. “The other hur- Clair Shores address and is listed Cable address: TWX 248-221-5122 AUTNEW DET on LinkedIn as co-founder of Pointe Gray, owner of DRM Maintenance population decline and struggling dle is getting people to vote in fa- and Management in Dundee. CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 Capital Partners LLC. is published weekly, except for a special issue the economy. “The pie is not going to vor of it. I’m not sure the votes are Former Lansing Factory Outlet third week of August, and no issue the third week grow any larger. We are beyond there.” One of two possible Detroit sites: of December by Crain Communications Inc. at The Pontchartrain Hotel across from Mall, on Clark Road near Old U.S. 1155 Gratiot Ave., Detroit MI 48207-2732. the point where you can open up a Hill said he conducted a survey Cobo Center or property in the 2200 27 and I-69 in DeWitt Township Periodicals postage paid at Detroit, MI and casino and see economic growth of rural Michigan residents last additional mailing offices. POSTMASTER: Send block of East Jefferson Avenue north of Lansing. Lead investor: address changes to CRAIN’S DETROIT BUSINESS, and job growth.” summer to determine their views where Jefferson Chevrolet is Property owner Sam Eyde, owner of Circulation Department, P.O. Box 07925, Detroit, East Lansing-based Sam Eyde MI 48207-9732. GST # 136760444. Printed in Citizens for More Michigan on a number of issues, including located. Lead investor: Andrew U.S.A. Jobs has also rankled leaders of casinos. He said respondents were McLemore Jr., president and CEO of Management Co. Entire contents copyright 2012 by Crain Pontiac Silverdome, Pontiac. Communications Inc. All rights reserved. Michigan Is Yours, an older group overwhelmingly opposed to the ex- the Detroit Casino Partnership. Reproduction or use of editorial content in any that is conducting a similar peti- pansion of non-native casinos. Other investors in the Detroit casino Lead investor: Silverdome owner manner without permission is strictly prohibited. tion drive. “I’m looking at the numbers, are Detroit funeral director O’Neil Andreas Apostolopoulos. The group, whose members in- and they’re not there,” Hill said. 20120409-NEWS--0038-NAT-CCI-CD_-- 4/6/2012 4:50 PM Page 1

Page 38 CRAIN’S DETROIT BUSINESS April 9, 2012 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF MARCH 31-APRIL 6

tronic campaign filing sys- tive labor agreement with largest insurer allegedly tem. Toyota plans the UAW that covers 1,100 has with 22 Michigan hos- production and mainte- pitals. Hood said the exis- D.C.’s tough Olbermann critical of nance workers represented tence of the “most favored to hire 150 by by Local 600. Details were nation-plus” agreement Granholm in TV lawsuit unavailable. was not proof that the Ⅲ Detroit-based agreements with hospitals Jobless TV pundit Keith end of the year Lakeshore TolTest Corp. was harmed competition or that talker is the Olbermann took shots at for- the winner among 11 bid- the Blues were unjustly en- mer Michigan Gov. Jennifer oyota Motor Corp. ders to build the new com- riched at Pontiac’s ex- Granholm’s “The War Room” plans to hire 150 engi- mand center for the Afghan pense. political talk show on Cur- T neers, researchers National Police in Kabul, un- Ⅲ Livingston and Washt- rent TV in a lawsuit filed last Engler of old and others in Southeast der a $54.3 million contract enaw counties ranked No. 4 week against the cable net- Michigan by year’s end to awarded through the U.S. and 5, respectively, in a work after it fired him. ormer three-term membership includes top help localize more vehicle Army Corps of Engineers. Michigan Department of Com- In the complaint, Olber- Michigan Gov. John executives from the Detroit design and development in munity Health report on the F Engler is getting no- 3, AT&T Inc., Bank of America, mann accuses Current North America, Automotive health of the residents of (among many things) of us- tice for his effort to reshape BorgWarner Inc., Citigroup News reported. OTHER NEWS the state’s 83 counties. ing his likeness without his the conservative Business Inc., Coca-Cola Co., General Toyota Technical Center Ⅲ The Detroit City Council Counties are ranked by Roundtable into a more in- Electric Co., Goldman Sachs required permission as part will hire a majority of the voted for a resolution to im- mortality and morbidity, fluential lobbying outfit — Group, IBM, Kelly Services of an advertisement for new employees at its facili- mediately raise the corpo- health behaviors, clinical by being Inc., Microsoft Corp. and Proc- Granholm’s show, which he ties in Ann Arbor and rate income tax rate for care, social and economic classic John ter & Gamble Co. termed “low quality.” Saline. Toyota also said it businesses based in the city factors and physical envi- Engler. The story can be found at The lawsuit, filed in Los plans to add another 100 to 2 percent from 1 percent. ronment. How other area Politico, politico.com. Angeles County, doesn’t jobs to the Michigan techni- The increase will affect counties ranked: Oakland, the Beltway make it clear if Olbermann cal centers over the next only C-corporations and 16; Monroe, 38; Macomb, 41; media out- meant the technical quality five years to advance en- will not apply to partner- St. Clair, 49; and Wayne, 81. let, last State campaign finance of Granholm’s hourlong gine and transmission de- ships, professional and lim- Leelanau County ranked week pro- weeknight show is low, or velopment. records go mobile No.1 in the state. filed En- the content of the program ited-liability corporations. Want state political dona- doesn’t meet his standards. Ⅲ A hotel investor from Ⅲ The Justice Department Engler gler’s stew- ardship of tion information while Or both. ON THE MOVE Mexico, Gabriel Ruiz, has says Highland Park School you’re on the go? There’s an Olbermann also alleges purchased the former Board member Robert Davis the pro-business public poli- Ⅲ A123 Systems Inc. has app for that. that Current was bound to Pontchartrain Hotel in De- has been indicted on accu- cy trade group — made up hired two executives to im- The Michigan Secretary of consult him before hiring troit and plans to continue sations he stole $125,000 of CEOs of major U.S. corpo- prove quality and reduce State has launched free the host of any show that operating the building as a from the financially strug- rations — as it more aggres- costs: Ray Alcodray is the new “Michigan Campaign Fi- followed his 8 p.m. “Count- hotel. No timeline is in gling district, AP reported. sively tackles issues such as chief information officer; nance Search” iPhone and down,” and the suit says place for opening the hotel, The union activist who has health care reform, immi- Don Kaiser is global vice iPad apps. They allow users that the network didn’t do and few details are avail- filed multiple Open Meet- gration, and tax and pen- president of quality. Alco- to search for state-level po- so on Granholm’s hiring. able about the buyer. ings Act challenges against sion reform. dray had been global infor- litical contribution records Ⅲ government authorities “John Engler is a politi- mation technology director An e-commerce part- by candidate names and says he’s not guilty and cian’s politician: think poli- of manufacturing, quality nership between the Michi- committees as well as by BITS & PIECES that the case is politically cy, folksy banter and a and light-vehicle systems gan Economic Development election period, party affili- sharp elbow mixed in now The season finale of Open for Toledo-based Dana Corp. Corp. and Akron, Ohio- motivated. ation, committee type and Ⅲ and then,” Politico wrote. City, the monthly business Kaiser had been CEO of Lean based Export Now, an export Plans are moving for- That description should the office being sought. meeting that features Alliance Inc.’s North Ameri- services business, has been ward for a Detroit statue of sound familiar to Engler’s The app displays direct speakers or panels dis- can operations in Troy. created to help consumer the fictional crime-fighting foes and allies in Lansing. and in-kind contributions cussing Both will work out of A123’s goods companies in the cyborg RoboCop. The Detroit Politico described En- received, expenditures, and some aspect Livonia battery plant. state sell products in China News reported that a Robo- gler’s strategy of bringing debt owed, the office said in of starting Ⅲ Kirk Albert has been simply and cheaply. Com- Cop model is being scanned solutions to meetings with a statement. Records for or main- named president of panies that participate in at a studio in Canada for politicians while building more than 11,000 active and taining a KeyBank’s Michigan mar- the Pure Michigan Export Now artists to create foam molds coalitions, lobbying and, if non-active political commit- business, is ket, succeeding Tim pilot program will have that will be shipped to De- required, litigating. tees and millions of transac- set for 6 Gretkierewicz, who was their products listed under troit’s Venus Bronze Works, “The roundtable’s aggres- tions are available. p.m. April named district executive the Pure Michigan heading where the parts of the statue sive stance is a reminder The apps are available 16 at Cliff for business banking in on a Chinese-language will be cast. The location that even in an era of grid- from the Apple App Store. Bell’s in De- business-to-consumer web- and a completion date are Anglebrandt Cleveland. Albert joined lock on Capitol Hill, compa- An Android version is un- troit. Atten- Key in 1992 and has held a site. Informational forums uncertain. nies are acutely interested der development. dees will pitch their busi- variety of executive posi- on the program are planned Ⅲ Roy Roberts, emer- in Washington’s plans for The apps, which require ness ideas for 60 seconds tions. throughout the state, in- gency manager for Detroit the issues they care about Apple’s updated iOS5 mo- and panelists will each give cluding 2-4 p.m. April 16 at Public Schools, said his most — and they want to be bile operating system, were 30 seconds of feedback. the Detroit Regional plans for next school year out in front of major developed by Olathe, Kan.- Crain’s Detroit Business COMPANY NEWS Chamber. include turning 10 high based NIC Technologies LLC, Web Editor Gary Anglebrandt changes,” the media outlet Ⅲ The San Francisco- Ⅲ The University of Michi- schools into self-governing which also runs the Michi- will moderate. Details are wrote. based social media compa- gan has raised its football schools, where more key gan Bureau of Elections’ elec- at opencitydetroit.com. A sampling of roundtable ny Twitter Inc. is moving ticket prices for 2012. A sea- decisions are made at the several employees into the son ticket for the Wolver- school level instead of by Madison Building near ines’ home schedule is $390, the district. A governing Grand Circus Park to work for an average of $65 per council for each school with Detroit-based compa- game, up from $60. Individ- will be made up of civic, nies. ual game tickets are $75, up community, business, gov- Ⅲ Spirit Airlines Inc. said from $70, except for the Oct. ernment and local leaders, BEST FROM THE BLOGS along with parents. Other it’s adding a daily nonstop 20 game against rival Michi- READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS flight between Detroit Metro- gan State University. That changes include reorganiz- politan Airport and Dallas/Fort ticket is $95. ing the district’s adminis- Check out Opening Day video Word is Gilbert is buying again Worth International Airport, be- Ⅲ The Southeast Michigan tration and generating ginning June 21. Purchasing Managers Index revenue from school ser- We sent our video Word around town is Ⅲ Japan-based automo- rose to 66.1 in March, the vices. Mike Flanagan, state intern,“ Andrew that“ Dan Gilbert's next tive supplier G.S. Electech highest reading since last superintendent of public Templeton, out to building purchase will be Inc. has agreed to plead May. An index above 50 in- instruction, told The De- capture the essence of a downtown apartment guilty for its involvement dicates economic expan- troit News that he backs Opening Day in Detroit. building. He is in in the global wire-harness the plan. Take a look at what he sion. The three-month aver- negotiation to purchase price-fixing scandal and brought back. the Claridge House age is 65.7. pay a $2.75 million fine. No Ⅲ Apartments at 1514 U.S. District Court Judge OBITUARIES ” Washington Blvd., executives from the suppli- Denise Page Hood has tossed according to two er have been charged at out Pontiac’s civil lawsuit Ⅲ Robert Vogelei, a for- sources. this time. against Blue Cross Blue mer chief designer for Reporter Nathan Skid’s Detroit-area restaurant blog Reporter Dan Duggan’s blog on commercial real estate Ⅲ Dearborn-based Sever- Shield of Michigan over fa- Chevrolet and design direc- can be found at www.crainsdetroit.com/skid can be found at www.crainsdetroit.com/duggan” stal Dearborn LLC has vorable charging agree- tor for General Motors, died reached a five-year tenta- ments that the state’s March 29. He was 85. DBpageAD.qxp 4/5/2012 3:42 PM Page 1

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